GOVERNMENT OF MADHYA PRADESH 8ns _ If -- ! h!'Ki- N..N , , ^h- *'■ ■ > C' o.ft lb'i'6i. % # TrTrisrTcs SECOND FIVE YEAR PLAN 'l(^D«:t8:pF 191 .^OVi^ r, PROGRESS REPORT 1959-60 DIRECTORATE OF ECONOMICS AND STATISTICS INDORE Governm ent Regional Press 1961 CONTENTS Chapter Page I. Development of the Economy, Achievements 1 and Perspective. II. Physical Resources and the Plan. 8 III. Progress of the Plan. 23 IV. Agricultural Productions and Land Development. 33 V. Animal Husbandry and Dairying. 43 VI. Fisheries. b 'l VII. Forests. 59 VIII. Co-operation. 67 IX. Land Records and Consolidation of Holdings. 75 X. Community Development Programme. 81 XI. Multipurpose River Valley Projects. 85 XII. Irrigation. 89 XIII. Power Development. 97 XIV. Industries and Mining. 103 XV. Transport and Communications. 114 XVI. Education. 128 XVII. Public Health. 141 XVIII. Housing. 154 XIX. Labour Welfare. 159 XX. Welfare of Scheduled Tribes, Scheduled Castes 166 and Backward Classes. XXI. Social Welfare and Panchayats. 175 XXII. Statistics. 190 XXIII. Information and Publicity. 194 XXIV. Local Bodies Development. 196 XXV. Welfare of Prisoners. 198 XXVI. Metric System of Weights and Measures. 201 XXVII. Training Schemes. 203 XXVIII. Bhopal Capital Project. 205 APPENDICES 1. Plan Outlay and Expenditure. 208 II. Selected Physical Achievements. 214 CHARTS AND GRAPHS 1. Agricultural, Industrial and Mineml Production 2. Consumer and Wholesale Prices Indices 3. Second Five Year Plan 4. Agricultural Production 5. Land Development and Soil Conservation 6. Veterinary, Animal Husbandrj^ and Dairying 7. Forests 8. Co-operation 9. Community Development and National Extension Services (Plan Expenditure) 10. Irrigation— Major, Medium and Multipurpose Projects 11. Minor Irrigation 12. Power Development 13. Industries and Mining 14. Transport and Communications 15. Education 16. Public Health 17. Labour Welfare 18. Welfare of Scheduled Tribes, Scheduled Castes and Backward Classes CHAPTER I Development of the Economy Achievements and Perspective The Annual Plan Progress Report for the year 1959-60 attempts i.o analyse and examine the principal achievements in the major sectors of the State economy during the year under review. These achievements are to be judged in the light of the over-all financial and physical targets fixed for each of the sectors of the State economy; the degree of success achieved in the mobilization of the domestic resources for financing the Plan; the extent of peoples participation in the building up of community assets; the net increase in the total and per capita income of the State; the extention of employment opportunities and reduction in economic and social inequalities. These objectives are sought to be achieved through substan­ tial increases in the industrial and agricultural production, extension of social services like education, medical and public health, strengthening and diversification of rural economic structure and building up of such economic and social overheads as would enable the economy to stage a take off fr Ti its present stage of under-development and acquire the necessary entum for a self-generating, self-sustaining' and self-accelerating «ymic growth. The pen-ultimate year of the Second Five Year Plan WwS, therefore, mainly directed towards speeding up the pace of progress on all fronts and rapid realisation of the financial and physical targets envisaged in the Plan. The intensification of development activities was also accompanied by rapid institutional and structural changes so vitally needed to make the economy more dynamic and progressive. The Annual Plan Progress Report seeks to give a systematic, scientific and* objective account of the principal developments in the various sectors of the State economy during the period under review. 2 The Second Five Year Plan activities received a good momentum with bumper harvest in 1956-57 alongwith substantial gains in industrial production. Adverse weather conditions and partial failures of rainfall in some parts of the State during 1957-58, however, resulted in substantial contraction in the availability of food-grains during 1958-59. Coinciding with this the decline in the domestic production of manufactures and consumer goods consequent to severe restrictions on import of raw- materials and components spurred the prices to new heights with their inevitable projections on the cost of living of the majority of population, cost of production of home-made goods and export trade. In contrast to the above, the year under report witnessed all, round economic recovery and progress. Agricultural production, particularly of foodgrains, recorded an increase of about 17% in 1958-59 over 1957-58, while the production of commercial crops has been sufficiently higher than in the preceding year except for raw cotton the production of which slightly^ declined. The increase in industrial production during the year under review works out to about 6 per cent as against 1.7 per cent in 1958 and 3.5 per cent in 1957. Except for textiles and sugar, increase in industrial pro­ duction was mostly contributed by iron and steel, cement, coal, jute, matches, salt, soaps and chemicals, automobiles, machine-tools and general engineering industries. Better Supply of i?arw materials, better labour management relations, expansion in productive capacity and easy availability of long and short term credit facilities are some of the factors which liave contributed towards rapid industrial advancement. In of the above encouraging picture, the brief recession in economic activity witnessed during 1958-59 could be said to have passed behind except for the most distressing feature of the rising prices and the cost of living. The general price level has been continuously rising during the four years of the Second Five Year Plan. From 105.2 in 1956-57 to 108.4 in 1957-58, to 112.9 in 1958-59 and 117.1 in 1959-60. Although in between the years the rise of 3 to 5 points could be considered as permissible in these days of large-scale plan investments, the net rise of about 12 points during the four years is certainly causing anxiety since it is directly linked with the cost of living of the population—workers engaged in industry and on huge construction programmes under various plan projects and employees of the Central and State Governments and various conunercial organisations. The All India Consumer Price Index has also been keeping close to the general price level and from 107 in 1956-57 advanced to 112 in 1957-58, to 118 in 1958-59 and stood at 121 in March, 1960. Enlarged plan investments and development expenditure, increase in population, inadequate production of various consumer goods, continued stress on export promotion drive have been attributed as important factors responsi­ ble for the continued rise in the price levels and cost of living. But for the operation of the statutory price controls on cement, steel, fuel, power, several basic raw materials and the Central and State Governments Foodgrains Movement Control Orders, State Trading etc., , the rise in price level and the cost of living would have been Unprecedented. Among the favourable economic trends in 1959-60 mention must be made of the slight improvement in the Balance of Payments position. The adverse trade balance in 1958-59 was Rs. 339 crores (excess of imports of Rs. 1164 crores over exports of Rs. 825 crores) as compared with Rs. 401 crores (excess of imports of Rs. 1318 crores over exports of Rs. 917 crores) 1957-58. In the first three quaii;ers of 1959-60, impoi’ts aggregated Rs. 724 crores and exports Rs. 658 crores, so that the adverse balance of trade was about Rs. 66 crores. A significant feature of the import trade is the sharp increase in imports on Government account which aggregated Rs. 288 crores, Rs. 509 crbres and Rs. 528 crores in 1956-57, 1957-58 and 195S-59 respectively; it was somewhat less at Rs. 295 crores in the first three quarters of 1959-60. The general upward trend in Govem'ment imports reflects to a considerable extent the increasing participation of the iState in economic activity. The successful completion of a number of power and irrigation projects, commissioning of the new three steel plants (Bhilai, Rourkelji and Durgapur), installation of new plant and machinery and additions to the existing installed capacity in various industries, development of inland transport, communications and shipping, opening of new lines of manufacture and improvements in technology and organisation during the year not only strengthened and broad-based the national economy but imparted it a measure of elasticity amenable to diversification and specialisation so necessary for a self-generating and self-accelerating economy. The economic landscape in the State during the year under review almost conformed more or less to the pattern obtained in the country as a whole. The systematic assessment and objective appraisal of the pro­ gress of thfe plan in the context of the principal developments in the economy is expected to reveal the performance of the plan and the resulting gains to the community. An effort has been made below to outline briefly the principal trends in production, prices, cost of living, employ­ ment and general pattern of development during the year under review. Agricultural and Industrial Production: By far the most gi-atifying feature of the economy in 1959-60 is the increase in agricultui’al production. The All India Index of Agricultural Out-put (1949-50—100) which had declined from 123.6 in 1956-57 to 114.6 in 1957-58 rose to I3K0 in 1958-59. Between 1957-58 and 1958-59 the output of food-grains increased from 62.5 million tons to 73.5 million tons, of jute frofti 4.1 million bales to 5.2 million bales, of groundnut from 4.4 million tons to 4-8 million tons and of sugarcane (in terms of gur) from S.9 million tons to 7.2 million tons, though the out-put of cotton was some­ what lower at 4.7 million bales.