Uttarakhand State Economic Survey 2016-17

Home , Economy of Uttarakhand, Pantnagar

Submitted to Planning Commission, Government of Uttarakhand

by Economics Area, Indian Institute of Management Kashipur

Prepared by

Atulan Guha, (Team Coordinator), Indian Institute of Management Kashipur

Abhradeep Maiti, Indian Institute of Management Kashipur Vaibhav Bhamoriya, Indian Institute of Management Kashipur

Subir Sen, Indian Institute of Technology, Roorkee

CHAPTERS INDEX Page Number CHAPTER 1 GENERAL REVIEW 13-23

CHAPTER 2 STATE OUTPUT AND ITS STRUCTURE 24-31

CHAPTER 3 STATE OF PUBLIC FINANCE 32-40

CHAPTER 4 THE FINANCIAL INCLUSION 41-50

CHAPTER 5 AGRICULTURE AND HORTICULTURE AND FOOD SECURITY 51-70

CHAPTER 6 ANIMAL HUSBANDRY, FISHERIES AND FORESTRY 71-99

CHAPTER 7 WATER RESOURCES MANAGEMENT 100-116

CHAPTER 8 INDUSTRIES, MINING AND ENERGY 117-135

CHAPTER 9 TRANSPORT AND CIVIL AVIATION 136-142

CHAPTER 10 TOURISM AND OTHER SERVICES SECTOR 143-166

CHAPTER 11 EMPLOYMENT, WAGES AND PRICES 167-172

CHAPTER 12 HUMAN DEVELOPMENT AND INEQUALITY 173-190

CHAPTER 13 POPULATION AND MIGRATION 191-210

CHAPTER 14 DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY 211-232

LIST OF THE TABLES Page Number Table 2.1 Gross State Domestic Product of Uttarakhand (at 2011-12 prices) 26

Table2.2 Sectoral Contribution to Gross Value Addition of Uttarakhand (in per 26 cent) Table 2.3 Sectoral Composition in Agriculture, forestry & fishing (in per cent) 27

Table 2.4 Sectoral Composition in Industry (in per cent) 28

Table 2.5 Sectoral Composition in Services (in per cent) 28

Table 2.6 Contribution of Different Districts in Gross State Domestic Product 29 Table 2.7 Average Annual GSDP Growth Rate of Different Districts 30

Table 2.8 Contribution of Different Districts in GSDP of Primary, Secondary and 30 Tertiary Sector Table 3.1 Share of Different Component of Receipt in GSDP 33

Table 3.2 Contribution of Important Components in State’s Own Tax Revenue 34 (in per cent)

Table 3.3 Contribution of Important Components in State’s Own Non-Tax 34 Revenue Table 3.4 Buoyancy Estimates 34

Table 3.5 Share of Different Component of Expenditure in GSDP 35

Table 3.6 Sectoral Share in Revenue Expenditure (in per cent) 35

Table 3.7 Sectoral Share in Capital Expenditure (in per cent) 36

Table 3.8 Key Fiscal Ratios (in %) 37

Table 3.9 Adherence to FRBM and Fiscal Health 38

Table 3.10 Trends in Public Debt 39

Table 3.11 Resources transferred by the State Government to Local Bodies 40

Table 4.1 Distribution of Bank Branches in Uttarakhand 41

Table 4.2 State of Various Avenues to Provide Banking Service in Uttarakhand 42

Table 4.3 Sectoral composition of Loan Disbursement between 1st April, 2016 43 to 30th Sept, 2016 Table 4.4 State of Accessing Banking Services by Households in Uttarakhand 44

Table 4.5 Share of Economically Deprived Sections in Credit Disbursement by 45 Banks in Uttarakhand Table 4.6 Loan Disbursed under various scheme to finance Micro, Small and 46 Medium Enterprises (Rs. Lakhs) Table 4.7 District-wise distribution of surveyed SHGs by the amount of loan 47 received Table 4.8 Number of Accounts, Deposits and RuPay Card Issued under Pradhan 48 Mantri Jan Dhan Yojana (PMJDY) in Uttarakhand (As on 12.10.2016) Table 4.9 CRISIL’s Assessment of Financial inclusion in Uttarakhand 48

Table 4.10 Proportion of Poor and Non-Poor (in per cent) who borrowed from 50 Different Sources in Uttarakhand Table 4.11 CRISIL Inclusix Scores for Different Districts in Uttarakhand 50

Table 5.1 Classification of Total Geographical Area 53

Table 5.2 Distribution of Land Holdings 53

Table 5.3 District level land distribution as per Agriculture Census 2010-11 54

Table 5.4 District-wise, Season-wise monthly Rainfall and Departure in the Year 55 2015

Table 5.5 Area and Production of major crops in Uttarakhand 56

Table 5.6 Season-wise & Region-wise Area and Production under Foodgrains 57

Table 5.7 Area and Production under Horticulture in Uttarakhand 58

Table 5.8 District level Gross and net cultivated area, Gross and net irrigated 59 area and its % in 2013-14

Table 5.9 Seed distribution in Uttarakhand 61

Table 5.10 Farm Mechanisation 63

Table 6.1 Species-wise Livestock population (as on 2012) 73

Table 6.2 District-wise distribution of Livestock & Poultry in Uttarakhand (as on 75 2012) Table6.3 Division-wise Production from Livestock in Uttarakhand 75

Table 6.4 State share in Total (All India) Production 76

Table 6.5 Average Livestock and Poultry Production 77

Table 6.6 Facilities for Veterinary and Other Services 77

Table 6.7(a) Institutions for Development of Animal Husbandry 78

Table 6.7(b) Schemes proposed for 2017-18 84

Table 6.8 Land Use Pattern in Uttarakhand 85

Table 6.9 Area under Different types of Forest in Uttarakhand (Area in sq.km.) 86

Table 6.10 District – wise forest cover in Uttarakhand 87

Table 6.11 Plantation done by forest department, Uttarakhand 88

Table 7.1 Different structures and their feasible numbers (water harvesting) 101

Table 7. 2 Status of Ground Water Development in Uttarakhand (As on 102 31.03.2009) Table 7.3 Availability of Groundwater across Uttarakhand as on 31-03-2011 102

Table 7. 4 Ground Water Resources Availability, Utilization and Stage of 103 Development in Uttarakhand Table 7.5 Inland Water Resources in Uttarakhand (2013-2014) (2004- 104 2005)(2002-2003) (In Lakh Hect.) Table 7.6 Annual Ground Water Withdrawal for Irrigation/Domestic and 105 Industrial Uses in Uttarakhand - 2009 (In BCM)

Table 7.7 Net Irrigated Area by source in Uttarakhand 105

Table 7.8 Allocation and Expenditure for Irrigation Sector in Uttarakhand (2007- 106 2008 to 2011-2012) (Rs. in Crore) Table 7.9 Central Assistance Released for Major/Medium Irrigation Projects and 107 Extension, Renovation and Modernisation (ERM) Projects under Accelerated Irrigation Benefit Programme (AIBP) in Uttarakhand (2004-2005 to 2012-2013) (Rs. In Crore) Table 7.10 Monthly wise Daily average Wage earners in Nainital 107 District(Haldweani Centre)of Uttarakhand Table 7.11 District-wise Estimated Requirement of Water for Domestic Purposes 108 in Uttarakhand Table 7.12 District-wise Estimated Requirement of Water for Domestic Purposes 108 in Uttarakhand

Table 7.13 Annual Fluctuation and Frequency Distribution of Ground Water Level 109 in Uttarakhand Table 7.14 Rate of Decline of Ground Water for Pre-Monsoon Period (April/May) 110

Table 7.15 Ground Water Quality in Shallow Aquifers under Central Ground 110 Water Board (CGWB) in Uttarakhand -2010 Table 7.16 Water based Drinking Water Resources in Uttarakhand (As on 111 01.04.2009) Table 7. 17 Table Status of Blocks/Mandals/Talukas in Uttarakhand (As on March 111 2009) Table 7.18 Water Storage Capacity in Uttarakhand (As on 14.05.2012) 112

Table 7.19 Water Storage Capacity of Reservoirs in Uttarakhand (As on 112 20.08.2009 to 23.08.2012) (Storage in BCM) Table 7.20 Water Level in Various Reservoirs in Uttarakhand (2009 to 2012-Upto 112 30.09.2012) Table 7.21 Number of Public Owned Water Bodies in Uttarakhand (2005*) 113

Table 7.22 Central Assistance Released under Command Area Development and 113 Water Management and Programme in Uttarakhand (2006-2007 to 2009-2010-Upto November, 2009) (Rs. in Lakh Table 7.23 Share of Expenses on Direction and Administration to Working 114 Expenses for Major, Medium and Minor Irrigation Projects and Command Area Development Programme in Uttarakhand (2000-2001 to 2006-2007) (Rs. in Lakh)

Table 7.24 Number of Works Taken-up for Water Conservation and Harvesting, 114 Renovation of Traditional Water Bodies in Uttarakhand (2009-2010 and 2010-2011-upto October, 2010) Table 8.1 Category-wise division of regions in Uttarakhand for MSME Policy- 121 2015 Table 8.2 Estimate of some important characteristics in the organized 121 manufacturing sector for Uttarakhand Table 8.3 Category wise distribution of industries in Uttarakhand 124

Table 8.4(a) Estimate of some important characteristics from Annual Survey of 125 Industries in Uttarakhand (By Two-Digit of NIC 2008) Table 8.4(b) Estimate of some important characteristics from Annual Survey of 126 Industries in Uttarakhand (By Two-Digit of NIC 2008) Table 8.4(c) Estimate of some important characteristics from Annual Survey of 127 Industries in Uttarakhand (By Two-Digit of NIC 2008) Table 8.5 Mineral Production and Value (Excluding Atomic Minerals) in 129 Uttarakhand Table 8.6 Electrical energy capacity, production ,and percentage loss 130

Table 8.7 Length of electrical cable in Uttarakhand 131

Table 8.8 Usage of Electrical Energy in Uttarakhand 131

Table 8.9 Villages with electricity in Uttarakhand 131

Table 8.10 Consumer Category-wise Average Power Tariff in Uttarakhand 132

Table 8.11 State domestic product from manufacturing 133

Table 8.12 Growth rate of gross state domestic product industry; 2011-12 to 133 2015 - 16 Table 8.13 Percentage distribution of gross state domestic product industry; 133 2011-12 to 2015 - 16 Table 8.14 State domestic product from electricity, gas water supply & other 134 utility services Table 8.15 Growth rate of gross state domestic product industry; 2011-12 to 134 2015 - 16

Table 8.16 Percentage distribution of gross state domestic product industry; 134 2011-12 to 2015 - 16

Table 9.1 Length of road and train tracks in Uttarakhand 136

Table 9.2 Composition of automobiles on the roads in Uttarakhand 137

Table 9.3 Financial Health of Major Airports in Uttarakhand 138

Table 9.4 Uttarakhand Emergency Assistance Project Proposed Helidromes/ 138 Heliports/ Helipads Details Table 9..5 Financing of Uttarakhand Emergency Assistance Project 140

Table 9.6 Financial Statement of Uttarakhand State Transport Department for 141 Various Projects Table 10.1 Gross State Value Added (GSVA) at Factor Cost by Industry of Origin 144 in Uttarakhand {(At Current Prices based on 2011-2012 Series) (2011- 2012 to 2015-2016)}(Rs. in Lakh) Table 10.2 Gross State Domestic Product (GSDP) at Factor Cost by Industry of 146 Origin in Uttarakhand {(At Constant 2004-05 Prices) (2004-2005 to 2014-2015)}(Rs. in Lakh) Table 10.3 Revenue Collection from Service Tax in Uttarakhand (2011-2012 to 147 2013-2014)(Rs. in Million) Table 10.4 Actual Plan Expenditure for Public Sector by Heads of Development in 147 Uttarakhand (2012-2013)(Rs. in Lakh) Table 10.5 Number of Unprotected Monuments/Sites in Uttarakhand(2007- 148 2012) Table 10.6 Number of Foreign Tourist Visits (FTVs) in Uttarakhand(2010 to 2015) 148

Table 10.7 Number of Foreign Tourist Arrived in National Parks of Uttaranchal 149 (1992-1993 to 2003-2004) Table 10.8 Place-wise Number of Foreign Tourists Arrivals in Uttarakhand(2008 150 to 2010) Table 10.9 Number of Domestic Tourist Visits in Uttarakhand(2005 to 2015) 151 (lakhs) Table 10.10 Place-wise Number of Domestic Tourists Arrivals in Uttarakhand(2008 151 to 2010) Table 10.11 Number of Overnight Trips and Same Day Trips for Rural+Urban Areas 152 in Uttarakhand (July 2008 - June 2009) Table 10.12 Average Number of Places Visited Per Overnight Trip by Main 153 Destination for Rural and Urban Areas in Uttarakhand(July 2008 - June 2009)

Table 10.13 Number of Households Reporting Overnight/Same Day Visitors and 153 Total Number of Overnight/Same Day Visitors in Rural+Urban Areas in Uttarakhand (July 2008 - June 2009) Table 10. 14 Number of Pilgrims who Performed Haj Arrived by HCOI in 154 Uttarakhand (2012 to 2014) Table 10.15 Amount Sanctioned and 154 Released for Tourism Projects in Uttarakhand (2008-2009, 2011- 2012 to 2013-2014) (Rs. in Lakh) Table 10. 16 Revenue Receipts through Arrivals of Tourists in National Parks of 154 Uttarakhand. (1992-1993 to 2003-2004) Table 10.17 Selected District-wise Aggregate Deposits and Credit of State and 157 District Central Co-operative Banks in Uttarakhand (March, 2004 to 2006)(Amount in Rs. Lakh) Table Distribution of Urban Co-operative Banks (UCBs) in Uttarakhand 158 10.18(a) (March, 2012) Table 10.18 Status of UCBs in the state of Uttarakhand as on 2011 158 (b) Table Source-wise Deposits of State Cooperative Banks in Uttarakhand 159 10.19(a) (2014-2015)(Rs. in Lakh) Table 10.19 Type-wise Deposits of State Cooperative Banks in Uttarakhand (2014- 159 (b) 2015)(Rs. in Lakh) Table 10.20 Table 10.20 Airport-wise Revenue Earned by AAI in Uttarakhand 161 (2009-2010 and 2010-2011)(Rs. in Lakh) Table 10.21 Total and Surfaced Length of Roads in Uttarakhand (As on 31st 161 March, 2009 to 2012)(In Km) Table 10.22 Railway Route Length in Uttarakhand(As on 31.03.2015) 162

Table 10.23 Status of Common Service Centre (CSC) Roll Out in Uttarakhand (As 164 on 31.03.2016) Table 10. 24 Performance of National Optical Fibre Network (NOFN) Project in 164 Uttarakhand (As on 15.02.2015) Table 10.25 Number of Internet (Narrowband + Broadband) and Broadband 164 Subscribers in Uttarakhand (As on March, 2014) Table 10.26 Number of Internet Subscribers in Uttarakhand (2002 and 2003) 165

Table 10.27 State-wise Number of Internet Subscribers in Northern India (2000-3 165 and 2006-09) Table 10. 28 Net GSM Connections Target in Uttarakhand(2010-2011) 166

Table 10.29 Number of Villages Uncovered with Mobile Services in Uttarakhand 166 (As on March, 2011) Table 11.1 Population Census of Uttarakhand, 2011 167

Table 11.2 District wise Distribution of Working Population across main 168 Occupations in Uttarakhand in 2011 (in per cent)

Table 11.3 Share of Different main Occupation in total employment across all 169 Districts of Uttarakhand in 2011 Table 11.4 District wise Unemployment Rate in Uttarakhand, 2011-12 169

Table 11.5 Nature of Employment in Uttarakhand for Different Communities 170

Table 11.6 Month-wise Average Daily Agricultural Wages of Skilled Labour (Male) 170 in Uttarakhand (July 2014 to June 2015) Table 12.1 Literacy Rate in the Districts in Uttarakhand in 2011 for Population 176 Aged 7 years or Older (per 100 individuals) Table 12.2 Literacy rate (per 100 individuals) in Uttarakhand over the years 177

Table 12.3 Literacy Rate in India and Uttarakhand in 2011 for Population Aged 7 178 years or Older (per 100 individuals) Table 12.4 Government Recognized Educational Institutions in Uttarakhand 178

Table 12.5 Government Recognized Educational Institutions in Uttarakhand 179

Table 12.6 Government Expenditure on Education in Uttarakhand (in Rs. Crores) 180

Table 12.7 The number of technical educational institutions, and industrial 181 training institutes in Uttarakhand Table 12.8 State-wise Mean Achievement Score of students in English 181

Table 12.9 State-wise Mean Achievement Score of students in Mathematics 182

Table 12.10 Comparison in terms of Key Characteristics between Uttarakhand and 183 India Table 12.11 Gini Coefficient of Distribution of Consumption : 1973-74 to 2009-10 189

Table 13.1 Population in Uttarakhand 191

Table 13.2 Decadal variation in population in Uttarakhand SINCE 1991 194

Table 13.3 District wise Population Distribution in Uttarakhand in 2011 196

Table 13.4 District wise Gender Distribution of young children in Uttarakhand in 197 2011 Table 13.5 District wise Distribution of Scheduled Castes and Scheduled Tribes 198 Population in Uttarakhand in 2011 Table13.6 District wise Literacy Situation in Uttarakhand 199

Table 13.7 District wise Working Population in Uttarakhand in 2011 201 Table 13.8 District wise Distribution of Working Population across Occupations in 201 Uttarakhand in2011 Table 13.9 Distribution of Working Population in Uttarakhand by Occupation in 202 2011 Table 13.10 Distribution of Population in Uttarakhand by Religion in 2011 203

Table 13.11 Gender Ration in the Districts in Uttarakhand in 2011 204 Table 13.12 Distribution of Villages and Towns in Uttarakhand 204 Table 13.13 Number of Towns and Villages in Uttarakhand by Population Groups 205 Table 13.14 Distribution of Populated Villages and Village Settlements in 205 Uttarakhand Table 13.15 Distribution of Population by Main Language Spoken in Uttarakhand 206 Table 13.16 Towns in Uttarakhand with more than 100,000 people in 2011 206 Table 13.17 Distribution of Household with Available Amenities in Uttarakhand in 207 2011 Table 13.18 Number of Houses in Uttarakhand in 2011 208 Table 13.19 Disabled Population in Uttarakhand by type of Disability and Sex in 208 2011 Table 13.20 Distribution of Educational Qualification in Uttarakhand in 2011 209

Table 13.21 Age Group wise Distribution of Marital Status in Uttarakhand in 2011 210

Table 14.1 SIIDCUL established Integrated Industrial Estates (IIE): 212 Table 14.2 Benefits of Start-Up policy shall be given to the entrepreneurs 215 Table 14.3 Comparison of Dense Forest in 2001 and 2015 219 Table 14.4 Damages due to in Uttarakhand during 2007 to 2015 223 Table 14.5 Occurrences of Earthquakes in the State 2010-2015 224

LIST OF THE GRAPHS AND FIGURES Page Number Graph 2.1 Gross state domestic product of Uttarakhand 24

Graph .2.2 GSDP Growth Rate of Uttarakhand 25 at 2011-12 prices Graph.2.3 Per capita GSDP Growth Rate of Uttarakhand 26

Graph.3.1 Changing Size of the Government in Uttarakhand 32

Graph 5.1 GSDP from Agriculture and Allied Sector at Constant (2004-05) 51 Prices Graph.5.2 Share of Agriculture in GSDP 52

Graph.5.3 Month-wise Normal and Actual Rainfall of the State in 2015 55

Graph.5.4 Irrigated Area in Uttarakhand 60

Graph.5.5 Fertiliser distribution in Uttarakhand 2001-02 to 2014-15 61

Graph.5.6 Power Consumption in Uttarakhand 62

Graph.5.7 Trends in District wise consumption of electricity for 63 Agricultural purposes Graph. 6.1 Trends in production of milk, egg 76

Graph.8.1 Number of Factories in Organized Manufacturing in 123 Uttarakhand

Graph. 8.2 Number of Workers in Organized Manufacturing in 123 Uttarakhand

Graph.10.1 Proportion of Services in GSDP of Uttarakhand 143

Graph.10.2 Estimated % of population with bank accounts in Urban and 160 Rural areas for various districts Graph.11.1(a) Inflation Rate Experienced by Consumers in Uttarakhand, Base 171 Year-2012

Graph.11.1(b) Inflation Rate faced by the Rural Consumer, Base Year-2012 172

Graph 11.2 Inflation Rate faced by the Urban Consumer, Base Year-2012 172

Graph.12.1 Literacy Rate in the Districts in Uttarakhand in 2011 176

Graph.12.2 Literacy rate (per 100 individuals) in Uttarakhand over the 177 years

Graph 12.3 Total Students Enrolled in Various Government Recognized 179 Institutes in Uttarakhand Graph 12.4 Ratio (Number of females per 1000 males) 185

Graph. 12.5 Current use of family planning methods 185

Graph.12.6 Institutional Deliveries 186

F Graph.12.7 Mean age at marriage for girls 186

Graph.12.8 Mean age at marriage for girls 187

Graph 12.9 Net Enrolment Ratio 187

Graph.12.10 Pupil-Teacher Ratio 188

Graph.12.11 New Government Schools since 2003 188

Graph.12.12 Households with mobile phone 189

Figure.14.1 Area diverted for Hydel Projects, Roads and Transmission Lines 220

Figure.14.2 Earthquake and Landslide Zone 222

General Review

1.1 Uttarakhand as a state was formed on 9th November, 2002. It has traditionally been divided into two parts, the western half known as Garhwal Mandal and the eastern region is named as Kumaon Mandal. The state comprises of 13 districts. Out of them, nine are in hills, namely, Almora, Bageshwar, Chamoli, Champawat, Pauri Garhwal, Pithoragarh, Rudraprayag, Tehri Garhwal and Uttarkashi. Two districts, Haridwar and Udham Singh Nagar are in plains. The remaining two districts of Dehradun and Nainital have both substantial hill and plains. There are 78 tehsils, 95 developmental blocks and 6,804 Gram Sabhas in the state. As per the 2011 census, the state has a total of 16,606 revenue villages, of which 15,580 are inhabited (excluding forest settlements). Uttarakhand is very rich in forest. Approximately, 64 per cent of the land in the state are under forest. Nearly 55 per cent of the forest are concentrated in Uttarkashi, Chamoli, Pauri Garhwal and Tehri Garhwal. Total number of towns is thirty-four. According to 2011 Census, the estimated total population of Uttarakhand is 10.1 million with 963 females per 1000 males. 69.77 per cent of the population are in rural areas. 47.37 per cent of the total population in Uttarakhand lives in the villages of the hill districts. It is a young state with close to 42 per cent of total population in active age group of 20-50 years.

1.2 In the State, the average road available is 360.2 person per kilometre, which is much lower than the national average (Source: Parliament Question: IndiaStat.com). On average, a hospital exists for each 3, 032 person and there is a school per 217 children of age ranging 5 to 19. The literacy rate in Uttarakhand is 78.8 per cent (Census 2011, in population above the age of 7), which is higher than the all-India level of literacy rate. Yet, it ranks 12th in the total literacy rate. Female literacy is 70 per cent and it ranks 15th among all the states in India. Within Uttarakhand, Dehradun has the highest literacy rate for the total population, while Haridwar and Udham Singh Nagar has the lowest literacy rates. According to the Ministry of Power, (Source: Parliament Question, IndiaStat.com), in 2014-15, the per capita consumption of electricity in Uttarakhand is 1358 Kwh, which is much higher than the national average of 1010 Kwh.

1.3 The per capita GSDP for Uttarakhand is increasing steadily. In last 5 years, the growth rate in per capita GSDP, with the exception of 2014-15, has fluctuated within the narrow band of 5.57 per cent to 7.02 per cent. The average annual growth rate of per capita GSDP in last 5 years has been 5.72 per cent. During the same period the annual average growth rate in per capita GDP at the All India level is 5.5 per cent (Source: India Time Series, EPWRF), which is lower than that of Uttarakhand. Among the States, the per capita GSDP of Uttarakhand is fifth highest in the year 2014-15 (Source: RBI Handbook of Statistics on the Indian Economy). This shows that there is a steady improvement in the average standard of living of the people in the state. The “Uttarakhand Development Report” of Planning Commission, GOI (published in 2009, Academic Foundation) pointed out that Uttarakhand’s per capita GSDP was lower than the per capita GDP at the national level. However, it also pointed out that from 2004-5 onwards, Uttarakhand is closing the gap. Now we found that in terms of per capita GSDP the state has surpassed the national

average. It has happened primarily because of large scale industrialization in the some parts of Uttarakhand. The same report mentions that during 2002-03, the period for which comparable figures are available for most states, the secondary and tertiary sectors contributed 27 per cent and 42 per cent to GSDP, while primary sector contributed 31 per cent. This structure was comparable to the agriculture dominant states. From 2003-04 onwards, by utilising the special hill package for industries, the sectoral structure of the economy has gradually changed to an industry dominated one.

1.4 2012-13 onwards, Uttarakhand is having the average annual GDP growth rate of 7.15 per cent, much higher than India’s annual average GDP rate at market prices (measured at 2011 prices), 6.77 per cent the same period. But the major difference lie in the growth process that has been in Uttarakhand and at the national level. Unlike the growth process at the national level, the growth in Uttarakhand in last one decade is dominated by industry. In last 5 years more than 50 per cent of the value addition has come from industries and roughly 35 per cent has come from services. Uttarakhand as a state has made huge strides in terms of industrialization in the last decade and a half. Before the creation of the state, very little industrial activities took place in the region. However, following the creation of the state, along with assistance package from the centre, the state has industrialized rapidly. The state has taken a well-rounded approach to develop industrial areas in order to attract industries. This has provided foundation for establishment of manufacturing bases of several high profile private and public firms. These manufacturing units along with their ancillaries have provided not only employment to local population, but they have also been instrumental in attracting further investment in the state.

1.5 However, this industrial growth has not been even. The districts in the plains have been the main beneficiaries of the industrial development in the state. The hills districts have failed to attract any significant investment since the industrialization drive began in Uttarakhand. The hilly terrain and lack of infrastructure are two major reasons. Also, due to the fragile environment in the hills, only selected industries can operate there so that the delicate ecological balance is maintained. In order to provide employment to the youth in the hills, massive skill development initiatives need to be started, along with increased thrust towards self-employment through entrepreneurship development. The two potential domains can be agri-business and tourism. The growth of agri-business by encouraging production and building market linkages for high value-added agricultural products can be one area which can drive the growth and employment in the hill economy. Similarly, in tourism industries, development of skill and entrepreneurship will help in tapping its potential in attracting both foreign and domestic tourists. Further, for both the drivers of growth we need infrastructural developments to achieve efficient and competitive supply chain of goods and services. These infrastructure includes roads and transports, warehouses and air connectivity among others. Given the difficult geographical terrain and fiscal constraint, we may adopt a cluster of localities approach where many of these infrastructure will be built in the central location within each cluster.

1.6 The industrial growth has not been translated enough into development for the population in the state. The state lacks the mechanism to deliver and monitor the delivery of effective education at the primary level. The lack of access to higher education pose a significant hindrance to the state’s youth for future employment and earning opportunities. Even the literacy rate in the state is nothing to be proud of. It is especially disheartening to see the districts receiving the gains from industrialization to suffer in terms of lack of education.

1.7 The hilly terrain of Uttarakhand makes it difficult to effectively distribute the public services to the entire population of the state. Industrialization in the plains district has contributed to massive migration from the hills districts to the plains districts. Until and unless a concerted effort is put forward in order to distribute the gains from industrialization across the state, the flow of migration cannot be reversed. In order to achieve this, the population of the state needs to be educated with adequate skill development, and entrepreneurship skills need to be imparted on the population with active government support. The challenge of providing support to the population makes it all the more important to achieve.

1.8 One of the major barrier to distribute the benefit of industrialisation and development of local entrepreneurship is availability of infrastructure. There are several issues related to infrastructure development in Uttarakhand. These include connectivity in civil aviation, power, surface transport, communication and finance. However, any plan for an international airport requires adequate traffic. In this context, international airports at Haridwar and Pantnagar, which can be a feasible proposition, are much needed to improve long distance connectivity.

1.9 Owing to the hilly terrain in the state, having a robust network of road, train, and air is an extremely important prerequisite for overall growth and development of Uttarakhand. Although, the road network in the state has been improving over the years, there hasn’t been much development in the train network. The air network in the state has also not improved, even though the state has huge potential to become a major tourism destination in the world given proper infrastructure and eco-tourism destinations are developed.

1.10 A well-connected transportation network is also required for industrial development of the state. As the manufacturing units in Uttarakhand depend on business in other parts of India for their inputs, logistic costs form an important factor of the firms’ choice of location. Having a well-connected network of roads, rail lines, and airports can significantly bring down logistic costs, making Uttarakhand an attractive destination for firms to set up their bases. The central government has devised elaborate plans to develop industrial corridors and a small part of it is passing through the Uttarakhand. The state needs to integrate them in their own planning. A multi-modal logistics park has also been developed in Pantnagar.

1.11 Elaborate plans need to be devised and implemented to connect the remote locations in Uttarakhand to the rest of the country. This will not only make delivery of public services easier, but will also facilitate the development of new industrial zones. New eco- tourism destinations will also get developed through this, allowing entrepreneurship to bloom among the population, and reversing the flow of migration. However, all this needs to be done in an environmentally conscious way in order to maintain the delicate ecological balance of the region.

1.12 The state has also taken proactive steps to develop the MSME sector. To keep the momentum of industrial progress going, and generate further employment, the development of the MSME sector is of paramount importance. However, the state needs to also become active in generating alternative sources of power. As India’s commitment towards Paris Agreement remains to be fulfilled, Uttarakhand has the potential to become one of the leading sources of renewable energy. This can also be an attractive reason for firms to locate in Uttarakhand, as many of the world’s leading firms have committed to align their business practices along the lines of the Paris Agreement.

1.13 The success in industrialisation primarily came from the tax exemption scheme of Central Government. However, the success of initial years in setting up of enterprises has been reduced in later years. According to economic census, between 1998 and 2005, the compound annual growth rate (CAGR) in number of enterprises was 6.05 per cent. However, between 2005 and 2013, the CAGR in number of enterprises came down to 2.68 per cent, which is lower than the national average of 4.46 per cent. In this background, the introduction of GST might make the state of entrepreneurship decline further. A substantial portion of benefit from Central Government’s tax exemption will be eliminated with the advent of GST. In this situation, in the absence of large domestic market or reserve of raw material, the state will face a steep challenge in maintaining the competitiveness in attracting industries. While, Uttarakhand has been successful in attracting modern industries like automobiles etc., the employment elasticity of these modern industries are very low. So adequate employment generation in industrial sector has remained a challenge. Further, there are challenges in reviving old industries like sugar and paper. These industries are loosing their profitability due to non-adoption of modern technologies. Investments are required to modernise. Some of these problems can be partially solved if there is an improvement in transportation, improvement in the supply of cheap skilled employees, development of local entrepreneurship, availability of cheap and abundant electricity by producing more hydroelectricity, and attracting capital to invest in older industries to modernise them. However, while producing more hydroelectricity, we need to be careful about the ecological balance in the hills.

1.14 Unlike national pattern of growth process, IT sector does not have any substantive role in the service sector growth of Uttarakhand. Service sector of Uttarakhand is dominated by 3 T- trade, transport and tourism. Though the productivity of these service sectors is not very high, their employment generation capacity is substantive. Apart from 3-T, the other contributing sectors in service sector growth of Uttarakhand are higher

education and banking. While the growth in GDP is focused around 3-T, the value addition is much higher in real esate and other professional services.

1.15 2014 and 2015 have reported only about 5-6 per cent of foreign tourist visitors as against the year 2013 after natural disasters. This trend needs to be reversed as soon as possible by the policy makers and implementers of the same. However, the number of foreign tourists visiting national parks shows an increasing trend in most places of Uttarakhand and measures can be taken to increase the number to its true potential. If more allocation is made to tourism and concerted action happens, it can result in an invariable rise in number of international incoming tourists to destinations such as Uttarakhand. One of the major stumbling blocks in the development of tourism is air connectivity and air transportation. A state like Uttarakhand has only two functional airports and one of them is crippled for most part of the year due to weather disturbances. This situation needs to be improved and better connectivity to and from international destinations is required to promote tourism in the state.

1.16 Domestic tourism also needs to be given similar focus. Much of the tourist potential of the state is unutilised and a lot of attention is required to develop the sector to achieve the same. Three different types of inputs – first, many sites are not popular and need infrastructure as well as marketing push in both types of tourists. Second, there are some locations that are more preferred by foreign tourists and they may be developed as destination tourism for foreign travellers and linked to circuits. Lastly there are locations that are frequented only by domestic travellers and they need to be linked to infrastructure and others services required by domestic travellers.

1.17 No creditable data was found for the hotel and room infrastructure in the state. This is crucial information as it helps in shaping policies and the actions for promoting tourism, improving service levels and value addition in the tourism sector, thereby fostering growth and employment generation in the state.

1.18 There is an urgent need to promote employment in tourism and more accurately highlight the benefits of tourism jobs and opportunities to retain the talent in the sector and promote it further. One of the key highlight areas in this regards is the close connection between media and tourism.

1.19 Immediate and important requirement of the tourism sector in Uttarakhand is assessment and mitigation of risk along with emergency management. The short terms goals include implementation of a new international classification for tourist accommodation. Medium term goals would include developing and selecting tourism projects that seek development of tourism in a sustainable manner, and also aim at reduction in poverty and hunger. The long term plans should include projects for development of tourism infrastructure and institution building that seeks partnerships for

promotion of shopping tourism, cultural tourism, and long-stay tourism. Partnerships for talent development, market research and promotion are also important.

1.20 The suitability of Uttarakhand to eco-tourism is now firmly established through various experimental ventures. However, it has been pointed out that one of the key elements of eco-tourism needs to be the conservation of natural environment. This calls for special attention of policymakers as well as those involved with the tourism industry. The strength of 64% forest cover in the state needs to be harnessed in increasing both the potential as well as its utilization in terms of tourism. As per a recent study conducted at the behest of the state government the revenue earnings from eco-tourism have increased from a mere 80 lakhs to more than Rs.24 crores in a decade. Eco-tourism is also claimed to have created significant local employment.

1.21 The transportation , storage and communication sub-sector grew at a more or less steady rate in absolute terms across the decade. It needs to continue to be a focus area for policy and implementation. Action needed in the direction of remote air connectivity for the state of Uttarakhand is of prime importance. The standard ways of looking at air connectivity are not enough for the state of Uttarakhand given its special terrain and potential for tourists and hence we have to look for alternative modes of air connectivity such as helicopters and special small chartered flights. Some PPP experiments may be needed to instil faith on both the supply and demand sides of the aviation market in the state.

1.22 Information technology and associated services, (IT and ITES) sub-sector of services is important for the state as well. The number of CSCs is only 1.25 % representing a lot desirable in terms of providing better connectivity and reaping the benefits of e- governance in the hinterlands of the state. The state has performed much better in the roll out of internet services to its masses. Almost, 10% of the internet subscribers in the country are from the state as of march 2014. The corresponding figure for broadband subscribers is a little over 6% of the nation’s subscribers. There is a case to revisit the telecommunications infrastructure in the state and speed up the mobile revolution as there are significant gains to be made in financial inclusion and poverty eradication at the Bottom of the Pyramid.

1.23 The fluctation at the state level compared to overall flucation in the services at the Indian Economy level is much higher signifying the need for a trend rather than one- two exceptional years. Policies for the services sector need to be developed accordingly.

1.24 The agriculture in hills of Uttrakhand are largely subsistence type, not much remunerative. People in villages of hill districts are looking for occupation other than farming. As a result area under cultivation in hills has reduced. However, there is an increasing trend of horticulture, though it is much less than the state’s potential. The primary difficulties for horticulture is linkages with the market. This linkage is weak due to lack of transport and warehouse facilities. The scale of operation is a major obstacle to

avail these facilities. Generally, in hills, the size of the village as well as the number of people in that village is small. Hence, there is a need to create cluster of villages that produces horticultural product to get the required scale. Hence, to develop horticulture, planning for geographical concentration of production is required. Then the centre of these clusters may be linked better with the market infrastructure. These kind of clusters of agricultural producers are highly feasible in lower and middle high Himalayan region.

1.25 The Uttarakhand Government is putting efforts to revitalize agriculture and allied activities in the State, especially to rejuvenate hill agriculture. Of total geographical area of 53, 483 sq. kms., 86 per cent is hilly area. The state has 69.77 per cent rural population of which 67.90 percent are resident of the hill districts (Census 2011). Various schemes have been implemented to make agriculture and allied activities attractive and financially rewarding without undermining the fact that the same needs to be environmentally sustainable. Hill agriculture is mostly of the subsistence type, rainfed and depends on suitable weather for good yields. The state government and its departments are aiming at changing the outlook of the sector and make it market-oriented agriculture. In 2013- 14, the net sown area was 701.03 thousand hectares which has fallen to 700.17 thousand hectares in 2014-15. The contribution of agriculture in Gross State Domestic Product (GSDP) have been falling although the GSDP and GSDP per-capita in the state has risen almost at a steady state. As per the Government records, out of total 59.93 lakh hectares geographical area of the state, the net cropped area was only around 7 lakh hectares in 2014-15 accounting to 11.68 per cent of the total geographical area. It is estimated that over 55 per cent of cultivated area is rainfed with frequent moisture stress to crops. In 2014-15, around 63 per cent of the area was under forest cover, around 4 per cent under non-agricultural use, another approximate 4 per cent was barren and uncultivable land and 5 per cent was cultivable waste land. The distribution of land holdings according to 2010-11 Agricultural Census show that 912 thousand farm holdings operating 815 thousand hectares. The average holding size in the State is less than 1.00 hectare (on an average 0.89 hectare).

1.26 The performance of agriculture in Uttarakhand is closely related to the performance of monsoon. Rainfall variability does adversely affect agricultural productivity and allied activities. Wheat and paddy are major crops, sown in 38 per cent and 29.17 per cent of the total food grains sown in the state respectively. Area under food grains in 2005-06 was 970.14 thousand hectares and in 2014-15 it was 883.93 thousand hectares. Productivity of oilseeds in the state has improved from 5.6 quintal per hectare in 2005-06 to 8.2 quintal per hectare in 2015-16. The cropping intensity in Uttarakhand was 159.2, estimated to be more than the country average figure of 138.9. In the three years between 2012-13 and 2014-15, area under fruits and vegetables increased by 4,108 hectares and 9, 346 hectares respectively. This is a positive sign as yield from horticulture are more than open field crops like paddy and wheat.

1.27 Uttarakhand state falls in Zone 09 (Western Himalayan Region) as per the Agro- climatic Regional Planning of Planning Commission. Approximately 34 per cent of the net

sown area in the state is concentrated in the plain districts of Haridwar and Udham Singh Nagar while their share in geographical area is only 10 per cent. Access to irrigation is a serious concern in the Himalayan state due to hilly topography. Out of 13 districts, only four districts have more than 50 per cent of net sown area under irrigation. Fertilizer consumption has increased by 43, 033 metric tonnes from 1,19, 205 metric tonnes (2001- 02) to 1,62,238 metric tonnes (2014-15). The larger share in fertiliser consumption is of the plain districts and districts where there adequate irrigation facilities. For increasing the productivity (or yield) of food grains and oilseeds, the state has taken steps towards introduction of High Yielding Varieties (HYV) of the crops. In recent years there is substantial reduction in consumption of electricity for agricultural purposes. Many centrally sponsored schemes such as NADP, NFSM, NMSA, Rain-fed Agricultural Development Program, NAMET, PMIS, among others are being implemented and progressing successfully.

1.28 The animal husbandry and livestock have played an important role in the rural economy of the state especially in the hilly districts. The livestock is important from the point of view of food security, alternative sources of income, agricultural activity to a medium of transportation. In 2015-16, the share of animal husbandry in Gross State Domestic Product (GSDP) of Agriculture and Allied activities was 27.27 %1. As per the 19th Livestock Census, the share of Uttarakhand in all India livestock and poultry population was 0.94 per cent and 0.64 percent respectively. The total population of the livestock in the state is 96.64 lakh including poultry.

1.29 There has been a significant increase in the population of crossbred cattle but a decrease in the indigenous cattle population. Overall, total population of cattle has decreased. In recent years, poultry farming in the state has increased, promoted by policies adopted by the state government. Udham Singh Nagar leads in share of poultry population with almost 66 per cent followed by Nainital with 12.80 per cent. Apart from poultry, milk, wool and meat are the major produce from livestock. Uttarakhand ranked eighteenth in terms of milk production in the country in the year 2015-16. Since 2001-02, the production of poultry has out passed that of milk, wool and meat.

1.30 The onus of providing animal health services in Uttarakhand both prophylactic and therapeutic; farm advisory services; extension and communication; technical backstopping; animal breeding services; and all other inputs related to the livestock sector lie with the Department of Animal Husbandry. Such wide range of activities are carried out through its vast institutional setup consisting of veterinary hospitals, dispensaries, artificial insemination (AI) centres, livestock production farms; training centres and other production support institutions etc. Uttarakhand Livestock Development Board (ULDB) is an autonomous body, having its headquarters at Dehradun is set up under the Centrally sponsored National Project for Cattle and Buffalo Breeding and is registered under the Societies Regn. Act 1860. The board is the sole agency for the production and supply of

1 http://www.mospi.gov.in/data

quality frozen semen doses (as per MSP norms of GOI); procurement and supply of Liquid Nitrogen through the establishment of a state LN2 grid; and all other inputs related to the successful field delivery of Artificial Insemination. The activities of Uttarakhand Sheep & Wool Development Board (USWDB) is deeply rooted within the rich cultural and traditional heritage of Uttarakhand and forms one of the major economic backbones of the marginal and landless farmers of the state. Similarly, the Dairy Development Board implements and supervises dairy development programs to ensure quality availability of milk and milk products in cities, towns and religious places of Uttarakhand at reasonable price through cooperative agencies.

1.31 Plenty of water is available for the flourishing of fisheries in Uttarakhand. The Himalayan state is endowed with a vast networks of 2, 686 kms long rivers, reservoirs with a vast area of 20, 075 hectares, 297 hectares in the form of natural lakes and rural ponds covering an area of 695.04 hectares. It is estimated that the state has waterlogged area of 1000 hectares. Annual fish production in the state is reported to be 3, 833 tonne per year and seed production is around 400 lakh per year (figures from Fisheries Department Uttarakhand). Uttarakhand’s geographical area of 53, 483 sq. km. constitutes 1.63 % of India’s area. Forest accounts for highest land use 71.05 % of state area. Forests are an invaluable asset endowed by nature. Forest not only checks pollution but also control weather. Forest play important role in water and soil conservation. It provides shelter to wild animals and a large number of our basic needs are fulfilled directly or indirectly by forest.

1.32 Uttarakhand’s population and population density have been increasing steadily over the years. However, a very interesting fact about Uttarakhand’s demography has been the migration of people from hilly regions to the plains. Although migration has always been a feature of Uttarakhand’s history, the recent wave of migration is structurally different. In the previous type of migration, the males would leave for some years to make a living, but then would return to their ancestral villages. However, in the new type of migration, the entire families are leaving abandoning their homes and land. This is not only serious threat to the culture of the region, but also poses significant danger to the national security as many of these abandoned villages are in border areas and the people living in them often provide the security establishment with important intelligence inputs.

1.33 The lack of technological know-how and lack of productivity have made agriculture less attractive to the youth of Uttarakhand’s hills. Heavy rains destroying the irrigation channels in the hills and low availability of agricultural labor have also compounded the problem. In order to reverse the flow of migration, immediate steps should be taken. Proper infrastructural support, technological assistance, crop choice help, and marketing support need to be provided to people of Uttarakhand hills involved in agriculture.

1.34 Uttarakhand occupies a unique significance in the water resources management for the entire country as well as it is home to a significant proportion of catchment area of both the Ganga and the Yamuna rivers. It is also an upcoming destination for eco-tourism.

Hill systems are also prone to water quality distortions due to the high mineral content despite being home to some of the purest water from melting glaciers. The role of government policy can therefore not be understated for a state like Uttarakhand. Fragile ecosystems such as Uttarakhand need to pay more attention to this resource as it links to nature and sustainability, economics and social life at large as well.

1.35 Most of the agriculture in the state is dependent on groundwater and restricted to four Terai districts of the state. The groundwater development of the state is only 51 per cent and lags the national level of 61 per cent. This calls for urgent attention and the government has initiated several schemes and a new water policy was also called for in 2014 to take into consideration such issues of water resources management. A carefully strategy for conserving the ground water resources of the state has been identified for artificial recharge activities.

1.36 The demand side story is positive so far as the state reports a net positive balance of water. However, there is an urgent need to collect information and also work out proposed water resources management at the micro level as 9 out of 18 micro level data points for the state show above 80% consumption of total availability. This could be a red herring of the impending issues that are about to come in the future if corrective actions are not taken currently. The shift in irrigation sources is indicative of shifting power and infrastructure needs for the state and can also be a function of changing cropping patterns in the state. The same needs to be investigated.

1.37 The fiscal allocation to the state is now close to 1 per cent of the fiscal allocation for the irrigation sector for the nation as a whole. The state has not been receiving any central assistance under the Accelerated Irrigation Benefit Programme (AIBP) since 2005-06. The total assistance received by the state is only 1.25 per cent of the total expenditure on the programme in the considered duration. The area under micro-irrigation in the state is less than a fraction of the area across the country. The data from 2013-14 indicates a very high intra-state variation combined with a high seasonal variation within a year for water level changes. Policy makers and implementers need to take note of the same at the earliest.

1.38 A rising trend in per capita domestic water usage in the state is indicating the need for demand side management. The water quality in the state of Uttarakhand is good but some red herrings are emerging indicating a need for constant and close monitoring of at the local level. 29 per cent of the water sources are in the semi-critical zone that have a positive water balance but a high extraction percent. Around 6 per cent habitations are in the very high exploitation category and are categorised as critical.

1.39 The state of Uttarakhand is rich in terms of the public water bodies and accounts for 2.16% of the total public owned water bodies in the country. The state has done better than the national average in terms of sanitation coverage. Uttarakhand is one of the few states experimenting with river bed filtration technology. Developed by Uttarakhand Jal

Sansthan, it is an excellent method of locating drinking water source at a certain distance from the major rivers.

1.40 The percentage of direction and administration expenses vis-à-vis the working expenses is a very high figure of more than 50 per cent. This indicates that more money is spent in creating and maintaining the water resources management bureaucracy rather than carry out work with the same amount of capital.

1.41 Uttarakhand is facing significant danger in terms of gender ratio like several other states in North India. This is especially depressing since the hills region which haven’t seen much of industrial progress is actually faring better in terms of gender ratio than the plains region which has been the major beneficiary of the industrial development. With added prosperity, increased tolerance and open-mindedness didn’t follow through, and a concerted effort needs to be put up in order to improve the situation. This lack of education has also been instrumental in the poor status of women in Uttarakhand. The violence against women has skyrocketed in the state. Even a significant share of the married women is suffering from spousal abuse. Women are also lagging behind men in terms of education and their representation in public service is also not proportional.

1.42 The lack of healthcare facilities in the state has resulted in a significant number of women not receiving proper pre and post-natal care. An alarming portion of the children living in the state are underweight and malnourished. The high incidence of poverty in state also makes the matter complicated. Another alarming fact is very low success of the vaccination drives as majority of the children living in the state are not vaccinated.

1.43 Given the challenges for growth, almost every sector in the state requires capital formation. However, we don’t have reliable data on capital formation for most of the sectors. It makes difficulty in assessing the progress being made in capital formation both at the aggregate and as well as at sectoral level. Even then, as we pointed out that for sustaining the existing growth and spreading the growth in hills, there is a major need to develop local entrepreneurship. It requires large investment. However, the scope of public investment is limited by the availability of fund in the state exchequer. There is an increasing revenue deficit as well as public debt for the State Government. In this situation private initiatives becomes more important, especially in key areas of capital formation- hydroelectricity and roads and telecommunications, warehouses and skill development etc. Within these areas the scale of capital need is of different sizes. But, the credit-deposit ratio in state is poor. It is also an indicator of poor state of mass private entrepreneurship. People are not willing to take risk of business. In this situation, where the State Government does not have enough resources to invest, it needs to design a policy framework that should reduce the perceived business risk for entrepreneurship.

Chapter 2 State Output and Its Sectoral Structure

Gross State Domestic Product (GSDP) of Uttarakhand 2.1 The Gross State Domestic Product (GSDP) of Uttarakhand has experienced a steady increase over the years. In the year 2016-17 the GSDP has become Rs. 162.82 thousand crore, measured at 2011-12 prices. This has been an increase from Rs. 152.18 thousand crore of the year 2015-16.

Graph 2.1: Gross State Domestic Product of Uttarakhand at 2011-12 prices (in Rs. 000 crore) 180.00 162.82 160.00 152.18 141.28 140.00 134.18 123.71 115.33 120.00

100.00

80.00

60.00

40.00

20.00

0.00 2011-12 2012-13 2013-14 2014-15 2015-16Q 2016-17PE

2.2 The Gross State Domestic Product of Uttarakhand has experienced a substantive growth of more than 7 per cent at 2011-12 prices. During the last five years, 2012-13 onwards, the average annual growth rate is 7.15 per cent. Looking at the trend of GSDP growth rate of Uttarakhand, there is a marginal declining trend in the growth rate from 2011-12 onwards. The GSDP growth rate was 7.71 per cent in 2015-16. However, it has declined to 7.00 per cent in 2016-17. During the same period, India’s annual average GDP rate at market prices (measured at 2011 prices) is 6.89 per cent (Source: Handbook of Statistics on Indian Economy, RBI). Hence, in last few years, Uttarakhand, despite having the marginal trend of lowering growth, has grown at a faster rate than the national average.

Graph 2.2 : GSDP Growth Rate of Uttarakhand (in per cent) at 2011-12 prices

8.90 8.60 8.47 8.30 8.00 7.70 7.71 7.40 7.27 7.10 7.00 6.80 6.50 6.20 5.90 5.60 5.30 5.29 5.00 2012-13 2013-14 2014-15 2015-16Q 2016-17PE

2.3 The per capita GSDP has also increased steadily in last 5 years. In the year 2016-17, the per capita GSDP is Rs. 1,49,805.95. In the year 2011-12, it was Rs. 1,13,455.57. However, the trend in per capita growth rate has shown a marginal declining trend. With the exception of 2014-15, the per capita growth rate path has taken an inverted U-shape with the peak growth rate of 7.02 per cent in the year 2013-14. The average annual growth rate of per capita GSDP in last 5 years has been 5.72 per cent. During the same period the annual average growth rate in per capita GDP at the All India level is 5.5 per cent (Source: India Time Series, EPWRF), which is lower than that of Uttarakhand. Among the States, the per capita GSDP of Uttarakhand is fifth highest in the year 2015-16 (Source: RBI Handbook of Statistics on the Indian Economy). The data of 2016-17 is not available for most of the States. This shows that there is a steady improvement in the average standard of living of the people in the state. The “ Uttarakhand Development Report” of Planning Commission, GOI (published in 2009, Academic Foundation) pointed out that Uttarakhand’s per capita GSDP was lower than the per capita GDP at the national level, during its inception years. However, it also pointed out that from 2004-5 onwards, Uttarakhand is closing the gap. Now we found that in terms of per capita GSDP the state has surpassed the national average. It has happened primarily because of large scale industrialization in the some parts of Uttarakhand. The same reports mentioned that in Uttarakhand, during 2002-03 for which comparable figures are available for most states, the secondary and tertiary sectors contributed 27 per cent and 42 per cent to GSDP, respectively. And the primary sector had contributed 31 per cent of GSDP. This structure was comparable to the agriculture dominant states. From 2003-4 onwards, by utlising the special hill package for industries, the sectoral structure of the economy has been gradually changed to a industry dominated one.

Graph 2.3: Per capita GSDP Growth Rate of Uttarakhand (in per cent) 7.50 7.02 7.00

6.50 6.29

6.00 5.84 5.57 5.50

5.00

4.50

4.00 3.88

3.50 2012-13 2013-14 2014-15 2015-16Q 2016-17PE

Table 2.1: Gross State Domestic Product of Uttarakhand (at 2011-12 prices)

GSDP (in Rs. GSDP Growth Annual Per Capita Per Capita GSDP 000’ crore Rate (in %) GSDP (in Rs.) Growth Rate (in %) 2011-12 115.33 113455.57 2012-13 123.71 7.27 120083.53 5.84 2013-14 134.18 8.47 128514.86 7.02 2014-15 141.28 5.29 133507.50 3.88 2015-16Q 152.18 7.71 141901.39 6.29 2016-17PE 162.82 7.00 149805.95 5.57

Sectoral Structure of Production in Uttarakhand Table 2.2: Sectoral Contribution to Gross Value Addition of Uttarakhand (in per cent)

2011-12 2012-13 2013-14 2014-15 2015-16Q 2016-17PE Average Agriculture and Allied 12.28 12.42 11.32 10.71 10.09 9.70 11.09 Industry 53.84 53.67 53.14 52.10 52.44 51.89 52.85 Tertiary 33.88 33.91 35.54 37.19 37.47 38.41 36.07

2.4 The sectoral composition of the production structure of the state is markedly different from the national sectoral composition of the production structure. At the national level, the sectoral structure of GDP is dominated by services. The production structure of the state is dominated by Industries. More than 50 per cent of the value addition that happens in the state comes from the Industries. The contribution of Industries are largely fluctuating within the band of 51-55 per cent in last few years. In last 6 years, the contribution of Industries are showing declining trend. Whereas, the contribution of agriculture and allied is declining steadily from 12.28 per cent in the year 2011-12 to 9.70 per cent in the year 2016-17. In contrary, the contribution of service sector is showing a growing trend. It has grown from 33.88 per cent in the year 2011-12 to 38.41 per cent in the year 2015-16. It indicates, that service sector has started to dominate the sectoral growth structure. The growth of industry and agriculture is much lower than services, though Industry dominates the overall production structure of the economy. 2.5 Little more than half of the agricultural output comes from the crop production. There is a declining trend in the contribution of the crops. In the year 2011-12, the crops contributed 57.47 per cent. And by the year 2016-17 the share has declined to 50.78 per cent. Whereas, the contribution from livestock has shown an increasing trend during last 5 years. Table 2.3: Sectoral Composition in Agriculture, forestry & fishing (in per cent)

2011-12 2012-13 2013-14 2014-15 2015-16Q 2016-17PE Crops 57.44 58.68 53.84 53.50 51.92 50.78 Livestock 21.63 20.42 22.25 24.88 27.24 28.10 Forestry and logging 20.66 20.65 23.63 21.32 20.53 20.80 Fishing and aquaculture 0.27 0.25 0.28 0.30 0.31 0.31

2.6 This fall in contribution of agriculture indicative of decline in rural economy. This is primarily caused by fall in crop production. The challenges is to make the agriculture more remunerative such that agricultural production goes up. For making it remunerative, there is a need to produce more high value crops like fruits, vegetables etc. The state has lot of unutilized land, particularly in the hills. We may utilize them for orchard, horticulture, Floriculture etc. Further, we need to enhance the food grain production to enhance the food security. The fall in food grain production leads to increasing dependence on the public distribution system of food. The supply of food in the market will be increasingly coming from other state. As there is a thinking of enhancing direct money transfer in various social welfare scheme at the national level, this will further make the food availability and its’ prices subject to market risk. There is a need to design twin strategy such that farmers produce food grains at least in a part of their land, once in a year. And rest of their land should be utilized for orchard, horticulture etc., that is primarily high value crop. This twin strategy will help the state to ensure food security and make the agriculture more remunerative, simultaneously. To make agriculture remunerative, the dairy business may be a useful option, particularly in less water region.

Table 2.4: Sectoral Composition in Industry (in per cent)

2011-12 2012-13 2013-14 2014-15 2015-16Q 2016-17PE Mining and quarrying 3.19 3.10 4.79 3.02 2.75 2.88 Manufacturing 74.83 76.53 73.39 74.93 75.51 75.85 Electricity, gas, water supply & other utility services 6.82 6.27 5.06 5.50 6.12 6.42 Construction 15.15 14.11 16.76 16.55 15.61 14.85

2.7 More than half of the value addition in the state comes from industries. And manufacturing itself contributes 36 to 38 per cent of the state value addition. The historical experiences of development across world suggest that the present sectoral composition of value addition is a decent enough to have sustainable growth of the economy. But a careful look at the figures will tell us that industries as a whole contribution is declining. The same trend is being observed in the manufacturing too. Hence, the challenge is how to bring further momentum in the ongoing process of industrialization in the state. 2.8 In the inter-state trade Uttarakhand is a very active participant. According to the Economic Survey of 2016-17 of Government of India, Uttarakhand, among the states, is having the highest trade volume in proportion to its Gross SDP. The trade volume (Exports+ Imports) is 105.2 per cent of the Gross State Domestic Product. But Uttarakhand exports less than imports. Its trade deficit is as wide as 43.5 per cent of the Gross State Domestic Product. This indicate that the state need more progress in the production of output both in industries and agriculture. Further, this deficit can be met through the progress in services. One such service sector is tourism. Tourism is a dominant service sector in the state. But still there is untapped potential of improving tourism industry. Improvement in road connectivity, telecommunication, encouragement of private entrepreneurship, popularizing eco-tourism may help in this. Table 2.5: Sectoral Composition in Services (in per cent)

2011- 2012- 2013- 2014- 2015- 2016- 12 13 14 15 16Q 17PE Transport, Storage & Communication 18.85 19.34 18.85 19.05 19.56 19.06 Railways 0.39 0.39 0.35 0.39 0.45 0.44 Transport by Means Other than Railways 5.97 6.22 5.83 5.52 5.14 5.01 Storage 0.02 0.02 0.01 0.01 0.01 0.01 Communication & Services Related to Broadcasting 12.48 12.71 12.66 13.12 13.96 13.60 Trade, Hotels & Restaurants 32.50 33.57 32.55 31.95 31.98 32.19 Financial Services 7.99 7.64 7.24 7.19 7.32 7.13 Real Estate, Ownership of Dwellings & Professional Services 16.04 15.99 14.91 14.56 14.14 13.89 Public Administration 11.02 7.52 9.76 10.88 10.81 10.46 Other Services 13.59 15.94 16.69 16.37 16.18 17.27

2.9 The most dominant contributor to value addition, within the service sector, is the Trade, Hotels & Restaurants. This segment in last 5 years on average has contributed more than 31 per cent of the service sector value addition. The other important contributors are telecommunication, Real Estate, Ownership of Dwellings & Professional services, Public Administration and other services. 2.10 The service sector’s contribution to value addition is showing an increasing trend. But this increasing contribution is primarily dominated by other services and telecommunication. The relatively faster increase in other services indicates a faster increase in domestic services. This may be a fall out of declining agriculture in the state. This sectoral composition also tell us there is a further need into improving the communication services, which is largely growing at the same rate of growth in whole service sector and financial services, which is growing at lower rate than the whole of service sector. Gross Domestic Product in Different District of Uttarakhand 2.11 There is a huge differences in the contribution to GSDP among the districts having plains and the districts of the hills. There are four districts, Dehradun, Nainitaal, US Nagar and Hardwar are having substantial plain. And rest of the 10 districts are in hills. These four districts together had contributed 63.51 per cent of the GSDP in the year 2004-05. The contribution of these four districts has gone up to 69.61 per cent in the year 2009-10 and by the year 2013-14, this contribution has become 71.62 per cent. Inter- district disparity in production has gone up over the years. The coefficient of variation among the districts’ Gross Domestic Product was 0.79 in the year 2004-05. This coefficient of variation has gone up to 0.91 in the year 2009-10. And it has gone up further to 0.96 in the year 2013-14. Table 2.6: Contribution of Different Districts in Gross State Domestic Product (in per cent)

2004-05 2009-10 2013-14 Uttarkashi 2.67 2.07 1.73 Chamoli 4.23 3.57 2.97 Rudraprayag 1.90 1.55 1.61 Tehri Gahrwal 6.21 5.01 5.13 Dehradun 18.32 18.51 18.60 Pouri Gahrwal 6.50 6.02 5.81 Pithoragarh 4.43 3.65 3.40 Bageshwar 2.06 1.57 1.52 Almora 6.29 5.04 4.64 Champawat 2.20 1.92 1.57 Naintaal 10.14 10.47 10.11 US Nagar 14.92 18.91 20.20 Haridwar 20.13 21.72 22.71

Table 2.7: Average Annual GSDP Growth Rate of Different Districts (in per cent)

2004-05 to 2009-10 2010-11 to 2013-14 Uttarkashi 8.50 4.38 Chamoli 10.30 4.33 Rudraprayag 9.48 10.49 Tehri Gahrwal 9.28 9.89 Dehradun 14.28 9.40 Pouri Gahrwal 12.30 8.26 Pithoragarh 9.73 7.38 Bageshwar 8.27 8.47 Almora 9.19 6.96 Champawat 11.05 4.09 Naintaal 14.85 8.25 US Nagar 19.71 11.23 Haridwar 15.97 10.61

Table 2.8: Contribution of Different Districts in GSDP of Primary, Secondary and Tertiary Sector (in per cent)

Primary Sector Secondary Sector Tertiary Sector Districts 2004- 2009- 2013- 2004- 2009- 2013- 2004- 2009- 2013- 05 10 14 05 10 14 05 10 14 Uttarkashi 4.88 4.95 3.90 1.65 0.90 0.86 2.17 2.07 1.88 Chamoli 6.69 8.01 5.62 3.83 2.24 2.11 3.27 3.26 3.01 Rudraprayag 2.48 2.66 3.98 1.60 0.84 0.82 1.79 1.70 1.67 Tehri Gahrwal 7.07 5.40 6.89 6.80 4.08 4.09 5.49 5.49 5.48 Dehradun 9.14 6.59 7.30 15.51 13.21 13.36 24.21 24.74 24.64 Pouri Gahrwal 6.84 6.21 5.67 5.62 4.72 4.70 6.83 6.77 6.61 Pithoragarh 5.70 5.50 5.54 3.99 2.22 2.05 4.07 4.07 3.89 Bageshwar 3.44 3.16 3.67 1.63 0.88 0.84 1.63 1.59 1.55 Almora 10.07 9.43 9.08 4.37 2.50 2.40 5.54 5.48 5.27 Champawat 4.02 5.06 2.92 1.44 0.80 0.73 1.76 1.82 1.87 Naintaal 10.96 13.28 9.77 8.06 8.10 8.17 10.89 11.22 11.54 US Nagar 12.38 15.94 18.36 19.70 28.72 29.28 13.52 13.65 14.24 Haridwar 16.35 13.81 17.28 25.80 30.80 30.59 18.82 18.15 18.35

2.12 The production of the state has experienced relatively low growth in post 2009-10 period in compare to previous 5 years of 2004-5 to 2009-10. During the period of 2004-5 to 2009-10 all the districts had shown dynamism in terms of reasonably high growth rate. However, all the four plain districts of Uttarkhand had a much higher growth rate than the hill districts. The post 2009- 10 period shows slightly different trend. Growth in all the plain districts has been slowed down. In contrary, some of the hill districts like, Rudraprayag, Tehri Gahrwal, Bageshwar has maintained

the growth dynamics of the previous period. However, the plain districts, Haridwar and UdhamSingh Nagar, which has become the industrial hub of the state has continued to be the driver of the growth for the state.

2.13 Two districts, in the plain, US Nagar and Haridwar clearly dominates the production in all the three segment of primary, secondary and tertiary sector. In primary sector other two dominant districts are Nainitaal and Almora. Dehradun and Nainitaal districts are contributing highly both in secondary and tertiary sector.

Chapter 3 State of Public Finance

3.1 The formation of the state of Uttarakhand happened in the year 2000. During the initial years the size of the Government was large. Gradually, it has come down. And the importance of private sector has increased. We have measured the size of the Government by the sum of total receipts and total expenditure of the Government. Further, it was normalized by the Gross State Domestic Product (GSDP). At the initial years total receipt and expenditure to GSDP ratio was fluctuating around 50 percent. Thereafter, it has started to reduce. In last three years, it has been fluctuating around 31 per cent.

Graph 3.1 Changing Size of the Government in Uttarakhand 60 55.8 49.64 50 37.92 40 29.15 31.76 31.14 30 20 10 0 2001-02 2004-05 2009-10 2013-14 2014-15 2015-16

Trends in Receipt and Expenditure of the Government

3.2 The growth of total receipt of the state is increasing at a lower rate than the GSDP growth rate. This is being reflected in the declining trend in total receipt-GSDP ratio. The revenue receipt is naturally the dominant source of receipt for the Government. The revenue receipt-GSDP ratio too has shown a declining trend in last 15 years. This declining trend is mainly created by the decline in non-tax revenue-GSDP ratio. It has declined because of low growth in the grants coming from the Central Government. The tax revenue-GSDP ratio is largely stable over last 15 years. State’s own tax revenue- GSDP ratio has been largely stable, roughly around 5 per cent. It indicates that there is a space for enhancing tax buoyancy. Apart from expanding the tax net, improvement in tax administration may help in this. The implementation of Goods and Service Tax (GST) may help to improve these two aspects, widening tax net and better tax administration.

3.3 Revenue receipt-GSDP ratio, in last three years, is fluctuating within the band of 11.5 to 12.5 per cent. This ratio has become 11.5 per cent in 2015-16, a decline from 12.28 per cent of 2014- 15. The decline in revenue receipt-GSDP ratio was caused due to fall in non-tax revenue-GSDP ratio. The Tax-GSDP ratio is going up continuously. It went up from 7.29 per cent in the year

2013-14 to 7.92 per cent in 2015-16. Though it is increasing, there is a need to improve the tax – GSDP ratio. We have already noted in the previous chapter that Uttarakhand is having a trade deficit with the rest of the India. The indirect taxes at value addition generally adversely affect the tax collection in compare to sales tax. However, taxation at the value addition stage reduces the space for tax avoidance, which may increase the tax revenue collection.

3.4 The indirect tax system in the country has experienced a radical change by adopting Goods and Service Tax (GST). This is aimed at uniting the market across the states, as the similar categories of goods and services will face same GST in all state. This would have impact on the 100 per cent exemption in central excise duty available to industries of Uttarakhand. This may seriously hamper further industrialization of the state. However, it has been decided that there would be levy of tax on all exempted entities under GST. The Centre or the State that gets the tax will then reimburse it to the exempted entity.

3.5 The majority of tax revenue to the Government comes from three sources- a) Taxes on Sales, Trade etc. b) State Excise and c) Stamps and Registration Fees. These three constituted roughly around 92 per cent of the State’s own tax revenue. The GST will subsume both a) Taxes on Sales, Trade etc. and b) State Excise. These two together accounts for 82-83 per cent of the own tax revenue. The state where the value addition happens more are expected to collect more tax through the GST. Since, Uttarakhand is a trade deficit state, this should be another reason to enhance the value creation in the state. This will require development of human capital and entrepreneurship. In the State’s own non-tax revenue, the economic services provide majority of the revenue.

Table 3.1: Share of Different Component of Receipt in GSDP (in %) Receipt 2001-02 2004-05 2009-10 2013-14 2014-15 2015-16

Tax Revenue 7.09 7.93 7.22 7.29 7.36 7.92 State’s Own Tax Revenue 6.14 5.83 5.03 4.91 5.06 5.05 Share in Central Taxes 0.95 2.10 2.19 2.38 2.30 2.87 Non-Tax Revenue 9.39 8.56 6.19 4.26 4.92 3.51

State’s Own Non-Tax Revenue 1.02 2.21 0.89 0.88 0.67 0.66 Grants from Centre 8.37 6.35 5.30 3.39 4.25 2.86 Total Revenue Receipts 16.48 16.48 13.41 11.56 12.28 11.49 Capital Receipts 12.78 10.20 4.44 2.85 2.99 3.78 Total Receipts 29.26 26.68 17.85 14.41 15.27 15.21

Table 3.2: Contribution of Important Components in State’s Own Tax Revenue (in per cent)

Year 2012-13 2013-14 2014-15 2015-16 State’s Own Tax Revenue Land Revenue 0.17 0.29 0.30 0.47 Stamps and Registration Fees 10.11 9.34 9.28 8.56 State Excise 17.43 17.26 18.51 17.83 Taxes on Sales, Trade etc. 66.87 66.66 65.11 65.54 Taxes on Vehicles 4.74 5.01 5.02 4.72 Others 0.68 1.44 1.79 2.88

Table 3.3: Contribution of Important Components in State’s Own Non-Tax Revenue (in per cent) Year 2012-13 2013-14 2014-15 2015-16 Interest Receipts Dividends and Profits 7.17 3.91 9.75 7.73 General Services 52.80 28.51 16.93 9.73 Social Services 5.81 8.19 10.89 14.30 Economic Services 34.22 59.39 62.42 68.24

Table 3.4: Buoyancy Estimates State’s Own Tax State’s Non Tax State’s Own Generated GSDP Gr. Year Revenue Revenue Revenue Rate Gr. Rate Buoyancy Gr. Rate Buoyancy Growth Rate Buoyancy 2012-13 7.42 7.69 1.04 34.57 4.66 12.22 1.65 2013-14P 7.25 7.36 1.01 -23.32 -3.22 2.70 0.37 2014-15Q 7.33 8.16 1.11 -18.49 -2.52 6.12 0.84 2015-16A 7.65 15.96 2.09 4.52 0.59 6.85 0.90 Average 1.31 -0.12 0.94 Note: GSDP and all revenues are calculated at 2011-12 prices. GDP deflator has been used for calculating all revenues at 2011-12 prices. Buoyancy measured as ratio between growth rate of revenues and GSDP growth rate

3.6 The average own-tax buoyancy, in last four years is 1.31. This indicate that as the GSDP growth rate becomes higher, the own-tax revenue will grow at a higher rate. However, the buoyancy of own non-tax revenue is negative. As a consequence, the average buoyancy of overall own generated revenue is less than 1, i.e. 0.94. The structure of GSDP shows that share of agriculture is declining. Generally, agriculture as a sector provides less tax revenue. This further indicates that there may exist some economic space, which are increasingly untapped for revenue collection.

3.7 The state government has controlled the expenditure substantially. In the initial years of the state the total expenditure to GSDP ratio was high. In 2001-02 the total expenditure-GSDP ratio

was 20.38 per cent. In subsequent 3-4 years it had increased, and remained high till 2006-7. There after it has declined substantially. In the year 2015-16, the ratio has become 15.93 per cent. Both the revenue-GSDP and capital expenditure-GSDP ratio has followed the similar trend of total expenditure-GSDP ratio. This trend even holds for plan expenditure-GSDP and non-plan-GSDP ratio. In the year 2015-16 the revenue-GSDP, capital expenditure-GSDP, plan expenditure-GSDP and non-plan-GSDP ratio has become 12.43 per cent, 3.50 per cent, 5.74 per cent and 10.18 per cent respectively. Generally, it is believed that cutting down the revenue expenditure is more difficult as its components consists upon salary and pension, interest payment etc. But the Uttarakhand Government has been able to control the revenue expenditure substantially.

Table 3.5: Share of Different Component of Expenditure in GSDP (in per cent) Year 2001-02 2004-05 2009-10 2013-14 2014-15 2015-16 Revenue Expenditure 18.57 20.32 15.07 10.82 12.66 12.43 Capital Expenditure 1.32 8.81 5.00 3.92 3.83 3.50 Plan Expenditure 3.70 9.51 5.39 4.00 6.32 5.74 Non-Plan Expenditure 16.18 19.61 14.69 10.73 10.17 10.18 Total Expenditure 20.38 29.12 20.07 14.74 16.49 15.93

Table 3.6 Sectoral Share in Revenue Expenditure (in per cent) Year 2012-13 2013-14 2014-15 2015-16 Organ of the State 1.3 1.27 1.63 1.33 Fiscal Services 1.49 1.46 1.89 2.24 Interest Payment and Servicing of the Debt 16.03 12.68 11.37 13.09 Administrative Services 9.86 9.58 8.5 8.38 Pension etc. 9.8 13.14 11.59 11.38 Social Services 43.67 45 43.58 43 Economic Services 14.29 12.75 18.22 17.25 Grant and the Contributions 3.56 4.12 3.22 3.32

Table 3.7 Sectoral Share in Capital Expenditure (in per cent) Year 2012-13 2013-14 2014-15 2015-16 General Services 3.38 3.46 4.21 2.58 Social Services 18.74 21.08 24.19 20.09 Economic Services 70.72 68.50 68.67 75.40 Loans & Advances 7.16 6.97 2.93 1.93

3.8 The three most dominant segments where the Government is incurring revenue expenditure are – a) Social Services, b) Economic Services and c) Interest payment and servicing of the debt. These three segments are incurring more than 70 per cent of the revenue expenditure. The revenue expenditure on social services and economic services constituted a creditable level of 58 to 60 per cent of the revenue expenditure. In the year 2015-16, these two segments constituted 58 per cent of the revenue expenditure. Further, more than 90 per cent of the capital expenditure is happening in social services and economic services. In the year 2015-16, these two segments constituted 95 per cent of the capital expenditure. This shows the developmental objective is dominating the expenditure pattern of the Government. In the year 2015-16, the interest payment and servicing of debt has incurred only 13.09 per cent of the revenue expenditure. And in last 4 years, it has reached at the most 16 per cent of the revenue expenditure. This is an indication that Government of Uttarakhand has practiced a substantive fiscal prudence.

Key Fiscal Ratios

3.9 The fiscal deficit of a particular year indicates the amount of borrowing needed by the government in that year. The fiscal deficit of the State of Uttarakhand for the year 2015-16 is 3.3 per cent of the GSDP. It is a reduction of deficit from 3.45 per cent of the GSDP in the year 2014- 15. The last three years has marked a very substantial control over fiscal deficit. In 2013-14 it was 2.04 per cent of the GSDP. In subsequent years, it has gone up but stayed at less than 3.5 per cent of the GSDP. This is a marked improvement from the early years of 2003-04 to 2005-6 that had a high fiscal deficit, e.g., in the year 2004-05 the fiscal deficit was 8.76 per cent of the GSDP. According to initial Fiscal Responsibility and Budget Management (FRBM) target, from 2013-14 onwards, the fiscal deficit was supposed to be less than 3 per cent. However, this limit on Government’s capacity to spend was relaxed due to natural calamity. From the year 2006-7, the Government has been able to reduce and control the fiscal deficit at a low level.

Table 3.8: Key Fiscal Ratios (in %) Year Fiscal Deficit (-) Primary Deficit (-) Rev. Deficit (-)/ Capital Deficit (-)/ /GSDP Ratio /GSDP Ratio GSDP Ratio GSDP Ratio 2001-02 -3.87 -0.66 -2.09 11.46 2004-05 -8.76 -5.47 -3.83 1.39 2009-10 -3.94 -2.04 -1.66 -0.56 2013-14 -2.04 -0.66 0.74 -1.07 2014-15 -3.45 -2.00 -0.39 -0.84 2015-16 -3.3 -1.67 -1.00 0.28

3.10 The primary deficit indicates the requirement of borrowing not due to the interest payment for past borrowing, in other words, deficit due to expenditure for current need over total receipt. During the period of 2002-03 to 2005-06 the primary deficit was high. There are two reasons for that- first, FRBM Act was not there and second, that was the initial years for the state which created lot of expectation from the Government. In subsequent years the primary deficit has been low, on average, less than 1 percent of the GSDP. Only in last two years, 2014-15 and 2015- 16, this has been close 2 per cent of GSDP. Due to natural calamity in the year 2013-14, the demand for state fund has increased to re-build the affected areas of natural calamity, resulted in a higher primary deficit in these last two years.

3.11 The level of fiscal deficit situation has undergone a very substantive change within the period of 2002-03 to 2008-9, when the fiscal deficit has been reduced from 8.76 per cent of GSDP to 2.41 per cent in the year 2006-7. The fiscal deficit has two components- revenue deficit and capital account deficit. Revenue deficit is the excess of revenue expenditure over revenue receipt. The expenditure incurred primarily to maintain the regular functioning of the Government are categorized as revenue expenditure. In this period, the State Government has also experienced the receiving of relatively high revenue receipt. It has helped the Government to cut the fiscal deficit without deeply cutting down the revenue and capital expenditure. Both the States own collection of taxes and share in central taxes was relatively high in compare to post 2009-10 period. However, the main reason behind substantial fall in revenue receipt from 2009-10 onwards is the close to 50 per cent fall in Grants-GSDP ratio. In last 6-7 years, the tax- GSDP ratio has fallen in compare to the period of 2005-6 to2007-8 (the period when FRBM Act was implemented) primarily due to fall in State’s share in central taxes. From the year 2008-9 onwards, the ratio of non-tax revenue to GSDP has also fallen. Despite the fall in revenue receipt- GSDP ratio in post 2009-10 the Government has managed to control the fiscal deficit by reducing both plan and non-plan expenditure to GSDP ratio. Also, it has able to reduce both capital expenditure and revenue expenditure to GSDP ratio substantially.

3.12 The revenue deficit in last 3 years, has been within the limit of 1 per cent of the GSDP. This low ratio of revenue deficit-GSDP is caused by primarily cutting down the revenue expenditure, though we are having lower revenue receipt-GSDP ratio.

Fiscal Health of the State Government

Table 3.9: Adherence to FRBM and Fiscal Health

Adherence to FRBM Targets Additional Indicators on Fiscal Health

Year Rev. Deficit (-)/ GSDP (%) Fiscal Deficit (-) /GSDP (%) Public Total Debt Interest Average GSDP Interest Debt Liability/GSDP Payment/ Cost of Growth rate – (Rs. Crore) (in %) Revenue Borrowing Rate at GSDP collected (interest Current Gr. gap by State rate) prices (in %) Achieved Target Achieved Target Achieve Target d 2013- 0.83 positive -1.99 -3.00 28,766.5 21.63 38.50 11.87 8.45 12.75 -4.30 14 2014- -0.66 positive -4.20 -3.00 33,480.28 24.13 37.20 11.88 8.42 10.05 -1.63 15 2015- -0.99 No target -3.3 No target 39,031.87 21.01 No target 11.61 8.43 12.63 -4.20 16 Source: Public Accounts, Vol I and II, 2013-14, 2014-15 and 2015-16

3.13 The state of fiscal health of the State Government is appeared to be a mixed one. The Government could not achieve the FRBM target on account of revenue deficit for both the years 2014-15 and 2015-16. And the fiscal deficit in these two years have been more than 3 per cent of the GSDP. For the third indicator, total debt liability/GSDP ratio, no explicit target was decided for the year 2015-16. In previous two years the debt liability/GSDP ratio was within the limit. However, there is an increasing trend of total debt liability. Hence, the Government may need to take some cautious measures to control its debt. However, the other indicators, like Interest payment/ Revenue receipt or Interest rate –GSDP growth rate gap shows a comfortable situation. Interest payment has been less than 12 per cent of the revenue receipt. GSDP is growing at a much higher rate than the average interest rate. These two shows there is availability of some fiscal space to the Government to spend more. However, the projection of Fourth State Finance Commission about the future financial health of the State Government is not that encouraging. It argues that there will be projected deficit Rs. 4204.72 crore in 2017-18, Rs.5412 Crores in 2018- 19, Rs 7061.5 crores in 2019-20 and Rs.8973.32 crores in 2020-21. Hence, the projected deficit will grow with annual average of 22.37 per cent. And the commission has projected the average annual GSDP growth rate at 17.04 per cent.

Table 3.10: Trends in Public Debt

Public Debt Percentage Public Account Percentage Total Liabilities Percentage Year (in Rs. Crore) to GSDP (in Rs. Crore) to GSDP (in Rs. Crore) to GSDP 2011-12 1,73,04 15 63,06 5 2,36,10 20 2012-13 1,87,99 14 67,41 5 2,55,40 19 2013-14 2,13,55 14 74,12 5 2,87,67 19 2014-15 2,50,35 15 84,46 5 3,34,81 20 2015-16 2,98,36 16 91,46 5 3,90,32 21 Source: Accounts at A Glance, CAG Uttarakhand, 2015-16

3.14 In last 5 years, the State Govt. has increased financial assistance to local bodies and others. During the past five years, Grants-in-Aid to local bodies etc. increased from Rs. 3,78.79 crore in 2011-12 to Rs. 7,66.57 crore in 2015-16; with an average annual growth rate of 20.04 per cent (calculated at current prices). The share in the grants for Municipal Corporations shows a steady increase in last 5 years. But for other categories of local government the share is fluctuating. However, on average, the urban local bodies have received 51.1 per cent of the money transferred by the State Government in last 5 years. And the rural local bodies have received on average 48.90 per cent of the money transferred by the State Government in last 5 years.

3.15 The Fourth finance commission has recommended that 11 per cent of States own tax revenue as the devolution amount. The urban local bodies should be given 55 per cent of divisible pool and Panchayati Raj Institution i.e. rural local bodies should be given 45 per cent of the divisible pool. The commission has further recommended that out of 55 percentage point of urban local bodies, 22, 24.75 and 8.25 percentage point should go to the Municiplal Corporation, Municipalities and Nagar Panchayats respectively. And out of 45 percentage point of rural local bodies, 15.75, 29.5 percentage point should go to the Zila Panchayat and others respectively.

Table 3.11: Resources transferred by the State Government to Local Bodies (in Rs.Crore, and figure in parenthesis is percentage share) Share of Share of Rural Municipal Nagar Urban Local Zila Local Year Corporation Municipalities Panchayats Bodies Panchayat Others Bodies Total 50.05 1,02.23 61.67 1,41.37 2011-12 (13.21) (26.99) 23.47 (6.20) 46.40 (16.28) (37.32) 53.60 3,78.79 64.68 1,53.07 88.53 77.94 1,12.65 2012-13 (13.02) (30.81) (17.82) 61.64 (15.69) (22.67) 38.36 4,96.87 1,08.39 1,29.85 82.95 1,27.28 2,19.93 2013-14 (16.22) (19.43) (12.41) 48.05 (19.04) (32.90) 51.95 6,68.40 1,19.97 1,36.24 1,23.96 1,08.40 1,92.70 2014-15 (17.61) (20.00) (18.20) 55.80 (15.91) (28.29) 44.20 6,81.26 1,17.63 1,37.11 79.37 97 3,35.46 2015-16 (15.34) (17.89) (10.35) 43.59 (12.65) (43.76) 56.41 7,66.57 Average Share 15.08 23.02 12.99 51.10 15.91 32.99 48.90

Chapter 4

The Financial Inclusion

4.1. Broadly speaking, financial inclusion means making formal financial services accessible to all, especially the poor and the disadvantaged groups of the society. In India, nationalisation of banks in 1969 marked the beginning of the process of financial inclusion. One of the primary objective of nationalisation was to spread bank branches in the rural and geographically remote areas. Following this, India adopted a number of other strategies to promote financial inclusion. They include setting up regional rural banks (RRBs), mandatory priority sector lending (PSL) by commercial banks, Lead Bank Scheme, introduction of no-frill account, linking self-help groups (SHGs) to banks, kisan credit cards, provisioning of doorstep delivery of financial services through approved banking correspondents and so on.

4.2. A substantial number of banks are operating in Uttarakhand. Total number of bank branches, as on Sept 2016 was 2215. The number of branches are going up from 2014 onwards, with annual average growth rate of 6.40 per cent. 50.02 per cent of the branches are categorized as rural. Share of semi-urban branches is 30.25 per cent and the share of urban branches is 19.73 per cent. In the year 2016, the average population per branch was approximately 4900. Table 4.1: Distribution of Bank Branches in Uttarakhand

Share in Semi Rural Urban Total Urban Banks Branches Lead Bank 42.33 23.88 30.66 34.45 Total Public Sector 61.55 69.10 75.06 66.50 Commercial Bank Regional Rural Bank (RRB) 20.76 6.42 3.20 12.96 Cooperative Bank 13.72 10.30 9.61 11.87 Pvt. Commercial Bank 3.97 14.18 12.13 8.67 Source: Agenda Book of 59th SLBC Meeting

4.3. Total 41 banks, including 14 private and 24 public sector commercial banks are operating in the state. The lead banks are - a) State Bank of India b) Punjab National Bank and c) Bank of Baroda. These three banks together have little more than one-third, i.e., 34.45 per cent of total branches in the state. Two-third of the branches in Uttarakhand are of the public sector commercial banks. Private banks constitute only 8.67 per cent of total number of branches. And roughly one-fourth of the branches are that of RRBs and Cooperative Banks. The three lead banks and RRB have the dominant role in the rural banking. 42.33 per cent of rural branches are of the three lead banks and RRB contributes 20.76 per cent of the rural branches. The private banks

have only 3.97 per cent of the rural branches. However, In urban and semi urban areas more than 12 per cent of the branches are of private sector banks, the public sector commercial banks have around 70 per cent of the branches. 4.4. The state is also experiencing the expansion of the banking services through ATMs, Business Correspondence and information kiosk. The number of ATMs have increased from 1,576 in March, 2014 to 2,210 in September 2016 with average annual growth rate of 16.09 per cent, which is much higher than the expected average annual growth rate of population. The number of Business Correspondents have also increased from 771 in March 2014 to 1499 in September 2016 with average annual growth rate of 37.76 per cent. Similarly, during this period banks have opened more than 600 information kiosks. However, banks have recruited less number of Business Facilitators. Table 4.2: State of Various Avenues to Provide Banking Service in Uttarakhand

No. of 31st March 2014 31st March, 2016 30th Sept, 2016 ATM 1,576 2,282 2,210 Business Correspondents 771 1,541 1,499 Business Facilitators 175 111 112 SME Branch 22 21 20 Information Kiosks 53 542 676 Source: Agenda Book of Various State Level Banker’s Committee (SLBC) Meeting

4.5. As on September 2016, the total loan advanced by the banks in the State was Rs. 56, 343 crore. The stock of loan amount is growing per year. In the year 2014-15, it has grown at the 3.44 per cent and in the year 2015-16, it has grown at the rate of 9.11 per cent. For both the years, the growth rate in loan is less than the GSDP growth rate at current prices. The agriculture sector has received 18.21 per cent of total loan disbursed till September 2016. The MSME sector has received 21.06 per cent of the total loan disbursed during the same period. And the priority sector has received the 49.74 per cent of the total loan disbursed. The credit flow to agriculture is only 2 per cent of the agricultural output in the year 2014-15 and is only 4 per cent of the agricultural value addition in the year 2015-16. And non-farm credit is only 0.96 per cent of the non-farm sector value addition in 2014-15 and in 2015-16, it is only 2.43 per cent. Hence, the flow of credit from the banking sector is substantially low in the state. 4.6. The total deposit collected by banking sector is much higher than the loan advanced to the state. By the end of September 2016, the total stock of deposit collected by the state was Rs.98, 459 crore. In March 2016, the stock of deposit was Rs.91,463 crore. On the other hand, the stock of credit was Rs. 56,343 crore by the end of September 2016, which is only 57.22 per cent of the total deposit collected. In March 2016, the credit-deposit ratio was 59.22 per cent. Since 2013- 14 this ratio is continuously declining. The primary reason is that the growth rate of credit provided is lower than the growth rate of deposit collected. However, the positive development

is that the credit-deposit ratio for rural Uttarakhand is showing an increasing trend. So, increasingly, as compared to deposit collection, more credit is flowing into the rural economy. Whereas, in semi-urban and urban areas the credit flow is declining in comparison to deposit collection. It is an indication that expenditure in semi-urban and urban area is less than it’s potential, unless, credit is flowing from the financial institutions located outside the state or it is a typical remittance economy. But rural Uttarakhand, largely consists of hills experiencing high migration, is expected to receive remittances more than the urban or semi-urban region. It may be an indication that local demand for credit is less. Hence, there is a need to invest for building infrastructure in urban and semi-urban areas and build business environment such that mass entrepreneurships develops.

Table 4.3: Sectoral composition of Loan Disbursement between 1st April, 2016 to 30th Sept, 2016

Total (in Rs. Lakh) Share in Total Loan (in per cent) 1) Agriculture 1,025,800.00 24.9 Direct 8,39,300.00 20.37 Indirect 1,86,500.00 4.53 2) Industries (SME) 4,88,100.00 11.85 3) Services (SME) 6,98,700.00 16.96 4) Industries (Non Priority Sector) 50,498.63 1.22 5) Services (Non Priority Sector) 88,208.25 2.14 6) Personal 1,93,520.92 4.69 7) Total Advances within the State 41,19,460.00 Source: SLBC 59th Agenda book

4.7. The pattern of the first half of the year 2016-17 shows that only 4.69 per cent of the loan that are disbursed by the banking sector within the state are personal loan. So roughly 95 per cent of the loan has been disbursed for productive purposes. Agriculture has received close to 25 per cent of the loan and roughly one-fourth of it went as term loan, which is expected to be used for capital formation. Roughly, 80 per cent of agricultural loan has been direct loan. In agriculture, horticulture has received 35.93 per cent of the loan and within horticulture, the floriculture has received more than 85 per cent of it. And small and micro enterprises has received 28.81 per cent of the total loan. Within it, 41.13 per cent went to industries and 58.86 per cent went to services. In the non-priority sector, industries has received only 1.22 per cent and services has received 2.14 per cent of the total loan advanced within the State. This sectoral composition of loan disbursement indicates that there is a complete mismatch between the sectoral composition of GSDP and the sectoral composition of the bank loan disbursed within the state. Industries provide more than half of the GSDP and has received less than 15 per cent of the bank loan provided within the state. The service sector provides more than one-third of the GSDP and has received less than 20 per cent of the bank loan that has been disbursed within the state. It is most likely

that large amount of capital is coming from outside the state to meet the requirement of capital in industries and services, particularly in the larger enterprises. 4.8. According to the 2011 census, 80.71 per cent of the household in the state has availed banking services. In rural Uttarakhand this ratio is 80.26 per cent and for the urban area this ratio is 81.80 per cent. Within SC-ST population the access to banking service is less than the state average. Among SC-ST, 75.40 per cent households has availed banking services. According to the survey conducted under PMJDY, as on 31st March 2015 only 1.74 per cent of households did not have a bank account. In rural Uttarakhand, 1.82 per cent of the households do not have the bank account. And in urban Uttarakhand, 1.63 per cent of the households do not have the bank account. So, in last four years a substantial progress in this regard has been noticed.

Table 4.4: State of Accessing Banking Services by Households in Uttarakhand Total Number of Total number of households Total number of SC-ST households Households availing banking services availing banking services

19,97,068 16,11,901 3,32,138 Source: Population Census, 2011 4.9. According to the 59th agenda book of SLBC, in last 3 years, more than 20 per cent of the total bank credit advances within the State has gone to the weaker section of the society. And every year there is a marginal increase in this share. In last 3 years, women has received roughly around only 5 per cent of the loan advanced within the State. From 2016 onwards share in loan receipt by minorities showing a jump of 6-7 percentage point.

Table 4.5: Share of Economically Deprived Sections in Credit Disbursement by Banks in Uttarakhand As on Weaker Section Women Minorities

31st March, 2014 20.41 5.29 7.48

31st March, 2015 21.43 4.60 9.01

31st March, 2016 21.54 5.50 15.71

31st Sept, 2016 22.34 5.24 15.56

Note: The numbers in the table are in per cent Source: Agenda book of 59th SLBC Meeting

4.10. To facilitate financial inclusion, apart from enhancing the banking network through establishment of co-operative and regional rural banks, expansion of branch, ATM and Bank Correspondent-Facilitator (BC-BF) network, the banking system has two very old mechanisms- first, mandatory priority sector lending and second, lead bank scheme. Post 1991, along with the above mentioned mechanisms, attempts to increase financial inclusion have been made through

- a) formation of SHGs and their linkage with banks, b) opening of Zero balance or no-frill accounts, and c) Formulation of various scheme providing cheap loan, insurances products at a subsidized price and d) payment under various social welfare schemes through the formal banking system. 4.11. The lead banks of the state prepare annual credit plans for priority sector lending with targets for every banks that are functioning in Uttarakhand. The annual credit plan target for the priority sector lending is Rs. 16, 38, 482 lakhs for the year 2016-17. 52.26 per cent of it is targeted for agriculture. 27.17 per cent of it is targeted for industries and services. And 20.57 per cent of it has been targeted for other priority sector lending, which includes housing loan and education. The first 6 months of the year 2016-17 show that more than half (52 per cent) of the target has been achieved in industries and services. In other priority sector, the banks has provided 47 per cent of the targeted loan. Whereas, in agriculture only one-third of the target has been achieved.

Table 4.6: Loan Disbursed under various scheme to finance Micro, Small and Medium Enterprises (Rs. Lakhs) Sl. April- Scheme 2013-14 2015-16 No. Sept.2016 Prime Minister Employment Generation 1 4,126.82 2,923.85 1,500.58 Programme (PMEGP) Veer Chandra Singh Garhwali Paryatan 2 2,756.92 2,903.72 1,636.21 Yojana 3 Advances to Handloom Weaver 66.17 209.62 64.65 4 Differential Interest Rate 594.94 808.15 342.00 Special Component Plan for SC,ST and 5 949.69 956.24 536.17 Minority National Rural Livelihood 6 NA 418.91 197.14 Mission(NRLM) National Urban Livelihood Mission 7 NA 421.59 503.58 (NULM) 8 Progress of MUDRA NA 138,641.28 33,564.97 9 Stand-Up India Program NA 1,450.34 2,586.63 9 Joint Liability Group 2,812.8 5,155.51 2,642.60 Progress under SHG's Linkage with 10 1,082.47 1,951.99 1,637.00 Banks Source: Agenda Book of various SLBC meeting

4.12. To encourage the demand for credit from the unorganized sector various scheme and action has been adopted. One such initiative is Kisan Credit Card for providing easy access to credit. The total number of Kisan credit cards issued in the State since its inception is 10,79,385 and the total loan outstanding is Rs. 8,79,114.08 lakhs. In the first 6 months of the year 2016-17 total number of Kisan Credit Card issued was 208, 817 and the allocated credit amount was Rs.

2,11,358.15 lakhs. The other agriculture related financial services consists of horticulture financing and crop insurance among others. 4.13. To encourage demand for credit from micro, small and medium enterprises, various schemes have been introduced. These are: 1) Prime Minister Employment Generation Programme (PMEGP), 2) Veer Chandra Singh Garhwali Paryatan Yojana, 3) Advances to handloom weaver, 4) Advances under differential Interest rate. 5) Special component plan (SC,ST and Minorities) and tribal sub plan 6) National Rural livelihood Mission (NRLM), 7) National Urban Livelihood Mission (NULM) 8) Mudra Loan 9) Stand-Up India Program 10) Disbursement to Joint Liability Group and 11) Linkages between banks and Self Help groups. The amount of loan disbursed in last 3 years under these schemes are listed in Table 4.6.

4.14. A Self Help Group is a village based financial intermediary committee usually consist of 10- 20 local men or women. It can be a group of micro-entrepreneurs, with homogeneity in social and economic backgrounds. The members would have voluntarily come together to save regular small sums of money, mutually agreeing to contribute to a common fund and to meet their emergency needs on the basis of mutual help. They pool their money to become financially stable, taking loans from the money collected by that group and making everybody in that group self-employed. Many SHGs borrow from banks once they have accumulated a base of their own capital and have established a track record of required payments. The total number of SHGs as on March 2014 was 44, 429. A satellite accounting survey was conducted on 1307 SHGs indicate that an overwhelming majority of SHGs received loan after the year of their formation. The survey found that only 9% of reported SHGs have received loan during the year of their formation itself while 90% after the year of their formation. Further, a miniscule 1% of the surveyed SHGs reported that they have not received any loan. The same survey reports, as presented in Table 7, that out of 1307 SHGs, 1299 SHGs reported having received loan. Taken together, on an average each SHG received a loan of Rs. 1,10,662/-. However, district-wise wide variations were reported in regard to the average amount of loan received by them. While in 5 districts, namely, Almora, Champawat, Nainital, U.S. Nagar and Haridwar, the average amount of loan received by the SHGs ranged between Rs. 1 lakh to 3 lakhs, in rest of the districts it was reported to be far less than Rs. 1 lakh and as low as Rs. 23,392/- in case of district Uttarkashi. So despite the variation in average amount of loan received (may be because of the variations in amount of loan demand), almost 99 per cent of SHGs have got loan, generally after one year of its formation. With the availability of JAM platform, this time gap may be reduced.

Table 4.7: District-wise distribution of surveyed SHGs by the amount of loan received

Whether received Total amount of loan received Average amount of Sl. District loan? by SHGs in the Dist. loan received by SHGs Yes No (In Rs.) (In Rs.) 1 2 3 4 5 6 1 Uttarkashi 124 1 29,00,600 23,391.94 2 Chamoli 112 2 48,55,600 43,353.57 3 Rudraprayag 83 0 46,46,450 55,981.33 4 Tehri 129 0 92,44,000 71,658.91 5 Dehradun 114 0 71,07,650 62,347.81 6 Pauri 118 0 83,81,000 71,025.42 7 Pithoragarh 85 0 73,21,000 86,129.41 8 Bageshwar 77 1 47,46,600 61,644.16 9 Almora 86 3 1,13,41,000 1,31,872.09 10 Champawat 77 0 1,41,05,600 1,83,189.61 11 Nainital 109 0 2,71,59,000 2,49,165.14 12 U.S. Nagar 106 0 3,32,32,000 3,13,509.43 13 Haridwar 79 1 87,10,000 1,10,253.16 Total 1299 8 14,37,50,500 1,10,662.43 % in Total 99% 1% Source: Satellite Accounting Survey

4.15. Apart from providing credit, the other aspect of financial inclusion is to provide other financial services like insurance, having bank accounts, receiving payments through banking system etc. To achieve them the steps has been taken like - increasing number of bank branches, recruitment of Bank Correspondent, opening of zero balance or no-frill account, providing insurance services etc. The JAM platform has been planned to provide more comprehensive financial inclusion. The main component of it is the Pradhan Mantri Jan Dhan Yojana (PMJDY) linked with Aadhar and mobile phone to solve the problem of identification of individual customer. Under this scheme along with opening of bank account with no minimum balance and Rupay card, the customer get insurance cover for both accident and death, access to pension and insurance products and overdraft facility. Under PMJDY the total number of bank account opened in Uttarakhand is 20,57,528. Of these, 13,42,245 bank accounts were open in rural Uttarakhand and the remaining 7,15,283 are opened in urban area. 19.33 per cent of total bank accounts under PMJDY are zero balance account. Total number of RuPay card issued is 17,35,519.

Table 4.8: Number of Accounts, Deposits and RuPay Card Issued under Pradhan Mantri Jan Dhan Yojana (PMJDY) in Uttarakhand (As on 12.10.2016)

State No. of Accounts Deposit Aadhar Zero RuPay Card Rural Urban Total (Rs. In Seeded Balance Issued Cr.) Accounts Uttara- 13,42,245 7,15,283 20,57,528 586.84 9,48,508 3,97,721 17,35,519 khand India 15,36,12,34 9,69,04,1 25,05,16,5 44,480.1 1,31,564,10 5,89,57,43 1,92,176,67 8 63 11 3 4 7 9 Source: IndiaStat.com

4.16. According to the SLBC Agenda Books, the total number of No-Frill account on 31st March 2015 was 21,38,845 with an average deposit of Rs. 2,214. By the end of March 2016 the number of No-Frill account was 25,46,929 with average deposit of Rs. 3, 527. Hence, the number of No- Frill account has gone up with an annual growth rate of 19.07 per cent. Table 4.9: CRISIL’s Assessment of Financial inclusion in Uttarakhand Inclusix Score Rank among States and Union Territories Rank among States 2009 45.6 12 9 2010 48.5 12 9 2011 50.5 12 9 2012 52.4 12 9 2013 59.3 13 10 Source: CRISIL Inclusix Report, various Issues

4.17. To measure the level of financial inclusion, in last one decade few index of financial inclusion has been constructed. Most of the index of financial inclusion, are computed based on supply side information on financial services (for example, the number of bank branches per lakh population in a district) and hence, fail to capture the demand-side aspects of inclusion. Further, it suffers from an overestimation of financial inclusion due to multiple bank accounts held by the same individual in different commercial banks. And, merely giving access to financial services does not always result in use of such services. There are substantial number of dormant accounts in India. Further, many accounts under PMJDY have been largely inactive. CRISIL has prepared an index of financial inclusion, named Inclusix, from 2009 onwards, primarily using three dimensions- branch penetration, deposit penetration and credit penetration. All of them are supply side factor. If the value of the index Inclusix is greater than 55, the level of financial inclusion is high. The level of financial inclusion is above average if the value of Inclusix lies within 40.1 to 55. The level of financial inclusion is below average for the values of Inclusix is lying within 25 to 40. And it is low for the value of Inclusix less than 25. According to this index, the level of financial inclusion in Uttarakhand is increasing every year from 2009 onwards. During the years

of 2009 to 2012, the level of financial inclusion was above average. From the year 2013 onwards, it has reached at the stage of high level of financial inclusion surpassing the boundary of Inclusix at 55. However, in ranking among the various State and Union Territories, it’s position has been lowered by one.

4.18. The calculation of financial inclusion index by Mukhopadhyay (2016)i has used both demand and supply side dimensions. The dimensions it has used are- (i) accessibility measured by proportion of adults who reported having access to a bank account (through own account or through an account of another person); (ii) usage measured by proportion of adults who ever used bank accounts for any financial activity; (iii) availability measured by proportion of adults who had access to a bank branch/ATM/Eko counter/others within one kilometer distance from the place of stay. Out of these three dimensions, the first two are from the demand side and the third one is of supply side. According to this index, the rank of Uttarakhand among the states in the year 2013 is 7, which two position higher than the CRISIL index. However, the same study also asserts, using micro-data available from Financial Inclusion Insights tracker Survey, Bharat Ek Khoj, conducted by Inter Media, that both poor and non-poor in Uttarakhand (more than 97 per cent of the borrowing) borrows mainly from friends and relatives. Both the formal and informal credit market do not provide them loan. This may explain at least a part of the earlier noticed mismatch between sectoral composition GSDP and credit flow from banks and also the mismatch between growth GSDP and formal sector credit. The under developed nature of this credit market also indicate towards inadequate development capitalist economy within the state. At all India level, 10 per cent of poor’s borrowing comes from banks and micro finance institution. For non-poor this share is roughly around 21 per cent. The informal credit market provide 16 per cent of the credit need of the poor and 14.81 per cent of the credit need of non-poor. Friends and relative provide 68.54 per cent of loan requirement of the poor and 59.17 per cent of the loan requirement of the non-poor.

Table 4.10: Proportion of Poor and Non-Poor (in per cent) who borrowed from Different Sources in Uttarakhand Sources of Borrowing Uttarakhand All India Poor Non-Poor Poor Non-Poor Bank 1.18 1.85 8.82 19.26 MFI 0.00 0.00 1.19 1.92 Savings Group 0.00 0.00 3.98 3.61 Moneylender 0.41 0.00 12.32 11.20 Friends and Relatives 97.33 97.18 68.54 59.17 Gold 0.19 0.86 0.82 2.46 Sources: Table 4, Mukhopadhyay (2016)

4.19. In Uttarakhand, access to formal financial system is high in eight of the 13 districts in the year 2013. Even in the other four districts the value of Inclusix score is more than 50. Only for the district of Uttarkashi, this score is 49.8. The level of financial inclusion is highest in Dehradun,

followed by Pithoragarh and Udham Singh Nagar. And the level of financial inclusion is relatively low in Uttar Kashi, Tehri Garwal, Bageshwar, Chamoli and Champawat.

Table 4.11: CRISIL Inclusix Scores for Different Districts in Uttarakhand Districts 2010 2011 2012 2013 Almora 51.0 53.6 55.6 59.6 Bageshwar 42.2 44.8 47.6 51.1 Chamoli 45.1 46.5 50.4 53.8 Champawat 40.8 42.1 47.2 53.0 Dehradun 64.0 64.3 63.4 66.0 Pouri Garhwal 57.7 58.4 57.1 59.3 Haridwar 41.7 43.7 45.7 56.8 Nainital 46.1 48.3 50.3 56.6 Pithoragarh 53.0 56.7 59.4 64.5 Rudraprayag 43.8 47.9 53.8 57.6 Tehri Garhwal 41.9 44.0 46.5 50.4 Udham Singh Nagar 44.1 47.1 50.2 64.0 Uttar Kashi 37.0 41.5 44.9 49.8 Source: CRISIL Reports on Inclusix, 2015

i Mukhopadhyay J.P. (2016), Financial Inclusion in India A Demand-Side Approach, EPW, Vol. LI No. 49, Pp-46-54

Chapter 5 Agriculture and Horticulture and Food Security

1. Agriculture: 5.1. The Uttarakhand Government is putting through efforts to revitalize agriculture and allied activities in the State and especially to rejuvenate hill agriculture. Of total geographical area of 53483 sq. kms. 86 percent is hilly area. The State has 69.77 percent rural population of which 67.90 percent are resident of the hill districts based on Census 2011. Various schemes have been implemented to make agriculture and allied activities attractive and financially rewarding without undermining the fact that the same needs to be environmentally sustainable. Hill agriculture is mostly of the subsistence type, rainfed and depends on suitable weather for good yields. The State Government and its Departments are aimed at changing the outlook of the sector and make it market-oriented agriculture.

5.2. The Agricultural Department is the main authority working towards the growth and development of the agricultural sector in the state. The Directorate of Agriculture and the Directorate of Horticulture has been closely monitoring the growth of the primary sector which employs directly or indirectly close to 70 percent of the state population (around 45 percent of the main workforce of the state are farmers and cultivators in the state based on Census 2011). In recent times, the government departments have played a significant role in implementing both Central and State policies targeted towards fostering growth of the agricultural sector. However, the geography of the state and various natural challenges does hinder and/or affect the outcome of various policies.

Graph 5.1. GSDP from Agriculture and Allied Sector at Constant (2004-05) Prices (in Lakh Rupees)

8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0

Agriculture and Allied Activities GSDP

Source: Agricultural Statistics of India 2015 and EPW Research Foundation

5.3. In 2013-14, the net sown area was 701.03 thousand hectares which has fallen to 700.17 thousand hectares in 2014-15. The contribution of agriculture in Gross State Domestic

Product (GSDP) have been falling although the GSDP and GSDP per-capita in the state rising almost at a steady state. At constant 2004-05 prices, the gross output from agriculture in 2004-05 was 552040 lakh rupees, which in 2014-15 rose marginally to 730168 lakh rupees. However, the growth in the other sectors was much faster resulting in a net reduction in the share of agriculture in state income from 22.71 percent in 2004-05 to 10.32 percent in 2014- 15 (quick estimates). It is projected to further decrease to 10.10 in 2015-16 (advanced estimates). The growth of GSDP and the income from agriculture and allied activities is presented in figure 5.1. In figure 5.2, the fall in the share of agriculture in the state income is presented.

Graph 5.2 Share of Agriculture in GSDP 25

Share (in %)

Source: Directorate of Economics and Statistics Uttarakhand 2013-14 estimate is provisional, 2014-15 is quick estimate and 2015-16 is an advance estimate

2. Land Utilisation and Distribution: 5.4. As per the Government records, out of total 59.93 lakh hectares geographical area of the state, the net cropped area was only around 7 lakh hectares in 2014-15 accounting to 11.68 percent of the total geographical area. It is estimated that over 55 percent of cultivated area is rainfed with frequent moisture stress to crops. The soils are low to medium in fertility status. In 2014-15, around 63 percent of the area was under forest cover, around 4 percent under non-agricultural use, another approximate 4 percent was barren and uncultivable land and 5 percent was cultivable waste land. Permanent pastures, grazing land and miscellaneous tree crops constituted almost 10 percent of the total geographical area. It is important to note that the current fallow and other fallow land area has marginally increased in the state. The area sown more than one has also decreased. It used to be 7.5 percent in 2009-10 and was reported to 6.6 percent in 2013-14 of total geographical area. In table 5.1., the details pertaining to land utilization in the state is presented.

Table 5.1. Classification of Total Geographical Area (in lakh Ha.) 2010-11 2011-12 2012-13 2013-14 2014-15 Total Reported Area 56.73 56.73 56.73 59.92 59.93 Forest Area 34.85 34.85 34.85 38.00 38.00 Barren and Unculturable land 2.25 2.25 2.28 2.28 2.28 Land non-agricultural uses 2.18 2.18 2.21 2.22 2.24 Culturable Waste Land 3.10 3.11 3.15 3.17 3.17 Permanent Pastures & Other Grazing Land 1.99 1.99 1.92 1.92 1.92 Land under Misc., Tree Crops and Groves 3.86 3.86 3.90 3.89 3.88 Current Fallow 0.43 0.48 0.51 0.57 0.57 Fallow land other than Current Fallow 0.84 0.87 0.86 0.86 0.86 Net Area Sown 7.23 7.14 7.06 7.01 7.00 Area sown more than once 4.47 4.18 4.18 3.98 NA NA: Not Available Source: Directorate of Economics and Statistics Uttarakhand (various issues) Uttarakhand at a Glance

5.5. The distribution of land holdings according to 2010-11 Agricultural Census show that 912 thousand farm holdings operating 815 thousand hectares. The average holding size in the State is less than 1.00 hectare (on an average 0.89 hectare). Moreover, 90.89 percent of the total land holdings are Small and Marginal holdings. The rate at which such holdings are increasing is the state is much higher than the other types of land holdings. The distribution of land holdings in the State is depicted in table 5.2.

Table 5.2. Distribution of Land Holdings Size of Holdings Category No. of Area Av. Size of Holding % % (hect.) (Farmers) Holdings (hect.) (hect.) 36.2 Below 1.0 Marginal 6,72,138 73.65 2,95,556 3 0.44 27.6 1.0-2.0 Small 1,57,330 17.24 2,25,124 0 1.43 21.5 2.0-4.0 Semi-Medium 64,781 7.10 1,75,381 0 2.71 11.5 4.0-10.0 Medium 17,302 1.90 94,220 5 5.45 10.0 - Above Large 1,099 0.12 25,401 3.11 23.11

Total 9,12,650 100 8,15,682 100 0.89 Source: Agriculture Census 2010-11

5.6. A further analysis of the district level data on land distribution would reveal that in the hill districts the small and marginal holdings are about 93.02 percent of the total operational area and in the plains this proportion is 84.82 percent. The proportion of semi-medium, medium and large farm holdings in the plains to total operational area is marginally more in the plains (15.98 percent compared to 6.98 percent in hills). Overall, there has been a decrease (-0.97 percent) in the cropped area reported in Agricultural Census 2010-11

compared to the Agricultural Census of 2005-06. In the two plain districts of Haridwar and Udham Singh Nagar, the area has increased but in 9 out of 11 hill districts, the area has decreased. In Table 5.3, the district level land distribution as reported in the Agricultural Census 2010-11 is presented. The change reflected in column 7 is the change in total size of operational holdings compared to the previous Agricultural Census 2005-06. Furthermore, the Agricultural Census 2010-11 reports that the cropping intensity in the State was 1.66 percent (in Agricultural Census 2005-06 intensity was 1.61 percent).

Table 5.3. District level land distribution as per Agriculture Census 2010-11 % Below 4.0- 10.0 - 1.0-2.0 2.0-4.0 Total chang 1.0 10.0 Above e Semi- Mediu Marginal Small Medium m Large 1 2 3 4 5 6 7 Uttarkashi 27997 6883 3816 824 16 39536 4.05 Chamoli 33525 7486 3220 665 19 44915 -6.32 Tehri Garhwal 64922 16449 4480 564 18 86433 6.49 Dehradun 49354 7550 4450 1455 111 62920 -8.84 Pauri Garhwal 52999 21746 8022 1600 62 84429 -4.27 Rudraprayag 19159 5980 1769 184 1 27093 -8.86 Pithoragarh 70574 7881 1335 55 1 79846 -0.61 Almora 82043 22451 4570 201 3 109268 -4.1 Nainital 34234 9637 5069 1556 167 50663 -2.63 Bageshwar 48856 4479 503 30 1 53869 -3.01 Champawat 27390 6517 2113 244 10 36274 -2.46 Hills Total 511053 117059 39347 7378 409 675246 -2.57 Haridwar 96548 20058 10630 3131 178 130545 4.84 Udham Singh Nagar 64537 20213 14804 6793 512 106859 2.8 Plains total 161085 40271 25434 9924 690 237404 3.91 Uttarakhand 672138 157330 64781 17302 1099 912650 -0.97 Source: Directorate of Economics and Statistics Uttarakhand

3. Monsoon 2015:

5.7. The performance of agriculture in Uttarakhand is closely related to the performance of monsoon. Timely rainfall is important and helps in commencement of land preparation and sowing of early Kharif crops especially in the hill districts where agriculture is rainfed. Therefore, rainfall variability does adversely affect agricultural productivity and allied activities. During the monsoon season of 2015 (June-September) the rainfall received in the

state was Normal in Bageshwar, Chamoli, Champawat and Nainital. In the remaining districts i.e. Almora, Dehradun, Pauri Garhwal, Tehri Garhwal, Haridwar, Pithoragarh, Rudraprayag, Udhamsingh Nagar and Uttarkashi, the rainfall received was recorded to be deficient. For Uttarakhand as a whole, the total rainfall during the entire monsoon season was -28 per cent below the average rainfall during the season. Figure 5.3 shows the monthwise rainfall in the state and also presents a comparison between actual rainfall in 2015 with the average rainfall. It is clear from the graphs that during the pre-monsoon season, the state received excess rainfall but low post-monsoon rainfall may have direct impact on food availability.

Graph 5.3. Month-wise Normal and Actual Rainfall of the State in 2015

450 419.38 400 417.42 337 350 305.3 300 250 201.68 200 187 172.97 150

Rainfall Rainfall mm. in 127.3 100 59.89 51.9762.5 43.52 49 52.6 54.4 57.3 38 34.98 6.78 21.42 50 28.52 16.6 2.3 7.2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Actual Normal

Source: Various issues of Rainfall Statistics of India, Indian Meteorological Department (IMD)

5.8. For the entire year 2015 as a whole rainfall received in Uttarakhand was Normal in the districts i.e. Bageshwar, Chamoli, Champawat, Haridwar, Nainital and Uttarkashi. The rainfall received was deficient in the districts i.e. Almora, Dehradun, Pauri Garhwal, Tehri Garhwal, Pithoragarh, Rudraprayag and Udhamsingh Nagar. The district level information pertaining to rainfall in different season is given in table 5.4.

Table 5.4. District-wise, Season-wise monthly Rainfall and Departure (in mm): Year 2015 Uttarakhand Winter % Dep Pre- % Dep Monsoo % Post % Annu % Monsoon n Dep Monsoon Dep al Dep Almora 71.5 -23 196.2 64 630 -27 18.7 -78 916.4 -21 Bageshwar 87.3 -6 215.3 80 802.4 -7 40 -54 1144.9 -1 Chamoli 180.6 34 197.1 1 939.9 9 18.9 -76 1336.6 5 Champawat 105 27 207 83 1062 -20 16.3 -85 1390.3 -14 Dehradun 51.2 -49 229.7 84 1268.1 -30 33.8 -65 1582.7 -25 Pauri 46.7 -39 142.1 52 778.6 -36 14.2 -82 981.5 -33 Garhwal Tehri 121.3 14 224.3 56 562.5 -46 14.7 -83 922.7 -33 Garhwal

Haridwar 41.7 -39 194.7 202 761 -21 21.4 -56 1018.8 -11 Nainital 108.3 24 321.1 184 1268.8 -12 39.7 -62 1737.9 0 Pithoragarh 167.6 56 289.6 41 827.5 -51 32.9 -66 1317.5 -37 Rudraprayag 149.7 1 226.4 -3 1016.4 -39 23.9 -75 1416.4 -34 US Nagar 44 -10 121.4 111 730.4 -35 4.2 -95 900 -32 Uttarkashi 154.7 8 238.1 1 861.4 -25 41 -58 1295.2 -20 Source: Rainfall Statistics of India, IMD 2015. Note: Normal: -19 % to + 19 %; Excess: 20% and above; Deficient: -20 % to – 59 %; Scanty: -60 % to – 99 %.

5.9. For Uttarakhand as a whole rainfall received was 21 per cent below average annual rainfall. Moreover, it was reported that the annual rainfall in 2014 was lower compared to that in 2013. Therefore, it its evident that there is an overall decreasing trend in rainfall in the State.

4. Agricultural Productions – Performance and trends:

5.10. Wheat and paddy are major crops sown in 38 percent and 29.17 percent of the total food grains sown in the state respectively. Area under food grains in 2005-06 was 970.14 thousand hectares and in 2014-15 it was 883.93 thousand hectares. The provisional estimates for 2015-16 indicate a further decrease in the area to about 864 thousand hectares. However, productivity has increased from 16.39 quintal per hectare in 2005-06 to 20.49 quintals per hectare provisional estimate in 2015-16. Oilseed crops cover around 35000 hectares of cropped area. Productivity of oilseeds in the state has improved from 5.6 quintal per hectare in 2005-06 to 8.2 quintal per hectare in 2015-16. The cropping intensity in Uttarakhand was 159.2, estimated to be more than the country average figure of 138.9 in 2012-13. Usually, crops are sown twice in most part of the state which may be a plausible reason for high cropping intensity. Table5.5.presents a brief summary of area and production under foodgrains, oilseeds and sugarcane for three years.

Table 5.5. Area and Production of major crops in Uttarakhand

2013-14 2014-15 2015-16*

Area Production Area Production Area Production Cereals 825.59 1719.93 832 1585.00 800.94 1641.26 Pulses 65.04 56.52 66 52.72 62.86 51.54 Total Food grains 890.63 1776.45 898 1637.72 863.80 1692.80 Oilseeds 31.84 34.07 32 29 32.22 35.53 Sugarcane 104.26 5939.80 102 6135 96.85 5885.49 Source: India Statistical Yearbook 2016 *Provisional figures from Uttarakhand at a Glance 2016 Note: Area in ‘000 hectare and Production in ‘000 tonnes

However, it is important to note that since the state is predominantly hilly, it is important to analyse the production pattern across the hill and the plain districts and during the two different seasons: Kharif and Rabi.

5.11. Rice is grown in almost all the districts in the Kharif Season and the major pulses grown are urad, gahat/kulthi, tor/arhar and bhatt. During Rabi, wheat is grown in all the districts and the major pulses sown are gram, matter and masoor. Apart from food grains, the oilseeds sown in the Kharif season are soyabean, seasame and groundnut in the Rabi season lahi/sarson/toriya is mostly grown. Sugarcane is a Kharif crop and almost entirely grown in the plains and likewise, potato is only grown in the hills. In the Rabi season, potato and onion are grown in both the regions. In terms of productivity (yield in quintal per hectare) of total foodgrains, the data for different classifications like the Garhwal and Kumaon Divisions (referred to as Mandals) and the hill and the plain districts all show improvements. Comparing data for 2011-12 and 2014-15 Kharif season, only Almora district witnessed a decline in productivity of total food grains.

Table 5.6. Season-wise & Region-wise Area and Production under Foodgrains 2011-12 2014-15 2011-12 2014-15 2011-12 2014-15 Area Yield Area Yield Area Yield Area Yield Area Yield Area Yield Kharif Rice Total Pulses Total Foodgrains Garhwal Mandal 8.53 15.82 7.73 16.17 2.13 8.03 3.06 8.31 22.58 13.99 22.23 14.66 Kumaun Mandal 17.60 23.27 17.06 25.51 1.25 8.44 1.49 8.15 27.48 19.47 27.14 20.77 Hill Districts 12.45 13.35 11.70 13.64 3.25 8.25 4.40 8.31 35.36 12.91 35.48 13.26 Plain Districts 13.68 27.65 13.09 30.60 0.13 6.42 0.14 6.74 14.70 26.82 13.89 30.16 Total 26.13 20.84 24.79 22.57 3.38 8.18 4.55 8.26 50.06 17.00 49.37 18.02 Rabi Wheat Total Pulses Total Foodgrains Garhwal Mandal 14.89 19.65 14.07 14.80 0.40 6.68 0.54 6.50 16.50 18.81 15.84 14.28 Kumaun Mandal 20.67 27.69 20.70 21.54 1.41 9.59 1.55 8.63 22.99 25.98 23.15 20.27 Hill Districts 18.14 13.45 17.78 11.91 1.15 8.20 1.41 7.07 21.40 13.07 21.32 11.55 Plain Districts 17.42 35.65 16.99 26.03 0.65 10.27 0.67 10.20 18.08 34.72 17.67 25.42 Total 35.55 24.32 34.78 18.81 1.81 8.95 2.09 8.08 39.49 22.99 38.99 17.84 Note:Area in ten thousand Hectare and yield is Production (in quintal) per hectare Source: Directorate of Agriculture, Govt. of Uttarakhand- Agricultural Production in Uttarakhand Rabi 2012-13, 2014-15 Directorate of Agriculture, Govt. of Uttarakhand- Agricultural Production in Uttarakhand Kharif 2012-13, 2014-15

5.12. The overall productivity of oilseeds grown in the Kharif season has fallen in the state. The decline in productivity is sharp in the plains than in the hills. This fall in productivity is even more a serious concern when the area under oilseed cultivation has gone up from 6.32 thousand hectares in 2011-12 to .82 thousand hectares in 2014-15. The area under sugarcane has marginally dropped in the plains which may explain the small decrease in yield.

5.13. Wheat productivity in the Rabi season has fallen from 24.32 in 2011-12 to 18.81 in 2014- 15. Wheat is the major crop of the state as it is important from the point of view of food security. There is also a marginal decline in the productivity of oilseeds (8.95 in 2011-12 to 8.08 in 2014-15). These have resulted in a net fall in productivity of foodgrains grown in the Rabi season from 22.99 in 2011-12 to 17.84 in 2014-15. Productivity decline in wheat is observed both in the hill and the plain districts. However, in terms of total foodgrains productivity in the Rabi season, it is observed that the productivity decline is higher in the plains from 34.72 in 2011-12 to 25.42 in 2014-15. Area under wheat has declined in Dehradun, Haridwar, Pauri Garhwal, Tehri Garhwal, Uttarkashi, Champawat, Nainital and Udham Singh Nagar. The decline is prominent the plain districts where the demand for land is high for other economic activities.

5.14. Area under Fruits and Vegetables has increased by 4108 hectares and 9346 hectares in the last three years (2012-13 to 2014-15). This is a positive sign as yield from horticulture are more than open field crops like paddy and wheat. Also, horticulture crops are more suited to hill climate and topography. Horticulture sector holds tremendous potential to increase farm income. Most of the hill districts have very low access to irrigation (less than 25 per cent). It makes growing water intensive crops like paddy very difficult that requires eight to ten times irrigation during crop period. Therefore, it is advisable to grow horticulture which gives higher yield even under low irrigation.

Table 5.7. Area and Production under Horticulture in Uttarakhand

Fruits Vegetables Potato Year Area Production Area Production Area Production 2012-13 200851 805668 62993 625127 25040 434444 2013-14 202194 758238 65200 636193 25743 446959 2014-15 204959 785965 72339 657157 28360 452495 Source: Directorate of Horticulture, Uttarakhand cited in Statistical Diary, Uttarakhand 2014- 15 and Uttarakhand at a Glance 2016 Note:Area in Hectare and Production in Metric Tonnes

5. Cropping pattern:

5.15. Uttarakhand state falls in Zone 09 (Western Himalayan Region) as per the Agro-climatic Regional Planning of Planning Commission. Approximately 34 per cent of the net sown area sown in the state is concentrated in the plain districts of Haridwar and Udham Singh Nagar while their share in geographical area is only 10 per cent. Here, about 52 per cent of the district area is used for cultivation. The climate in the plains is hot and humid (tropical) and

supports cultivation of crops like wheat, paddy, sugarcane and vegetables. In hills, cultivation is confined to only 11 per cent of the area with wheat, finger millet (ragi) and small millet as major cereals. The cool climate of the hills also supports cultivation of a variety of fruits like apple, citrus, peach, pears, plum and vegetables like peas, potato, French bean and capsicum. Though area under agriculture in hills is meagre, agriculture is the main source of livelihood for majority population in the hills. The hills agriculture is confined in a subsistence syndrome but ensures household food security to the farming community.

5.16. During 2011-12 to 2014-15, acreage under total food grains in Kharif and Rabi declined by 6906 hectares and 4953 hectares respectively. On the other hand, area under horticulture (fruits and vegetables) saw a marked increase in acreage by 13454 hectares. This is possibly due to declining returns in open field food grain crops like paddy and wheat. To maximize returns from available land, farmers are growing food grains just for own consumption, surplus land is utilized for growing either commercial crops like sugarcane in plains or horticultural crops in hills. Other reason for crop diversification can be attributed to higher returns from horticulture than open field crops like paddy and wheat. Next, scattered land makes it a bit difficult to cultivate food grains in different places. Cultivation of food grains requires a variety of farm tools which are impossible to keep moving from one place to another place as land is scattered over different places in hills. Rather, horticultural crops are easy to cultivate. For fruits one has to sow the sapling only once and pluck fruits after two – three years. During crop period, one has to provide minimal irrigation, even normal rainfall is sufficient to keep plants alive. For practical reasons, horticulture cultivation is less labour intensive and fetches good returns.

6. Status of Irrigation 5.17. Access to irrigation is a serious concern in the Himalayan state due to hilly topography. Out of 13 districts, only four districts have more than 50 percent of Net sown area under irrigation. Chamoli (6.26 percent), Pithoragarh (8.04 percent), Almora (7.65 percent) and Champawat (11.79 percent) have very low access to irrigation. It is very pitiable fact that all major rivers originate from hills but the usage of river water for irrigation in the hill areas is almost negligible due to absence of local irrigation channel and the lack of suitable technology.

Table 5.8. District level Gross and net cultivated area, Gross and net irrigated area and its % in 2013-14

District Sown Area Irrigated area % of irrigated area out of sown area

Gross Net Gross Net Gross Net Uttarkashi 39615 28616 7596 4291 19.17 15.00 Chamoli 48669 32302 3048 1569 6.26 4.86 Tehri Garhwal 77673 54281 13828 7338 17.80 13.52 Pauri Garhwal 91331 64829 12066 6006 13.21 9.26 Dehradun 59533 41671 29541 20988 49.62 50.37

Rudraprayag 30058 19982 4220 2172 14.04 10.87 Pithoragarh 71672 40655 5764 3078 8.04 7.57 Almora 114832 78090 8782 4514 7.65 5.78 Nainital 74177 44021 38771 26757 52.27 60.78 Bageshwar 40688 22939 9632 4859 23.67 21.18 Champawat 26624 17493 3139 1703 11.79 9.74 Hills total 674872 444879 136387 83275 20.21 18.72 US Nagar 261002 139350 254830 136834 97.64 98.19 Haridwar 163311 116801 152867 107995 93.60 92.46 Plains Total 424313 256151 407697 244829 96.08 95.58 Uttarakhand 1099185 701030 544084 328104 49.50 46.80 Source: Department of Revenue, Uttarakhand cited in Statistical Diary Uttarakhand 2014-15

Graph 5.4.Irrigated Area in Uttarakhand

IrrigatedArea (in hectares) 20

0 Canal Borewell well Pond Others

2011-12 2012-13 2013-14 2014-15

7. Distribution of Inputs

5.18. Fertilizer: Consumption of chemical fertilizer i.e. NPK has increased by 43033 metric tonnes from 119205 metric tonnes (2001-02) to 162238 metric tonnes (2014-15). Figure 1.7a shows the trends in fertiliser consumption in the State. It is further observed that in almost in all the districts, over the years dependency on chemical fertilisers has increased. However, the larger share in fertiliser consumption is of the plain districts and districts where there adequate irrigation facilities.

Graph 5.5.Fertiliser distribution in Uttarakhand 2001-02 to 2014-15

140000 120000 100000 80000 60000 40000 20000 0

N P K

Unit Metric Tonnes Source: Statistical Diary Uttarakhand 2014-15

Graph 5.9.Seed Distribution in Uttarakhand (Unit: Quintal) District Wheat Paddy

2013-14 2014-15 % Change 2013-14 2014-15 % Change Chamoli 835 598.8 -28.3 166.76 66.54 -60.1 Dehradun 2292 2791.4 21.79 307.6 210.11 -31.69 Haridwar 13914 12555.6 -9.76 424.68 608.34 43.25 Pauri Garhwal 1405 1422.6 1.28 174.11 111.03 -36.23 Rudraprayag 485 249.8 -48.49 73.1 52.61 -28.03 Tehri Garhwal 968 1952.2 101.67 158.8 143.49 -9.64 Uttarkashi 1439 1276.6 -11.26 176.04 120.37 -31.62 Almora 1397 1665 19.18 628.35 214.32 -65.89 Bageshwar 330 626.8 89.94 134.43 96.12 -28.5 Champawat 645 723.2 12.12 80.97 114.59 41.52 Nainital 3643 3163 -13.19 312.39 212.16 -32.08 Pithoragarh 1025 1298 26.58 272.82 193.11 -29.22 Udhamsingh Nagar 89780 92694.2 3.25 13055.37 15426.1 18.16 Uttarakhand 118159 121017.2 2.42 15965.42 17568.9 10.04 Source: Agricultural Production in Uttarakhand Kharif 2014-15 and Rabi 2014-15, Directorate of Agriculture, Uttarakhand

5.19. Seeds Distribution: The district-wise data pertaining to distribution of seeds for the years 2013-14 and 2014-15 is presented in table 5.9. A total of 121017.2 quintal wheat seed and 17568.9 quintal of paddy seed was distributed in Uttarakhand during 2014-15. District –wise analysis shows that distribution of wheat seeds is skewed and plain districts i.e. Haridwar, Udham Singh Nagar, Dehradun alone account for a larger share (89.28 %) in the state wise distribution of wheat seed. Similarly, the trio plain districts accounted for 92.86 per cent distribution of paddy seed during 2013-14 Kharif season. For increasing the productivity (or yield) of foodgrains and oilseeds, the state has taken steps towards introduction of High Yielding Varieties (HYV) of the crops. There are several agencies which are working with the State Government in this direction, for example the Uttarakhand Seeds and Tarai Development Corporation Ltd., the National Seed Foundation among others. To increase the net sown area under HYV seeds/crops, the State implemented a centrally sponsored programme namely, Seed Village Scheme.

5.20. Electricity: Electricity is one of the major inputs for agricultural activities and in recent years demand for electricity is high for irrigation purposes. However, the trends show that in recent years there is substantial reduction in consumption of electricity for agricultural purposes. One possible reason is the reduction share of Haridwar and Dehradun districts in energy consumption. However, during the same period, share in energy consumption for agricultural purposes in Udham Singh Nagar has gone up. Except the district of Nainital, the share of other hill districts in electricity consumption is very negligible. This again points to the fact that there may be a strong relationship between irrigation facilities and electricity consumption.

Graph 5.6. Power Consumption in Uttarakhand (in thousand KWH) 600000

500000

400000

300000

200000

100000 Consumption in KWH thousand 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Electricity Consumption

Source: Compiled from District Statistical Handbook Uttarakhand (various issues)

Graph 5.7. Trends in District wise consumption of electricity for Agricultural purposes Nainital 2001 2013 Almora Pithoragarh 0.20 1.08 0.40 0.05 Chamoli 1.49 0.23 0.77 Uttarkashi

10.30 0.61 Tehri Garhwal 28.36 24.21 0.82 38.75 Pauri Garhwal

Dehradun

0.87 Haridwar 43.16 0.21 14.93 0.45 20.94 0.22 Udham Singh 0.36 Nagar 4.48 2.47 Bageshwar 3.18 0.16 Champawat 1.31 Rudraprayag

Table 5.10. Farm Mechanisation:

2010 2011 2012 2013 2014 2015 Uttarakhand 3893 5377 4600 4969 2205 2769 Source: Tractor Manufacturers Association, New Delhi

8. Progress of Different Schemes and Programmes

1. Cash incentive for the production of Mandua, Ramdana and Ugal/Fafar: In hill areas under local and traditional crops, provision has been made for cash incentives of Rs. 300 per quintal for Mandua, Ugal, Rajma, Arhar and Gahat crops.

2. 75 per cent subsidy for seeds of traditional crops of hill region: To overcome the shortage of local and traditional seeds of hill areas, certified seeds prepared at the local level through T.D.C. and Agriculture Department will be made available to farmers with 75 per cent subsidy. This scheme has been prepared for five years, under which 1336 quintal of local seeds has been distributed to farmers in hill region during Kharif 2016.

3. Marketing of local crop produce through Uttarakhand Marketing Board: Uttarakhand Marketing Board will facilitate marketing of locally produced crops like Mandua, Ramdana, Sanva Bhatt, Rajma, Gahath and Ugal/Fafar etc. so that farmers don’t face any trouble for marketing of these crops.

4. The announcement of Minimum Support Price for locally produced traditional crops in hill areas: For the first time in Uttarakhand during 2015-16, state govt. announced Minimum Support Price for locally produced traditional crops in hill areas as follows: Manduva: Rs. 1800 per quintal, Sanva: Rs. 1600 per quintal, Ramdana: Rs. 2250 per quintal, Bhatt: Rs. 2600 per quintal, Rajma: Rs. 2700 per quintal, Gahath: Rs. 7200 per quintal. This scheme of Minimum Support Price will continue in 2016-17 also.

5. Program for the production of Organic Manduva: This program has been launched to increase production of Organic Manduva in selected regions under which during 2015-16, 779 compost structures, 10 Manduva thresher distributions and 3500 hectares of the area has been certified as Organic.

6. The scheme has been prepared to benefit Scheduled Caste/Scheduled Tribe farmers. During 2016-17, 92 villages are covered under this scheme. Under this scheme, Distribution of Seed Mini cut, construction of irrigation tank, Soil and water conservation scheme, distribution of small farming tools etc. takes place.

7. Strengthening of Organic Commodity Board: In the state, Organic Commodity Board was established to strengthen organic agriculture program. Its main objective is organic training programs for organic farming, facilitating organic certification and helping in networking with exporters for marketing of organic commodities. Activities under this Scheme are broadened.

9. Centrally Sponsored Schemes

1. National Agricultural Development Program: Under this Program, regions affected by natural disasters are provided water and soil conservation facilities, Multi-Purpose water storage tank, plantation of plant saplings and fencing etc. to protect crops from forest animals.

For saturation of Organic farming, under National Agricultural Development Scheme, 300 villages in 10 development blocks of Srinagar Region in District Pauri Garhwal: Ukhimath, Jakholi, Deval, Salt, Betalghat, Agastmuni, Jayharikhal, Pratapnagar, Munyasyari and Bhatwari, are selected. During 2015-16, 5559 compost structures, 168 village level training, 3831 soil testing samples and 19240 hectares of the area has been certified as organic.

2.National Food Security Mission (NFSM): National Food Security Mission is underway considering food security in the state for the crops like paddy, Wheat, Pulses etc. Under this scheme, cluster demonstration of new and innovation species of various crops is organized. Also, Distribution of seeds, micro-nutrients, and pesticide take place with 50 per cent subsidy. Agricultural tools are made available to farmers with 50 per cent subsidy. For the year 2016-17, GoI has sanctioned Rs. 2372 lakhs out of which amount of Rs. 1072 lakh has been released.

3. National Mission for Sustainable Agriculture: To increase agricultural production in rain fed areas across the state, GoI has selected the state under National Mission for Sustainable Agriculture to promote the consolidated agricultural system, water use efficiency, appropriate soil health management and conservation of natural resources. This scheme has been in practice in the state since 2014-15. The objective of this scheme is to make agriculture more remunerative, more productive and adaptable to changing climate with the help of water conservation techniques, usage of the main nutrient based on soil testing and judicious use of fertilizer for soil health management. There are three components of this scheme: a) Under Rain-fed Agricultural Development Program, various types of agricultural techniques are popularized for natural resources conservation. For this purpose, GoI has sanctioned Rs. 741.85 lakhs. b) Funding for this scheme is borne by central government to the tune of 90 per cent and 10 per cent share is contributed by the state government. Under the scheme, 550 clusters in 12 districts are selected. An amount of Rs. 2181.08 lakh was spent during 2015-16. Under the scheme, training for organic farming, Integrated manure management, soil testing, marketing of organic commodities and subsidy is provided for agricultural machines. c) Soil Health Card Scheme has been launched by Central Govt. to made available soil health card to each farmer. Under the scheme, farmers are provided free soil health card, training, financial support for micro-nutrients, use of I.C.T tools and awareness workshop etc. are organized. During 2016-17 till December 2016, 71250 samples were collected and 223962 farmers were provided soil health card.

4. To increase Oilseeds production in the state, National Oilseed and Oil palm mission (Mini Mission-I) has been started during 2015-16. Under this scheme, subsidized seeds for oilseed crops, demonstration of oilseed crop at the block level, training, distribution of farm tools, water convection pipes etc. are provided. Under this scheme, during 2016-17, an amount of Rs. 51.37 lakh has been made available to districts.

5. National Mission on Agricultural Extension and Technology: Three sub-mission under this scheme are as follows: a) Sub-mission on agricultural extension program: The objective of this scheme is speeding up agricultural extension programs in the state at the block level, district level and state level, providing technical information related to innovative agriculture,

organizing training programs, raising life standards of farmers through increase in agricultural production and rise in income level. For this scheme, GoI, has sanctioned Rs. 938.89 lakh and Rs. 422.53 lakh has been released. Under the scheme, farmers training, demonstration, farmers visit program, farmers’ conference and farm school related program are organized. b) Seed and plotting material sub-mission: Under this scheme, farmers are provided seeds for cereal crops at 50 per cent subsidy and seeds for oilseeds crops are made available with 60 per cent subsidy. During rabi season 2016-17, Rs. 255 worth schemes are being worked out across the state. c) Sub-mission for agricultural mechanization: This scheme was started to increase agricultural mechanization and reduce costs in agriculture. Under the scheme during 2016-17, Rs. 222 lakh has been made available to districts. Under the scheme, works like custom hiring centre, farm machinery bank, training and distribution of farm tools etc. to benefit farmers are undertaken.

6. Prime Minister Agriculture Irrigation Scheme: This scheme has been launched in 2015-16. The main objective of this scheme is to prepare plans at the district level and block level to assess water requirement for irrigation. This scheme has three components: a) Accelerated Irrigation Benefits Programme, b) Per drop more water c) Water for every farm. An amount of Rs. 2300 lakh has been sanctioned out of which Rs. 2247 lakh has been released.

7. Watershed Management: Under this scheme, water conservation structures like check dam, streams, and pond, tank etc. treatment of ridge area and drainage, forestation, livelihood activity, micro-enterprises works for small and marginal farmers are included.

8. 332457 farmers are registered under Farmers’ Portal who receive agriculture- r elated information and suggestion via SMS on mobile phones.

9. Under Prime Minister Crop Insurance Scheme, Paddy, Manduva and wheat crops of the whole state are planned under the ambit of this scheme. For Kharif crops, the maximum premium is 2 per cent and 1.50 per cent premium for Rabi crops. The scheme has a budget provision of Rs. 600 lakh during 2016-17.

Provisional Achievemnt Achievement during Sl. No. Program/Scheme Unit 2015-16 Target for 2016-17 during 1.4.2016- 1.12.2016- 30.11.2016 31.03.2017

Target Achieved

State Sponsored Schemes 1 Organic Manduva Production Scheme Certified Area hectare 3500 510 4000 4000 0 Vermi Compost No. 3200 3332 3200 1312 1888 Training No. 105 106 56 33 23 Manduva Thresher Distribution No. 25 10 20 0 20 Distribution of Organic aagat hectare 3500 2695 4000 2000 2000 2 Agricultural Development Program in Scheduled Caste dominated villages Distribution of Seed Minicut No. 4460 1432 4275 157 4118 Plant Protection Program hectare 1500 626 1319 130 1189 Distribution of Agricultural tools No. 4160 1260 1741 85 1656 Soil and Water Conservation program hectare 596 536 874 26 848 3 Agricultural Development Program in Scheduled Tribe dominated villages Plant Protection Program hectare 274 132 320 78 242 Distribution of Agricultural tools No. 1430 438 186 38 148 Distribution of Agricultural tools hectare 272 134 494 22 472 Irrigation Tank No. 43 27 140 8 132 4 Running of Lab Soil Testing No. 67607 52557 83185 69953 13232 Soil Health Card No. 456325 268200 644000 212012 431988

Centrally Sponsored Schemes 1 National Food Security Mission (I) Rice 1 Demonstration hectare 1710 1674 2280 1975 305 2 Seed Distribution Quintal 7850 743 9620 666 8954 3 Plant and Soil Management hectare 12500 24567 14430 16920 4 Resource Conservation No. 435 500 709 161 548 5 Training No. 29 22 35 34 1 6 Local Initiative hectare 348 579 5060 944 4116 (II) Wheat 1 Demonstration hectare 3179 3259 3990 2114 1876 2 Seed Distribution Quintal 8000 12685 16900 2412 14488 3 Plant and Soil Management hectare 10343 23635 27699 2301 25398 4 Resource Conservation No. 455 456 1210 127 1083 5 Training No. 35 29 61 3 58 6 Local Initiative hectare 400 0 5570 30 5540 (III) Coarse Cereals 1 Demonstration hectare 925 0 3197 707.07 2489.93 2 Seed Distribution Quintal 892 9 4170 46.78 4123.22 (IV) Pulses 1 Demonstration hectare 1430 1496 2695 1455 1240 2 Seed Distribution Quintal 2380 256 4500 297 4203 3 Plant and Soil Management hectare 7955 4997 22399 1364 21035 4 Resource Conservation No. 892 360 282 49 233 5 Training No. 38 13 54 20 34 6 Local Initiative hectare 16 3 180 30 150

2 Rainfed Area Development Programme

1 Demo based on Crop system hectare 3507 2148 2561 1070 1491 2 Green house and low tunnel polyhouse(tubular) Square Meter 15750 8050 6450 0 6450 3 Bee keeping No. 365 10 337 0 337 4 Cylage unit No. 34 2 21 2 19 5 Post-harvest and Storage No. 16 10 9 0 9 6 Water Harvesting tank No. 79 59 0 0 0 7 Tank Restoration No. 23 21 0 0 0 8 Water use and distribution hectare 117 52 0 0 0 9 Channel structures No. 0 0 341 122 219 10 Vermi compost structures No. 2505 2033 50 24 26 11 Training No. 134 66 54 21 33 12 Educational Tour No. 64 23 41 16 25

3 National Oilseeds and Palmoil Mission I Seed Component 1 Sale of fertilised seeds Quintal 18.9 17.6 18.9 6.25 12.65 2 Production of Basic seeds Quintal 217 0 217 0 217 3 Production of Certified seeds Quintal 732 159 420 0 420 4 Distribution of Certified Seeds Quintal 1557.06 199.78 628 469 159 II Technology Transfer Program 1 Block demonstration hectare 1750 1866 440 430 10 2 Farmers' training No. 13 15 13 8 5 3 Officials' training No. 2 0 1 0 1 III Distribution of Production Inputs 1000 1740 1825 266 1559 IV Agricultural Mechanisation and Irrigation tools 306 839 349 93 256 1 Water Convecting Pipes meters 32780 41453 20080 5150 14930 V Flexi Fund a. Soya Milk Processing Unit for self-help group No. 0 0 5 0 5

b) NCIPM/Feromen Trap no. 465 520 300 57 243 4 National Agricultural Development Scheme I Program for promoting Organic farming 1 Vermi Compost Structure No. 4565 3827 4565 3843 722 2 Nodep Pit/Bamboo Nodep No. 2840 1732 2840 1743 1097 3 Training No. 247 168 247 173 74 4 Organic Certification hectare 50000 19240 50000 19740 30260 II Crop Production Program 1 Cluster demonstration hectare 860 860 0 2 Seed distribution of high yielding variety seeds Quintal 2600 500 2100 3 Micro-Nutrients/Pesticides hectare 10600 2601 7999 5 Accelerated National Agricultural and Technology Mission 1 Farm Machinery Bank No. 16 13 10 9 1 2 Custom hiring centre No. 5 9 22 21 1 3 Other Agriculture No. 8258 15329 305 35 270 II Sub mission for accelerated agriculture 1 Farmers' Training No. 13300 10284 13300 2327 10973 2 Demonstration No. 1900 1793 1900 558 1342 3 Tour Programme No. 13656 9552 13651 1226 12425 4 Block/District level farmer prize No. 432 380 432 14 418

Chapter 6 Animal Husbandry, Fisheries and Forestry 1. Animal Husbandry:

6.1. The animal husbandry and livestock have played an important role in the rural economy of the State especially in the hilly districts. The livestock is important from the point of view of food security, alternative sources of income, agricultural activity to a medium of transportation. In 2015-16, the share of animal husbandry in Gross State Domestic Product (GSDP) of Agriculture and Allied activities was 27.27 %1. As per the 19th Livestock Census, the share of Uttarakhand in all India livestock and poultry population was 0.94 per cent and 0.64 percent respectively. the total population of the livestock in the state is 96.64 lakh including poultry. A study estimated a livestock density at 81.5 per square km and 0.5 per capita, both the indicators below the national average. One of the major reasons for this may be the geographic features of the state, limited grazing lands and that in Uttarakhand mixed livestock farming system exists, both sedentary and migratory. The livestock and poultry statistics is given in Table 6.2. Table 6.1 Species-wise Livestock population (as on 2012) Sl. No. Species Population (Lakhs) 1996 2003 2007 2012 1 Cattle 20.31 21.88 22.35 20.06 2 Buffalo 10.94 12.28 12.19 9.88 3 Sheep 3.12 2.96 2.90 3.69 4 Goat 10.85 11.58 13.35 13.67 5 Horse/ Pony/ Mule/ Donkey 0.24 0.40 0.41 0.45 6 Pig 0.31 0.33 0.20 0.20 7 Others (Yak/ Elephant/ Dog/ Rabbit) 0.34 2.73 2.60 2.27 8 Poultry 9.82 19.84 26.02 46.42 Total 55.93 72.00 80.02 96.64 Source:1996: 16th Livestock Census; 2003: 17th Livestock Census; 2007: 18th Livestock Census & 2012: 19th Livestock Census

Livestock Population Dynamics: 6.2 Uttarakhand has a total area of 53,483 km of which 86 percent is mountainous and 65 percent is covered by forests. As per 2011 census total population of Uttarakhand state is 101.17 lacs out of which 69.45 percent is rural and 30.55 percent is urban population. According to the 19th livestock census 2012, in comparison to the country average, the state has 1.05 percent cattle, 0.91 percent buffaloes, 0.57 percent sheep, 1.01 percent goats, 0.19 percent pigs and 0.64percent poultry. There has been a significant increase in the population of crossbred cattle but a decrease in the indigenous cattle population. Overall, total population of cattle has decreased. Increase in cross breed population reflects the direct influence of the Breed

1 http://www.mospi.gov.in/data 73

Improvement Programs being carried out in the state. There has been a decline in the population of buffaloes as well. There was significant increase in population of sheep and goats, since 2007. This has been totally market driven as the demand for meat has been ever increasing. Interestingly there has been a very significant increase in poultry which may be attributed to increasing consumption trends of poultry meat and eggs. In Table 2.2 the district-wise distribution of livestock and poultry is presented. Based on the 19th Livestock Census, Pauri Garhwal leads in terms of the total livestock population and Udham Singh Nagar in terms of poultry.

6.3. The number of exotic/crossbreds population of cattle has increased from 0.34 million in 2007 to 0.49 million in 2012. However, the indigenous cattle have decreased from 1.87 million in 2007 to 1.50 million in 2012. The share of Pauri Garhwal in cattle population is 15.14 percent while Champawat had the lowest share at 4.56 percent. The population of buffaloes is highest in Haridwar (24.01 percent), followed by Udham Singh Nagar and Almora. Champawat again has the lowest share with 2.34 percent share of state buffalo population.

6.4. The exotic/crossbred and indigenous population of sheep in the state have increased from 0.09 million and 0.20 million in 2007 to 0.12 million and 0.24 million in 2012. Chamoli has the largest population of sheep with a share of 27.76 percent whereas Udam Singh Nagar has the lowest share of 0.52 percent. The goat population in the state has increased marginally by 2.4% during 2007-2012 to 1.36 million. The highest concentration of goat is in the Pithoragarh district. A special programme has been undertaken in the Dharchula and Munsiyari blocks of the district under the Ajivika Utthan Scheme under which livestock rearing has been promoted through various policy interventions. Goat population is lowest in Haridwar district.

6.5. Horses, mules, ponies and donkeys have been used for transportation purposes in the hilly districts of the state. The number of horses and ponies in the state has increased by 5.94 percent and the highest population is in Nainital district (15.32 percent). However, the mules share is high in Uttarkashi at 21.88 percent donkeys are more in Dehradun at 2.07 percent. The pig population in the state has decreased in 2012 compared to 2003. There has been a sharp decline in the indigenous pig population. Haridwar and Dehradun districts leads the share of pig population at 46.24 percent and 22.36 percent respectively.

6.6. In recent years, poultry farming in the state has increased, promoted by policies adopted by the state government. The number of birds has increased from 2.60 million in 2007 to 4.64 million in 2012 recording an increase of 78.41 percent. Udham Singh Nagar leads in share of poultry population with almost 66 percent followed by Nainital with 12.80 percent.

Table 6.2: District-wise distribution of Livestock & Poultry in Uttarakhand (as on 2012) 1 2 Livestock Cattle Buffaloes Sheep Goats Horse & others Pigs Others Poultry Almora 490512 197326 96662 3732 189184 2573 1035 16025 106046 Bageshwar 263688 101407 35378 17635 107050 2149 69 9363 25926 Chamoli 389951 158309 43191 102353 81612 4130 348 10763 25187 Champawat 167034 91559 23132 8 50919 1117 299 11034 79813 Dehradun 390846 180907 52845 11721 136729 4192 4452 45415 400940 Pauri Garhwal 551218 303712 38720 25523 179705 2872 686 12891 91182 Haridwar 430940 152520 237205 5571 24398 2041 9205 13389 89034 Nainital 339413 174594 89681 293 69763 4120 962 35766 594263 Pithoragarh 506157 202104 50996 47336 201240 4219 230 20048 40798 Rudraprayag 182351 93967 32659 15453 37164 3052 56 5056 30616 Tehri Garhwal 365997 100186 91350 43323 125899 4630 609 11881 69442 Udham Singh Nagar 352157 138729 165053 1925 42958 1771 1721 30071 3063001 Uttarkashi 364466 110733 30903 93883 120792 7898 235 5542 25689 4794730 2006053 987775 368756 1367413 44764 19907 227244 4641937 Source: 2012 19th Livestock Census 1 Horse & others include horses, mules, ponies and donkeys 2 Others include Yaks, elephants, dogs and rabbits

Table6.3: Division-wise Production from Livestock in Uttarakhand

2012-13 2013-14 2014-15 2012-13 2013-14 2014-15 2012-13 2013-14 2014-15 Production Unit Garhwal Mandal Kumaon Mandal Total State Milk 0000 MT 76.62 80.15 80.71 71.21 74.87 75.82 147.84 155.01 156.54 Egg in Crore 6.15 7.03 7.84 24.64 26.67 29.14 30.79 33.70 36.97 Meat in Lakhs Kg 120.50 120.63 134.84 95.24 115.95 125.55 215.74 236.58 260.39 Wool in 0000 Kg 30.00 33.48 35.66 9.99 10.53 11.23 39.99 44.02 46.89 Source: Uttarakhand Livestock Development Board

Livestock Production: 6.7 Milk, eggs, wool and meat are the major produce from livestock. Uttarakhand ranked eighteenth in terms of milk production in the country in the year 2015-16. Milk production stood at 1656 thousand tonnes which is higher compares to previous years but share of state in all India production has seen a drop. The state share in milk, egg, wool and meat production is presented in Table 6.4. The annual average growth rate of livestock produce has shown a constant positive trend during the above period. This reflects an increase in the consumption pattern of milk, egg, wool and meat in the state. This is presented in Table 6.5. Since 2001-02, the production of poultry has out passed that of mil, wool and meat. The trends are presented in Fig 2.1. If we compare the two divisions, except for wool, Kumaon leads in terms of poultry (or egg), milk and meat production. The past three years data for Garhwal and Kumaon Mandals are presented in Table 2.3b.

Table 6.4. State share in Total (All India) Production Year Milk Production Egg Production Wool Production Meat Production 2001-02 1.26 0.23 0.86 0.41 2005-06 1.24 0.41 0.79 0.27 2010-11 1.14 0.41 0.83 0.29 2011-12 1.11 0.41 0.84 0.29 2012-13 1.12 0.44 0.87 0.36 2013-14 1.13 0.45 0.92 0.38 2014-15 1.07 0.47 0.97 0.39 2015-16 1.06 0.47 1.18 0.39

Graph 6.1: Trends in production of milk, egg 4500 4000 3500 3000 2500 2000 1500 1000 500 0

Milk (000 MT ) Egg ( Lacs) Wool ( 000 kg ) Meat ( Lac Kg)

Table 6.5.Average Livestock and Poultry Production Item Unit 2012-13 2013-14 2014-15 Milk (Cow) Kg. per day 3.094 3.187 3.635 Milk (Buffalo) Kg. per day 4.148 4.181 4.288 Egg per hen per year 208 215 218 Wool per sheep per year 1.448 1.457 1.516 Meat of Buffalo kg. per animal 124.777 123.724 124.45 Meat of Sheep kg. per animal 15.267 15.332 15.646 Meat of Goat kg. per animal 14.989 14.924 14.995 Meat of Pig kg. per animal 46.277 46.166 46.793 Source: Statistical Diary 2014-15

Livestock Support Services: 6.8 The onus of providing animal health services in Uttarakhand both prophylactic and therapeutic; farm advisory services; extension and communication; technical backstopping; animal breeding services; and all other inputs related to the livestock sector lie with the Department of Animal Husbandry. Such wide range of activities are carried out through its vast institutional setup consisting of veterinary hospitals, dispensaries, artificial insemination (AI) centres, livestock production farms; training centres and other production support institutions etc.

6.9. The state has several institutions spread over different districts. With the purpose of regulating animal health services and related issues, the Registrar-Uttarakhand Veterinary Council has been set up under the Veterinary Council of India Act 1981. A summary list is presented below in Table 6.6.

Table 6.6: Facilities for Veterinary and Other Services Sl. No. Institution 2012-13 2013-14 2014-15 2015-16 1 Veterinary Hospitals 308 313 317 325 2 Veterinary Dispensaries 744 751 748 7851 3 A. I. Centers (Deptt.) 658 669 671 686 4 Cattle Breeding Farms 3 4 4 4 5 Angora Rabbit Farms 5 5 5 5 6 Angora Goat Farm/Goat Farm 1 1 1 2 Sheep & Wool Extension Centers / 113 113 113 113 7 Stud Ram Centers 8 Piggery Farms 2 2 2 2 9 Poultry Farms 7 7 7 7

Source: Directorate of Animal Husbandry, Uttarakhand 1 including 10 ‘D’ Class Dispensaries;

6.10. Based on the information available from the Uttarakhand Department of Animal Husbandry, there are other policy initiatives taken by the State towards development of livestock and poultry. For example, sheep breeding farms, integrated project for sheep, goat and rabbit, intensive poultry development project (IPDP), diagnostic labs, wool grading centre, semen production centre and bank. The state has also setup Special Purpose Vehicles (SPVs) for addressing specific sectors within the livestock sphere. The number of such centres, units and institutions are given below in Table 6.7. as available from the Directorate.

Table 6.7(a): Institutions for Development of Animal Husbandry

Sl. No. INSTITUTION Number 1 Sheep Breeding Farms 11 2 Intensive Poultry Development Project (IPDP) 08 3 Disease Diagnostic Labs 08 4 No of Hatcheries 07 5 Wool Grading Center 01 6 Frozen Semen Production Centre 01 7 Frozen Semen Bank 02 8 SPVs 1- U.L.D.B. 01 2- U.S.W.D.B. 01 3- U.A.W.B 01 4- Uttarakhand Gau Seva Ayog 01 5- Registrar, Uttarakhand Vet. Council 01

6.11. Uttarakhand Livestock Development Board (ULDB): The board is an autonomous body, having its headquarters at Dehradun is set up under the Centrally sponsored National Project for Cattle and Buffalo Breeding and is registered under the Societies Regn. Act 1860. The board is the sole agency for the production and supply of quality frozen semen doses (as per MSP norms of GOI); procurement and supply of Liquid Nitrogen through the establishment of a state LN2 grid; and all other inputs related to the successful field delivery of Artificial Insemination. In addition to this the board also procures and supplies buffalo and cow bulls for establishment of Natural breeding centers in an organized manner in the remote mountainous regions of the state. The board also looks after the various fodder development initiatives of the Department of animal husbandry. In line with the national objective of conserving and propagating the indigenous breeds of cattle, the board is using the Embryo Transfer Technology for conservation and propagation of Red Sindhi breed of cattle.

6.12. Uttarakhand Sheep & Wool Development Board (USWDB): Sheep and Goat husbandry is deeply rooted within the rich cultural and traditional heritage of Uttarakhand and forms one of the major economic backbones of the marginal and landless farmers of the state.

6.13. The vision of Uttarakhand Sheep and Wool Development Board (USWDB) is to intensify, manifest and create new opportunities in the field of sheep, goat and rabbit husbandry for increasing employment generation and enterprise development in the state. Promotion of machine shearing for qualitative and quantitative improvement in raw wool, health coverage to sheep and goat, facilities like tent, solar lamp, mattress, tarpaulin, umbrella, shoes, rain coat and torch to shepherds on migratory routes, breed improvement through distribution of elite quality rams from the 5 Ram Raising Units (RRU) and providing facilities through 5 Mobile Veterinary Vans in 5 sheep dense populated districts viz. Pithoragarh, Bageshwar, Chamoli, Uttarkashi and Tehri are few pioneering activities of USWDB.

6.14. Uttarakhand Animal Welfare Board (UAWB): In order to address issues involving the welfare and humane treatment of animals this board has been established as per the recommendations of the GOI.

6.15. Uttarakhand Gau Seva Ayog: The state of Uttarakhand has a complete ban on the slaughter of cow and its progeny. A separate Ayog has been constituted as per the directives of the central government for the same.

Dairy Development Board, Uttarakhand: 6.16. Dairy industry provides additional source of income in rural areas. Govt. of Uttarakhand has launched several dairy development programs to ensure quality availability of milk and milk products in cities, towns and religious places of Uttarakhand at reasonable price through cooperative agencies. Dairy Development Board provides financial support to strengthen basic infrastructure for milk cooperatives and equip them with modern machines and instruments. Besides, training to milk producers, technological investment, sale of hybrid cattle, animal health and nutrition and incentives for milk are also facilitated by Dairy Development Board. New schemes are created as per the need of the state, execution and assessment are also conducted and the board also provides critical policy inputs and reports to State Govt.

6.17. Details of Schemes: The state Dairy Development Board was allocated a total sum of Rs. 3285.97 lakhs (Rs. 500.01 lakh by Central Govt. and Rs. 2785.96 lakh by state govt.) and additional sum of Rs. 831.08 under district sector. Major schemes running in the state are as follows:

(1) Dairy Development Scheme: Under these scheme state milk cooperatives gets transport grant, management grant, state grant for civil works and establishment of plant, machinery and strengthening of milk marketing network to become self - dependent. A sum of Rs. 320 lakh was sanctioned for the year 2016-17 to help nurturing dairy industry in the state.

(2) Mahila Dairy Development Scheme: To ensure equitable representation of women in the state cooperatives, Mahila Dairy Development Scheme was launched in 1994-95. A sum of Rs. 445.96 lakh was sanctioned for the year 2016-17.

(3) Milk cooperatives in rural areas (District Scheme): Under the 12th five year plan, it was proposed to create 575 new milk cooperatives and recreate 130 idle milk cooperatives. Major works included Veterinary services for improvement of animal health, supply of animal feed, demonstration for cattle promotion and camp, construction of milk storage and godowns for animal fodder. Under the scheme, budget is provided to District Magistrate. A sum of Rs. 880.182 lakh was sanctioned for the year 2016-17.

6.18. Other schemes includes establishment of Cooperative Dairy training institute, strengthening of shelter for cattle, price incentive for milk producers, Ganga-Cow Mahila Dairy program.

6.19. Major achievement during 2016-17:

1. Uttarakhand Cooperative Milk federation has been created as nodal agency for all dairies in the state. Till November 2016, 3982 milk cooperative societies were created and a total of 154177 members are benefitting from these dairies. Everyday 171621 litres of milk is stored through these dairies and 150651 litre of milk is sold to town and city natives daily. Other notable achievements includes establishment of 10 dairies having milk capacity of 2.05 lakh litres daily, 45 milk cold storage having capacity of 1.25 lakh litre, animal feed storage having 100 metric ton capacity, loan distribution to 690 beneficiary under Ganga Cow scheme etc.

6.20. Other notable works included establishment of office of Directorate of Dairy and construction of residential buildings in Haldwani for which land has been selected and awaited for clearance from the Department of Forest, Uttarakhand.

2. Fisheries:

6.21. Water is available in abundance for the flourishing of fisheries in Uttarakhand. The Himalayan state is endowed with vast networks of 2686 km long rivers, reservoirs with a vast area of 20075 hectares, 297 hectares in the form of natural lakes and rural ponds covering an area of 785.190 hectares. The state has an estimated waterlogged area of 1000 hectares. Annual fish production in the state is reported to be 4297 tonnes per year and seed production is around an average of 638 lakh per year.

6.22. Developing fisheries will increase fish production and lead to the availability of protein–rich food in the rural region, helping eradication of malnutrition among the rural population, the creation of additional employment and alternate sources of income. This will also bring social

and economic upliftment for weaker and poorer section of the society. Fish being one of the sources of quality protein, may help in planning for food security. Fisheries Sector contributes to the production of quality animal protein required for human being besides provides more employment opportunities.

6.23. Nowadays, people are interested in fisheries. Not only illiterate persons but educated peoples are also taking interest in fisheries. In the hills, cold water fisheries are popular and whereas in plains warm water fisheries are popular, for that state govt. are providing the financial support for construction and renovation of ponds. There has been a gradual loss of fisheries in natural sources of water due to unscientific methods of harnessing/ harvesting fish. The state govt. has been building capacity for the fish seed to increase fisheries production.

6.24. The main objectives of the department of fisheries are:

 To increase fish production while maintaining ecological balance.  Ensuring availability of protein-rich diet to the people.  Creation/ Renovation of ponds in the hilly and plain region.  Trout fisheries development in cold water environment.  To increase the fish production in the state by transforming the present extensive/modified extensive practice to semi intensive /intensive culture practices.  The popularization of cage culture in open water bodies.  Strengthening of scientific fish marketing and fish processing technology.  Improvement of the socio – economic conditions of the weaker section of society.  Social upliftment of persons through employment availability  Conservation and propagation of local indigenous fishes  Extension of scientific and allied services to the fish farmers.

6.25. The Department has established various Institutions for the development of the sector such as district and regional offices, fish training/awareness center in district Dehradun, fish farms/hatcheries in the district Udham Singh Nagar, Nainital, Almora, Dehradun, Champawat and Tehri Garhwal. The state has a good reserve of trout and mahseer fishes that attracts tourists with interest in angling fishes. But, unregulated fishing of trout and mahseer may endanger their population. Keeping this in view trout and mahseer hatchery have been opened in the districts of Uttarkashi, Chamoli and Pauri Garhwal respectively.

State Sector Schemes for Fisheries Development

6.26. Development of Reservoirs (Conservation and propagation of fisheries in natural water bodies): In Uttarakhand, there is plenty availability of rivers, reservoirs, lake, pond etc. which has a huge possibility of fisheries. There has been a continual loss of fisheries due to the unscientific

way of harnessing in these natural sources to the extent that some species are about to be threatened/ extinct. Besides, due to water pollution and changes in place of habitation for fisheries, it is imperative to conserve fisheries. This scheme was launched in 2004-05 to address these issues. Under this scheme, which is running in all districts of the state, works like accumulation of fish seeds and awareness programs are organized. Under the scheme since 2011-12 to present, around 146.46 lakh fish seeds have been accumulated from all districts of the state. From this accumulation, 43.938 tonnes of fisheries was obtained. Simultaneously, 263 workshops were organized in order to promote fisheries conservation and awareness.

Creation of Residential and Non Residential Building of fisheries Department: This scheme was launched in 2007-08 to construct residential and non-residential building for the department of fisheries. Under the scheme, one building of directorate and one residential building at Dehradun has been established till now.

6.27. Scheduled Caste Sub Plan (S.C.S.P.): This scheme was launched in FY 2006-07 considering the welfare of scheduled caste community. Under this scheme ponds will be constructed in hill and plain area for which Govt. subsidy will be provided to the beneficiaries according to norms as per social welfare department. Besides this, training, seminar and field trip programs are also conducted under the scheme to make this section of society aware about fish farming and aquaculture. Tribal Sub Plan (TSP): This scheme was launched in FY 2005-06 considering welfare of scheduled tribe community. Under this scheme ponds will be constructed in hills and plain area for which Govt. subsidy will be provided to the beneficiaries according to norms as per social welfare department. Besides this, training, seminar and field trip programs are also conducted under the scheme to make this section of society aware about fish farming and aquaculture.

Construction of Ideal Fish Ponds in Hilly Districts: For the construction of ideal fish ponds in hilly districts of the state i.e. on cemented floor and pitched wall basis, this scheme has been launched by state govt. in FY 2014-15. These ponds are resistant to water leakage and observed a significant increase in fish production.

Construction of Fish Ponds in Hilly Districts: The hilly region of Uttarakhand generally consisting of small land holdings due to which most of the interested people cannot initiate fisheries activities due to norms constraints. So, to target such marginal farmers this scheme was launched in FY 2014-15, under which small ponds covering 50 square meters of the area are constructed.

State Fisheries Input Scheme: For promoting feed based fisheries activities and make avail of other input items such as hand nets, medicines etc. this scheme has been initiated by state Govt. in FY 2016-17. This scheme entitles fish farmers these items at subsidized rates.

Centrally Sponsored Schemes:

6.29. Like state govt. Schemes, central govt. has also taken many initiatives to promote fisheries. Major initiatives include construction/renovation of new ponds in plain districts, construction of running water fish ponds, grant for the beneficiary, etc. For providing housing and water facilities to poor fishermen community at free of cost around 180 houses and 14 tub wells have been provided till date since 2004-05 through National Scheme of Welfare of Fishermen.

6.30. Under "Strengthening of Database and Information System"(launched in 2004-05), provision has been made to collect state wide data relating to fisheries. To provide healthcare services to fisheries, state level lab has been established in the directorate of fisheries, Dehradun that will provide water quality diagnosis and address all health related issues of fisheries. A State level awareness center for imparting scientific and advance training, workshop, etc. has been set up under “Fisheries training and extension” scheme.

Many of these initiatives were clubbed under GOI new sanctioned "Blue Revolution: Integrated Development and Management of Fisheries” program. Blue revolution envisages “Creating an enabling environment for integrated development of the full potential of fisheries and fish farmers keeping in view the sustainability, bio-security and environmental concerns”. Department of Fisheries, Uttarakhand has also initiated the blue revolution program in the state with the help of GOI that will lead to doubling of fish production and farmers income with direct and indirect employment generation. Under this program, many new initiatives like cage culture, solar power support system, brood bank, infrastructure and marketing, trout farming, etc. are undertaken with already existing initiatives such as construction/renovation of ponds and development of cold water fisheries.

Major Programs:

6.31. Govt. has adopted Fisheries Act 2002 and Matsya Niyamavali 2013 that makes permission to Fisheries Department, Uttarakhand for utilizing maximum water resources for fisheries conservation and propagation. In 2014-15, Tehri reservoir was leased out for fisheries for a period of three years that will fetch revenue of Rs. 1.80 crore to state Govt. In December 2016, Fisheries was granted the status of agriculture to provide same amenities to fish farmers/fishermen as agriculture farmers are entitled too. Henceforth, fish farmers/fishermen will get cheap electricity, water supply, loan at subsidized rates, credit cards etc. like their farmer counterparts. Various initiatives have been taken to provide basic infrastructure in major regions catering to the needs of local fishermen. Government Fish Farms that were damaged during 2013 disasters were repaired in district Uttarkashi and Chamoli with the sanctioned budget of Rs. 2 crores under SPA-R scheme. Through RKVY scheme, a hatchery with annual production capacity of 1 crore fish seed has been 83

established at a cost of 182.97 lakh. Under the same scheme in Udham Singh Nagar, a fish feed mill has been established at a cost of Rs. 109.87 lakh. From the FY 2016-17, Cage culture has been promoted and established 48 cages in reservoirs of district Udham Singh Nagar. For availability of high yielding variety of brooders and to overcome the problem of inbreeding, a brood bank has been established in Khatima of Udham Singh Nagar district. An insulated truck has been provided to District Fish Federation Haridwar for the supply of fish and fish products in good quality and hygienic conditions within the state or out of state and thereby strengthening fish marketing. For making the availability of fingerling for fish farmers and other water bodies of the state, rearing units are to be constructed in district Udham Singh Nagar under the Mission Fingerling of Blue Revolution Programme. The five reservoirs situated at district Udham Singh Nagar were given on lease for fisheries activities that will generate an income of about 4.50 crore per year.

6.7(b).The scheme proposed for the year 2017-18 are presented below in table- Sl. Name of the Scheme Target outlay for the year No. 2017-18 (in Rs. Lakh) State sponsored Schemes 1 Creation of Residential and Non-Residential Buildings of 25 fisheries Department 2 Special component sub plan (SCSP) 100 3 Tribal Sub Plan 60 4 Construction of Ideal fish ponds in hilly areas 30 5 Construction of Fish Ponds in hilly areas 40 6 State Fisheries Input Scheme 20 7 NABARD sponsored scheme 100 8 Direction and Administration 878.35 Total (1) 1253.35 Centrally Sponsored Scheme 1 Fish Farmer Development Agency (75 % Central) 0.01 2 Cold water fisheries and aquaculture 0.01 3 National Scheme of welfare fishermen (Development of 0.01 Inland Aquaculture Fisheries, 75 % central) 4 Integrated Fish Farming (Development of Inland Aquaculture 0.01 Fisheries ) (75 % Central) 5 Strengthening of Database and Information network (100 % 30 central) 6 Establishment of laboratories at state level for water quality 15 and fish health investigations (75 % Central) 7 Fisheries Training and extension (80 % Central) 20 8 Blue Revolution a) Fresh Water Fisheries Development (Blue Revolution) 99 b) Cold Water Fisheries Development (Blue Revolution) 150

c) Reservoir fisheries – cage culture (Blue Revolution) 100 d) Training/Skill development of Fish Farmers (Blue Revolution) 20 e) Solar power support system (Blue Revolution) 15 f) Infrastructure and marketing (Blue Revolution) 13.5 g) Establishment of brood bank (Blue Revolution) 100 h) Riverine Fisheries –Conservation and Management (Blue 4 Revolution) i) Development of waterlogged Areas (Blue Revolution) 65 j) Special Project for Pangasius culture (Blue Revolution) 75 k) Blue Revolution – Administration expenses (Blue Revolution 50.11 ) l) Establishment of Fish farm and hatcheries in govt. sector 75 (Blue Revolution) m) Strengthening of fish farm and hatcheries (Blue Revolution) 30.89 n) Mission Fingerling (Blue Revolution) 100 Total (2) 962.54 Grand Total (1+2) 2215.89 *Outlay for FY 2017-18 revised in June 2017 and is sanctioned as per above in Uttarakhand Budget 2017-18.

2. Forest in Uttarakhand

6.33. Uttarakhand’s geographical area of 53483 sq. km. constitutes 1.63 % of India’s area. Forest accounts for highest land use 71.05 % of state area. Forests are an invaluable asset endowed by nature. Forest not only checks pollution but also control weather. Forest play important role in water and soil conservation. It provides shelter to wild animals and a large number of our basic needs are fulfilled directly or indirectly by forest.

Table 6.8. Land Use Pattern in Uttarakhand Land Use Area in '000 ha % Total Geographical Area 5348 Reporting area for land utilization 5673 100 Forests 3485 61.43 Not available for cultivation 449 7.91 Permanent pastures and other grazing lands 192 3.38 Land under Misc. Tree crops and groves 390 6.87 Culturable wasteland 315 5.55 Fallow lands other than current fallows 86 1.52 Current fallows 51 0.90 Net area sown 705 12.43 Source: Landuse Statistics, Ministry of Agriculture, GOI, 2013-13 cited in India State of Forest Report, 2015.

6.34. Uttarakhand is endowed with rich forest cover of around 71.05 percent of state surface area. In Table 6.8, the major land use pattern in Uttarakhand is presented. Apart from the classification of forests, in the state we have grazing lands in the higher altitude (for example bugyals), sacred groves, and some wastelands. These are also maintained by the Forest Department. Besides herbal medicines, high quality forest of sal, teak, oak, deodar (Himalayan cedar), pine, fir and spruce are also found in the state. Among important animals includes leopard, tiger, elephant, deer, snow-leopard and various types of birds, vegetation etc. For conservation of wild animals, the state has 6 national parks, 7 animal sanctuary and 4 reserve forests. Uttarakhand has second highest number of tigers in the country. Apart from forest resources like timber etc., the forests, especially the National Parks (Jim Corbett National Park, Rajaji National Park, Nanda Devi National Park, Valley of Flowers National Park, etc) are also sources of revenue from tourist. State tree of Uttarakhand is Burans (Rhododendron), state flower is Brahmkamal and state animal is Monal.

Table 6.9. Area under Different types of Forest in Uttarakhand (Area in sq.km.)

Sl. Forest Type Group VDF MDF Open Scrub Total No. 1 Group-3 Tropical Moist 1104.44 2806.19 715.5 8.18 4634.3 Deciduous Forest 1 2 Group-5 Tropical Dry deciduous 81 851.15 568.51 78 1578.6 Forest 6 3 Group-9 Subtropical Pine Forest 768.67 4432.01 1721.4 189.1 7111.2 6 1 5 4 Group-12 Himalayan Moist 1612.45 5014.49 2434.9 28.12 9090.0 Temperate Forest 8 4 5 Group-13 Tropical Moist 199.96 171.97 75.65 1.18 448.76 Deciduous Forest 6 Group-3 Tropical Moist 185.98 709.92 131.85 9.75 1037.5 Deciduous Forest 7 Group-3 Tropical Moist 21.87 103.53 39.81 5.59 170.8 Deciduous Forest 8 Group -3 Tropical Moist 0.98 26.87 11.58 0.07 39.5 Deciduoud Forest 9 Plantation/TOF 26.65 279.87 344.66 0 651.18 Total 4002 14396 6044 320 24762 Source: Uttarakhand Environment Protection & Pollution Control Board, Uttarakhand http://utrenvis.nic.in/forest%20data.html Note: VDF: Very dense forest; MDF: Moderately dense forest

6.35. Forest resources contribute significantly to the State’s Gross Domestic Product (GSDP) by being a major source of timber, medicinal plants, grazing, recreational activities, carbon sequestration, water shed provision etc. In fact, forests are a source of livelihood for millions of Uttarakhand natives. Forest in the state is under severe pressure owing to rapid population growth. Meeting developmental, livelihood, agricultural and industrial needs and conserving forests for productive and ecological services is a major challenge. The main factors responsible for the depletion of the forest resource base are diversion of forest areas for development activities, encroachment of forest area, destruction of natural habitat, mining and quarrying, wildlife poaching, smuggling of timber, erosion of common property resources, excessive fuel wood collection and livestock grazing. Construction of new roads or widening of new roads leads to depletion of forest resources. The forest department of Uttarakhand has done commendable job in planting millions of trees that succeeded in halting quantitative depletion of forest cover. The estimation of forest cover, classified on the basis of forest canopy density, shows that the state has 4002 sq. km of very dense forest, 14396 sq. km. of moderately dense forest and 6044 sq. km of open forest. District wise forest canopy density estimates are given in Table 6.10.

Table 6.10. District – wise forest cover in Uttarakhand

District Geographical 2011 Assessment % of GA Chang Scrub 1 Area e VDF1 MDF1 OF1 Total1 Almora 3139 222 928 427 1577 50.24 0 10 Bageshwar 2246 194 883 304 1381 61.49 0 4 Chamoli 8030 427 1586 682 2695 33.56 0 6 Champawat 1766 336 571 274 1181 66.87 0 8 Dehradun 3088 584 695 328 1607 52.04 0 24 Pauri Garhwal 5329 523 2094 672 3289 61.72 0 59 Haridwar 2360 26 353 240 619 26.23 1 0 Nainital 4251 601 1923 566 3090 72.69 -3 13 Pithoragarh 7090 567 1115 412 2094 29.53 0 32 Rudraprayag 1984 246 581 298 1125 56.7 0 5 Tehri Garhwal 3642 298 1232 617 2147 58.95 0 89 Udham Singh 2542 171 247 128 546 21.48 3 0 Nagar Uttarkashi 8016 567 1959 619 3145 39.23 0 21 Total 53483 4762 14167 5567 24496 45.8 1 271 Note: 1 Area in sq km

6.36. Pauri Garhwal has the highest area (3289 sq. km.) under forest in absolute terms followed by Uttarkashi (3145 sq. km.) and Nainital (3090 sq. km.). Nainital has the highest area under very dense forest (VDF) category i.e. 601 sq.km. followed by Dehradun (584 sq.km.). Pithoragarh and Uttarkashi both have equal area under VDF ( i.e. 567 sq. km.). Under moderately dense forest

category (MDF), Pauri Garhwal has the highest area (2094 sq. km.) followed by Uttarkashi (1959 sq. km.). In Open forest category (OF), Chamoli leads the list with 682 sq. km. of area closely followed by Pauri Garhwal (672 sq. km.). In terms of share of forest area in district geographical area, Nainital (72.69 percent) is followed by Champawat (66.87 percent) and Pauri Garhwal (61.72 percent).

6.37. Deforestation is the result of rapid development in the state and also due to the increase in the population especially in the terai regions. Keeping in view the problems related to either aging of trees and or anthropogenic factors affecting tree population, the forest department have been plating trees. Over the years, both the number of plantations as well as total area under plantation has increased. The progress in this regard is presented in table 6.11.

State Sector Plans

Multi – purpose Plantation and conservation of forests 6.38. This scheme for plantation and forest conservation is in practice since 1974-75. Local natives have immensely benefitted from this scheme as they get fuel and fodder. Also, this scheme plays pivotal role in checking soil erosion due to flood in hills and minimizes flood risk in plains. During 2013-14, Rs. 967 lakhs were spent for this scheme. Next year, Rs. 1240 lakh were spent for this scheme. In 2015-16, Rs. 2039.96 lakh were spent. During 2016-17, target has been set to bring 2284 hectare of area under new plantation and 7057 hectare in the following year 2017-18.

Table 6.11. Plantation done by forest department, Uttarakhand

Year Plantation (area in ha) Plantation (no.) 2000-01 23154 62 2001-02 28712 89 2002-03 22133 109 2003-04 20545 146 2004-05 21635 155 2005-06 28483 260 2006-07 28914 255 2007-08 28829 - 2008-09 25727 - 2009-10 20945 45 2010-11 10561 67 2011-12 17029 45 2012-13 13838 33 2013-14 16991 28 2014-15 17405 176 Source: Department of Forest, Uttarakhand cited in Statistical Diary 2014-15

3. Sericulture 6.39. Directorate of Silk (DOS), under the Ministry of Horticulture, Govt. of Uttarakhand has launched several schemes to generate the employment opportunities for unemployed people as well as upliftment of the socio economic condition of rural people in the state. Uttarakhand has a long tradition and great history of silk production.

6.40. It is being told that Captain Hutton introduced sericulture in the hills of Mussoorie in the year 1858 and Messers Lister & Company took up commercial production of silk in a village on Dehradun - Haridwar Road, which is later named as “Resham Majari”.

6.41. Uttarakhand is the only state which is producing all four kind of cocoon viz Mulberry, Oak tasar, Muga and Ericulture. Uttarakhand also known as “Bowl of Bivoltine silk in India” because of its high quality Bivoltine cocoons of International grade.

6.42. Over all climatic condition of the state are very suitable for silk sector. But climatic conditions of some pockets of the state are very pleasant and advantageous for development of silk production. Mulberry sericulture is practiced mainly in plains and Doon valley with scattered occurrence in hilly region where oak Tasar culture is practiced. DOS Uttarakhand has engaged various NGO in different district of Uttarakhand to run sericulture projects for overall growth mulberry silk industry in the state as well as employment generation to the rural people. Sericulture has developed a unique perspective in the context of livelihood development and soil conservation in the plain and hills.

6.43. During the year 2014-15, actual expenditure incurred was Rs. 384.37 lakhs. Major schemes launched by the Directorate of Silk are: a) Extension of Sericulture Production at District level b) Working capital for Sericulture Cooperative Societies c) Construction and Renovation of Chawki Buildings d) Organic Sericulture Development Programme e) Plantation Development Program f) Silk Fabric Development Scheme g) Sericulture Training Scheme h) Strengthening of Uttarakhand Cooperative Silk Federation i) Assistance for supply of Disease free laying (DFL) to silk rearers (new proposed) and other centrally sponsored schemes.

6.44. Catalytic Development Program: This program is sponsored by Central Silk Board, Ministry of Textiles, Govt. of India in the ratio of 90:10 under which new silk clusters are developed in the state. The main objective of this scheme is to focus on complete and holistic development of

sericulture industry in the state. It provides a unique and effective platform for transfer of technologies evolved by the Research & Development Institutes in the field. This program aims at filling demand-supply gap through technology development and absorption, quality upgradation, investment generation, productivity improvement and employment generation, especially to women, SC/St and below poverty line farmers.

6.45. Major policy reforms undertaken by the Department of Sericulture Uttarakhand are as follows: 1. Oak tasar culture in upper hills and mulberry sericulture in Doon Valley and Tarai 2. 31 Govt. farms have been communitized to sericulture and SHGs 3. Involvement of NGOs for effective extension 4. Formation of Uttarakhand Co-operative Resham Federation 5. Leasing out of growth center (Reeling units) to entrepreneur for their capacity building 6. Raw silk production only on multi end reeling machines

6.46. New Initiatives taken by the DOS are as follows:  Promotion of “Vanya Silks”.  Promotion of farm to fabric concept/activities for value addition.  Consultancy of Chinese experts for qualitative and quantitative improvement of sericulture.  Establishment of Silk Park for promotion of post cocoon activities.  Extension of sericulture programme on cluster approach.  Strengthening of govt. silk farm especially of upper hills.

Annexure 1: Performance of State and Central Schemes, Department of Fisheries Uttarakhand Sl. Program/Scheme Physical No. Unit 2015-16 Target set for Achievement During 01-12- Target set for Other Details 2016-17 during 01-04- 2016 to 31- 2017-18 2016 to 30-11- 03-2017 Target Supply 2016

1 Schemes sponsored by Govt. of Uttarakhand 1 Development of water reservoirs (fisheries conservation in natural water streams) (District level scheme) Accumulation of fish Lakh 28.38 31.58 30.80 25.73 5.07 40.00 - seeds Workshop No. 77 77 76 29 47 76 - 2 Construction of residential and non- residential buildings for the Department of Fisheries 1) Construction of non- - Construction of Constructio Construction Construction of Construction Construction - residential buildings non-residential n of non- of non- non-residential of non- work of non- buildings residential residential building – 95 residential residential building – building percent building – 100 building in 90 percent completed percent district Udham completed completed Singh Nagar 3) Scheduled Caste Sub Plan (S.C. S P.) 1) Construction of Ponds Hectar 10.00 8.40 10.00 7.20 2.80 17.00 - in Plains e 2) Construction of Ponds Unit 200 200 200 118 82 280 - in hills 3) Training No. 220 220 220 - 220 280 - 4) Workshops No. 26 26 26 04 22 26 - 4) Tribal Sub Plan

1½ Construction of Hectar 6.00 3.60 5.00 2.00 3.00 8.00 - Ponds in Plains e 2½ Construction of Unit 85 85 88 51 37 110 - Ponds in hills 3) Training No. 74 74 74 - 74 98 - 4½ Field Visit No. 74 74 74 - 74 98 - 5) Scheme for construction of Model Fisheries Pond in hill region 1) Construction of Pond Unit 20 20 20 16 04 33 - (200 sq. meter per unit ) 6) Scheme for construction of Fisheries Pond in hill region 1) Construction of Pond Unit 132 132 132 50 50 220 - (50 sq. meter per unit ) 2 )Training No. 110 110 110 - 110 176 - 3) Field Visit No. 110 110 110 - 110 176 - 4) Workshops No. 22 22 22 01 21 22 - 7) State Fisheries Input Plan 1) Distribution of Tonnes - - 94.80 1.50 93.30 253 - Fisheries food 2) Distribution of Net No. - - 109 - 109 220 - 3) Distribution of hand No. - - 74 - 74 210 - net 4) Workshops No. - - 75 - 75 210 - 2.) Schemes sponsored by Central Govt. 1) Fisheries Development Agency Scheme ( 50 percent assistance from Central Gov.) 1) Construction of Ponds Hectar 60.00 28.50 31.50 10.90 20.60 - Schemes are in Plains e restructured 2) Repairing of Ponds in Hectar 40.00 32.58 6.68 3.91 2.77 - in new Plains e central

2) Coldwater fisheries scheme Blue development Scheme Revolution (50 percent assistance from Central Govt.) 1) Construction of Unit 416 412 666 - - - Running water pond 3) National Fisherman welfare Scheme (50 per cent assistance from Central Govt.) 1) Construction of No. 50 10 50 - 50 40 - residence for fisherman 2) Hand pump No. 04 - 04 - 04 02 -

4) Strengthening of Database and Information System (100 percent assistance from Central Govt.) 1) Collection of fisheries - - Collection of - Collection of Collection of Collection of data fisheries fisheries data fisheries state fisheries data and data and data and - preparation preparation preparing of Database of Database complete database 5) Integrated Fisheries (International water farming and Scheme is development of restructured fisheries) (75 percent in new assistance from Central central Govt.) scheme Blue 1) Integrated Fisheries - Integrated - Integrated - - - Revolution fisheries fisheries

through through societies, self - societies, help group

self - help group 6) Establishment of State level fisheries health research and water quality lab (75 percent assistance from Central Gov.)

1) Establishment of state - 01 01 purchase of - purchase of - level fisheries lab laboratory laboratory Discontinuat (100 percent equipment equipment ion of completed) scheme due to targets 7) Fisheries training and achieved promotion (80 percent assistance from Central Govt.)

1) Construction of - 01 01 - - - - awareness centre (100 percent completed)

8) Blue Revolution: Coordinated development and fisheries management program (80 percent assistance from Central Govt.)

8.1 Sweet water fisheries (Blue Revolution)

1. Construction of New Hectar - - 10.00 3.60 6.40 10.00 - Ponds e

2. Reforms of Ponds Hectar - - 5.00 0.70 4.30 6.00 - e

3. Construction of Hectar - - - - - 8.00 - Rearing tanks e

8.2 Coldwater fisheries development (Blue Revolution)

1) Construction of ponds Unit - - 60 06 54 72 - for running water fish culture

2) Construction of Unit - - 60 - 60 72 - farming unit

8.3) Skill development of fisherman (Blue Revolution)

1) Training Program ( 1 batch - - 07 - 01 04 - batch = 50 trainers)

8.4 Water reservoir fisheries – cage culture (Blue Revolution)

1) Establishment of cage No. - - 48 - 48 90 -

8.5 Solar power support system (Blue Revolution)

1) Establishment of solar No. - - 01 - 01 10 - power support system

8.6 Infrastructure and marketing (Blue Revolution)

1) Purchase of Insulated No. - - 01 - 01 - - trucks (capacity 06 tonnes)

2) Purchase of Insulated No. - - - - - 01 - trucks (capacity 06 tonnes)

8.7 Establishment of brood banks (Blue Revolution)

1 Establishment of brood No. - - 01 - 01 - Release of banks (construction complete work funds for complete) construction works during 2016-17

Annexure 2: Financial Position of various State and Central Schemes towards Fisheries Development

Sl. Program/Scheme 2015-16 Sanctioned Amount Amount Estimated Proposed Other Details No. Amount Funds outlay for 2016- released in utilized till utilization Outlay for sanctioned utilized ( 17 2016-17 30.11.2016 during 2017-18 (in Rs. Lakh) in Rs. 1.12.2016 to Lakh) 31.03.2017 1- Schemes sponsored by Uttarakhand Govt. 1) Development of water reservoirs (Fisheries conservation and 25.69 25.61 42.00 16.07 10.34 31.66 30.00 promotion in natural water sources) 2) Construction of residential and non-residential 25.00 25.00 25.00 5.58 5.58 19.42 50.00 buildings for fisheries department 3) Scheduled Caste sub plan 120.00 116.08 120.00 120.00 54.92 65.02 220.00 (S.C.S.P.) 4) Tribal Sub plan 60.00 54.12 60.00 60.00 24.97 35.03 80.00 5) Scheme for Construction of model fisheries pond in 30.00 30.00 30.00 30.00 20.70 9.30 50.00 hill regions 6) Scheme for construction of fisheries pond in hill 50.00 50.00 50.00 50.00 24.69 25.31 80.00 regions 7) State fisheries input 0.00 0.00 20.00 20.00 0.00 20.00 50.00 scheme 2- Schemes sponsored by 0.00 0.00 0.00 0.00 0.00 0.00 0.00 central Govt. 1) Fisheries development agency scheme (50 Scheme 52.00 28.28 56.00 18.67 6.05 22.23 0.00 percent assistance from restructured Central Govt.) in Blue 2) Coldwater fisheries Revolution 49.92 49.92 80.00 0.00 0.00 0.00 0.00 development scheme (50

percent scheme from Central Govt.) 3) National fisherman welfare scheme (50 8.40 8.40 40.00 0.00 0.00 0.00 54.00 percent assistance from central Govt.) 4) Strengthening of database and Information System 1.33 1.33 30.00 4.67 1.67 3.00 30.00 (100 percent assistance from Central Govt.) 5) Integrated fisheries (development of international water 0.00 0.00 50.00 0.00 0.00 0.00 0.00 farming and fisheries) (75 percent assistance from Central Govt.) 6) State level fisheries health Scheme research and restructured establishment of water in Blue 13.72 13.72 15.00 0.00 0.00 0.00 0.00 quality lab (75 percent Revolution assistance from central Govt.) 7) Fisheries training and Promotion 80 percent 15.00 15.00 20.00 0.00 0.00 0.00 0.00 assistance from central Govt.) 8) Blue Revolution (Coordinated development and fisheries 0.00 0.00 0.00 0.00 0.00 0.00 0.00 management program (80 percent assistance from Central Govt.) 8.1) Sweet water fisheries 99.00 0.00 0.00 47.85 0.00 99.00 157.50 (Blue Revolution) 8.2) Cold water fisheries 297.00 Development (Blue 0.00 0.00 108.90 0.00 108.90 356.40 Revolution)

8.3) Skill development of 29.75 fisherman/ training (Blue 0.00 0.00 17.00 0.00 12.75 18.00 Revolution) 8.4) Water reservoir fisheries – cage culture (Blue 0.00 0.00 144.0 72.00 0.00 144.00 270.00 Revolution ) 8.5) Solar power support 15.00 0.00 0.00 15.00 0.00 15.00 150.00 system (Blue Revolution) 8.6) Infrastructure and 13.50 marketing (Blue 0.00 0.00 1.80 0.00 11.70 20.00 Revolution) 8.7 Establishment of brood 0.00 0.00 500.0 28.162 28.162 471.838 0.00 Estimated cost banks (Blue Revolution) complete for construction work Total 451.06 417.46 1736.25 615.702 177.082 1094.158 1615.90 3. Externally sponsored -

schemes

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Chapter 7 Water Resources Management

7.1. Water is an elixir of life but its mismanagement is causing havoc across the Globe. Fragile ecosystems such as Uttarakhand need to pay more attention to this resource as it links to nature and sustainability, economics and social life at large as well. Uttarakhand occupies a unique significance in the water resources management for the entire country as it is home to a significant proportion of catchment area of both the Ganga and the Yamuna rivers. It is also an upcoming destination for eco-tourism creating the possibility of a tension of water availability for uses across the various sectors. Despite being home to some of the purest water from melting glaciers, hill systems are also prone to water quality distortions due to the high mineral content. The role of government policy can therefore not be overstated for Uttarakhand and this chapter is presented with this strategic linkage in mind. 7.2. The chapter presents the availability of water across groundwater and inland water sources along with stages of development and utilization of water resources followed by groundwater withdrawals across uses and the requirement of water for other uses. The next section deals with the quality of available water and fluctuations in water availability. The section following presents the situation of reservoirs, the storage capacity and water levels in the state. The last section deals with the various works taken up and assistance made available for various programmes towards water resources management in the state.

State Profile of Water Resources 7.3. The state has two hydrogeological regimes – the Gangetic alluvial plain and the Himalayan Mountain belt. The latter is more amenable to small scale development and the intersection of the two is home to some large structures such as the Tehri Dam. These are drained by major perennial rivers like Ganga, Yamuna, Ramganga, Sarda and Kali and their tributaries. The annual average rainfall of Uttarakhand is 1523 mm. Ground water in the hilly region occurs mostly in fissures / fractures and emerges as springs. The springs are amenable to small scale development of ground water resources in the State. The yield of tube wells in Siwalik formation ranges from 50.4 m3/hr to 79.2 m3/hr, in Bhabar formations yield is upto 332.4 m3/hr. In Tarai belt yield of tubewell ranges 36m3/hr to 144 m3/hr and in Indo-Gangetic plain yield varies from 90 m3/hr to 198 m3/hr. 7.4 However, around the time of the formation of the state at the turn of the century, water scarcity was an issue faced by the state and nearly 30% of the schemes suffer from a decrease in availability of water, especially during the summer months. This had caused a proportion of the villagers to spend considerable amount of time collecting water for domestic use, averaging one to three hours per day. The problem was aggravated by poor water supply systems which had outlived their design life, and inadequate O&M.

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Groundwater Resources of the State 7.5. Uttarakhand appears to be endowed with some of the most invaluable surface water resources of the nation. However, this is far from the truth as the high degree slopes renders most of the surface water unusable in the hills. This in turn necessitates the exploitation of groundwater in the hills for survival and conduct of various economic and social functions of water. Thus Groundwater Resources occupy an unseemingly high importance in the state and the management of its natural resources’ including water. 7.6. Annual replenishable Ground Water (GW) Resource of the state is pegged at 2.07 BCM out of which the net annual groundwater availability is 2.07 BCM and the annual GW draft is 1.05 BCM. This is technically stated as 51% of GW development in the state. The national annual replenishable GW resource rested at 431 BCM and the stage of development was at 61% signifying that Uttarakhand lagged behind the national development. This is something that calls for urgent attention and the government has initiated several schemes. A new water policy was called for in 2014 to take into consideration such issues of water resources management in the state. 7.7. The strategic importance of the state to the availability of water across the northern Indian plains has led to a carefully crafted strategy for conserving the GW resources of the state and 13.542 sq. kms. of area in the state has been identified for artificial recharge activities. This is expected to harness about 6578 MCM water through the feasible structures as follows:-

Table 7.1: Different structures and their feasible numbers (water harvesting) Sl.no. Structure Name No. Of Feasible Structures 1 Percolation Tank 450 2 Check Dams 2300 3 Recharge Draft 150 4 RTRWH 48250 5 Total 51150

7.8, Table7.2. presents the comparative availability of water along with the stage of development between India and the state of Uttarakhand. The table also compares the annual draft of water for irrigation and domestic & industry sectors. It is clear from the table that in terms of numbers and quantity the state of Uttarakhand has only marginal importance in the water resources management at the national level and as a result of this the stage of development of water resources in the state lags the national average. However, it is to be noted that the water resources of the state must occupy strategic importance for the national policy maker given that the state is the most important water catchment in the country. It is also interesting to note that the annual draft for domestic & industry sectors has a greater lag than for irrigation when compared to the national average. This is a very interesting

101 proposition which may signify the scope for further development of industry and tourism in the state.

Table 7. 2 Status of Ground Water Development in Uttarakhand (As on 31.03.2009) State Net Annual Annual Draft (BCM) Stage of Availability Irrigation Domestic Total Development (BCM) & Industry (%) Uttarakhand 2.07 1.01 0.03 1.05 51 India 396.06 221.42 21.89 243.32 61

Table 7.3: Availability of Groundwater across Uttarakhand as on 31-03-2011 S.N District/Block Availability of net Quantity of Percentage of water annual ground Water supplied supplied to all uses to water (H.M) to all uses (H.M) annual availability of ground water 1 Dehardun 36457.91 4505.56 12.36 (a) Doiwala 14698.89 1079.4 7.34 (b) Shashpur 15284.74 1478.28 9.67 (c) Vikasnagar 6474.28 1947.88 30.09 2 Haridwar 83299.29 50501.15 60.63 (a) Bhadrabhad 16036.61 7587.4 47.31 (b) Bhagwanpur 8783.87 8530.95 97.12 (c) Narsan 15475.1 4772.59 30.84 (d) Laskar 9163.41 7313.72 79.81 (e) Roorkee 18109.15 15758.6 87.02 (f) Khanpur 15731.15 6537.89 41.56 3 Nanital 10341.21 4456.17 43.09 (a) Ramnagar 5584.48 2589.98 46.38 (b) Haldwani 4756.73 1866.19 39.23 4 Udham singh Nagar 81638.71 64836.81 79.42 (a) Gdharpur 9203.44 8705.39 94.59 (b) Sitarganj 16899.63 11627.8 68.81 (c) Rudhrapur 10924.88 8124.81 74.37 (d) Jaspur 7039.76 5669.77 80.54 (e) Bajpur 13164.14 10491.72 79.7 (f) Kashipur 8755.3 7625.11 87.09 (g) Khatima 15651.56 12592.21 80.45

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7.9. Table 7.3 shows the availability of groundwater across the various foot hill districts of the state where agriculture is an important consumer of water. These four districts are home to most of the agricultural land of the state and also most of the water for irrigation is consumed or used in these four districts thereby their importance for and dependence on groundwater. It must be noticed from the table that the absolute quantity of water available is maximum in Hardwar followed very closely by Udham Singh Nagar. The availability is moderate in Dehradun and low in Nainital. At the same time when it comes to consumption, Udham Singh Nagar consumes the largest amount of water followed very closely by Hardwar and compared to these there is very minimal consumption of water in Dehradun and Nainital.

Table 7. 4 Ground Water Resources Availability, Utilization and Stage of Development in Uttarakhand (2009-2010) (In BCM/Yr)

Discharge

Annual Ground Annual

upto 2025 upto

Annual Annual Resources Water Ground Replenishable Total Natural Net Annual Ground Draft Water

Monsoon Monsoon

Monsoon Monsoon Season Non Season

for Future Irrigation Future for

Season

Sources

Industrial uses Industrial

Monsoon

State Rainfall from Recharge from other Recharge Rainfall from Recharge Sources from other Recharge non During Availability Water Irrigation and Domestic Total uses Industrial and Domestic for Demand Projected Availability Water Ground (%age) Development Water Ground Stage of

Uttarakhand 1.37 0.27 0.12 0.51 2.27 0.17 2.10 1.34 0.05 1.39 0.06 0.68 66.00

India 248.01 69.59 41.85 73.18 433.02 33.77 399.25 212.50 18.10 230.59 29.14 161.43 58.00

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7.10. At the micro level the percentage of water supplied to all uses as a proportion to total groundwater available varies from as low as 7.34% in Doiwala on the outskirts of the city of Dehradun to as high as 97.12% at Bhagwanpur in Hardwar district and 94.59% at Gadharpur in Udham Singh Nagar. This highlights the urgent need to focus on collecting information and also working out proposed water resources management at the micro level as 9 out of 18 micro level data are above 75% consumption of total availability and 6 above 80% and 2 above 90%. This could be a red herring of the impending issues that are about to come in the future if corrective actions are not taken currently.

Inland water resources of Uttarakhand 7.11. Tables 7.5. presents the situation of inland water resources over more than a decade since the formation of the state. It therefore provides information on the current situation and also the trend in terms of the changes observed over the period from 2002-03 till 2013- 14. It is clear from the table that the length of rivers and canals in the state has not changed over this period while there has been a minimal increase in the length of canals for the country as a whole. The reservoir capacity is constant at 0.2 lakh hectares. In between 2002-2003 and 2004-2005 there is an increase in the area under tanks and ponds to 10000 hectares. However, this is negligible to the total water resources available for the state and more can be done in this regard, especially in areas with drinking water scarcity.

Table 7.5 Inland Water Resources in Uttarakhand (2013-2014) (2004-2005)(2002-2003) (In Lakh Hect.) State Rivers Reser- Tanks Flood Plain Brackish Total Water and voirs and Ponds Lakes and Water Bodies Canals Derelict (In kms.) Water Bodies Year 2013-2014 Uttarakhand 2686 0.2 0.01 0 - 0.21 India 195095 29.26 24.24 7.98 11.55 73.03 Year 2004-2005 Uttarakhand 2686 0.2 0.01 0 - 0.21 India 192210 21.6 24.14 7.98 12.4 66.12 Year 2002-2003 Uttarakhand 2686 0.2 Neg. Neg. - 0,.20 India 195567 21.61 25.15 9.98 16.86

Demand Side of Water Resources Management in Uttarakhand

7.12. The supply side story of water is good for Uttarakhand as it is endowed with rich water resources being the lap of Himalayas and the catchment area for most of North Indian rivers. Most big rivers of North India that flow from the west to east originate in the state and then enrich the plains of UP, Bihar, West Bengal and parts of Jharkhand and Madhya Pradesh along their flow. The Demand side story is positive so far as the state reports a net positive balance

104 of water. The utilisation of water by different sectors is only about 51% of the total water available. The major sectors consuming water in the state are irrigation and domestic & industrial uses. The latter is a combined sector as the state has a lower population density and also less industrial development compared to other parts of the nation.

7.13. Table 7.6 presents the state of groundwater withdrawal for various purposes in the state as in 2009. Out of the total withdrawal of groundwater in the state only 2.85% or approximately 0.03 BCM is for domestic and industrial usage combined. The rest of groundwater withdrawal is made for the purpose of irrigation. The agricultural area in the state is not huge owing to its hilly terrain and topography for most of the area of the state. As such it is notable that water intensive crops are popular in the state and this must be kept in mind if water resources are to be conserved, especially groundwater, in the coming future. The total water used for domestic and industrial purposes in the state is 1.38% of the usage across the nation for these purposes. This is a healthy ratio indicating a good availability for these uses.

Table 7.6 Annual Ground Water Withdrawal for Irrigation/Domestic and Industrial Uses in Uttarakhand - 2009 (In BCM) State Irrigation Domestic and Total Industrial Uses Uttarakhand 1.01 0.03 1.05 India 221.42 21.89 243.32

Irrigation Demand

7.14. Table 7.7 presents the net area irrigated by various sources of irrigation in the state across the years. Tubewells are clearly the most important source of irrigation in the state despite that the area under irrigation from tubewells varies from year to year in a range of 10% on either side. The area irrigated by tubewells dropped to a low of 187,574 hectares in 2011-12 from a high of 216,100 hectares in the previous year, a drop of 13.2%. It is also notable that the state has experienced a decline in the net irrigated area from a maximum of 346,136 hectares in 2010-11 to a low of 329,964 hectares in 2014-15. This a decrease of almost 5%. The declining trend is matched by the decline in area irrigated by the canals which has fallen from a high of 95,922 hectares in 2008-09 to 78,743 hectares in 2014-15 which is a fall of 18%. The area under irrigation from other wells is on the rise and has touched a high of 41,110 hectares in 2013-14 and was down to 39,207 hectares in 2014-15. The importance of ponds and tanks seems to be falling. The importance of other sources of irrigation is also on the decline. In 2014-15, of the total net area of 329964 hectares under irrigation, 23.86% are irrigated by canals, 56.95% by tubewells and 11.88% by other wells and 7.42% by other sources of irrigation.

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Table 7.7 Net Irrigated Area by source in Uttarakhand Year Area Irrigated by source (Hects.) canal Ponds and Tubewells Other wells Other Total Tanks 2004-05 95720 206229 7528 999 34748 345224 2005-06 95608 202856 10724 334 33890 343412 2006-07 95205 199333 18544 138 31800 345020 2007-08 88727 202388 14464 114 35232 340925 2008-09 95922 198193 15587 770 29657 340129 2009-10 83927 214317 13897 15 26337 338493 2010-11 93687 216100 11519 83 24747 346136 2011-12 95548 187574 35833 390 20052 339397 2012-13 87513 188297 41110 55 20591 337566 2013-14 79463 209772 15944 57 22868 328104 2014-15 78743 187925 39207 31 24058 329964

Table 7.8 Allocation and Expenditure for Irrigation Sector in Uttarakhand (2007-2008 to 2011-2012) (Rs. in Crore) State 2007-08 2008-09 2009-10 2010-11 2011-12

Expenditure Outlay Expenditure Outlay Expenditure Outlay Expenditure Outlay Tentative Expenditure

Outlay

Uttarakhand 123.81 351.97 605.68 493.5 683.88 683.88 608.67 338.25 525.47 525.47

India 36562.82 34501 44417.88 38523.96 44724.87 40726.81 49078 42572.52 58562.69 58562.69

7.15. While the shift in irrigation sources definitely has an impact on agriculture in the state it is also indicative of shifting power and infrastructure needs for the state and can also be a function of changing cropping patterns in the state. The same needs to be investigated. This is particularly useful information for planning and preparing for investments in the much needed irrigation sector. Table 7.8. gives the allocation and expenditure for irrigation sector for the state during 2007-08 till 2011-12. The most noteworthy trend here is increasing expenditure on the irrigation sector for the state matched with a sharp increase in allocation which allows for planned investment and infrastructure development in the sector. The

106

allocation to the state is now close to 1% of the allocation for the irrigation sector for the nation as a whole. 7.16. Therefore, it is clear therefore that the irrigation infrastructure and irrigation need to be accorded proper attention in the state. There are many projects being run for the extension, renovation and modernisation of the irrigation. The details of the assistance received for this purpose from the centre for major and medium irrigation projects are given below. This clearly shows that the state has not been receiving any central assistance under the AIBP since 2005-06 which is more than a decade now while the centre is making assistance available to other states on this accord. The total assistance received by the state is only 1.25% of the total expenditure on the programme in the considered duration.

Table 7.9 Central Assistance Released for Major/Medium Irrigation Projects and Extension, Renovation and Modernisation (ERM) Projects under Accelerated Irrigation Benefit Programme (AIBP) in Uttarakhand (2004-2005 to 2012-2013) (Rs. In Crore) State Grant Released

- 2004 2005- 2006- 2007 2010- 2011- 2012-

CLA Released Total upto 2004 -05 06 07 -08 11 12 13 Cumulative CLA/ Grant Released upto 31.03.2013 Uttara- 574.23 10.5 25.023 0 0 0 0 0 609.753 khand India 16425.48 695. 1809.8 1939. 4504 4910. 3706. 3911. 48562.32 34 3 74 .68 48 81 38

7.17. Management of rising needs for irrigation and also controlling the effect of nature on farming is now a major pursuit for all farmers to end the vagaries of monsoon in agriculture. This would also help to be more certain of their yields at one hand and of better quality produce at a higher productivity on the other hand. Micro irrigation is a technology that has seen phenomenal rise in application in agriculture in the last five to ten years in the country from under 1% to almost 10% of the irrigated area of the country as a whole. Table 7.10. gives the area under micro-irrigation in the state and only 1147 hectares is reported to be under micro irrigation. Which is less than a fraction of the total area under micro irrigation across the country. This despite that the hilly tracts of the state are suitable for micro irrigation and also the water scarcity in the hilly areas and tracts would make the technology attractive especially for vegetable gardening in the backyard of the home. The same is very popular in neighbouring Nepal.

Table 7.10 Area Covered under Micro Irrigation (Drip and Sprinkler) in Uttarakhand (As on 29.02.2016) State Area Covered (In Hectare) Uttarakhand 1147 India 8146172

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Domestic water use including drinking and for cattle 7.18 Tables 7.11 and 7.12 give the estimated requirement at the district level for domestic purposes. There has been an increase of almost ten percent between 2001 and 2004 for the overall state requirement while the growth in population was observed to be only 5.2 percent. This indicates a rising trend in per capita domestic water usage in the state. This is a statistic which is not alarming currently but needs to be constantly watched for proactive policy making regarding demand side management of water resources management.

Table 7.11 Month-wise Daily Agricultural Wages in Nainital District (Haldwani Centre) of Uttarakhand (July 2014 to June 2015) (In Rs.) Nature of Labour Type of Labour July Aug. Sep. Oct. Nov. Dec. Field Labour Ploughman Male 250.00 250.00 - - - - Female ------Reaper and Male ------Harvester Female ------Sower Male 250.00 250.00 - - - - Female - 250.00 - - - - Weeder Male ------Female 250.00 - - - - - Other Agri. Labour Other Agricultural Male 200.00 200.00 200.00 200.00 200.00 200.00 Labour Female ------Skilled Labour Carpenter Male 300.00 300.00 300.00 300.00 300.00 300.00 Female - - - - -

Table 7.12 District-wise Estimated Requirement of Water for Domestic Purposes in Uttarakhand -2004 (In ' 000 Cu.metre) Districts Population Domestic Water Requirement Domestic Water (In ' 000) (Excluding Cattle) Requirement Including Cattle Rural Urban Total Rural Urban Total Almora 607 57 664 11096 4651 23860 29180 Bageshwar 254 8 263 4651 673 9441 11546 Chamoli 336 52 389 6152 4275 13973 17088 Champawat 202 34 236 3690 2822 8495 10389 Dehradun 634 713 1346 11586 58377 48408 59202 Garwal 638 95 733 11676 7778 26373 32253 Hardwar 1051 469 1520 19219 38422 54657 66845 Naintal 519 284 803 9491 23259 28873 35311 Pithorgarh 427 59 486 7815 4839 17490 21390 Rudraprayag 237 3 239 4326 235 8608 10528 Teri Garhwal 575 62 636 10511 5041 22882 27984 US Nagar 875 424 1299 16002 34756 46722 57140 Uttarkashi 285 24 310 5221 1976 11133 13616 Uttarakhand 6640 2284 8925 121436 187106 320915 392473

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7.19. Further analysing the observations from the tables we see that the percentage increase in domestic water requirement apart from water required for cattle amounts to 14.10%. This may be due to a sharp increase in per capita increase of domestic water usage in the state especially the urban areas or it could also mean a decreasing water usage for the cattle. The table also shows a near 7 per cent drop in water usage for cattle for the overall state. The corresponding increase in domestic water usage in urban areas is almost 16% whereas that in rural areas is only 1.27%. Thus we see a distinct trend of rising per capita domestic use water consumption in urban areas. 7.20 When analysing the trends at the district level we see marked differences between the various districts. The domestic water usage (excluding for cattle) has actually decreased in Nainital and Dehradun in absolute terms and in percentage terms by 2 and 21.64 percent points. The performance of Dehradun district in these terms is remarkable and laudable. The increase in domestic water usage is notable in the districts of Pithoragarh, Uttarkashi , Tehri Garhwal and Almora. This may indicate a shift in growth poles to lesser developed towns of the state compared to established big towns and tourist attractions such as Dehradun and Nainital. Thus the state now has to actively think about regional and district level policies and incentives to regulate and monitor water usage with the future in mind. Water Table Fluctuations 7.21 Table 7.13 gives the details of the fluctuations in the various monitoring wells of the state to signify the change in groundwater levels in a season and also over a decade. The data from 2013-14 indicates a very intra-state variation with a maximum rise in level of 3.32 m and maximum fall of 4.85 m whereas the minimum fluctuation recorded annually is about 4-6 inches either rise or fall. This indicates a lot of seasonal variation within a year.

Table 7.13 Annual Fluctuation and Frequency Distribution of Ground Water Level in Uttarakhand January 2013 to January 2014 January 2004 to January 2014 State Range in metre Number Range in metre Number

of wells of wells

No. of wells analysed No. of wells analysed

Rise Min. Rise max Fall Min. Fall max Rise Fall Rise min Rise max Fall min Fall max Rise Fall

Uttara khand 17 0.16 3.32 0.18 4.85 11 6 22 0.3 3.91 0.11 7.94 14 10

India 11204 - - - - 7446 3519 12269 0.01 33.32 0.01 44.23 7607 4618

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7.22 When we analyse the data for the decade (2004-14) we notice that the maximum annual rise in level is 3.91 m whereas the maximum fall is 7.94 m. This clearly indicates that there are locations in the state that are experiencing massive falls within a year and the policy makers and implementers need to take note of the same at the earliest. While the minimum fall experienced over a decade is just 11 cms. The minimum rise experienced is as high as one foot. A very important fact is that over the long term the proportion of monitoring wells which experienced a fall in groundwater level annually is much higher than we see in the snap shot of a particular year. This clearly indicates that water resource trends in the state are very near to an inflection point and this calls for early action on both the supply and demand sides of water resources management in Uttarakhand. 7.23 Table 7.14 clearly shows a significant trend (as expected in the rocky terrain of hills) in the state for falling water levels as more than half of the monitored wells showed decline. The decline of water levels in the pre-monsoon period could be as high as 1.44 m/ year which would necessitate addition of another pipe into the tube well every alternate year. Thus there is a call for action on the demand side of water in the state given that most of the irrigation in the state is dependent on tubewells and wells.

Table 7.14 Rate of Decline of Ground Water for Pre-Monsoon Period (April/May) in Uttarakhand (2007-2012) State Total No. of Wells Total No. of Wells Rate of Decline/Trend (m/yr) Analysed Showing Decline Min Max

Uttarakhand 59 32 0 1.44 India 11024 6105 - -

Quality of Water Resources with special focus on drinking water 7.24 We have assessed the availability of water in the state followed by a brief analysis of the consumption and the fluctuating water levels and changes in availability of water resources in the state. We now shift our attention to the issue of quality of water especially drinking water available in the state. Table 7.15 indicates that the water quality in the state of Uttarakhand is by and large good but there are some red herrings that are beginning to emerge and there is a need for constant and close monitoring of water quality at the local level. Probably the excessive use of inputs in agriculture is resulting in nitrate contamination reported here in the shallow aquifers. The agricultural run-off from fields through canals and other natural water bodies could be a source of contamination for these shallow aquifers. This requires further investigation and action.

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Table 7.15 Ground Water Quality in Shallow Aquifers under Central Ground Water Board (CGWB) in Uttarakhand -2010 State Fluoride Iron Arsenic Nitrate Uttarakhand - - - 6 India 927 1078 185 2429

7.25. According to a survey of drinking water supply status in rural habitation initiated by Rajiv Gandhi Drinking Water Mission of GoI in 2003, only half of the habitations in the state were fully covered with functioning water supply schemes, 385 with partially functioning water supply schemes and 12% with no coverage. The situation has since improved and even in terms of sanitation coverage the attainment rates are higher than the national average. 7.26. Table 7.16 gives the number of rural habitations with various contamination in groundwater based drinking water resources in the state and the country as a whole. The table shows that there are 9 such habitation which report contaminations in groundwater. 7 of these report Arsenic contamination and 2 of them report Fluoride contamination as on 2009. This number is miniscule compared to the numbers for the remainder of the country and as such we can infer that people of the state of Uttarakhand have access to clean and good quality drinking water in general.

Table 7.16 Number of Rural Habitations with Various Contamination in Ground Water based Drinking Water Resources in Uttarakhand (As on 01.04.2009) State Contamination-wise Number of Habitations Total Fluoride Arsenic Iron Salinity Nitrate Uttarakhand 9 2 7 0 0 0 India 179988 33071 10004 101845 32497 2571

7.27. The information presented in various tables regarding increasing per capital consumption of water of domestic purposes particularly in new growth urban areas points out the possibility of changing water balance equations at the local level. As such it is essential that the water availability be monitored at the administrative units. The national framework of classification of administrative units based on the level of exploitation of water resources (esp. groundwater) is used and table 7.17 presents that 65% of the water sources in the state are in the safe category with a sufficiently positive water balance equation whereas 29% are in the semi-critical zone which have a positive water balance but a high extraction percent whereas 6% habitations are in the very high exploitation category and are categorised as Critical. It is imperative that proper remedial action and correction measures are employed in these 35% habitations such that the water balance equation is not only sufficiently positive but such that the state continues to be a major contributor to the nation’s water resources.

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Table 7. 17 Table Status of Blocks/Mandals/Talukas in Uttarakhand (As on March 2009) State Total Safe Semi- Critical Over Number of critical exploited Assessed Number % Number % Number % Number % Units Uttarakhand 17 11 65 5 29 1 6 0 0 India 5842 4277 73 523 9 169 3 802 14

Water Storage and Situation in Uttarakhand 7.28. The condition of surface water is probably more important to the state of Uttarakhand. Table 7.18 shows the water storage capacity in Uttarakhand is of the order of 5.67 BCM. This is 2.23% of the national storage capacity and it compares favourably with the availability of 2.07 BCM of water for the state reported earlier.

Table 7.18 Water Storage Capacity in Uttarakhand (As on 14.05.2012) State Total Water Storage Capacity (BCM) Uttarakhand 5.67 India 253.388

7.29. Table 7.19 gives us the data pertaining to the storage capacity and the amount of water stored in the two major reservoirs of the state. While the total capacity of the two reservoirs is 4.81 BCM the percent storage across the years has been as low as 33% in an exceptional year and generally is as high as 62%. It must be noted that even 33% storage is more than the annual draft of water in the state at 1.05 BCM.

Table 7.19: Water Storage Capacity of Reservoirs in Uttarakhand (As on 20.08.2009 to 23.08.2012) (Storage in BCM) No. of Live 20.08.2009 19.08.2010 18.08.2011 23.08.2012 Reservoirs Capacity at Stor- %age Stor- %age Stor- %age Stor- %age Monitored FRL (BCM) age age age age 2 4.81 1.59 33 2.83 59 3.05 63 2.98 62

7.30. Table 20 gives the position of the two reservoirs individually across the same years in terms of metres of water level. It is interesting to note that the water level in metres in the reservoirs was not very low at the end of the season in any of the years. This coupled with the information given in table 7.19 shows the high fluctuation in of water storage in the reservoirs. In 2009, while the storage was only 33% of the overall water storage capacity, towards the end of the season the water tables were reasonably high to signify a very high level of fluctuation in the reservoirs. It can therefore be inferred that the management of water in these reservoirs is crucial and needs to be efficient and effective to make the most of the storage capacity.

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Table 20 Water Level in Various Reservoirs in Uttarakhand (2009 to 2012-Upto 30.09.2012) Reservoirs Full Reservoir Level in Metre Water Level in Metre at the End of Monsoon 2009 2010 2011 2012* Ramganga 365.3 337.7 364.23 361.18 352.56 Tehri 830 820 823.6 819.1 823.7

Public water bodies and various schemes & programmes for water resources management in the state 7.31. The public water bodies are a common pool resource and therefore are susceptible to all the issues of market and governance failure including externalities, information asymmetry and moral hazard. It is therefore important to invest in the upkeep of these resources and ensure their availability to the public at large (populace of the state). Table 7.21 shows that the state of Uttarakhand is rich in terms of the public water bodies and accounts for 2.16% of the total public owned water bodies in the country.

Table 7.21 Number of Public Owned Water Bodies in Uttarakhand (2005*) State Number of Public Owned Water Bodies Uttarakhand 5188 India 239138

7.32. Table 7.22 points out the lack of funding for Command Area Development and water management programme implementation. The central assistance has been made available in alternate years and that at around 1% of the national funding was allocated to the state. This is only points towards the neglect of command area development in the state and this requires to be made a priority area for policy driven action in the couple of years to come. 7.33. Government of India approved two schemes on repair, renovation and restoration of water bodies (i) one with external assistance with an outlay of Rs. 1500 crore and (ii) the other with domestic support with an outlay of Rs. 1250 crore for implementation during XI Plan Period. Under the scheme covered by external assistance, the GoI provides assistance to the extent of 25% and borrows necessary funds as loan from World Bank, 75% State share is to be borrowed from the World Bank by Concerned State. Under the scheme with domestic support funding is also in the ratio of 25:75 (Centre: State) for nonspecial category States and in the ratio of 90:10 for special category States (North Eastern States including Sikkim, HP, Uttarakhand, J&K and undivided Koraput, Bolangir and Kalahandi (KBK) districts of Orissa), drought prone/naxal affected/ tribal areas. These schemes were approved during the end of financial year 200809. Public water bodies are covered under the scheme(report of working group on rural domestic water and sanitation, twelfth five year plan 2012-207).

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Table 7.22 Central Assistance Released under Command Area Development and Water Management and Programme in Uttarakhand (2006-2007 to 2009-2010- Nov., 2009) (Rs. in Lakh) State 2006-07 2007-08 2008-09 2009-10 Uttarakhand 205.81 0 409.92 0 India 18888.71 27713.53 32429.1 19768.77

7.34. Table 7.23 gives us a brief account of the share of expenses on Direction and Administration on major, medium as well as minor irrigation projects in the state. It is interesting to note here that the percentage of direction and administration expenses vis-à- vis the working expenses is a very high figure of more than 50% . This indicates that more money is spent in creating and maintaining the water resources management bureaucracy rather than carry out work with the same amount of capital. A huge sum of close to Rs. 100 crores was spent on direction and administration indicating the high cost of institution building.

Table 7.23 Share of Expenses on Direction and Administration to Working Expenses for Major, Medium and Minor Irrigation Projects and Command Area Development Programme in Uttarakhand (2000-2001 to 2006-2007) (Rs. in Lakh) Year Working Expenses on Percentage of 10 yearly Expenses Less Direction and Direction and Interest Administration Administration vis-a- vis working Expenses 2000-01 1799.39 1321.35 73.43 2001-02 11652.97 7264.47 62.34 2002-03 14134.31 7915.41 56 2003-04 13769.82 9033.79 65.61 2004-05 15070.51 9330.08 61.91 2005-06 16506.91 9595.77 58.13 2006-07 15706.63 10579.37 67.36 63.54

7.35. The funding made available through central assistance and from international agencies such as The World Bank have been used judicially for water conservation and water harvesting and also for renovation of traditional water bodies wherever needed. While almost 16000 works were impacted in 2009-10, the number fell down to a little above 10,000 works taken up in 2010-11.

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Table 7.24 Number of Works Taken-up for Water Conservation and Harvesting, Renovation of Traditional Water Bodies in Uttarakhand (2009-2010 and 2010-2011-upto October, 2010) State 2009-10 2010-11(upto October, 2010) Water Renovation Water Renovation of Conservation of Conservation Traditional Water and Water Traditional and Water Bodies Harvesting Water Harvesting Bodies Uttarakhand 15043 1646 7508 2969 India 1097990 396358 278344 507112

Water and Sanitation in Uttarakhand 7.36. Uttarakhand was also one of the first four states that were handed over the hydro-geo- morphological (HGM) along with creation of a digital database. This was expected to catapult the state into a next level of water resources management.

7.37. River bed filtration technology developed by Uttarakhand Jal Sansthan is another excellent method of locating drinking water source at a certain distance from the major rivers. The site selection for these sources shall have to be done using detailed geo-physical studies. The ground between the river boundary and the drinking water source acts as a natural filtration media and therefore both the problems of turbidity and bacteriological contamination are drastically reduced. (report of working group on rural domestic water and sanitation, twelfth five year plan 2012-207)

7.38. The sanitation coverage in the country has increased from 21.925 in 2000-01 to 73.67% in 2011-12 and the coverage in Uttarakhand was 80.84% in 2011-12 and better than the national average. 7.39. The water supply system was affected by operation & maintenance of the tube wells, resulting in high electricity consumption, bad service delivery, more cost for operation and maintenance, and finally, immense pressure to provide interrupted water supply. In this context, the Uttarakhand Jal Sansthan developed a system called SCADA which is now used for operation and maintenance of tube wells to provide un interrupted water supply. (UJS, GoU,2011)

7.40. The current institutional setup is centralized with the two large public utilities, Uttaranchal Peyjal Nigam (UJN) that mainly constructs, and Uttaranchal Jal Sansthan (UJS) that mainly operates and maintains most of the existing water schemes. The exception to this are the 1,146 schemes built and operated by the village water and sanitation committees (VWSCs) under the first World Bank–funded Uttar Pradesh and Uttaranchal Rural Water Supply and Environmental Sanitation Project (Swajal) and about 2,448 single-village schemes

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(SVSs) which have been transferred to the GPs. Most of these 2,448 schemes transferred to the GPs, however, are facing serious problems that require some sort of rehabilitation or augmentation as well as proper hand-over arrangements to ensure that O&M can be managed by the GPs.

7.41. The Government of Uttaranchal (GoUA) has prioritized RWSS as a key area of its development agenda in its Tenth Plan (2003–07). GoUA envisages universal coverage of safe and potable water and sanitation by the end of its Eleventh Plan (2008–12). The vision also delineates the renewed institutional structure of the state as: “the rural local government in partnership with rural communities, shall plan, design, construct, operate, and maintain their water supply and sanitation schemes; so that they get potable water and attain health and hygiene benefits; GoUA and its sector institutions shall act as supporter, facilitator, and co- financier and as per need shall provide technical assistance, training and cater for bigger construction works and sectoral contingencies. The institutional, legal, and financial changes will be brought in by 31st March 2007 and ultimate realization of the VISION will be expected in year 2012.” (World Bank Document on URWSSP, 2006)

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Chapter 8 Industries, Mining and Energy

8.1 Since its inception as the 27th state of India, Uttarakhand has made remarkable progress in terms of industrial development. Uttarakhand recorded the highest industrial CAGR of 16.5% among all the states between 2004-05 and 2014-15 (whereas the national average was 7.2% during the same time period). The Concessional Industrial Package (2003) from Government of India, along with apt support provided at the local level, played a major role in facilitating this remarkable feat of achievement. The robustness of the state’s industrial progress can be evidenced by the fact that in 2014-15, the share of secondary sector in the GSDP was 39%. The share of manufacturing itself in GSDP was 26% in 2014-15. 8.2. The slow economic growth of Uttarakhand region before 2000 gave rise to a massive outflow of people from the state. The industrial growth in Uttarakhand region was only 1.4% during 1993-94 to 1999-00. At the time of its creation, the state lacked in infrastructure, connectivity, availability of raw materials, and access to markets. There was no industrial policy in place either. According to Uttarakhand’s Directorate of Industries data, in 2000, there were only 40 functional large industrial units (out of 100), worth Rs. 8,301 crores of investment, and employing around 29,650 people. The contrast is evident if we compare this with March 2016 figure, when the state had 272 functional large industrial units, worth Rs. 34,925 crores of investment, employing 1,00,752 people. Similarly, in 2000, Uttarakhand had about 14,163 functional (out of 29,000) small scale industrial units (MSME/SSI), worth Rs. 700 crores of investment, and employing 38,509 people. In comparison, in March 2016, the state had 50,407 functional small scale industrial units, worth Rs. 10,271 crores of investment, and employing 2,38,351 people. This is a remarkable turn of events considering how little resources the state started out with. 8.3. The state of public sector enterprises was also abysmal during the creation of the state. Only BHEL (Haridwar) and BEL (Kotdwar) were working properly. IDPL (Rishikesh) and HMT (Nainital) became sick. State enterprises like Sugar Factories, Soybean Factory (Lalkuawn), Hiltron (Bhimtal), and GMVN and KMVN operated units became either sick or got closed. 8.4. The turnaround of Uttarakhand’s industrial status started with the announcement of Concessional Industrial Package (CIP) in 2003. The state government also came out with Industrial Policy 2003 with clear guidelines to create an investor friendly state. Before the creation of the State, there was very little infrastructural and industrial development in the region. As almost 65% of the state comes under forest area, industrial or any other economic activities cannot be undertaken in these areas. However, the state provides valuable public goods to the nation in the form of the forest cover, rivers, and all other associated environmental and ecological benefits. A compensatory mechanism needs to be put in place in order to support the development of infrastructure and capacity building in an environment-friendly way. Due to the lack of infrastructure, Hills have seen very little industrial development, causing large scale migration of the educated youth to the Metropolitan Areas. The lopsided industrial development in the state is a cause of concern,

117 and without employment generation soon the Hills of Uttarakhand will become deserted. Many villages in the hills districts of Uttarakhand have already reached historically low population levels with only one or two residents left in them. The skill development opportunities in the hills districts are few and far between. The entrepreneurial drive of the educated youth in the Hills also gets blocked by the unsympathetic view of banks in terms of providing adequate commercial loans to people living in remote areas. This phenomenon is particularly saddening since Uttarakhand’s hills districts contain immense potential to be developed as horticulture and floriculture hubs, eco-tourism destinations, and clusters of other MSME industries. The state government has taken proactive steps over the last decade and a half to turn Uttarakhand into an industrial hub. Due to this impressive industry-driven growth, Uttarakhand’s economy also grew at 12.08% in between 2004-05 to 2014-15. Several integrated industrial estates (IIE) have been created in Uttarakhand since its birth. Pharmacity and IT Park in Dehradun, IIE BHEL in Haridwar, IIE in Pantnagar, SIDCUL and ELDICO-SIDCUL in Sitarganj, and Development Center in Kotdwar have been instrumental in establishing Uttarakhand in the industrial map of India. The industrial estate in Pantnagar hosts Tata Motors, Ashok Leyland, and Bajaj Auto. Their suppliers and vendors have also located themselves in this cluster. In Haridwar IIE, Hero Group and Mahindra & Mahindra have set up shops. Both Allopathic and Ayurvedic drug manufacturers have located themselves in the Pharmaceuticals cluster of Dehradun. Among agro-based industries in Uttarakhand, Nestle, Britannia, Haldiram, Parle, and Dabur have established factories in Pantnagar, ITC in Haridwar, and Heinz in Sitarganj. Following industrial development in the state, the tax revenues have also increased steadily over the years. In 2001-02, total tax revenue for the state was Rs 894.67 crores. In 2014-15, total tax revenue for Uttarakhand jumped to Rs 8338.47 crores. Revenue from Stamps and Registration Fees increased from Rs 89.45 crores in 2001-02 to Rs 714.06 crores in 2014-15. State excise increased from Rs 232.03 crores in 2001-02 to Rs 1486.66 crores in 2014-15. Tax on Sales, Trade, etc. jumped from Rs 486.20 crores in 2001-02 to Rs 5464.84 crores in 2014- 15. However, the state faces a number of challenges owing to its hilly terrain. As 86% of the state belongs to hills region, accessibility poses a severe challenge to industrial development in the Hills. Uttarakhand has 2000 villages at a distance of more than 5 km from the nearest road, and about 5000 villages in the state are not connected by roads. About half of the villages in the state have less than 200 people living in each of them, and about 80% of the villages have less than 500 in population. Almost 45% of the towns in the state has less than 10,000 people. The state also suffers from natural calamities from time to time, making private sector apprehensive about setting up factories here. As 65% of total area in the state belongs to forest land, no factory can be set up there. The burden of compensatory afforestation, cancellation of hydro-power projects, delay in procurement of environmental clearances, and ban on economic activities in the majority of the state have contributed to the lacklustre industrial development in the Hills of Uttarakhand. A special policy for industrial development in the Hills was introduced first in 2008, and then amendments were made in 2011. This

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Special Integrated Industrial Development Policy for the hills region provided fiscal incentives for setting up industries in the hitherto untapped territories. Under this policy, Category-A regions included Pithoragarh, Uttarkashi, Chamoli, Champawat and Rudraprayag, and Category-B regions included Pauri Garhwal, Tehri, Almora, Bageshwar and hilly areas of Dehradun district. Category-A regions received much higher incentives than Category-B regions in the form of Special Capital Investment Subsidy, Special Interest Subsidy, Stamp Duty Exemption on Purchase/Lease of Land, Infrastructure Development Subsidy and Reimbursement of VAT. In order to preserve the delicate ecological balance in these areas, only the non-polluting industries (Tourism, Biotechnology Industry, Protected Agriculture and Cold Storages, Petrol and Diesel Pumping Stations and Gas Storages, as well as service sector industries) as mandated by the Ministry of Environment and Forests, Government of India were allowed to operate under this policy. However, due to the reasons already mentioned, this policy failed to generate much interests. The Concessional Industrial Package of 2003 provided 100% central excise exemption on items other than mentioned in the negative list, 100% income tax exemption for first 5 years and 30% for next 5 years for the companies and 25% for others, capital investment subsidy of 15% with a maximum of Rs. 30 Lakhs, and central transport subsidy. The state took full advantage of it and went for aggressive industrialisation. However, most of the units will be completing their exemption period in the next 2 years, and investment intentions have already started to decline as a result of that. The state has taken steps to ensure that the growth of industrial development is sustained. One such example is the effort to increase the ease of doing business in the state. National Council of Applied Economic Research recently ranked the state as 8th among all the Indian states as per their State Investment Potential Index. However, major infrastructural overhaul is needed if the momentum has to be maintained. Logistics costs are an important part of the decision-making process of firms regarding their location choice. The manufacturing units operating out of Uttarakhand depend on other parts of the country or outside country to get their raw materials. Hence, logistical support needs to be provided to the units here, and massive connectivity initiatives need to be taken in order to avoid any kind of infrastructural bottlenecks. The available infrastructures are already under tremendous pressure to match the demand, and timely solutions need to be implemented. The state is also focussing on the MSME sector as a source of employment generation and for spreading industrial development in the remote locations. MSME sector contributes to about 40% of Uttarakhand’s GSDP. The auto and other ancillaries have been instrumental in setting up good number of MSME units in the plains region. However, the hills region has so far not obtained many of these units. However, this is slowly changing as several opportunities are opening up with proactive state support. With a new entrepreneurial drive, the educated youth in the Hills have started developing eco-tourism destinations among other things. Uttarakhand Handloom & Handicrafts Development Council has created “Himadri” brand to market the handlooms and handicrafts products of the local artisans. They have also taken up the skill development initiative of the local artisans by pairing them with reputed designers in order to develop quality new products. However, this initiative needs to be scaled up.

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8.5. Industrial development has been one of the cornerstone of policymaking in the state of Uttarakhand since its formation. The Industrial Policy 2013 and MSME Policy-2015 (Micro, Small & Medium Enterprise Policy-2015) have been devised specifically to achieve this goal. 8.6. The Industrial Policy 2013 focussed on the industries more suitable for the state of Uttarakhand. By targeting sectors such as Tourism, Hydro-power, Floriculture, Agro and Food processing, Handloom, Khadi and Village Industries, this policy aimed to maximize the potential gain from an industrialization drive while keeping in mind the delicate ecosystem of the state. 8.7. Keeping in mind the requirements of industry, the Industrial Policy 2003 stresses the importance of creating an investor friendly environment in the state. The need to clear infrastructure bottlenecks, ease regulatory requirements, make land available for industrial purposes, foster public-private partnerships in infrastructure development, provide uninterrupted power supply, and simplify labor laws has been pointed out in this policy. Further emphasis has been placed on the development of Small scale, Cottage and Khadi and Village Industries and Handicrafts, Silk and Handloom sector which use more intensively the local resources available in the state. However, as the development of skill and developing industries go hand in hand, this policy also identifies the importance of setting up research facilities and skill upgradation centres with help from the institutes of higher learning already operating in the state. 8.8. Some of the major initiatives in the Industrial Policy 2003 have been “100% Central Excise exemption for 10 years on items other than those mentioned in the negative list in the Concessional Industrial Package announced by the Central Government” and “100% Income Tax exemption for first 5 years and 30% for next 5 years for the Companies and 25% for others” (Uttarakhand Industrial Policy 2003). There are also provisions for capital investment subsidy of 15% (maximum Rs. 30 lakhs), and exemption from entry tax on plant and machinery for establishment, expansion, or modernization of industries. To facilitate single window contact, information, and facilitation, District Industries Centres at the district level and State Industrial Development Corporation of Uttaranchal Limited (SIDCUL) at the state level will remain operational. The state government will also help industrialists and entrepreneurs with land acquisitions and stamp duty concessions will be provided as well. 8.9. Another important policy in the context of industrial development in Uttarakhand has been the MSME Policy-2015. This policy aims to develop the MSME sector by pursuing several incentive schemes. One of the salient features of this policy is that it divides the entire state into four different categories, and devises different incentive schemes and regulatory frameworks for different categories. For example, industries setting up in category A region are entitled for investment promotion assistance or capital subsidy of 40% of fixed capital investment (maximum up to Rs. 40 lacs). Industries setting up in categories B, C, and D are entitled for respectively 35% (maximum up to Rs. 35 lacs, 30% (maximum up to Rs. 30 lacs, and 15% (maximum up to Rs. 15 lacs of fixed capital investment amount in the form of capital subsidy. Along with capital subsidy, provisions have also been made for various other assistance such as interest subsidy, reimbursement of VAT, concession on stamp duty, reimbursement of electricity bills, and special state transport subsidy.

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8.10. Other than different forms of subsidies, the MSME Policy-2015 also specifies other forms of assistance to be provided in order to encourage the growth of MSME sector in the state. For example, infrastructural support, institutional support, promotion of self- employment, and women entrepreneurship are mentioned as priorities, and various forms of measures are being adopted to encourage this development.

Table 8.1: Category-wise division of regions in Uttarakhand for MSME Policy-2015

Category Regions Included Category  Whole Districts of Pithoragarh, Uttarkashi, Chamoli, Champawat, A Rudraprayag and Bageshwar. Category  Whole Districts of Pauri Garhwal, Tehri Garhwal, Almora, B  All hilly development blocks of District Dehradun other than Vikasnagar, Doiwala, Sahaspur and Rajpur.  All hilly development blocks of District Nainital other than Haldwani and Ramnagar. Category  Regions located above 650 meters from sea level of Raipur, Sahaspur, C Vikasnagar and Doiwala development blocks of District Dehradun.  Ramnagar and Haldwani development blocks of District Nainital. Category  Whole Districts of Haridwar and Udham Singh Nagar D  Remaining area of District Dehradun and Nainital (which are not included in category ‘B’ and ‘C’). Source: Uttarakhand MSME Policy-2015, Government of Uttarakhand

8.11. Other than these two policies, several other policies like Mahila Udhyami Vishesh Protsahan Yojana, and Chief Minister Swarojgar Yojana have also been floated to foster industrial development in the state.

Table 8.2: Estimate of some important characteristics in the organized manufacturing sector for Uttarakhand 2014-15 2013-14 2012-13 2011-12 2010-11 Characteristics Uttarakhand Uttarakhand Uttarakhand Uttarakhand Uttarakhand Number Of 2987 2936 2911 2843 2739 Factories Fixed Capital 5104228 5479327 5299803 5066863 3621335 Working 1317403 822018 2255972 2125570 1368388 Capital Invested 7212165 7632858 7447010 7144048 5271083 Capital

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Outstanding 1358043 1435459 1227743 1613772 1542502 Loans Number of 295217 312131 267268 273464 234332 Workers Total Persons 374861 386654 335300 342385 289957 Engaged Wages to 354985 341534 283011 248689 196762 Workers Total 718428 651128 555961 488645 373153 Emoluments Prov. Fund 95501 92047 84940 74132 56197 and Other Welfare Exp. Fuels 546220 499264 508621 408747 384926 Consumed Materials 11931929 11498797 10645747 9225577 6488799 Consumed Total Inputs 14337076 13485768 12582556 11025346 7675523 Value of 18984940 17725377 16627937 14474752 10950453 Output Depreciation 486217 453199 415515 385046 278913 Net Value 4161647 3786410 3629866 3064360 2996017 Added Net Income 3860572 3486729 3350773 2750166 2800161 Gross Capital 270778 722267 813805 1503820 1005798 Formation Profits 3046643 2743554 2709872 2187389 2370811 Value figures in Rs. Lakhs others in Number; Source: Annual Survey of Industries, Indiastat.com

8.12. Since its inception, the state of Uttarakhand has seen a steady growth in its organized manufacturing sector. In table 8.2, we have described some important characteristics of the organized manufacturing sector over the years. This data includes industrial units with ten or more workers working on any day of the preceding twelve months and the manufacturing process being aided by power, or with twenty or more workers working on any day of the preceding twelve months and the manufacturing process not using power. As graph 8.1 shows, the total number of factories in organized manufacturing has been growing over the years in Uttarakhand. The total number of industrial units in the organized manufacturing sector in Uttarakhand increased from 2739 in 2010-11 financial year to 2987 in 2014-15 financial year.

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Graph 8.1 Number Of Factories in Organized Manufacturing in Uttarakhand (Data Source: Annual Survey of Industries, Indiastat.com) 3050

3000

2950

2900

2850

2800 Numberfactories of 2750

2700 2010-11 2011-12 2012-13 2013-14 2014-15 Year

Graph8.2 Number of Workers in Organized Manufacturing in Uttarakhand (Data Source: Annual Survey of Industries, Indiastat.com) 320000

300000

280000

260000

240000 Numberworkers of 220000 2010-11 2011-12 2012-13 2013-14 2014-15 Year

The number of workers employed in organized manufacturing in Uttarakhand also grew steadily over the years, from 234332 in 2010-11 to 312131 in 2013-14. However, there was a drop in the total number of workers in 2014-15 to 295217. If we want to see the number of plants categorized into heavy enterprises, and micro, small, and medium enterprises, then we can again find a steady growth in employment and investment in the state (table 8.3).

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Table 8.3: Category wise distribution of industries in Uttarakhand 2014-15 2013-14 2012-13 2011-12 2010-11 Heavy Enterprises Number of Plants 272 230 230 218 211 Investment (Rs. Crores) 34925.6 27450.81 27450.81 27074.15 27962.56 Employment 100752 85333 85333 83302 81633

Micro, Small, and Medium Enterprises Number of Plants 47478 44809 42340 40049 37928 Investment (Rs. Crores) 9536.28 9002.785 8380.03 7212.26 6280.48 Employment 220880 208846 196004 177615 162453 Source: Statistical Diary of Uttarakhand 2014-15, 2013-14, 2012-13

8.13. Different industry wise growth in the number of factories, factories in operation, invested capital (in Rs. Lakhs), number of persons engaged, total mandays employed (in ‘000), and wages and salaries including employers’ contribution (in Rs. Lakhs) are given in tables 1.4a, 1.4b, and 1.4c for the years 2013-14, 2011-12, 2010-11 respectively. As can be seen, from table 1.4a, in terms of total capital invested in 2013-14, “Motor Vehicles, Trailers and Semi: Trailers” was the leader with Rs. 960123 Lakhs invested, followed by “Rubber and Plastics Products” (Rs. 691758 Lakhs invested capital) and “Paper and Paper Products” (Rs. 573603 Lakhs invested capital) industries. In terms of number of factories in operation in 2013-14, “Pharmaceuticals, Medicinal Chemical and Botanical Products” had the highest number of factories (308), followed by “Electrical Equipment” (286) and “Food Products” (278). 8.14. “Motor Vehicles, Trailers and Semi: Trailers” industry generated the highest number of employment (total number of persons engaged was 54356) in 2013-14, followed by “Pharmaceuticals, Medicinal Chemical and Botanical Products” (total number of persons engaged was 45228) and “Electrical Equipment” (total number of persons engaged was 42059) industries. Overall, the major industries have been growing in Uttarakhand over the last few years in terms of number of factories in operation, capital invested, and employment generated.

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Table 8.4a: Estimate of some important characteristics of Different Industries in Uttarakhand (By Two-Digit of NIC 2008), 2013-14 (Value figures in Rs. Lakhs, others in Number) Characteristics Number Factories Invested No of Total Wages & Of in Capital Persons Mandays Salaries Factories Operation Engaged Employed Includ. (No.) (In ' 000) employers' contribution All 2936 2656 7632858 386654 117870 743175 Food Products 363 278 557992 27701 8605 53210 Beverages 17 17 36722 2643 804 3777 Textiles 43 41 264251 7452 2462 10599 Wearing Apparel 15 14 13010 1365 412 2280 Leather and Related 63 62 45620 9125 2663 11148 Products Wood and Products of 40 31 113466 3158 1009 6821 Wood and Cork, Except Furniture Paper and Paper 192 181 573603 17922 5499 29999 Products Printing and 29 25 14186 1938 579 3789 Reproduction of Recorded Media Coke and Refined 15 14 2853 595 184 811 Petroleum Products Chemicals and Chemical 201 157 445551 21252 6667 39937 Products Pharmaceuticals, 311 308 559945 45228 13759 78923 Medicinal Chemical and Botanical Products Rubber and Plastics 306 275 691758 33987 10213 54361 Products Other Non : Metallic 84 70 272592 8711 2591 15744 Mineral Products Basic Metals 118 117 196203 8924 2638 23771 Fabricated Metal 141 124 143052 10935 3328 19506 Products, Except Machinery and Equipment Computer, Electronic 106 100 224683 15767 4716 31130 and Optical Products Electrical Equipment 313 286 394917 42059 12688 57536 Machinery and 82 79 481429 21384 6884 105556 Equipment N.E.C. Motor Vehicles, Trailers 274 263 960123 54356 16488 94547 and Semi : Trailers

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Other Transport 72 71 304620 26607 8260 47856 Equipment Manufacture of 19 19 10240 1254 381 1951 Furniture Other Manufacturing 62 60 71858 7868 2001 9516 Other 70 63 1254185 16427 5038 40404 Source: Annual Survey of Industries, Indiastat.com

Table 8.4b: Estimate of some important characteristics of Different Industries in Uttarakhand (By Two-Digit of NIC 2008), 2011-12 (Value figures in Rs. Lakhs, others in Number) Characteristics Number Factories Invested Number Total Wages and Of in Capital of Mandays Salaries Factories Operation Persons Employed Including Engaged (In ' 000) employers' (No.) contribution All 2843 2521 7144048 342385 105923 562777 Food Products 357 321 536110 25535 7972 36121 Beverages 24 23 206408 3011 1008 7152 Textiles 45 43 209209 7309 2403 6985 Wearing Apparel 12 10 11041 1114 338 1421 Leather and 56 53 41792 7554 2296 7761 Related Products Wood and 39 33 118772 3214 996 4736 Products of Wood and Cork, Except Furniture Paper and Paper 172 152 546526 16126 5283 24493 Products Printing and 29 22 13400 2200 681 3112 Reproduction of Recorded Media Coke and Refined Petroleum Products Chemicals and 183 160 244848 16908 5063 21161 Chemical Products Pharmaceuticals, 318 275 449913 44850 13883 73235 Medicinal Chemical and Botanical Products Rubber and 350 319 691849 34299 10369 43891 Plastics Products

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Other Non : 100 91 257706 11450 2656 8178 Metallic Mineral Products Basic Metals 119 83 212649 7042 2125 18200 Fabricated Metal 122 114 110269 12985 3947 14842 Products, Except Machinery and Equipment Computer, 82 67 159521 12251 3719 19213 Electronic and Optical Products Electrical 288 256 359743 33163 10078 39149 Equipment Machinery and 66 52 517151 16878 5139 82301 Equipment N.E.C. Motor Vehicles, 276 263 958042 55155 17265 79871 Trailers and Semi : Trailers Other Transport 54 45 234400 18853 5950 27428 Equipment Manufacture of 14 11 25455 1224 373 1501 Furniture Other 62 59 86849 8114 2405 15871 Manufacturing Other 70 70 1152396 6422 1974 22882 Source: Annual Survey of Industries, Indiastat.com

Table 8.4c: Estimate of some important characteristics of Different Industries in Uttarakhand (By Two-Digit of NIC 2008), 2010-11 (Value figures in Rs. Lakhs, others in Number) Characteristics Number Factories Invested No. of Total Wages and Of in Capital Persons Mandays Salaries Including Factories Operation Engaged Employed employers' (No.) (In ' 000) contribution All 2739 2424 5257320 288261 89389 428671 Food Products 346 270 382693 23619 7263 30366 Beverages 17 17 22796 1111 350 1438 Textiles 38 35 211095 6634 2201 6978 Wearing Apparel 14 14 21002 1871 573 1903 Leather and 69 59 38876 7373 2248 6396 Related Products Wood and 34 33 117879 3693 1115 4468 Products of Wood and Cork, Except Furniture

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Paper and Paper 143 130 334242 12584 4231 19689 Products Printing and 46 39 24230 4370 1357 5081 Reproduction of Recorded Media Coke and 10 7 675 150 46 201 Refined Petroleum Products Chemicals and 195 188 344961 20408 6302 26587 Chemical Products Pharmaceuticals, 306 261 416233 31609 9901 38521 Medicinal Chemical and Botanical Products Rubber and 306 277 744525 28867 8878 35910 Plastics Products Other Non : 99 89 252237 6377 2011 8540 Metallic Mineral Products Basic Metals 118 108 221438 8161 2502 18868 Fabricated Metal 116 110 136811 9113 3081 13348 Products, Except Machinery and Equipment Computer, 117 86 141821 11076 3347 15416 Electronic and Optical Products Electrical 266 231 390351 34972 10603 37038 Equipment Machinery and 94 81 466053 15166 4608 74416 Equipment N.E.C. Motor Vehicles, 215 208 571931 36548 11121 47027 Trailers and Semi : Trailers Other Transport 61 59 165401 17253 5355 20430 Equipment Manufacture of 13 13 6599 1021 308 1514 Furniture Other 50 48 61019 3877 1230 10826 Manufacturing Other 62 58 184453 2410 759 3705 Source: Annual Survey of Industries, Indiastat.com

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8.15. The mining activity in the state of Uttarakhand has also seen an increase over the years in the recent past. For example, number of steatite mines being operated in Uttarakhand went up from 12 in 2000-01 to 38 in 2010-11.

Table 8.5: Mineral Production and Value (Excluding Atomic Minerals) in Uttarakhand

Years Numbers Minerals Dolomite Limestone Magnesite Talc/ Minor (In ' 000 (In Tonne) Soapstone/ Minerals@ Tonne) Steatite (In Tonne) 2000- No. of 15 - 1 2 12 - 01 Mines Quantity - 19 46265 44708 - Value 54584 - 1795 34065 18724 - 2001- No. of 20 - 1 2 17 - 02 Mines Quantity - 40 46806 58770 - Value 62470 - 3767 32775 25928 - 2002- No. of 28 - 1 2 25 - 03 Mines Quantity - 44 53176 95423 - Value 100298 - 4170 38471 57657 - 2003- No. of 24 - 1 2 21 - 04 Mines Quantity - 24 54002 84176 - Value 74634 - 2320 38473 33841 - 2005- No. of 36 - - 2 34 - 06 Mines Quantity - - 20 5650 131054 - Value 588996 - 1951 47000 64891 475154 2006- No. of 37 - - 2 35 - 07 Mines Quantity - - 32 56882 172273 - Value 636712 - 26996 55041 79521 475154 2007- No. of 35 - - 2 33 - 08 Mines Quantity - - - 63830 178901 - Value 644852 - - 60603 109095 475154 2009- No. of 34 - - 2 32 - 10 Mines Quantity - 63 - 59187 145770 - Value 867294 6 - 72332 158589 636367 2010- No. of 40 - - 2 38 - 11 Mines Quantity - 96 - 58341 172137 - Value 882009 9 - 74750 170883 636367

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2011- No. of 35 - - 2 33 - 12 Mines Quantity - 87 - 62124 145010 - Value 880851 8 - 79068 165408 636367 2012- Quantity - 0 - 52370 114322 - 13 Value - 0 - 79215 174387 - 2013- Quantity - 12 - 44229 81504 - 14 Value - 1 - 52962 138693 - 2014- Quantity - 5342 - 51295 78735 - 15 (P) Value - 3900 - 66855 146832 - Total - 4793004 9524 41182 1385787 2847512 3334563 Note: The number of mines excludes minor minerals @: Figures for earlier years have been repeated as estimates. because of non-receipt of data. Source: Indiastat.com, Ministry of Mines, Govt. of India. (11525), (ON429), Indian Bureau of Mines, Govt. of India. (ON878) & Lok Sabha Unstarred Question No. 3162, dated on 04.08.2016.

8.16. One of the problems in Uttarakhand has been the prevalence of illegal mining. As Uttarakhand is an ecological marvel, the local administration has put considerable time and effort to stop illegal mining in Uttarakhand. The Uttarakhand Mineral Policy of 2011 also talks about specific steps to curb this problem. It is expected that with the introduction of demonetisation, this problem will get to be reduced as most of the participants in illegal mining were being paid in now illegal currency notes (Times of India, Nov 25 2016).

Table 8.6: Electrical energy capacity, production, and percentage loss 2010-11 2011-12 2012-13 2013-14 2014-15 Electrical Energy Capacity (MW) 1305.90 1306.25 1310.25 1296.85 1290.10 Electricity Production (MU) 4906.27 5261.82 4812.11 4411.83 4348.95 Percentage Loss 21.61 19.96 20.50 19.18 18.63 Source: Statistical Diary of Uttarakhand 2012-13 & 2014-15

Table 8.7: Length of Electrical Cable in Uttarakhand (in KM) 2010-11 2011-12 2012-13 2013-14 2014-15 800 KV Cable - - - - - 400 KV Cable 172.00 280.00 388.00 388.00 388.00 220 KV Cable 679.00 699.00 769.00 769.00 807.00 132 KV Cable 1372.00 1663.00 1803.00 1820.00 1822.00 33 KV Cable 3964.15 4106.26 4199.35 4434.00 4525.82 11 KV Cable 34560.94 34973.79 36191.77 37119.85 38204.14 LT Line 50248.33 50743.48 51741.99 52932.55 59401.39 Source: Statistical Diary of Uttarakhand 2012-13 & 2014-15

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8.17. The power production in Uttarakhand over the years are depicted in table 8.6. Table 8.7. shows the length of electrical cable being laid in the state. As is evidenced by data, the electrification initiative has been in progress in Uttarakhand as the length of LT cable (low tension line) increased from 20248.33 KM in 2010-11 to 59401.39 KM in 2014-15. The LT line is predominantly used to supply residential or small office units. The 11 KV or higher intensity cables are used mainly to supply large industrial enterprises, and this capacity also increased from 34560.94 KM in 2010-11 to 38204.14 in 2014-15. 8.18. The various usage of electrical power in Uttarakhand can be checked from table 8.8. The domestic and industrial usages of electric power have been on the rise in Uttarakhand over the years. However, the commercial and agricultural usages have been erratic, as can be seen from the table.

Table 8.8: Usage of Electrical Energy in Uttarakhand (in MU Watt) 2010-11 2011-12 2012-13 2013-14 2014-15 Domestic 1484.86 1675.94 1967.11 2106.20 2274.01 Commercial 941.90 1054.85 953.94 1411.23 1067.96 Industrial 4197.73 4805.51 4884.88 5092.57 5371.27 Public Lighting 53.88 66.90 69.83 44.06 46.84 Agricultural 295.98 325.03 257.63 344.76 107.64 Public Water Works and 276.38 324.52 442.83 303.32 316.64 Sewage Pumping Total 7250.73 8252.75 8576.22 9302.14 9184.36 Source: Statistical Diary of Uttarakhand 2012-13 & 2014-15

Table 8.9: Villages with electricity in Uttarakhand Year Number of Villages with Electricity Number of tube wells/ pump sets energised 2000-01 12563 16603 2001-02 12645 16793 2002-03 12863 17007 2003-04 13698 17508 2004-05 14430 17838 2005-06 14660 18910 2006-07 14729 19417 2007-08 14923 20119 2008-09 15083 21040 2009-10 15270 21915 2010-11 15298 21915 2011-12 15285 24005 2012-13 15293 25319 2013-14 15298 26612 2014-15 15252 27748 Source: Statistical Diary of Uttarakhand 2014-15

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8.19. The number of villages in Uttarakhand with electric supply has also been increasing. Table 8.9 shows that from 12563 in 200-01, the number of villages with electricity in Uttarakhand went up to 15252 in 2014-15. Number of tube wells and pump sets using power also increased from 16603 in 2000-01 to 27748 in 2014-15. 8.20. The comparison in terms of average power tariff between Uttarakhand and the rest of India for industrial purposes shows that Uttarakhand also holds an edge as the average power tariff in the state is 413.46 Paise per Kwh, whereas the average for the rest of India is 625.89 Paise per Kwh. The same trend follows for other categories of power use, except for agricultural use where the average tariff is higher than the rest of India (table 8.10).

Table 8.10: Consumer Category-wise Average Power Tariff in Uttarakhand (In Paise/Kwh) Domestic Commercial Agriculture Industrial Railway Outside Overall /Irrigation Traction State Average 2009-10 Uttarakhand 217.88 391.83 160.49 383.04 530 529.06 333.71 India 275.82 525.76 100.97 449.99 498.48 392.39 333.44 Average

2010-11 Uttarakhand 241.54 415.56 162.63 414.42 512.82 583.6 364.3 India 301.88 642.61 138.13 486.47 494.34 346.3 367

2011-12 Uttarakhand 238.56 411.16 177.02 418.15 486.29 0 365.95 India 313.72 689.88 143.64 513.92 553.93 368.14 387.31

2012-13 Uttarakhand 283.66 449.7 228.6 414.16 466.74 0 384.04 India 359.1 754.09 165.39 596.8 627.46 384.7 438.96

2013-14 Uttarakhand 283.16 450.13 228.65 413.46 502.14 0 383.64 India 407.84 764 183.06 625.89 663.85 325.01 479.84

Source: Indiastat.com

8.21. Tables 8.11, 8.12, and 8.13 show the State Gross Domestic Product (SGDP) from manufacturing, growth rate of SGDP from industry, and the percentage distribution of SGDP from organized and unorganized manufacturing respectively. Although the growth rate of the industrial component of SGDP was 14.25% in 2012-13, it has since decreased by a wide margin (2.19% in 2015-16).

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Table 8.11: STATE DOMESTIC PRODUCT FROM MANUFACTURING (AT CONSTANT (2011-12) PRICES) (in Rs. Lakhs) ITEM 2011-12 2012-13 2013-14 2014-15 2015-16 Registered Manufacturing 4470814 5006634 5084497 5296537 5414862 Unregistered Manufacturing 83793 98277 95898 96346 95858 Gross value added including FISIM (1.1+1.2) 4554607 5104911 5180394 5392883 5510720 Less Fisim 189472 213385 229491 238905 244125 Gross State Domestic Product (1-2 ) 4365135 4891525 4950903 5153978 5266595 Consumption of Fixed Capital 623944 617198 616505 641793 655816 Net State Domestic Product (3-4 ) 3741191 4274327 4334398 4512185 4610779 Source: Government of Uttarakhand

Table 8.12: GROWTH RATE OF GROSS STATE DOMESTIC PRODUCT INDUSTRY; 2011-12 To 2015 - 16 AT CONSTANT (2011-12) PRICES ITEM 2012-13 2013-14 2014-15 2015-16 Registered Manufacturing 11.98 1.56 4.17 2.23 Unregistered Manufacturing 17.29 -2.42 0.47 -0.51 Gross value added including FISIM (1.1+1.2) 12.08 1.48 4.10 2.19 Less Fisim 12.62 7.55 4.10 2.19 Gross State Domestic Product (1-2 ) 12.06 1.21 4.10 2.19 Consumption of Fixed Capital -1.08 -0.11 4.10 2.19 Net State Domestic Product (3-4 ) 14.25 1.41 4.10 2.19 Source: Government of Uttarakhand

Table 8.13: PERCENTAGE DISTRIBUTION OF GROSS STATE DOMESTIC PRODUCT INDUSTRY; 2011-12 To 2015 - 16 AT CONSTANT (2011-12) PRICES ITEM 2011-12 2012-13 2013-14 2014-15 2015-16

Registered Manufacturing 98.16 98.07 98.15 98.21 98.26 Unregistered Manufacturing 1.84 1.93 1.85 1.79 1.74 Total 100.00 100.00 100.00 100.00 100.00 Source: Government of Uttarakhand

8.22. Tables 8.14, 8.15, and 8.16 show the SGDP, growth rate, and percentage distribution of SGDP from utilities. As can be seen from the data, the share of electricity sector in SGDP has been falling over the years (from 89.33% in 2011-12 to 83.07% in 2015-16).

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Table 8.14: STATE DOMESTIC PRODUCT FROM ELECTRICITY, GAS WATER SUPPLY & OTHER UTILITY SERVICES AT CONSTANT PRICES (2011-12) (in Rs. Lakhs) ITEM 2011-12 2012-13 2013-14 2014-15 2015-16 Gross value added including FISIM 433709 452978 489358 532074 577297 Electricity 387428 402591 425546 454652 479590 Gas 5796 5497 5521 5603 5716 Water supply 8468 12304 20610 28687 43483 Remediation 32017 32586 37680 43132 48508 Less Fisim 35630 40274 43813 47637 51686 Gross State Domestic Product (1-2 ) 398079 412704 445545 484436 525611 Consumption of Fixed Capital 122201 130053 140402 152658 165633 Net State Domestic Product (3-4) 275878 282651 305143 331779 359978 Source: Government of Uttarakhand

Table 8.15: GROWTH RATE OF GROSS STATE DOMESTIC PRODUCT INDUSTRY; 2011-12 To 2015 - 16 AT CONSTANT PRICES (2011-12) (in Rs. Lakhs) ITEM 2011-12 2012-13 2013-14 2014-15 2015-16 Gross value added including FISIM 4.44 8.03 8.73 8.50 Electricity 3.91 5.70 6.84 5.49 Gas -5.16 0.44 1.48 2.03 Water supply 45.30 67.51 39.19 51.58 Remediation 1.78 15.63 14.47 12.46 Less Fisim 13.03 8.79 8.73 8.50 Gross State Domestic Product (1-2 ) 3.67 7.96 8.73 8.50 Consumption of Fixed Capital 6.43 7.96 8.73 8.50 Net State Domestic Product (3-4) 2.45 7.96 8.73 8.50 Source: Government of Uttarakhand

Table 8.16: PERCENTAGE DISTRIBUTION OF GROSS STATE DOMESTIC PRODUCT INDUSTRY; 2011-12 To 2015 - 16 AT CONSTANT PRICES (2011-12) ITEM 2011-12 2012-13 2013-14 2014-15 2015-16

Electricity 89.33 88.88 86.96 85.45 83.07 Gas 1.34 1.21 1.13 1.05 0.99 Water supply 1.95 2.72 4.21 5.39 7.53 Remediation 7.38 7.19 7.70 8.11 8.40 Total 100.00 100.00 100.00 100.00 100.00 Source: Government of Uttarakhand

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References Annual Survey of Industries, 2010-11 to 2014-15, Central Statistical Office, Ministry of Statistics & P.I., Government of India Nautiyal, S.C. 2016. Dynamics of Uttarakhand Industries in last 15 years and the Future Agenda. Directorate of Industries, Uttarakhand. Industrial Policy 2003, Government of Uttarakhand, Dehradun, 2003 Instruction Manual Annual Survey of Industries, Central Statistical Office, Ministry of Statistics & P.I., Government of India, 2014 Statistical Diary of Uttarakhand 2012-13 & 2014-15, Department of Economics and Statistics, Government of Uttarakhand, Dehradun Times of India, Nov 25 2016, “Demonetisation curbs illegal mining in Uttarakhand's district”, http://timesofindia.indiatimes.com/city/dehradun/Demonetisation-curbs-illegal-mining-in- Ukhand-dist/articleshow/55605645.cms Uttarakhand Micro, Small & Medium Enterprise Policy-2015, Government of Uttarakhand, Dehradun, 2015 Uttarakhand Mineral Policy 2011, Government of Uttarakhand, Dehradun, 2011 http://www.indiastat.com/ http://www.uttarakhandstat.com/

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Chapter 9 Transport and Civil Aviation

Road and Train Network Availability in Uttarakhand 9.1 One of the most important public service provided by both the state and central governments is the availability of road and train network in a state. Uttarakhand being a hilly state, the need for a robust transportation network is even higher. This need is well- recognized both at the centre and the state levels, and as we can see from table 9.1, the state has made remarkable progress in terms of developing new road networks.

Table 9.1 Length of road and train tracks in Uttarakhand (in KM) 2009-10 2011-12 2012-13 2013-14 2014-15 1. Under PWD National Highway 1375.76 1375.76 1375.76 1375.76 1422.26 State Highway 1575.50 3788.20 3788.20 3782.24 3736.64 Main District Roads 567.88 3289.74 3289.74 3289.74 3296.73 Other District Roads 6827.14 2945.04 2945.04 2985.27 3020.67 Village Roads 12375.68 14543.89 15436.89 16177.16 18187.11 Light Vehicle Roads 1100.65 858.22 858.23 790.38 750.44 Total 23822.61 26800.85 27693.86 28400.55 30413.85

2. Under Local Authorities District Panchayat Vehicle Roads 745.56 862.45 862.45 807.6 852.4 Municipality/ Town Panchayat/ 1928.48 1974.3 2040.23 2356.13 2312.84 Municipal Corporation/ Other Vehicle Roads

Total 2674.04 2836.75 2902.68 3163.73 3165.24 3. Under Other Departments Irrigation 741 741 741 741 741 Sugarcane 803 885 899.61 850.12 864.04 Forest 3256 3257 3313 3270 3270 BRTF 1273.81 1281.32 1281.32 1281.32 1281.32

Others 1344.24 1685.00 1906.31 2060.21 950.94 Total 7418.05 7849.32 8141.24 8202.65 7107.3

Total Length of Roads (1+2+3) 33914.70 37486.92 38737.78 39766.93 40686.39 Length of Train Tracks Broad Gauge 283.76 283.76 283.76 283.76 283.76 Narrow Gauge 61.15 61.15 61.15 61.15 61.15 Total 344.91 344.91 344.91 344.91 344.91 Source: Statistical Diary of Uttarakhand 2009-10, 2011-12, 2012-13, 2013-14, 2014-15

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9.2 The total length of roads available (under various departments) in 2009-10 was 33914.7 KM. In 2014-15, it increased to 40686.39 KM (an almost 20% jump in a span of 5 years). Length of state highway increased from 1575.50 KM in 2009-10 to 3736.64 in 2014-15. Another remarkable progress was made in terms of village road construction which jumped from 12375.68 KM to 18187.11 KM in this same 5-year period. 9.3. One of areas where there has been a lack of development is the introduction of new rail tracks. The narrow gauge lines have not been converted to broad gauge lines. Even the one way lines were not converted into two way lines, leading to train delays and cancellations. Composition of automobiles on the roads in Uttarakhand 9.4. Table 9.2 shows the composition of different types of automobiles plying on the roads in Uttarakhand. Owing to rapid industrialization in the state, the number of goods carrier has increased by a significant margin over the last few years (from 18423 in 2008 to 48387 in 2015).

Table 9.2 Composition of automobiles on the roads in Uttarakhand

Types of 2008 2009 2010 2011 2012 2013 2014 2015 Automobile Goods 18423 24131 30667 35343 38549 41802 44660 48387 Carrier Delivery 6147 6681 7737 9633 11857 13770 15829 17500 Van/ Recovery Van Bus 8611 6076 6009 6291 6069 6218 6619 6962 Maxi Cab 6941 8203 10936 11967 14430 16710 18371 19994 Taxi Cab 9139 7224 8143 9435 10835 12012 13148 14455 Auto/ 8834 10406 13364 14265 15463 16315 17036 18293 Vikram Two 640001 658097 736847 858997 981825 110531 123768 138745 Wheelers 5 5 7 Car/ Jeep 102100 112623 140956 170548 205745 242026 275231 311908 Tractor/ 50844 53246 55782 58384 61709 64916 69458 72478 Trolley Others 1216 2055 1647 1846 2538 1833 1998 2270 Total 852256 888742 101208 117670 134902 152091 170003 189970 8 9 0 7 5 4 Source: Statistical Diary of Uttarakhand 2009-10, 2011-12, 2012-13, 2013-14, 2014-15

9.5. Another important development in the state has been the growth in agriculture which is evidenced by the rise in tractors/ trolleys in Uttarakhand. In 2008 there were 50844 tractors in the state, whereas in 2015 the number increased to 72478 (42.55% rise in seven years). 9.6. With road improvements and growth in tourism, the number of Maxi cabs, taxi cabs, cars and jeeps also increased manifold over the years. Between 2008 and 2015, the number of Maxi cabs increased from 6941 to 19994, the number of taxi cabs increased from 9139 to

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14455, and the number of cars and jeeps went up from 102100 to 311908. Overall, the total number of automobiles in Uttarakhand went up from 852256 in 2008 to 1899704 in 2015. Civil Aviation in Uttarakhand 9.7. The two major airports in Uttarakhand are Jolly Grant Airport in Dehradun, and Pantnagar Airport. Table 9.3 shows the financial health of these two airports. Though the airports were making losses earlier, it is expected that things will get better with the rise in tourism and air cargo movement in the state.

Table 9.3: Financial Health of Major Airports in Uttarakhand (Rs. in Lakh) Airports 2009-2010 2010-2011 2011-2012 (Provisional) Total Total Profit/ Total Total Profit/ Total Total Profit/ Revenue Exp. Loss Reven Exp. Loss Revenu Exp. Loss Before ue Before e Before Tax Tax Tax

Dehradun 151.93 1982.93 -1831 311.3 2671.16 -2359.82 360.47 2981.02 - 4 2620.5 5 Pant Nagar 51.15 644.07 -592.92 37.36 747.25 -709.89 43.26 833.93 - 790.68 Source: Indiastat.com

9.8. One of the major initiatives taken by the Uttarakhand government has been construction and upgradation of helidromes/ heliports/ helipads in Uttarakhand for disaster management, tourism and official movement (Uttarakhand Disaster Recovery Initiative). The goal is to build the facilities in approximately 60 locations. For the initial phase, however, 19 locations have been identified for this development. The State Disaster Management Authority (SDMA) will be the executing agency for government of Uttarakhand. A High Powered Committee (HPC) has approved the locations given in table 9.4 for the development of helidromes/ heliports/ helipads.

Table 9.4: Uttarakhand Emergency Assistance Project Proposed Helidromes/ Heliports/ Helipads Details UID location District Description Tender Status Expenditure Physical Progress 7001 Auli Chamoli H2 category Agreement 0.68 0 (Heliport) signed 7002 Daschula Rudraprayag H4 category 0 0 (Helipad) 7003 Agastyamuni Rudraprayag H3 category Agreement 0.68 0 (Helipad) signed 7004 Rudraprayag Rudraprayag H2 category Agreement 0.68 100 (Heliport) cancelled 7005 Petshal Almora H2 category Financial 0 0 (Heliport) evaluation done

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7007 Kotdwar Pauri H4 category Agreement 0 0 (Helipad) signed 7008 Pauri (Ransi) Pauri H4 category Agreement 0.08 100 (Helipad) cancelled 7010 Chamba Tehri H4 category Agreement 33.25 0 (Helipad) signed 7011 Narendra Nagar Tehri H4 category Agreement 33.45 0 (Helipad) signed 7015 Dwarahat Almora H3 category Agreement 40.97 0 (Helipad) signed 7016 Chaukhutia Almora H3 category Agreement 80.79 0 (Helipad) signed 7017 Kapkot Bageshwar H3 category Agreement 72.63 0 (Helipad) signed 7018 Khati Bageshwar H4 category Agreement 3.19 0 (Helipad) signed 7019 Champawat Champawat H2 category Agreement 0.08 0 (Heliport) signed 7022 Banbasa Champawat H4 category Bid not 0 0 (Helipad) received 7024 Lohjang Chamoli H4 category 0 0 (Helipad) 7026 Lansdowne Pauri H4 category Bid not 0 0 (Helipad) received 7029 Barkot Uttarkashi H2 category Agreement 0 0 (Heliport signed 7031 Mori Uttarkashi H4 category Agreement 0 0 (Helipad) signed 7034 Dhumakot Pauri H4 category Financial 0 0 (Helipad) evaluation done 7036 Yamkeshwar Pauri H4 category Financial 0 0 (Helipad) evaluation done 7038 Sahastradhara(Phase1) Dehradun H4 category Agreement 0 0 (Helipad) signed 7041 Tyuni Dehradun H3 category Agreement 0 0 (Helipad) signed 7043 Laksar Haridwar H3 category 0 0 (Helipad) 7044 Roorkee Haridwar H2 category 0 0 (Heliport) 7045 Chaukodi Pithoragarh H4 category Agreement 0 0 (Helipad) signed 7046 Munsyari Pithoragarh H3 category Agreement 0 0 (Helipad) signed 7052 Sosa Pithoragarh H4 category Agreement 0 0 (Helipad) signed 7054 Kashipur Udham H2 category Agreement 0 0 Singh Nagar (Heliport) signed

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7056 Bageshwar Bageshwar H4 category Agreement 0 0 (Helipad) signed 7059 Almora Almora H4 category Tender floated 0 0 (Helipad) 7060 Jageshwar Almora H4 category Agreement 0 0 (Helipad) signed 7063 Garud (Mela Dungari) Bageshwar H3 category Agreement 0 0 (Helipad) signed H2 category (Heliport): having area 6000sqm and capacity of 1 Mi-17 plus parking for 2 light choppers H3 category (Helipad): having area 2500sqm and capacity of 1 Mi-17 or 2 light choppers H4 category (Helipad): having area 900sqm and capacity of 1 light chopper Source: Uttarakhand Disaster Recovery Initiative

9.9. In order to finance this initiative (Uttarakhand Emergency Assistance Project), the following financing plan has been proposed (table 9.5).

Table 9..5: Financing of Uttarakhand Emergency Assistance Project (in USD million) Categories of Expenditure Disaster Preparedness (Helipads, Heliports or Helidromes and Amenities) Investment Costs Civil works 20 Equipment 0.75 Resettlement/Environment 0.12 Consultants 0.5

Recurring Costs Administrative Cost 0.36

Contingencies Physical 1.65 Price 0.88

Finance Charges During Implementations Interest during Implementation 0.39 Commitment Charges 0.09 Total (USD million) 24.75 Source: Uttarakhand Disaster Recovery Initiative

Fund Allocation for Various Transport Related Projects 9.10. In order to understand the progress made under different projects, we need to see table 9.6. This provides the vision in terms of the development of transport infrastructure in the state.

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Table 9.6: Financial Statement of Uttarakhand State Transport Department for Various Projects (in Rs. Lakhs) 2015-16 2016-17 Up to Between 2017-18 30/11/2016 01/12/2016 to 31/03/2017 Allotted Utilized Allotted Funds Utilized Expected Budgeted Other Funds Funds Funds Released Funds Utilized Amount Details Funds Establishment of 80.00 80.00 80.00 26.67 26.67 53.33 338.00 - TC/RTO/ARTO Offices (Land/Building) (Tanakpur) Establishment of 80.00 80.00 80.00 26.67 26.67 53.33 157.00 - Driving Training Schools in Dehradun (Hill Track) Payment of Interest 100.01 100.00 1000.00 0.00 0.00 1000.00 3500.00 - of Loan for Purchase of Buses Construction of 81.34 70.00 80.00 80.00 80.00 0.00 3200.00 - Workshop/Depot (Bageshwar/ Sitarganj/ Bajpur) Establishment of 0.00 0.00 10.00 0.00 0.00 10.00 10.00 - Driving Training Schools in Haldwani, Pauri & Almora Purchase of 50.00 22.00 50.00 0.00 0.00 50.00 50.00 - Simulators for Driving Tests Establishment of 0.00 0.00 10.00 0.00 0.00 10.00 10.00 - Automated Testing Lane for Vehicle Inspection (Rishikesh) Construction of 0.00 0.00 100.00 0.00 0.00 100.00 150.00 - Automated Driving Tracks Construction of B/G 0.00 0.00 0.02 0.00 0.00 0.02 0.00 - Rail Line between Muzaffarnagar- Roorkee/ Kiccha- Khatima Establishment of 0.00 0.00 1000.00 760.67 760.00 240.00 6600.00 - ISBT at Haldwani

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Establishment of 0.00 0.00 300.00 150.00 0.00 300.00 1149.00 - ISBT at Almora Establishment of 0.00 0.00 40.00 13.33 13.33 26.67 260.00 - ISBT at Ramnagar Relaxation to Senior 0.00 0.00 100.00 0.07 0.00 100.00 0.00 - Citizen for Char Dham Yatra Hightech Transport 0.01 0.00 0.00 0.00 0.00 0.00 0.00 - Facilities in Dehradun (SPA) Public Transport 0.01 0.00 0.00 0.00 0.00 0.00 0.00 - System Chief Minister 0.00 0.00 20.00 0.00 0.00 20.00 80.00 - Driver Insurance Scheme Grant to SRTC 0.00 0.00 1000.00 0.00 0.00 1000.00 0.00 - UTC Bus Stand for 0.00 0.00 100.00 50.00 50.00 50.00 4000.00 - SC Area UTC Bus Stand for 0.00 0.00 10.00 0.00 0.00 10.00 1850.00 - ST Area Total 391.37 352.00 3980.02 1107.41 956.67 3023.35 21354.00 - TSP 9.00 8.10 10.00 3.33 3.33 6.67 15.00 - SCSP 30.00 12.00 40.00 13.33 13.33 26.67 40.00 - Grand Total 430.37 372.10 4030.02 1124.07 973.33 3056.69 21409.00 - Central ------Government Supported Schemes Other Supported ------Schemes Source: State Transport Department

References State Transport Department, Government of Uttarakhand, Dehradun Statistical Diary of Uttarakhand 2012-13 & 2014-15, Department of Economics and Statistics, Government of Uttarakhand, Dehradun http://www.indiastat.com/ http://www.uttarakhandstat.com/

Uttarakhand Civil Aviation Development Authority, http://www.ucada.in/budget.html

Uttarakhand Disaster Recovery Initiative, Government of Uttarakhand, http://ukdisasterrecovery.in/index.php/projects/ueap/adbca

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Chapter 10

Tourism and Other Services Sector 10.1 Uttarkhand is a unique state of India with a vast expanse of the shiwalik and himalayan mountains that lays claim to the title of ”Devbhumi” or the and of the Gods. The contribution of agricutlure to the state GDP or GSDP is limited as only two of the total 13 districts of the state are focussed on agriculure. The others posses a undulating and hilly topography. The services sector has had the major contribution to the GSDP. The contribution was close to 50% throughout the decade of 2001-09. The service sector of Uttarakhand mainly consists of Tourism. Information technology , higher education and banking. The contribution of the services sector to the state GSDP in percent terms over the first decade since the formation of the state is given in Graph 10.1 below

Services/GSDP ratio in % 53 52 51 50 49 48 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Graph 10.1: Proportion of Services in GSDP of Uttarakhand 10.2 The tables 10.1. and 10.2 below present the GSVA (Gross State Value Added) and GSDP (Gross State Domestic Product) at factor cost of the services sector in the state. These tables clearly show the importance of the service sector in the economy of the state. In absolute terms the important services are trade and repair services, real estate , ownership of dwelling and Professional services, communication and services related to broadcasting, and public administration. The maximum growth in percent terms has been observed in other services followed by real estate and professional services, public administration, trade and repair services and communication and services related to broadcasting in decreasing order. 10.3 The maximum contirbution into GSDP is from Trade , hotels and restaurants followed by other services, transport by other means ( mostly roadways), banking and insurance and public administration in order. The maximum growth over the decade was observed from Trade, hotels and restaurants which more than quadrupled their contribution to GSDP in absolute terms. Exemplary growth was also observed from transport (mostly roadways excluding railways), banking and insurance followed by public administration. 10.4 Interpreting tables 10.1 and 10.2 together we infer that while the growth in GDP is focused around tourism (trade , hotels and restaurants) the value addition is much higher in real esate and other professional services. The consistent performer in term of value addition as well aboslute contribution to GSDP is public administration followed by banking and insurance sector which is registering growth as well as value addition. We can therefore

143 highlight the need for value addition in the tourism sector in the state if we are to maintain the growth story of Uttarakhand progressing further. The state was ranked 12th in terms of per capita income amongst the states of the Indian Union. With proper focus on tourism for value addition and supportive policies for banking and insurance, real eastate and other professional services the services sector can continue to be a growth engine for the state.

Table 10.1 Gross State Value Added (GSVA) at Factor Cost by Industry of Origin in Uttarakhand {(At Current Prices based on 2011-2012 Series) (2011-2012 to 2015-2016)}(Rs. in Lakh) Sectors 2011-2012 2012- 2013- 2014- 2015- 2013 2014 2015 2016 IV. Service Sector (i). Trade, Repair, Hotels and 1192897 1408869 1614577 1743106 1991602 Restaurants (a). Trade and Repair Services 1013998 1218822 1426694 1534073 1768221 (b). Hotels and Restaurants 178899 190047 187883 209033 223381 (ii). Transport, Storage, 703706 825647 951652 1066693 1224232 Communication and Services Related to Broadcasting (a). Railways 14140 16514 17214 21295 24470 (b). Road Transport 218487 259840 287156 307147 339240 (c). Water Transport - - - - - (d). Air Transport 652 1229 2158 3889 7053 (e). Services Incidental to - - - -76 - Transport (f). Storage 579 678 735 660 699 (g). Communication and Services 469848 547386 644389 733778 852770 Related to Broadcasting (iii). Financial Services 293318 320421 357514 385030 421624 (iv). Real Estate, Ownership of 588825 671182 739177 831307 935310 Dwelling and Professional Services (v). Public Administration 412001 323723 483887 579409 711920 (vi). Other Services 498856 668947 827478 982430 1255262 Total Services 3689603 4218789 4974285 5587975 6539950 VIII. Gross State Domestic Product 11552349 13183522 14981660 16198529 18409131 (GSDP) IX. Population (In Million) 101650 103020 104410 105820 107240 X. Per Capita GSDP (In Rs.) 113648 127971 143489 153076 171663

10.5 A closer look at table 10.2 shows that the transportation , storage and communication sub-sector grew at a more or less steady rate in absolute terms across the decade. As such it needs to continue to be a focus area for policy and implementation. GDP of Railways saw a jump in 2007-08 and has been more or less stable after that but leaves a lot desirable increase in terms of future growth. GDP of Transport including storage and roadways has seen a remarkable jump in the last year 2014-15 and it needs to be ensured that the same is a trend and not an exception. Storage has been growing at a growing rate in absolute terms and this means a constant growth rate in percent terms. The same needs to be continued in

144 order to achieve future growth targets for the state and maintain the contribution of services in the GSDP. Communcation grew phenomenally between 2006-07and 2010-11 especially in the first year of this period. The overall contribution in absolute terms has been stagnant since 2010-11 onwards and this needs a policy push to return to a growth trend. Trade, hotels and restaurants had a good growth rate between 2007-08 and 2009-10 after which the growth continues at a good rate but not as high as during this period. Banking and insurance registered a very impressive growth in 2010-11 and continues to grow steadily.

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Table 10.2 Gross State Domestic Product (GSDP) at Factor Cost by Industry of Origin in Uttarakhand {(At Constant 2004-05 Prices) (2004-2005 to 2014-2015)}(Rs. in Lakh) Sector 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 IV. Service Sector Transport, Storage and communication 162784 188045 228158 270962 304211 352599 392150 431735 465592 501560 549170 (i) Railways 7005 6450 6956 11810 10620 12062 10774 11967 12328 12498 12958 (ii) Transport by Other Means (Including 113466 131516 153478 181441 207802 242417 272291 309363 341528 375120 420236 Storage) (iii) Storage 1714 1731 1975 2072 2197 2326 2257 2554 2765 2990 3358 (iv) Communication 40599 48348 65749 75639 83592 95794 106828 107851 108971 110952 112618 Trade, Hotel and Restaurants 419564 520974 600787 782549 950243 1259244 1405787 1609852 1710103 1852517 1988540 Banking and Insurance 93663 113455 137394 162803 190769 218345 266258 286736 313203 339702 369751 Real Estate, Ownership of Dwellings and 159893 167621 176023 184626 193998 198979 206299 215059 224212 233854 244561 Business Services Public administration 133372 145124 156246 210783 284137 321954 306637 282630 249206 262970 293041 Other services 257667 273806 289614 300726 327593 331790 342151 346393 395550 423717 452994 Total Services 1226943 1409025 1588222 1912449 2250951 2682911 2919282 3172405 3357866 3614320 3898057 State Domestic Product 2478567 2834035 3218960 3802186 4283246 5059803 5566681 6087959 6541424 7092553 7755209

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Table 10.3 Revenue Collection from Service Tax in Uttarakhand (2011-2012 to 2013-2014)(Rs. in Million) State Service Tax

2011-12 2012-13 2012-13 2013-14 (Accounts) (Budget (Revised (Budget Estimates) Estimates) Estimates) Uttarakhand 3422.2 4382.7 4411.6 6367.2 India 300804.9 343797.6 386094.5 477022.8

Source: Reserve Bank of India (ON1155) & past issues sourced from Indiastat.com

10.6 An important indicator of the growth of services sector in any economy is the revenue collection from service tax and the information about the same for the state of Uttarakhand is given in table 10.3 . We can see that the growth rates for the state have been around 28% , 0.6% and 44. 32 % in the respective years. The fluctuation in the growth story is notable and must be taken into considreation while formulating the policies and planning their implementation at the state level. The growth rates for India are 14.29%, 12.30 % and 23.55% respectively . The fluctuation in the revenue collection at the state level compared to overall fluctuation in the services at the Indian Economy level is much higher signifying that the state economy may have a divergent trend from India’s national trend and therefore policies in the state need to be crafted carefully.

Table 10.4 Actual Plan Expenditure for Public Sector by Headsof Development in Uttarakhand (2012-2013)(Rs. in Lakh) State Transport Science General Social General Total Technology Economic Services Services & Environment Services 2012-13 Uttarakhand 124832 26815 21927 344834 46800 820000 India 5765789 762816 2674747 23039536 5733973 60267763 2010-11 Uttarakhand 95708 10535 7353 167767 58895 447510 India 4533611 402685 681542 14439826 772790 36195150 2009-10 Uttarakhand 82196 9540 4130 140825 2285 351409 India 4090335 340499 747533 12036188 672877 31012281 2008-09 Uttarakhand 31268 18884 - 51165 23256 1827 India 1695862 1882152 699926 4070441 3167537 471612 2007-08 Uttarakhand 83426 15111 8290 146783 10193 394488 India 3148135 258093 675669 8087325 401378 22810107

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Indian Economy and also the economy of the states of the Indian Union are structured on Keynesian economics as modified by what is popularly known as the Nehru-Mahalnobis model. In this model the public sector expenditure is critical and table 10.4 gives the actual plan expenditure across years and heads for the state. The public sector expenditure in transportation in the state lags behind the national figure so does in science technology and environment. A similar trend is seen across the various heads when compared to national figures. There seems to be a massive jump in the total figure in 2012-13 but what is needed is continually such a trend rather than a one- two exceptional years.

Tourism in Uttarakhand: Devbhumi with mountains and Forests 10.7 The state has immense potential when it comes to tourism and it is fast gaining primacy as one of the major tourist attractions of the country for both domestic and foreign travellers. The state is home to 1635 monuments that are unprotected apart from a huge number of protected monuments.

Table 10.5 Number of Unprotected Monuments/Sites in Uttarakhand(2007-2012) State No. of Monuments Uttarakhand 1635 India 75307

10.8 The number of foreign tourists visiting Uttarakhand in the half decade 2010-2015 are presented in table 10.6 and their arrivals (national–park wise) are given in table 10.7 a quick look at table 10. 6 is enough to tell an alarming fall in the number of foreign tourists after the natural disasters of 2013. 2014 and 2015 have reported only about 5-6 % of FTVs as against the year 2013. This trend needs to be reversed as soon as possible by the policy makers and implementers of the same.

Table 10.6 Number of Foreign Tourist Visits (FTVs) in Uttarakhand(2010 to 2015) State 2010 2011 2012 2013 2014 2015 Uttarakhand 1675123 1887095 1994495 2054420 101966 105882 India 17852777 19497126 20731495 19951026 22334031 23326163

10.9 The number of foreign tourists arrived in national parks shows an increasing trend in most places of Uttarakhand which is a good sign for the state and more such measures can be taken to increase the number to its true potential. This is one of the fastest growing segments within services and as such this data needs careful attention and caution.

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Table 10.7 Number of Foreign Tourist Arrived in National Parks of Uttaranchal (1992-1993 to 2003-2004) National Parks No. of Tourists National Parks No. of Tourists Corbett National Park Binsar Abhyaranya 1992-93 3483 2001-02 923 1993-94 6199 2002-03 227 1994-95 4771 2003-04 304 1995-96 5415 Rajaji National Park 1996-97 4293 1992-93 1318 1997-98 4391 1993-94 202 1998-99 4804 1994-95 245 1999-00 3927 1995-96 314 2000-01 3775 1996-97 284 2001-02 4128 1997-98 262 2002-03 3397 1998-99 301 2003-04 4991 1999-00 382 SonaNadi 2000-01 548 2001-02 27 2001-02 345 2002-03 2 2002-03 493 2003-04 0 2003-04 659 Valley of Flower National Park Nandadevi National Park 1992-93 257 2001-02 0 1993-94 175 2002-03 0 1994-95 152 2003-04 3 1995-96 38 Kedarnath Kastura MrigVihar 1996-97 49 2001-02 0 1997-98 49 2002-03 0 1998-99 33 2003-04 96 1999-00 7 Gangotri National Park 2000-01 13 2001-02 0 2001-02 134 2002-03 0 2002-03 31 2003-04 625 2003-04 297

10.10 Table 10. 8 gives us the number of tourists from abroad that visited Uttarakhand in 2008-2010 disaggregated according to places. These are the major tourist destinations in the state. We can notice a slight increase in 2010 compared to the previous years. However, this number is pretty small compared to the potential of these destinations given that Uttarakhand is like the Switzerland of India. In this light it is important to revisit the information that tourism in the state is lagging in value addition while being a major contributor to service sector GSDP. Within the district it is clearly seen that Hardwar, Kotdwar , Dehradun and Tehri are the four leading districts in order. It is interesting to note that locations like Mussorie, rishikesh, Pauri, Srinagar, Kedarnath, Badrinath, Auli, Valley of flowers, Ranikhet, Kasauni, Pithoragarh are not finding enough takers from amongst foreign tourists.

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Table 10.8. Place-wise Number of Foreign Tourists Arrivals in Uttarakhand(2008 to 2010) Tourists Place 2008 2009 2010 Dehradun 18483 17051 20699 Rishikesh 5052 4550 5548 Mussoorie 5545 5869 5926 Pauri 53 32 160 Srinagar 306 339 1098 Kotdwar (Incl. Swargashram, Chillaetc) 18252 23532 26095 District Rudraprayag (Excl, Kedarnath) 1429 1581 380 Kedarnath 1066 1003 268 Gopeshwar (N. Prayag, K. Prayag, Thralietc) 108 36 32 Joshimath (Incl. Ghangria and GovindGhat) 1411 2219 2076 Badrinath 211 141 276 Auli 561 375 376 Hemkund Sahib 123 15 262 Valley of Flower 511 356 301 District Tehri 14748 15329 16103 Uttarkashi (Incl. HarsilGagnanietc) 1817 2418 2967 Gangotri 285 484 306 Yamunotri 190 241 182 District Haridwar 17854 20067 29555 Nainital 7070 5722 7123 Kathgodam 466 488 691 Corbett National Park 9001 8617 7696 District Udham Singh Nagar 1212 1254 1509 Almora 4821 4530 5031 Ranikhet 448 573 398 KausaniBageshwar 525 237 299 District Pithoragarh 653 926 774 District Champawat 222 258 328 Uttarakhand 111918 118243 136459

10.11 The UNWTO annual report of 2015 states for Asia and Pacific a 4-5% average rise in number of incoming tourists is expected over the next couple of years. However, this may be slightly higher for India and especially states where there is focused attention on development and promotion of tourism. This could be a big opportunity for a state like Uttarakhand. The UNWTO report also states that merely 0.78% of total global aid for trade was allocated to tourism. This translates into the action point that if more allocation is made to tourism and concerted action happens, it can result in an invariable rise in number of international incoming tourists to destinations such as Uttarakhand. 10.12 One of the major highlights of the report in the development of tourism is the focus required by air connectivity and air transportation. This is crucial for a state like Uttarakhand which has only two functional airports at present and one of them is crippled for most part of the year due to weather disturbances. This situation needs to be improved and better

150 connectivity to and from international destinations is required to promote tourism in the state. 10.13 Uttarakhand is also home to a lot of domestic tourism given its status as Devbhumi, it has special relevance to Hinduism. It is also blessed with some important religious pilgrimage places of Sikhism and few of Buddhism as well. Table 10.9 gives us the domestic tourist statistic across the last decade till 2015. The number of domestic tourists to Uttarakhand is less than 1% of the cumulative figure for the nation. This signifies that most of the tourist potential of the state is unutilised and a lot of attention is needed to develop the sector to achieve its potential. This is a must to sustain the high growth rates achieved by the state in the past and to accelerate the growth further.

Table 10.9. Number of Domestic Tourist Visits in Uttarakhand(2005 to 2015) (lakhs) State 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Uttarakhand 142 167 198 205 219 302 259 268 199 220 295 India 3919 4623 5266 5630 6688 7477 8645 10450 11452 12820 14320

10.14 An in-depth look at the place-wise arrival of domestic tourists gives a more granular picture for the sub-sector in the state and this can be helpful for policy makers and implementers in the state. Hardwar leads in the number of arrivals of domestic tourists as well followed by Joshimath, Dehradun, Mussorie and Rishikesh in order. Table 10.10 gives this information in detail.

Table 10.10 Place-wise Number of Domestic Tourists Arrivals in Uttarakhand(2008 to 2010) Tourists Place 2008 2009 2010 Dehradun 1422578 1123715 1401942 Rishikesh 551495 581869 1093164 Mussoorie 1086411 1096698 1098870 Pauri 85447 90960 97516 Srinagar 202486 247974 219103 Kotdwar (Incl. Swargashram, Chillaetc) 310324 310402 321438 District Rudraprayag (Excl, Kedarnath) 592368 416775 404527 Kedarnath 468982 402633 400243 Gopeshwar (N. Prayag, K. Prayag, Thralietc) 389978 401838 381722 Joshimath (Incl. Ghangria and GovindGhat) 1279659 1350280 1609216 Badrinath 1075372 798063 921250 Auli 24902 40732 40290 Hemkund Sahib 400410 332451 308888 Valley of Flower 11551 1419 4155 District Tehri 1067869 871827 898505 Uttarkashi (Incl. HarsilGagnanietc) 656851 680764 593290 Gangotri 326081 379673 310255 Yamunotri 327421 322001 309452 -District Haridwar 11356250 12049450 18837125

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Nainital 615469 749556 786705 Kathgodam 69480 112698 150423 Corbett National Park 186933 191866 181000 District Udham Singh Nagar 86890 95579 100457 Almora 93615 97492 95947 Ranikhet 80105 88506 83211 KausaniBageshwar 77184 78987 70523 District Pithoragarh 164225 183484 189474 District Champawat 53834 56522 63443 Uttarakhand 23064170 23154214 30972134

10.15 It is seen that only Hardwar and Dehradun are common between the foreign and domestic tourists whereas the other locations are specific and therefore more specific policies and actions will be needed. The information points out to three different types of inputs – firstly, many sites are not popular and need a infrastructure as well as marketing push in both types of tourists. Secondly, there are some locations that are more preferred by foreign tourists and they may be developed as destination tourism for foreign travellers and linked to circuits. Lastly there are locations that are frequented only by domestic travellers and they need to be linked to infrastructure and others services required by domestic travellers. 10.16. Table 10.11 shows the proportion split between same day and overnight trips to Uttarakhand by tourists. This is a very important information and shows that the visits to the state are almost evenly split between the two and in fact the same day trips are slightly larger in proportion than the overnight visits. This is important despite the large number of tourist destinations in the state. We infer that more infrastructure is needed to convert the same day trips into overnight trips and increase the revenue and employment generation through tourism in this manner. This is also important to consider given the highlighted need for value addition in the tourism sector in the state. Value addition that can convert same day trips into overnight trips ought to be preferred and promoted for the state.

Table 10.11 Number of Overnight Trips and Same Day Trips for Rural+Urban Areas in Uttarakhand (July 2008 - June 2009) State Sample Estimated ( ' 00) Number of Number of Number of Number of Same Day Overnight Same Day Trips Overnight Trips Uttarakhand 6295 9670 75480 121532 India 701337 1225804 9390321 16921369

10.17 A look at table 10.12 shows us that overnight trips made by tourists are largely outside the state. Thus tourism and services sector in the state needs to respond to these requirements of the outbound tourists as well. this is pertinent as the state has a higher proportion of out of state trips than the national average whereas the travel within the state is lesser than the national average.

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Table 10.12 Average Number of Places Visited Per Overnight Trip by Main Destination for Rural+Urban Areas in Uttarakhand (July 2008 - June 2009) State Main Destination No. of Same Day Visitor Trips Within the Outside the District Outside Estd.* (' 00) Sample ** District but within the State State Uttarakhand 1 1.1 1.8 75480 817 India 1 1.2 1.5 9390322 90102

10.18 Homestays are an important tourist attraction in a state like Uttarakhand and therefore the data of homestays is equally important. This information is presented in table 10.13 and shows that the proportion of households reporting overnight or same day trips is much lesser compared to the national aggregate and average. This also indicates the need for improvement in the same through better and focussed policies and action. Also here the overnight visitors are slightly higher than the estimated number of same day trip visitors. The even split has important implications for policy and implementation.

Table 10.13 Number of Households Reporting Overnight/Same Day Visitors and Total Number of Overnight/Same Day Visitors in Rural+Urban Areas in Uttarakhand (July 2008 - June 2009) State Sample Estimated (' 00)

ght ght Visitors

Number of of Number Households Over Reporting Visitors Night Over of Number Visitors Night of Number Households Same Reporting Visitors Day Same of Number Visitors Day of Number Households Over Reporting Visitors Night Over of Number Ni of Number Households Same Reporting Visitors Day Same of Number Visitors Day Uttarakhand 1308 5346 1270 5091 16891 72155 16726 71305 India 144384 550276 143723 527468 2061312 7835017 2087761 7514043

10.19 No credible data was found for the hotel and room infrastructure in the state. This is crucial information as this will be very helpful in shaping policies and the actions therein to promote tourism and improve the service levels and value addition in tourism to foster growth and employment generation in the state. 10.20 Another important category of travellers and tourists outbound from the state are the Haj Pilgrims and the state also has a quota of Haj pilgrims that can visit the shrine every year with government support. The associated support services needed can be developed to support the haj pilgrims beyond the levels of current development as it is an important and well planned activity. The scheduling of these needs is easier as the visits are planned well in

153 advance. The information pertaining to them is given in table 10.14 where it is notable that the number of haj going pilgrims declined in 2014 compared to the previous years.

Table 10. 14 Number of Pilgrims who Performed Haj Arrivedby HCOI in Uttarakhand (2012 to 2014) State 2012 2013 2014 Uttarakhand 1085 1077 821 India 125071 121338 99914

10 .21 Infrastructure creation and value addition based on better and more detailed and granular information appear to be the need of the times in promoting tourism further in the state towards achieving its potential. State investment through public expenditure that leads private expenditure and ventures is desirable and imperative. The state has more than 2.5 % of the projects related to tourism whereas in terms of the amount the state has almost 5% of the total spending in the nation. Thus the focus seems to be rightly placed in terms of projects and funding. Further to this specific measures are needed to make this investment fruitful keeping with the customer trends for both domestic and foreign travellers. Also the increase in amounts sanctioned and released is very much needed and the trend ought to continue in the interests of tourism in the state.

Table 10.15 Amount Sanctioned and Released for Tourism Projects in Uttarakhand (2008-2009, 2011-2012 to 2013-2014) (Rs. in Lakh)

Projects Amount Amount Sanctioned Released 2008-09 4452.22 3561.74 2011-12 9774 6264.86 2012-13 1297.47 1037.97 2013-14 21772.67 3961.7

10.22 The revenue earnings from tourism are the most important and relevant statistics to the end output of GSDP if we take a narrow view of the economy. The Table 10.16 presents the revenue receipts at the national parks in Uttarakhand. This is indicative data of the decade preceding as well as post formation of the state. It is disheartening to note that only in two years and only one location of Corbett national park were the collections upwards of Rs. 1 crore. This also indicates that the national parks are unable to attract and raise enough revenue from tourists.

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Table 10. 16 Revenue Receipts through Arrivals of Tourists in National Parks of Uttarakhand. (1992-1993 to 2003-2004) National Park Revenue (Rs. in National Park Revenue (Rs. in Lakh) Lakh) Cobertt National BinsarAbhyaranya Park 1992-93 12.69 2001-02 0.39 1993-94 39.68 2002-03 1.52 1994-95 37.51 2003-04 6.88 1995-96 42.95 Rajaji National Park 1996-97 66.43 1992-93 1.26 1997-98 82.1 1993-94 1.05 1998-99 80.1 1994-95 0.93 1999-00 74.28 1995-96 1.84 2000-01 78.95 1996-97 2.75 2001-02 93.14 1997-98 2.66 2002-03 114.65 1998-99 2.88 2003-04 143.66 1999-00 3.76 SonaNadi 2000-01 5.81 2001-02 0.69 2001-02 2.33 2002-03 0.66 2002-03 5.28 2003-04 0.57 2003-04 5.76 Valley of Flower Nandadevi National Park National Park 1992-93 0.16 2001-02 0 1993-94 0.5 2002-03 0 1994-95 0.42 2003-04 0.02 1995-96 0.04 KedarnathKasturaMrigVihar 1996-97 0.51 2001-02 0 1997-98 0.5 2002-03 0 1998-99 0.33 2003-04 1.66 1999-00 0.18 Gangotri National Park 2000-01 0.29 2001-02 0 2001-02 1.06 2002-03 0 2002-03 0.79 2003-04 1.54 2003-04 2.51

10.23 There is an urgent need to promote employment in tourism and more accurately highlight the benefits of tourism jobs and opportunities to retain the talent in the sector and promote it further. One of the key highlight areas in this regards is the close connection between media and tourism. This has traditionally been one of the lacunae in promoting tourism in the state of Uttarakhand. 10.24 There is an urgent need to focus on mountain tourism with alternative winter and summer tourism plans and facilities. Post event strategies and accessibility along the tourism

155 service value chain has been advocated by UNWTO along with the need for a more proactive approach for promoting development in harmony with nature in the mountains. 10.25 In the immediate needs one of the most important for Uttarakhand will be the assessment and mitigation of risk and emergency management in tourism. The short terms goals include implementation of a new international classification for tourist accommodation. The mid-term goal likes in developing and selecting tourism projects that seek development of tourism in a sustainable manner, also aim at reduction in poverty and hunger. The long term plans and infrastructure projects are to include development of tourism infrastructure projects and institution building that seeks partnerships for promotion of shopping tourism, cultural tourism, long-stay tourism. Market research partnerships and promotional partnerships beyond talent development partnerships.

Eco-tourism: A special Focus area for Uttarakhand 10.26 The suitability of Uttarakhand to eco-tourism is now firmly established through various experimental ventures. As such this calls for special attention of policymakers as well as those involved with the tourism industry as well. However, it has been pointed out that one of the key elements of eco-tourism needs to be the conservation of natural environment. The strength of 64% forest cover in the state needs to be harnessed in increasing both the potential as well as its utilization in terms of tourism. As per a recent study conducted at the behest of the state government the revenue earnings from eco-tourism have increased from a mere 80 lakhs to more than Rs.24 crores in a decade. Eco-tourism is also claimed to have created significant local employment. 10.27 Given the current natural disasters, proper ecological planningis required for the development of eco-tourism and also a concerted marketing drive is needed to help the prospective tourists overcome the fear of such natural disasters. A repository of eco-tourism ideas can be made and the various ideas evaluated against possibilities for revenue generation and the impact of increased tourist inflows on ecology and environment. 10 .28. The government has taken up building of basic infrastructure for eco-tourism and the following infrastructure have been identified for future development:

Rope way Good quality Solid waste Public conveniences on restaurants management plan routes Water supply Information indication Parking facilities Tourist information marks centers Road Improved transport Trained guides CNG pumps and trash maintenance facilities bins

10.29. There has also been a call for a separate department to focus on the needs of eco- tourism however the coordination needs are multi-fold compared to the internal requirements once such a department is created. The development of local facilities including home stays can be an effective way of developing better facilities at a reduced cost with more involvement from the local people (a form of Public Private Participation). The major

156 advantage of such a strategy will be the minimal footprint on the ecology and environment and the ease of conservation. 10.30 Eco-tourism has a special significance in raising international funding with the linking of tourism as an important sector to SDGs in the recent UNWTO report. This also links with creation of jobs for women and youth in the sector, advancing decent work agenda, creating stronger links between private and public sector as well as educational and training institutions and work places. Also in the long term the state government can think along the lines of some suggestions made by the expert group on Flood Disasters and Role of HEPs with special reference to tourism. Banking, Insurance and Other Financial Services 10.31. Banking and Insurance Sub-sector is a very important constituent of the services sector and has shown an increasing trend in both contributions to GSDP as well as value added. The district-wise deposit and credit status is given in table 10.17 for the central cooperative banks in Uttarakhand. The district cooperative banks have a higher cumulative deposits as well as credits compared to the state cooperative bank. At the district level the leading cooperative banks are of Nainital, Udham Singh Nagar and TehriGarhwal. The ratio of the highest and the lowest deposits across districts is almost 4 times. The highest is in Nainital and the lowest is in Uttarkashi. The corresponding ratio for credit is also one is to four. There are local discrepancies such as higher deposits in Almoradistt. Coop. bank whereas higher credit issued by UttarkashiDistt. Coop. bank. In general the credit to deposit ratio is lower than 40% for most of the districts. The highest credit to deposit ratio is that of Udham Singh Nagar at 53% and the lowest of Almora at merely 16%. The C-D ratio is merely 20% for the state cooperative bank.

Table 10.17 Selected District-wise Aggregate Deposits and Credit of State and District Central Co-operative Banks in Uttarakhand (March, 2004 to 2006)(Amount in Rs. Lakh) District 2004 2005 2006 Deposits Credit Deposits Credit Deposits Credit State Co-Operative Bank - - - - 43276 8623 District Central Co-Operative Banks 160029 59656 148838 43520 200693 68750 Almora 13469 3283 12520 3291 15010 2407 Chamoli 13944 4203 16023 4127 18107 5100 Dehradun 15353 5932 16239 5389 19407 6710 Garhwal 12303 4231 12518 4353 14471 5046 Haridwar 8615 6489 10766 6728 13176 5881 Nainital 56015 23006 35980 5678 39595 10157 Pithorgarh 14296 3993 15841 4360 19144 5701 TehriGarhwal 16780 5122 18857 5651 20582 6970 Uttarkashi 9254 3397 10094 3943 11532 4845 Udhamsingh Nagar - - - - 29669 15933

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10.32. The low C-D ratio of the cooperative banks in the state is in line with the trend for the cooperative banks in other states. However, the ratio is not so low in the other states. This leaves much desirable for the cooperative banks in the state in terms of utilization of accumulated funds. A provision and plan for better marketing of credit products may be of help. An overhaul of state cooperative policies and laws can also be helpful as suggested by various experts and committees at the national level. 10.33. The state is also home to 5 urban cooperative banks with less than a hundred branches. These urban cooperative banks operated only 7 ATMs till 2012. The urban cooperative banks had no reach in 4 districts of the state. The C-D ratio for the UCBs aggregated was 56% which is also low by banking standards despite being higher than any of the district rural cooperative banks. The table also shows that the ratio is 66% for all the urban cooperative banks of the country aggregated together.

Table 10.18(a) Distribution of Urban Co-operative Banks (UCBs) in Uttarakhand (March, 2012)

State

llion)

No. of UCBs No. of Branches* No. of Extension No. of Counters of Number Total ATMs Districts No. of UCB with a Branch Districts No. of UCB a without Branch Deposits Billion) (In Advances Bi (In Uttarakhand 5 69 2 7 9 4 23 13 India 1618 8235 193 1435 328 279 2385 1580

10.34 The UCBs in the state of Uttarakhand have been the better performing ones and while three of them are graded in Grade 1 the remaining 2 are graded in grade 2 as in 2011. Regulatory capital requirement (CRAR) was made mandatory and a prescription of 9% was made applicable to UCBs as well in 2002 around the time the state was formed. The UCBs of the state only one has a CRAR between 9 and 12 percent and the remaining 4 have a CRAR of more than 12% which represents a healthy bank. One of the UCBs in the state had negative growth rate upto 2008 but that has improved of late signifying an improving government banking presence in the state.

The branch-wise presence of the UCBs in the state is given in table 10.18(a) as under

Table 10.18 (b) Status of UCBs in the state of Uttarakhand as on 2011 State / Total Popn. Popn. Popn. Popn. Total Districts Districts union UCBs Centre Centre Centre Centre branches covered not territory A B C D covered Uttarakhand 5 0 4 10 47 61 8 5

10.35 This table clearly shows that while the UCBs of the state have tried to make a presence in far flung hill areas by locating most of their branches in agglomerations of less than 1 lakh population. The very fact that 5 districts of the state are not covered speaks for itself. Thus

158 there is a need to issue new licenses of expand the banking network into these districts of the state at the earliest. 10.36. Analysing the data for state cooperative banks in the state using the information given in tables 10. 19(a) and 10.19(b), we get information on source-wise and type-wise deposits. While cooperatives account for only 55% of the total deposits, they account for more than 98% of the deposits in Uttarakhand. The other types of depositors namely individuals and local bodies need to be motivated in the state to make more deposits. Such a high exposure to only one type of depositor is a risk in itself for the banks. 10.37 It is also observed that more than 98% of the deposits in the state cooperative banks in Uttarakhand are in the form of fixed deposits whereas they form only 79% of the deposits of the nation’s state cooperative banks as an aggregate. Current and savings accounts together aggregate 17% of the deposits of the nation’s state cooperative banks.

Table 10.19(a) Source-wise Deposits of State Cooperative Banks in Uttarakhand (2014-2015)(Rs. in Lakh)

State Institutional Deposits Total Cooperative Individuals Local Bodies Others Deposits Uttarakhand 146401 1267 1262 0 148930 India 5496056 3175783 553638 853661 10079138 Table 10.19 (b)Type-wise Deposits of State Cooperative Banks in Uttarakhand (2014-2015)(Rs. in Lakh) State Type-wise Deposits Current Savings Fixed Reserve Funds Others Uttarakhand 1473 835 146592 30 0 India 580194 1169583 8013881 175827 139653

10.38 Keeping in line with the working group of Shri Das formed in 2009 it is suggested that an umbrella organization be created to restore the faith of depositors and creditors in the cooperative banking sector of the state. This should be focused on creating better liquidity for all the UCBs involved and also for better and more professional apex level decision making for the cooperative banking sector in the state. While such an organization has been suggested at the national level a headway can be made at the state level as well and the entity can be merged into the national level entity once it is formed. This entity can aid the cooperative banks in the state for providing loans, advances, refinance, payment and settlement services and other support functions such as IT services and management consultancy. 10.39 This figure from the Nachiket Mor committee shows us the difference between urban and rural areas in terms of percentage of population with bank account in Uttarakhand. This gap needs to be urgently bridged in the rural areas of the state and better banking needs to be provisioned for them. A similar lag is also observed between the state and other states of the Indian union in terms of the estimated credit to GDDP ratios for districts of India. This

159 basically refers to the lack of credit uptake for the districts that constitute the state of Uttarakhand.

10.40 The provision of payment and settlement services needs urgent attention in the state as the hilly terrain makes even these basic services difficult and their effective and efficient provision will help the citizens of the state enormously in conduct of day to day life and also business. The other provisions that the state government must impress upon the banking and financial services sector of the state are: - electronic bank account that enables payment and deposit services for all citizens and provides sufficient access to formal and affordable credit. A range of deposit and investment products must be made available to the populace of the state and this may require financial modelling and innovation to initiate new formats and new products and services suitable to the populace. 10.41 Insurance and risk management is a must for the state given its vulnerability to climate change, extreme weather events and also natural calamities and disasters. Some of the funding for such insurance funds can be provisioned at the level of the state itself rather than passing off the burden to individual consumers alone. 10.42. There is not much information available on the performance of private banks in the state and as such their performance cannot be reviewed in this chapter. The same is true for the insurance sector in the state. However, the aggregate performance of the banking and insurance sector points out to some good practices being in place in the banking and insurance sector overall. The expectation can be that this is truer for the scheduled commercial and private banks than for the cooperative banks in the state. This is at best only a conjecture in the absence of data and information.

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Transportation and Aviation sector 10.43 Another sub- sector that has been a consistent performer in terms of growth and has been an important contributor to the services GSDP in the state is the transportation sector including aviation, roadways and all other modes of transportation and storage. The table 10.20 give us an idea of how the revenue from airports is increasing in the state despite there being only two functional airports. Dehradun is growing at a faster rate and Pant Nagar is already a fading airport. Action is needed to revive pantnagar as an airport given that it has the potential to serve rudrapur, Nainital, Kashipur, Bareilly and other nearby towns and cities. The revenue of Pant Nagar has to be increased and value addition in services maybe in order for the same.

Table 10.20 Airport-wise Revenue Earned by AAI in Uttarakhand (2009-2010 and 2010-2011)(Rs. in Lakh) State Airports 2009-10 2010-11 Uttarakhand Dehradun 151.93 311.34 Pant Nagar 51.15 37.36

10.44 While Railways forms the backbone of the economy in most states of India. Hill states are dependent on roadways and same is the case with Uttarakhand as well. The table 10.21. give the length of roads and surfaced road length in the state and see a slow improvement in the length of total roads and a significant increase in the length of surfaced road length in the state. They grew by 18% and 24% respectively which is higher than the national growth rate of 11% for both. This is a positive start and the latest announcement of the honourable Prime Minister regards a special project for the development of the Char-Dhamyatracircuit, the roadways in Uttarakhand and tourism will get a major boost and we expect to see a significant increase in revenue from these heads of state accounting as well.

Table 10.21 Total and Surfaced Length of Roads in Uttarakhand (As on 31st March, 2009 to 2012)(In Km) State Total/Surfaced 2009 2010 2011 2012 Uttarakhand Total 44332 46836 49277 52628 Surfaced 23516 25193 26664 29247 India* Total 3571510 3682439 3790342 3965394 Surfaced 2141302 2249611 2341480 2515388

10.45 The state government is active and the following activities are being taken up towards the development of the transport sector in the state especially the roadways:- 1. Establishment of TC / RTO / ARTO offices 2. Establishment of ISBT at Haldwani, Almora ,Ramnagar, and development of other bus stands 3. Establishment of driving training schools for hills – Dehradun, Haldwani, Pauri and Almora including purchase of simulators for driving tests.

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4. Establishment of automated testing lane for vehicle inspection and construction of automated driving tracks 5. Payment of interest of loan for purchase of buses 6. Construction of workshop / depot A total of more than Rs 4 crores has been spent by the state government on the above in 2015-16. 10.46 The hill state of Uttarakhand is not dependent on railways as the network length in the state is only 345 kms. which is a abysmally low value of 6.45 kms . / 1000 sq. kms of area of state. Table 10.22 clearly shows the corresponding figure for the nation as a whole is 19.47kms/ 1000 sq. kms. The state therefore requires more attention from the railway ministry for upgradation and better connectivity and expansion of rail network in the state we well. this will help commerce as well as tourism in the state and further increase the service sector as well. the state government is also investing in the development of broad Gauge rail line between Mussafarnagar – Roorkee and Kichcha – Khatimahwoever there is a need for more focused attention on the same.

Table 10.22 Railway Route Length in Uttarakhand(As on 31.03.2015) State Route Kilometres Area Square Route Kilometres Per (As on 31.03.2009) Kilometres 1000 SqKms. of Area Uttarakhand 345.23 53484 6.45 India 64014.88 3287869 19.47

10.47 Special focus and attention is needed for the development of transport facilities from both international and domestic destinations to support tourism in a big way. Air connectivity and transportation is a must for international tourism inflows and also for tourists on the go where Uttarakhand will be a stop on the way. Thus the airports need to be utilised and developed in a tourist friendly way and also the connectivity needs to be seriously enhanced for the development of both the tourism and transportation sectors. 10.48 Action needed in the direction of remote air connectivity for the state of Uttarakhand is of prime importance. Deloitte had submitted a report to this effect for the whole of India and some of the points there need to be urgently implemented in the state. Creation of a Remote (Regional) Air Connectivity Fund (RACF) is the first in the sequence of steps as this funding will be needed to develop the infrastructure development including capacity building and capacity building infrastructure creation towards better connectivity. The RACF will need to make use of both Public and Private fund creation for generation of a fund. This will help the airlines to come up with their funding requirement at the end and it will be easier for them to raise capital based on the other infrastructure created. 10.49 State governments can partake in this development activity by reduction in VAT on Aviation Turbine Fuel sold to smaller air crafts and underwriting of seats in these smaller crafts and on some new routes to provide for some security to the air carriers for operating these new routes. State government can also chip in with security services (or by bearing their costs), provision of land and development of roads. This is especially useful for a state like

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Uttarakhand where the connectivity of the air strip or heli-port itself could be a challenge apart from connectivity by air to other destinations. The state government should also write to the DGCA/ BCAS for concessions such that smaller crafts and helicopters may be pressed into service for travel within the state especially keeping in mind the hilly terrain of Uttarakhand. 10.50 Based on the development of tourism hubs at Hardwar, Rishikesh and Nainital where the current potential of tourism has hardly been matched, it is proposed to develop air connectivity at Hardwar and pantnagar. There is an existing airport at Pantnagar but it is not well connected and there is only one daily flight that operates for less than 200 days a year. Making the airport compliant with better technology can help increase the number of days of usage of the airport and also therefore enable other flights to start servicing the airport. This issues of bringing in all-weather technology should be treated at prime importance within the state. Also the development of both of these airports as cargo airports is in order given the presence of important large industrial corridors of SIDCUL in their neighbourhood. 10.51 The standard ways of looking at air connectivity are not enough for the state of Uttarakhand given its special terrain and potential for tourists and hence we have to look for alternative modes of air connectivity such as helicopters and special small chartered flights. Some PPP experiments may be needed to instil faith on both the supply and demand sides of the aviation market in the state. the major issues in operationalization will be those of human resources, technology, financial risk management and ensuring capacity utilization at the facilities created. 10.52 Pantnagar airport needs to be developed especially for cargo keeping in mind that it is a gateway to the hills of Kumaon and the industries of distt. Udham Singh Nagar. There are currently 465 producing units in SIDCUL Pantnagar, another 284 in Sitarganj and 12 in the biotech park also at Pantnagar. This makes for a catchment area of 761 producing units for the cargo airport at Pantnagar. These include large, medium and MSME units as well. Communication, IT and ITEs 10.53. Another sub-sector of services believed to be important for the state of Uttarakhand is the Information technology and associated services, (IT and ITES) sub –sector. Table 10.23 gives the status of common service centres rolled out in the state. CSCs are believed to be the backbone of roll out of IT and associated services in the rural and semi-urban areas of the country under the national e-governance plan. The number of gram panchayats with CSC roll out is just over 2500 and only one third of the gram panchayats have a successful roll out of a CSC. While more than 3% of Gram panchayats in India are established in the state, the number of CSCs is only 1.25 % representing a lot desirable in terms of providing better connectivity and reaping the benefits of e-governance in the hinterlands of the state. This is not withstanding the hardship in rolling out internet in hilly terrain. The hilly region issues, when considered, make achievement of the state more noteworthy than worthy of criticism. Also the proportion of CSCs set up at GPs are much lower in the state when compared with the national average.

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Table 10.23 Status of Common Service Centre (CSC) Roll Out in Uttarakhand (As on 31.03.2016) State No. of GPs Total No. of CSCs Set-up Incl. GPs Total No. of CSCs Set-up at GPs Uttarakhand 7555 2509 1084 India 242571 199325 122621

10.54. The optical fibre network is the hardware backbone of roll out of the National e- governance plan and the CSCs are fed connectivity using the NOFN. Thus it is pertinent to analyse the performance of the NOFN (National Optical Fibre Network) in simple terms. Table 10.24 presents this information and we can observe that more than 3% of the GPs are in the state of Uttarakhand but less than 2% of the GPs covered in the first phase of NOFN project were in the state of Uttarakhand. Furthering this lack of attention to the state, it is observed that hardly one percent of the GPs, where work is under progress currently, are situated in the state. Thus there is clearly a case for need of more attention to IT infrastructure in the state. This is essential as an increasing portion of services are delivered or make use of IT and ITES globally.

Table 10. 24 Performance of National Optical Fibre Network (NOFN) Project in Uttarakhand (As on 15.02.2015) State Total GPs in Number of Blocks Pipe Cable GPs GPs Phase - Tender Work Work Laid Laid for I Finalised Order Started (Kms) (Kms) Which Issued Cable Laid Uttarakhand 7555 1767 20 18 14 361 250 161 India 244729 97480 2060 1613 1275 30851 17355 7470

Table 10.25 Number of Internet (Narrowband + Broadband) and Broadband Subscribers in Uttarakhand (As on March, 2014) State Total Number of Total Number of Internet(Narrowband + Broadband Broadband)Subscribers Subscribers Uttarakhand 24327142 3652710 India 251590542 60874434

10.55 Tables 10.25 and 10.26 presents the indicators for usage of internet in the state. The total number of subscriptions of internet in the state has touched over 24 million in 2014 which is a massive jump from the mere 10000 odd subscriptions in 2002. Two other things are noteworthy that this growth is more phenomenal than the growth in the national figure over the same period of time. This means that the growth in the state and outperformed the average growth in the nation. It may also signify that the growth started much later in the state and the state is nearing its exhaustion and we can expect the growth to plateau now.

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10.56 The performance of the state is impressive that almost 10% of the internet subscribers in the country are from the state as of march 2014. The corresponding figure for broadband subscribers is a little over 6% of the nation’s subscribers. Thus the state seems to have performed much better in the roll out of internet services to its masses. The trend picked up around 2002-2003 where we see a more than 80% increase in the internet subscriptions in the state whereas the corresponding growth for the nation as a whole was only 8 per cent during the same duration of one year. This is where the state policies and implementation started to make an impact and the state has surged ahead of national averages in the roll out of internet subscriptions.

Table 10.26 Number of Internet Subscribers in Uttarakhand (2002 and 2003) States/UTs As on 31st March 2002 2003 Uttaranchal 10902 19801 India 3239675 3500278

Table 10.27 State-wise Number of Internet Subscribers in Northern India (2000-3 and 2006-09) States/ UTs 2000 2002 2003 2006 2007 2008 2009 Chandigarh - 60228 38458 - - - - Delhi 164000 732962 650209 1042454** 1382679** 419220** 1576095 Haryana 1539 12116 17015 156166 186572 45565 254467 Himachal 932 3483 6410 20736 37063 7908 59663 Pradesh Jammu & 1492 - 10235 34366 64290 8364 83985 Kashmir Punjab 16264 69499 69938 246977 381408 110566 538759 Rajasthan 11074 102588 121322 269391 395302 68399 582968 Uttar 11991 96828 120006 338797@ 508542@ 125317@ 644735 Pradesh Uttarakhand - 10902 19801 - - - - Northern 207292 1088606 1053394 1066433 2955856 785339 3740672 India India 942505 3239675 3500278 7053022 10506586 3191871 13646700

10.57 The correct way to look at the progress of internet services in the state is to compare them with other states of northern India and table 10.27 presents this information in tabular format. The data for most of the years is missing for Uttarakhand but it gives us a good idea of the growth of internet services in northern India during the same duration. The internet subscribers reduced in Chandigarh and Delhi whereas the maximum increase was observed in UP, Rajasthan, J&K, Uttarakhand and Haryana during 2002-03. In year-on-year percentage terms the growth was maximum in HP followed by Haryana, UP and Rajasthan. 10.58. The internet revolution has been eclipsed by the mobile revolution in the country and this is where the state of Uttarakhand was late to catch up. By 2010-11 less than 2% of the

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GSM connections out of total for the nation were targeted in Uttarakhand. This was very low compared with the 9% of internet subscriptions of the nation in the state. Thus there is a case to revisit the telecommunications infrastructure in the state and speed up the mobile revolution as there are significant gains to be made in financial inclusion and poverty eradication by pushing the benefits of the internet through mobile to the bottom of the Pyramid section in the state.

Table 10. 28 Net GSM Connections Target in Uttarakhand(2010-2011) Circle Net GSM Connections Target for (3G) Uttarakhand 53931 India (BSNL) 3109724

10.59 What is an even more important data, given the hilly terrain of the state and the high rate of outmigration from the state, is the number of villages yet to be covered with mobile services in the state. Table 10.29 presents this figure with the number of villages clubbed according to the population. Almost all villages with a population of more than a thousand people have are covered. Only 26 such villages were not covered till 2011. Whereas almost a hundred villages within the population range of 500-1000 were not covered and almost a thousand villages of less than 500 populations were left uncovered.

Table 10.29 Number of Villages Uncovered with Mobile Services in Uttarakhand (As on March, 2011) State No. of No. of No. of Villages No. of Total Villages with Villages with with Villages Population=0 Population>0 Population>500 with and <=500 and <=1000 Population> 1000 Uttarakhand 72 913 104 26 1115 India 5620 23661 5749 2154 37184

10.60 The services sector enjoys great importance in the state of Uttarakhand and is surely to continue doing so in the future. However, the performance of the sector has to be analysed in greater detail in the format given in tables 10.1 and 10.2 such that we can focus on both contributions to the GSDP as well as value added by each sub-sector. This will help us focus on not only on the short term but also set up long term growth plans in place such that short term growth will be easy to achieve. This will also help us to choose wisely such that services also results in job creation in the state rather than imitate the pattern of “jobless growth” of services sector at the national level.

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Chapter 11 Employment, Wages and Prices

11.1 According to census 2011, the population of Uttarakhand has grown over the decade at the rate of 18.81 per cent. The work force participation rate has grown from 36.9 per cent to 38.4 per cent. Hence job creation over the decade has grown at 23.61 per cent. In other words, the annual average growth rate of job creation during the period 2001 to 2011 has been 2.36 per cent. At the all India the annual average growth rate of job creation during the same period had been 1.98 per cent. Hence, in last census decade, Uttarakhand has performed much better than the national average in job creation. Table 11.1 Population Census of Uttarakhand, 2011

Rural Urban Total Population 70,36,954 30,49,338 1,00,86,292 Working 28,85,533 9,86,742 38,72,275 Non-Working 41,51,421 20,62,596 62,14,017 Source: Census, 2011 11.2 Urban Uttarakhand has provided 25.48 per cent of the jobs in 2011. Hence, 74.52 per cent of the job in Uttarakhand has come from the rural economy. Agriculture has provided directly 51.23 per cent of the total jobs in the state. Hence, the rural non-farm economy has provided 23.29 per cent of the total jobs, which is almost equal to urban Uttarakhand. Industry has provided only 2.95 per cent of the jobs. And other worker category, largely consists of workers from services, has accounted for 45.81 per cent of the jobs. This sectoral structure of employment has a substantial difference with the sectoral composition the States output. In the year, 2011-12, 12.26 per cent of the value addition came from agriculture and allied sector, 53.75 per cent of the value addition came from Industries and 34 per cent of the value addition came from services. Hence, the direct employment created by Industries is much less than its value addition. However, most probably, it has large indirect impact in job creation in service sector which is of complementary nature to industries. But even then it indicates that there is a need to develop employment intensive industries in the state. It can come through the development of the small and medium scale industries. The MSME policy of the State is attempting to address this. 11.3 Among the workers, 65.9 per cent are male and 34.1 per cent are female. Those who are employed in agriculture, 52 per cent are male. Among the employed, within industries 60.6 per cent are male and in other services 82.3 per cent are male. These gender division in employment is compatible with the migration patterns of hill districts where male family members are migrating from agriculture to other profession. 11.4 Forty-five per cent of the main and marginal jobs are in three districts of Udham Singh Nagar, Dehradun and Hardwar. 60 per cent of the main jobs in Uttarakhand are in four districts of Udham Singh Nagar, Dehradun, Hardwar and Nainital. The percentage distribution of cultivators are largely evenly spread across the districts. However, more than 74 per cent

167 of agricultural labour as main occupation are in Udham Singh Nagar and Hardwar districts. Combining Dehradun and Nainital, 90 per cent of the agricultural labour are in these 4 districts. It indicates that in districts other than these, usually home labour is being used for agriculture. Further, agriculture in these four districts largely have capitalist mode of production. These four districts are also having more than 70 per cent share of the jobs in industries and services. Table 11.2. District wise Distribution of Working Population across main Occupations in Uttarakhand in 2011 (in per cent)

District Total Cultivator Agricultural Household Other Labourers Industries Workers Uttarkashi 4.47 9.26 0.97 2.54 1.81 Chamoli 4.01 6.66 0.43 4.04 2.75 Rudraprayag 2.75 5.44 0.61 1.91 1.27 Tehri Garhwal 5.78 9.33 1.45 2.89 4.17 Dehradun 17.01 5.77 8.26 23.31 25.95 Garhwal 5.73 7.20 1.68 4.45 5.44 Pithoragarh 5.07 8.34 0.89 4.28 3.52 Bageshwar 2.72 5.17 1.11 2.14 1.31 Almora 7.00 12.64 1.63 3.53 4.14 Champawat 2.18 3.06 0.80 1.18 1.85 Nainital 10.33 9.68 7.93 8.92 11.24 US Nagar 15.70 9.05 43.52 21.42 15.46 Hardwar 17.25 8.41 30.72 19.37 21.08 Total 100 100 100 100 1.81 Source: Census, 2011 11.5 At the state level, in main occupations more than 52 per cent of the jobs are in construction and services. And agriculture has provided more than 45 per cent of the main jobs. Among the districts, construction and services provides largest share of jobs in Dehradun, Pauri, Nainital, Udham Singh Nagar and Haridwar. In other districts, though a substantial contribution in jobs come from services and construction, agriculture still dominates. Industry does not provide more than 4 per cent of jobs in any of these district. 11.6 In the organised manufacturing sector in Uttarakhand, total number of person employed in the year 2014-15 was 3,74,861. And the total number of workers are around 2,95,217. Around 49.83 per cent of it are directly employed and 50.17 per cent are employed through the contractor. Hence, the majority of employment for workers that has been created in the organized sector are contractual in nature.

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Table 11.3. Share of Different main Occupation in total employment across all Districts of Uttarakhand in 2011 (in per cent)

Districts Cultivator Agricultural Household Other Total Labourers Industries Workers Uttarakhand 36.43 8.61 2.68 52.28 100 Uttarkashi 75.44 1.86 1.53 21.18 100 Chamoli 60.47 0.93 2.71 35.89 100 Rudraprayag 72.05 1.92 1.86 24.16 100 Tehri 58.78 2.16 1.34 37.72 100 Dehradun 12.37 4.18 3.68 79.77 100 Pauri 45.76 2.53 2.08 49.63 100 Pithoragarh 59.93 1.51 2.27 36.29 100 Bageshwar 69.23 3.50 2.11 25.16 100 Almora 65.71 2.00 1.35 30.93 100 Champawat 50.99 3.16 1.45 44.40 100 Nainital 34.15 6.62 2.32 56.92 100 Udham Singh 100 21.00 23.87 3.66 51.46 Nagar Hardwar 17.76 15.34 3.01 63.88 100 Source: Census, 2011 Table 11.4. District wise Unemployment Rate in Uttarakhand, 2011-12

District Rural Urban Uttarkashi 0.95 16.03 Chamoli 1.50 2.75 Rudraprayag 5.30 3.67 Tehri Garhwal 0.00 0.00 Dehradun 1.63 5.50 Pauri Garhwal 1.04 1.04 Pithoragarh 2.78 0.00 Bageshwar 0.68 9.23 Almora 2.10 17.36 Champawat 0.60 6.08 Nainital 7.67 9.38 Udham Singh Nagar 3.57 4.49 Haridwar 2.56 5.99 Nainital Hills 6.14 6.00 Dehradun Hills 0.00 1.94 State 2.59 5.79 Source: DES Uttarakhand Report on Pooling Center and State Sample, 68th round NSSO Household Survey on Employment Note: Reported rates here based upon Pooled sample

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11.7 According to the report of Directorate of Economics and Statistics (DES), Uttarakhand, based upon pooled sample of Central and State, the unemployment rate in rural Uttarakhand is 2.59 per cent. And in urban Uttarakhand it is 5.79 per cent. Among the districts, Almora and Uttarkashi have reported highest urban unemployment rate of more than 15 per cent. Pauri and Pithoragarh districts have reported lowest urban unemployment rate. On the other hand in rural unemployment, Nainital and Rudraprayag has experienced highest unemployment. Table 11.5. Nature of Employment in Uttarakhand for Different Communities

Self-Employed Casual Worker Agri Non-Agri Sub-total Salaried Agri Non-Agri Sub-total Others ST 35 38.1 73.1 6.9 2.6 6 8.6 11.4 SC 22.9 27.6 50.5 6.2 14.6 23.2 37.9 5.4 OBC 33.2 29.4 62.6 12.6 7.1 15.8 22.9 1.9 Others 39.5 18.3 57.7 18.8 1.8 8.6 10.4 13 All 34.8 22.7 57.5 14.7 5.4 12.8 18.2 9.7 Source: 68th Round Household Survey on Employment, NSSO, GOI 11.8 According to the 68th round of household survey on employment by NSSO, GOI, in Uttarakhand, 57.5 per cent of the workforce are self-employed, 14.7 per cent are salaried and casual labour constitute 18.7 per cent. Among the self-employed, 34.8 percentage points are in agriculture and 22.7 percentage point are in non-agricultural sector. STs are largely self- employed and more than 50 per cent of them are self-employed in non-agricultural sector; it is likely that they don’t have any fixed occupation. Among SCs, 50.5 per cent are self- employed; more than half of them in non-agricutural sector. And among SCs roughly 37.9 percent are casual workers. Among OBC and other communities the self-employed in agriculture is more than self-employed in non-agriculture sector. Similarly, a larger share salaried class exist in these two communities. And share of casual workers is much less in these two communities in compare to SCs. Table 11.6. Month-wise Average Daily Agricultural Wages of Skilled Labour (Male) in Uttarakhand (July 2014 to June 2015)

Annual State Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Avg. Uttarakhand 277 269 279 243 255 259 299 333 361 - 314 304 290 India 253 255 258 259 272 269 278 280 277 271 276 277 268 Source: Ministry of Agriculture, Govt. of India. (ON1277) 11.9 For the year 2014-15, the annual average agricultural wage was Rs. 290 at current price. It is 8.2 per cent higher than the national average. The real wage in rural Uttarakhand is much higher than the national average as the rural consumer prices is much lower in Uttarakhand in comparison to the national average. This agricultural wages in Uttarakhand is consistently higher than that of All India average. During the same year, the average daily wage rate in organised manufacturing industries (reported in Annual Survey of Industries) was Rs.700.

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However, in real terms, the divide between wages of agriculture and organised manufacturing is much wide as rural consumer prices is higher than the urban consumer price. 11.10 The inflation rate calculated based upon consumer price index number from the last quarter of 2014 shows a moderately low and stable inflation rate. From the last quarter of 2014 to first quarter of 2017, the combined rural and urban inflation rate has varied between 3 to 4 per cent. However, rural inflation rate has always been higher than the urban inflation rate. This phenomena may be linked with the fact that rural Uttarakhand are largely in the hills and substantial portion of it covered by the forest. This geographical remoteness as well as adverse conditions for agriculture lead to higher prices in rural in comparison to urban Uttarakhand. Most of the production in the state are concentrated in four districts of Udham Singh Nagar, Haridwar, Dehradun and Nainital. Further, Uttarakhand imports a very substantial portion of its need of commodity from the other states. These are also likely to be responsible for higher rural consumer prices than the urban Uttarakhand.

Graph 11.1(a) Inflation Rate Experiencd by Consumers in Uttarakhand, Base Year-2012 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

Rural Urban Combined

Source: MOSPI, Govt. of India

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Graph 11.1(b) Inflation Rate faced by the Rural Consumer, Base Year-2012 10 8 6 4 2 0

Uttarakhand All India

Source: MOSPI, Govt. of India

Graph 11.2 Inflation Rate faced by the Urban Consumer, Base Year-2012 10 8 6 4 2 0

Uttarakhand All India

Source: MOSPI, Govt. of India

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Chapter 12 Human Development and Inequality

12.1. There are several aspects of human development that we need to evaluate in order to understand the current situation in Uttarakhand. Some of the elements of human development in a region are education, health, and income. To gauge the human development in Uttarakhand, we start with the education scenario in Uttarakhand. As per the 2011 census of India, the literacy rate in Uttarakhand for people over seven years of age is 78.8 per 100 individuals. Dehradun district has the highest overall literacy rate (84.2), whereas Udham Singh Nagar has the lowest overall literacy rate (73.1). Rudraprayag has the highest male literacy rate (93.9), and Hardwar has the lowest male literacy rate (81.0). Dehradun has the highest female literacy rate (78.5), and Uttarkashi has the lowest female literacy rate (62.4). 12.2 Uttarakhand has around 11.26% of its total population below state poverty line (living on less than $1.25 a day), according to 2011-12 National Sample Survey data. That amounts to about 11.6 lakhs people living below state poverty line (BPL). Majority of the poor live in the rural areas (8.25 lakhs people, or 11.62% of total rural population). Around 3.35 lakhs people in the urban areas live below poverty line (10.48% of total urban population). The total number of homeless households in Uttarakhand in 2016 was 21,930. About 24% of the households in the state in 2016 are BPL or Antyoday households. The employment to population ratio in the state is 31.6. The significant incidence of poverty along with a large number of homeless households pose a significant challenge to the policymakers, and effective poverty alleviation designs (like skill development, entrepreneurship training etc.) need to be implemented to reduce these numbers. The hilly terrain of the state provides a significant hindrance to roll out state-wide developmental schemes. In 2016 itself, 56 lives were lost due to natural calamities. Nevertheless, several Central Govt. schemes like the Jan Dhan Yojana will help in making the poor more self-reliant and enabling the effective distribution of developmental assistance. Till February 2017, 2,170,963 accounts have been opened under the Jan Dhan Yojana.

12.3 Uttarakhand is performing horribly in the health aspect, especially in terms of the health status of women and children. As per the National Family Health Survey (NFHS 4) data, in 2016, around 26.6% of all children (under 5 years of age) in the state were underweight. About 25.6% of the children (under 5 years of age) living in the urban areas, and 27.1% of the children (under 5 years of age) living in the rural areas are underweight. Around 33.5% of the children (under 5 years of age) living in Uttarakhand suffer from stunted growth (32.5% of the children under 5 years of age in urban areas, and 34% of the children under 5 years of age in rural areas). Lack of nutrition is thus a major issue across the state, and immediate steps need to be taken to correct this problem.

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12.4 Among the women of reproductive age (15-49 years), 45.2% suffer from anaemia. In the urban areas, 43.4% of women suffer from anaemia, whereas in the rural areas, 46.2% women suffer from it. Among the children aged 6-59 months, 59.8% suffer from anaemia (61.3% in the urban areas, and 59.3% in the rural areas). This is depressing as the state has made tremendous progress over the last decade and half in terms of industrial development. However, we are yet to see that development improving the lives of the people.

12.5 The state is also lagging behind in terms of establishing DNA banks for variety of seeds, plants, and animal species. This needs to be taken care of urgently in order to preserve the bio-diversity of the state. The state is susceptible to natural calamities, and a DNA bank can ensure successful restoration of biodiversity in case of an unfortunate incident.

12.6 According to the Annual Health Survey (AHS), the maternal mortality rate or MMR (annual number of female deaths per 100,000 live births) in 2013 was 165 in Uttarakhand. Lack of medical facilities and limited access to useful information are major reasons behind this. Recently, the World Bank has committed USD 100 million to improve the health delivery system in the state, and this fund needs to be properly utilized so that health care delivery capabilities are developed within the state. According to National Family and Health Survey, the infant mortality rate (per 1,000 live births) in 2016 was 40 (39 in rural areas, and 44 in urban areas). The under-five mortality rate (per 1,000 live births) in 2016 was 47 (46 in rural areas, and 49 in urban areas). A concerted effort is needed in order reduce the numbers.

12.7 According to NFHS, in 2016, only 49.3% of married women in Uttarakhand between 15- 49 years of age use any modern family planning methods. As per the data, 49.8% of women living in the rural areas, and 48.4% of women living in the urban areas use any form of modern family planning methods. Only 30.9% of women received at least 4 antenatal care visits. Only 25.7% of the mothers living in the rural areas, and 41.2% of the mothers living in urban areas received at least 4 antenatal care visits in 2016. Around 68.6% of the births in 2016 happened under institutional delivery (63.7% of the births in the rural areas and 79.1% of the births in in the urban areas). Only 54.8% of the mothers received any postnatal care from a doctor or some healthcare personnel (49.1% of the rural mothers, and 66.1% of the urban mothers). As this data shows, the state still has a lot to cover in this respect, and effective distribution of healthcare services needs to be there.

12.8 The total fertility rate (births per woman) in Uttarakhand in 2016 was 2.1 (2.2 in rural areas and 1.8 in urban areas). The state however is languishing in terms of vaccination as only 57.7% of the children between the age of 12-23 months received all the required vaccinations. 58.2% of the children living in the rural areas and 56.5% of the children living in the urban areas received all vaccinations in 2016.

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12.9 The net enrolment rate in primary education is 89.18% as per 2016 data. Net enrolment rate in upper primary education is 71%. The primary cycle completion rate is 86.15%. Upper primary cycle completion rate is 98.62%. Net enrolment rate in secondary education is 51.28%. This means that if proper access to resources is provided so that children can go from primary to upper primary classes, then a lot more people will complete upper primary education. Lack of access to educational resources is also a reason behind the abysmal enrolment rate in secondary education. Although 95% of the primary teachers and 100% of the upper primary teachers have received proper training on paper, it is not being reflected in the test scores as the standard 5 students in the state scored 61.18 out of 100 in 2016 in Reading Tests and 61.69 in Math Tests. The standard 8/9 students scored 62.39 in Reading Tests, and a dismal 34.35 in Math Tests. The drop-out rate in the secondary level is also alarming at 12.65% compared to a 3.16% in the primary level and 1.69% at the upper primary level.

12.10 The state also needs to address the issue of violence against women. According to State Women’s Commission data, in 2016, around 1412 women within the 15-49 years of age experienced physical or sexual violence. As per the Uttarakhand Police’s report, between 1st January 2016 and 30th November 2016, 1896 cases of violence against women got reported. Around 12.7% of women within 15-49 years of age ever married experienced spousal violence in 2016. This status report of women coupled with the alarming gender ratio (888 at birth, female to male) in Uttarakhand needs to be addressed as soon as possible, and corrective measures need to be implemented.

12.11 The dismal status of women in Uttarakhand is further evidenced by the fact that 52.7% of the women engaged in domestic work actually collect water or woods from the forests (as per National Sample Survey data). Although 50% of the seats in Panchayat bodies are held by women, only 30% of public servants are women. According to the sixth economic census, only 9.26% of entrepreneurs are women.

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Graph 12.1: Literacy Rate in the Districts in Uttarakhand in 2011

100 90 80 70 60 50 40

LiteracyRate 30 20 10 0

Districts

Total Male Female

12.12 Graph 12.1 shows that the districts from the hills region in Uttarakhand have achieved more than the plains districts in terms of literacy rate. In all the districts, male literacy rate is higher than the female literacy rate.

Table 12.1: Literacy Rate in the Districts in Uttarakhand in 2011 for Population Aged 7 years or Older (per 100 individuals) District Total Male Female Uttarkashi 75.8 88.8 62.4 Chamoli 82.7 93.4 72.3 Tehri Garhwal 76.4 89.8 64.3 Dehradun 84.2 89.4 78.5 Garhwal 82.0 92.7 72.6 Rudraprayag 81.3 93.9 70.4 Pithoragarh 82.2 92.7 72.3 Almora 80.5 92.9 69.9 Nainital 83.9 90.1 77.3 Bageshwar 79.8 91.6 68.0 Champawat 80.0 92.3 69.0 Total (Hills Districts) 81.8 91.0 72.7 Hardwar 73.4 81.0 64.8 Udham Singh Nagar 73.1 81.1 64.6 Total (Plains Districts) 73.3 81.1 64.6 Uttarakhand 78.8 87.4 70.0 Source: Statistical Diary of Uttarakhand 2014-15

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12.13 Although Uttarakhand has to achieve more in terms of education, data for last few decades show that the situation has improved quite a bit over time. Graph 12.2 shows that the literacy rate in Uttarakhand has been increasing over the last few decades. However, the overall female literacy rate has always been lower than the overall male literacy rate for the state. Although the gap between male and female literacy has been declining over the years, there is still much progress to be made.

Graph12.2: Literacy rate (per 100 individuals) in Uttarakhand over the years 100 90 80 70 60 50 40

LiteracyRate 30 20 10 0 1981 1991 2001 2011 Year

Total Male Female

Table 12.2: Literacy rate (per 100 individuals) in Uttarakhand over the years Year Total Male Female 1981 46.06 62.35 25.00 1991 57.75 72.79 41.63 2001 71.60 83.30 59.60 2011 78.80 87.40 70.00 Source: Statistical Diary of Uttarakhand 2014-15

12.14 If we compare the literacy rate in Uttarakhand to that of India, then we find that Uttarakhand is doing better than the country average. Table 3.3 shows that for the entire population in India aged seven years and older, the literacy rate is 73.0, whereas in Uttarakhand it is 78.8. Uttarakhand has also outperformed the country in terms of male and female literacy rates. The male literacy rate in Uttarakhand is 87.4, while it is 80.9 for India overall. Female literacy rate in Uttarakhand is 70.0 compared to 64.6 for entire India. The effort of state administration to increase literacy has been relatively successful in Uttarakhand. Establishment of distance learning centres throughout the state has also been successful, especially since much of the state falls under hilly terrain.

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Table 12.3: Literacy Rate in India and Uttarakhand in 2011 for Population Aged 7 years or Older (per 100 individuals) Total Male Female Uttarakhand 78.8 87.4 70.0 India 73.0 80.9 64.6 Source: Statistical Diary of Uttarakhand 2014-15

12.15 To further understand the development in the education sector in the state, we take note of the number of educational institutions in Uttarakhand. The number of junior basic schools in Uttarakhand increased from 15356 in 2008-09 to 15644 in 2014-15. There has been a noticeable improvement in terms of establishing senior basic schools and higher secondary/intermediate schools in Uttarakhand. In 2008-09, there were 4296 senior basic schools, and in 2014-15 that number jumped to 4841. The number of higher secondary/intermediate schools in Uttarakhand increased from 2326 in 2008-09 to 3428 in 2014-15. In 2014-15, the state had 116 undergraduate/post graduate colleges, and 16 universities (central/state/private).

Table 12.4: Government Recognized Educational Institutions in Uttarakhand 2008-09 2009-10 2011-12 2012-13 2013-14 2014-15 Junior Basic School 15356 15644 15428 15945 15507 15517 Senior Basic School 4296 4296 4605 4546 4657 4841 Higher Secondary/ 2326 2439 3060 3222 3256 3428 Intermediate Undergraduate/ 104 106 108 107 116 116 Post Graduate College University (Central, 13 12 16 16 16 16 State, and Private) Deemed University 3 4 3 4 4 4 Agricultural and - - - - - 1 Technological Universities IIT/ IIM 1 1 2 2 2 2 Source: Statistical Diary of Uttarakhand 2014-15, 2013-14, 2012-13, 2011-12, 2009-10, 2008-09

12.16 Graph 12.3 show the number of students enrolled in different types of educational institutions in Uttarakhand. We see that although the number of educational institutions in the state has been on the rise, total enrolment in different educational institutions at different levels has been erratic. The number of students in junior basic schools and senior basic schools has declined over the years, and the number of students in higher secondary schools

178 has increased. This means that though the students who were already in schools are progressing, the number of new entrants has gone down drastically. This is another outcome of migration the state has witnessed in the recent years. As younger generation move out, the number of school age children also go down, and this has been evident in our data.

Table 12.5: Government Recognized Educational Institutions in Uttarakhand

2008-09 2009-10 2011-12 2012-13 2013-14 2014-15

M F Tot M F Tot M F Tot M F Tot M F Tot M F Tot

Junior 62 58 12 62 53 11 54 49 10 42 40 82 47 45 93 39 37 77 Basic 01 31 03 32 23 55 01 00 30 03 19 23 52 66 18 31 89 21 School 90 26 31 99 40 63 09 48 15 73 71 44 10 45 55 94 80 74 6 9 7 Senior 25 23 48 27 26 53 28 26 55 18 16 35 24 21 46 23 19 43 Basic 08 72 81 13 48 62 26 79 05 79 58 38 88 33 21 59 84 43 School 58 69 27 59 57 16 50 16 66 17 96 13 88 09 97 30 11 41 Higher 39 33 73 42 26 68 33 30 64 60 55 11 68 61 12 64 58 12 Secon 29 99 28 39 58 97 94 61 55 00 03 50 13 69 98 15 20 23 dary/ 23 41 64 31 08 39 88 04 92 30 60 39 46 50 29 15 75 59 Interm 0 6 0 ediate Under 58 72 13 62 85 14 62 90 15 59 86 14 65 89 15 53 80 13 gradu 14 80 09 29 61 79 59 04 26 88 77 66 44 75 52 23 60 38 ate/ 4 2 46 0 8 08 2 5 37 5 7 62 6 4 00 0 0 30 Post Gradu ate Colleg e Univer 10 94 20 75 85 16 15 14 30 12 94 21 41 43 85 13 12 25 sity 64 67 11 15 73 08 73 94 67 46 45 91 83 62 45 00 15 16 5 2 8 3 6 9 5 0 7 7 4 Source: Statistical Diary of Uttarakhand 2014-15, 2013-14, 2012-13, 2011-12, 2009-10, 2008-09 For years 2008-09, 2009-10, 2011-12, 2012-13, and 2013-14, the number of university students are given for Garhwal University and Kumaon University only

Graph 12.3: Total Students Enrolled in Various Government Recognized Institutes in Uttarakhand 1400000 1200000 1000000 800000 600000 400000 200000

NumberStudents of 0 Junior Basic School Senior Basic School Higher Secondary/ Undergraduate/ University Intermediate Post Graduate College Educational Institutions

2008-09 2009-10 2011-12 2012-13 2013-14 2014-15

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12.17 The planned and non-planned government expenditures for education sector in Uttarakhand are given in table 12.6. Although both the plan and non-plan expenditures increased in 2014-15 compared to 2013-14, there was a fall in budgeted plan expenditure for 2015-16. The non-plan expenditure though has been increasing over the years. However, it is unfortunate that for the 2015-16 financial year, the state has reduced the budgeted amount for plan expenditure to Rs 801.92 crores.

Table 12.6: Government Expenditure on Education in Uttarakhand (in Rs. Crores) 2013-14 Actual Expenditure 2014-15 Revised Estimates 2015-16 Budgeted Amount Plan Non-plan Plan Non-plan Plan Non-plan Primary 270.87 1458.99 588.66 1668.23 506.55 1892.63 Education Secondary 78.8 1726.46 177.46 1972.88 129.90 2164.64 Education University 43.49 163.52 63.38 195.14 71.60 216.04 and Higher Education Expansion of 2.96 16.93 4.07 18.83 6.16 20.17 Language Training, 20.70 11.14 26.51 12.83 31.18 17.87 Directional, Research, Others Technical 68.31 62.91 54.35 75.65 56.53 65.90 Education Total 485.13 3439.95 914.43 3943.56 801.92 4377.25 Source: Statistical Diary of Uttarakhand 2014-15

12.18 The number of technical educational institutions, and industrial training institutes in Uttarakhand has been increasing over the years as is evident from table 12.7. However, the number of engineering colleges in the state has decreased. This is not surprising given the fact that the total intake in the engineering colleges in the state has fallen over the years (from 9135 in 2012-13 to 5445 in 2014-15). This trend is also evident in the student strength in technical educational institutions and industrial training institutes. Several reasons like industrial stagnation, out migration from the state, migration of skilled workers from elsewhere in India, and saturation of employment opportunities may be responsible for this. 12.19 Table 12.8 shows the performance of students in the Class X National Achievement Survey conducted by NCERT in 2015. NCERT conducted the survey both for English and Mathematics. Uttarakhand had a dismal performance by being placed at the 24th rank in the English-survey among states and union territories. The female students overall outperformed the male students as the girls scored 231 on average and the boys scored 228. The overall national average is 250 whereas the average for Uttarakhand is 229. Compared to the national average of 244 for rural and 263 for urban student population, Uttarakhand fares poorly with a score of 229 for rural and 231 for rural. The category wise average scores for Uttarakhand follow the similar trend of lagging behind the national average.

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Table 12.7: The number of technical educational institutions, and industrial training institutes in Uttarakhand 2012-13 2013-14 2014-15 Technical Educational Institutions Number 41 52 53 Intake Capacity 4656 9252 13931 Actual Intake 10631 10144 10383 Industrial Training Institutes Number 115 161 174 Intake Capacity 11100 14661 10111 Actual Intake 7082 9835 6364 Teacher Training Institutes Number 13 13 13 Intake Capacity 1300 650 1216 Actual Intake - 650 1075 Engineering Colleges Number 35 39 29 Intake Capacity 11463 10050 9810 Actual Intake 9135 5196 5445 IIT Roorkee Number 1 1 1 Intake Capacity 1115 1130 2095 Actual Intake 1043 1126 2024 IIM Kashipur Number 1 1 1 Intake Capacity 41 131 112 Actual Intake 41 131 112 Source: Statistical Diary of Uttarakhand 2014-15

Table 12.8: State-wise Mean Achievement Score of students in English

State/UTs & English Boards Mean Achievement Gender-wise Area-wise Category-wise Boys Girls Rural Urban SC ST OBC Others Uttarakhand 229 228 231 229 231 225 229 229 231

CBSE 319 311 329 310 324 292 316 314 324

ICSE 372 366 377 358 375 350 349 349 379 National 250 248 252 244 263 238 241 245 267

Source : National Achievement Survey (NAS) Class X- 2015, NCERT

12.20 Table 12.9 tells a similar story for student achievement in mathematics. Uttarakhand again lags behind with a mean score of 240, whereas the national average is 250. The same trend follows for category-wise score distribution as well as gender-wise and area-wise score

181 distribution. Overall, immediate measures need to be taken to reverse this trend of under- performance.

Table 12.9: State-wise Mean Achievement Score of students in Mathematics

State/UTs & Mathematics Boards Mean Gender-wise Area-wise Category-wise Achievement Boys Girls Rural Urban SC ST OBC Others

Uttarakhand 240 237 247 238 247 231 238 243 243

CBSE 286 283 290 282 288 279 247 290 288

ICSE 315 314 318 307 317 295 276 302 320

National 250 250 250 247 256 240 237 250 260 Source : National Achievement Survey (NAS) Class X- 2015, NCERT

12.21. To have more in-depth understanding of how Uttarakhand is doing in comparison to the nation, we look at table 12.10. The per capita net state domestic product in terms of 2004- 05 prices in Uttarakhand (Rs. 54462) was more than the national average (Rs. 38856) in the year 2012-13. The growth rate of Industry GSDP was 5.23% in Uttarakhand in 2012-13, whereas the national average was 0.4%. The growth rate of Agriculture GSDP in Uttarakhand in 2012-13 was 3.89%, whereas the national average was 4.7%. Uttarakhand was also lagging behind the national average in terms of the growth rate in Services GSDP (6.8% nationally compared to 6.3% in Uttarakhand).

12.22 One alarming development in Uttarakhand in recent years has been the adverse gender ratio. The sex ratio (females per 1000 males) at the national level in 2011 was 943, whereas that in Uttarakhand was 963. But, among the 0-6 years age group, the national level sex ratio was 919 compared to 890 in Uttarakhand. This is especially alarming as the population in India as well as in Uttarakhand grew at considerable rate in the preceding decade (17.6% at the national level, 18.8% in Uttarakhand).

12.23 Although Uttarakhand is performing worse in English and mathematics achievement tests in terms of the national average, the literacy rate in Uttarakhand (79.6% in 2011) is higher than the overall national literacy rate (74%).

12.24 The infant mortality rate (per 1000 live births) in Uttarakhand was 32 in 2014, compared to the national average of 40. However, the maternal mortality rate (per 100,000 live births) was higher in Uttarakhand between 2010-12 (292) than the nationwide average (178). Based on this data, better prenatal care needs to be provided to women in Uttarakhand.

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12.25 According to National Sample Survey 68th round (2011-12), the unemployment rate in Uttarakhand is higher at 3.2% than the national average of 2.3%. As job creation, especially in the hills region of the state, has not been satisfactory, we have seen migration both within the state from hills to plains, and out of the state to other states with better job prospects.

12.26 The net enrolment ratio (NER, number of children enrolled in primary school who belong to the age group that officially corresponds to primary schooling, divided by the total population of the same age group) at both primary and upper primary level in Uttarakhand has been lagging behind the national average. While the NER in Uttarakhand at primary level is 83.5% and at upper primary level is 63.4%, those figures for nationwide average are 88.1% and 70.2% respectively.

12.27 Facility wise, Uttarakhand is doing better than the overall condition at India level. Households availing banking services, households with latrine facility within premises, and households with access to safe drinking water in Uttarakhand are respectively 80.7%, 65.8%, and 92.2%, whereas the nationwide averages are 58.7%, 46.9%, and 85.5% respectively.

Table 12.10: Comparison in terms of Key Characteristics between Uttarakhand and India Indicator Source Periodicity/ Latest available data All India Uttarakhand Per Capita NSDP at 2004-05 prices (Rs.) CSO Annual/2012-13, as on 01.08.2014 38856 54462 Growth in Per Capita NSDP at 2004-05 CSO Annual/2012-13, as on 01.08.2014 2.12 3.53 prices (%) Growth rate in GSDP-Total CSO Annual/2012-13, as on 01.08.2014 4.7 5.61 Growth rate in GSDP-Agriculture CSO Annual/2012-13, as on 01.08.2014 4.7 3.89 Growth rate in GSDP-Industry CSO Annual/2012-13, as on 01.08.2014 0.4 5.23 Growth rate in GSDP-services CSO Annual/2012-13, as on 01.08.2014 6.8 6.3 Area (Sq. Km.) Census Decadal/2011 3287240 53483 Population (crore) Census Decadal/2011 121.02 1.01 Population Density (Per Sq. Km.) Census Decadal/2011 368 189 Decadal Growth Rate of Population (2001- Census Decadal/2011 17.6 18.8 2011) (%) Sex Ratio (Females/ 1000 Males) Census Decadal/2011 943 963 Sex Ratio (0-6 years) (Female children/ Census Decadal/2011 919 890 1000 male children) Total Literacy Rate (%) Census Decadal/2011 74 79.6 Male (%) Census Decadal/2011 82.1 88.3 Female (%) Census Decadal/2011 65.5 70.7 Gender Gap in Literacy (%) Census Decadal/2011 16.7 17.6 Infant Mortality Rate (IMR) (per 1000 live SRS Half-Yearly/September 2014 40 32 births)

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Maternal Mortality Rate (MMR) (per SRS 3 years/2010-12 178 292 100000 live births) Total Fertility Rate (TFR) (Birth/ woman) SRS 2012 2.4 NA Neo Natal Mortality Rate (NMR) (per 1000 SRS 2011 31 NA live births) Under 5 Mortality Rate (U-5MR) (per 1000 SRS 2012 52 NA live births) Birth Rate (%) SRS Half-Yearly/September 2014 21.4 18.2 Death Rate (%) SRS Half-Yearly/September 2014 7 6.1 Highway Length per sq km MoRTH Basic Road Statistics of India 2011-12 0.023 0.038 (Data as on 31st march 2012) State Highways per sq km MoRTH Basic Road Statistics of India 2011-12 0.05 0.071 (Data as on 31st March, 2012) Per Capita Consumption of Electricity MoP For the year 2012-13 914.4 1297.3 (kWh) Total Rail Route (km) per sq km of area MoR Annual Statistical Statement 2013-14 0.02 0.006 (Data as on 31st march, 2013) Rural Tele Density (%) MoCIT Annual Report (2013-14) (Data as on 31st 44 35.6 March, 2014) Urban Tele Density (%) MoCIT Annual Report (2013-14) (Data as on 31st 145.5 131.5 March, 2014) Unemployment Rate (Usual Status NSS NSS 68th Round, 2011-12 2.3 3.2 (adjusted)) (%) Dropout Rate: Primary Level (%) DISE DISE, 2013-14 data for 2012-13 6.5 4.9 Dropout Rate: Upper Primary Level (%) DISE DISE, 2013-14 data for 2012-13 6.6 2.1 Gross Enrolment Ratio: Primary Level (%) DISE DISE, 2013-14 data for 2013-14 101.4 100.6 Net Enrolment Ratio: Primary Level (%) DISE DISE, 2013-14 data for 2013-14 88.1 83.5 Gross Enrolment Ratio: Upper Primary DISE DISE, 2013-14 data for 2013-14 89.3 86.5 Level (%) Net Enrolment Ratio: Upper Primary Level DISE DISE, 2013-14 data for 2013-14 70.2 63.4 (%) Household availing banking services (%) Census Census, 2011 58.7 80.7 Households with latrine facility within Census Census, 2011 46.9 65.8 premises (%) Safe Drinking Water Census Decadal/2011 85.5 92.2 (Tap/Handpump/Tubewell) (%) Forest Cover (area in sq.Km.) MoEF Forest Survey of India, 2013 697898 24508 Forest Cover (% of geographical area) MoEF Forest Survey of India, 2013 21.2 45.8

12.28. In graph 12.4, we get a glimpse of the gender distribution among the districts in Uttarakhand. A very interesting picture of the social structure of the state emerges from this data. We see that in all the districts, gender ratio is much better in rural areas, than in urban areas. Another very interesting development is that gender ratio is much better in favour of women in the hills districts, than the plains districts. Migration is one possible explanation behind this phenomenon. As more and more males come down from the hills to the plains, or from rural areas to urban areas in search of livelihood, mainly women are left behind in those places.

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Graph 12.4 Sex Ratio (Number of females per 1000 males) (Source: Census 2011) 1400 1200 1000 800 600 400 200 0

Total Rural Urban

12.29. Graph 12.5 provides us with the share of population using family planning methods. People in the hills districts are in general using more family planning methods than the people living in the plains districts. More effective communication needs to be put in place to make the population aware of the methods and benefits of family planning, especially in the plains districts.

Graph12.5: Current use of family planning methods (%) (Source: AHS 2012-13, NITI Aayog) 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Total Rural Urban

12.30. Uttarakhand needs a lot of improvement in terms of institutional deliveries. Although the state has made decent progress in terms of institutional deliveries in the urban areas, a

185 significant portion of childbirth in the rural areas is in non-institutional setting. Graph 12.6 shows the variation within districts in terms of institutional deliveries.

Graph 12.6: Institutional Deliveries (%) (AHS 2012-13, NITI Aayog) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Total Rural Urban

12.31. In graph 12.6, we can find the mean age at marriage for girls among the districts in Uttarakhand. In all the cases, the mean age at marriage is above 20 years. This shows the efficacy of the campaigns against child marriage in the state.

Graph12.7: Mean age at marriage for girls (Source: AHS 2012-13, NITI Aayog) 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Total Rural Urban

12.32. For the boys also, the mean age at marriage is over 21 years among the districts in Uttarakhand. This holds true for both the rural areas and urban areas, as well as hills and plains districts.

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Graph 12.8: Mean age at marriage for girls (Source: AHS 2012-13, NITI Aayog)

35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Total Rural Urban

12.33. Graph 12.8 shows the net enrolment ratio (NER, number of children enrolled in primary school who belong to the age group that officially corresponds to primary schooling, divided by the total population of the same age group) in the districts in Uttarakhand. Overall, the state has some grounds to cover in this aspect. Only Udham Singh Nagar district is achieving almost 100% NER in primary. All the districts have less than 75% NER in case of upper primary. More resources in the state need to be diverted to education so that this worrying trend can be reversed.

Graph 12.9: Net Enrolment Ratio (%) (Source: DISE 2013-14, NITI Aayog) 120.00 100.00 80.00 60.00 40.00 20.00 0.00

Primary Upper Primary

12.34. The pupil teacher ratio in the state’s districts are given in graph 3.18. Owing to growth in the number of schools, and falling population level, the hills districts are faring better in terms of pupil teacher ratio. However, the schools in the plains districts have relatively lower number of teachers to take care of the students. The outcome of this problem manifests itself in the poorer performance of the students from the state compared to the national level.

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Graph 12.10: Pupil-Teacher Ratio (%) (Source: DISE 2013-14, NITI Aayog) 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Primary Upper Primary

Graph 12.11: New Government Schools since 2003 (%) (Source: DISE 2013-14, NITI Aayog) 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

Primary Upper Primary

12.35 Majority of the new government schools being established in the state of Uttarakhand since 2003 belong to the upper primary segment. While most of the districts have more than half of the upper primary schools being set up after 2003, Pauri Garhwal district has seen very little development in this aspect. This also highlights the fact that the educational infrastructure was lacking in the state, and the state has since made progress in this area.

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12.36. In Uttarakhand, mobile telephony has also gained impressive momentum, given the mountainous terrain of the state. In all the districts, more than half the households have mobile phones. Even in rural areas, in almost all the districts, more than 50% of households have access to mobile phones.

Graph 12.12: Households with mobile phone (%) (Source: Census 2011, NITI Aayog) 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

Total Rural Urban

12.37. Gini Coefficient provides us with a measure of inequality among the population. As we can see from table 12.21, over a five-year period (from 2004-05 to 2009-10), the distribution of consumption has actually become worse in Uttarakhand. However, the distribution of resources is somewhat equitable in the state as well as in the nation overall. But following rapid growth in the economy, we can only expect the distribution of resources to get more unequal. Hence, a proper safety net needs to be devised and implemented in order to safeguard the interests of general population. Otherwise, the current trend of migration in and out of the state will become a more serious problem.

Table 12.21: Gini Coefficient of Distribution of Consumption : 1973-74 to 2009-10 State 2004-05 2004-05 2009-10 (URP)* 2009-10 (URP)* (MRP)* (MRP)* Rural Urban Rural Urban Rural Urban Rural Urban India 0.300 0.371 0.266 0.348 0.291 0.382 0.276 0.371 Andhra Pradesh 0.289 0.370 0.252 0.342 0.278 0.382 0.269 0.353 Arunachal Pradesh 0.270 0.244 0.240 0.213 0.333 0.325 0.293 0.299 Assam 0.195 0.316 0.182 0.301 0.244 0.324 0.220 0.328 Bihar 0.205 0.330 0.185 0.312 0.226 0.332 0.215 0.319 Chhattisgarh 0.295 0.434 0.251 0.354 0.276 0.326 0.234 0.305 Delhi 0.264 0.329 0.262 0.324 0.253 0.345 0.233 0.352 Goa 0.294 0.405 0.267 0.333 0.214 0.406 0.219 0.251

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Gujarat 0.269 0.305 0.251 0.295 0.253 0.328 0.252 0.309 Haryana 0.322 0.360 0.295 0.326 0.301 0.360 0.278 0.357 Himachal Pradesh 0.296 0.318 0.260 0.261 0.305 0.399 0.283 0.351 Jammu & Kashmir 0.237 0.245 0.197 0.241 0.235 0.305 0.221 0.307 Jharkhand 0.225 0.351 0.199 0.326 0.240 0.358 0.212 0.343 Karnataka 0.263 0.364 0.232 0.358 0.235 0.334 0.231 0.375 Kerala 0.341 0.400 0.294 0.353 0.417 0.498 0.350 0.400 Madhya Pradesh 0.265 0.393 0.237 0.351 0.292 0.364 0.276 0.365 Maharashtra 0.308 0.372 0.270 0.350 0.268 0.410 0.244 0.380 Manipur 0.156 0.174 0.136 0.149 0.173 0.213 0.159 0.193 Meghalaya 0.157 0.258 0.136 0.240 0.200 0.256 0.170 0.243 Mizoram 0.193 0.244 0.167 0.213 0.237 0.230 0.194 0.228 Nagaland 0.207 0.235 0.173 0.214 0.186 0.237 0.181 0.222 Odisha 0.281 0.350 0.254 0.330 0.262 0.389 0.247 0.375 Punjab 0.279 0.393 0.263 0.323 0.288 0.371 0.285 0.358 Rajasthan 0.246 0.367 0.204 0.303 0.225 0.378 0.214 0.316 Sikkim 0.266 0.254 0.236 0.232 0.275 0.194 0.259 0.186 Tamil Nadu 0.316 0.356 0.258 0.345 0.264 0.332 0.257 0.327 Tripura 0.216 0.338 0.203 0.300 0.205 0.294 0.197 0.288 Uttar Pradesh 0.286 0.366 0.234 0.339 0.356 0.329 0.438 0.321 Uttarakhand 0.279 0.323 0.223 0.302 0.263 0.361 0.231 0.395 West Bengal 0.270 0.378 0.241 0.356 0.239 0.384 0.220 0.384 A&N Islands 0.290 0.351 0.253 0.305 0.246 0.271 0.256 0.316 Chandigarh 0.240 0.344 0.244 0.341 0.193 0.449 0.308 0.373 Dadra & N. Haveli 0.351 0.296 0.324 0.295 0.206 0.208 0.220 0.224 Daman & Diu 0.223 0.258 0.209 0.242 0.305 0.283 0.287 0.264 Lakshadweep 0.240 0.383 0.167 0.236 0.320 0.336 0.314 0.279 Puducherry 0.337 0.312 0.281 0.302 0.307 0.307 0.254 0.378 * URP - Uniform Reference Period; MRP - Mixed Reference Period Source: Unofficial estimates of Planning Commission; 61st Round 2004-05 MRP & 2009-10; 66th Round Note: Gini coefficient is calculated assuming that all individuals within each state have gross income equal to per capita GSDP. This method ignores the inequality arising out of the unequal distribution within each state, and focuses only on inequality.

References Statistical Diary of Uttarakhand 2012-13 & 2014-15, Department of Economics and Statistics, Government of Uttarakhand, Dehradun http://www.indiastat.com/ www.niti.gov.in https://www.unicef.org/ http://www.uttarakhandstat.com/

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Chapter 13 Population and Migration

13.1 The population in Uttarakhand has been increasing over the years, just like the rest of India. Census data shows that there was 18.8% rise in Uttarakhand’s population from 2001 to 2011. The population growth rate in Uttarakhand has been higher than the average growth rate in India for this same time period (17.7%). However, the population growth rate has fallen in Uttarakhand between 2001-11 in comparison to the decade before (1991-01) as the earlier growth rate was 20.41%. Table 13.1 shows the population in Uttarakhand over the last century, along with the population density.

Table 13.1: Population in Uttarakhand Population (in lakhs) Population Density (per square KM) Census Year Uttarakhand India Uttarakhand India 1901 20 2384 37 77 1911 22 2521 40 82 1921 21 2513 39 81 1931 22 2790 42 90 1941 25 3187 47 103 1951 29 3611 53 117 1961 37 4392 69 142 1971 46 5482 86 177 1981 57 6833 90 216 1991 71 8463 133 274 2001 85 10287 159 325 2011 101 12105 189 382 Source: Statistical Diary of Uttarakhand 2014-15

13.2 In table 13.2, we have the decadal growth rate of population among districts in Uttarakhand. One very important features of this table is that it shows the hill-to-plains migration in the state. As can be seen from this data, the growth rate in population has been slowing down in the hilly areas of the state by a wide margin. In some cases, the population growth rate even became negative. For example, between 1991 and 2011, population growth rate in Uttarakhand fell from 23.13% to 18.81%. But for a district like Chamoli, it fell from 22.63% in 1991 to 5.74% in 2011. Another district Tehri Garhwal faced the same fate as its population growth rate dipped from 16.53% in 1991 to 2.35% in 2011. Things are even worse in Garhwal and Almora districts. Both these districts have seen a fall in the population growth rate over the two decades. In Garhwal, population growth rate was 8.57% in 1991, but in 2011 it became -1.41%. For Almora, a population growth rate of 8.94% in 1991 turned into -1.64% in 2011. While a good amount of the population migrated out of the state, some of the districts within Uttarakhand have also been beneficiaries of this situation. For example, Dehradun district saw a fall in population growth rate from 34.66% in 1991 to 25% in 2001, but a decade later in 2011 it again peaked to 32.33%. Hardwar district also saw a rise in the population growth rate from 26.31% in 1991 to 30.63% in 2011.

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13.3 Migration has always been an important feature of Uttarakhand. During the 11th and 12th century AD, in-migration took place in the hilly regions of the state from the other parts of Indian subcontinent. During the British rule, the natives of these hilly areas, whose ancestors had earlier cleared the dense jungles in the hills to set up establishments, would migrate out of the state for a few years to work in the army, and then return to their ancestral villages at the end of their service. However, the recent migration from the hills region is different than the earlier migration as the recent outflow is permanent in nature compared to the earlier temporary or seasonal ones. 13.4 The out-migration from the hills region in Uttarakhand to the plains region has recently become a serious policy debate. Districts like Garhwal and Almora witnessed a fall of 9,807 and 10,360 persons respectively in their population between 2001 and 2011. The uneven economic growth across the state has given rise to shunted developmental progress in the remote areas within the state. As a result of this, with the rising economic opportunity in the plains region, the people of the hills region started to migrate away from their native locations. The situation has now become so severe that many villages in the hills of Uttarakhand have either no population or population in single digit. Uttarakhand being a border state holds immense strategic importance for India’s defence establishment, and this kind of out-migration can create not only humanitarian and socio-economic issues but also national security issues for India. 13.5 According to a recent study by GIDS, the higher level of literacy and educational attainments among the population of Uttarakhand has also contributed to migration out of the hills. Many of the migrants go for salaried jobs than looking for seasonal work in other areas. The lack of employment opportunities in the hills region is one of the major sources of the problem. As the agricultural activities in the hills face severe water supply problem, the youth from those areas are forced to migrate in order to support their family. This has further aggravated the problem as without enough labor to work in farms, agricultural land starts getting abandoned leading to another cycle of migration. Low productivity and lack of technological know-how to diversify crop choice are also a contributing factor in this phenomenon. 13.6 Migration has also altered the social fabric in the hills region in Uttarakhand. As contractors, political leaders, and government officials dictate the terms in village politics (now weakened due to migration of educated population), genuine developmental needs of the people often take a backseat in the face of vested interests. The youth have also fallen victim of circumstances as they indulge more and more in unproductive activities, renting their farmland to Nepalese nationals in exchange of nominal rents. This situation will only get worse unless proper mechanisms are put in place to support entrepreneurial activities (both agricultural and non-agricultural) along with other employment opportunities. Better infrastructure, educational and medical facilities will also help in reducing or even reversing this trend of migration from the hills to the plains. 13.7 Migration has also had an impact on the women population in Uttarakhand. As women have to take care of productive activities within a household (like cooking, cleaning, tending children and animals), they also have to devote more time on outside household work (like

192 agriculture, fodder collection, and MGNREGA works) as in many cases male members have left their homes in search of better employment prospects. Sharp gender specific division in household work also leaves female children with very little time to devote for studies. 13.8 According to some estimates, the migrants generally settle for low-paying regular salaried jobs which give more or less the same income as in agricultural activities. Hence, the rationale behind migration can be explained in terms of lower uncertainty in terms of income, as agricultural activities in the hills region are highly dependent on the availability of water and labor, both of which are in short supply in the hills. On top of that, destruction of crops by wild animals has made farming even more difficult. Heavy rains have destroyed the irrigation channels in the hills, and hydraulic pumps have proven to be unsuccessful. On an official level, neither proper infrastructural support has been set up, nor has any other kind of support been extended (in the form of technological improvement, crop choice diversification, marketing support etc.). Even having livestock remains a problem since fodder is not provided through the PDS, and the alternative of collecting fodder from reserve forests is problematic. 13.9 The lopsided industrial development in Uttarakhand has contributed majorly to the migration from the hills to the plains. The State Industrial Policy has been successful in generating industrial growth in the plains districts. However, the hills districts have not achieved this kind of momentum. The government later set up the Hill Industrial Development Policy which failed to generate much interest initially. However, following a modification, the policy has started to stimulate growth in industries in the hills. However, the pace of development is slow, and a lot remains to be done before the outflow of people from the hills can be reversed. The hilly districts in the state are specifically suitable for the establishment of micro and small enterprises specializing in floriculture, herbal products, handlooms, and pharmaceutical products. This can also become a useful source of employment for the people in the hills as these are labor intensive production processes. 13.10 The state has huge potential as tourist destination, though the potential needs to be evaluated and exploited in a sustainable manner. If the recent history of disasters in the state has taught us anything, we need to be vigilant about the environmental repercussions before jumping on new projects, especially in the hilly regions of Uttarakhand where a diverse collection of flora and fauna requires extra attention. Any unplanned initiative with a lack of foresight can cause considerable damage to the biodiversity in the state, and bring in the next disaster. As a government initiative, Veer Chandra Singh Garhwali Paryatan Swarozgar Yojana has focused on entrepreneurial development in the tourism sector. However, proper monitoring and periodic evaluations are needed to account for the progress made and check for the unintended consequences. 13.11 Schemes like MGNREGA and National Rural Livelihood Mission (NRLM) have failed to generate the required incentives to stop migration from the hills. Irregular payments, lack of work, and corruption have severely reduced the efficacy of MGNREGA. While the NRLM has fared relatively better, the small scale rollout of it has constrained its effectiveness.

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13.12 In order to counter the issue of migration from the hills to the plains in Uttarakhand, a multipronged strategic intervention is needed. Not only the status of agriculture in the hilly areas has to be increased, but also industrial development needs to be fostered. Growth of tourism will be the binding force between these two aspects of developmental progress. Together these three need to have a symbiotic relationship if the trend of migration out of the hills in Uttarakhand has to be reversed. With active technological and marketing help from the government and a well-functioning irrigation system in the hills, agricultural activities can be rejuvenated, especially if value crops are produced and a diversified cropping pattern is developed. In case of abandoned farmlands, the government can design a land-bank for agriculture, and with the consent of legal owners, can lease the land on short or medium run basis to the willing parties who will cultivate the land and pay rent to the government. The government can then share the rent with the actual owners of the land. This way there is a possibility of Pareto improvement in economics terms, where all the parties benefit and no party becomes worse off. As the hills in Uttarakhand are specifically suited for micro and small scale industries, these should be made a priority. The banks need to be coaxed to provide loans to small scale entrepreneurs so that they can set up these labor intensive units which will have a multiplier effect in terms of industrial growth in the region. Proper skill development of population is also required as many of them are not trained for skill intensive jobs. A through infrastructure overhaul is required to implement the reach of skill development programs to the most remote locations of the state. Specific industries like floriculture, handicrafts, herbal products that are suitable for the hills region (keeping the delicate ecosystem in mind) need to be identified for effective incentive design. Uttarakhand has huge potential for tourism. Initiatives like eco-tourism need to be encouraged. Proper monitoring and evaluation activities are needed to be implemented so that the nature doesn’t get harmed in any way. The tourism policy needs to be enacted on the ground. New destinations also need to be developed in a sustainable manner. A conscious approach needs to be adopted in order to address the issue of migration in Uttarakhand. A single perceived solution of the problem will not be able to generate any tangible result. Rather different policies need to be implemented to tackle the issues at root of this problem.

Table 13.2: Decadal Variation in Population of Uttarakhand since 1991

State/Union Census Persons Variation since the Males Females Territory/District Year preceding census

Absolute Percentage UTTARAKHAND 1991 70,50,634 +13,24,662 +23.13 36,40,895 34,09,739 2001 84,89,349 +14,38,715 +20.41 43,25,924 41,63,425 2011 1,00,86,292 +15,96,943 +18.81 51,37,773 49,48,519 Uttarkashi 1991 2,39,709 +48,761 +25.54 1,24,978 1,14,731 2001 2,95,013 +55,304 +23.07 1,52,016 1,42,997 2011 3,30,086 +35,073 +11.89 1,68,597 1,61,489 Chamoli 1991 3,25,247 +60,031 +22.63 1,64,129 1,61,118

2001 3,70,359 +45,112 +13.87 1,83,745 1,86,614

2011 3,91,605 +21,246 +5.74 1,93,991 1,97,614

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Rudraprayag 1991 2,00,515 +30,772 +18.13 95,745 1,04,770 2001 2,27,439 +26,924 +13.43 1,07,535 1,19,904 2011 2,42,285 +14,846 +6.53 1,14,589 1,27,696 Tehri Garhwal 1991 5,20,256 +73,784 +16.53 2,54,188 2,66,068 2001 6,04,747 +84,491 +16.24 2,95,168 3,09,579 2011 6,18,931 +14,184 +2.35 2,97,986 3,20,945 Dehradun 1991 10,25,679 +2,64,011 +34.66 5,56,432 4,69,247 2001 12,82,143 +2,56,464 +25.0 6,79,583 6,02,560 2011 16,96,694 +4,14,551 +32.33 8,92,199 8,04,495 Garhwal 1991 6,70,859 +52,967 +8.57 3,26,038 3,44,821 2001 6,97,078 +26,219 +3.91 3,31,061 3,66,017 2011 6,87,271 -9,807 -1.41 3,26,829 3,60,442 Pithoragarh 1991 4,16,647 +51,506 +14.11 2,09,177 2,07,470 2001 4,62,289 +45,642 +10.95 2,27,615 2,34,674 2011 4,83,439 +21,150 +4.58 2,39,306 2,44,133 Bageshwar 1991 2,26,164 +29,172 +14.81 1,09,979 1,16,185 2001 2,47,163 +20,999 +9.28 1,17,374 1,29,789 2011 2,59,898 +12,735 +5.15 1,24,326 1,35,572 Almora 1991 6,10,453 +50,072 +8.94 2,90,921 3,19,532 2001 6,32,866 +22,413 +3.67 2,94,984 3,37,882 2011 6,22,506 -10,360 -1.64 2,91,081 3,31,425 Champawat 1991 1,90,929 +39,857 +26.38 98,173 92,756 2001 2,24,542 +33,613 +17.60 1,11,084 1,13,458 2011 2,59,648 +35,106 +15.63 1,31,125 1,28,523 Nainital 1991 5,74,832 +1,33,396 +30.22 3,05,494 2,69,338 2001 7,62,909 +1,88,077 +32.72 4,00,254 3,62,655 2011 9,54,605 +1,91,696 +25.13 4,93,666 4,60,939 Udham Singh 1991 9,24,856 +2,56,105 +38.30 4,96,587 4,28,269 Nagar 2001 12,35,614 +3,10,758 +33.60 6,49,484 5,86,130 2011 16,48,902 +4,13,288 +33.45 8,58,783 7,90,119 Hardwar 1991 11,24,488 +2,34,228 +26.31 6,09,054 5,15,434 2001 14,47,187 +3,22,699 +28.70 7,76,021 6,71,166 2011 18,90,422 +4,43,235 +30.63 10,05,295 8,85,127

13.13 Table 13.3 shows the distribution of population in Uttarakhand across districts, along with the gender distribution. Out of the total population of 10,086,292 in Uttarakhand, 4,948,519 are female (49.06%) and 5,137,773 are male (50.94%). Overall, the state of Uttarakhand has 2,056,975 households, majority of which are concentrated in Dehradun (347,001), Hardwar (338,104), and Udham Singh Nagar (308,581). One of the very important features of migration in India is that often the male members in a household migrate to other regions with better livelihood prospects, leaving the female members behind. We see this

195 happening in Uttarakhand too as in many districts in the hilly parts of the state we see female population being higher than the male population (for example, in rural Rudraprayag, total female population is 123620 whereas the total male population is 108740). Majority of the population in Uttarakhand live in the rural area. Out of a total population of 10,086,292, the rural population is 7,036,954 (69.77%), and the urban population is 3,049,338 (30.23%). Out of the total rural population in Uttarakhand, 3517912 are female (49.99%), and 3519042 are male (50.01%). Out of the total urban population, 1,430,607 (46.92%) are female, and 1618731 are male (53.08%).

Table 13.3: District wise Population Distribution in Uttarakhand in 2011 Area (sq. No of Total Population km) Households Person Male Female UTTARAKHAND Total 53483 2056975 10086292 5137773 4948519 Rural 52581.08 1425086 7036954 3519042 3517912 Urban 901.92 631889 3049338 1618731 1430607 Uttarkashi Total 8016 67602 330086 168597 161489 Rural 7988.98 61914 305781 155375 150406 Urban 27.02 5688 24305 13222 11083 Chamoli Total 8030 88964 391605 193991 197614 Rural 7990.47 74318 332209 160369 171840 Urban 39.53 14646 59396 33622 25774 Rudraprayag Total 1984 53542 242285 114589 127696 Rural 1971.25 50882 232360 108740 123620 Urban 12.75 2660 9925 5849 4076 Tehri Garhwal Total 3642 132714 618931 297986 320945 Rural 3575.89 115691 548792 259381 289411 Urban 66.11 17023 70139 38605 31534 Dehradun Total 3088 347001 1696694 892199 804495 Rural 2815.7 144112 754753 392891 361862 Urban 272.3 202889 941941 499308 442633 Garhwal Total 5329 161778 687271 326829 360442 Rural 5256.84 136180 574568 268029 306539 Urban 72.16 25598 112703 58800 53903 Pithoragarh Total 7090 114730 483439 239306 244133 Rural 7073.5 96971 413834 202930 210904 Urban 16.5 17759 69605 36376 33229 Bageshwar Total 2241 58046 259898 124326 135572 Rural 2235.5 55992 250819 119615 131204 Urban 5.5 2054 9079 4711 4368 Almora Total 3144 140577 622506 291081 331425 Rural 3108.32 125209 560192 257359 302833 Urban 35.68 15368 62314 33722 28592 Champawat Total 1766 53953 259648 131125 128523 Rural 1752.96 45741 221305 110842 110463 Urban 13.04 8212 38343 20283 18060 Nainital Total 4251 191383 954605 493666 460939 Rural 4153.12 114954 582871 299257 283614 Urban 97.88 76429 371734 194409 177325

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Udham Singh Nagar Total 2542 308581 1648902 858783 790119 Rural 2419.79 198645 1062142 550470 511672 Urban 122.21 109936 586760 308313 278447 Hardwar Total 2360 338104 1890422 1005295 885127 Rural 2238.76 204477 1197328 633784 563544 Urban 121.24 133627 693094 371511 321583 Source: Census of India 2011

13.14 The district-wise gender distribution of young children (in the 0-6 years’ age group) in Uttarakhand is given in table 13.3. As per the 2011 Census of India, out of a total of 1,355,814 children in this age group, 717,199 are male (53.90%), and 638,615 are female (47.10%). Majority of the young children in this age group also live in rural Uttarakhand. Out of the total 1,355,814 young children in the 0-6 age group, 990,776 live in the rural areas (73.08%), whereas 365,038 live in the urban areas (26.92%).

Table 13.4: District wise Gender Distribution of young children in Uttarakhand in 2011 Name Children in the age group 0-6 Person Male Female UTTARAKHAND Total 1355814 717199 638615 Rural 990776 521792 468984 Urban 365038 195407 169631 Uttarkashi Total 46307 24165 22142 Rural 43663 22691 20972 Urban 2644 1474 1170 Chamoli Total 52161 27609 24552 Rural 45217 23813 21404 Urban 6944 3796 3148 Rudraprayag Total 32046 16823 15223 Rural 30995 16240 14755 Urban 1051 583 468 Tehri Garhwal Total 84657 44634 40023 Rural 76718 40333 36385 Urban 7939 4301 3638 Dehradun Total 201652 106746 94906 Rural 99957 52203 47754 Urban 101695 54543 47152 Garhwal Total 83901 44055 39846 Rural 71170 37212 33958 Urban 12731 6843 5888 Pithoragarh Total 63293 34853 28440 Rural 54900 29986 24914 Urban 8393 4867 3526 Bageshwar Total 35560 18679 16881 Rural 34545 18129 16416 Urban 1015 550 465 Almora Total 80082 41672 38410 Rural 74375 38605 35770 Urban 5707 3067 2640 Champawat Total 37028 19766 17262 Rural 32342 17198 15144 Urban 4686 2568 2118

197

Nainital Total 124272 65337 58935 Rural 79212 41526 37686 Urban 45060 23811 21249 Udham Singh Nagar Total 229162 120687 108475 Rural 149886 78825 71061 Urban 79276 41862 37414 Hardwar Total 285693 152173 133520 Rural 197796 105031 92765 Urban 87897 47142 40755 Source: Census of India 2011

13.15 Table 13.5 gives the population distribution of scheduled castes and scheduled tribes across the districts in Uttarakhand. Out of the total population of 10,086,292 in Uttarakhand, 1,892,516 belong to scheduled castes (18.76%) and 291,903 belong to scheduled tribes (2.89%). Majority of the scheduled castes population are concentrated in Hardwar (411,274), Udham Singh Nagar (238,264), Dehradun (228,901), and Nainital (191,206), whereas most of the scheduled tribes population are concentrated in Udham Singh Nagar (123,037) and Dehradun (111,663).

Table 13.5: District wise Distribution of Scheduled Castes and Scheduled Tribes Population in Uttarakhand in 2011 Name Scheduled Castes Scheduled Tribes Person Male Female Person Male Female UTTARAKHAND Total 1892516 968586 923930 291903 148669 143234 Rural 1496665 761103 735562 264819 134691 130128 Urban 395851 207483 188368 27084 13978 13106 Uttarkashi Total 80567 40833 39734 3512 1651 1861 Rural 76875 38936 37939 3374 1581 1793 Urban 3692 1897 1795 138 70 68 Chamoli Total 79317 39718 39599 12260 6021 6239 Rural 68000 33757 34243 9046 4457 4589 Urban 11317 5961 5356 3214 1564 1650 Rudraprayag Total 47679 23585 24094 386 217 169 Rural 46279 22823 23456 309 169 140 Urban 1400 762 638 77 48 29 Tehri Garhwal Total 102130 50371 51759 875 459 416 Rural 94628 46327 48301 630 312 318 Urban 7502 4044 3458 245 147 98 Dehradun Total 228901 120430 108471 111663 58264 53399 Rural 119123 62548 56575 101475 52825 48650 Urban 109778 57882 51896 10188 5439 4749 Garhwal Total 122361 59842 62519 2215 1174 1041 Rural 109576 53278 56298 1952 1018 934 Urban 12785 6564 6221 263 156 107 Pithoragarh Total 120378 60111 60267 19535 9558 9977 Rural 109541 54528 55013 15915 7822 8093 Urban 10837 5583 5254 3620 1736 1884 Bageshwar Total 72061 35623 36438 1982 971 1011 Rural 69842 34489 35353 1874 916 958 Urban 2219 1134 1085 108 55 53 Almora Total 150995 72695 78300 1281 633 648 Rural 140931 67619 73312 750 364 386

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Urban 10064 5076 4988 531 269 262 Champawat Total 47383 24188 23195 1339 777 562 Rural 41725 21262 20463 1084 640 444 Urban 5658 2926 2732 255 137 118 Nainital Total 191206 98824 92382 7495 3801 3694 Rural 137906 71137 66769 5780 2934 2846 Urban 53300 27687 25613 1715 867 848 Udham Singh Total 238264 124385 113879 123037 61758 61279 Nagar Rural 174919 91263 83656 117381 58843 58538 Urban 63345 33122 30223 5656 2915 2741 Hardwar Total 411274 217981 193293 6323 3385 2938 Rural 307320 163136 144184 5249 2810 2439 Urban 103954 54845 49109 1074 575 499 Source: Census of India 2011

13.16 The literacy situation in Uttarakhand is given by table 13.6. Out of the total population of 10,086,292, 6,880,953 are literates (68%). Literacy rate is higher for men (75%) than for women (61%). Literacy rate is higher in the urban areas (74%) than in the rural areas (66%). Dehradun district has the highest literacy rate of 74%. Hardwar has the lowest literacy rate of 62%. Rudraprayag, Garhwal, and Almora districts have the highest male literacy rate of 80%, whereas Dehradun district has the highest female literacy rate of 69%. Hardwar has the lowest male literacy rate of 69%, whereas Uttarkashi has the lowest female literacy rate of 54%.

Table13.6: District wise Literacy Situation in Uttarakhand in 2011

Name Literates Illiterate Literacy Rate

Person Male Female Person Male Female Person Male Female UTTARAKHAND Total 6880953 3863708 3017245 3205339 127406 1931274 68% 75% 61% 5 Rural 4614050 2596171 2017879 2422904 922871 1500033 66% 74% 57% Urban 2266903 1267537 999366 782435 351194 431241 74% 78% 70% Uttarkashi Total 215126 128237 86889 114960 40360 74600 65% 76% 54% Rural 195909 117095 78814 109872 38280 71592 64% 75% 52% Urban 19217 11142 8075 5088 2080 3008 79% 84% 73% Chamoli Total 280556 155395 125161 111049 38596 72453 72% 80% 63%

Rural 232303 126871 105432 99906 33498 66408 70% 79% 61% Urban 48253 28524 19729 11143 5098 6045 81% 85% 77% Rudraprayag Total 170933 91803 79130 71352 22786 48566 71% 80% 62%

Rural 162944 86853 76091 69416 21887 47529 70% 80% 62% Urban 7989 4950 3039 1936 899 1037 80% 85% 75% Tehri Garhwal Total 407994 227406 180588 210937 70580 140357 66% 76% 56%

Rural 352776 195356 157420 196016 64025 131991 64% 75% 54% Urban 55218 32050 23168 14921 6555 8366 79% 83% 73% Dehradun Total 1259506 702216 557290 437188 189983 247205 74% 79% 69% Rural 517836 292382 225454 236917 100509 136408 69% 74% 62% Urban 741670 409834 331836 200271 89474 110797 79% 82% 75%

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Garhwal Total 494889 262148 232741 192382 64681 127701 72% 80% 65%

Rural 404558 213355 191203 170010 54674 115336 70% 80% 62% Urban 90331 48793 41538 22372 10007 12365 80% 83% 77% Pithoragarh Total 345550 189623 155927 137889 49683 88206 71% 79% 64% Rural 289256 159729 129527 124578 43201 81377 70% 79% 61% Urban 56294 29894 26400 13311 6482 6829 81% 82% 79% Bageshwar Total 179483 97546 81937 80415 26780 53635 69% 78% 60%

Rural 172166 93588 78578 78653 26027 52626 69% 78% 60% Urban 7317 3958 3359 1762 753 1009 81% 84% 77% Almora Total 436497 231604 204893 186009 59477 126532 70% 80% 62%

Rural 383089 201819 181270 177103 55540 121563 68% 78% 60% Urban 53408 29785 23623 8906 3937 4969 86% 88% 83% Champawat Total 177726 102015 75711 81922 29110 52812 68% 78% 59%

Rural 149910 86379 63531 71395 24463 46932 68% 78% 58% Urban 27816 15636 12180 10527 4647 5880 73% 77% 67% Nainital Total 696500 385779 310721 258105 107887 150218 73% 78% 67%

Rural 417970 234254 183716 164901 65003 99898 72% 78% 65% Urban 278530 151525 127005 93204 42884 50320 75% 78% 72% Udham Singh Total 1037839 598525 439314 611063 260258 350805 63% 70% 56% Nagar Rural 652717 379437 273280 409425 171033 238392 61% 69% 53% Urban 385122 219088 166034 201638 89225 112413 66% 71% 60% Hardwar Total 1178354 691411 486943 712068 313884 398184 62% 69% 55% Rural 682616 409053 273563 514712 224731 289981 57% 65% 49% Urban 495738 282358 213380 197356 89153 108203 72% 76% 66% Source: Census of India 2011

13.17 Table 13.7 provides the details of working population in Uttarakhand. Total working population in Uttarakhand in 2011 was 3,872,275, out of which 2,870,624 are main workers (74.13%) and 1,001,651 are marginal workers (25.87%). Out of the total working population, 2,551,921 are male workers (65.90%), and 1,320,354 are female workers (34.10%). There are more female marginal workers in general than male in the hilly districts of Uttarakhand. This is not surprising considering that in the absence of male members at home due to migration, female members need to take care of household work as well as certain outside work as required. Districts like Chamoli and Rudraprayag have more female main workers than male. This is again not surprising as these districts have witnessed major migration out of themselves. The hilly districts also have majority of the population living and working in the rural areas in general compared to the plains districts. As has already been pointed out, these are the areas need to be targeted by effective policies to check the flow of migration.

200

Table 13.7: District wise Working Population in Uttarakhand in 2011 Name Total Worker Population Main Working Population Marginal Worker Population

Person Male Female Person Male Female Person Male Female

UTTARAKHAND Total 3872275 2551921 1320354 2870624 2070760 799864 1001651 481161 520490 Rural 2885533 1726674 1158859 1997332 1322523 674809 888201 404151 484050 Urban 986742 825247 161495 873292 748237 125055 113450 77010 36440 Uttarkashi Total 157276 84265 73011 128367 71598 56769 28909 12667 16242 Rural 149067 77991 71076 121215 66015 55200 27852 11976 15876 Urban 8209 6274 1935 7152 5583 1569 1057 691 366 Chamoli Total 180940 93832 87108 115115 65566 49549 65825 28266 37559 Rural 157909 75841 82068 94517 48981 45536 63392 26860 36532 Urban 23031 17991 5040 20598 16585 4013 2433 1406 1027 Rudraprayag Total 113032 52339 60693 78950 37681 41269 34082 14658 19424 Rural 108539 48799 59740 75165 34567 40598 33374 14232 19142 Urban 4493 3540 953 3785 3114 671 708 426 282 Tehri Garhwal Total 280442 140821 139621 165912 98619 67293 114530 42202 72328 Rural 257529 121365 136164 145082 80715 64367 112447 40650 71797 Urban 22913 19456 3457 20830 17904 2926 2083 1552 531 Dehradun Total 582768 458834 123934 488161 399695 88466 94607 59139 35468 Rural 265341 198393 66948 205986 162764 43222 59355 35629 23726 Urban 317427 260441 56986 282175 236931 45244 35252 23510 11742 Garhwal Total 274152 147373 126779 164439 102045 62394 109713 45328 64385 Rural 240786 119739 121047 134797 76895 57902 105989 42844 63145 Urban 33366 27634 5732 29642 25150 4492 3724 2484 1240 Pithoragarh Total 216490 113539 102951 145481 80385 65096 71009 33154 37855 Rural 196459 98024 98435 128711 66919 61792 67748 31105 36643 Urban 20031 15515 4516 16770 13466 3304 3261 2049 1212 Bageshwar Total 123638 58708 64930 78085 38834 39251 45553 19874 25679 Rural 120867 56472 64395 75922 37093 38829 44945 19379 25566 Urban 2771 2236 535 2163 1741 422 608 495 113 Almora Total 298211 142460 155751 201078 102221 98857 97133 40239 56894 Rural 276913 124715 152198 181144 85414 95730 95769 39301 56468 Urban 21298 17745 3553 19934 16807 3127 1364 938 426 Champawat Total 99566 60427 39139 62698 43252 19446 36868 17175 19693 Rural 88092 50601 37491 52275 34254 18021 35817 16347 19470 Urban 11474 9826 1648 10423 8998 1425 1051 828 223 Nainital Total 376181 256935 119246 296424 217381 79043 79757 39554 40203 Rural 258651 157816 100835 191475 127397 64078 67176 30419 36757 Urban 117530 99119 18411 104949 89984 14965 12581 9135 3446 Udham Singh Total 591458 444578 146880 450762 373061 77701 140696 71517 69179 Nagar Rural 406129 288619 117510 292249 234671 57578 113880 53948 59932 Urban 185329 155959 29370 158513 138390 20123 26816 17569 9247 Hardwar Total 578121 497810 80311 495152 440422 54730 82969 57388 25581 Rural 359251 308299 50952 298794 266838 31956 60457 41461 18996 Urban 218870 189511 29359 196358 173584 22774 22512 15927 6585 Source: Census of India 2011

13.18. Table 13.8 shows us the distribution of main workers across different occupations. Out of the total main working population, 1,045,674 are cultivators, 247,256 are agricultural labourers, 77,040 work in household industries, and 1,500,654 are involved other types of occupations.

Table 13.8: District wise Distribution of Working Population across Occupations in Uttarakhand in 2011

Name Main Cultivator Main Agricultural Labourers Main Household Industries Main Other Workers

Person Male Female Person Male Female Person Male Female Person Male Female

UTTARAKHA Total 1045674 545561 500113 247256 196375 50881 77040 54101 22939 1500654 1274723 225931 ND Rural 1027923 532558 495365 225529 177948 47581 46685 30064 16621 697195 581953 115242

Urban 17751 13003 4748 21727 18427 3300 30355 24037 6318 803459 692770 110689

201

Uttarkashi Total 96836 46589 50247 2389 1526 863 1960 1249 711 27182 22234 4948 Rural 96301 46358 49943 2324 1479 845 1697 1031 666 20893 17147 3746 Urban 535 231 304 65 47 18 263 218 45 6289 5087 1202 Chamoli Total 69612 28071 41541 1072 623 449 3115 2090 1025 41316 34782 6534

Rural 67057 27141 39916 874 459 415 1955 1168 787 24631 20213 4418 Urban 2555 930 1625 198 164 34 1160 922 238 16685 14569 2116 Rudraprayag Total 56884 20068 36816 1519 696 823 1470 998 472 19077 15919 3158

Rural 56646 19984 36662 1409 643 766 1291 853 438 15819 13087 2732 Urban 238 84 154 110 53 57 179 145 34 3258 2832 426 Tehri Total 97523 42409 55114 3582 2007 1575 2229 1680 549 62578 52523 10055 Garhwal Rural 97398 42313 55085 3505 1942 1563 1943 1460 483 42236 35000 7236 Urban 125 96 29 77 65 12 286 220 66 20342 17523 2819 Dehradun Total 60373 41169 19204 20424 16847 3577 17960 13994 3966 389404 327685 61719

Rural 57846 39281 18565 16803 13759 3044 7236 5346 1890 124101 104378 19723 Urban 2527 1888 639 3621 3088 533 10724 8648 2076 265303 223307 41996 Garhwal Total 75253 29483 45770 4154 2596 1558 3425 2525 900 81607 67441 14166

Rural 74999 29355 45644 3903 2383 1520 2655 1869 786 53240 43288 9952 Urban 254 128 126 251 213 38 770 656 114 28367 24153 4214 Pithoragarh Total 87189 33777 53412 2204 1218 986 3299 1789 1510 52789 43601 9188

Rural 86652 33530 53122 2125 1153 972 2882 1481 1401 37052 30755 6297 Urban 537 247 290 79 65 14 417 308 109 15737 12846 2891 Bageshwar Total 54056 20161 33895 2733 1509 1224 1648 1096 552 19648 16068 3580

Rural 53960 20098 33862 2699 1492 1207 1616 1069 547 17647 14434 3213 Urban 96 63 33 34 17 17 32 27 5 2001 1634 367 Almora Total 132129 47028 85101 4025 2151 1874 2723 1878 845 62201 51164 11037

Rural 132045 46965 85080 3984 2124 1860 2562 1744 818 42553 34581 7972 Urban 84 63 21 41 27 14 161 134 27 19648 16583 3065 Champawat Total 31971 17841 14130 1980 1433 547 911 730 181 27836 23248 4588

Rural 31300 17482 13818 1763 1256 507 714 547 167 18498 14969 3529 Urban 671 359 312 217 177 40 197 183 14 9338 8279 1059 Nainital Total 101221 57569 43652 19618 13318 6300 6873 4858 2015 168712 141636 27076

Rural 99717 56486 43231 18536 12535 6001 4181 2564 1617 69041 55812 13229 Urban 1504 1083 421 1082 783 299 2692 2294 398 99671 85824 13847 Udham Total 94677 79644 15033 107603 84000 23603 16503 9780 6723 231979 199637 32342 Singh Nagar Rural 89205 74815 14390 96377 74629 21748 10435 5382 5053 96232 79845 16387 Urban 5472 4829 643 11226 9371 1855 6068 4398 1670 135747 119792 15955 Hardwar Total 87950 81752 6198 75953 68451 7502 14924 11434 3490 316325 278785 37540

Rural 84797 78750 6047 71227 64094 7133 7518 5550 1968 135252 118444 16808 Urban 3153 3002 151 4726 4357 369 7406 5884 1522 181073 160341 20732 Source: Census of India 2011

Table 13.9: Distribution of Working Population in Uttarakhand by Occupation in 2011 Population Age Group Male Female Total Rural Urban All 5137773 4948519 10086292 7036954 3049338

202

0-4 488988 435876 924864 677293 247571 5-9 560179 498622 1058801 770582 288219 10-14 603274 542069 1145343 835418 309925 15-19 588483 535627 1124110 792898 331212 20-24 484614 485454 970068 648027 322041 25-29 397363 412821 810184 529754 280430 30-34 345427 352873 698300 459156 239144 35-39 330834 334666 665500 441348 224152 40-44 285531 281178 566709 378652 188057 45-49 247982 241395 489377 325900 163477 50-54 202024 195134 397158 270074 127084 55-59 151865 166596 318461 221366 97095 60 & Above 441897 458912 900809 676014 224795 Age Not Stated 9312 7296 16608 10472 6136 Source: Statistical Diary of Uttarakhand 2014-15, Census of India 2011

13.19. The age distribution of the population in Uttarakhand can be obtained from table 13. .9. As of 2011, 42.17% of the population in Uttarakhand is under the age of 19. Only 16.03% of the population was above the age of 50 in 2011. Almost 42 per cent of the population are within the active age group of 20-50 years. Hence, there is a substantial possibility of reaping benefit from demographic dividend if we can skill the population by imparting education, training and good health. Since, the population within the age-group below 19 years is also very large at 42.17 per cent, this demographic dividend is most likely to be available at least for next 40 years.

Table 13.10: Distribution of Population in Uttarakhand by Religion in 2011 District Total Hindu Muslim Christian Sikh Buddhist Jain Others/ Population No Religion Uttarkashi 330086 324859 3554 353 167 563 74 516 Chamoli 391605 385818 4395 428 323 190 11 440 Tehri Garhwal 618931 609835 7374 656 290 32 91 653 Dehradun 1696694 1424916 202057 13416 36454 11778 5117 2956 Garhwal 687271 660507 22931 2161 619 58 212 783 Rudraprayag 242285 240170 1486 171 38 9 4 407 Pithoragarh 483439 475105 6015 1401 260 185 13 460 Almora 622506 611250 7752 1895 256 201 31 1121 Nainital 954605 809717 120742 5091 17419 570 356 710 Bageshwar 259898 257509 1440 397 46 102 7 397 Champawat 259648 249563 8693 870 336 24 28 134 Total (Hilly 6546968 6049249 386439 26839 56208 13712 5944 8577 Districts) Hardwar 1890422 1214935 648119 4878 17364 409 2501 1916 US Nagar 1648902 1104452 372267 6064 162768 505 738 2108 Total (Plains 3539324 2319387 1020386 10942 180132 1214 3239 4024 Districts) Uttarakhand 10086292 8368636 1406825 37781 236340 14926 9183 12601 Source: Statistical Diary of Uttarakhand 2014-15, Census of India 2011

13.20. The religious distribution across the districts in Uttarakhand is given in table 13.10. Hinduism is the most followed religion in Uttarakhand (82.97%), followed by Islam (13.95%)

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and Sikhism (2.34%). Majority of the Muslim population in the state are concentrated in Dehradun (202,057), Hardwar (648,119), and Udham Singh Nagar (372,267), while most of the Sikh population are concentrated in Udham Singh Nagar (162,768). 13.21. The gender ratio in Uttarakhand is given in table 13.11. The gender ratio is falling across districts in an alarming rate. For example, while the overall gender ratio (female per 1000 male) in the Udham Singh Nagar district is 920, for the 0-6 age group it becomes 899. Although the hilly districts enjoy a better overall gender ratio, even for them the gender ratio is declining in the 0-6 age group. For example, Almora has the best overall gender ratio of 1139, but the 0-6 age group gender ratio for Almora is 922. Table 13.11: Gender Ratio in the Districts in Uttarakhand in 2011 District Female to Male Ratio in Total Female to Male Ratio in the age Population group 0-6 Uttarkashi 958 916 Chamoli 1019 889 Tehri Garhwal 1078 897 Dehradun 902 889 Garhwal 1103 904 Rudraprayag 1114 905 Pithoragarh 1020 816 Almora 1139 922 Nainital 934 902 Bageshwar 1090 904 Champawat 980 873 Total (Hilly Districts) 1001 893 Hardwar 880 877 Udham Singh Nagar 920 899 Total (Plains Districts) 897 887 Uttarakhand 963 890 Source: Statistical Diary of Uttarakhand 2014-15, Census of India 2011

Table 13.12: Distribution of Villages and Towns in Uttarakhand District Tehsils Development Populated Towns Nyaya Panchayat Village Panchayat (2015) Blocks (2015) Villages (2011) (2011) (2015) (2015) Uttarkashi 6 6 694 3 36 500 Chamoli 9 9 1170 6 39 615 Tehri Garhwal 10 9 1774 7 75 1038 Garhwal 10 15 3142 9 118 1212 Rudraprayag 4 3 653 2 27 339 Pithoragarh 11 8 1572 3 64 685 Almora 11 11 2184 5 95 1164 Bageshwar 6 3 874 1 35 416 Champawat 5 4 662 4 24 313 Dehradun 7 6 731 22 40 460 Nainital 8 8 1097 11 44 511 Total (Hilly Districts) 87 82 14553 73 597 7253 Udham Singh Nagar 8 7 674 19 27 391 Hardwar 5 6 518 24 46 312 Total (Plains Districts) 13 13 1192 43 73 703

Uttarakhand 100 95 15745 116 670 7956 Source: Statistical Diary of Uttarakhand 2014-15

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13.22. The distribution of villages and town across the districts in Uttarakhand is given in table 13.12. Garhwal has the highest number of populated villages (3142), and Hardwar has the least number of populated villages (518). Hardwar has the highest number of towns (24), and Bageshwar has the lowest number of towns (1). 13.23 Table 13.13 provides the number of villages and towns in Uttarakhand divided according to their population. Most of the villages in Uttarakhand have 200 or less people living in them (7846), and there are 4670 villages with 201-500 people. Most of the towns in Uttarakhand have between 5001 to 10000 people (37 towns) or 10001-20000 people (33 towns). Migration from the hills to the plains has contributed majorly to the high number of villages with population less than 200. The problem is especially visible in the hilly districts of the state where many villages are left with just one or two occupants.

Table 13.13: Number of Towns and Villages in Uttarakhand by Population Size Population Size Number of Populated Villages (with Forest Population Size Number of Settlements) Towns 1-200 7846 1-200 1 201-500 4670 201-500 - 501-1000 1819 501-1000 2 1001-2000 823 1001-2000 4 2001-5000 470 2001-5000 8 Above 5000 117 5001-10000 37 10001-20000 33 20001-50000 19 50000-100000 6 Above 100000 6 Total 15745 Total 116 Source: Statistical Diary of Uttarakhand 2014-15

13.24 The population of forest settlements in Uttarakhand is given in table 13.14. Nainital has the highest number of forest settlements (45), as well as the highest number of people living in forest settlements (87419). Rudraprayag has the lowest number of forest settlements (1). Most of the population living in forest settlements are from the hill districts (77.13%).

Table 13.14: Distribution of Populated Villages and Village Settlements in Uttarakhand District Total Number of Villages Populated Small Population of Forest Settlements (2011) (2011) Forest Populated Settlements Villages (2011) Male Female Total (2011) Uttarkashi 694 23 671 1451 1219 2670 Chamoli 1170 12 1158 134 75 209 Tehri Garhwal 1774 16 1758 858 769 1627 Dehradun 731 20 711 20134 19009 39143 Garhwal 3142 26 3116 6235 5333 11568 Rudraprayag 653 1 652 1 0 1 Pithoragarh 1572 12 1560 169 141 310 Almora 2184 28 2156 537 237 814

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Nainital 1097 45 1052 45489 41930 87419 Bageshwar 874 20 854 102 53 155 Champawat 662 18 644 445 213 658 Total (Hilly 14553 221 14332 75555 69019 144574 Districts) Hardwar 518 5 513 8824 8091 16915 Udham Singh 674 18 656 13212 12731 25943 Nagar Total (Plains 1192 23 1169 22036 20822 42858 Districts) Uttarakhand 15745 244 15501 97591 89841 187432 Source: Statistical Diary of Uttarakhand 2014-15

13.25 The distribution of population in Uttarakhand by main language spoken is given in table 13.15. Hindi is the dominant language in Uttarakhand with 88.26% of the total population speaking it as the main language. Urdu is spoken by about 5.88% of total population, whereas Punjabi and Bengali are spoken by 2.92% and 1.46% of total population respectively.

Table 13.15: Distribution of Population by Main Language Spoken in Uttarakhand Main Language Spoken Total Population Percentage Distribution Hindi 7466413 88.26 Urdu 497081 5.88 Punjabi 247084 2.92 Bengali 123190 1.46 Nepali 91047 1.08 Others 34412 0.40 Total 8459227 100.00 Source: Statistical Diary of Uttarakhand 2014-15, Census of India 2001

13.26 Table 13.16 shows the towns with population of more than 100,000 (in 2011) in Uttarakhand. Dehradun is the most populous city in Uttarakhand (574,840), followed by Hardwar (231,338), as per the 2011 Census of India.

Table 13.16: Towns in Uttarakhand with more than 100,000 people in 2011 Description & Districts Town Name Population Towns with more than 10 lakhs - - population Towns with population between 100,000-999,999 1. Dehradun Dehradun 574840 2. Hardwar (i) Hardwar 231338 (ii) Roorkee 118200 3. Nainital Haldwani – Kathgodam 201461 4. Udham Singh Nagar (i) Kashipur 121623 (ii) Rudrapur 154554 Source: Statistical Diary of Uttarakhand 2014-15

13.27 The information about amenities available to households in different districts in Uttarakhand are given in table 13.17. According to Census 2011, 87.04% of the households in Uttarakhand have access to electricity. Latrine facility is available to 65.77% of the households

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in Uttarakhand. Regarding protected drinking water availability, 58.25% of households have the source inside the living compound, and 26.59% of the households have the source nearby their living compound.

Table 13.17: Distributions of Households with Available Amenities in Uttarakhand in 2011 Districts Total Electricity Availability Latrine Availability Drinking Water Availability Available Not Available Not Inside Living Near Living Far from Available Available Compound Compound Living Compound Uttarkashi 66558 52621 13937 29106 37452 28531 19107 18920 Chamoli 85765 71524 14241 45572 40193 31825 32596 21344 Tehri Garhwal 133494 117239 16255 74477 59017 43048 50396 40050 Dehradun 322700 310726 11974 278971 43729 261525 39008 22167 Garhwal 161688 143963 17725 89437 72251 58484 72086 31118 Rudraprayag 53492 49182 4310 28272 25220 16137 21796 15559 Pithoragarh 111542 95421 16121 61543 49999 46575 40377 24590 Almora 139257 109876 29381 76958 62299 36378 65744 37135 Nainital 187108 169001 18107 148745 38363 117598 42051 27459 Bageshwar 57712 47083 10629 31604 26108 14315 27478 15919 Champawat 52356 37725 14631 24284 28072 19181 19586 13589 Total (Hilly 1371672 1204361 167311 888969 482703 673597 430225 267850 Districts) Hardwar 325344 279012 46332 216744 108600 246771 54977 23596 Udham Singh 300052 254802 45250 207848 92204 242986 45902 11164 Nagar Total (Plains 625396 533814 91582 424592 200804 489757 100879 34760 Districts) Uttarakhand 1997068 1738175 258893 1313561 683507 1163354 531104 302610 Source: Statistical Diary of Uttarakhand 2014-15

13.28 Table 13.18 provides the housing data for Uttarakhand. The total number of houses available in Uttarakhand (according to Census 2011) is 3,383,410 (2,512,569 in rural areas, and 870,841 in urban areas). Out of these, 9.94% are vacant houses, and the rest are occupied. The number of vacant houses in rural area in the hilly regions is significantly higher than the plains region. This is not surprising considering the out-migration that has happened in the state in the recent past and still continues to take place. Compared to only 29,875 vacant houses in the rural areas in the plains (5.2% of total rural houses in the plains region), the rural areas in the hills region has 227,950 vacant houses (11.74% of total rural houses in the hills region). The problem of migration from the hills to the plains has become so severe that many villages in the hills districts have just one or two people left. These are the so called ghost villages in Uttarakhand. As most of the population have already migrated from these villages, these villages are just waiting to become forgotten. This follows the pattern of migration elsewhere in the world, where once economically vibrant regions go into decline if proper diversification and innovation in economic activities do not take place, leaving abandoned settlements behind.

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Table 13.18: Number of Houses in Uttarakhand in 2011 Districts Total Number of Houses Number of Vacant Houses Number of Occupied Houses Rural Urban Rural Urban Rural Urban Uttarkashi 112148 9061 11710 1134 100438 7927 Chamoli 163434 22906 18535 2230 144899 20676 Tehri Garhwal 227059 27177 33689 3761 193370 23416 Dehradun 228245 269393 20625 25864 207620 243529 Garhwal 279682 36780 35654 3110 244028 33670 Rudraprayag 112705 4454 10971 638 101734 3816 Pithoragarh 183687 26256 22936 2968 160751 23288 Almora 260056 21082 36401 2167 223655 18915 Nainital 193086 105577 15075 8864 178011 96713 Bageshwar 96031 3880 11073 483 84958 3397 Champawat 85202 12839 11281 1446 73921 11393 Total (Hilly 1941335 539405 227950 52665 1713385 486740 Districts) Hardwar 301828 186183 18437 15267 283391 170916 Udham Singh 269406 145253 11438 10652 257968 134601 Nagar Total (Plains 571234 331436 29875 25919 541359 305517 Districts) Uttarakhand 2512569 870841 257825 78584 2254744 792257 Source: Statistical Diary of Uttarakhand 2014-15

13.29 The distribution of differently-abled people in Uttarakhand is given in table 13.19. According to Census 2011, 1.84% of the total population in Uttarakhand are differently- abled. For the male population, 2% are differently-abled in the entire state, whereas that share is 1.67% for the female population. Chamoli district has the highest share of differently-abled people (2.29%), while Champawat has the lowest share (1.36%).

Table 13.19: Disabled Population in Uttarakhand by type of Disability, and Sex in 2011 Area Name Total/Rural/Urban Total number of disabled persons Total Male Female UTTARAKHAND Total 185272 102787 82485 Rural 134097 73244 60853 Urban 51175 29543 21632 District-Uttarkashi Total 6851 3770 3081 Rural 6360 3481 2879 Urban 491 289 202 District-Chamoli Total 8955 4677 4278 Rural 8235 4251 3984 Urban 720 426 294 District-Rudraprayag Total 5227 2595 2632 Rural 5082 2514 2568 Urban 145 81 64 District-Tehri Garhwal Total 13569 6961 6608 Rural 12714 6425 6289 Urban 855 536 319

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District-Dehradun Total 30999 17755 13244 Rural 13742 7821 5921 Urban 17257 9934 7323 District-Garhwal Total 12889 6892 5997 Rural 10974 5784 5190 Urban 1915 1108 807 District-Pithoragarh Total 9774 5310 4464 Rural 8817 4767 4050 Urban 957 543 414 District-Bageshwar Total 4596 2500 2096 Rural 4506 2446 2060 Urban 90 54 36 District-Almora Total 13424 6922 6502 Rural 12479 6413 6066 Urban 945 509 436 District-Champawat Total 3541 2047 1494 Rural 3052 1773 1279 Urban 489 274 215 District-Nainital Total 16093 9010 7083 Rural 10692 5942 4750 Urban 5401 3068 2333 District-Udham Singh Nagar Total 27865 15885 11980 Rural 18516 10538 7978 Urban 9349 5347 4002 District-Hardwar Total 31489 18463 13026 Rural 18928 11089 7839 Urban 12561 7374 5187 Source: Statistical Diary of Uttarakhand 2014-15

13.20 Table 13.20 gives information about the educational qualification of the population in Uttarakhand. As per the 2011 Census, only 9.03% of the state’s population hold a Bachelor’s Degree or above. Out of the total population in the state, 31.78% people are illiterate.

Table 13.20: Distribution of Educational Qualification in Uttarakhand in 2011 Total Male Female All 10086292 5137773 4948519 Literate 6880953 3863708 3017245 Illiterate 3205339 1274065 1931274 Literate (without any formal 145906 72896 73010 education) Lower than Primary 1034583 554430 480153 Primary 1550574 803056 747518 Junior 1406871 806770 600101 Matriculation 1019490 627997 391513 Intermediate 755008 444663 310345 Non-technical Diploma (not 4816 3102 1714 equivalent to Degree) Technical Diploma (not 36172 30072 6100 equivalent to Degree) Graduate or above 910288 512068 398220 Not Declared 17245 8674 8571 Source: Statistical Diary of Uttarakhand 2014-15

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13.21 In table 13.21, the age group-wise distribution of population in Uttarakhand in 2011 is provided. Out of a total population of 10,086,292, total unmarried population is 4,514,826 (44.76%). In the female population 47.08% are married, whereas in the male population 42.53% are married.

Table 13.21: Age Group wise Distribution of Marital Status in Uttarakhand in 2011

Overall Married Widowed Separated Divorced

Age- Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Group 0-9 19,83,665 10,49,167 9,34,498 0 0 0 0 0 0 0 0 0 0 0 0

Oct-14 11,45,343 6,03,274 5,42,069 12,632 4,406 8,226 580 175 405 593 296 297 61 24 37

15-19 11,24,110 5,88,483 5,35,627 67,442 12,767 54,675 1,073 300 773 665 293 372 129 51 78

20-24 9,70,068 4,84,614 4,85,454 3,94,763 1,06,006 2,88,757 2,397 596 1,801 1,336 419 917 495 152 343

25-29 8,10,184 3,97,363 4,12,821 6,17,677 2,51,996 3,65,681 5,460 1,313 4,147 1,892 647 1,245 853 291 562

30-34 6,98,300 3,45,427 3,52,873 6,35,722 3,03,352 3,32,370 9,902 2,019 7,883 2,247 823 1,424 985 339 646

35-39 6,65,500 3,30,834 3,34,666 6,26,130 3,12,262 3,13,868 17,337 3,126 14,211 2,444 934 1,510 1,050 417 633

40-44 5,66,709 2,85,531 2,81,178 5,27,189 2,71,633 2,55,556 25,697 4,457 21,240 2,150 866 1,284 783 306 477

45-49 4,89,377 2,47,982 2,41,395 4,45,236 2,35,403 2,09,833 34,229 5,875 28,354 1,796 714 1,082 586 241 345

50-54 3,97,158 2,02,024 1,95,134 3,46,538 1,89,708 1,56,830 43,093 7,356 35,737 1,426 499 927 427 176 251

55-59 3,18,461 1,51,865 1,66,596 2,68,662 1,40,130 1,28,532 44,612 8,280 36,332 894 358 536 278 110 168

60-64 3,29,056 1,63,220 1,65,836 2,43,764 1,43,200 1,00,564 76,286 14,359 61,927 1,053 395 658 257 106 151

65-69 2,18,759 1,08,412 1,10,347 1,46,152 89,511 56,641 63,666 13,412 50,254 534 216 318 125 56 69

70-74 1,63,443 80,970 82,473 92,530 63,399 29,131 66,519 14,682 51,837 373 145 228 114 48 66

75-79 84,646 40,837 43,809 43,529 29,760 13,769 39,509 9,989 29,520 176 78 98 51 16 35

80+ 1,04,905 48,458 56,447 40,458 28,534 11,924 58,433 16,179 42,254 191 74 117 79 25 54

Age 16,608 9,312 7,296 6,402 3,144 3,258 702 162 540 32 13 19 10 3 7 not stated All 1,00,86,292 51,37,773 49,48,519 45,14,826 21,85,211 23,29,615 4,89,495 1,02,280 3,87,215 17,802 6,770 11,032 6,283 2,361 3,922 ages Less 38,00,110 20,02,090 17,98,020 32,785 9,756 23,029 1,283 372 911 945 463 482 114 52 62 than 18 Less 44,91,954 23,62,796 21,29,158 1,40,504 29,026 1,11,478 2,107 586 1,521 1,500 667 833 260 95 165 than 21 Source: Statistical Diary of Uttarakhand 2014-15, Census of India 2011

References Census of India 2011, Office of the Registrar General & Census Commissioner, Government of India Mamgain R.P., & Reddy, D.N. 2016. Outmigration from the Hill Region of Uttarakhand: Magnitude, Challenges and Policy Options. GIDS Working Paper Statistical Diary of Uttarakhand 2014-15, Department of Economics and Statistics, Government of Uttarakhand, Dehradun

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Chapter 14 Development and Environmental Sustainability

1. Environment and Sustainability in Uttarakhand

14.1. Uttarakhand has four plains and nine mountains’ districts. The ecology of mountainous region is very rich in natural resources and biodiversity but extremely fragile. The entire state is disaster prone, but subsequent state governments have adopted growth led model which totally disregarded the disaster-prone characteristic of the state and thereby environmental sustainability. The concerns regarding sustainability are discussed in this section under three sub- headings: industrial development, transport infrastructure and forests. The discussion on the impact of natural disasters are presented in section two and the third section presents a brief overview of obstacles to growth due to the broader environment vs development debate. This chapter concludes with a section elaborating the threats and opportunities for planners and policy makers towards sustainable development in a mountain ecosystem.

Industrial Development

14.2. After obtaining statehood, Uttarakhand relied on rapid industrialization to boost the stagnant economy. This resulted in the double digit annual growth of the hill state for most of the last decade. A total of 16012 new industrial units were set up in Uttarakhand with an investment of Rs. 23905 crores by March 2010. The corresponding figures for Himachal Pradesh were 7606 units and Rs. 10104 crores. New employment was created for 161610 persons in Uttarakhand versus 95618 persons in the neighbouring hilly state HP. The conceptualisation of SIDCUL-Sate Infrastructure and Industrial Development Corporation of Uttarakhand Ltd. along with its two other siblings namely SIDA-State Industries Development Authority and SIDCUL Smart City was the prime reasons behind industrial growth in the State. Development of public infrastructure such as roads, schools, hospitals and primary health centres and other public utilities were prioritised. These developmental objectives were expected to be achieved at the cost of the environment therefore the issue of sustainability in the development argument becomes important for framing and adopting policies towards future economic growth.

14.3. According to Census 2011, more than 51 percent of the state’s workforce is engaged in agriculture. However, the per capita GSDP share of the households that are mainly engaged in agriculture is much lower than working in the secondary and tertiary sector. Rapid growth observed in the past has excluded agriculture sector and mountainous region. Most of the Industrial units set up in the state after 2000, are located in plain region. Such development, questions the establishment of new state which was carved out of Uttar Pradesh, to give adequate opportunity for development to hilly region. Therefore, high degree of sectoral and regional imbalance is present in the hill state, which may have distorted the principles of equity and sustainability. For example, the contribution of the secondary sector (manufacturing and

211 construction sector) to GSDP has been almost at the same level as that of all India average. However, the Special Economic Zones and the Integrated Industrial Estates as well as the Private Industrial Estates are all located in the plains.

14.4 At the time of formation, Uttarakhand was primarily an agrarian economy. However, agriculture alone could not provide sufficient job opportunities to everybody. Keeping this in mind, the state govt. laid the foundation of rapid industrialization to provide job opportunities to Uttarakhand natives. This followed establishment of State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd, as a Limited Company in the year 2002. With an authorized share capital of Rs. 28.50 Crores paid up capital through Government of Uttarakhand, SIIDCUL was entrusted to promote Industrial development in the state, provide financial assistance in the shape of debt, equity, venture capital, develop infrastructure and assist private initiative in industry. The facilities in Integrated Industrial Estates include dedicated 220 KV Substation with a string of feeder substations, Common Effluent Treatment Plants, 60 meter wide roads and all modes of connectivity, logistic centres, zonal distribution of Industries, residential and commercial areas.

14.5. The Corporation has been facilitating promotion of industries, providing adequate and timely finance, developing the required infrastructure, ensuring development, technology upgradation and setting up of high technology pollution free industries.

Table 14.1 Integrated Industrial Estates (IIE) established or plan to develop by SIDCUL Sl. No. Name of IIE Total Area Proposed 1. IT Park Dehradun 2. Pharma City, Selaqui Industrial Area, Dehradun 50 Acres 3. IIE Haridwar 2034 Acres 4. IIE Pantnagar 3339 Acres 5. SIDCUL Phase II, IIE Sitarganj 1760 Acres 6. Sigaddi Growth Centre, Kotdwar 100 Acres 7. IIE Kashipur (Escort Farm) 311 Acres Source: https://www.siidcul.com/

14.6. Besides IIE, several private industrial estates were also established in the state like Dev Bhoomi Industrial Estate, Roorkee, M/S Gangapur Kashipur Industrial Area, Kashipur, M/S Balaji Industrial Estate, Udham Singh Nagar and M/S Salempur Rajputtan Industrial Estate, Roorkee etc. These industrial regions are the lifeline of Uttarakhand, contributing a significant share in the GSDP and providing additional employment opportunities to local natives.

14.7. In Bhimtal, SIIDCUL has initiated a joint venture with the Dutch government to produce and process the planting material of flowers like lilium, gladioli, zantedesia, chrysanthemum and tulips in India to substitute the import of the various flower bulbs with a vision to cater the

212 demand of the Indian cut-flower growers as well as exports. Major industries in SIIDCUL includes Automobiles, Electrical, Electronics and Allied, Cosmetics and Allied, Plastic and Allied, Apparel and Allied, Agro Food and Allied, Pharma Products, and Furniture among others.

14.8. The Vision of SIIDCUL can be summarized as follows:

1. To create high quality world class infrastructure facilities in the State and enhance, in particular, connectivity to the National Capital Region (NCR) and other leading markets.

2. To provide and facilitate expeditious land availability for setting industrial ventures and infrastructure projects.

3. To promote and encourage private sector participation in the development and management of infrastructure projects such as Industrial Estates/Areas, Growth Centers, IIDCs, Special Economic and Commodity Zones and Parks, Theme Parks, Tourism infrastructure, development of new tourist destinations, Airports/ Halipads/ Airstrips, Roads, generation, transmission and distribution of power, and projects in the area of Horticulture, Floriculture, Bio-technology etc.

4. To provide assured, good quality, uninterrupted and affordable power for industries.

5. To simplify and rationalize labour laws and procedures in tune with the current day requirements, while ensuring that the workers get their due share in the economic prosperity of the state.

6. To promote, in particular, Small scale, Cottage and Khadi and Village Industries and Handicrafts, Silk and Handloom sectors, assist them in modernization and technological upgradation and provide the necessary common facilities and backward and forward linkages, including product design and marketing support so as to make them globally competitive and remunerative.

7. To address problems of sickness and incipient sickness in Industry, particularly SSIsand facilitate required restructuring and rehabilitation, etc. in coordination with the Banks and financial institutions.

8. To promote planned and scientific exploitation of mineral resources of the State and maximize value addition within the State.

9. To develop Uttarakhand as a premier education and research centre by leveraging the presence of world-class Research and Technical Institutes existing in Uttarakhand.

The state government had announced the “Special Integrated Industrial Promotion Policy - 2008” for Hilly and Remote Areas of Uttarakhand to provide incentives for setting up of industries. This Scheme came into force in April, 2008 and shall remain in operation till March, 2018. The salient features of the fiscal incentives and concessions provided under the Scheme are-

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a) Land development promotional scheme  Allotment of land for setting up of industrial units on priority basis with availability of general facilities like electricity, road, water supply, connecting roads etc.  Full concession on stamp duty for purchase / lease of land from industrial areas developed by State Govt. / private sector  Process of land use change simplified b) Special State Capital Production Incentive: Industries making investment in certain areas of the state are provided capital incentives depending on the areas- at the rate of 25 percent of the total investment, subject to a maximum of Rs. 35 lakh in certain areas and at the rate of 20 percent of the total investment, subject to a maximum of Rs. 25 lakh in other areas

c) Interest subsidy: Industries (in specified geographies) seeking loan through Banks/Financial Institutions are given incentives of loans at concessional rates- of simple interest up to at the rate of 6 percent per annum on term loan, with a ceiling of Rs. 5 lakh per unit per annum to units in some areas and at the rate of 5 percent subject to ceiling of Rs 3 lakh per unit per annum in other designated areas.

d) Concession in VAT: The state government would pay up to 75 percent of the total payable amount of VAT on fruit based beverages units located in certain designated areas and up to 90 percent in other designated areas.

e) Power Concession to new Industrial Units: All new industrial units (in designated areas) engaged in manufacturing and production of goods including the industrial enterprises engaged in the activities in service sector are entitled for 100 percent rebate or exemption on electric bills for a period of ten years. This is though not applicable to hotels, resorts, furnaces etc. The industries based on fruit preservation, herbal and medicinal plants and domestic produce are given due preference and priorities in this scheme.

f) Grant towards transport subsidy in hilly areas: In order to promote industrial units based on raw material produced in hilly areas, the transport subsidy at the rate of 5 percent of annual turnover (maximum of Rs 5 lakh) is provided by the State Government to compensate the higher cost of transportation for units in designated areas and 3 percent of annual turnover (maximum of Rs 3 lakh) for units in other designated areas.

g) The state government also provides grant-in-aid to set up the industrial unit at the rate of 75 percent of expenditure with a ceiling of Rs. 2.00 lakh per project towards payment of ISO certification, ISI mark, quality marking, BIS & FPO license, trade mark & copyright registration by the national and internationally approved agencies / institutions. In addition to this Scheme, the state government is also implementing the National Mission on Food Processing of MoFPI and schemes of the National Horticulture Board. Uttarakhand has been

214 included in the difficult area category by MoFPI and hence units being set up in Uttarakhand are also eligible for higher incentives under the scheme of MoFPI.

14.9. Micro, Small and Medium Enterprises plays an important role in the economic and social development of any state or country. Now, the state govt. has decided to adopt “Micro, Small and Medium Enterprises Policy”. This policy is envisaged to provide more financial incentives and facilities to existing schemes running in the state. This policy will be effective till March 31, 2020. The benefits of MSME policy will be available from the date of announcement of MSME policy and beginning of production in industrial units for a maximum period of 10 years or till March 31, 2025, whichever is earlier.

14.10 Govt. of Uttarakhand has released its Start-up Policy document1 on May 30, 2016. The Start-Up policy of Uttarakhand came into force w.e.f. 1st July 2016 and will remain in operation till 30th June, 2021. The document lists out the various concession and monetary incentives that a Start-up will receive in the state as follows:

Table 14.2 List of Sectors under Start-Up Policy Benefits i. Agro-based industries viii. Social enterprises xvi. Traditional Arts ii. Healthcare ix. Manufacturing xvii. Hi-Tech farming in agriculture iii. Biotechnology x. Rural area activities xviii. Dairy production iv. Education xi. Nanotechnology xix. Traditional crafts v. E-Commerce xii. Food Processing xx. Innovation in designs and vi. Travel and Tourism xiii. Textiles and Garments products in traditional textiles and apparels vi. Water, waste xiv. Fashion Designing xxi. Product modifications/ management and power innovation based businesses in vii. Transportation xv. Ayurveda traditional sectors like Coir, Bamboo, etc

The Policy aims to achieve the following objectives by year 2021:

(i) Attract investments into the Incubation and Startup Ecosystem in Uttarakhand (ii) To bring investment in Uttarakhand from well - known industries like Infosys, Wipro, Tech Mahindra,Tata etc. to provide firm platform for new entrepreneurs. (iii) Establish at least 2-3 Technology Business Incubators / Accelerators in different sectors in the State in first year of the policy period with a final object of 10 in whole policy period.

1 http://www.ukpublicconsultation.in/consultation/view/id/1 215

(iv) Encourage/Facilitate/Incubate technology product of start-ups. iv) Develop 200000 sq. ft. of Incubation Space in state. (v) Facilitate Angel/Venture Capital funding of a minimum of Rs 500 Cr. (vi) To integrate the Start-Up entrepreneurs with IAF and Start up India scheme of Central Government. (vii) To promote Women and SC/ST as entrepreneurs. (viii) Identifying budding start-up entrepreneurs at school and college level by means of conducting Boot Camps. (ix) To set up a state level entrepreneurship development council. (x) To establish Knowledge Training Skill Development and entrepreneurship Park in Kashipur (measuring 50 acre area). In first phase facility of TBI will be established in this industrial estate. (xi) To facilitate the growth of Start-ups from Start-up to Coot Camp to Scale-up. (xii) Facilitation of Common test lab, conference rooms, R&D labs, hostels, residences etc for start-ups.

14.11. The incentives available in the State MSME Policy would also be directly applicable along with following additional benefits to the start-ups, Host Institute of Incubators and Accelerators. A) Reimbursement of VAT/ CST: Annual Reimbursement of VAT/CST paid by incubators in Uttarakhand, upto a maximum of Rs 60 Lakhs turnover by incubated startup companies within a period of first four years of being incubated. B) Financial Assistance as Matching Grants: The State Government would match the funding raised by the Incubator from Government of India on a 1:1 basis as matching grants. Furthermore, the state would provide core infrastructure like plug and play incubation facilities in different sectors and different locations within the state through itself or in PPP mode for start-up entrepreneurs on lease basis. In addition to above incentives, the state Govt. has announced several incentives that aim to provide every possible help at every stage.

14.12. Agriculture in hill region is going through the most challenging times. First, mountain cultivators own very small plots of farm land. A total of 76 percent cultivators are marginal and 17 percent cultivators are small. The average net irrigated area in the mountainous districts is just 10 percent of the net sown area. Hill farming relies on monsoon for survival. Variation in rainfall can trigger havoc for hill farming. It is a tragedy that all major rivers i.e. Ganga, Yamuna among others originate from hill regions but their water is not utilized for irrigation in the adjacent farm land due to lack of adequate infrastructure. On the other hand, plain regions have adequate access to irrigation (83.5 percent). Finally, the yields of major cereal crops in hill region are low compared to their counterparts in the plains. Obviously, agriculture in hill is trapped in vicious circle of low productivity. Field studies suggest that returns from farming in hills are very low and cultivators have to look for off-farm opportunities to fulfill basic economic needs. On the other hand, cultivators in Himachal Pradesh are relatively better-off due to adoption of horticulture which yields higher returns than cereal crops sown in Uttarakhand. In recent years,

216 cultivators in the state are switching over to horticulture for better remunerative price and credit for this development goes to horticulture department of the state govt.

14.13. A recent study reported that a total of 1,065 villages in Uttarakhand have become ‘ghost villages’ because hardly anyone lives there. Census 2011 revealed that Almora and Pauri saw net decline in district population in the last decade. Excessive outmigration from the remote mountain regions, not entirely out of the state but moving within the state and settling around the newly emerging urban areas, like Dehradun, Kotdwara, Haldwani, Roorkee, Haridwar- Rishiskesh . Confederation of Indian Industry (CII)2 has summarized following recommendations for Uttarakhand:

1. Create World Class Infrastructure in PPP. 2. Increased expenditure on Health and Education with focus on PPP. 3. Basic amenities to reach the remotest areas. 4. Improve quality of life in the hills. 5. Inclusive growth to ensure social stability. 6. Address local problems through low cost innovation technologies 7. To be role model green economy and world leader in Green Energy.

14.14. The document lists out the enablers and drivers for development i.e. high literacy rate, potential for hydropower generation, potential for adventure, rural and religious tourism, rich cultural heritage and biodiversity, presence of IIT Roorkee, GBPUAT, FRI etc. and excellent network of schools in Dehradun and Nainital and finally enabling policies for industrial development and attracting investment. Constraints includes high unemployment and low per capita income, absence of avenues for employment and livelihood options, migrations of men from hills to other states for employment, poor infrastructure, scattered population, Inter-district variations in terms of access to health and other services, economic development and income. In brief, the newly created Himalayan state has been on the move ever since its creation and has been marching ahead in terms of rapid industrialization, resulting in high growth rates higher than national average,. However, the aspirations which led to the demand for the creation of new state have not been completely met. After 16 years of establishment, the state has to speed up efforts to provide critical infrastructure so that outward migration may be checked. Policies in this regard that needs to be revisited are Hill Policy 2011, MSME Policy 2015 and Start-up Policy.

Roads and Railways Infrastructure

14.15. In 2015-16 the length of roads in the state was approximately forty two thousand kilometres. The total length of surfaced roads in the state was reported to be 40077 km in 2013

2 Confederation of Indian Industry (2009) : “Uttarakhand Vision 2022” available at http://www.indiaat75.in/document/Final_Uttarakhand_Vision_Document.pdf 217

(Statistical Yearbook of India 2016). The length of PWD roads is 32065 km. The length of roads built by local bodies is 3421.22 km. The Border Road Task Force (BRTF) maintains a road network of 1281.32 kms in the state. During 2015-16, a total of 4 projects were awarded by NHAI (National Highways Authority of India), under Engineering, Procurement and Construction (EPC) and Hybrid Annuity. In which 2 projects of four-laning of roads were awarded under EPC from Haridwar to Nagina and from Nagina to kashipur having cost of about Rs 1441.1 crore and Rs 1777.85 crore respectively and the other 2 projects of four-laning roads were awarded under Hybrid Annuity for the Rampur-Kathgodam, and Chultmalpur-Ganeshpur and Roorkee-Chutmalpur-Gagalheri having cost Rs 736.93 crore and Rs 1476.88 crore respectively.

14.16. In 2016, the Central government announced to further develop around 900 km of national highways connecting the four abodes of Gangotri, Yamunotri, Kedarnath and Badrinath in the Himalayas. The project’s main objective is to make travel to the Char Dham safer and more convenient. The approximate cost of these highways is about Rs 12000 crore. Apart from this the road transport and highways ministry plans to improve the stretches to two-lane carriageway with paved shoulders, protect landslide hazard zones, construct bypasses, long bridges, tunnels and elevated corridors to ensure safety for the users. However, such construction activities may have a huge impact on the environment. In a report shared with the Uttarakhand government, geologists from the Indian Institute of Technology (IIT) and Civil Engineering Department (Hill Area Development) Bureau of the Bureau of Indian Standards (BIS) have blamed "unplanned" road construction for some of the disasters in the state.

14.17. Uttarakhand has only 345.23 km of rail routes. The state government is planning to increase rail network by focusing on increasing the share of railways in cargo and passenger transport. Initiatives have been undertaken to start monorails at Dehradun, Haridwar and Rishikesh, on the inter-city linkage routes. The pilot Rishikesh-Karanprayag rail project was set up for the proposed 125 km long railway line, which will have India’s longest tunnel of 15.1 kms. The approximate cost of the project will be Rs 16,200 crore. In early 2017, the Government laid the foundation stone for this ambitious project to connect the “Char Dham” route with railway estimated to be Rs 43292 crore. The route length of 327 km is likely to have 21 new stations, 61 tunnels, totalling of 279-km tunnel length and 59 bridges.

Impact of Development on Forests

14.18. It was estimated that around 30000 hectares of forest land have been diverted to non- forest use in Uttarakhand since its formation. The maximum diversion has been for road construction (9500 hectares) and power generation and transmission (8600 hectares). Most of the diversion for roads and hydropower had been in the districts of Uttarkashi, Rudraprayag, Chamoli and Pithoragarh districts, the ones most affected by the recent 2013 disaster. It may be noted that development model pursued in the state has led to more deforestation. According to State of Forest Report 2015, Uttarakhand has total geographical area of 53483 km2 out of which

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34651 km2 was total recorded forest area (RFA) out of which 4754 km2 have been termed as very dense forest (VDF), 13602 km2 as medium dense forest (MDF) and 5884 km2 as open forest (OF). Therefore, total forest area within RFA was 16692 km2 and approximately 48.17 percent of forest cover was within RFA. The proportion of forest outside RFA was 7548 km2, making a total forest cover of 24240 km2. In the total geographical area, proportion of forest cover was 45.32 percent in 2015. In 2001 assessment, RFA was 34662 km2, with total forest and tree cover reported to be 23938 km2, 45.6 percent of total geographical area. Therefore, it may be noted that there may not have been substantial loss in forest cover in the state but dense forest cover has partially decreased from 35.6 percent in 2001 to 34.32 percent in 2015. It is evident from the table below that since formation of the state the loss in dense cover is prominent in two districts namely Haridwar and Udham Singh Nagar.

Table 14.3.: Comparison of Dense Forest in 2001 and 2015 Dense Forest Change of Dense Cover Districts 2001 2015 (in sqkm) (in %) Almora 1143 1153 10 0.87 Bageshwar 1079 1034 -45 -4.17 Chamoli 2115 2002 -113 -5.34 Champawat 973 918 -55 -5.65 Dehradun 1124 1267 143 12.72 Garhwal 2492 2473 -19 -0.76 Haridwar 418 328 -90 -21.53 Nainital 2645 2541 -104 -3.93 Pithoragarh 1670 1522 -148 -8.86 Rudraprayag 880 832 -48 -5.45 Tehri Garhwal 1437 1535 98 6.82 Udham Singh Nagar 623 403 -220 -35.31 Uttarkashi 2424 2348 -76 -3.14 Total 19023 18356 -667 -3.51

14.19. Deforestation has been highlighted as the major reason for the destruction unleashed in 2013 disaster. Field research and documentation by Shri Chandi Prasad Bhatt, a progenitor of the Chipko movement, and Dr. Navin Juyal of the Physical Research Laboratory (PRL) has established a good correlation between deforestation, intense rainfall events and devastating landslides (Bhatt, 1992). Therefore, reforestation can attenuate the repercussions of landslides. Second, explosives are used for construction of new roads. This triggers vibrations in the hills ecology and loosens the grip of soil. Whenever, there is heavy rainfall, landslide is obvious. Therefore, keeping in mind the fragile ecology of the hill state, use of explosives must be stopped or minimized. In a

219 report3 published in Down to Earth, the author argues that most natural disasters have occurred in districts with maximum deforestation.

14.20. The report further quotes data from the Ministry of Environment and Forests (MoEF) that 44868 hectares of forestland have been diverted to non-forest use in Uttarakhand since 1980. Of this, a maximum of 9500 hectares, 5500 hectares and 3100 hectares were diverted for construction of roads, hydel projects and transmission lines respectively. Most of the forest diversion (68 percent) in the state took place after the formation of the state in 2000. The maximum number of development projects that required forest diversion were reported to be approved in Chamoli district, one of the districts worst affected by recurring events of flash floods. The maximum forest area that has been cleared for hydel projects, roads and transmission lines is in Chamoli, Uttarkashi, Rudraprayag and Pithoragarh. It is also important to note that rejuvenation of the forests in the higher altitude has been slow and also the state has a poor record of plantation under catchment area treatment plan. Some of the problems with regard to plantation, slow afforestation drive, etc. due to hydel power projects in the state may be due to the sharing of infrastructures with Uttar Pradesh. However, for sustainability of the varied hill ecosystems, policies may be identified to speed up afforestation and rejuvenation of forests especially in the affected districts. Figure 14.1: Area diverted for Hydel Projects, Roads and Transmission Lines

3http://www.downtoearth.org.in/news/maximum-devastation-occurred-in-areas-of-maximum-forestland- diversion-41483 220

14.21. Forest fires have become more frequent in recent years. The forest department has begun to rely more on expensive fire-fighting equipment. A better approach would be to collaborate with local natives giving them ownership rights of forest areas. A forest area may be divided into various segments and each segment may be allotted to interested stakeholder. He/she may grow other horticultural crops to boost income but should be prohibited from cutting down the forest. This will be win-win situation for both forest department and natives as well. This may be started on a pilot basis and adopted to whole state with required modifications. Henceforth, assigned stakeholder will take care of their forest segment to stop forest fire. It was reported that the losses from forest fires in 2016 was around Rs. 29 Lakhs. But an area closed to 3000 hectares was affected. Experts opine that the losses per hectare were underestimated. In a separate report, the fire was reported to have engulfed 4000 hectare forest cover across 13 districts in Uttarakhand, killing 9 people and injuring 17 others. The Centre was requested to study impacts of forest fires and also to outline reasons behind the unprecedented disaster. Although dry weather, low precipitation and lack of hydration in the atmosphere were some of the reasons behind forest fires but the forest department also believes that the disaster was mostly man- made in nature. Forest fires have destroyed vegetation which holds rainfall and therefore might result in floods in the monsoon season. The fires may have an irreversible impact on the glaciers in the higher altitude. Scientists of the Govind Ballabh Pant Institute of Himalayan Environment and Development had formed a team to survey the area and study the effects of the fires on the melting of glaciers.

2. Natural Disasters in Uttarakhand

14.22. Uttarakhand is one of the most disaster-prone states in India, primarily because of its geo- climatic, ecological and socio-economic settings. It is susceptible to natural hazards like earthquakes, floods, landslides, and forest fires. The entire land mass of the state falls under the highly seismic earthquake zones, zone IV and V (Covers areas of very high to highest risk of damages due to earthquakes respectively). Out of the thirteen districts of the state, four districts come under zone V while other five districts partially fall under zone IV and partially under zone V. The remaining districts fall under zone IV. The state has experienced many earthquakes having their epicentre in the Himalayan region. in the recent years (1990 onwards)Uttarakhand has experienced two major earthquakes (magnitude >6) in Uttarkashi(1991) and Chamoli (1999). However, there has been no major earthquake (Magnitude on Richter Scale > 8.0) in the state in last 200 years.

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Figure14.2

(a) Earthquake Zonation (b) Landslide Zone

14.23. Uttarakhand is largely affected by flash floods, landslides and cloudbursts. These natural hazards are common during the south-west monsoons. There have been many incidences of flash floods and heavy rains leading to both loss of lives and property. The 2010 floods and the 2013 flash floods were the most horrifying events that had struck the state in the recent past. Earlier also a series of landslides/cloud burst incidences were recorded such as Malpa (1998), Okhimath (1998), Fata (2001), Gona (2001), Khet Gaon (2002) ,Budhakedar (2002), Bhatwari (2002), Uttarkashi (2003), Amparav (2004), Lambagar (2004), Govindghat (2005), Agastyamuni (2005) Ramolsari (2005) and many more. Uttarakhand, therefore, remains highly vulnerable to natural hazards mainly because of the fragility of its ecological and geological systems. However, in addition to these natural events, various human activities such as unplanned development and land usage, de-forestation, population burst, larger pressure of tourists and inefficient waste management have also contributed to the increased vulnerability and exposure of people and assets to natural hazards.

14.24. In recent years, natural disasters have caused significant damage to both people and physical assets (Table 14.4) which might have hampered the development process in the state. According to the records of the state disaster management department, there were 991 deaths due to natural calamities during 2007 to 2015 excluding more than 4,000 people who went missing (presumed to be dead) in the June 2013 flash floods. There was a loss of 16,708 livestock and more than 4,886 houses were completely damaged during the same period. Flash floods and landslides have claimed 73 lives on an average annually (excluding over 4000 missing people in June 2013 flash floods) during 2001 to 2015. The total economic damage to public property in 2010 flash floods was estimated at a staggering INR 22,568 crore which is surprisingly higher than the estimated damages worth INR 13,844 crore from the June 2013 calamity. Moreover, the

222 tourism sector which contributes about 25-30 percent of the state gross domestic product, has taken a major hit due to 2013 disaster.

Table 14.4. : Damages due to in Uttarakhand during 2007 to 2015

Human lives livestock Houses and Buildings Loss of Agricultural Land Year Lost lost (Completely Damaged) (in Hectares) 2007 90 793 389 110.96 2008 9 183 4 NA 2009 127 722 103 0.51 2010 220 1790 1215 240.94 2011 83 726 514 806.35 2012 176 944 285 40.34 2013 225 11268 2293 1308.96 2014 5 5 2 1271 2015 56 277 81 15.48 Total 991 16708 4886 3794.51

14.25. According to a survey of PHD Chamber of Commerce conducted in June 2013, the state might have lost a potential income of about INR 12,000 crores due to floods. The trends in the economic damages due to natural disasters have experienced an upward swing especially in last few years with major disasters like the 2010 and 2013 flooding hitting the state. It is therefore, the primary concern of the state government to build the resilience against natural calamities, of the exposed and vulnerable population in various parts of the state. The government is focusing on improving the warning systems and developing an efficient risk communication network across the state. Such efforts of the Uttarakhand government are carried out by the Disaster Management and Mitigation

14.26. Centre (DMMC) which is the apex body in disaster management in Uttarakhand. It offers extensive range of training programs in disaster risk mitigation to communities and organizations along with risk communication and advance information about likely disaster and state policies. It also aims to maintain a network of experienced experts working in the field of disaster mitigation and management. The disaster management department of the state government adheres to the national disaster management policy and plans and works in co-ordination with the central government and National Disaster Management Authority.

14.27. It is important to promote earthquake resistant housing construction. This necessitates training of masons and mass awareness. Similarly, there has been illegal construction by real estate and restaurants in places of heavy tourist rush i.e. located in the vicinity of river which may flood during monsoon season. A disaster like 2013, can wreak havoc upon these structures. The list of major and minor earthquakes since 2010 is presented below in Table.

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Table 14.5. : Occurrences of Earthquakes in the State 2010-2015 dz-la- fnukad@le; LFkku@ izkIr vkdM+ks ds vuqlkj HkwdEi dk fooj.k tuin dk uke HkwdEi dk ifjek.k v{kka'k ns'kkarj ¼fjDVj iSekus ij½ Latitude Longitude 1 11-01-2010 erksyh] 3.9 29.70 N 80.00 E le;&10%45 izkr% fodkl[k.M&xaxksyhgkV] fiFkkSjkx<+] 2 22-02-2010] eqUkL;kjh fiFkkSjkx<+ 4.7 30.00 N 80.10 E le;& jkf= 10%54 3 02-05-2010 ckxs'oj &fiFkkSjkx<+ lhek 4.6 29.90 N 80.10 E le; izkr%4%06 ds lehi 4 03-05-2010 fVgjh x<+oky&mRrjdk'kh 3.5 30.40 N 78.40 E le; jkf= 10%45 5 31-05-2010 vYeksM+k 3.6 30.00 N 79.80 E le; lka; 5%07 6 23-06-2010 vYeksM+k] gkSyckx yexM+k 4.5 29.60 N 79.70 E le; izkr% 4-44 7 19-06-2010 tuin &fiFkkSjkx<+ ds 6.4 30.00 N 80.10 E le; nksigj 1%30 equL;kjh 8 07-07-2010 /kkjpwyk] usiky cksMZj 5.1 29.80N 80.40 E le; izkr% 12%38 9 10-07-2010 vYeksMk]ckxs'oj ¼didksV½ 4.1 29.90N 79.60 E le; izkr% 8-46 ]peksyh ¼Fkjkyh½] ikSM+h ¼Jhuxj½ 10 14-03-2011 peksyh] :nziz;kx 3.3 30.50 N 79.10 E le; lk;a 2%31 11 16-03-2011 tuin&fiFkkSjkx<+] rglhy 2.5 29.60 N 80.10 E le; izkr% 7%47 /kkjpwyk 12 04-04-2011 mRrjk[k.M] Hkkjr usiky 5.7 29.60 N 80.80 E le; lk;a 5%02 cksMZj 13 05-05-2011 tuin&fiFkkSjkx<+] /kkjpwyk 5.0 30.20 N 80.40 E le; izkr% 2-27 equL;kjh 14 13-05-2011 mRrjdk'kh 2.9 30.50 N 78.40 E le; jkf= 8%11 15 15-06-2011 fiFkkSjkx<+ ds feyi rFkk 3.4 30.60 N 80.40 E le; izkr% 6%29 equL;kjh 16 20-06-2011 fodkl[k.M nlksyh tuin 4.6 30.50 N 79.40 E le; izkr% 11-57 peksyh 17 24-06-2011 fiFkkSjkx<+ ds /kkjpwyk esa 3.2 30.00N 80.50 E le; izkr% 3-44 18 04-07-2011 fodkl[k.M pkS[kqfV;k 3.4 29.90N 79.30 E le; lk;a 3-14 tuin&vYeksM+k 19- 12-07-2011 fodkl[k.M ewukdksV 3.1 29.60N 80.40 E le; izkr% 7%11 tuin&fiFkkSjkx<+ 20 28-08-2011 mRrjdk'kh 2.8 30.90N 78.50 E le; lk;a 2-24

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21 24-09-2011 mRrjdk'kh 3.0 30.90N 78.30 E le; jkf= 8%02 22 07-11-2011 Hkkjr phu lhek ij 3.8 30.60N 80.30 E le; jkf= 12-05 23 20-11-2011 mRrjdk'kh 3.2 30.40N 78.70 E le; lk;a 3%59 24- 15-12-2011 :nzukFk rglhy tuin 3.2 30.50N 79.30 E le; izkr% 5%25 peksyh 25 11-01-2012 mRrjdk'kh 5.0 30.90 N 78.20 E le; izkr% 12%47

26 10-02-2012 mRrjdk'kh 5.0 30.90 N 78.20 E le; izkr% 12%47 27 11-05-2012 peksyh] fodkl[k.M 3.9 30.20 N 79.40 E le; izkr% 3%31 d.kZiz;kx 28 28-07-2012 Hkkjr usiky lhek] 4.5 29.70 N 80.70 E le; izkr% 11-18 mRrjk[k.M ds tuin fiFkkSjkx<+ 29 13-11-2012 mRRkjdk'kh 2.5 30.70 N 78.50 E le; jkf= 1%32 30 15-11-2012 fiFkkSjkx<+&ckxs'oj lhek 3.0 30.20 N 80.10 E le; nksigj 12%16 31 27-12-2012 HkVokMh Cykd ds ukSxkao ds 4.8 30.90 N 78.40 E le; lk;a 5%45 lehi 32 10@01@2013 fiFkkSjkx<+] mÙkjk[k.M 3.2 30.10N 80.40E le; jkf= 8%46 cts 33 30@01@2013 ckxs'oj] mÙkjk[k.M 2.6 30.20N 80.00E 34 11-02-2013 mÙkjdk'kh] mÙkjk[k.M 4.3 31.0 0N 78.40E le; lk;a 4-19 cts 35 17-02-2013 mRRkjdk'kh] mRRkjk[k.M 3.2 30.9 0N 78.4 0E le; jkf= 9%57 cts 36 25-02-2013 mRRkjdk'kh] mRRkjk[k.M 3.1 30.90N 78.4 0E le; izkr% 7%58 cts 37 06-03-2013 Hkkjr& usiky lhek 3.2 29.70N 80.40E le; izkr% 9%59 cts 38 24-03-2013 fiFkkSjkx<+] mRRkjk[k.M 2.9 30.00N 80.60E le; izkr% 5%48 cts 39 07-04-2013 :nziz;kx] mRRkjk[k.M 4.3 30.50N 79.10E le; izkr% 4%00 cts 40 25-04-2013 Hkkjr& usiky lhek 3.2 29.50N 80.40E - le; izkr% 08%09 cts 41 27-06-2013 cqyokdksV] rglhy /kkjpwyk] 3.5 30-1o N 80.40 E izkr% 11%50 cts fiFkkSjkx<+ 42 fnukad 06-07-2013 le; xzke&ikFkj] 3.0 30-6o N 77.80 E jkf= 1%29 ctsA rglhy&dkylh] tuin &nsgjknwu

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43 fnukad 11-07-2013 le; Å[kheB tuin :nziz;kx 3.2 30-4o N 79.10 E 9%32 jkf= 44 fnukad 14-11-2013 ikSMh&peksyh tuin 3.3 30-0o N 79.20 E le; vKkr 45- fnukad 25-12-2013 eksjh Cykd] mRRkjdk'kh 4.0 31-2o N 78.30 E le; izkr% 8%27 46 20@01@2014 fiFkkSjkx<+] mÙkjk[k.M 2.8 29.7 0N 80.30E le; jkf= 8%11 cts 47 17@02@2014 Å[kheB] :nziz;kx 3.3 30.5 0N 79.20E le; nksigj 12%33 cts 48 17@02@2014 tks'kheB] peksyh 3.2 30.3 0N 79.90E le; izkr% 6%01 cts 49 25@02@2014 rqaxukFk] Å[kheB :nziz;kx 3.5 30.5 0N 79.20E le; lk;a 7%45 cts 50 14@05@2014 Fky] fiFkkSjkx< 3.5 29.8 0N 80.10E le; izkr% 7%24 cts 51 18@05@2014 ukSxkao] mRrjdk'kh 2.9 30.9 0N 78.20E le; izkr% 10%47 cts 52 03@07@2014 equL;kjh] fiFkkSjkx<+ 4.1 30.20N 80.20E le; lk;a 05%05 cts 53 06@07@2014 nkjek o eYyk tkSgkj] 4.5 30.2 0N 80.30E le; jkf= 08%18 cts fiFkkSjkx<+ 54 23@01@2015] fiFkkSjkx<+&usiky cksMZj 3.2 30.00N 81.60E le; izkr% 10%19 cts 55 02@04@2015 peksyh tuin 5.1 30.20N 79.40E izkr% 02%54 ctsA 56 25@04@2015 HkwdEi ds >Vds eglwl 7.5 28.1 0N 84.640E le; izkr% 11%41 cts fd;s x;sA vfHkdsUnz& usiky {ks= ds iks[kjk esA 57 25@04@2015 vfHkdsUnz& usiky {ks= ds 6.6 28.1 0N 84.80E le; nksigj 12%15 cts iks[kjk ,oa dkBekaMw ds e/;A 58 12-05-2015 vfHkdsUn e/; usiky 7.1 27.60N 84.60E le; 12%38 nksigj 59 23-05-2015] peksyh 3.2 30.40N 79.20E le; izkr% 11%53 cts 60 03-06-2015 peksyh mRrjk[k.M 4.0 30.50N 79.30E le; 4%58 cts 61 24-06-2015 fVgjh x<+oky mRrjk[k.M 3.2 30.40N 78.30E le; izkr% 2%03 cts 62 27-06-2015 fiFkkSjkx<+] rglhy 3.0 29.90N 80.30E le; izkr% 11%34 cts equL;kjh] mRrjk[k.M 63 19-07-2015 peksyh] fdek.kk m[kheB 4.0 30.50N 79.10E le; izkr% 5%18 cts mRrjk[k.M

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64 26-07-2015 fiFkkSjkx<+] rglhy equL;kjh 3.4 30.00N 80.40E le; jkf= 10%29 cts ds cytksjh 65 07@08@2015 ?kkV Cykd] peksyh] 2.9 30.3 0N 79.5 0E le; 3%13 izkr% mRRkjk[k.M 66 29-09-2015 fiFkkSjkx<+] 4.8 30.00N 80.40E le; izkr% 2%57 cts rglhy&dukyhNhuk 67 19-10-2015 fiFkkSjkx<+ 2.6 29.50N 80.30E le; izkr% 5%35 68 29-11-2015 peksyh 4.0 30.60N 79.60E le; izkr% 8%18 69 19-12-2015 fiFkkSjkx<+ 4.5 29.30N 81.70E le; izkr% 3%47 70 29-12-2015 peksyh 2.9 30.20N 79.30E le; jkf=%9%20

3. Mountain Ecosystem and Sustainable Development

14.28 Mountain ecosystems are the backbone of economic growth and human well-being. For hill state, mountains provide various public goods and services including fresh water, food, lifesaving medicinal products, energy and bio-diversity. However, these services received less recognition in national as well as sub-national economic decision-making, including development planning and resource allocation. Because the value of mountain ecosystem services was not captured directly in any physical index, its contribution to national economies, income and peoples’ livelihoods is underestimated. People of hill states like Uttarakhand bear a large part of the opportunity cost of providing essential ecosystem services to society at large. Yet they receive inadequate incentives for their conservation efforts and are often asked to bear additional burdens apart from environmental externalities.

14.29 The Twelfth Five Year Plan laid significant emphasis on the issue of sustainable development. The plan document acknowledged that the development process cannot afford to neglect the environmental consequences of economic activity, or allow unsustainable depletion and deterioration of natural resources. All states in the country have identified state-specific requirements to fulfill their development requirements and reduce poverty. This is done by creating enabling infrastructures in the high priority areas. However, certain states like Uttarakhand are at a disadvantageous position in terms of tough terrain, unpredictable weather conditions, large forest land, thinly scattered habitation, small and under developed markets, poor connectivity and inadequate general infrastructure. The cost of delivery of public services in hill state is higher compared to other states. This act as constraints in terms of development compared to other states. In order to address the specific needs of Uttarakhand certain mechanisms are already in place such as through the tax devolution formulae used by the Finance Commissions; budgetary support provided by the Planning Commission; special schemes, packages and policy measures; fiscal incentives in terms of income tax/ excise duty concessions,

227 and so on. However, these may still be inadequate and may need to be broadened taking into account geographical, topographical and socio-political characteristics on the one hand and the constant pressure on hill states for conservation of resources on the other.

14.30 It is well recognized that the Himalayan states must adopt a development path that does not disturb the ecological balance in the region. Hill population have the right to a dignified life and equal opportunities to develop and grow. Therefore, it is important to ensure that the strategy for their development takes into account these special features (geographical, topographical and socio-political characteristics) such that they do not constrain their development in any way.

14.31 For example, the 2013 Kedarnath disaster in Uttarakhand was a grim reminder to what extent nature’s fury can wreak havoc in hilly regions if proper safeguards/precautions are not in place. The question is now how in the remote and mountainous regions of our country development activities should be undertaken? Further, how to take into account and work their way around the difficulties imposed by the terrain and the vulnerability of these areas to inclement and particularly extreme weather and geological events?

14.32 The first and foremost prerequisite is in making the designs of development activities, be it roads, railways, airports, helicopter-pads, hydropower projects, etc. It is important to exploit the existing scientific knowhow upon which such decisions have been guided and should continue to be undertaken. However, it should be emphasized that the by-products of development work, be it the disposal of excavated earth, or the cutting of hillsides, use of explosives in widening roads that triggers vibrations and followed by landslide induced by a short spell of rainfall or cloudburst is a serious challenge for hill dwellers. New development activities must be designed and undertaken in a manner which minimizes any increase in the vulnerability of the area to natural events of an extreme kind. The experience of development in the mountainous regions in the rest of the world clearly suggests that it is possible to undertake such activities in a manner that is aligned with the containment of natural vulnerabilities. While there are material differences in circumstances the development of infrastructure in the European Alpine region does demonstrate the need and the ability to build in difficult mountainous areas in an environmentally safe manner.

14.33 The biggest constraint in Uttarakhand has been the poor state of infrastructure, in particular, roads, railways and power. There are still a number of villages either not connect or inaccessible by roads. Rail connectivity is very poor restricted to few cities only in the plain region only. Air connectivity to the region is also very poor. There are two functional airports at Dehradun and Pant Nagar. It takes huge time to travel from one place to another place in hilly region. Also, the numbers of public buses plying between two places are not adequate. Second, during rainy season, when landslides are more frequent, many regions remain inaccessible. Poor density of road and rail transportation within the region has not only hampered mobility but also

228 hindered the development of markets. The region has tremendous potential for generating hydroelectric power and solar power, but actual generation is less than the potential. This has further aggravated by the number of ruling against the inception of hydropower projects in the state by the NGT. Poor infrastructure poses serious development risk i.e. doctors are less likely to work in places that have poor connectivity. There are very few private medical clinics operational in hilly regions than plains. Also, very few medical professionals are enthusiastic about working in hills because of poor connectivity. If these regions are endowed with sound infrastructure that medical facilities will certainly improve and other professional services will also develop like telecommunications, hospitality sector and school education.

14.34 Water is one of the most precious products of the Himalayan ranges. Himalayan glaciers are important in maintaining ecosystem stability and as buffers regulating runoff of water supply. In the context of climate change these dynamics may be adversely impacted. Therefore, planning and investment priority must be accorded to the conservation, protection and maintaining the productivity of these resources. Formulation of an efficient and practical river valley and watershed management strategy within enforceable, water governance framework is imperative. Initiatives for conservation and revival of springs, lakes, aquifers, underground channels etc. need a comprehensive policy. Many areas are facing water and moisture scarcity. Access to tap water, water quality and quantity are serious issues.

14.35 The local economy of Uttarakhand is still dependent on agriculture and horticulture. Yet, surplus production of agriculture or horticulture makes no sense unless these can be evacuated on time, conveniently and cheaply to the main markets in the plains especially cities. Once again, connectivity becomes the key to transporting produce from production centres to the markets. Apart from focus on developing road networks as highlighted before, other communication alternatives and especially marketing infrastructures needs to be strengthened.

14.36 The Uttarakhand disaster in June 2013 was one of the worst disasters of recent times in the Himalayan region. A large part of the state was affected by floods due to widespread and excessive rain in the upper reaches of the Himalaya which were then accompanied by landslides, glacial lake outburst flood (GLOF) and also probably high snowmelt runoff. The tragedy killed thousands of people, both local residents and tourists, and caused extensive damage to infrastructure, property, agriculture and other natural resources of this Himalayan state. In brief, it destroyed tourism industry in the state. Tourism provides immense work opportunities to natives of Uttarakhand, who suffered heavily as pilgrim rush was less compared to previous years due to fear of 2013 flood.

14.37 Relief in terms of food grain, financial and other assistance was provided to meet immediate needs. However, Reconstruction & Rehabilitation (R&R) and restoration of normal life have become major challenge before the State government. R&R activities in the State calls for

229 sound scientific planning so that the vulnerabilities of the communities to natural hazards are minimized and developmental activities are sustainable in longer run.

14.38 The following are some broad guidelines for scientific planning in taking up R&R activities in Uttarakhand state from a long term perspective, based on the experience gained by ISRO in carrying out national (mapping) mission projects, pilot projects, limited field experience, and literature:

a. The Himalayan region has a very fragile geomorphology and provides valuable ecosystem services to the nation in general and to the people living in Indo-Gangetic Plain in particular. Therefore, “sustainable development” ought to be central to developmental activities in this region. This is essential to maintain a balance between environment and economic development while striving for faster and inclusive growth, as also emphasised in Twelfth Plan document. b. Damage assessment in disaster-affected areas, especially Char-Dham and Pindar valley areas, is the first step to take up the R&R activities in Uttarakhand. This can be done in three stages:

i. Analysis of post-disaster high resolution satellite images taking the pre-disaster images as reference for first-cut damage assessment; ii. Ground truthing in the damaged areas mapped through satellite imagery; and iii. Collating the satellite imagery and field data to assess the extent and spatial pattern of damage. Ground truthing for detailed assessment of extent of damage is a time and labour- intensive task. Collaborative mapping/ crowd-sourcing by involving local people is therefore is the viable option. A multi-institutional initiative on “Map the Neighbourhood in Uttarakhand” (MANU) has been initiated by Department of Science and Technology (DST), Govt. of India, wherein field data are being collected using geospatial technologies by the students and teacher/scientific community (~150) of the state who were trained by Indian Institute of Remote Sensing (IIRS) in association with National Remote Sensing Centre (NRSC) and Survey of India (SOI). A mechanism to involve local people/community will further help in this endeavour. Conservation of natural resources and environment along with measures to enhance the productivity for improved livelihood and human development is vital in the long-term perspective. This can be achieved by adopting scientifically and technically appropriate, economically viable and environmentally sustainable methods and approaches that are acceptable to local people.

14.39 There is a strong need to promote participatory approach for sustainable management of natural resources. Community based land & water resource development plan and governance, using indigenous knowledge requires formulation and this ought to be implemented to sustain the developmental programmes and schemes of government. The concept of inventorying the

230 assets and other baseline information including natural resources using the latest tools and technologies by crowd-sourcing (i.e. by involving local community including school/college level students) should be promoted.

14.40 A committee formulated by Planning Commission under the chairmanship of B.K.Chaturvedi recommended following suggestion to quicken development in the hill states: i. While due emphasis on environment needs to be continued, relaxation in norms should be made for Himalayan & North Eastern States. The Committee has observed that the procedures which are in place for environmental clearances of various projects in the country are generally identical for all States. This is a constraint for States which have large forest lands or hilly terrains. There is a need to take a view on the relaxation of forest clearance norms for Himalayan States in line with Left Wing Extremism (LWE) affected districts in order to ensure fast tracking of clearance for infrastructure projects. ii) The MoE&F should scrutinize specific proposals in this regard in consultation with the respective States. Besides, it is essential to fast track the proposals for environmental approvals/forest clearance to impart efficiency and transparency to the entire system. There must be a time bound approach for providing clearances, within a time frame of 3 to 6 months. A co-ordination committee could be formed with representatives of both Central and State Governments at least for large projects, which could sort out issues, if any.

iii) The decision to permit the use of CAMPA (Compensatory Afforestation Fund Management and Planning Authority) funds for densification of forests with low canopy cover has already been given in some cases and this provision should be made applicable generally. iv) For developmental projects, the extant provisions must be relaxed, allowing for automatic diversion of forest land up to 10 ha from the current limits of 1 ha. v) In the case of infrastructure projects, a large number of such projects are held up due to non - availability of forest clearances. The Committee feels that the respective States should be provided greater flexibility to accord approval for projects involving diversion of forest land up to an area of 10 ha from the present limit of 5 ha. vi) There is also a need to streamline the policy and procedures by cutting down on the multiple stages in processing the forest/ environment clearance projects. vii) In any case a time bound system for receiving, processing and granting of clearances has to be strictly followed within a reasonable time frame, not exceeding one year. viii) The Ministry of Road Transport & Highways has submitted that for border road projects there is a need for permitting right-of-way up to 100 metres and up to 60 metres for widening, against 24 metres prevalent as of now. They have also recommended that cutting of trees may be permitted subject to the condition that afforestation would be done on double the area somewhere else. The Committee recommends that this is an acceptable position for border roads projects.

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