FOURTH FIVE YEAR PLAN OF ASSAM A DRAFT OUTLINE GOVERNMENT OF ASSAM :^ANNING AND DEVELOPMENT DEPARTMENT A bcn C0O C0<) <<0^ <>0^ C.^ coor S 5 § . § § Government of India ^ § PLANNING COMMISSION § I LIBRARY I § § I Class No. ,33!& ...B..4.CV.V^^.............. I § Book N o.._ A ? 4 4 P ........................................... § § § § § § C^<i^ C-C^ C^1C^§ C o n ten ts p a g e 1. Approach to the Fourth Five Year Plan 1—10 2. The Fourth Plan in outline 11—14' S. Resources for the Fourth Plan 15—16 4. Sectoral Programmes 19—65 5. Development of Backward Areas 66—71 6. Integrated Hill Plan 72—96 7. Employment in the Fourth Plan 97—98 Statements I to V for the State Fourth Plan ... 99—154 Statements I to V for the Integrated Hill Plan ... 155—175 Appendix A :—Selected Indicators of Development 176—178 Appendix B:—List of Backward Areas ... ... 179—180 CHAPTER I APPROACH TO THE FOURTH FIVE YEAR PLAN 1. Assam embarked on her programme of planned development witl^ a modest First Five Year Plan costing Rs. 20-5 crores. The First Five Year Plan of Assam was conceived as a modest effort designed firstly to remove the shortages and inequilibrium ’n the economy follov»^ing the War and Partition and secondly to fulfil the needs of the most essential items of development in which the State was hitherto lacking. The programme had a long-range objective of strengthening the economy at the base and initiating institutional changes which would pave the way for rapid advance in future. High priority was given to agricultural development, setting up of essential institutions of higher education and professional learn­ ing, development of communications, etc. Assam made significant advance during the First Plan period, 2. The becond Plan of Assam, designed to carry forward the process of development initiated in the First Plan, was drawn up as an integral part of and in conformity with the overall concept and objective of the National Second Five Year Plan. It sought to carry-forward the institutional' changes to make the State’s economy more progressive in terms of defined economic and social needs on the one fiand, and on the other it aimed at a balanced distribution of plan funds under different sectors of development, In parti- culai*, it laid emphasis on the development of agriculture, irrigation, power, transport, education and health services. In the Second Five Year Plan period the expenditure incurred on the Plan was Rs. 54.5 crores. During the Second Plan, the State made rapid progress on the economic plane. The State national income of Assam expressed in terms of 1948-49 prices rose by 32 per ceni from Rs. 223 6 crores in 1950-51 to Rs. 296*2 crores in 1*^ 60-61. However, the rapidly increasing population kept the per capita income virtually stationary over the period ot the first two Plans. 3. The experience ofi he first two plans as well as the increasing requirements of the future provided the guide-lines m the formulation of the Third Five Year i'lan. There was rapid development in social services, transport and power. Spccial emphasis was placed on flood control. The three-tier panchayat system also gained momentum during this period. There was phenomenal growth of the major towns in the State, but industrial development, which had started with a rapid pace in the beginning of the Plan began to stagger as a result of the Chinese aggres­ sion. Even the record of the National I'hird Plan has not, prima fade^ been entirely satisfactory. Progress in physical terms was much lower than expected in many fields. Assam, which has been persistently lagging behind other States in important sectors such as industries, power, communications, technical education, iirban development, etc., has further lagged behind other States during the Third Plan period. ‘Appendix A’ at the end this Plan outline gives a set of indicators of development in important fields showing the comparative position of Assam in the country as a whole. It will be seen that in 1964 Assam accounted for only 2'2 percent of the employment in factories in India. The income from factory industry in the State was still lower, only 2*0 per cent of the All India figure in 1964-65. Similarly the income from small enterprises in Assam was barely 2‘8 per cent of that of All India in J 964-65. The installed capacity in Assam of electrical power in 1965-66 was only 143 M. W., or 2*1 per cent of the total installed capacity of 10,170 M.W. in India. The length of surfaced road, per 100 square kilometer in the Staie was only 3‘ I k.m, against 7 0 k.in. ior> the country as a whole. 4. During the period 1951-52 to 1965 66, covering the first three Plans,: the State income ol Assam at 1960-61 piices rose from R?.279 2 crores to Rs.415‘6 crores or at the rate of 3’2 per cent per year. The Third Five Year Plan sought to s< cure an annual growth rate of about 5.1 per cent per annum; but the performance of the economy in 1965-66, the last year of the Plan, as revealed by the quick estimates ol State Income shows that the annual growth rate is hkely to stand around 4-1 pe-- cent. This sl.ortfall in the target is solely due to setback in agricultural production in 1965-66 which entailed a drop by 5.5 per cent in the income fron agriculture proper. It ii of significance to observe that over the firat four years of the Third Plan ending witn the year 1964-65, when agricultural production was at its normal level, the annual growth rate of the State’s economy was of the order of 5 per cent which is very close to the desired rate envisaged in the Plan. A study of composition of State income during the 15 years of planning will show that a beginning in the structural change in the economy of the Statt has already set in, particularly by the end of the Third Plan. From 63’^ percent in !950-jl the income from agriculture sector as percentage of the total Staie income has come down to 48*2 pA- cent in the year 1965-66, The" percentage share ot income from mining, manufacturing and construction on the other hand, has risen from 17’6 per cent in 192iO-51 to 24'1 per cen in 1965-66. This high rise in percentage share is atiributable mainly tc the increased production of cn de oil and ^pil refining industry. Incomt irorn factories other than tea and oil refining has also grown considerably This is no doubt a healthy sign. 5. But inspite of about 60 per cent increase in the State Ir.come (a 1960-61 prices) over the period 1950-51 to 1965-66 the per capita incom^ of Assam recorded a rise of bare ‘i per ccnt over this 15 year period, i.e., bi an average 0”2 per cent annually. This is due to the fact that economi< growth oi the State has not marched forward comtnensurately with thj growth of population. 6. Thus the basic problem of “ ra'sing living standards and opcnini up to the people new opportunities for a richer and more varied life' continues even at the end of ilie Third Plan. If the State is to contribute meaningfully to the task of national development, a high rate of growth ha to be secured over the crucial period of the next ten years or so to lift th economy from the present state of virtual stagnation. 7. Agriculture.—Agriculture consdtutes the very base of Assam’* economy, and it is natural that in all the three Plans agricultural pro grammes were assigned a hi^^h priority. With abundant rainfall an< fertile valleys suitable for cultivation of a wide variety of crops, Assam potential for developiiikj and diversifying agriculture is very great and y< the progrcs>i of agriculture in the first three plans has not been able keep pace with the growth of population. From a surplus State in fooc grains the State has turned out to be defi^cit or barely sufficient del pite an increase of 13 per cent in the area under toodgrains since th advent of planning. 8. The yield of rice, the principal food trop in Assam, has been almost stagnant during the entire period. Over tho decade 1951-61, the trend of major crops production during this period is indicated in the table below:— Crop Unit 1955-56 1960-61 l955-6b Rice 000 tonnes 1,640 1,751 1,847 Wheat Do 1 3 3 Other Cereals Do 10 8 15 All Cereals Do 1,651 1,762 1,865 Pulses D o 30 27 37 Food grains Do l,68t 1^789 1,902 O il seeds Do 59 5O 64 Sugarcane (Gur) Do 66 94 166 Cotton Metric ‘000 bales 8 6 7 Jute D j 1,103 899 815 All crops (index base 1956-57=100) 95-79 9890 106-38 The Third Plan target for foodgra^n production was 22 lakh tonnes but the actual achievement by the end of the PI n was only 19 lakh tonnes. In the previous year, 1964-65, it was 19‘6o lakh tonnes. As regards other crops the State continues to have an acute shortage of pulses and oilsrtds.