Kelkar panel calls for free irrigation, power to farmers‘

Nagpur: Despite a Rs7,000 crore package and other sops by the Maharashtra government, a spate of suicides continues to rock the state, particularly in Vidarbha and Marathwada regions. Now, highly-placed sources in the government say that the much awaited report of ‘Higher level committee on balanced regional development issues in Maharashtra’ has suggested 100% free irrigation and power to stop debt-ridden farmers from taking the extreme step.
The BJP-led government is expected to submit the report of the panel under noted economist Vijay Kelkar at the end of the Nagpur session, probably on Wednesday. Interestingly, sources believe the panel has also recommended that if the blueprint of balanced development cannot be implemented properly, sub-state status or statehood to Vidarbha should be considered.
The panel was set up by the then chief minister Prithviraj Chavan in 2011 to suggest measures to remove the regional imbalance and lay down the role of the development boards. Though Kelkar, former chairman of planning commission, had submitted his report in October 2013, the Chavan government kept it under wraps to avoid a confrontation with its ally NCP.
Sources say the panel makes a host of recommendations to remove the regional imbalance. This includes decentralization of water resources, system for measuring tribal development index on annual basis, restructuring regional development boards (RDB) with CM as chairman, establishing separate regional secretariats, and directly elected mayor for metropolitan regions with defined functional jurisdiction.
To boost manufacturing activity and attract private investors, the panel is believed to have recommended rebate in sales tax and reduction in interest of borrowed capital in backward regions like Vidarbha and Marathwada. It also recommended adequate compensation for land to be used for power transmission. To improve the power scenario, Kelkar advises encouraging small power plants based on renewable resources.
The report also suggests regional allocation of funds, with 60% of the divisible funds to be considered as ‘floor level’, which should be based on parameters like population, development gap, per capita income and area.
For farmers, the report recommends that those possessing less than five acres be given fixed amount of Rs2,000 per month per household for next three years. Also, there are suggestions that rural youth should be provided Rs5-10 lakh business loan for dairy farming, horticulture, sericulture, cattle farming, fisheries, and for setting up Small Scale Industries (SSI).
Some sources say the panel found that regional imbalance was due to low and unstable growth rates of agriculture sector, inadequate flow of private investment, infrastructure deficit in terms of assured irrigation, connectivity and quality of power, low level of governance, lack of resource flows from public and private sector, and importantly, low Human Development Index (HDI).
The panel had taken a participatory approach, based on perspectives of the people of different regions, data analysis, expert knowledge, empirical analysis derived from commissioned studies, and included all stakeholders’ views.
It suggested that institutional reforms were required towards capacity building for efficient use of public sector resources, reducing costs of doing business and also for promoting private investment flows. It also recommended governance reforms aimed at greater empowerment and accountability at regional and local level so as to achieve balanced development on a sustainable basis.
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MAJOR RECOMMENDATIONS
* 60% of divisible funds to be considered ‘floor level’ for allocation
* Allocations to be based on Population, Development Gap, Per Capita Income & Area
* Water resource management to be decentralized; resources are to be allocated on such basis, water is recognized as a separate, virtual region
* ‘Severely Water Stressed Talukas’, ‘Bhustar Pratikul Talukas’, ‘Khar Pan Patta’ and ‘Maji Malguzari Tanks’ are going to be four critically important areas for resource allocation
* A system of measuring tribal development index on annual basis
* ‘Green Bonus’ to scheduled area that conserve forest resources, with bonus 'ring fenced' for local area development
* Regional Development Boards (RDB) to be restructured with CM as chairman
* RDBs to be empowered by entrusting planning, approval, execution & monitoring; with separate regional secretariats
* Rebate in sales tax and reduction in interest on borrowed capital in lagging regions to boost manufacturing activity & attract private investors
* Land used for power transmission to be compensated fairly in terms of annual rent
* Encourage small power plants based on renewable sources
* Directly elected mayor for metropolitan regions with defined functional jurisdiction
* 100% irrigation and power facilities free of cost
* Farmers possessing less than five acres to be given fixed Rs2,000 month per household at least for next three years
* Rs5-10 lakh business loan for dairy farming, horticulture, sericulture, cattle farming, fisheries, SSI etc for rural youth
* If blueprint of balanced development is not properly implemented, sub-state status or statehood of Vidarbha to be considered
TERMS OF REFERENCE
* To decide indicators for estimating imbalance in regional development
* Determine imbalance in development in the context of the state's development average on the basis of latest available data of 2010.
* Direct investment/expenditure of state government & investment in private industrial sector with the help of state & central government
* To decide indicators to be implemented on priority from indicators ascertained
* To suggest measures for removal of imbalance and principles of allocations of development fund
* To suggest measures so backlog will not be created in future and suggest role of development boards
DEPARTURE FROM DANDEKAR COMMITTEE
* Departure from focus on physical inputs and financial allocations alone
* Greater focus on outcomes, monitoring of outcomes, policy & governance reforms
* Primary focus on 'development gap'
* Suggest formula for allocations, so as to reduce formation of backlog in future
* Taking a holistic view on development
CONCEPT OF 'DEVELOPMENT GAP'
* It is a move away from financial backlog to outcome oriented approach to make up the development gap/distance
* An acceleration of growth and development of a lagging region is a complex process, influenced by number of factors
* We therefore focused on addressing the pathology of underdevelopment first then we moved towards the remedial actions
* Shift of paradigm requires new thinking on the development strategy towards lagging regions
WHAT MAKES IT DIFFERENT?
* Concept of ‘floors’ in allocation formulae at sector and regional levels, to avoid lopsided allocation
* Estimation of resource envelope based on conservative assumptions, with measurable intermediate and final targets for all recommendations within 15 years
* Role of centre underlined as a stake holder
* Neat formulae developed in transparent manner but space left for play of participatory and representative democracy