Twelfth Five Year Plan (2012–2017) Economic Sectors Volume II Copyright © Planning Commission (Government of India) 2013 All rights reserved. No part of this book may be reproduced or utilised in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the Planning Commission, Government of India. First published in 2013 by SAGE Publications India Pvt Ltd B1/I-1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044, India www.sagepub.in SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320, USA SAGE Publications Ltd 1 Oliver’s Yard, 55 City Road London EC1Y 1SP, United Kingdom SAGE Publications Asia-Pacific Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Published by Vivek Mehra for SAGE Publications India Pvt Ltd, Phototypeset in 11/13pt Minion Pro by RECTO Graphics, Delhi and printed at Saurabh Printers, New Delhi. Library of Congress Cataloging-in-Publication Data India. Planning Commission Twelfth fi ve year plan (2012/2017)/Planning Commission, Government of India. Volumes cm 1. India—Economic Policy—1991–92. Finance, Public—India. I. Title. HC435.3.I39 338.954009’0512—dc23 2013 2013009870 ISBN: 978-81-321-1368-3 (PB) The SAGE Team: Rudra Narayan, Archita Mandal, Rajib Chatterjee and Dally Verghese Twelfth Five Year Plan (2012–2017) Economic Sectors Volume II Planning Commission Government of India Thank you for choosing a SAGE product! If you have any comment, observation or feedback, I would like to personally hear from you. Please write to me at [email protected] —Vivek Mehra, Managing Director and CEO, SAGE Publications India Pvt Ltd, New Delhi Bulk Sales SAGE India offers special discounts for purchase of books in bulk. We also make available special imprints and excerpts from our books on demand. For orders and enquiries, write to us at Marketing Department SAGE Publications India Pvt Ltd B1/I-1, Mohan Cooperative Industrial Area Mathura Road, Post Bag 7 New Delhi 110044, India E-mail us at [email protected] Get to know more about SAGE, be invited to SAGE events, get on our mailing list. Write today to [email protected] This book is also available as an e-book. YZ Contents List of Figures vii List of Tables viii List of Boxes xii List of Acronyms xiv List of Annexures xxv 12. Agriculture 1 13. Industry 51 14. Energy 130 15. Transport 195 16. Communication 258 17. Rural Development 286 18. Urban Development 318 19. Other Priority Sectors 362 Figures 12.1 Growth and Fluctuations in GDP Agriculture and Allied 2 12.2 All India Average Real Daily Wage Rate at 2011–12 Prices (` Per Day) 9 13.1 Contribution of Manufacturing to GDP Very Low in India 52 13.2 India and Global Manufacturing States 52 13.3 New Approach to Industrial Policy 55 13.4 Focus on Sectors as well as Cross-cutting Issues 59 13.5 Strategy for Land Issues 81 13.6 Description of Land Acquisition Process 83 13.7 Two Connected ‘Tracks’ for Implementation and Systems’ Improvement 101 13.8 Capability Map 102 14.1 Exploration Blocks awarded in NELP Rounds 172 14.2 Renewable Power Capacities, Top Five Countries, 2010 183 14.3 Cost of Renewable Energy Technologies Per MW 185 15.1 Existing and Proposed Thermal Power Plants on National Waterways 232 15.2 National Waterway-2 234 15.3 Kaladan Multimodal Transit Transport Project 234 16.1 Telephone Subscribers Growth during 2007–12 259 16.2 Distribution of Urban and Rural Subscribers 260 16.3 Number of Telephone and Broadband Connections 260 16.4 Mobile Tariff Trends V/s Growth in Mobile Subscribers in India (1999–2012) 261 17.1 Access to Household Amenities in Rural India (2001 to 2011) 303 17.2 Households by Type of Latrine Facility in Rural India in 2001 304 17.3 Households by Type of Latrine Facility in Rural India in 2011 304 17.4 PURA Transaction Structure 312 17.5 Institutional Structure for PURA 314 18.1 Sources of Increase in Urban Population 319 18.2 Key Constitutes of India’s Urban Future 324 Tables 12.1 Growth Rate of Agricultural and Allied Sectors 1 12.2 Some Weather Details 3 12.3 Averages and Standard Deviations of Annual Growth Rates of GSDP from Agriculture and 4 Allied Sectors 12.4 Growth of Output, Inputs and Productivity 6 12.5 Gross Capital Formation (GCF) in Agriculture, Forestry and Fishing (2004–05 prices) 8 12.6 Average Annual Growth Rates in Yields Per Hectare 10 12.7 Public Sector Capital Formation and Subsidies to Agriculture (Centre and States) 13 12.8 Real Prices of Agricultural Produce 17 12.9 Demand and Supply of Food Commodities during the Twelfth Plan 18 12.10 Expenditure on Agricultural Research and Education 30 12.11 Outlays and Expenditure of MoA and Its Three Departments (DAC, DAHDF and DARE) 47 12.12 Gross Budgetary Support (Department-wise) 50 12.13 Comparison of States Outlay and Expenditure for Eleventh and Twelfth Plan 50 13.1 Rate of Growth of GDP at Factor Cost at 2004–05 Prices (Per cent) 53 13.2 GCF in Industry 53 13.3 Employment by Sector 54 13.4 Processes that Enable Learning 62 13.5 Manufacturing Ecosystem Infrastructure 62 13.6 Registered MSMEs—Manufacturing 85 13.7 Definition of MSME 85 13.8 Manufacturing GDP by Sector and Employment Projections 96 13.9 Key Variables and Assumptions 105 13.10 Ministry/Department-wise Twelfth Five Year Plan (2012–17) Outlays Industry Sector 129 14.1 Energy Intensity for Total Primary Energy* 130 14.2 Energy Intensity 131 14.3 Household Access (%) 132 14.4 Trends in Supply of Primary Commercial Energy 133 14.5 Share of Each Fuel in Total Energy Production and Consumption 134 14.6 Installed Capacity Addition during the Eleventh Plan (in MW) 136 14.7 Mode-wise/Sector-wise Break-up of Generation 137 14.8 All-India Cumulative Generating Capacity (as on 31 March 2012) (in MW) 137 14.9 Planned Manufacturing Capacity MW Per Annum 139 14.10 Cumulative Achievement of Transmission Lines at the End of the Eleventh Plan 140 14.11 Aggregate Technical and Commercial Los ses of State Power Utilities (within State) 141 14.12 Viability of Major State Utilities Not Improving (Excluding Delhi and Odisha) 142 14.13 Details of Year-wise Progress Achieved on Restructured APDRP (as on 31 March 2012) 142 Tables ix 14.14 Status on RGGVY Progress during the Tenth and the Eleventh Plan 143 14.15 Outlay/Expenditure: Centre, States and UTs (` Crore) 146 14.16 Sector-wise and Mode-wise Capacity Addition (Provisional) during the Twelfth Plan (MW) 146 14.17 Changing Structure of Fuel for Electricity 147 14.18 Status of Hydro Electric Potential Development 148 14.19 Fuel Requirement during 2016–17 149 14.20 Transmission Line at the End of the Twelfth Plan Period 150 14.21 Inter-Regional Flow of Power at the End of Twelfth Plan Period 151 14.22 Details of Coal and Lignite Production 160 14.23 Inventory of Coal and Lignite Reserves as on 1 April 2012 160 14.24 Accretion of Coal Reserves 161 14.25 Coal Washing Capacity by the end of Eleventh Plan Period 162 14.26 Financial Performance of the Coal Sector 165 14.27 Coal Demand during the Twelfth Plan 165 14.28 Coal Production 166 14.29 Share of Underground Production in Total Production 167 14.30 Price Comparison of Domestic Coal with other Countries 167 14.31 Consumption of Petroleum Products 171 14.32 Physical Performance of Petroleum and Natural Gas Sector 172 14.33 Share of Overseas Hydrocarbon Production 173 14.34 Under-Recoveries on Petroleum Products 174 14.35 Demand of Petroleum Products 176 14.36 Projection of Crude Oil Production in the Twelfth Plan 176 14.37 Natural Gas Demand for Twelfth Five Year Plan 176 14.38 Projection of Natural gas production in Twelfth Plan (BCM) 177 14.39 Breakup of the Exploration Programme for the Twelfth Plan 177 14.40 Likely Under-Recoveries on Petroleum* Products 178 14.41 Projected Refining Capacity during Twelfth Plan (MMTPA) 178 14.42 R&D Expenditure by Major Oil and Gas Companies 180 14.43 Eleventh Plan Power Capacity Addition through Grid Interactive Renewable Power 185 14.44 Cost of Power for Various Renewable Energy Sources 186 14.45 Power Capacity Addition through Off Grid Renewable Power 186 14.46 Eleventh Plan Financial Allocations and Expenditure: MNRE 187 14.47 Indicative Twelfth Five Year Plan Outlay for the Various Ministries/Departments in the 190 Energy Sector 15.1 CO2 Emissions from Various Transport Modes 196 15.2 Overview of Financial Position of the Indian Railways 199 15.3 Investment in Railways during Eleventh Plan 200 15.4 Performance of Freight Business during Eleventh Five Year Plan 201 15.5 Performance of Passenger Business during Eleventh Five Year Plan 201 15.6 Losses in Passenger Services 201 15.7 Capacity Creation during Eleventh Plan 202 15.8 Throw Forward of Infrastructure Projects as on 1 April 2012 202 15.9 Rolling Stock Performance during Eleventh Plan 203 15.10 Productivity Performance 203 15.11 Benchmarking Indian Railways with Chinese and Russian Railways 204 15.12 Traffic Projections 206 x Tables 15.13 Passenger Traffic Projections for Twelfth Plan 207 15.14 Projection of Originating PKM for Twelfth Plan 207 15.15 Creation of Fixed Assets during the Twelfth Plan 209 15.16 Rolling Stock Requirement during the Twelfth Plan 210 15.17 Passenger Service Yields in some Major Economies 213 15.18 Freight Yields in some Major Economies 213 15.19 Physical Achievements under NHDP during the Eleventh Five Year Plan 215 15.20 Progress of NHDP up to 30 April 2012 216 15.21 Physical Progress of Non-NHDP NHs during Eleventh Five Year Plan 217 15.22 State Roads Progress during the Eleventh