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Aname that Nation trusts
Slowly but sllrely~ it has taken us
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To be a name that the whole nation trusts.
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50 YEARS OF
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THE PERfORMANCE
Our 2003 Exam Results: Four positions secured
by our students in first ten and 39 in first 100 with
overall 162 total selections. As regards the past
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<IIUflA/
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It is a well known fact that Rau's is the most

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STUDY

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SINCE 1953

Learn from the Best .. Join "he Winners.

Contact personally or write for prospectus with a DDfMO for Rs. 50/- favouring
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Not a h rd nllt to C,..cIc any more .

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INDIA 2005
A REFERENCE ANNUAL

REFERENCE
Compiled and edited by

RESEARCH, REFERENCE AND TRAINING DIVISION

PUBLICATIONS DMSION
MINISTRY OF INFORMAnON AND BROADCASTING
GOVERNMENT OF INDIA

2005 (Salca 1926)

!O Research, Reference and Training Division

ISBN: 81-230-1230-6
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Published by the Director, Publications Division.

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Salu t:mporl. - Pablinooo5 Divisioo : .~a (\'oosc, Tilak Marg. New DelhiIIOOOI
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GENERAL STUDIES. ESSAY

INTERVIEW &PUBLIC ADMINISTRATION

BY THE RENOWNED CONSULTANT

G.S. E.ssay
Public Admin.
AIR CONDITIONED CLASSROOM
Contact Director:

Foundation course
A complete course for the
beginners to crack UPSC
at first attempt.

Pre-Cum- Main
Extensive topic wise
coverage with latest
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Enlusive Prelims

environment.
Most experienced Faculty
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&ISc.

A unique to-the- point

Classroom program to
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1M'_IIc~lIld

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meant for office-

IllstalDee Leaning Prolnm

complete solution for those Who are unable to join our
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SAHAY lAS ACADEMY

28 A I J J J1A SARA IITGATE

HAUZ KHAS. NEWDELHI-ll0016

PH- (011) 5545-0428.3092-5658 ;M- 9I1~71

"'... '''.11.1

I~I.'I" II II'" 1'1. ""I", II

"."1

1 . 1..

Q ~ \~'IIISII

Contents
l.

Land and the People

2. National Symbols
.3.

The Polity

4.

Agriculture

5.
6.

Art and Culture

Basic Economic Data .---

7.

Commerce

8.

Communications

9.

Defence

10. Education
11.

Ener,g

.12. Envirorunent
13: Finance
14. Food and CivilS-upplies /
. 15. Health and Family Welfare
16. HOU!iing
17. India and the World
Industry
19:-- Justice and Law

.-1B.

20.
21.
22.
. 23.
24.
25.
26.
27.
28.
29.
30.

~/

1
21
25
60
100
119
135
157
175
197
226
254
276
341
369
403
421
436
483

Water Resources

505
526
561
594
605
672
699

Welfare

723

Youth Affairs and Sports

762
776
898

Labour
Mass Communication
Planning
Rural Development ./
Scientific a~d Technological Development. /
Transpott j

States and Union Territories

Diary ~f National Events
(October 2003 to September 2(04)

Presents the most specialized & totally

dependable package ever designed for:

lAS & IFS

OTANY

Cours. designed after

through analysis of
the emerging trends In
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Stre.. on being ..fair
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maximized.

Highly intelllctive clan

lectur aided by visual
& computer projection.
to reinforce .Impllfled

concepti.

By ABHISHEK K. SINGH

Come, experience an immaculately designed

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country's only dependable name fOT IAS/IFS
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Str... on .Impllfying the

"Cla.sJca'" parts &

ACADEMIC CALENDAR FOR 2005

techniques to score _II

In Piper - 1 of MaIns.

PT Test Series From 20 Feb 05

IFS Condensed Course 5 Apr 15 Jun 05
lAS Main 2005 Course From 21 Jun 05
IFS 2006 Extended Course From 21 Jun 05
Pre + M.'n 2006 From 14 Nov 05
lAS & IFS 2006 foundation: From 1 Oc:f 05

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I.ItHIraI9 I'IYiIlon IftDr

Admission is given to limited number of students on First

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Regular r.... and

Asslgnments to sharpen
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For Information. pleaN vlalt or at!:

-- 811,2nd Floor, Commercial Complex

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evolution 8Itra
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Phones: 01130974645 130974651

927
966

31.General Information!
Appendices

K~'j \~ t\\lm~tat\~t\

1 lakh
10 lakh
1 crore
100 crore

=
=

One hundred thousand

One million
Ten million
One billion

t,...f ..UM- ~",:t ~ H~'lc, p~,\c, 0( Ottt""" Tk., ~U.,

[RA}it(1)~K 3J ~K21

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INDIA'S NO.1
Your Vision Is Our Mission

Dear Students,
IES Academy as 8 team, comprises of the top brains from the country in its R&D
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TIME & QUALITY MANAGEMENT

BACK BONE OF OUR IDEOLOGY

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Old Rajendra Nagar
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Phone: 011-55447337,9312265261,9899166996
22

e-mail: swamias@ahoo.co.in

r------------------------I
In the Anarchy & Chaos of

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Land and the People

INDIA is one of the oldest civilisations in the world with a kaleidoscopic

variety and rich cultural heritage. It has achieved multifaceted socio-economic
progress during the last 57 years of its Independence. India has become selfsufficient in agricultural production and is now the tenth indus~i~!is~d
~untry jn tbt:'_.~()r~d and the ~!~__Tl~tion _to have gone into outer space
to conquer nature for tht:' ~ne~! of the people. It covers an area of
32,87,2631 sq km, extending from the snow-covered Himalayan heights to the
tropical rain forests of the south. As the seventh largest country in the world,
India stands apart from the rest of 'Asia, marked off as it is by mountains
and the sea, which give the country a distinct geographical entity. Bounded
by the Great Himalayas in the north, it stretches southwards and at the Tropic
of Cancer, tapers off into the Indian Ocean between the Bay of Bengal on the
east and the Arabian Sea on the west.
Lying e~~l.Yi!!_th~.Tlorthern hemisp~re, the mainland extends between
latitudes 84~ ~IlQ_ 376'._.north, longitudes 687' and 9725' east and measures
abo~ii14._km_from-~or!h_~I?~~uthbetween -th~' extieme latitudes and about
2,933Jgnfrol11.t~ast to west between the extreme longitudes. It has a land frontier
Of about . 15,206- kID. The total length of the co~HiIw of themamIand;Lal<S1ladweep Islands and Andaman and Nicobar'1SIands, is 7,516.6 kn)..

PHYSICAL BACKGROUND
Countries having a common border with India are Afghanistan and Pakistan
to the north-west, China, Bhutan and Nepal to the north, Myanmar to the
east and Bangladesh to the east of West Bengal. Sri Lanka is separated from
India by a narrow channel of sea formed by the Palk Strait and the Gulf of
Mannar.
PHYSICAL FEATURES

The mainland comprises four regions, namely, the great mountain zone, plains
of the Ganga and the Indus, the desert region and the southern peninsula.
The Himalayas comprise three almost parallel ranges interspersed
with large plateaus and valleys, some of which, like the Kashmir and Kullu
valleys, are fertile, extensive and of great scenic beauty. Some of the highest
peaks in the world are found in these ranges. The high altitudes admit travel
only to a few passes, notably the Jelep La and Nathu La on the main IndoTIbet trade route through the Chumbi Valley, north-east of Darjeeling and
Shipki La in the Satluj valley, north-east of Kalpa (Kinnaur). The mountain
wall extends over a distance of about 2,400 km with a varying depth of 240
to 320 kIn. In the east, between India and Myanmar and India and Bangladesh,
I

Provisional as on 31 March 1982

India 2005

hill ranges are much lower. Garo, Khasi, Jaintia and Naga Hills, running
almost east-west, join thl' chain to Mizo and Rkhine Hills running north-south.
The plains of the Ganga and thl' Indus, about 2,400 km long and 240
to 320 km broad, an' formed by basins of three distinct river systems - the
Indus, the Ganga and the Brahmaputra. They are one of the world's greatest
stretches of flat alluvium and also one of the most densely populated areas
on the earth. Between the Yamuna at Delhi and the Bay of Bengal, nearly
1,600 km away, there is a drop of only 200 metres in elevation.
The desert region can be divided into two parts - the great desert and
the little desert. The great desert extends from the edge of the Rann of Kuchch
beyond the Luni river northward. The whole of the Rajasthan-Sind frontier
runs through this. The little desert extends from the Luni between Jaisalmer
and Jodhpur up to the northern wastes. Between the great and the little deserts
lies a zone of absolutely sterile country, consisting of rocky land cut up by
limestone ridges.
The Peninsular Plateau is marked off from the plains of the Ganga and
tht' Indus by a mass of mountain and hill ranges varying from 460 to
1,220 metres in height. Prominent among these are the Aravalli, Vindhya,
Satpura, Maikala and Ajanta. The Peninsula is flanked on the one side by
the Eastern Ghats where average elevation is about 610 metres and on the
other by the Western Ghal,; where it is generally from 915 to 1,220 metres,
rising in places to over 2,440 metres. Between the Western Ghats and the
Arabian Sea lies a narrow coastal strip, while between Eastern Ghats and the
Bay of Bengal there is a broader coastal area. The southern point of plateau
is formed by the Nilgiri Hills where the Eastern and the Western Ghats meet.
The Cardamom Hills lying beyond may be regarded as a continuation of the
Western Ghats.
GEOLOGICAL STRUCfURE
The geological regions broadly follow the physical features and may be
grouped into three regions: the Himalayas and their associated group of
mountains, the Indo-Ganga Plain and the Peninsular Shield.
The Himalayan mountain belt to the north and the Naga-Lushai
mountain in the east, are the regions of mountain-building movement. Most
of this area, now presenting some of the most magnificent mountain scenery
in the world, was under marine conditions about 600 million years ago. In
a series of mountain-building movements commencing about 70 million years
ago, the sediments and the basement rocks rose to great heights. The
weathering and erosive agencies worked on these to produce the relief seen
today. The Indo-Ganga plains are a great alluvial tract that separates the
Himalayas in the north from the Peninsula in the south.
The Peninsula is a region of relative stability and occasional seismic
disturbances. Highly metamorphosed rocks of the earliest periods, dating back
a.<; far as 380 crore years, occur in the area; the rest being covered by the

Land and the People

coastal-bearing Gondwana formations, lava flows belonging to the Deccan

Trap formation and younger sediments.
RIVER SYSTEMS

The river systems of India can be classified into four groups viz., (i) Himalayan
rivers, (ii) Deccan rivers, (iii) Coastal rivers, and (iv) Rivers of the inland
drainage basin. The Himalayan rivers are formed by melting snow and
glaciers and therefore, continuously flow throughout the year. During the
monsoon months, Himalayas receive very heavy rainfall and rivers swell,
causing frequent floods. The Deccan rivers on tht> other hand are rainfed and
therefore fluctuate in volume. Many of these are non-perennial. The Coastal
streams, especially on the west coast are short in length and have limited
catchment areas. Most of them are non-perennial. The streams of inland
drainage basin of western Rajasthan are few and far between. Most of them
are of an ephemeral character.
The main Himalayan river systems are those of the Indus and the GangaBrahmaputra-Meghna system. The Indus, which is one of the great rivers of
the world, rises near Mansarovar in Tibet and flows through India and
thereafter through Pakistan and finally falls in the Arabian sea near Karachi.
Its important tributaries flowing in Indian territory are the Sutlej (originating
in Tibet), the Beas, the Ravi, the Chenab and the Jhelum. The GangaBrahmaputra-Meghna is another important system of which the principal subbasins are those of Bhagirathi and the AJaknanda, which join at Dev Prayag
to form the Ganga. It traverses through UttaranchaJ, Uttar Pradesh, Bihar and
West Bengal. Below RajmahaJ hills, the Bhagirathi, which used to be the main
course in the past, takes off, while the Padma continues eastward and enters
Bangladesh. The Yamuna, the Rarnganga, the Ghaghra, the Gandak, the Kosi,
the Mahananda and the Sone are the important tributaries of the Ganga.
Rivers Chambal and Betwa are the important sub-tributaries, which join
Yamuna before it meet." the Ganga. The Padma and the Brahmaputra join
inside Bangladesh and continue to flow as the Padma or Ganga. The
Brahmaputra rises in Tibet, where it is known as Tsangpo and runs a long
distance till it crosses over into India in Arunachal Pradesh under the name
of Dihang. Near Passighat, the Debang and Lohit join the river Brahmaputra
and the combined river runs all along the Assam in a narrow valley. It crosses
into Bangladesh downstream of Dhubri.
The principal tributaries of Brahmaputra in India are the 5ubansiri, Jia
Bhareli, Dhansiri, Puthimari, Pagladiya and the Mana!: The Brahmaputra in
Bangladesh receives the flow of Tista, etc., and finally falls into Ganga. The
Barak river, the Head stream of Meghna, rises in the hills in Manipur. The
important tributaries of the river are Makku, Trang, Tuivai, Jiri, Sonai, Rukni,
Katakhal, Dhaleswari, Langachini, Maduva and Jatinga. Barak continues in
Bangladesh till the combined Ganga-Brahmaputra join it near Bhairab Bazar.

In the Deccan region. most of the major river systems flowing generally
in east direction fall into Bay of Bengal. The major east flowing rivers are

India 2005

Godavari, Krishna, Cauwry, Mahanadi, etc. Narmada and Tapti are major
West flowing rivers.
Tht, Godavari in thl' southern Peninsula has the second largest river
basin cOVl'ring 10 pcr cent of the area of India. Next to it is the Krishna basin
in the region, while the Mahanadi has the third largest basin. The basin of
the Narmada in the uplands of tilt' Deccan, flowing to the Arabian Sea, and
of the Kaveri in tht south, falling into the Bay of Bt'ngal are about the same
size, though \>vith different character and shape.
There are numerous coastal rivers, which are comparatively small. While
only handful of such rivers drain into the sea ncar the delta of east cost, there
are as rn,my as hOO such rivers on thl' west coast.
A few rivers in Rajasthan do not drain into the sea. They drain into salt
lakes and get lost in sand with no outlet to sea. Besides these, there are the
desert rivers which flow for somt' distance and are lost in the desert. These
an' Luni and others, Machhu, Rupen, Saraswati, Banas and Ghaggar.
CLIMATE

I
l

Thl' climate of India may be broadly described as tropical monsoon type.

There are four seasons: (i) winter (January-February), (ii)"llot weather summer
(March-May); (iii) rainy south-western monsoon (June-September) and
(iv) post-monsoon, also known as north-east monsoon in the southern
Peninsula (October-December). India's climate is affected by two seasonal
winds - thl' north-east monsoon and the south-west monsoon. The north-cast
monsoon commonly known itS winter monsoon blows from land to sea
whereas south-west monsoon known as summer monsoon blows from sea to
land after crossing the Indian Ocean, the Arabian Sea and the Bay of Bengal.
The south-west monsoon brings most of the rainfall during the year in the
country.)
FLORA

With a wide range of climatic conditions from the torrid to the arctic, India
has a rich and varied vegetation, which only a few countries of comparable
sizto' possess. India can be divided into eight distinct-floristic-regions, namely,
the western Himalayas, the eastern Himalayas, Assam, the Indus plain, the
Ganga plain, the Deccan, Malabar and the Andamans.
The Western Himalayan region extends from Kashmir to Kumaon. Its
temperate zone is rich in forests of chir, pine, other conifers and broad-leaved
temperate trees. Higher up, forests of deodar, blue pine, spruce and silver
fir occur. The alpine zone extends from the upper limit of the temperate zone
of about 4,750 metres or even higher. The characteristic trees of this zone are
high-level silver fir, silver birch and junipers. The eastern Himalayan region
extends from Sikkirn eastwards and embraces Oarjeeling, Kurseong and the
adjacent tract. The temperate zone has forests of oaks, laurels, maples,
rhododendrons, alder and birch. Many conifers, junipers and dwarf willows

Land and the People

also occur here. The Assam region comprises the Brahmaputra and the Surma
valleys with evergreen forests, occasional thick clumps of bamboos and tall
grasses. The Indus plain region comprises the plains of Punjab, western
Rajasthan and northern Gujarat. ft is dry and hot and supports natural
vegetation. The Ganga plain region covers the area which is alluvial plain
and is under cultivation for wheat, sugarcane and rice. Only small areas
support forests of widely differing types. The Deccan region comprises tht~
entire table land of the Indian Peninsula and supports vegetation of various
kinds from scrub jungles to mixed deciduous forests. The Malabar region
covers the excessively humid belt of mountain country parallel to the west
coast of the Peninsula. Besides being rich in forest vegetation, this region
produces important commercial crops, such as coconut, betelnut, pepper,
coffee and tea, rubber and cashewnut. The Andaman region abounds in
evergreen, mangrove, beach and diluvial forests. The Himalayan region
extending from Kashmir to Arunachal Pradesh through Nepal, Sikkim,
Bhutan, Meghalaya and Nagaland and the Deccan Peninsula is rich in
endemic flora, with a large number of plants which are not found elsewhere.
India is rich in flora. Available data place India in the tenth position
in the world and fourth in Asia in plant diversity. From about 70 per cent
geographical area surveyed so far, 47,000 species of plants have been described
by the Botanical Survey of India (BSI), Kolkata. The vascular flora, which
f(;rms the conspicuous vegetation cover, comprises 15,000 species. Of these,
more than 35 per cent is endemic and has so far not been reported anywhere
in tht' world. The flora of the country is being studied by the BSI and its
nine circle/field offices located throughout the country along with certain
universities and research institutions.
Ethno-botanical study deals with the utilisation of plants and plant
products by ethnic races. A scientific study of such plants has been made by
BSI. A number of detailed ethno-botanical explorations have been conducted
in different tribal areas of the country. More than 800 plant species of ethnobotanical interest have been collected and identified at different centres.
Owing to destruction of forests for agricultural, industrial and urban
development, several Indian plants are facing extinction. About 1,336 plant
species are considered vulnerable and endangered. About 20 species of higher
plants are categorised as possibly extinct as these have not been Sighted during
the last 6-10 decades. ~.._E.!!ngs out an inve~~~!L..?_f en~a._r:tg.~d plants in
the form of a publication titled Red Data Book.
FAUNA
The Zoological Survey of India (251), with its headquarters in ~ and
16 regional stations is responsible for surveying the faunal resources of India.
Possessing a tremendous diversity of climate and physical conditions, India
has great variety of fauna numbering 89,451 species. Of these, protista number
2,577, mollusca 5,070, abthropoda 68,389, amphibia 209, mammalia 390,
reptilia 456, members of protochordata 119, pisces 2,546, aves 1,232 and other
invertebrates 8,329.

India 2005

The mammals include the majestic elephant, tht, gaur or Indian bisonth(> largest of existing bovines, the great Indian rhinoceros, the gigantic wild
sheep of the Himalayas, tht swamp deer, thl' thamin spotted deer, "j/~ai, the
four-horned antelope, the Indian antelope or black-buck - the only
representatives of these genera. Among the cats, the tiger and lion are the
most magnificent of all; other splendid creatures such as the clouded leopard,
the snow leopard, the marbled cat, etc., are also found. Many otht'r species
of mammals are remarkable for their beauty, colounng, grace and uniqueness.
Several birds, like pheasants, geesl', ducks, mYllalJs, parakeets, pigeons,
cranes, hornbills and sunbirds inhabit forests and wetlands.
Rivers and lakes harbour crocodiles and ~lwria/s, the latter being the
only representative of crocodilian order in the world. The salt water crocodile
is found along thl' eastern coast and in the Andaman and Nicobar Islands.
A project for breeding crocodiles started in 1974, has been instrumental in
saving the crocodile from extinction.
The great Himalayan range has a very interesting variety of fauna that
includes the wild sheep and goats, markhor, ibex, shrew and tapir. The panda
and the snow leopard are found in the upper reaches of the mounta~.
Depletion of vegetative cover due to expansIOn of agriculture, habitat
destruction, over-exploitation, pollution, introduction of toxic imbalance in
community structure, epidemics, floods, droughts and cyclones, contribute to
the loss of flora and fauna. More than 39 species of mammals, 72 species of
birds, 17 species of reptiles, three species of amphibians, two species of fish
and a large number of butterflies, moth and beetles arc considered vulnerable
and endangered.

DEMOGRAPHIC BACKGROUND
CENSUS
The Census of India 2001, is historic and epoch making being the first census
of the twenty-first century and the third millennium. It reveals benchmark
data on the state of abundant human resources available in the country, their
demography, culture and economic structure at a juncture, which marks a
centennial and millenial transition.
The population enumeration of 2001 census was undertaken during
9-28 February 2001 with a revisional round from 1-5 March 2001. The Census
moment, the referral time at which the snapshot of the population is taken
was 00.00 hours of the 1 March 2001. Until the 1991 Census, the sunrise of
1 March was taken to be the census moment. The houseless population, as
has been the usual practice, was enumerated on the night of 28 February 2001.
POPULATION

India's population as on 1 March 2001 stood lat 1,028 million (532.1 million
males and 496.4 million females). India accounts for a meagre 2.4 per cent

Land and the People

of the world surface area of 135.79 million sq km. Yet, it supports and sustains
a whopping 16.7 per cent of the world population.
The population of India, which at the tum of the twentieth century was
around 238.4 million, increased to r~ach 1,028 million at the dawn of the
twenty-first century. The population of India as recorded at each decennial
census from 1901 has grown steadily except for a decrease during 1911-21.
Decadal growth of population from 1901 is shown in table 1.1.
Table 1.2 gives the selected indicators of population growth in different
States and Union Territories. The per cent decadal growth of population in
the inter-censal period 1991-2001 varies from a low of 9J2.J.!:t1'S..erala to a very
high 64.41 In..N.agaland. Delhi with 46.31 per cent, Chandigarh with 40.33 per
cent aMsikktmwith 32.98 per cent registered very high growth rates. In
addition to Kerala, Tamil Nadu and Andhra Pradesh registered low growth
rates during 1991-2001. The per cent decadal growth rate has declined during
the census decade 1991-2001 as compared to the previous census decade, in
all the States/Union Territories except Haryana, Uttar Pradesh, Bihar, Sikkim,
Nagaland, Manipur, Gujarat, Daman and Diu and Dadra and Nagar Haveli.
The States and Union Territories that have shown increases in per cent decadal
growth together constitute about 32 per cent of India's popUlation.

POPULATION DENSITY
One of the important indices of population concentration is the density of
population. It is defined as the number of persons per sq km. The population
density of India in 2001 was 324 per sq km,.
The density of population was increased in all States and Union
Territories between 1991 and 2001. Among major states, West _~~J}gaLa still
the most thickly yoC.!-!~ with a popUlation density--of 903 in 2001.
Bihar rsnowtI\e second highest densely populated state pushing Kerala to
the third place. Ranking of the States and Union Territories by density is
shown in table 1.3.
~

SEX RATIO
Sex ratio, defined as the number of females per thousand males is an
important social indicator to measure the extent of prevailing equality between
males and females in a society at a given point of time. The sex ratio in the
country had always remained unfavourable to females. It was 972 at the
beginning of the twentieth century and thereafter showed continuous decline
until 1941. The sex ratio from 1901-2001 is given in table '1..4.

LITERACY
For the purpose of census 2001, a person aged seven and above, who can
both ~and write with understanding In any language, is treat~ a~rate.
A person, who can only read but cannot write, is not literate. 'iI\ the censuses
prior to 1991, children below five years of age were necessarily treated as
illiterates.

India 2005

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Land and the People

The provisional results of 2001 reveal that there has been an increase
in literacy in the country. The litt.>racy rate in the country is 64.84 per cent,
75.26 for males and 53.67 for females. The steady improvement in literacy
is apparent from the table 1.6.
Kerala retained its position by being on top with a 90.86 per cent literacy
rate, closely followed by Mizoram (88.80 per cent) and Lakshadweep (86.66
per cent). Bihar with a literacy rate of 47.00 per cent ranks last in the country
preceded by Jharkhand (53.56 per cent) and Jammu and Kashmir (55.52 per
cent). Kerala also occupies the top spot in the country both in male literacy
with 94.24 per cent and female literacy with 87.72 per cent. On the contrary,
Bihar has recorded the lowest literacy rates both in case of males (59.68 per
cent) and females (33.12 per cent). Table 1.5 shows the literacy rate among
persons, male and female in States and UTs, and their ranking.
TABLE 1.2: STATES AND UNION TERRITORIES BY POPULATION SIZE
in

Rank
in 2()()l

State 1
Union territori~
2

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3.

4.
5.
6.
7.
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18.
19.
20.
21.
22.
23.
24.
25.
26.

Uttar Pradesh
Maharashtra
Bihar
West Bengal
Andhra Pradesh
Tamil Nadu
Madhya Pradesh
Rajasthan
Kamataka
Gujarat
Orissa
Kerala
Jharkhand
Assam
Punjab
Haryana
Chhattisgarh
Delhi
Jammu and Kashmir'
Uttaranchal
Himachal Pradesh
Tripura
Meghalaya
Manipur'
Nagaland
Goa

Population
2001

Per cent to total

Population of India
2()OI
1991

Rank
in 1991

In6.197,921

In.16

15,59

96.878,627
82,998,509
RO,176,197
76,210,007

9.42
8.07
7.79

9,33

2
5
3

62.405,679
60,34R,023

7.41
6.07
5.R7

7.86
6.60

56,507,188

5.49

5.20

4
6
7
9

52,850,562
50,671,017
36,804,660

5.14
4.93

5.31
4.88

10

3.58

31,841.374
26,945,829

3.10
2.62

3.74
3.44

12

26,655,528
24,358,99<)

2.59
2.37

2.65
2.40

14
13
]5

21,144,564

2.06
2.03

1.95
2.08'

16

1.35
0.99

1.11
0.93
0.84

20,833,803
13,850,507
10,143,700
8,489,349

7.62
R.04

5.74

2.58

6,077,900

0.83
0.59

0.61

3,199,203

0.31

0.33

2,318,822
2,293,896
1,99(},036

0.23
0.22

0.21
0.22

0.19

0.14

1,347,668

0.13

0.14

'()()()s

11

17
18

19
20
21
22
24
23
25
26

India 2005

10
27.

1,097,968

0.11

0.10

974,345

0.09

0.10

27
211

900,635

0.09

0.08

29
30

30.

Arunachal Pradesh
Pondicherry
Chaadigarh
Mizoram

1188,573

O.IN

0.08

31.

Sikkim

540,1151

0.05

0.05

31

32,

Andaman and Nicobar Islands

356,152

0.03

0.03

32

33,

Dadra and Nagar Haveli

220,490

0.02

0.02

33

34.

Daman and Diu

Lakshadwt'l'p

158,204

0.02

om

34

60,650

om

0.01

35

211.
29.

35.

Notes
1.

India and M,mipur figures are final and include estimated figures for th~ of the three
sub-divisions viz., Mao Maram, Paomata and Purul of Senepati district of Manipur as
population census 2001 in these thn.>e sub-divisions were cancl'1led due to technical and
administrative reason~ although a population ct'nsus was carried out in these sub-division
also as per schedule,

2.

The 1991 Census could not bP held owing to disturbed conditions prevailing in Jammu
and Kashmir. Hence the population figure~ for 1991 of Jammu and Kashmir have been
worked out by 'interpolation' on the basis of 2001 final population.

TABLE 1.3: STATES AND UNION TERRITORIES BY DENSITY

Rank
in 20(JI

Statel
Union territories
2

1.

2.
3
4,

5.
6.
7.
8.
9.
10.
11.
12.
13,
14.
15.
16.
17.
18.
19.
20.
21.
22,
23.
24

Dt>lhi
Chandigarh
Pondicherry
Lakshadweep
Daman and Diu
Wt'St Bengal
Bihar
Kerala
Uttar Pradesh
Punjab
Tamil Nadu
Haryana
Dadra and Nagar Hawli
Goa
Assam
Jharkhand
Maharashtra
Tripura
Andhra Pradesh
Kamataka
Gujarat
Orissa
Madhya Pradesh
R";,,cthAn

20m

1991

Rank
in 1991

9,340
7,900
2,034
1,895
1,413
903
881
819
690
484
480
478
449
364
340
338
315
305
277
276
258
236
196

6,352
5,632
1,683
1,616
907
767
685
749
548
403
429
372
282
316
286
274
257
263
242
235
211
203
158

23

1'9

24

Density

1 ""

2
5
3
4
{,

7
9
8
10
11
12
14

13
15
17
16
]8
19
20
21

22

Land and the People

25.
26.
27.
211.
29.

11

Uttaranchal
Chhattisgarh
Nagaland
Himachal Pradesh
Manipur"
Meghalaya
Jammu and Kashmir
Sikkim
Andaman and Nicobar Islands
Mizoram
Arunachal Pradesh

30.
31.

32.
33.
34.

35.

159
154
120
109

133
130

73
93
82
79

III

103
100
76
43
42

77

57
34
33
10

13

25
26
27
28
30
29
31
32
33
34
35

Notes
Manipur figures include estimated figures for the three sub-divisions, viz., Mao Maram,
Panmata and Purul of Senapti district of Manipur as population census 2001 in these
three sub-divisions were cancelled due to technical and administrative reasons.

TABLE 1.4: SEX RATIO

1901-2001

Census Year

Sex Ratio
(females per 1,000 males)

1901

972

1911

964

1921

955

1931

950

1941

945

1951

946

1961

941

1971

930

1981

934

1991

926

2001

933

Notes:
1.

For 1981. interpolated figures for Assam have been used.

2.

For 1991, interpolated figures based on final population of 2001 census for Jammu
and Kashmir have been used.

3.

India figures for 2001 census are final and exclude those of the three sub-<iivisions,
viz., Mao Mar"m, Paomata and Puru! of Senapati district of Manipur as population
Census 2001 in these three sub-divisions were cancelled due to technical and
administrative reasons although a population census was carried out In these subdivisions also as per schedule.

India 2005

12
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14

India 2005
1951-2001

TABLE 1.6: LITERACY RATE

Census Year

Persons

Malt's

Females

18 ..13

27.16

8.86

1951
1961

28.3

40.40

15.35

J971

34.45

45.96

21.97

1981

43.57

56.38

29.76

1991

52.21

64.13

39.29

2001

64.84

75.26

53.67

Notes :

J.

Literacy rates for 1951, ]961 and 1971 Censuses relates to population aged five years
and above. The rates for the 1981, 1991 and 2001 Censuses relate to the population
aged seven years and above.

2.

TIll' 1981 Literacy rates exclude Assam where the 1981 Census could not be conducted.

3.

The 1991 Literacy rates exclude Jammu and Kashmir where the 1991 Census could not
be conducted due to disturbed conditions.

TABLE 1.7: TOTAL POPULATION AND PERCENTAGE OF

SCHEDULED CASTE AND SCHEDULED TRIBE: 2001 CENSUS
SI,
No.

India/State/
Union Territory

Tot.t!
Population

Scheduled Caste
Population
Perrentagl'
('000)
of total
population

('000)

INDIA'

1,028,610

166,636

Scheduled Tribe
Population
Percentage
('000)
of total
population

16.20

84,326

8.20
10.90

10,144

770

7.59

1.106

6,078

1,502

24.n

245

4.02

24,359

7,029

0.00

Chandigarh

901

158

17.50

0.00

S.

Uttaranchal

8,489

1,517

17.87

256

3.02

6,

Haryana

21,145

4,091

19.35

0.00

7.

Delhi

13,851

2,343

16.92

0.00

I.

Jammu and Kashmir

Himadloll Pradt.'tih

3.

Punjab

4.

8.

Ra,asthan

9.

Uttar Pradesh

10.

Bihar

11.

Sikkim

12.

Arunachal Pradesh

28.85/,

56,507

9,694

17.16

7,098

12.56

166,198

35,148

21.15

108

0.06

62,999

13,049

15.n

758

0.91

541

27

5.02

111

20.60

1,098

0.56

705

64.22

13.

Nagaland

1,990

0.00

1,774

89.15

14.

Manipur'

2,167

60

2.77

741

34.20

15.

Mizoram

889

0.03

839

16.

Tripura

3,199

556

17.37

993

31.05

17.

Meghalaya

2,319

11

0.48

1,993

85.94

18.

Assam

26,656

1,826

6.85

3,309

12,41

'94.46.' /

15

Land and the People

19.

West Bengal

80,176

18,453

23.02

4,407

5.50

20.

Jharkhand

26,946

3,189

11.84

7,087

20.30

21

Orissa

26,805

6,082

16.53

8.145

22.13

22

Chhattisgarh

20,834

2,419

1161

6,617

3176

23.

Madhya Pradesh

60,348

'1,155

15.17

12,233

20.27

24.

Gujarat

50,671

3,593

7.09

7,481

lOb

25.

Daman and Diu

158

3.06

14

8.85

26.

Dadra and Nagar Haveli

220

1.86

137

62.24

27.

Maharashtra

96,879

9,882

10.20

8,577

8.85

5,024

6.59

3,464

28.

Andhra Pradesh

76,210

12,339

16.19

29.

Karnataka

52,851

8,564

16.20

30.

Goa

1,348

24

1.77

6.55
0.04

31.

Lakshadweep

61

(l.OD

57

32.

Kerala

31,841

3,124

9.81

364

1.14

33.

1iunil Nadu

62.406

11.858

19.00

651

1.04

34
35.

Pondicherry
Andaman and Nicobar Islands

974
356

158
0

16.19
0.00

0
29

0.00
1.27

94.51

Note
1.

India and Manipur figures exclude those of the three sub-divi.'lions, viz., Mao Maram,
Paomata and Purul of Senapati district of Manipur as population census 2001 in
these three sub-divisions were cancelled du{' to technical and administrative reasons
although a population census was carried out in these sub-division also 8.<; pM'
schedule.

TABLE 1.8: RURAL AND URBAN POPULATION

Census Year

]90]

1911
1921
1931
1941
1951
1961
1971
198]
1991
2001

Note :

Percentage of
lolal population

Population (Million)
Rural

Urban

Rural

Urban

213
226
223
246
275
299
360
439
524
629
743

26
26
28
33
44
62
79
109
159
218
286

89.2
89.7
88.8
88.0

10.8
10.3
11.2
12.0
13.9
17.3
18.0
19.9
23.3
25.7
27.78

86.1
82.7
82.0
80.1
76.7
74.3
72.2

16

India 2005
2.

Tilt' 1'141 Census could not be held owing to disturbed conditions prevailing in Jammu
and K.lshmir. Hence the population figure. for 1991 of Jammu and Kashmir have been
worked (Jut hv 'mtcrpol,ltion' on the basis of 200] final population.

3.

The 1'1111 census could Itot be held in AS5am. The figures tor 1981 for Assam have been
worked out by interpolation.

TABLE 1.9: GROWTH OF URBANISATION BY CLASS OF TOWN

Population in '000s

l,on,O()(] and aboVl'

1901

1951

1961

1971

1981

1991

2001

6,652

27,1112

4H.511l

61,863

95,952

1,40,067

1,76,722
34,098

II

5o,mll . 'I'!,m

3,011

6,109

8,659

12,lOtl

18,195

23,62<)

III

2(1,l)OO - 49,'I'!9

3,994

'1,745

13.154

17,103

21,584

28,688

41,957

IV

1O,(J,~)

- 19,'19'1

5,2111

8.412

9,934

II,R61

14,543

17,074

22,307

5,()()(] .

9,9'1'!

5,186

7,9113

5,44'1

4,824

5,386

5,650

7,746

VI

Less than S,()()(l

1,572

1,925

629

496

760

663

25,696

61,986

78,343

108,2..'i6

156,420

215,772

283,603

10.84

17.29

17,97

19.91

2..'1.34

25.70

27.81

All c1assse~
Urban population as
pen:entag.. to total
Population 1
Noh':

Excludes figures for J,lmmu ,md Kashmir in 1991 wheT{' 1991 Census was not conducted
owing to disturb,mn's. For comparative purposes, the figures of Jammu and Kashmir have
also bt.'tm ('xcluded for 1901 tn 1981.
Excludes figures for Assam in 1'181 where census of 1981 was not held.
}, Data includes Jammu and Kashmir and Assam.

TABLE ].10: DISTRIBUTION OF VILLAGES

ACCORDING TO POPULATION 2001 CENSUS
SL

States/ UTs

2
Jammu and Kashmir
2.

Lt.'S.G

than

1,000

No.

Himachal Pradesh

1,(J()() to

2,(J()() to

1,999

,\00
4,777

5,000 to i1O,(J()() and Total No,

9 999 I above fof inhabited

'I

;'

3,840

1,546

886

135

10

16,652

660

174

villages,

8
6,417

17,495

3.

Punjab

6,587

3,405

1,987

273

26

4.

Chandigarh

23

5.

Uttaranchal

14,577

752

350

13

15,761

6.

Haryana

2,057

2,091

2,015

69
504

97

6,764

7.

Delhi

19

29

60

26

24

158

8.

RaJasthan

25,555

8,777

4,660

661

100

39,753

12,278

Uttar Pradesh

51,589

27,218

16,573

2,266

296

97,942 v

10.

Bihar'

17,397

10,114

8,578

2,313

630

39,032

11.

Sikkim

281

120

40

450

9,

Land and the People

12.

17
3,708

Arunachal Pradesh

126

26

3,863

13.

Nagaland

799

253

171

50

1,278

14.

Manipur'

1,806

202

157

28

2,199

IS.

Mizoram

598

76

31

707

16.

Tripura

166

186

370

106

28

858

17.

Meghalaya

5,533

185

Assam

16,966

5,439

60
2,495

18.
19.

185

0
19

25,124

WI'S! Bengal'

20,763

8,492

6,819

1,527

354

37,955

20.

lharkhand

23,337

4,173

1,642

174

28

29,354

21

Orissa

3R,126

6,814

180

47,529

22.

Chhattisgarh

14,209

4,IR5

2,404
),264

80

19,744

23.

Madhya Pradesh

37,751

10,434

3,551

362

1<1

52,117

24.

Gujara!

7,337

5,615

4,154

807

153

18,066

25.

Daman and Diu

26.

Dadra and Nagar Haveli

5,782

23

20

15
11,570

28

70

5,R62

1,018

262

41,095

6,915

1,7RR

498 '

26,613

16,245

6,475
(.,378

4,024

703

131

27,481 . /

148

77

96

23

27.

Maharashtra

22,383

28.

Andhra Pradesh

10,937

29.

Karnataka

30.

Goa

.31.

Lakshadweep

32.

Kerala

1O

69

207

1,072

1,364

33.
34.

lamil Nadu
Pondicherry

4,624
7

4,484
HI

4,870
45

1,254
20

168
2

15,400
92

35.

Andaman and
Nicobar Islands

424

.52

23

364,482

129,979

80,414

14,806

ALL INDIA

3,962

347

501

593,&43

Note:
1.

India and Manipur figures exclude those of the three sutKiivisions, viz., Mao Maram,
Paomata and Purul of Senapati district of Manipur as population census 200] in these three
sub-divisions were cancelled due to technical and administrative reasons although a
population census was carried out in these sub-divisions also as per schedule.

2.

Seventeen villages in Bihar and ten villages in West Bengal spread across two sub-districts
and therefore, counted twice.

19

Land and the People

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National Symbols

NATIONAL FLAG

THE National flag is a horizontal tricolour of deep saffron (kesaria) at the

top, white in the middle and dark green at the bottom in equal proportion.
The ratio of width of the flag to its length is t!Yo to three. In thl' centre of
the white band is a navy-blue wheel which represents the chakra. Its design
is that of the wheel which appears on the abacus of the Sarnath Lion Capital
of Ashoka. Its diameter approximates to the width of the white band and it
has 24 spokes. The design of the National Flag was adopted by the
Constituent Assembly of India on 22 July 1947.
Apart from non-statutory instructions issued by the Government from
time to time, display of the National Flag is governed by the provisions of
the Emblems and Names (Prevention of Improper Use) Act, 1950 (No. 12
of 1950) and the Prevention of Insults to National Honour Act, 1971 (No.
69 of 1971). The Flag Code of India, 2002 is an attempt to bring together
al1 such laws, conventions, practices and instructions for the guidance and
benefit of all concerned.
The Flag Code of India, 2002, takes effect from ~ January 2002 and
supersedes the 'Flag Code-lndias' as it existed. As per the provisions of
the Flag Code of India, 2002, there shall be no restriction on the display of
the National Flag by members of general public, private organisations,
educational institutions, etc., except to the extent provided in the Emblems
and Names (Prevention of Improper Use) Act, 1950 and the Prevention of
Insults to National Honour Act, 197] and any other law enacted on the subject.
STATE EMBLEM
The state emblem is an adaptation from the Samath Lion Capital of Ashoka.
In the original, there are four lions, standing back to back, mounted on an
abacus with a frieze carrying sculptures in high relief of an elephant, a
galloping horse, a bull and a lion separated by intervening wheels over a bellshaped lotus. Carved out of a single block of polished sandstone, the Capital
is crowned by the Wheel of the Law (Dhamla Chalcra).
.
In the state emblem, adopted by the Government of India on 26 January
1950, only three lions are visible, the fourth being hidden from view. The
wheel appears in relief in the centre of the abacus with a bull on right and
a horse on left and the outlines of other wheels on extreme right and left.
The bell-shaped lotus has been omitted. The words Satyameva Jayate ,from
Mundaka Upanishad, meaning 'Truth Alone Triumphs', are inscribed below
the abacus in ~1IQg~pt.

India 2005

22
NATIONAL ANTHEM

The song lana-gana-mana, composed originally in Bengali by Rabindranath

Tagore, was adopted in its Hindi v~~_ion by the Constituent Assembly as
the National Anthem of India-C;-~ 24 January 1950. It was first sung on
27 December 1911 at the Calcutta Session of the Indian National Congress.
The complete song consists of five stanzas. The first stanza contains the full
version of the National Anthem:
!ana-galla-marw-adhiltayaka, jaya III.'
Bharata-bhagya-vidflata.
Pu tl jab-S i ndl1-G ujarat-Ma ra tlta
Dravida- Ll tkala- Ba Ilgll
Vi tldh ya- H i nrachllla- Yamu lla-Ganga
Uchchala- laladhi-tarallga.
Tava sllUbha naml' jage,
Tava shublw asisa mange,
Galre tava jaYIl gatfln,

Jana-gana-mallgala-dayakll jaya he
Bharata-bhagya-vidhata.
laya he, jaya Ill', jaya Ill',
!ayll jaya jaya, jaya he!

Playing time of the full version of the national anthem is approximately

52 seconds. A short version consisting of the first and last lines of the stanza
(playing time approximately 20 seconds) is also played on certain occasi~ns.
The following is Tagore's English rendering of the anthem :
Thou art the ruler of the minds of all people,
dispenser of India's destiny.
Thy name rouses the hearts of Punjab, Sind,
Gujarat and Maratha,
Of the Dravida and Orissa and Bengal;
It echoes in the hills of the Vindhyas and Himalayas,

mingles in the music of Jamuna and Ganges and is

chilllted by the waves of the Indian Sea.
They pmy for thy blessings and sing thy praise.
The saving of all people waits in thy hand,
thou dispenser of India's destiny.
Victory, victory, victory to thee.

National Flag

National Emblem

National Symbols

23

NATIONAL SONG
The song Vande Mataram, composed in sanskrit by Bankimchandra Chatterji,
was a source of inspiration to the people in their struggle for freedom. It has
an equal status with Jana-gana-mana. The first political occasion when it was
sung was the 1896 session of the Indian National Congress. The following
is the text of its first stanza

Vande Mataram!
Sujalam, supha/am, malayaja shitalam,
Shasyashyamalam, Mataram!
Shubhrajyotsna pu/akitayaminim,
Phullakusumita drumadala shobhinim,
Suhasinim sumadhura bhashinim,
Sukhadam varadam, Mataram!
The English translation of the stanza rendered by Sri Aurobindo in prose 1
is :
I bow to thee, Mother,
richly-watered, richly-fruited,
cool with the winds of the south,
dark with the crops of the harvests,
The Mother!
Her nights rejoicing in the glory of the moonlight,
her lands clothed beautifully with her trees in flowering bloom,
sweet of laughter, sweet of speech,
The Mother, giver of boons, giver of bliss.
NATIONAL CALENDAR
The national calendar based on the Saka Era, with Clj_aitra as its first month
and a normal year of 365 days was adopted from 22 March 1957 along with
the Gregorian calendar for the following official purposes: (i) Gazette of India,
(ii) news broadcast by All India Radio, (iii) calendars issued by the Government
of India and (iv) Government communications addressed to the members of
the public.
Uates of the national calendar have a permanent correspondence with
dates of the Gregorian calendar, 1 Chaitra falling on 22 March normally and
on 21 March in leap year.

1 As published in Volume Eight of Sri Auroblndo Birth Centenary Library, Popular Edition 1972

24

lndi3 2005

NATIONAL ANIMAL

The magnificent tiger, Panthera tigris is a striped animal. It has a thick yellow
coat of fur with dark stripes. The combination of grace, strength, agility and
enormous power has earned the tiger its pride of place as the national animal
of India. Out of eight races of the species known, the Indian race, the Royal
Bengal Tiger, is found throughout the country except in the north-western
region and also in the neighbouring countries, Nepal, Bhutan and Bangladesh.
To check the dwindling population of tigers in India, 'Project_TIger' was
launched in April 1973. So far, 2? tiger reserves have
established in
the country unaerThr;; project, covering an area of 37,761 sq km.

been

NATIONAL BIRD

The Indian peacock, Pavo cristatus, the national bird of India, is a colourful.
swan-sized bird, with a fan-shaped crest of feathers, a white patch under the
eye and a long, slender neck. The male of the species is more colourful than
the female, with a glistening blut' breast and neck and a spectacular bronzegrt'en train of around 200 elongated feathers. The femalt' is brownish, slightly
smaller than the male and lacks the train. The elaborate courtship dance of
the male, fanning out the tail and preening its feathers is a gorgeous sight.

NATIONAL FLOWER
Lotus (NelumllO Nllcipera Gaertn) is the National Flower of India. It is a
sacred flower and occupies a unique position in the art and mythology of
ancient India and has been an auspicious symbol of Indian culture since time
immemorial.
India is rich in flora. Currently available data place India in the tenth
position in the world and fourth in Asia in plant diversity. From about 70
per cent geographical area surveyed so far, 47,000 species of plants have bt.>en
described by the Botanical Survey of India (B51).

The Polity

~ auu.1MIP'J' ~
\\\\\\\\1\\\\\\11\\\\1\\\111\\1\\\\\\\\\

127574
INDIA, a Union of States, is a Sovereign Socialist Secular Democratic Republic
with a parliamentary system of government. The Republic is governed in
terms of the Constitution, which was ado'p-ted by Constituent Assembly on
26 November 1949 and came into force on 26 January 1950.

---------- -----

The Constitution which envisages parliamentary form of government is

federal in structure with unitary features. The President of India is constitutional
head of executive oltheUnion. Article 74(1) of the Constitution provides that
there shall be a Council of Ministers with the Prime Minister as head to aid
and advise President who shall in exercise of his functions, act in accordance
with such advice. Real executive power thus vests in Council of Ministers
with Prime Minister as head. Council of Ministers is collectively responsible
to the House of the People (Lok Sabha). Similarly, in states, Governor is head
of executive, but it is the Council of Ministers with Chief Minister as head
in whom real executive power vests. Council of Ministers of a state is
collectively responsible to the Legislative Assembly.
The Constitution distributes lea~l!ltive _power between Parliament and
state legislatures and provides for vesting of residual powers in Parliament.
Power to amend the Constitution also vests in Parliament. The Constitution
has provision for independence of judiciary, Com..!rolle!_and Auditor-General,
Public__~rvice_~_?mmissions and CllkLEle.cti.on Commissioner.
.

THE UNION AND ITS TERRITORY

India comprises 2lf States and seven Union Territories. They are: Andhra
Pradesh, Assam, Arunachal Pradesh, Bihar, Chhattisgarh, Goa, Gujarat,
Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram,
Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttaranchal,
Uttar Pradesh and West Bengal. Union Territories are : Andaman and Nicobar
Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi,
Lakshadweep and Pondicherry.
CITIZENSHIP
The Constitution of India provides for a si!ts!e citize~hi_.p for the whole of
India. Every person who was at the commencement of the Constitution
(26 January 1950) domiciled in the territory of India and: (a) who was born
in India; or (b) either of whose parents was born in India; or (c) who has
been ordinarily resident in India for not less than five years became a citizen
of India. The Citizenship Act, 1955, deals with matters relating to acquisition,
determination and termination of Indian citizenship after the commencement
of the Constitution.

26

India 2005

FUNDAMENTAL RIGHTS
'The Constitution offers all citizens, individually and collectively, some basic
freedoms. Thest' are guaranteed in the Constitution in the form of six broad
categories of Fundamental Rights which are justiciable. Article 12 to 12
contained in Part III of the Constitution deal with Fundamental Rights. These
are : (i) right to equality including equality before law, prohibition of
discrimination on grounds of religion, race, caste, sex or place of birth and
equality of opportunity in matters of employment; (ii) right to freedom of
speech and expression; assembly; association or union; movement; residence;
and right to practice any profession or occupation (some of these rights are
subject to security of the State, friendly relations with foreign countries, public
order, decency or morality); (iii) right against exploitation, prohibiting all
forms of forced labour, child labour and traffic in human beings; (iv) right
to freedom of conscience and free profession, practice and propagation of
religion; (v) right of any section of citizens to conserve their culture, language
or script and right of minorities to establish and administer educational
institutions of their choice; and (vi) right to constitutional remedies for
enforcement of Fundamental Rights.

FUNDAMENTAL DUTIES
By the 42nd Amendment of the Constitution, adopted in 1976, Fundamental
Duties of the citizens have also been enumerated. Article 51 'N contained
in Part IV A of the Constitution deals with Fundamental Duties. These enjoin
upon a citizen among other things, to abide by the Constitution, to cherish
and follow noble ideals which inspired India's struggle for freedom, to defend
the country and render national service when called upon to do so and to
promote harmony and spirit of common brotherhood transcending religious,
linguistic and regional or sectional diversities.

DIRECTIVE PRINCIPLES OF STATE POLlCY

The Constitution lays down certain Directive Principles of State Policy which
though n~justiciablel are 'fundamental in _governance of the country' and
it is the duty of the State to apply these principles in making laws.- These
lay down that the State shall strive to promote the welfare of people by
securing and protecting as effectively as it may a social order in which
justice--social, economic and political-shall form in all institutions of
national life. The State shall direct its policy in such a manner as to secure
the right of all men and women to an adequate means of livelihood, equal
pay for equal work and within limits of its ecohomic capacity and development,
to make effective provision for securing the right to work, education and to
public assistance in the event of unemployment, old age, sickness and
disablement or other cases of undeserved want. The State shall also endeavour
to secure to workers a living wage, humane conditions of work, a decent
standard of life and full involvement of workers in management of
industries.

The Polity

27

In the economic sphere, the State is t", direct its policy in such a maImer
as to secure distribution of ownership and control of material resources of
community to subserve the common good and to ensure that operation of
economic system does not result in concentration of wealth and means of
production to common detriment.
Some of the other important directives relate to provision of opportunities
and facilities for children to develop in a healthy manner, free and compulsory
education for all children up to the age of 14; promotion of education and
economic interests of scheduled castes, scheduled tribes and other weaker
sections; organisation of village l1allchayats; separation of judiciary from
executive, promulgation of a uniform civil code for whole country; protection
of national monuments; promotion of justice on a basis of equal opportunity;
provision of free legal aid; protection and improvement of environment and
safeguarding of forests and wildlife of the country and promotion of
international peace and security, just and honourable relations between
nations, respect for international law, treaty obligations and settlement of
international disputes by arbitration.

THE UNION
EXECUTIVE
The Union executive consists of the President, the Vice-President and the
Council of Ministers with the Prime Minister as the head to aid and advise
the President.
PRESIDENT
The President is elected by members of an electoral college consisting of
elected members of both Houses of Parliament and Legislative Assemblies of
the states in accordance with the system of proportional representation by
means of single transferable vote. To secure uniformity among state inter se
as well as parity between the states, as a whole, and the Union, suitable
weightage is given to each vote. The President must be a citizen of India,
not less than 35 years of age and qualified for election as member of the Lok
Sabha. His term of office is five years and he is eligible for re-election. His
remoyal from office is to be in accordance with procedure prescribed in
Article 61 of the Constitution. He may, by writing under his hand addressed
to !Fe Vice-PresidenLresign his office.
.
Executive power of the Union is vested in the President and is exercised
by him either directly or through officers subordinate to him in accordance
with the Constitution. Supreme command of defence forces of the Union also
vests in him. The President summons, prorogues, addresses, sends messages
to Parliament and dissolves the Lok Sab~; promulgates Ordinances at any
time, except when both Houses of Parliament are in session; makes
recommendations for introducing financial and money bill., and gives assent
to bills; grants pardons, reprieves, respites or remission of punishment or

28

India 2005

suspends, remits or commutes sentences in certain caSt's. When there is a

failure of tht, constitutional machinery in " state, Iw can assuml' to himself
all or any of the functions of the govt'rnment of that state. The President can
prod aim emergency in the country if he is satisfied that a grave emergency
exists whereby security of India or any part of its territory is threatened
whether by war or external aggression or armed rebellion.
VICE-PRESIDENT
The Vice-President is elected by members of an electoral college consisting
of members of both Houses of Parliament in accordance with the system of
proportional representation by means of single transferabk vote. He must be
a citizen of India, not less than 35 years of age and eligible for f;:'lection as
a member of the Rajya Sabha. His term of office is five years and he is eligible
for re-tllction. His removal from office is to be in accordance with procedun'
prescribed in Article 67 b.
The Vice-President is cx-(~ffici(l Chairman of the Rajya Sabha and acts
as President when the latter is unable to discharge his functions due to
absence, illness or any other cause or till the elt'ction of a new President (to
be held within six months when a vacancy is caused by dl'ath, resignation
or removal or otherwise of President). While so actin~ he ceases to perform
the function of the Chairman of the Rajya Sabha.
COUNCIL OF MINISTERS
Therl' is a Council of Ministers headed by the Prime Minister to aid and advisl'
the President in exercise of his functions. The Prime Minister is appOinted
by the President who also appoints other ministers on the advice of Prime
Minister. The Council is collectivel res onsible to the Lok Sabh . It is the
duty of the Pri~e . Ister to communicate to the President all decisions of
Council of Ministers relating to administration of affairs of the Union and
proposals for legislation and information relating to them.
The Council of Ministers comprises Ministers who are members of
Cabinet, Ministers of State (independent charge), Ministers of State and
Deputy Ministers.
LEGISLATURE
Legislature of the Union which is called Parliament, consists of President and
two Houses, known as Council of States (Rajya Sabha) and House of the
People (Lok Sabha). Each House has to meet within six months of its previous
sitting. A joint sitting of two Houses can be held in certain cases.

RAJYA SABHA
The Constitution provides that the Rajya Sabha shall consist of 250 members,
of which 12 members shall be nominated by the President from amongst

29

The Polity

persons having special know ledge or practical experience in respect of such

matters as literature, science, art and sodal service; and not more than 238
representatives of the States and of the Union Territories.
Elections to the Rajya Sabha an~ indirect; members representing States
are elected by elected members of legislative assemblies of the States in
accordance with the system of proportional representation by means of the
single transferable vote, and those representing Union Territories are chosen
in such manner as Parliament may by law prescribe. The Rajya Sabha is not
subject to dissolution; one-third of its members retire every second year.
Rajya Sabha, at present, has 245 seats. Of these, 233 members represent
the States and the Union Territories and 12 members are nominated by the
President. The names of members of Rajya Sabha and party affiliation arc
given in Appendices.

LOK SABHA
The Lok Sabha is composed of representatives of people chosen by direct
election on the basis of adult suffrage. The maximum strength of the House
envisaged by the Constitution is now 552 (530 members to represent States,
20 to represent Union Territories and not more than two members of the
Anglo-Indian community to be nominated by the President, if, in his opinion,
that community is not adequately represented in the House). The total elective
membership of the Lok Sabha is distributed among States in such a way that
the ratio between the number of seats allotted to each State and population
of the State is, as far as practicable, the same for all States. The Lok Sabha
at present consists of 545 members. Of these, 530 members are directly elected
from the States and 13 from Union Territories while two are nominated by
the President to represent the Anglo-indian community. Following the
Constitution 84th Amendment Act~~tal numbe~_ .of existing seMs as
allocated to vanous States m the [ok Sabh.~ on the basis of the 1971 census
shall remain unaltered till th;-first census to be taken after tiley-ear -2:026.

-.-------..

...

~. "~.- ~-

.. -.--.-

~-.

_-----

The term of the Lok Sabha, unless dissolved earlier is five years from
the date appointed for its first meeting. However, while a proclamation of
emergency is in operation, this period may be extended by Parliament by law
for a period not exceeding one year at a time and not extending in any case,
beyond a period of six months after the proclamation has ceased to operate.
Fourteen Lok Sabhas have been constituted so far. The term of each Lok Sabha
and its Speaker(s) is given in table 3.1.
The State-wise allocation of seats in the two Houses and the party
position in the Lok Sabha is given in table 3.2. The names of members of
the Fourteenth Lok Sabha, their constituencies and party affiliations are given
in Appendices.

QUALIFICATION FOR MEMBERSHIP OF PARLIAMENT

In order to be chosen a member of Parliament, a person must be a citizen
of India and not less than 30 years of age in the case of Rajya Sabha and

India 2005
not less than 25 ycars of age in the case of Lok Sabha. Additional qualifications
may he prescribed by Parliament by law.
FUNCTIONS AND POWERS OF PARLIAMENT
As in other parliamentary democracies, the Parliament of India has the
cardinal functions of legislation, ov('rseeing of administration, passing of
budget, ventilation of public grievances and discussing various subjects like
development plans, international relations and national policies. The distribution
of powers betwccn the Union and the States, followed in the Constitution,
emphasist,s in many ways thl' general predominance of Parliament in the
legislatiVt' (i(-'Id. Apart from a wide-rangt' of subjects, even in normal times
the Parliament can, under certain circumstances, assume legislative power
with respect to a subject falling within the sphere exclusively reserved for
the States. The Parliament is also vested with powers to impeach the President
and to remove the Judges of Supreme Court and High Courts, the Chief
Eledion Commissioner and the Comptroller and Auditor General in accordance
with the proccdun> laid down in the Constitution.
All legislation requires consent of both the Houses of Parliament. In the
case of money bills, however, the will of the Lok Sabha prevails. Delegated
legislation is also subject to review and control by Parliament. Besides the
power to legislate, the Constitution vests in Parliament the power to initiate
amendment of the Constitution.
PARLIAMENTARY COMMIITEES
The functions of Parliament are not only varied in nature, but considerable
in volume. The time at its disposal is limited. It cannot make very detailed
scrutiny of all legislative and other matters that come up before it. A good
deal of its business is, therefore, transacted in committees.
Both Houses of Parliament have a similar committee structure, with a
few exceptions. Their appointment, terms of office, functions and procedure
of conducting business are also more or less similar and are regulated under
rules made by the two Houses under Article 118(1) of the Constitution.
Broadly, parliamentary committees are of two kinds-standing committees
and ad hoc committees. The former are elected or appointed every year or
periodically and their work goes on, more or less, on a continuous basis. The
latter are appointed on an ad hoc basis as need arises and they cease to exist
as soon as they complete the task assigned to them.

Standillg Committees: Among standing committees, the three financial

committees-Committees on Estimates, Public Accounts, and Public
Ulldertakings-conc;titute a distinct group and they keep an unremitting vigil
over Government expenditure and performance. While members of the Rajya
Sabha are associated with Committees on Public Accounts and Public
Undertakings, members of the Committee on Estimates are drawn entirely
from the Lok Sabha.

The Polity

31

The Estimates Committee reports on 'what economies, improvements in

organisation, efficiency or administrative reform consistent with policy
underlying the estimates' may be effected. It also examines whether the money
is well laid out within limits of the policy implied in the estimates and
suggests the form in which estimates shall be presented to Parliament. The
Public Accounts Committee scrutinises appropriation and finance accounts of
Government and reports of the Comptroller and Auditor-General. It ensures
that public money is spent in accordance with Parliament's decision and calls
attention to cases of waste, extravagance, loss or nugatory expenditure. The
Committee on Public Undertakings examines reports of the Comptroller and
Auditor-General, if any. It also examines whether public undertakings are
being run efficiently and managed in accordance with sound business
principles and prudent commercial practices.
Besides these three financial committees, the Rules Committee of the Lok
Sabha recommended setting-up of 17 Department Related Standing
Committees. Accordingly, 17 Department Related Standing Committees were
set up on 8 April 1993. In July 2004, rules were amended to provide for the
constitution of seven more such committees. The functions of these Committees
are: (a) to consider the Demands for Grants of various ministries/ departments
of Government of India and make reports to the Houses; (b) to examine such
Bills as are referred to the Committee by the Chairman, Rajya Sabha or the
Speaker, Lok Sabha, as the case may be, and make reports thereon; (c) to
consider Annual Reports of ministries/ departments and make reports thereon;
and (d) to consider policy documents presented to the Houses, if referred to
the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as
the case may be, and make reports thereon.
Other standing committees in each House, divided in terms of their
functions, are (i) Committees to Inquire: (a) Committee on Petitions examines
petitions on bills and on matters of general public interest and also entertains
representations on matters concerning Central subjects; and (b) Committee of
Privileges examines any question of privilege referred to it by the House or
Speaker / Chairman; (ii) Committees to. Scrutinise: (a) Committee on
Government Assurances keeps track of all assurances, promises, undertakings,
etc., given by ministers in the House and pursues them till they are
implemented; (b) Committee on Subordinate Legislation scrutinises and
reports to the House whether the power to make regulations, I1lles, sub-rules,
bye-laws, etc., conferred by the Constitution or Statutes is being properly
exercised by the delegated authorities: and (c) Committee on Papers Laid on
the Table examines all papers laid on the table of the House by ministers,
other than statutory notifications and orders which come within the purview
of the Committee on Subordinate Legislation, to see whether there has been
compliance with provisions of the Constitution. Act, rule or regulation under
which the paper has been laid; (ill) Committees relating to the day-to-day
business of the House: (a) Business Advisory Committee recommends

32

India 2005

allocation of time for items of Government and other business to be brought

before the Houses; (b) Committee on Private Members' Bills and Resolutions
of the Lok Sabha classifies and allocates time to Bills introduced by private
membt,rs, recommends allocation of time for discussion on private members'
resolutions and examines Constitution amendment bills before their introduction
by private members in the Lok Sabha. The Rajya Sabha does not have such
a committee. It is the Business Advisory Committee of that Houst, which
recommends allocation of time for discussion on stage or stages of private
members' bills and resolutions; (c) Rules Committee considers matters of
procedure and conduct of business in the House and recommends amendments
or additions to the Rules; and (d) Committee on Absence of Members from
the Sittings of the House of the Lok Sabha considers all applications from
members for leave or absence from sittings of the House. There is no such
committee in the Rajya Sabha. Applications from members for leave or absence
are considered by the House itself; (iv) Committee on the Welfare of Scheduled
Castes and Scheduled Tribes, on which members from both Houses serve,
considers all matters relating to welfare of scheduled castes and scheduled
tribes which come within the purview of the Union Government and keeps
a watch whether constitutional safeguards in respect of these classes are
properly implemented; (v) Committees concerned with provision of facilities
to members: (a) General Purposes Committee considers and advises Speaker /
Chairman on matters concerning affairs of the House, which do not
appropriately fall within the purview of any other parliamentary committee;
and (b) House Committee deals with residential accommodation and other
amenities for members; (vi) Joint Committee em Salaries and Allowances of
Members of Parliament, constituted under the Salary, Allowances and Pension
of Members of Parliament Act, 1954, apart from framing rules for regulating
payment of salary, allowances and pension to Members of Parliament, also
frames rules in respect of amenities like medical, housing, telephone, postal,
constituency and secretarial facility; (vii) Joint Committee em Offices of Profit
examines the composition and character of committees and other bodies
appointed by Central and State governments and Union Territory
administrations and recommends what offices ought to or ought not to
disqualify a person for being chosen as a member of either House of
Parliament; (viii) The Library Committee consisting of members from both
Houses, considers matters concerning the Library of Parliament; (ix) On 29
April 1997, a Committee on Empowennent of Women with members from
both the Houses was constituted with a view to securing, among other things,
status, dignity and equality for women in all fields; (x) On 4 March 1997,
the Ethics Committee of the Rajya Sabha was constituted. The Ethics
Committee of the Lok Sabha was constituted on 16 May 2000.

Ad hoc Committees : Such committees may be broadly classified under

two heads (a) committees which are constituted from time to time, either by
two Houses on a motion adopted in that behalf or by Speaker/Chairman to
inquire into and report on specific subjects, (e.g., Committees on the Conduct
of certain Members during President's Address, Committees on Draft FiveYear Plans, Railway Convention Committee, Committee on Members of

The Polity

33

Parliament Local Area Development Scheme, Joint Committee on Bofors

Contracts, Joint Committee (m Fertilizer Pricing, Joint Committee to enquirt
into irregularities in securities and banking transactions, Joint Committee on
Stock Market Scam, Joint Committees on Security in Parliament Complex,
Committee on Pr011ision of Computers for Members of Parliament, Offices (~f
Political Parties and Officers of the Lok Sabha Secretariat; Committee on Food
Management ill Parliament House Complex; Committee on Installation of
Portraits/Statues of National Leaders and Parliamentarians in Parliament
House Complex, etc.) arid (b) Select or Joint Committees on Bills which are
appointed to consider and report on a particular bill. These committees are
distinguishable from other ad hoc committees inasmuch as they are concerned
with bills and the procedure to be followed by them as laid down in the Rules
of Procedure and Directions by the Speaker / Chairman.
LEADERS OF OPPOSITION IN PARLIAMENT
In keeping with their important role, the Leaders of Opposition in the Rajya
Sabha and the Lok Sabha are accorded statutory recognition. Salary and other
suitable facilities are extended to them through a separate legislation brought
into force on 1 November 1977.
GOVERNMENT BUSINESS IN PARLIAMENT
The Minister of Parliamentary Affairs is entrusted with the responsibility of
coordinating, planning and arranging Government Business in both Houses
of Parliament. In the discharge of this function, he is assisted by his Ministers
of State. For this purpose, the Ministry works under the overall direction of
Cabinet Committee on Parliamentary Affairs. The Minister also keeps close
and constant cOlltact with the presiding officers, the leaders as well as chief
whips and whips of various parties and groups in both Houses of Parliament.
During 2003, 56 Bills were passed by both Houses of Parliament.
CONSULTATIVE COMMI1TEES
The Ministry of Parliamentary Affairs constitutes consultative committees of
Members of Parliament attached to various Ministries and arranges meetings
thereof. The Minister / Minister of State in-charge of the Ministry concerned
acts as the Chairman of the Consultative Committee of that Ministry.
The main purpose of these Committees is to provide a forum for informal
discussions between the Government and Members of Parliam~nt on policies
and programmes of the Government and the manner of their implementation.
Meetings of these Committees are held both during the session and intersession periods of Parliament. Besides this, informal consultative committees
of the Nine Railway Zones are also constituted and their meetings arranged
during the session periods.
Further, before dissolution of 13th Lok Sabha, there were 30 Consultative
Committees for various Ministries/Departments and total number of meetings
of these Committees held during 2003 were 135.

India 2005

34

NOMINATION OF MEMBERS OF PARLIAMENT ON GOVERNMENT

COMMITIEESIBODIES
The Minister of Parliamentary Affairs nominates Members of Parliament on
committees, councils, boards and commissions, etc., set-up by the Government
in the various Ministries. The Members are nominated on such bodies keeping
in view their special interest and aptitude in the subject.
YOUTH PARLIAMENT COMPETITION
In order to develop democratic ethos in the younger generation the Ministry
conducts Youth Parliament Competitions in various categories of schools and
colleges/universities. The Youth Parliament Scheme was first introduced in
the schools in Delhi in 1966-67. Kendriya Vidyalayas located in and arowld
Delhi were incorporated into the ongoing scheme for Delhi schools in 1978.
Subsequently, a separate scheme of Youth Parliament for Kendriya Vidyalayas
at the National Level was launched in 1988. Similarly, in 1997-98 two new
Youth Parliament Schemes at the national level, one for Jawahar Navodaya
Vidyalayas and the other for Universities/Colleges were launched.
During 2003-04, the 38th Youth Parliament Competition for Delhi schools
was completed and 67 schools participated. The 16th National Youth Parliament
for Kendriya Vidyalayas was held and 90 Kendriya Vidyalayas participated.
The 7th National Youth Parliament Competition for Jawahar Navodaya
Vidyalayas is in progress. The Sixth National Youth Parliament Competition
for Universities/Colleges was also organised and 41 Universities/Colleges
participated. Orientation Courses for holding the Competitions during 200405 has already been finalised and are in progress.

OTHER

PARL~ENTARY

MATTERS

ALL INDIA WHIPS' CONFERENCE

The Ministry of Parliamentary Affairs, Government of India has been
organising All India Whips' Conference from time to time, with the purpose
of establishing suitable links amongst the whips of various political parties
at the Centre and the States who are concerned with the practical working
of the legislatures to discuss matters of common interest and to evolve high
standards to strengthen the institution of Parliamentary democracy. The
Twelfth All India Whips' Conference was held in Srinagar, Jammu and
Kashmir in 1997.
MATIERS UNDER RULE 377 AND SPECIAL MENTIONS
The Ministry of Parliamentary Affairs takes follow-up action on matters raised
under Rule 377 of the Rules of Procedure and Conduct of Business in Lok
Sabha and by way of Special Mentions in Rajya Sabha. Also, after 'Question
Hour' in both Houses of Parliament, Members raise matters of urgent public
importance. Though it is not mandatory, Ministers sometimes react to the
points made by the Members. When the concerned Ministers are not present
the Minister of Parliamentary Affairs assures the House or the individual
Members that their sentiments would be conveyed to the concerned
Ministers.

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35

IMPLEMENTATION OF ASSURANCES
The Ministry culls out assurances, promises, undertakings, etc., given by
Ministers in both Houses of Parliament, from the daily proceedings and
forwards them to the concerned Ministries/Departments for implementation.
Statements showing action taken by the Government in implementation of
the assurances, after due scrutiny of the implementation reports received from
the various Ministries / Departments concerned, are laid periodically on the
table of the Houses by Minister / Minister of State for Parliamentary Affairs.

ADMINISTRATIVE SET-UP
The Government of India (Allocation of Business) Rules, 1961 are made by
the President of India under Article 77 of the Constitution for the allocation
of business of the Government of India. The Ministries/Departments of the
Government are created by the President on the advice of the Prime Minister
under these Rules. The business of the Government are transacted in the
Ministries/Departments, Secretariats and offices (referred to as 'Department')
as per the distribution of subjects specified in these Rules. Each of the Ministry
(ies) is assigned to a Minister by the President on the advice of the Prime
Minister. Each department is generally under the charge of a Secretary to assist
the Minister on policy matters and general administration.
CABINET SECRETARIAT
The Cabinet Secretariat is under the direct charge of the Prime Minister. The
administrative head of the Secretariat is the Cabinet Secretary who is also the
ex-officio Chairman of the Civil Services Board. In the Government of India
(Allocation of Business) Rules, 1961 'Cabinet Secretariat' finds a place in the
First Schedule to the Rules. The subjects allotted to this Secretariat are: (i)
Secretarial assistance to Cabinet and Cabinet Committees; and (ii) Rules of
Business.
The Cabinet Secretariat is responsible for the administration of the
Government of India (Transaction of Business) Rules, 1961 and the Government
of India (Allocation of Business) Rules 1961, facilitating smooth transaction
of business in Ministries/Departments of the Government by ensuring
adherence to these rules. The Secretariat assists in decision-making in
Government by ensuring Inter-Ministerial coordination, ironing out differences
amongst Ministries/Departments and evolving consensus through the
instrumentality of the standing and ad hoc Committees of Secretaries. Through
this mechanism, new policy initiatives are also promoted.
The Cabinet Secretariat ensures that the President, the Vice-President and
Ministers are kept informed of the major activities of all Ministries/Departments
by means of monthly summary of their activities. Management of major crisis
situations in the country and coordinating activities of various Ministries in
such a situation is also one of the functions of the Cabinet Secretariat.
The Cabinet Secretariat is seen as a useful mechanism by the departments
for promoting inter-Ministerial coordination since the Cabinet Secretary is also
the head of the civil services. The Secretaries felt it necessary to keep the

36

India 2005

Cabinet StcTltary informed of developments from time to time. The Tran...action

of Business I{ules also Tl'quire them to keep the Cabinet Secretary informed
spt'cially if there arc any departurt's from these rules.
NATIONAL AUTHORITY, CHEMICAL WEAPONS CONVENTION
National Authority, Chemical Weapons Convention (CWe) was set up by a
resolution of Cabinet Secrt'tariat dated 5 May 1997 to fulfil the obligations
enunciated in the Chemical Weapons Convention initially signed by 130
countries in a conference which mncluded on 14 January 1993 for the purpose
prohibiting of tht, dl'velopment, production, execution, transfer, use and
stockpiling of all chemical weapons by Member-States is a non-discriminatory
process. To fulfil its obligations, each State Party has to designate or establish
a National Authority to serVt' as the national focal point for effective liaison
with Organisation for Prohibition of the Chemical Weapons (OPCW) and other
Statl' Partit's and hence the NA, cwe under the administrative control of the
Cabinet Secretariat was set-up.
A high-level steering committct' under the Chairmanship of the Cabinet
Secretary with Secretary (Chemical and Petrochemicals), Foreign Secretary,
Secretary, Defenc(' Research and Dt:'velopment, Defence Secretary and Chairman,
National Authority as its other members would oversee the functions of tht'
National Authority. The NA, CWC is responsible for implementation of CWC
Act, liaison with ewe imd other State Parties, Collection of data fulfilling
of declaration obligations, negotiating facility agreements, coordinating OPCW
inspections, providing appropriate facilities for training national inspectors
and industry personnel, ensuring protection of confidential business
information, checking declarations for consistency, accuracy and completeness,
registration of entitlt'S engaged in activities related to CWC, etc.
MINISTRIESIDEPARTMENTS OF THE GOVERNMENT
The Government consists of a number of Ministries/Departments, number
and character varying from time to time on factors such as volume of work
importance attached to certain items, changes of orientation, political expediency,
etc. On 15 August 1947, the number of Ministries at the Centre was 18.

LIST OF THE MINISTRIESIDEPARTMENTS (as on 25.5.20(4)

1. Ministry of Agriculture (Krishi Mantralaya)
(i)

Department of Agriculture and Cooperation

(Krishi allr Sahkarita Vibhag)

(ii)

Department of Agricultural Research and Education

(Krishi Anllsandhan aur Shiksha Vibhag)

(iii) Department of Animal Husbandry and Dairying

(Pashupalan aur Dairy Vibhag)

2. Ministry of Agro and Rural Industries (Krishi Evam Gramin Udyog

Mantralaya)

37

The Polity

3. Ministry of Chemicals and Fertilizers (Rasayan aUT UnlaTak MantTalaya)

(i)

Department of Chemicals and Petro-Chemicals

fRasayall

(ii)

IlUI'

Pctro-Rasayall

Vibhag)

Department of Fertilizers fUn'arak v'ibhag)

4. Ministry of Civil Aviation (Nagar Vimanan Mantralaya)

5. Ministry of Coal and Mines (Koyala aUT Khan MantTalaya)
(i)

Dt'partment of Coal (Koyala Vibhllg)

(ii)

Department of Mifll's (Kltllll Vibhag)

6. Ministry of Commerce and Industry (Vanijya aliT Udyog Mantralaya)

(i)

(ii)

Department of Commerce fVanijya Vil,hog)

Department of Industrial Policy and Promotion
(Alldyogik Niti aur San)1JardhllJ1 Vihhag)

7.

Ministry of Communications and Information Technology (SanchaT

aUT Soochana PTaudyogik-i Mantralaya)
(i)

Department of Telecommunications (Doorsanchar Vibhag!

(ii) Department of Post (Dak Vibhllg)
(iii) Department of Information Technology
(Sooc/rana fJratldyogiki

Vibhag)

8.

Ministry of Culture (Sanskriti Man tTa laya )

9.

Ministry of Defence (Raksha MantTalaya)

(i)

Department of Defence (Raksha Vibhag)

(ii)

Department of Defence Production and Supplies

fRaksha Utpadan aur Poorti Vibhag)

(iii) Department of Defence Research and Development

(Raksha AnU$andhan aur Vikas Vibhag)

10. Ministry of Environment and Forests (ParyallaTan aUT Van MantTalaya)

11. Ministry of External Affairs (Videsh Mantralaya)
12. Ministry of Finance (Vitta Mantralaya>
(i)

Department of Economic Affairs (Arthik KarYIl Vibhag)

(ii)

Department of Expendi'ture (Vyaya Vibhag)

(iii) Department of RevenuE' (Rajaswa Vibhag)

(iv) Department of Disinvestment Winivesh Vibhag)

13. Ministry of Company Affairs (Company Karya Mlmtraiya)
14. Ministry of Consumer Affairs, Food and Public Distribution
(Ul'bhokta Mamie, Khadya aur Sarvajanik Vitaran Mantralaya)
(i)

Department of Consumer Affairs

(Uphhokta MamIe Vibhag)

38

India 2005
(ii)

Department of Food and Public Distribution

(Khadya aur Sarvajanik Vitaran Vibhag)

15. Ministry of Food Processing Industries

(Khadya PTasanskaran Udyog Mantralaya)
lb. Ministry of Health and Family Welfare

(Swasthya aUT ParillaT Kalyan Mantralaya)

(i)

Department of Health (SU'asthya Vibhag)

(ii)

Department of Family Welfare (Parivar Kalyan Vibhag)

Department of Ayurveda, Yoga-Naturopathy, Unani, Siddha and

Homoeopathy
(Ayurvcda, Yoga-Prakritik Chikitsa Paddhati, Unani, Siddha aur
Homoeopathy Vibhag)
17. Ministry of Heavy Industries and Public Enterprises
(Bhari Udyog aUT Lok Udyam Mantralaya)
(iii)

(i)

Department of Heavy Industries mhari Udyog Vibhag)

(ii)

Department of Public Enterprises (Lak Udyam Vibhag)

18. Ministry of Home Affairs (Grih Mantralaya)

(i) Department of Internal St.'CUrity
(Antarik Suraksha Vibhag)
(ii)

Department of States (Rajya Vibhag)

(iii) Department of Official Language (Raj Bhasha Vibhag)

(iv) Department of Home (Grih Vibhag)
(v)

Department of Jammu and Kashmir Affairs

(fammu tatha Kashmir Vibhag)

19. Ministry of Human Resource Development

(Manav Sansadhan Vikas Mantralaya)
(i)

Department of Elementary Education and Literacy

(Prarambhik Shiksha aur Saksharta Vibhag)

(ii)

Department of Secondary Education and Higher Education

(Madhyamik aur Uchchatar Shiksha Vibhag)

(iii) Department of Women and Child Development

(Mahila aur Bal

Vika.~

Vibhag)

20. Ministry of Information and Broadcasting

(SoochlJna aUT PrasarlJn Mllntrlllaya)
21. Ministry of Labour (Shram MllntrlJ14YIJ)
22. Ministry of Law and Justice
(Vidhi Ilur Nytlya MllntriJlaYIl)
(i)

Department of Legal Affairs (Vidhi Karya Vibhag)

(ii)

Legislative Department (Vidhayee VibJuzg)

The Polity
(iii) Department of Justice

39

(Nyaya Vibhag)

23. Ministry of Non-Conventional Energy Sources

(Aparamparik Dorya Srota Mantra14ya)
24. Ministry of Non-Resident Indians Affairs (Apravasi Bharatiyon Kt'
Mamalon Ka Mantralya)

25. Ministry of Parliamentary Affairs (Sanslldiya KIIrya Mllntndllya)

26. Ministry of Personnel, Public Grievances and Pensions
(Karmik Lok Shikllyat tlltha Pension Mantra14ya)
(i)

Dt.'Partment of Personnel and Training

(Karmik aur PTashikshan Vibhag)

(ii)

Department of Administrative Reforms and Public Grievances

(Prashasanik Sudhar aur Lok Shikayat Vibhag)

(iii) Department of Pensions and Pensioners' Welfare

(Pension aur Pension Bhogi Kalyan Vibhag)

27. Ministry of Petroleum and Natural Gas

(Petroleum aur Prakritik Gas Mantralaya)

28. Ministry of Planning (Yojana Mantralaya)
29. Ministry of Power (Vidyut Mantralaya)
30. Ministry of Railways (Rail Mantraillya)
31. Ministry of Road Transport and Highways (S4rak Parivahan aur Raj

Marg Mantralaya)
32. Ministry of Rural Development (Gram;n Viklls Mllntralaya)
(i)

Department of Rural Development

(Gramin Vikils Vibhag)

(ii)

Department of Land Resources

(Bhumi Sansadhan Vibhag)

(iii) Department of Drinking Water Supply

(Peya Jal Poorti Vibhag)

33. Ministry of Science and Technology (Vigyan aur Pnaudyogiki
Mantra14ya)
(i)

Department of Science and Technology

(Vigyan aUT Praudyogiki Vibhag)

(ii)

Department of Scientific and Industrial Researdl

(Vigyan aUT Audyogik Anusandhan Vibhag)

(iii) Department of Bio-Technology (Biotechnology Vibhag)

34. Ministry of Small Scale Industries (lAghu Udyog Mtmtndaya)

35. Ministry of Statistics and Programme Implementation
(Sankhyiki IIU' KIIryakram KtnyfIrmflylln MflntnJlllya)
36. Ministry of Shipping (pot PlIri"Dflhan MtmtnJlIIYfl)

India 2005

40

37. Ministry of Steel (lspat MantTalaya)

38. Ministry of Textiles (VastTa MantTalaya)

39. Ministry of Tourism (Paryatlln MantTalaya)

40. Ministry of Tribal Affairs (Janjati Karya MantTalaya)

41. Ministry of Urban Development (Shahari Vikas MantTalaya)

42. Ministry of Urban Employment and Poverty Alleviation

(Shahari Rozgar aur Caribi Upshaman MantTalaya)

43. Ministry of Water Resources (lal Sansadhan Mantralaya)
44. Ministry of Social Justice and Empowerment

(Samajik Nyaya aur Adhikarita Mantralaya)

45. Ministry of Youth Affairs and Sports (yut'a Karyakram aur Knei

Mantralaya)
46. Department of Atomic Energy (Pannanu Dorja Vibhag)
47. Department of Ocean Development (Mahasagar Vikas Vibhag)

48. Department of Space (Antariksh Vibhag)

49. Cabinet Secretariat (Mantrimandal Sachillalaya>
50. President's Secretariat (RashtTapati Sachit,alaya)
51. Prime Minister's Office (Pradhan Mantri Karyalaya)
52. Planning Commission (Yojana Ayog)
53. Department of Development of North-Eastern Region

(Uttar Poort'; KshetTa Vikas Vibhag)

PUBLIC SERVICES
ALL INDIA SERVICES
Prior to Independence, the Indian Civil Service (ICS) was the senior most
amongst the Services of the Crown in India. Besides the ICS, there was also the
Indian Police Service. After Independence, it was felt that though the ICS was
a legacy of the imperial period there was need for the All India Services for
maintaining the unity, integrity and stability of the nation. Accordingly, a
provision was made in Article 312 of the Constitution for creation of one or
mo~ Services ~!.!l-~ th~__ g_ntoii-- and $!_a_!~. The Indian
Administrative Service and The Indian Police Service are deemed to be
constituted by the Parliament in terms of Article 312 of the Constitution. After
the promulgation of the Constitution, a new All India Service, namely, The
Indian Forest Service, was created in 1966. A common unique feature of the
All India Services is that the members of these services are recruited by the
Centre but their services are placed under various State cadres and they have
the liability to serve both under the State and under the Centre. This aspect of
the All India Services strengthens the unitary character of the Indian federation.

The Polity

41

Of tht> thrt..>t.' All India Services, namely, the Indian Administrative

Service (lAS), the Indian Police Service (IPS) and the Indian Forest Service
(IFS), the Ministry of Personnel, Public Grievances and Pensions is the cadre
controlling authority for the lAS. The recruitment to all the three services is
made by the UPSC. These officers are recruited and trained by the Central
Government and then allotted to different State cadres. There art' now 24 State
cadres including three Joint cadf('s, namely, (i) Assam and Meghalaya,
(ii) Manipur and Tripura and (iiD Arunachal Pradesh, Goa, Mizoram and
the Union Territories (AGMUT).
CENTRAL SECRETARIAT SERVICES

The Central Secretariat has three services, namely, (i) Central Secretariat
Services (CSS), (ii) Central Secretariat Stenographers' Services (CSSS) and
(iii) the Central Secretariat Clerical Service (CSCS). The Section Officers'
Grade and Assistants' Grade of CSS, Steno Grade 'D' 'C, 'A' and '8' (merged)
of CSSS and LDC and UDC are decentralised. The grades of Principal Private
Secretary and Senior Principal Private Secretary of CSSS and selection grade,
and Grade 1 of CSS are centralised. Appointments and promotions in the
Centralised Grades are made on all secretariat basis. In respect of the
decentralised grades, Department of Personnel and Training monitors and
assesses the overall requirements of different cadres for fixing zones of
promotion against the vacancies in seniority quota and arranges centralised
recruitment against direct recruitment and departmental examination quota
vacancies through open competitive and departmental examination.
Pursuant to the recommendation of the Parliamentary Standing Committee
on Home Affairs, the Government set-up a committee on the Cadre
Restructuring of CSS in February 2001. The committee submitted its Report in
February 2002, making several recommended actions. The Government after
careful considerations has taken several decisions in October 2003 for improving
the career prospects of the CSS personnel.
UNION PUBLIC SERVICE COMMISSION

The Constitution provides for an independent body known as Union Public

Service Commission (UPSC) for recruitment to Group 'A' and Group '8'
Gazetted posts under Central Government and for advice in various service
matters. The Chairman and ~~!!!J~r~Lthe Commission are appointed by the
President for tenutt_ of six years,. or till they attain the age of 65 years,
whichever is earlier. To ensure independence, members who were at the
service of Government at the time of appointment are deemed to have retired
from Government service on their appointment in the Commission. The
Chairman and members are aL"o not eligible for further employment under the
Government. They cannot be removed except for the reasons and in the
manner providt..>d for in the Constitution.
STAFF SELECTION COMMISSION

Staff Selection Commission initially known as Subordinate Services Commission

was set up on 1 July 1976. It has been entrusted with the work of making
recruitment to (i) all non-gezetted Group 'D' posts in the various Ministries/

42

India 2005

Departments of the Government and their Attached and Subordinate Offices

which are in the pay scales of Rs 6,500-10,500 and (ii) all non-technical Group
'C' posts in the various Ministries/Departments of the Government and their
Attached and Subordinate Offices, except those posts which are specifically
exempted from the purview of the Staff Selection Commission. The Commission
is an attached office of the Department of Personnel and Training and
comprises of a Chairman, two Members and Secretary-cum-Controller of
Examinations. The tenure of Chairman/Members is for five years or till they
attain the age of 62 years, whichever is earlier. The Commission's headquarters
and the office of its Northern Region are in New Delhi. The offices of Central,
Wesh.>m, Eastern, North-Eastern, Southern and Kamataka-Kerala region are at
Allahabad, Mumbai, Kolkata, Guwahati, Chennai and Bangalore respectively.
Its sub-regional offices of Madhya Pradesh-Chhattisgarh region and NorthWestern region are at Raipur and Chandigarh respectively.

OFFICIAL LANGUAGE-CONSTITUTIONALIST ATUTORY

PROVISIONS
Article ~3. (1) of the Constitution provides that Hindi in Dellanagari script
shall be the Official Language of the Union. Article-343(2) also provided for
continuing the use of English in official work of the Union for a period of 15
years (i.e., up to 25 January 1965) from the date of commencement of the
Constitution. Article 343(3) empowered the parliament to provide by law for
continued use of English for official purposes even after 25 January 1965.
Accordingly, section 3(2) of the Official Languages Act, 1963 (amended in
1967) provides for continuing the use of English in official work even after 25
January 1965. The Act also lays down that both Hindi and English shall
compulsorily be used for certain specified purposes such as Resolution."
General Orders, Rules, Notifications, Administrative and other Reports, Press
Communiques; Administrative and other Reports and Official Papers to be
laid before a House or the Houses of Parliament; Contracts, Agreements,
Licences, Permits, Tender Notices and Forms of Tender, etc.
In 1976, Official Language Rules were framed under the provisions of
section 8(1) of the Official Languages Act, 1963. Its salient features are as
under: (i) they apply to all Central Government Offices, including any office
of a Commission, Committee or Tribunal appointed by the Central Government
and Corporation or Company owned or controlled by it. (ii) Communications
from a Central Government Office to State/Union Territories or to any person
in Region "A" comprising the States of Uttar Pradesh, Uttaranchal, Himachal
Pradesh, Madhya Pradesh, Chhattisgarh, Bihar, Jharkhand, Rajasthan, Haryana
and UTs of Andaman and Nicobar Islands and Delhi, shall be in Hindi,
(iii) Communications from a Central Government Office to States/UTs in
Region "B" comprising the States of Punjab, Gujarat, Maharashtra and the
Union Territory of Chandigarh, shall ordinarily be in Hindi. However,
communication to any person in Region ''8'' may be either in English or Hindi.
(iv) Communications from a Central Government Office to a State Government
Office in region 'C' comprising all other States and UTs not included in region
'A' & 'B' or to any office (note being a Central Government Office) or person

The Polity

43

shall bE.> in English. (v) Communications between Central Government Offices

and from Central Government Offices to the Offices of the State Governments/
Union Territories and individuals, etc., will be in Hindi in such proportion'i as
may be determined from time to time.
(vi) All Manuals, Codes and other
Procedural literature relating to Central Government Offices are required to be
prepared both in Hindi and English. All Forms, Headings of Registers, Name
Plates, Notice Boards and various items of stationery, etc., are also required to
be in Hindi and English. (vii) It shall be the responsibility of the officer signing
the documents specified in section 3(3) of the Act to ensure that these are
issued both in Hindi and English.
POLICY
In compliance with the Official Language Resolution, 1968, an Annual
Programme is prepared by the Department of Official Language in which
targets are set for the offices of the Central Government with regard to
originating correspondence, telegrams, telex, etc., in Hindi. A Quarterly Progress
Report is called for from the offices of th(, Central Government regarding
achievements vis-a-vis the said targets. An Annual Assessment Report is
prepared on the basis of the Quarterly Progress Reports, which is laid on the
Tables of both Houses of the Parliament and copies endorsed to State
Governments and tht' Ministries/Departments of the Central Government.
Eight Regional Implementation Offices have bt'en established at Bangalore,
Cochin, Mumbai, Kolkata, Guwahati, Bhopal, Delhi and Ghaziabad to monitor
the implementation of Official Languag' Policy of the Union.
COMMfITEES/SAMITIS
A Committee of Parliament on Official Language was constituted in 1976
under section 4 of the Official Languages Act, 1963 to periodically review the
progress in the use of Hindi as the Official Language and to submit a report
to the President. The Committee consists of 20 Members of the Lok Sabha and
10 of the Rajya Sabha. The Committee has decided to submit its report in parts.
It has so far submitted to the President seven parts of its report. The Presidential
Orders on five parts of its report have bt'en issued and work is in progress on
the sixth and seventh parts.
The Kendriya Hindi Samiti was constituted in the year 1%7. It is chaired
by the Prime Minister. It is the apex policy making body and lays down the
guidelines for the propagation and use of Hindi as the Union's Official
Language.
Under the directions of the Kendriya Hindi Samiti, Hindi Salahaj(.ar
Samitis have been constituted in all Ministries/Departments under the
chairmanship of the Ministers concerned. These Samitis periodically review
the progress in the use of Hindi in their respective Ministries/Departments
and the offices / undertakings and suggest measures to promote the use of
Hindi.
Besides, the Central Official Language Implementation Committee (headed
by Secretary, Department of Official Language and consisting of Joint Secretaries

44

India 2005

(In-charge of Official Language) of all tht, Ministries as ex-officio members)

revi{'ws the status of USt' of Hindi for official purpost's of the Union, training
of its t'mployL't.'s in I !indi and Official Language and suggests measures for
removing tht, shortcomings and difficulties noticed in implementing these
instructions.
Town Official Language Impll'mentation Committees are constituted in
different towns having tl'n or more Central Government offices, etc., to review
the progress in the USl' of Hindi in their member offin's and exchange
ex perit'nCl's.

A WARD SCHEMES
The scheme, Indira Gandhi Rajbhasha Awards has been in operation since
]lJI{6-H7. Awards-are h'lvm each year to Ministries/Departments, Banks and
Financial Institutions, Public Sector Undertakings and Town Official Languagt'
Implementation Committees for outstanding achievl'ments in the
implementation of the Official Language Policy of the Union. Cash awards are
given to the working! retired employees of the Central Government, Banks,
Financial Institutions, Universities, Training Institutions and Autonomous
Bodies of the Central Government for writing original books in Hindi.
The National Awards Scheme for Original Book writing on Gyan-Vigyan
for promoting writing of books in Hindi on all branches of modern knowledge
has been introduced since 2001-(12 and is open to all citizl'ns of India.
At Regional level, Regional Official Language Awards an' giv('n each
year to the Regional/Subordinate Offices, PSUs, Town Official Language
Implementation Committees, Banks and Financial Institutions of the Central
Government for outstanding achievements in implementing the Official
Language Policy of the Union and accelerating the progressive ust' of Hindi.

TRAINING
Undl~r the Hindi Teaching Scheme, administered by the Department of Official
Language, training in Hindi language is being imparted through 134 full-time
and 46 part-time Centres throughout the country. Likt>wisc, training in Hindi
Stenography and Hindi Typing is being provided through 24 full-time and 41
part-time Centres. Five Regional Offices at Kolkata, Mumbai, Delhi, Chennai
and Jabalpur are providing academic and administrative support to the Hindi
Teaching Scheme in the East, West, North, South and Central Regions.

The Kendriya Hindi Prashikshan Sansthan was established on 31 August

19H5, as a subordinate office of the Department of Official Language, with the

objective of providing Hindi Training through condensed courses in Hindi

language /Typing and Stenography as also training through correspondence in
Hindi language and Hindi Typwriting. Its sub-institutes were opened in
Mumbai, Kolkata and Bangalore in 1988 and in Chennai and Hyderabad in
1990. For usc of modern equipment in the Government offices, training in
Hindi Typing/Word Processing on computers is also imparted at various
Centres throughout the country.

The Polity

45

The Central Translation Bureau was set-up for translation of different

types of non-statutory literature, Manuals / Codes, Forms, etc., of various
Ministries/Departments, Central Government Offices and its rsUs, Banks, etc.
Tht, Bureau has also been entrusted with the responsibility of conducting
translation work. Initially, 3-months translation training courses were being
conducted only at Delhi. In order to strengthen training facilities and meet
regional requirements, Training Centres haw been established in Mumbai,
Bangalore and Kolkata. Besides, Central Translation Bureau also conducts
short-term translation courses for Central Government employees.
TECHNICAL
Tn order to promote the use of Official Language with the help of Mechanical
and Electronic equipment, especially computers, a Technical Cell was set-up in
the Department in October 19R3. The main activities of the Cell are :
(i) Printing and distribution of literature giving information regarding bilingual
software. (ii) Organising seminars on bilingual computers and exhibitions.
(iii) Arranging programmes for imparting training for working in Hindi on
computers. (iv) Producing multi-media films on Hindi computers.
(v) Development of Hindi learning software. (vi) Helping and guiding the
Ministries/Departments, PSUs and Banks in devl'loping their wcbsites in
Hindi.
The Department of Official Language has now set-up its portal
www.rajbhasl}!lnis.in.
PUBLICATIONS
The Department of Official Language brings out Rajbhasha Bharati, a quarterly
magazine, in Hindi. So far 103 issues have been published. Likewise, Annual
Programme for implementation of the Official Language policy is brought out
every year. Annual Assessment Report regarding the use of Official Language
in different Ministries/Departments and offices of the Central Government
Public Sector Undertakings, etc., is also brought out every year and laid on the
tables of both the houses of Parliament. Official Language Manual, Posters,
etc., are also brought out to give information regarding the activities relating
to propagation and use of Hindi as the Official Language.
COMPTROLLER AND AUDITORGENERAL
Comptroller and Auditor-General is appointed by the President. Procedure
and grounds for his removal from office are the same as for a Supreme Court
Judge. He is not eligible for further office under the Union or a State
Government after he ceases to hold his office. The President on advice of
Comptroller and Auditor-General prescribes the form in which accounts of tht>
Union and states are to be kept. His reports on accounts of the Union and
states are submitted to the President and respective governors which are
placed before Parliament and state legislatures.

ADMINISTRATIVE REFORMS AND PUBLIC GRIEVANCES

The Department of Administrative Reforms and Public Grievances in the

46

India 2005

Ministry of Personnel, Public Grievances and Pensions is the nodal agency of

tht Government for Administrative reforms as well as red ressa I of public
grit'vances relating to the Central Government organisations in particular and
State governments and UT administrations in general. The Department provides
management consultancy services to Central Government Ministries/
Departments. The Department disseminates information on important activities
of the GOVl'rnment relating to administrative reforms and public grievances
rl'dn~ssal through various publications.
The i)('partment coordinates tht' efforts to formulate and operationalise
Citizen's Charters by the Central Government Ministries/Departments, etc.,
and their PSUs / autonomous / statutory bodies in varioul' States / UTs in areas
in which they provide services to the members of the public. These Charters
publicise tht:' commitment of the organisation, the expt'cted standards of
service delivery, time frame, grievance redress mt'chanism, laying their
performance open to public scrutiny and ensure accountability. A Core Group
has be<'n set-up under the Chairmanship of Secretary (Personnel) to review the
forn1ulation and implementation of Citizen's Charters by various Central
agencies. The State governments have also been advised to constitute similar
Core Croups for formulation of Citizen's Charters.
The Departmtnt brings out the following publications: (i) Civil Services
Ntws (a monthly newsletter); and (ii) Management in Government (a quarterly
journal).
The Ministry of Personnel, Public Grievances and Pensions is an
in<;titutional member of Commonwealth Association for Public Administration
and Management (CAPAM) since 1997. CAPAM has started its Biennial
Intt'rnationallnnovations Awards Programme since 1998. The Ministry is also
an institutional member of International Institute of Administrative Sciences
(IlAS), Brussels, Belgium.

ADMINISTRATIVE TRIBUNALS
The enactment of Administrative Tribunals Act in 1985 opened a new chapter
in the sphere of administering justice to the aggrieved government servants.
Administrative Tribunals Act owes its origin to Article 323-A of the Constitution
which empowers Central Government to set-up by an Act of Parliament,
Administrative Tribunals for adjudication of disputes and complaints with
respect to recruitment and conditions of service of persons appointed to the
public service and posts in connection with the affairs of the Union and the
States. In pursuance of the provisions contained in the Administrative Tribunals
Act, 1985, the Administrative Tribunals set-up under it exercise original
jurisdiction in respect of service matters of employees covered by it. As a
result of the judgement dated 18 March 1997 of the Supreme Court, the
appeals against the orders of an Administrative Tribunal shall lie before the
Division Bench of the concerned High Court.
The Administrative Tribunals exercise jurisdiction only in relation to the
service matters of the litigants covered by the Act. The procedural simplicity

The Polity

47

of the Act can be appreciated from the fact that the aggrieved person can also
appear before it personally. The Government can present its case through its
departmental officers or legal practitioners. Thus, the objective of the Tribunal
is to provide for speedy and inexpensive justice to the litigants.
The Act provides for establishment of Central Administrative Tribunal
(CAT) and the State Administrative Tribunals. The CAT was set-up on
1 November 1985. Today, it has regular benches, 15 of which operate at the
principal seats of High Courts and the remaining two at Jaipur and Lucknow.
These Benches also hold circuit sittings at other seats of High Courts. In brief,
the tribunal consists of a Chairman, Vice-Chairman and Members. The Members
are drawn both from judicial as well as administrative streams so as to give
the Tribunal the benefit of expertise both in legal and administrative spheres.

THE STATES
The system of government in states closely resembles that of the Union.
EXECUTIVE
GOVERNOR

State executive consists of Governor and Council of Ministers with Chief

Minister as its head. The Governor of a state is appointed by the President for
a term of five years and holds office during his pleasure. Only Indian citizens
above 35 years of age are eligible for appointment to this office. Executive
power of the State is vested in Governor.
Council of Ministers with Chief Minister as head, aids and advises
Governor in exercise of his functions except in so far as he is by or under the
Constitution required to exercise his functions or any of them in his discretion.
In respect of N~galand, Governor has special responsibility under Article 371
A of the Co~tution with respect to law and order and even though it is
necessary for him to consult Council of Ministers in matters relating to law
and order, he can exercise his individual judgement as to the action to be
taken.)
Similarly, in respect of Arunachal Pradesh, Governor has special
responsibility under Article 37tH of the Constitution with respect to law and
order and in discharge of his functions in relation thereto. Governor shall, after
consulting Council of Ministers, exercise his individual judgement as to the
action to be taken. These are, however, temporary provisions if President, on
receipt of a report from governor or otherwise is satisfied that it is no longer
necessary for Governor to have special responsibility with respect to law and
order, he may so direct by an order.
Likewise, in the Sixth Schedule which applies to tribal areas of Assam,
Meghalaya, Tripura and Mizoram as specified in para 20 of that Schedule,
discretionary powers are given to Governor in matters relating to sharing of
royalties between district council and state government. Sixth Schedule vests
additional discretionary powers in Governors of Mizoram and Tripura in

48

India 2005

almost all their functions (except approving regulations for levy of taxes and
money lending by non-tribals by district councils) since December 1998. In
Sikkim, Governor has been given special responsibility for peace and social
and economic advanceml:'nt of different sections of population.
All Governors while discharging such constitutional functions as
appointment of Chief Minister of a statl:' or sending a report to President about
failure of constitutional machinery in a state or in respect of matters relating
to assent to a Bill passed by legislature, exercise their own judgement.
COUNCIL OF MINISTERS

The Chief Minister is appointed by the Governor who also appoints other
ministers on the advin' of the Chief Minister. The Council of Ministers is
colll'ctivl'ly responsible to legislative assembly of the State.
LEGISLA TURE

For every state, there is a legislature which consists of Governor and one
House or, two Houses as the case may be. In Bihar, Jammu and Kashmir,
Karnataka, Maharashtra and Uttar Pradesh, there are two Houses known as
legislative council and legislative assembly. In the remaining states, there is
only one House known as legislative assembly. Parliament may, by law,
provide for abolition of an existing legislative councilor for creation of one
where it does not exist, if proposal is supported by a resolution of the
legislative assembly conCt)rned.
LEGISLATIVE COUNCIL

Legislative Council (Vidhall Parishad) of a state comprises not more than onethird of total number of members in legislative assembly of the state and in no
case less than 40 members (Legislative Council of Jammu and Kashmir has 36
members vide Section 50 of the Constitution of Jammu and Kashmir). About
one-third of members of the council are elected by members of legislative
assembly from amongst person.'> who are not its members, one-third by
electorates consisting of members of municipalities, district boards and other
local authorities in the state, one-twelfth by electorate consisting of persons
who have been, for at least three years, engaged in teaching in educational
institutions within the state not lower in standard than secondary school and
a further one-twelfth by registered graduates of more than three years standing.
Remaining members are nominated by Governor from among those who have
distinguished themselves in literature, science, art, cooperative movement and
social service. Legislative councils are not subject to dissolution but one-third
of their members retire every second year.
LEGISLATIVE ASSEMBLY

Legislative Assembly (Vidhan Sabha) of a state consists of not more than 500
and not less than 60 members (Legislative Assembly of Sikkim has 32 members
vide Article 371F of the Constitution) chosen by direct election from territorial

The Polity

49

constituencies in the state. Demarcation of territorial constituencies is to be

done in such a manner that the ratio between population of each constituency
and number of seats allotted to it, as far as practicable, is the same throughout
the state. Term of an assembly is five years unless it is dissolved earlier.
POWERS AND FUNcrIONS
State legislature has exclusive powers over subjects enumerated in List II of
the Seventh Schedule of the Constitution and concurrent powers over those
enumerated in List III. Financial powers of legislature include authorisation of
all expenditure, taxation and borrowing by the stat(' government. Legislative
assembly alone has power to originate moOt'y bills. Legislative council can
make only recommendations in respect of changes it considers necessary
within a period of fourteen days of the receipt of money bills from assembly.
Assembly can accept or reject these recommendations.
RESERVATION OF BILLS
The Governor of a state may reserve any Bill for the consideration of the
President. Bills relating to subjects like compulsory acquisition of property,
measures affecting powers and position of High Courts and imposition of
taxes on storage, distribution and sale of water or electricity in inter-state river
or river valley development projects should necessarily be so reserved. No
Bills seeking to impose restrictions on inter-state trade can be introduced in a
state legislature without previous sanction of the President.
CONTROL OVER EXECUTIVE
State legislatures, apart from exercising the usual power of financial control,
use all normal parliamentary devices like questions, discussions, debates,
adjournments and no-confidence motions and resolutions to keep a watch
over day-to-day work of the executive. They also have their committees on
estimates and public accounts to ensure that grants sanctioned by legislature
are properly utilised.

UNION TERRITORIES
Union Territories are administrated by the President acting to such extent, as
he thinks fit. through an Administrator appointed by him. Administrators of
Andaman and Nicohar Islands, Delhi and Pondicherry are designated as
Lieutenant Governors. The Governor of Punjab is concurrently the
Administrator of Chandigarh. The Administrator of Dadra and Nagar Haveli
is concurrently the Administrator of Daman and Diu. Lak<;hadweep has a
separate Administrator.
The National Capital Territory of Delhi and Union Territory of Pondicherry
each has a legislative assembly and council of ministers. Legislative assembly
of Union Territory of Pondicherry may make laws with respect to matters
enumerated in List n or List ill in the Seventh Schedule of the Constitution in
SO far as these matters are applicable in relation to the union territory. The

50

India 2005

legislative assembly of National Capital Territory of Delhi has also these

powers with the exceptions that Entries I, 2 and 18 of the List II are not within
the legislative competence of the legislative assembly. Certain categories of
Bills, however, require the prior approval of the Central Government for
introduction in the legislative assembly. Some Bills, passed by the legislative
assembly of the Union Territory of Pondicherry and National Capital Territory
of Delhi are required to be reserved for consideration and assent of the
President.

LOCAL GOVERNMENT
MUNICIPALITIES
Municipal bodies have a long history in India. The first such Municipal
Corporation was set-up in the former PreSidency Town of Madras in 1688; and
was followed by similar corporations in the then Bombay and Calcutta in 1726.
The Constitution of India has made detailed provisions for ensuring protection
of democracy in Parliament and in the state legislatures. However, Constitution
did not make the local self-government in urban areas a clear-cut constitutional
obligation. While the Directive Principles of State Policy refer to village
Panchayats, there is no specific reference to Municipalities except the implicity
in Entry 5 of the State List, which places the subject of local self-governments
as a responsibility of the states.
In order to provide for a common framework for urban local bodies and
help to strengthen the functioning of the bodies as effective democratic units
of self-government Parliament enacted the Constitution (74th Amendment)
Act, 1992 relating to municipalities in 1992. The Act received the assent of the
President on 20 ApriI1993. The Government of India notified 1 June 1993 as
the date from which the said Act came into force. A new part IX-A relating to
the Munidpalities has been incorporated in the Constitution to provide for
among other things, constitution of three types of Municipalities, i.e., Nagar
Pllnchayats for areas in transition from a rural area to urban area, Municipal
Councils for smaller urban areas and Municipal Corporation for large urban
areas, fixed duration of municipalities, appointment of state election
commission, appointment of state finance commission and constitution of
metropolitan and district planning committees. State/UTs have set-up their
election Commissions. EJection..,> to municipal bodies have been completed in
all States I UTs except Jharkhand and Pondicherry.
PANCHAYATS
Article 40 of the Constitution which enshrines one of the Directive Principles
of State Policy lays down that the State shall take steps to organise village
panchayats and endow them with such powers and, authority as may be
necessary to enable them to function as units of self-government.
In the light of the above a new Part IX relating to the Panchayats has
been inserted in the Constitution to provide for among other things, Gram

The Polity

51

Sabha in a village or group of villages; constitution of Panchayats at village

and other level or levels; direct elections to all seats in Panchayats at tht
village and intermediate level, if any, and to the offices of Chairpersons of
Panchayats at such levels; reservation of seats for the Scheduled Castes and
Scheduled Tribes in proportion to their population for membership of
Panchayats and office of Chairpersons in Panchayats at each level; reservation
of not less than one-third of the seats for women; fixing tenure of five years
for Panchayats and holding elections within a period of six months in the
event of supersession of any Panchayat.

ELECTION COMMISSION'
The superintendence, direction and control of preparation of electoral rolls
for, and the conduct of, elections to Parliament and State Legislatures and
elections to the offices of the President and the Vice-President of India are
vested in tht: Election Commission of India. It is an independent constitutional
authority. Since its inception in 1950 and till October 1989, the Commission
functioned as a single member body consisting of the Chief Election
Commissiont?r. On 16 October 1989, the President appointed two more
Election Commissioners on the eve of the Gt:'neral Election to the House of
the People held in November-December 1989. However, the said two
Commissioners ceased to hold office on 1 January 1990 when those two posts
of Election Commissioners were abolished. Again on 1 October 1993, the
President appointed two more Ell'ction Commissioners. Simultaneously, the
Chief Election Commissioner and other Election Commissioners (Conditions
of Service) Act, 1991 was amended to provide that the Chief Election
Commissioner and other Election Commissioners will enjoy equal powers and
will receive equal salary, allowances and other perquisites as payable to a
judge of the Supreme Court of India. The Act further provided that in case
of difference of opinion amongst the Chief Election Commissioner and/ or two
other Election Commissioners, the matter will be decided by the Commission
by majority. The validity of that Act (renamed in 1993 as the Election
Commission) (Conditions of Service of Election CommL..sioners and Transaction
of Business) Act, 1991 was challenged before the Supreme Court. The
Constitution Bench of the Supreme Court consisting of five judges, however,
dismissed the petitions and upheld the provisions of the above law by a
unanimous judgement on 14 July 1995.
Independence of the Election Commission and its insulation from
executive interference is ensured by a specific provision under Article 324(5)
of the Constitution that the Chief Election Commissioner shall not be removed
from his office except in like manner and on like grounds as a Judge of the
Supreme Court and conditions of his service shall not be varied to his
disadvantage after his appoinbnent. The other Election Commissioners cannot
be removed from office except on recommendation of the Chief Election
Commissioner. The term of office of the Chief Election Commissioner and

52

India 2005

other Election Commissioners is six years from the date he / she assumes office
or till thl' day he / she attains the age of 65 years, whichever is earlier.
AMENDMENTS
The Parliament on 22 March 21X)3 enactl'd the Election Laws (Amendment)
Act, 2003 and Conduct of Elections (Amendment) Rules, 2003 which carne
into forn' with effect from 22 St>ptember 2003. By these amendments in the
Act and Rules, thoSt' st'rvicc voters belonging to tht, Anned Forces and
nll'mhers belonging to a Force to which provisions of the Anny Act applies,
haw been provided the facility to opt to vote through proxy. Such service
votl'r who opt to vote through proxy have to appoint a proxy in a prescribed
fomla! and intimate thl' Rl'turning Officer of tht, constituency.
TIll' Election and Other Rt'latl'd Laws (Amendment) Act, 2003 (46 of
20tH) was enacted in II StTtl'mber 2003. By this amendment, new Section

29B and 29C wert' inserted in the Principal Act providing for contribution
by any person or company other than a Government company to political
parties, subject to the condition that any contribution in excess of Rs 20,000
shall hl reportt'd to the Election Commission for any claim for Tax relief under
the Income Tax Act, 1961. The Act also inserted Part A (Section 78A and 78B)
regarding supply of copies of electoral rolls and certain other items to
candidates of recognised political parties. This Act also amended Section 77(1)
rq!;arding maintenance of election expenses by candidates whereby expenditure
incurred by specified number of 'leaders' of a political party on account of
travel by air or by any other means of transport for propagating programmt:'
of the political party alone shall N' exempted from being included in the
account of election expenSt's incurred by the candidate in connection with the
t'it:'ction.
Tht:' Parliament on I January 2004 enacted the Delimitation (Amendment)
Act. 2003 whereby Section 4 of the Principal Act was amended to provide
that the Delimitation will be held on the basis of the 2001 Census figures.
The Parliament on 2R August 2003 enacted the Representation of the
Pl'ople (Amendment) Act, 2003 whereby open ballot system was mtroduced
at elections to the Council of States. In this system an elector who belongs
to a political party is required to show the ballot paper after marking his vote
to an authorised agent of that political party. The requirement that a candidate
contesting an eiel"iion to the Council of States from a particular State should
be an clt'ctor in that particular State was also dispensed with.
ELECTORAL REFORMS
In c.w.P. No. 4912 of 1998 (Klishra Bharat Vs. Union of India and Others),
the Delhi High Court directed that infonnation relating to government dues
owed by candidates to the departments dealing with Government
accommodation, electricity, water, telephone and transport (including aircrafts

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53

and helicopters) and any other dues should be furnished by the candidates
and this information should be published by the election authorities under
the Commission in at least two newspapers having local circulation, for
information of electors. Accordingly, the Commission modified items 3(a)(iii)
of the format of the affidavit prescribed vide its order dated 27 March 2003
relating to right to information of electors regarding the background of
candidates and also issued necessary directions to the District Election Officers
regarding publication of the information furnished by the candidates in the
newspapers as directed by the Delhi High Court.

GENERAL ELECTION 2004

Elections in India are events involving political mobilisation and organisational
complexity on an amazing scale. The General Elections to the 14th Lok Sabha,
the House of People were due in October 2004 but consequent to early
dissolution of the House, the Election Commission of India decided to hold
th~' elections to the Lok Sabha, State Legislative Assemblies of Andhra
Pradesh, Karnataka, Orissa and Sikkim, as well as fifteen bye-elections in
variuos states during April-May 2004.
General Elections 2004
Total Seats (Lok Sabha)
Electorate
Number of election personnel
engaged
Number of EVMs used
Direct expenditure incurred

543
67,15,24,934

Approx. 4 million excluding paramilitary and police personnel

1.075 million
Approx. Rs 13,000 million

Number and Types of Lolc Sabha Constituencies

For General Candidates
Reserved for Scheduled Caste
Candidates
Reserved for Scheduled
Tribe Candidates
Total Constituencies

423
79

41

543

On 29 February 2004, the Election Commission of India announced the

schedule of elections, with polling to be held in four phases on 20 and 26
April and 5 and 10 May 2004. The phasing of the elections has become a
necessity over the years due to large requirement of paramilitary forces and
time needed for their movement across various states. The phasing of polls
pays rich divide;tds was brought out by the fact that poll related violence
came down substantially. Later, the Commission decided to hold elections for

54

India 2005

two seats in Tripura on 22 April in<;tead of 20 April 2004 and for ont:' seat
in Andaman and Nicobar Islands on 20 April instead of 10 May 2004.

Electronic Voting Machine: The Repn.-sentation of People Act, 1951 was

amended by the Indian Parliament in 1989 to facilitate the use of EVMs.
However, they wt:'re really put to use only after a decade, when the
Commission took a bold initiative for introducing EVMs in 16 Assembly
Constituencies during Statt:' Legislative Assembly Elections in November 1998.
In Gl'Oeral Elections 2004, EVMs were used for the first time throughout the
country making the elections go fully electronic. The user-friendly EVMs could
be used even by the illiterates with ease. Since the EVMs work on battery,
eltctricity was not a problem. The polling personnel carried EVMs in
convenient boxes. Tht' use of EVMs was preceded by an elaborate training
programmt> and widespread campaign to educatl the voters, candidates,
political parties, media and the election staff. The failure rate of the machines
was negligible. The use of EVMs saved around 1,50,000 trees which would
haw otherwise been cut for production of about 8,000 tonnes of paper
required for printing the ballot papers, if traditional system of ballot boxes
was adoptlJd. The USt of EVMs made possible reduction in tht' number of
polling stations from 0.77 million to about 0.7 million, as the maximum
number of voters pt'r polling station could be incrl'ased to 1,500 from earlier
prescribed limit of 1,200. EVMs wert transportt'd to polling stations by all
imaginablt' means.
J

Political Parties : For these elt'ctions, there wert' six National Parties, fortyfive State Partips and 702 Registered Unrecognised Parties. Since about a
decadl', regional and smaller parties gained importance in Indian polity. They
havl.:' played a major roll' in Government formation through pre-poll and postpoll allianct's. There are no permanent friends or foes in politics becomes clear
when Indian context is analysed.
Canditlates : There wt're 5,435 candidates for 543 Lok Sabha seats and 4,504
candidates for 697 seats in four State Legislative Assemblies. The number of
women candidates was 354 and 324 respectively. Though the ceilings for
expenses to be incurred by the candidates were raised, due to strict observance
of Model Code of Conduct and monitoring of election expenses, the overt
publicity remained subdued. To ensure a level playing field, the Supreme
Court of India ordered regulation of advertisements on electronic media to
lx' put by the candidates and political parties. The candidates were required
to file affidavits declaring their assets and liabilities, educational qualifications,
Government dues and criminal cases pending against them, if any. These
affidavits were displayed on the notice boards of the offices of the Returning
Officers, and placed on the website of the Commission to enable the electors
make their informed choice. Some NGOs compiled this information and
circulated the same for the benefit of the voters.
Results : There were more than 1,200 counting centres spread over about 850

55

The Polity

towns in the country. The counting of votes for Andhra Pradesh State
Legislative Assembly was undertaken on 11 May 2004 and for Lok Sabha,
other State Legislative Assemblies and bye-elections on 13 May. The use of
EVMs made the process of counting easier and faster. The Commission made
elaborate arrangements to receive directly results from the Returning Officers
using GENESYS software. Th(' Commission's website received more than 10
milljo~ the day of counting.

Elections to Legislative Assemblies: The General Election to the Legislative

Assemblies of Gujarat and Jammu and Kashmir were held on 12 December
and in September-October 2002 respectively. Similarly poll to thE.> Legislative
Assemblies of Himachal Pradesh, Meghalaya, Nagaland and Tripura were
held on 26 February 2003. The General Elections to the Legislative Assemblies
of Mizoram was held on 20 November 2003 and that of Chhattisgarh, Madhya
Pradesh, Rajasthan and NCT of Delhi were held on 1 December 2003.
General Ele(. tion
.
to Legislative Assemblies of Andhra Pradesh, Karnataka,
Orissa and Sikkim were held in different phases as detailed below :
Statc(s) I UT(s)

Phase

Andhra Pradesh

20 Apri! 2004
II

26 April 2004
20 April 2004

Karnataka
II

Orissa

26 April 2004
20 April 2004

II

Sikim

Date of Poll

26 April 2004
10 May 2004

Sf,

India 2005

f-

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The Polity

57

India 2005

58

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59

The Polity
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Agriculture

AGRICULTURE is the mainstay of the Indian Economy. Agriculture and Allied

sectors contribute nearly 25 per cent of Gross Domestic Production (GOP),
whik ilbout 05-70 per cent of the population is dependent on agriculture for
thpir livelihood. The agricultural output, however, depends on mons(xm as
nearly 00 pt>r ccnt of area sown is dl'pendent on rainfall. During 2003-04 the
country experienced a very favourable monsoon which in turn pavl'd the way
for comfortable crop prospect during the year. According t(l the fourth
advance estimates on production of foodgrains and commercial crops releast'd
on 5 August 2004, the production of foodgrains during 2003-04, is estimated
at 212.05 million tonnes, which is more than tilt' food grains production of
2002-03 by 37,Ro million tnnnes or 21.7 per cent. The estimated production
of ric' at 87 million tOI1I1es is higher by ]4.34 million tom1es or 19.7 per cent
as compared to 2002-03. The production of wheat estimaif.'d af 72~06 million
tonnes also exceeds last year's (that is 2002-(3) production by 6.96 million
tonnes or 10.7 per Ct'nt. The production of coarse cereals estimated' at mi)
million tonnps is mort' than tht' last year's production by 12.47 million tonnes
or by 49.3 per cent. This quantum jump in tht> production of coarse cereals
is mainlv due to baj~!!laizl'. The production of baira is estimated at 11.79
million tonnes indicating a spectacular increase of 154.6 per cent over the last
year production of 4.63 million tonnes. In case of maize the production is
estimated at 14.72 million tonncs which is more than last years production
by 4.42 mill_inn tonnes or 42.9 per cent. The expected production of total pulses
at l~~. million tonnes shows 36.7 per cent increase over last year's production
of 11.14 million tonnes.
The estimated production of total oilseeds at ~ million tormes is more
than the last year's production by 10.09 miJIions tormes or by 67.0 per cent.
The production of cotton in 2003-04 is estimated at 13.79 million.!!.ales of 170
kg each which is more than the last year's production level by 5.07 million
bales indicating an increa~ of 58.2 per cent. Jute and Mesta production during
2003-04 is estimated at 11.20 million bales of 180 kg each which is lower than
the last year's production of 11.38 million bales. Sugarcane production is likely
to be 236.18 million tonnes, showing a reduction of 45.40 million tonnes or
16.1 per cent over previous year's production of 281.58 million tormes.
Annual growth of crop area, production and yield in respect of cereals,
oilseeds and other crops is given below:

Agriculture

61

TABLE 4.1: ANNUAL COMPOUND GROWTH OF CROP AREA,

PRODUCTION AND PRODUCflVITY
(per a>nt per dnnum)
2001-02

2002-03

Area

Production

Yield

Area

Riel'

ll,45

<),76

4.21i

-1(),32

-22,10

-1:1,]4

Wheat

2.41

4,42

1.9f>

-5 h5

-10,53

-5,17

Coarse Cereals

-:U5

4,41

H,32

-10,23

-22.20

-13.33

'llltal Cereals

-ll,13

7,44

7.511

-'1,07

1 HA7

-10.34

Total PuISt,S

7,14

22.211

14, J:l

-H,04

17.27

-10.04

Foodgrains

1,0'1

<),04

7.91

-8,114

-18,32

-10,35

-0,52

12,30

12,89

-h,30

-27,33

-22.45

Cotton (Lint)

7.00

4.4h

-1.91

-lh (]4

-12,H I

3.85

Sugarcane

2,22

0.42

-1.76

4.44

-2.55

-h,70

Non-Foodgrains'

0,54

5,23

4,6(>

-11.37

1(],57

0,90

All Principal Crops'

0,6h

7,36

n.liS

-9.36

-14,92

-6,14

Crop

Total

Oilseed~

Prod urtion Yield

Prollisionai

Based on Index Numbers with Triennium ending 1993-94- HXJ

HARVESTING SEASON
There are three main crop seasons, namely, khtlrif, rabi and summer. Major kharif
crops are rice, jowar, bajra, maize, cotton, sugarcane, soyabean and ground nut.
Major rabi crops are wheat, barley, gram, linseed, rapeseed and mustard. Rice,
maize and groundnut are grown in summer season also.
LAND UTILISATION
Land utilisation statistics are available for 93.1 per cent of total geographical
area of 3,287.3 lakh hectares (ha). According to Land Use Statistics available
from States, area under forest had increased from 404.8 lakh hectares in 195()..
51 to 690.2 lakh hectares in 1999-2000. Net sown area increased from 1,187.5
lakh hectares to 1,412.3 lakh hectares during the same period. Broad cropping
pattern indicates that though food grains have a preponderance in gross
cropped area as compared to non-food grains, their relative share came down
from 76.7 per cent during 1950-51 to 65.8 per cent during 1999-2000. According
to Agricultural Census, the area operated by large holdings (10 hectares and
above) has declined to 14.8 per cent in 1995-% compared to 17.3 per cent

62

India 2005

in 1990-91. Similarly, the area operated under marginal holdings (less than one
hectare) has increased to 17.2 per cent in 1995-% from 15.0 per cent in 199091. This indicates that land is being fragmented.
TECHNOLOGY MISSION ON OILSEEDS, PULSES AND MAIZE
The Technology Mission on OiISl.>eds was launched by the Central Government
in 19R6 to increase the production of oil seeds to reduce import and achieve
self-sufficiency in edible oils. Subsequently, pulses, oil palm and maize were
also brought within the purview of the Mission in 1990-91, 1992 and 199596 respectively. In addition, the National Oilseeds and Vegetable Oils
Dl'velopment (NOVOD) Board is also supplementing the efforts of Technology
Mission on Oilseeds, Pulses and Maize (TMOP) by opening of newer areas
for non-traditional oilseeds. It is promoting tree-borne oilseeds. The schemes
implemented under TMOP are (i) Oilseeds Production Programme (OPP);
(ii) National Pulses Development Project (NPDP); (iii) Accelerated Maize
Development Programme (AMDP); (iv) Post Harvest Technology (PHT);
(v) Oil Palm Development Programme (OPDP); and (vi) National Oilseeds
and Vegetable Oils Dl'velopment Board (NOVOD).
During the Tenth Plan, these schemes have been restructured as
(i) Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) by
converging the ongoing schemes of OPP, NPDP, AMDP and OPDP;
(ii) Research and Development in Post Harvest and Processing Technology
(PHT) in Oilseeds, Pulses, Oil Palm and Maize including TMOP headquarters;
and (iii) Integrated Ol'velopment of Tree-borne Oilseeds to be implemented
by NOVOD Board.
(Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize: In order to
provide flexibility to the States in implementation based on regionally
differentiated approach, to promote crop diversification and to provide
focused approach to the programmes, the four on-going schemes of OPP,
OPOp, NPOP and AMDP have been merged into one Centrally-Sponsored
Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) during
the Tenth Five Year Plan which is being implemented from 1 April 2004. The
scheme is implemented by 14 states for oilseeds and pulses, 15 states for Maize
and 10 states for Oil Palm.
The ISOPOM has the following special features (i) Flexibility to the states
to utilise the funds for the schemel crop of their choice; (ii) Annual action
plan to be formulated by the state governments for consideration and
approval of the Government of India; (iii) Flexibility to the states for
introducing innovative measures or any special component to the extent of
10 per cent of financial allocation; (iv) Involvement of private sector by the
state governments for the implementation of the programme with a financial
cap of 15 per cent; (v) Flexibility for inter component diversion of funds upto
20 per cent for non-seed components only; (vi) Diversion of funds from seed

Agriculture

63

components to non-seed components with the prior approval of the Department

of Agriculture and Cooperation; and (vii) Increase under staff and contingency
not permitted except by revision of pay scale and increase in rate of Dearness
Allowance with the prior approval of the Department of Agriculture and
Cooperation.
New components of ISOPOM included during Tenth Plan are:
(i) Inclusion of HOPE pipes; (ii) Publicity; (iii) Involvement of Private Sector
including NGOs, Farmers' Organisation, Cooperative bodies, Public Sector
Agencies, etc; (iv) Innovative measures and additional components;
(v) Training of Officers/Extension workers; and (vi) Foreign Visits.
Implementation of oilseeds production programme has helped in
increasing the production of oilseeds from 108-30 lakh tonnes in 1985-86 to
249.80 lakh tonnes during 2003-04. The pulses production in the country
increased from 128.60 lakh tonnes in 1989-90 to 148.90 lakh tonnes in 200304. The area under pulses increast..d from 234.10 lakh ha in 1989-90 to 262.30
lakh ha in 2003-04. The area under Oil Palm increased from 8,585 ha at the
end of 1992-93 to 44,789 ha by the end of the Ninth Plan (2001-2002). Actual
production of Fresh Fruit Bunches (FFBs) at the end of the Ninth Five year
Plan (2001-2002) was 1,28, 873 tonnes, yielding around 22,613 tonnes of crude
palm oil (CPO). The production on Maize increased from 88.84 lakh tonnes
in ]994-95 to ]39.5 lakh tonnes in 2003-04 and the area under Maize increased
from 61.36 lakh ha in 1994-95 to 76.0 lakh ha in 2003-04.
UNDP Sub-Programme on Maize-based Cropping System for Food
Security in India: A Suh-programme on maize-based cropping system for
food security in India under GOI-UNOP Food Security programme for a total
amount of US $ 8,14,000 being fully funded by UNOp, for implementation
in six districts in three states viz., Bihar, Rajasthan and Uttar Pradesh for four
years, from 1999-2000, has also been undertaken.
Research and Development in Post harvest and processing Technology
in Oilseeds, Pulses, Oil Palm and Maize: The scheme of Post Harvest
Technology (PUT) for Oilseeds, Pulses and Maize was brought under the
purview of the TMOP & M with the objective of stepping up their production
through efficient scientific processing for realising the ultimate objectives of
self-reliance in edible oils and other crops and bringing about a position of
zero imports.

The Technology Mission has been emphasising on development of Post

Harvest Technology (PHT) with the follOwing objectives: (i) Optimising oil
recovery from oilseeds by developing efficient modern oil expellers;
(li) Tapping full potential of Rice Bran Oil (RBO) - in the country;
(iii) Developing value-added products in respect of oilseeds, pulses and maize
so that farmers are able to get a better/remunerative price; (iv) Designing
and developing indigenous technology for processing of non-conventional and
tree-bome oilseeds including oil palm; (v) Developing of indigenous technology

India 2005
in maize processing suitable in the context of Indian situation..; and
(vi)
Dissemination of the R&D Technologies developed through demonstration
programmes.
The indigenous technologies developed through R&D programmes are
popularised by setting up demonstration units in industries with partial grantin-aid assistance from TMOP&M, Department of Agriculture and Cooperation.
The partial grant-in-aid assistance is provided in the form of plant and
machinery.
Integrated Development of Tree-borne Oilseeds by NOVOD Board:
National Oilseed and Vegetabll' Oils Development (NOVOD) Board is
exploring and augmenting the potential of Tree-borne Oilseeds (TBO's) in the
country by undertaking activities like nursery raising, plantation, installation
of pn'-processing and processing facilities, capacity building and need-based
research, etc.
Board has initiated plantation programmes of Jatroph~~c~s, and
pil1nala) for bio-diesel production in the country in more
than 1,150 h~ in various states. Besides, 5.10 lakh seedlings of other TBOs
like Neem, Wild Apricot, Tung, Cheura, Kokum, etc., have been raised and
planted in the potential states. Under awareness programme, 2,300 farmers
have been trained and motivated for raising TBOs. Eight oil expellers have
bet'n installed in the states of Andhra Pradesh, Bihar, Karnataka and Tamil
Nadu. R&D programmes have been made by making National Network on
Jatropha and Karanja by involving 28 institutions for conducting need based
research.
Kara!1i~.lPongamia

CROP PRODUCfION PROGRAMME

For increasing production and productivity of various crops in the country,
the Statl' Governments submit Work Plan proposal under Macro Management
Scheme. The individual crop-wise schemes, viz., (i) Integrated Cereal
Development Programme in Wheat-based Cropping Systems Area (ICDPWheat, (ii) Integrated Cereals Development Programme in Rice-based Cropping
Systems Area (ICDP-Rice); (iii) Integrated Cereal Development Programme on
Coarse Cereal-based Cropping Systems Area (ICDP-Coarse Cereals);
(iv) Sustainable Development of Sugarcane-based cropping System (SUBACS);
and (v) Special Jute Development Programme (SJDP) have been subsumed
under Macro Management Mode since October 2001 to give more flexibility
to the State Governments. Central Sector Minikit Programmes of Rice, Wheat
and Coarse Cereals have been discontinued from 2002-03.
The Centrally-sponsored Scheme of Intensive Cotton Development
Programme (lCDP) which was merged with the Technology Mission on
Cotton, is continuing during 2003-04. This scheme is being implemented. with
collaboration between Ministry of Agriculture and Ministry of Textiles. This
scheme is being implemented in 13 States. The aim of the scheme is to increase

Agriculture

65

the production and quality of cotton. The scheme provides assistance for
extension and development activities.
As a new initiative, a Centrally-sponsored Scheme - On Farm Water
Management for encouraging crop production in eastern India has bt.>en
launched in March 2002. The objective of the scheme is to increase the
production and productivity of food grains through focus on exploitation of
ground / surface water and its efficient utilisation. The scheme will help in
enhancing the income of the farmers and diversifying agriculture production
in eastern India. The Scheme is in operation in all districts of Assam,
Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Manipur, Mizoram,
Orissa, nine districts of West Bengal and 35 districts of eastern Uttar Pradesh.
Ihe main components of the scheme are: (i) assistance for installation of
shallow tubewells with pump sets; (ii) assistance for electric/ diesel pump sets;
(iii) assistance for community lift irrigation points; and (iv) assistance for dug
wells in the plateau region. The scheme is being implemented as credit linked
back-ended subsidy basis through NABARD in coordination with the State
Governments. The funding pattern of the scheme is 20:30:50 basis, i.e., 20 per
cent contributed by the beneficiaries, 30 per cent subsidy from Government
of India and 50 per cent as bank loan.
HORTICULTURE
India, with its wide variability of climate and soil, has good potential for
growing a wide range of horticultural crops such as fruits, vegetables, potato,
tropical tuber crops and mushrooms, ornamental crops; medicinal and
aromatic plants, spices and plantation crops like coconut, cashew nut, cocoa,
etc. Since the mid eighties, the Government identified horticulture crops as
a means of diversification for making agriculture more profitable through
efficient land use, optimum utilisation of natural resources and creating skilled
employment for rural masses, especially women folk with the past efforts
rewarding. India has emerged as the largest producer of coconut, arecanut
cashew nut, ginger, turmeric, black pepper and the second largest producer
of fruits and vegetables. Among the new crops, kiwi, olive crops and oil palm
have been successfully introduced for commercial cultivation.
The changing scenario encourages private investment to go for hi-tech
horticulture with micro-propagation, protected cultivation, drip irrigation,
fertigation, and integrated nutrient and pest management, besides making use
of latest post-harvest measures, particularly in the case af perishable
commodities. As a result, horticulture crop production has moved from rural
confines to commercial ventures.
Fruits: A large variety of fruits are grown in India. Of these mango, banana,
citrus, pineapple, papaya, guava, sapota, jackfruit, litchi and grape among the
tropical and sub-tropical fruits; apple, pear, peach. plum. apricot, almond and
walnut among the temperate fruits and anoia, ber, pomegranate, annona" fig,

66

India 2005

phalsa among the arid zone fruits are important. India accounts for about 10
per cent of the production of fruits in the world. It leads the world in the
production of mango, banana, sapota and acid lime and has recorded highest
pwductivity in grape. Mango is the most important fruit covering about 39
per cent of the area and accounts for 23 per cent of total fruit production
in the country. India's share in the world production of mango is about 54
per cent. Citrus ranks second in area and accounts for about 10 per cent of
total fruits in the country. Limes, lemons, sweet orange and mandarin cover
bulk of the an'a under this group of fruits. Banana ranks third in area covering
about 13 per cent of the total area. However, it is first in total production
being nearly one-third of total fruit production. Moreover, India occupies the
first position in banana production of 1.23 million tonnes. The percentage
share of production of fruit like guava, papaya is about four per cent and
litchi is about one per cent. The arid zones of the country are potential areas
for fruits like anoia, ber, pomegranate, annona, etc. There has been a steady
increase in the area and production of these fruits particularly anoia, ber and
pomegranate in the country as a result of identification and development of
suitable varieties and production technologies. In addition of these, date palm
and fig cultivation is also finding favour in suitable areas.
Vegetables: More than 40 kinds of vegetables belonging to different groups,
namely, solanaceous, cucurbitaceous, leguminous, cruciferous (cole crops),
root crops and leafy vegetables are grown in India in tropical, sub-tropical
and temperate regions. Important vegetabll' crops grown in the country are
tomato, onion, brinjaJ, cabbage, cauliflower, okra and peas. India is next only
to China in area and production of vegetables. India contributes about 13 per
cent to the world vegetable production and occupies first position in the
production of cauliflower, second in onion and third in cabbage in the world.
Spices : Spices constitute an important group of horticulture crops. India is
known as the home of spices and produces a wide variety of spices like black
pepper, cardamom (small and large), ginger, garlic, turmeric, chilly and a large
variety of tree and seed spices. Among various spices grown in the country,
chilly is the most widely grown spice with a share in the total production
of 33.7 per cent. The demand for chilly as a spice and its oleoresins as a natural
colouring material is growing in the domestic as well as international market.
Turmeric has a share of 21.6 per cent in the total production of spices.
Plantation Crops: Other than tea, coffee and rubber, rest of the crops which
are grown for commercial purpose in the country are covered under plantation
crops which include coconut, arecanut, cashewnut, cocoa, etc.
Coconut is an important crop and about 10 million people depend on
coconut cultivation, processing and related activities. In India, coconut is
grown mainly along the coastal states of the country and also in the NorthEast region. The coir obtained from processing coconut husk is of high
commercial value. Besides coir, shell based products have also gained entry

Agriculture

67

into the national and international markets. The coir pith made into brick like
structure is now used for raising horticultural plants especially in greenhouses.
Cashewnut assumes an important place in the Indian economy. India
produces 45 per cent of the global production of cashew. Besides, India is
the largest producer, processor, consumer and exporter of cashew in the world.
Flowers: Though flower cultivation has been practiced in India since time
immemorial, floriculture has blossomed into a viable business only in recent
years. Considering the potential this sector has in generating income and
employment opportunities, promoting greater involvement of women and
enhancement of exports, it has bt..>en identified as an Extreme Focus Area for
exports by the Government. India is known for growing traditional flowers
such as jasmine, marigold, chrysanthemum, tuberose, crossandra and aster.
Commercial cultivation of cut flowers such as rose, orchids, gladiolus,
carnation, anthurium, gerbera and lilies has also become popular.
Medicinal and Aromatic Plants: This sub-sector has high potential for health
management considering the importance being given to herbal products.
Concerted efforts have been made to consume the bio-diversity of the herbal
wealth by establishing 226 hectares of herbal gardens along with 16 nurseries
to provide quality planting material. Besides, 335 hectares have been developed
for production of quality planting material of aromatic plants. More than 6,000
demonstration-cum-seed production plots have been established in the farmer's
field.
Bee-Keeping: In order to maximise horticulture production, honey bees can
be used as an important input for increasing the productivity of horticultural
crops through cross pollination. About 85 per cent crop plants are crosspollinated as they need to receive pollen from other plants of the same species
with the help of external agents. Honey bees wax and royal jelly give
additional income to the farmers.
MACRO MANAGEMENT OF AGRICULTURE
Agriculture being a State subject, the primary responsibility for increasing
agriculture production, enhancing productivity and exploring the vast untapped
potential of the sector rests with the States. The role of the Centre is to
compliment and supplement their efforts in a catalytic way so that the efforts
of the States in agricultural development yield quick results, and benefits
percolate down to the poorest farmers. The Macro Management of Agriculture
Scheme which was evolved by integrating 27 identified schemes is being
implemented in all States/Union Territories since 2000-01. Under this scheme,
the states have been given flexibility to develop and pursue activities on the
basis of their regional priorities.
The new approach ensures that the funds placed at the disposal of the
States are not diverted for non-developmental and non-agriculture purposes
and are utilised for development of agricultural through specific interventions.

India 2005

68

The central assistance is released in lump sum on the basis of the proposals
contained in the Work Plan. The State Agriculture Department which is the
Nodal Department for the Macro Management Scheme further allocates funds
to other Departments/implementing Agencies in their States. The position
regarding Budget Estimates, Revised Estimates and Expenditure incurred
under the scheme for the years 2000-01 to 2003-04 is indicated below:(Rs

Year

Budget Estimate

Revised Estimate

in Crore)

Expenditure

2000-01

490.00

381.88

381.88

2001-02

850.00

680.49

678.62

2002-03

736.86

597.00

597.59

2003-04

700.00

648.60

648.49

NA11JRAL RESOURCE MANAGEMENT

Soil and Water Conservation measures are one of the essential inputs for
increasing agricultural output in the country. These programmes were first
launched during the First Plan. From the very beginning, emphasis has been
on development of technology for problem identificatio", enactment of
appropriate legislation and constitution of policy coordination bodies. While
conceptual framework of soil and water conservation activities has been
changed, concept of programmes has undergone considerable revision during
successive Five-Year Plans.
The Centrally-sponsored Scheme of Soil Conservation in the catchments
of River Valley Project (RVP) was started in Third Five-Year Plan. Subsequently
another scheme of Flood-Prone Rivers (FPR) was started in the Sixth Five Year
Plan keeping in view the magnitude of floods in the year 1978. Now, both
schemes have been clubbed together during the Ninth Five-Year Plan on
recommendation of Expenditure Finance Committee and further subsumed
under Macro Management Mode since November 2000. Under the programme
for the catchment management of River Valley Projects and Flood Prone
Rivers, 53 catchments are covered, spread over 27 States. The tota] catchment
area is %.14 mha with Priority Area needing urgent treatment in 26 mha.
Out of this 5.86 mha have been treated till 2003-04 with an expenditure of
Rs 1,743 crore.
A Centrally-sponsored Scheme of reclamation of alkali soil was taken
up in Punjab, Haryana and Uttar Pradesh during the Seventh Five-Year Plan.
The scheme was further extended to the States of Gujarat, Madhya Pradesh
and Rajasthan during the Eighth Five-Year Plan. During Ninth Plan extension
of the scheme to all other States of India was approved where alkali soil
problems exist as per scientific parameter. The scheme aims at improving
physical conditions and productivity status of alkali soils for restoring

Agriculture

69

optimum crop production. The major components of the scheme include,

assured irrigation water, on farm development works like land levelling,
bunding and ploughing, community drainage system, application of soil
amendment organic manures, etc. An area of 0.62 mha out of 3.5 mha of alkali
land has been reclaimed till the end of 2003-04 in the country. The scheme
at present, stands subsumed in Macro Management Scheme.
Another project for alkali land reclamation and development has been
taken up in D.P. and Bihar with the help of EEC at an estimated cost of
Rs 85.80 crore out of which Government of India's share is Rs 6.88 crore. The
project envisages reclaiming 15,000 hectares (ha) of alkali soils during its life
span of seven years. An area of 30,825 ha has been reclaimed till the end
2000-01 (terminal year).
of
The scheme of Watershed Development Project in Shifting Cultivation
Areas (WOPSCA) was launched in seven north-eastern States during the
Eighth Plan from 1994-95 with 100 per cent Central assistance to the State
Plan. The scheme aims at overall development of jhum areas on watershed
basis. During Eighth Plan an amount of Rs 40.826 crore was released to the
States of north-east region and 0.67 lakh ha area was treated through treatment
packages. During Ninth Plan up to March 2002, 1.5 lakh ha have been treated
with an expenditure of Rs 82 crore (against the approved programme and
unspent balance of Eighth Plan). The new guidelines of the scheme on the
basis of new watershed to common approach has been effective from
November 2000 in the revised cost norms of Rs 10,000 per ha on net treatable
area basis with additional activities and improved institutional mechanism.
During Tenth Plan, an area of 0.4 lakh ha has been treated at an expenditure
of Rs 40 crore up to 2003-04.
RAINFED FARMING

Rainfed Farming is complex, diverse and risk prone and is characterised by

low levels of productivity and low input uses. The Government has accorded
high priority to the holistic and sustainable development of rainfed areas
through integrated watershed development approach. The key attributes of
the watershed approach are conservation of rain water and optimisation of
soil and water resources in a sustainable and cost-effective mode. Improved
moisture management increases ~e productivity of improved seeds and
fertiliser. So conservation and productivity enhancing measures become
complementary.
A National Watershed Development project for Rainfed Area (NWDPRA)
was launched in 1990-91 in 25 states and two UTs. The project was continued
during Ninth Five Year Plan in 28 states inclusive of three newly created states
and two UTs with the purpose of increasing agriculture productivity and
production in rainfed areas. The guidelines for NWDPRA has been radically
restructured by retaining the technical strength and incorporating community
participation. The watershed development programme is now planned,
implemented., monitored and maintained by watershed communities. During

70

India 2005

Ninth Plan, an area of 27.66 lakh ha has been treated. Now the scheme of
NWDPRA has been subsumed in macro-management of agriculture. The
scheme is being continued for implementation during Ninth Plan under the
revised guidelines, with people's partidpation, covering more than 6,000
micro-watersheds. It is estimated to develop an area of about 20 lakh ha
during Tenth plan.
A Watershed Development Fund (WDF) has been established at NABARD
with the objectiw of integrated watershed development in 100 priority
districts of 18 States through participatory approach. A total corpus of WDF
is Rs 200 crore. Under WDF two-third of amount is given for loan-based
projects and one-third of amount is given for grant-based project in the State.
A number of externally aided projects are also under implementation on
watershed approach, which covers an area of about 1.5 lakh ha. annually.

INTEGRATED NUTRIENT MANAGEMENT (lNM)

The main concern of INM Division is to ensure adequate availability of quality
fertilizers to farmers through periodical demand assessment and timely
supply through ECA allocations, promoting soil test based judicious and
balanced use of chemical fertilizers in conjunction with organic manures and
bio-fertilizers, promotion of organic farrning and ensuring quality control of
fertilizers through implementation of Fertilizer (Control) Order, 1985, to give
additional thrust on integrated USf' of all sources of plant nutrients through
chemical fertilisers and organic manures, etc.

India~ is the third largest producer and consumer of fertilizers in the

world after China and USA. Against 16.09 million tonnes of fertilizer nutrients
(NPK) consumed during 2002-03, the nutrient consumption is estimated to
17.47 million tonnes during 2003-04. The consumption of major fertilisers,
namely, Urea, DAp, MOp, SSP and Complexes are estimated to be 20.00, 6.05,
2.01, 2.61 and 5.12 million tonnes respectively during 2003-04. India is 100
per cent self-sufficient in respect of urea and about 95 per cent in case of
DAP. All-India average fertiliser consumption is ~2.l kg per ha though there
is wide variation from State to State from 181 kg in Punjab, 167 kg in Haryana
to less than 10 kg in States like Arunachal Pradesh, Nagaland, Sikkim, etc.
Considering the skewed pattern of fertilizer use, Government is promoting
the balanced and integrated use of fertilizer nutrients through various
initiatives. As a result, NPK consumption ratio has improved to 6.5:2.5:1
during 2003-04 from 7.0:2.7:1 during 2000-01.
The Government is implementing a Centrally-sponsored Scheme 'Balanced
and Integrated Use C1f Fertilizers' to popularise soil test based judidous
application of fertilisers in combination with organic manures and biofertilisers.
In addition finandal assistance was provided for setting up / strengthening of
new soil testing laboratories for advising farmers on major and micro nutrients
application, training and demonstration on balanced use of fertilisers and also

Agriculture

71

production of useful organic manure from city waste / garbage. It has now been
subsumed in macro-management Scheme and the State / UTs can implement the
programmes through their Work Plans.
The Central Sector scheme 'National Project on Development and Use of
Biofertilisers' provides assistance for setting up of new production capacities
of different types of biofertilisers, its promotion and quality control through a
National Bio-fertiliser Development Centre at Ghaziabad and its six regional
centres located at Jabalpur, Nagpur, Bangalore, Bhubaneswar, Hissar and
lmphal. There are presently around 125 biofertiliser production units in the
country with an annual capacity of 18,000 tonnes of different types of
biofertilisers and the annual production is about 10,000 metric tonnes. This
scheme will be subsumed into new scheme on '~~tional_P._rQie.ct...on._Organic
Farmi~ during the remaining period of Tenth Plan. It has been formulated
forthe production, promotion, market development and regulation of organic
farming in the country with an outlay of Rs 63.26 crore during the remaining
period of the plan.
The Government ensures the quality of fertilizers through Fertiliser
Control Order (FCO) issued under Essential Commodities Act to regulate the
price, trade, policy and distribution of fertiliswers in the country. The State
Governments are the executive agencies to implement the various provisions
of FCO. The Order strictly prohibits the manufacture, import and sale of any
fertiliser, which does not meet the prescribed standards. The Central Fertilizer
Quality Control and Training Institute at Faridabad and its three Regional
centres located at Navi Mumbai, Chcnnai and Kalyani have been set up for
inspection and analysis of imported and indigenous fertilisers, giving technical
advice and providing training on quality control to State enforcement agencies
and Analysts. The Institute has also developed a quick testing kit for onthe-spot detection of adulteration in fertilizers.
The FCO has been recently amended to make it more user-friendly and
ensuring effective enforcement. The important amendments include provision
for repackaging of cut or tom fertiliser bags and reprocessing of damaged
fertiliser due to natural calamities and provisions for commercial trials of
provisional fertilizers. Accordingly; National Fertilizers Limited (NFL), 'IndoGulf Fertilisers and Shri Ram Fertilisers have been permitted to manufacture
neem-coated urea for commercial trials and IFFCO has been permitted to
manufacture fortified complex fertilisers with Boron and Zinc. Printing of
MRP on all fertilisers including urea is now mandatory and also the printing
of month and year of manufacture of fertilizer import.

Price of fertilizers and Concession/Subsidy: The price of urea fertilizer is

fixed by the Government. To ensure adequate availability of fertilizers to
,farmers at reasonable rates, subsidy is provided by Government. Urea, the

India 2005

72

,--------------- .- . _---- -_._.._ - - - - - - - - - - - - - ,

Agricultural Production
(In Lakh Tonnes)
,~ .

'

WHEAT

~i""~

---~~~~~.*~~~~~,

"_-1..albI1.
"
tlO
140

1.

PULSES

RICE

~~--~~.

, SUGARCANE

100

120
~IG

laG

OK

Est/"."s II on5 August 20tU

73

Agriculture

most consumed fertilizer, is subsidised under the New Urea Pricing Scheme,
whereas P and K fertilizers, which are decontrolled, are covered under
Concession Scheme. The existing scheme for special freight subsidy has been
continued for supplies to the north eastern States and Jammu and Kashmir.
The price of Urea continues to remain same during 2003-04 at Rs 4,830 per
MT. Rate of concession on sale of decontrolled P and K fertilizers during
2003-04 (as on 31 March 2004) and MRP is as under:
(Rs. per MTs)
Fertilizer Product

Concession

MRP

DAP (Indigenous)

3979

9350

DAP (Imported)

2346

9350

MOP

2964

4455

SSP

650

Price of SSP is fixed by

State Governments
themselves

INTEGRATED PEST MANAGEMENT

Plant Protection continues to play a significant role in achieving targets of
crop production. The major thrust areas of plant protection are promotion of
Integrated Pest Management, ensuring availability of safe and quality pesticides
for sustaining crop production from the ravages of pests and diseases,
steamlining the quarantine measures for accelerating the introduction of new
high-yielding crop varieties, besides eliminating the chances of entry of exotic
pests and for human resource development including empowerment of
women in plant protection skills.
Presently, two Central Sector Plan Schemes are being implemented to
achieve -the main objectives of Plant Protection strategy in the country :

Strengthening the Modernisation- of Pest Matulgement A1'1'f'Oach in India:

This scheme has the following four components: (i) Promotion of Integrated
Pest Management; (ti) Locust Control and Research; (iii) Tr'aining in Plant
Protection; and (iv) Implementation of Insecticides Act.

Promotion of Integrated Pest Matulgement : Keeping in view the ill effects

of chemical pesticides such as development of pest resistance, pest resurgence,
outbreak of secondary pests, pesticide residues in food, fodder, soil, air and
water resulting in human health hazards and ecological imbalances, Government
has adopted Integrated Pest Management (!PM) as cardinal principle and
main plank of plant protection strategy in the country. !PM is an eco-friendly

74

India 2005

approach aimed at minimum use of chemical pesticides by employing available

alternative methods for pest control like cultural, mechanical and biological use
of bio-pesticides.
As one of the main features of this programme, emphasis has been laid
on human resource development. In addition, FAO-EU Project on Cotton IPM
in Asia has also organised Training of Facilitators (ToF) courses on Cotton.
To enhance the production of bio-control agents/bio-pesticides,
Government earmarked Rs 1,500 lakh as grants-in-aid during Eighth and
Ninth Plans for the establishment of 30 State Bio-control Laboratories.
With the adoption of IPM approach, consumption of pesticides has come
down from 72,133 MT (tech. grade) during 1991-92 to 41,020 MT (tech. grade)
during 2003-04 and there is consistent increase in use of bio-pesticides which
are environmentally safe. In some of the States, farmers have stopped using
chemical pesticides and have adopted organic farming.

Locust Control and Research : The Locust Warning Organisation, Jodhpur

with its five locust circle offices and 23 locust outposts monitors two lakh
sq km Scheduled Desert Area in Rajasthan, Gujarat and Haryana for locust
surveillance and control. Ouring 2003-04, an area of 240 lakh ha. has been
surveyed and 24 locust bulletins have been issued. Close liaison is being
maintained with other locust-prone countries and, the FAO to keep watch over
possible locust invasion.

*'

Training in Plant Protection : Until 1966, there was no training facility in

India to cater to the needs of the States. To bridge this gap, the National Plant
Protection Training Institute was established in 1966 at Hyderabad (A~dhra
PraaesFif'The Iilstittitellas been recognised as a Regional Training Centre for
Plant Protection by Food and Agricultural Organisation of the United Nation')
and also as an Advancr'd Centre for training in Plant Protection Technology
by the World Bank. The Institute has conducted 843 courses and trained 15,553
officers/ officials including 216 foreigners up to 2003-04.
Implementation of Insecticides Act : Pesticides are commonly used in crop
protection measures for sustaining food production. These are also used for
the control of vector borne diseases. Besides, being toxic by their nature, they
are hazardous to human beings and ecosystem. The residues enter into food
chain and cause harm to human and animal health. Keeping this in view, their
import, manufacture, sale and use, etc., are being regulated under the
Insecticides Act, 1%8 and the Rules framed thereunder.
The Central Government has constituted Central Insecticides Board to
advise the Central and State Governments on technical matters arising out
of the administration of this Act. Director General, Health Services is the
Chairman of the Board with 29 members. The Central Government has
constituted Registration Committee to register pesticides after examining their

Agriculture

75

formulae verifying their efficacy and safety to human beings, animals and
environment.
The Government has also set up a Central Insectiddes Laboratory with
the major objectives of pre and post registration verification of the properties,
performance and hazards of pesticides and the proposed use claimed by the
manufacturers. To supplement the resources of the States/UTs in the analysis
of pesticides, two Regional Pesticide Testing Laboratories have also been set
up at Chandigarh and Kanpur with an analysis capadty of 900 samples per
annum each ..
PLANT QUARANTINE FACILITIES
Plant Quarantine activities are intended to prevent and control/contain exotic
pests and diseases into the country by adoption of suitable domestic plant
quarantine measures. In order to achieve this goal, the provisions of
Destructive Insects and Pests Act, 1914 and the Plants Quarantine (Regulation
of Import into India) Order, 2003 are being implemented. Besides, the work
pertaining to Post Entry Quarantine inspection/ surveillance in respect of the
identified plants/planting material in pursuance of Plant Quarantine Order,
2003 assigned to the Inspection Authorities who are the scientists of the State
Agricultural Universities. The Export certification and issuance of phytosanitary
certificate is undertaken by the Plant Quarantine Stations. Five Regional Plant
Quarantine Stations at New Delhi, Mumbai, Chennai, Kolkata and Amritsar
have been strengthened under UNDP Project in view of increased import and
export of agricultural commodities under WTO provision. Out of 33 Plant
Quarantine Stations, 10 Stations are located at Airport, 10 Stations at Seaports
and 13 Stations at Land Frontiers.
AGRICULTURAL MECHANISATION
Strategies and programmes have been directed towards replacement of
traditional and inefficient implements by improved ones, enabling the farmers
to own tractors, power tillers, harvesters and other machines, availability of
custom services, support services of human resource development, testing and
evaluation and research and development. A large industrial base for
manufacturing of the agricultural machines has also been developed.
Introduction of technolOgically advanced equipment through extension and
demonstration besides institutional credit has also been taken up. Equipments
for resource conservation have also been adopted by the farmers.
Under various Government sponsored schemes like Macro Management
of Agriculture, On Farm Water Management, Technology Mission for Oilseeds
and Pulses, Technology Mission on Horticulture and the Technology Mission
on Cotton, financial assistance is provided to the farmers for the purchase
of identified agricultural implements and machines.

Farm Machinery Training and Testing Institutes : Farm Machinery Training

and Testing Institutes (FMT&TIs) have been established at Budni (Madhya
Pradesh), Hissar (Haryana), Garladinne (Andhra Pradesh) and at Biswanath

76

India 2005

Chariali (Assam) having capacity to train 5,000 personnel annually on various

aspects of agricultural mechanisation. These institutes also undertake testing
and performance evaluation of agricultural machines including tractors in
accordance with the national and international standards. The new programme
on outsourcing of training for farmers through identified institutes in the
States has also been, recently, approved. This would enable to train large
number of farmers at near by institutions.

State Agro Industries Corporations : Seventeen State Agro Industries

Corporations, the Joint Sector Companies have been promoted by the
Government of India and by the certain State Governments. The objectives
of these Corporations envisage manufacture and distribution of agricultural
machines, distribution of agri-inputs, promotion and execution of agro-based
industries and providing technical services and guidance to the farmers and
others. The Government of India's share in six State Agro Industries
Corporations, namely, Tamil Nadu, Kamataka, Rajasthan, Gujarat, Uttar
Pradesh and West Bengal have been disinvested in favour of the respective
State Governments.
Legislative Framework: The Dangerous Machines (Regulation) Act, 1983,
came into force with effect from 14 September 1983. The act provides for the
regulation of trade and commerce and production, supply and use of products
of any industry producing dangerous machines with a view to securing the
welfare of persons operating any machine and for payment of compensation
for death or bodily injury suffered while operating any such machine. Power
threshers used for threshing of the agricultural crops have been brought under
the ambit of thi.... Act. The Government of India have notified the Dangerous
Machines (Regulation) Rule, 1985 laying down the specifications for the
feeding chutes and for installation of the power threshers.
EXTENSION AcrIVITIES
The Department of Agriculture and Cooperation lays down major policy
guidelines on extension matters and the Directorate of Extension implements
specific programmes and activities. The thrust areas include extension reforms,
augmentation of mass-media support, agriclinic-agribusiness centres and
other extension programmes, etc.
SEEDS
Seed is a critical and basic input for enhancing agricultural production and
pfoductivity in different agro-climatic regions. Indian seed programme largely
adheres to the limited generation system for seed multiplication. The system
recognises three generations, namely, breeder, foundation and certified seeds
and provides adequate safeguards for quality assurance in the seed
multiplication chain to maintain the purity of variety as it flows from the
breeders to the farmers. The level of certified/ quality seed distributed to the
farmers during 1999-2000 to 2002-03, anticipated during 2003-04 and the target
for 2004-05 is given below :

77

Agriculture

(in IIIkh quint.'s)

Year

Certified / quality seed distribution

1999-2000

87.98

2000-01

86.27

2001-02

91.80

2002-03

93.00

2003-04

117.00 (Anticipated)

2004-05

127.40 (Target)

Structure of seed industry: Indian seed programme includes the participation

of Central and State Governments, Indian Council of Agricultural Research
(lCAR), State Agricultural Universities (SAU) system, public sector, cooperative
sector and private sector institutions. Seed sector in India consists of two
national level corporations, i.e., National Seed Corporation (NSC) and State
Farm Corporation of India (SFCI), 13 State ~ Corporations (SSCs) and
about 100 major sector seed companies. For quality control and certification,
there are 22 State Seed Certification Agencies (SSCAs) and 101 State Seed
Testing Laboratories (SSTLs). The private sector has started to play a
significant role in the production and distribution of seeds. However, the
organised seed sector particularly for food crops cereals continues to be
dominated by the public sector.
Legislative Framework. and Policy: The Seeds Act, 1966 provides for the
legislative framework for regulation of quality of seeds sold in the country.
The Central Seed Committee (esc) and the Central Seed Certification Board
(CSCB) are apex agencies set up under the Act to deal with all matters relating
to administration of the Act and quality control of seeds. The proposed Seeds
Bill, 2004 in replacement of the Seeds Act, 1966 is currently under consideration.
In order to encourage export of seeds in the interest of farmers, the
procedure of export of seeds has been simplified. Seeds of various crops have
been placed under Open General Licence (OGL) except seeds of wild varieties,
germplasms, breeder seeds, jute seeds and onion seeds, which are on restricted
list under the new Export and Import Policy for 2002-07.
Establishment and maintenance of Seed Bank Scheme: This Department
launched a Central Sector Scheme during the Ninth Plan period. The main
objective of the scheme is to make available seeds for any contingent situation
arising out of natural calamity, etc., and also to develop necessary infrastructure
for storage of seed. The scheme is being implemented through National Seeds
Corporation, State Faxms Corporation of India and 12 State Seeds Corporations.
The scheme is being continued during Tenth Plan period and participation
from those states is also being solicited where seed corporations have not been
established.

78

India 2005

Legislation on Plant Varieties and Farmers Right Protection: In order to fulfil

the obligations under TRIPS Agreement of the World Trade Organisation (WTO)
which India has ratified, the DAC has enacted legislation on a sui generis system
for protection of plant varieties and Farmer' Rights. In order to provide
necessary back up support for enactment of above legislation, a Central Scheme
for implementation of PVP Legislation has been formulated. The required rules
and regulations under the Plant Varieties and Farmers' Rights Act have been
notified in 2003. The Protection and Plant Varieties and Farmers' Rights
Authority envisaged under the Act will be set up shortly.
AGRICULTURAL MARKETING

The Directorate of Marketing and Inspection (OM!) extends support to the

Central and State Governments on agricultural marketing policies and
programmes and implement various schemes under them. It has its Head
Office at Faridabad, Branch Head Office at Nagpur, 11 regional offices, 32 sub~
offices and 23 Regional Agmark laboratories spread allover the country.
Tht' DMI administers the Agricultural Produce Grading and Marketing
Act, 1937 as amended in 1986. The grade standards notified under the Act
are popularly known as Agmark standards and such standards have been
formulated and notified under the Act in respect of 165 agricultural and allied
produce. As a result of special efforts initiated to increase grading under
Agmark, 319 new packers were enrolled during 2003-04. During 2003-04
commodities valued at Rs 32 crore were graded for export. During this period,
agricultural commodities worth Rs 4,100 crore were graded under Agmark
for domestic trade.
The DMl undertakes marketing, research, surveys and in-depth studies
of marketing system for various agricultural commodities in the country and
suggests remedial measures. The Directorate has conducted country level
studies on estimation of marketable surplus and post-harvest losses of 12
foodgrains. Reports for all the 12 foodgrains, viz., Paddy, Wheat, Jowar, Bajra,
Maize, Red Gram Lentil, Green Gram, Ragi, Bengal Gram, Barley and Black
Gram are under finalisation. Reports for remaining food grains are under
preparation. So far, DM] has brought out 328 reports on marketing of various
agricultural and allied commodities. Under Research Grants Scheme, 33
research studies have been carried out on subjects related to agricultural
marketing. The DM! is implementing the Meat Food Products Order, 1973
which stipulates ensuring quality control and hygienic manufacturing conditions
of meat food products for domestic consumption. A total of 200 lice~R are
operating under the Order. Meat food products valued at Rs 34.37 crure were
manufactured during 2003-04 by thtse licensed manufacturers. The scheme
of MFPO, 1973 has since been transferred to Ministry of Food Processing
Industries from 2 April 2004.
The Directorate is implementing a Central Sector Scheme 'Market
Research and Information Network' to establish a nationwide network for
speedy collection and dissemination of market information. Under this
scheme, 735 important agricultural produce markets and 48 offices of State

Agriculture

79

Agricultural Marketing Boards/INpartments as well as 27 DMI offices (total

810 nodes) have been provided with computer facilities and internet connectivity
till 2002-03.

With a view to create scientific storage capacity with allied facilities in

rural areas to meet the requirements of farmers for storing farm produce,
processed farm produce, consumer articles and agricultural inputs, promotion
of grading, standardisation and quality control of agricultural produce to
improve their marketability, prevention of distress sale immediately after
harvest by providing the facility of pledge financing and marketing credit and
to strengthen agricultural marketing infrastructure in the country, another new
scheme 'Construction of rural godowns' is also being implemented by the
Directorate. Under the scheme, 25 per cent back-ended subsidy on the proje<.."'t
costs have bt.>en provided for the purpose. The scheme which was initially
introduced for two years (2001-02 to 2002-(3) was extended upto 30 September
2004. Under the scheme, so far 4,380 number of projects involving storage
capacity of 90.87 lakh tonnes have been sanctioned by NABARD/NCDC for
creation of rural god owns. Besides, projects with capacity of 0.66 lakh tonnes
were sanctioned by NCDC for renovation of godowns.
Ch. Charan Singh National Institute of Agricultural Marketing (NIAM):
Ch. Charan Singh National Institute of Agricultural Marketing started
functioning at Jaipur (Rajasthan) with effect from 8 August 1988. The institute
has been imparting training to senior and middle level executives of
agricultural and horticultural departments, agro industries, corporations, state
marketing boards, Agricultural Produce Marketing Committees and apex level
cooperatives, Commodity board, export houses recognised by Agricultural
and Processed Food Products Export Development AuthOrity (APEDA),
Commercial banks and non-governmental organisations. Besides these clients,
the institute also imparts training to farmers on marketing management.
The Institute is managed by a Governing Body under the Chairmanship
of Minister for Agriculture and an Executive Committee under the
Chairmanship of Secretary, Department of Agriculture and Cooperation.

COOPERATION
COOPERATIVE REFORMS

The Cooperative movement in India traces its origin to the agriculture and
allied sector and was evolved as " mechanism for pooling meager resources
of the people with a view to providing them the advantages of economics
of scale. After independence, the cooperatives were considered as part of the
strategy of planned economic development. The cooperatives are today at the
cross road of existence particularly in view of the fast emerging scenario of
economic liberalisation and globalisation. These institutions in general suffer
from resource constraint, poor governance and management, inefficiency and
inviability. The cooperative reforms are, therefore, vital to the future of the
cooperatives.

80

India 2005

Autonomy of Cooperatives: The new Multi-State Cooperative Societies (MSCS)

Act, 2002 broad based on the recommendations of the Ch. Brahm Perkash
Committee has been enacted by the Parliament and brought into force from 19
August 2002. The Act aims at providing full functional autonomy and
democratic management to the societies. The Government's powers to give
direction and suppression of the Board has been restricted to such societies
in which the Government holds 51 per cent or more equity. The societies are
free to raise resources by receiving deposits, raising loans and grants. Under
the Act, the federal cooperatives have more responsibilities and the disputes
would be settled through arbitration at the choice of the society. Auditor would
be appointed by the society itself.
The NCDC (Amendment) Act, 2002 : The NCDC (Amendment) Act, 2002 has
been enacted and has come into effect from 16 September 2002. Now, NCOC
shall be financing more activities allied to agriculture, like animal husbandry
products such as milk, meat, skin, wool, etc., to help augment the earnings in
the rural areas. Similarly, service sector and industrial cooperatives including
goods produced by the cottage and village industries will come within the
purview of the NCDC. The NCDC would also be able to undertake direct
financing of cooperatives against reasonable security and without State / Central
Government guarantee.
National Policy on Cooperatives: National Policy on Cooperatives has been
formulated by the Government in consultation with States/Union Territories.
The objective of the National Policy is to facilitate all round development of
the cooperatives in the country. Under the policy, cooperatives would be
provided necessary support, encouragement and assistance, so as to ensure
that they work as autonomous, self-reliant and democratically managed
institutions accountable to their members and make a significant contribution
to the national economy, particularly in areas which require people's
participation and community efforts.
The policy envisages, inter-alia, that the regulatory role of the Government
will be mainly limited to the conduct of timely elections, audit of the
cooperative societies and measures to safeguard the interest of the members
and other stake holders in the cooperatives. There shall, however, be no
interference in the management and working of the cooperatives. The
Government recognises the apolitical nature of cooperatives.
A Plan of Action for implementation of the Policy has been formulated.
The Action Plan envisages amendments of State Cooperative Acts on the lines
of model cooperative act suggested by Ch. Brahm Perkash Committee and
removal of restrictive provisions of the cooperative acts. State Governments
are being persuaded to undertake reforms in cooperative sector in accordance
with the Action Plan.

ANIMAL HUSBANDRY

Animal Husbandry and Dairy Development plays a prominent role in the

Agriculture

81

rural economy in supplementing the income of rural households, particularly,

the landless and small and marginal farmers. It also provides subsidiary
occupation in semi-urban areas and more so for people living in hilly, tribal
and drought prone areas where crop output may not sustain the family.
Animal husbandry output constitutes about 30 per cent of the country's
agricultural output.
India is endowed with the largest livestock population in the world. It
accounts for 57 per cent of the world's buffalo population and 15 per cent
of the cattle population. According to Livestock Census (1997), the country
has about 19.9 crore cattle and nine crore buffaloes as compared to 15.5 crore
cattle and 4.3 crore buffaloes in 1951.
CONTRIBUTION OF LIVESTOCK SECTOR TO FOOD BASKET
The contribution of livestock sector to the food basket in the form of milk,
eggs, and meat has been immense in fulfilling the animal protein requirement
of ever-growing human population. The present availability of human protein
in an Indian diet is 10 gm per person per day, as against a world average
of 25 gm. However, keeping in view the growing population, the animal
protein availability has to increase at least two-fold for maintaining the
nutritional level of growing children and nursing mothers in India.
Milk Production : During past five year plans, several measures have been
initiated by the Government to increase the productivity of livestock, which
has resulted in significant increase in the milk production to the level of 86.7
million tormes at the end of 2002-03 as compared to 17 million tormes in 195051. India has become the largest producer of milk in the world. The per capita
availability of milk is estimated to have increased to 230 gm per day during
2002-03 from 200 gm per day in 1996-97.
Egg Production : Poultry development in the country has shown steady

progress over the years. Egg production during 2002-03 was 39.8 billion
compared to only 11 billion over two decades ago. The target of Egg
Production was 41 billion during 2003-04. Currently, India ranks fifth in egg
production in the world.
Wool Production : The wool production in the country was 50.7 million kg
during 2002-03 as against 38 million kg in 1984-85. Wool Production target
for 2003-04 was set at 51.8 million kg.

Other Livestock Products : Livestock sector not only provides essential

protein and nutritious human diet through milk, eggs, meat, etc., but also
plays an important role in utilisation of non-edible agricultural by-products.
Livestock also provides raw material/by products such as hides and skins,
blooc:t. bone, fat, etc.
CATILE AND BUFFALO DEVELOPMENT
India possesses 27 acknowledged indigenous breeds of cattle and seven breeds
of buffaloes. Various Central and Centrally-Sponsored schemes are being

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India 2005

implemented for genetic improvement of cattle and buffalo with a view to

enhance the per capita availability of consumption of milk through increased
milk production. Efforts are also made to protect and preserve the indigenous
cattle and buffalo in their native tract, which are facing threat of extinction.
The elite animals are selected and registered on the basis of their performance
for production of superior pedigree bulls, bull-mothers, frozen semen and
frozen embryos for future breeding improvements.
The National Project for Cattle and Buffalo Breeding envisages 100 per
cent grant-in-aid to implementing agencies. The Project will also promote
about 14,000 private artificial insemination (AI) practitioners and buildup an
annual frozen semen production capacity of 66 million doses. Since inception,
24 States have been assisted with Rs 159.11 crore for participating in the
Project.
A Central Herd Registration Scheme for identification and location of
superior germplasm of cattle and buffaloes, propagation of superior germ
stock, regulating the sale and purchase, help in formation of breeders' society
and to meet r('quirement of superior bulls in different parts of the country
is also being implemented. The Government has established Central Herd
Registration Unit in four breeding tracts, i.e., Rohtak, Ahmedabad, Ongole and
Ajmer. 92 milk-recording centres are functioning to register these breeds of
cattle, viz., Gir, Kankrej, Haryana and Ongole and in Buffalo Jasffrabadi,
Mehsani, Murrah and Surti.
The seven Central cattle breeding farms at Suratgarh (Rajasthan),
Chiplima and Sunabeda (Orissa), Dhamrod (Gujarat), Hessarghatta (Kamataka),
Alamadi (Tamil Nadu) and Andeshnagar (Uttar Pradesh) are engaged in
scientific breeding programmes of cattle and buffaloes and production of high
pedigreed bulls and frozen semen for cattle /buffalo breeding projects. During
2003-04, these farms produced 307 bull calves and supplied 157 high
pedigreed bulls for use under Artificial Insemination Programme in various
parts of the country. The Central Frozen Semen Production and Training
Institute, Hessarghatta (Karnataka) produced 10.81 lakh doses and supplied
10.28 lakh doses of frozen semen of high pedigreed Holstein Friesian, Jersey,
crossbred and Murrah bulls to different states for their AI programmes.

POULTRY DEVELOPMENT
Poultry Development in India has made impressive progress during the last
three decades. At present, India ranks among the top five nations in egg
production in the world.
The private organisations are very well placed to meet the requirement
of high producing birds suited only for the intensive organised poultry sector,
but the unorganised sector is still neglected. It has been decided to club all
the existing 13 Central Poultry Development Organisations region-wise into
four Centres to converge the poultry development activities in a single

Agriculture

83

window system. Their major mandate now is only to encourage backyard / rural
poultry.
During 2003-04,0.61 lakh of parent stock chicks were supplied by Central
Poultry Breeding Farms and 0.99 lakh ducklings were produced at Central Duck
Breeding Farm. Further, around 4,059 feed samples were analysed at Regional
Feed Analytical Laboratory and 1,027 farmers were trained at different Central
Poultry Development Organisations in various areas of poultry production.
A new Centrally-sponsored scheme called Assistance to State Poultry
Farms is being implemented during the Tenth Plan where one time assistance
is provided to suitably strengthen the farms in terms of hatching, brooding
and rearing of the birds with provision for feed mill and their quality
monitoring and in-house disease diagnostic facilities. The total allocation for
the scheme during Tenth Plan is R<; 25 crore. During the first two years of
the Tenth Plan, Rs 16,]4 crore was released for assisting 31 farms.
SHEEP DEVELOPMENT
There are about 57.49 million sheep and 122.72 million goats in the country.
About five million households in the country are engaged in the rearing of
small ruminants (sheep, goats and rabbits) and other allied activities. The
estimated wool production was about 460 lakh kg during 2003-04.
Central Sheep Breeding Farm, Hissar is producing acclimatised exotic/
cross bred superior quality rams. The farm has supplied 510 rams and 50 ewes
during 2003-04 to different states.
CONSERVATION OF THREATENED BREEDS
The population of some of the pure bred small ruminants, equines, pigs and
pack animals has come down considerably and such breeds have come to the
category of threatened breeds in the country. The farms or the farmers unit
in their respective breeding tract are to be established with 100 per cent
Central assistance for breeds of these animals wherein their population is less
than 10,000 with active participation of State Governments and NGOs, etc.
A new Centrally-Sponsored Scheme for conservation of such threatened
breeds has been started during Tenth Plan with a budget outlay of Rs 1,500
lakh and a sum of Rs 345.50 lakh has been released to the States of Gujarat,
Karnataka, Punjab, Rajasthan, Tripura and Mizoram during first two years of
Tenth Plan under the scheme. There is a budget provision of Rs 600 lakh under
the scheme during 2004-05.
MEAT PRODUCTIONIPROCESSING AND EXPORT
A Centrally-sponsored Scheme "Assistance to States for modernisation/
improvement of abattoirs and establishment of carcass utilisation centres and
primary hide flaying units" was implemented. The objectives of the Scheme
were to provide wholesome and hygienic meat, gainful utilisation of animal
by-products, prevention of environmental pollution and cruelty to animals.

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India 2005

Under the scheme, financial assistance of Rs 1.97 crore for projects at Nammakal
(Tamil Nadu) and Raipur (Chhattisgarh) was provided and Rs one crore
revalidated for Amritsar (Punjab) during 2003-04. The scheme has been weeded
out from 31 March 2004.
PIGGERY DEVELOPMENT

There are more than 128 lakh pigs in the country of which approximately 14.5
per cent are graded and exotic variety. There are about 158 pig breeding farms
in the country run by the State Governments / Union Territories. Exotic breeds
like Large White Yorkshire, Hampshire and Landrace are maintained at these
farms.
A Centrally-sponsored Scheme namely, Assistance to State for Integrated
Piggery Development, was implemented for strengthening the pig breeding
farms in the States during Ninth Plan. During the period, an amount of
Rs. 1,521.87 lakh was released for strengthening the pig breeding farms in
various States. The scheme has been discontinued at the start of Tenth Plan.
FEED AND FODDER DEVELOPMENT

For improvement of vast livestock resources through proper scientific methods,

availability of nutritious feed and fodder is essential. To make available
scientific fodder production technology, seven regional stations have been
established in different agro-climatic zones. These are engaged in production
and propagation of certified quality fodder seeds. During 2003-04, these
stations produced 130.80 MT of fodder seeds and conducted 1,880 field
demonstrations of new fodder varieties.
A Central fodder seed production farm at Hessarghatta (Karnataka)
produced 41.40 MT seeds of different varieties of fodder grasses/legume seeds
during 2003-04 and conducted 150 field demonstrations of new fodder
varieties. A Central minikit demonstration programme of fodder crops is
under implementation for popularising high-yielding fodder varieties on a
large scale.
Besides, a Centrally-Sponsored Scheme, viz., Assistance to State for Feed
and Fodder Development is being implemented for establishment of fodder
banks and enrichment of straw and cellulosic waste. This scheme has been
weeded out since 2002-03 but two components of the above scheme, i.e.,
establishment of fodder banks and enrichment of straw was revived up to
March 2004 on 75 per cent and 100 per cent Central share basis respectively.
During 2003-04, financial assistance of Rs 123.02 lakh has been provided
for enrichment of straw / cellulosic waste and Rs 76.99 lakh provided for
establishment of fodder bank.
DAIRY DEVELOPMENT

The Indian Dairy Industry acquired substantial growth during the Eighth Plan,
achieving an annual output of over 69 million tonnes of milk. India's milk
output has not only placed the industry first in the world, but also represents

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85

sustained growth in the availability of milk and milk products. The Government
implemented two schemes in the dairy sector during 2003-04.

(a) Integrated Dairy Development Projects in Non-operation Flood, Hilly

and Backward Areas : The scheme launched during the Eighth Plan period
is being continued during Tenth Plan with an outlay of Rs 175 crore. So far,
53 projects with an outlay of Rs 292.19 crore have been sanctioned in 23 States
and one UT. A sum of Rs 209.12 crore has been released to various State
governments up to 31 March 2004 and 149 districts have been covered. The
scheme has benefitted about 6.6 lakh farm families and organised about 11,059
Village Level Dairy Cooperative Societies till 31 March 2004. On the basis of
the recommendations of the evaluation studies, the process of modifying the
scheme has been initiated.
Assistance to Cooperative: The scheme aims at revitalising the sick dairy
cooperative unions at the district level and Cooperative federations at the state
level. The scheme is being continued during the Tenth Plan with an outlay
of Rs 130 crore. During the year 2002-03, an amount of Rs 16.65 crore was
released by the Government fOi' rehabilitation of 15 sick milk unions against
budgetary allocation of Rs 15 crore. The allocation for the year 2004-05 has
been fixed at Rs 15 crore for continuation of the scheme.
(b)

(d Milk and Milk Product Order-1992 : The Government notified the Milk
and Milk Product Order in June 1992. As per the proVisions of this order, any
person/dairy plant handling more than 10,000 litres per day of milk or 500
MT of milk solids per annum needs to be registered with the registering
authority appointed by the Central Government.

The Order was amended from time to time as per the decision taken by
Milk and Milk Product Advisory Board and as per request received from State
Governments. As per the amendment dated 26 March 2002, the provisions of
assigning milk shed has been done away with. The power of granting
Registration to the units up to two lakh litres per day processing capacity
where entire activities of units lies within a state has been delegated to
concerned State Registering Authority.

So far, Central Registering AuthOrity and State Registering Authority

have granted registration to 700 units with a combined capacity of 870.64 lakh
litres per day of milk up to 31 March 2004.
FISHERIES

The Department of Animal Husbandry and Dairying has been undertaking

various production, input supply and infrastructure development programme
and welfare-oriented schemes besides formulating/initiating appropriate
policies to increase production and productivity in the Fisheries Sector.

India 2005

86
Fish production since 1980-81 is shown in the table below:

(lakh tmlnes)

Marine

Inland

Total

1980-81

15.55

8.87

24.42

1990-91

23.00

15.36

38.36

1991-92

24.47

17.10

41.57

1992-93

25.76

17.89

43.65

1993-94

26.49

19.95

46.44

1':194-95

26.92

20.97

47.89

1995-96

27.07

22.42

49.49

1996-97

29.67

23.81

53.48

1997-98

29.50

24.38

53.88

1998-99

26.96

26.02

52.98

1999-2000

28.52

28.23

56.75

2000-01

28.11

28.45

56.56

2001-02

28.30

31.20

59.56

2002-03(P)

29.90

32.10

62.00

2003-04(1')

29.41

34.58

63.99

Year

P: Provisional

The fisheries sector has been one of the major contributors of foreign
exchange earnings through export. Export of fish and fishery products has
grown manifold over the years. From about 15,700 tormes valued at Rs 3.92
crore in 1961-62, exports have grown to 5.21 lakh tonnes valued Rs 6,793.05
crore in 2002-03.

at

DEVELOPMENT OF INLAND FISHERIES AND AQUACULTURE

The ongoing scheme of Development of Freshwater Aquaculture and Integrated
Coastal Aquaculture have been combined with four new programmes on
Development of Coldwater Fish Culture, Development of Water-logged Area
and Derelki water bodies into Aquaculture Estates, Use of Inland Saline /
Alkaline Soil for Aquaculture and programme for augmenting the Productivity
of Reservoirs. This scheme broadly has two components - Aquaculture and
Inland Capture Fisheries.

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87

DEVELOPMENT OF FRESHWATER AQUACULTURE

The Government has been implementing an important programme in inland
sector, viz., Development of Freshwater Aquaculture through the Fish Farmers
Development Agencies (FFDAs). A network of 429 FFDAs covering all
potential districts in the country are in operation. During 2002-03, about
23,032 ha of water area was brought under fish culture and 27,250 fish farmers
were trained in improved aquaculture practices through FFDAs.
DEVELOPMENT OF BRACKISH WATER AQUACULTURE
With the objective of utilising the country's vast brackishwater area for shrimp
culture, an area of about 26,375 ha. was developed for shrimp culture till 200203 through 39 Brackishwater Fish Farmers Development Agencies (BFDAs) set
up in the coastal areas of the country. The agencies have also trained 340
Fishers in improved practices of shrimp culture during 2002-03. Presently
about 50 per cent of shrimp exported from the country is from aquaculture.
DEVELOPMENT OF MARINE FISHERIES
The Government is providing subsidy to poor fishermen for motorising their
traditional craft, which increases the fishing areas and frequency of operation
with consequent increase in catch and earnings of fishermen. About 37,950
traditional crafts have been motorised so far. The Government has also been
operating a scheme of reimbursing the Central excise duty on HSD oil used
by fishing vessels below 20 metre length to offset the operational cost, incurred
by small mechanised fishing boat operators.
DEVELOPMENT OF FISHING HARBOUR
The Government has been implementing a scheme with the objective of
providing infrastructure facilities for safe landing and berthing to the fishing
vessels. Since inception of the scheme, six major fishing harbours viz., Cochin,
Chennai, Visakhapatnam, Roychowk, Paradip and Sassoon Dock (Mumbai),
38 minor fishing harbours and 142 fish landing centres have been constructed.
14 minor fishing harbours and 46 fish landing centres are at various stages
of construction.
WELFARE PROGRAMMES FOR TRADITIONAL FISHERMEN
Important programmes for the welfare of traditional fishermen are (i) Group
Accident Insurance Scheme for active fishermen; (ii) Development of Model
Fishermen Villages; and (iii) Saving-cum-Relief Scheme.
The fishermen identified or registered with the States/UTs are insured
for Rs 50,000 against death or permanent total disability and Rs 25,000 against
partial disability. About 10.54 lakh fishermen were insured during 2003-04.
Under the Development of Model Fishermen Villages, 10,172 houses have
been sanctioned for the benefit of fishermen in 2003-04. Under the Savingcum-Relief component, financial assistance is provided to the fishermen
during the lean fishing season. About 4.l41akh fishermen were assisted under
the saving-cum-relief programme in 2003-04.

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India 2005

SPECIALISED INSTITUTES
The Central Institute of Fisheries, Nautical and Engineering Training, Kochi,
with units at Chennai and Visakhapatnam, aims at making available sufficient
number of operators of deep-sea fishing vessels and technicians for shore
establishments. Integrated Fisheries Project, Kochi, envisages processing,
popularising and test marketing of unconventional varieties of fish. The
Central Institute of Coastal Engineering for Fisheries, Bangalore, is engaged
in techno-economic feasibility study for location of fishing harbour sites.
Fishery Survey of India (FSI) is the nodal organisation responsible for survey
and assessment of fishery resources under the Indian Exclusive Economic
Zone (EEZ).

AGRICULTURAL RESEARCH EDUCATION

The Department of Agricultural Research and Education (DARE) Ministry of
Agriculture is responsible for coordinating research and educational activities
in agriculture, animal husbandry and fisheries. Besides, it helps to bring about
inter-departmental and inter-institutional collaboration with national and
international agencies engaged in the same and allied fields. Department
provides government support, service and linkage to the Indian Council of
Agricultural Research (ICAR).
INDIAN COUNCIL OF AGRICULTURAL RESEARCH
ICAR has played a pivotal role in developing agricultural technologies, input
material and critical scientific base leading to self-sufficiency in food. The ICAR
is an autonomous apex body at the national level, which promotes science and
technology programmes in the areas of agricultural research, education and
extension education. The Council is directly involved in undertaking
fundamental as well as applied researches in the traditional and frontier areas
to offer solutions to problems relating to the conservation and management of
resources and productivity of crops, animals, fisheries, etc.
AGRICULTURAL RESEARCH
The research set-up of ICAR comprises 52 Central Institutes, 32 National
Research Centres, 12 Project Directorates and 91 All India Coordinated Research
Projects (AICRPs). For higher education in agriculture and allied fields there
are four deemed to be universities, 37 State Agricultural Universities (SAUs)
and one Central Agricultural University at Imphal.
CROP SCIENCE
The year 2003-04 received normal monsoon in over 90 per cent of the country.
Fortunately, during the year there was no major incidence of drought, disease
or insect pests. As a result of favourable weather conditions and timely and
adequate availability of inputs such as seeds, fertilizers, pesticides, feeds,
vaccines, medicines etc., India's foodgrains production is estimated to be 210.78
million tonnes.
Under Crop Improvement and Management germplasm being basic and
essential, 11,889 accessions of crops and their wild relatives were collected

Agriculture

89

through 186 explorations in different parts of the country. Besides, 33,092

accessions of diverse crops from various countries including 25 of transgenic
crops, were introduced and 45,093 accessions were processed for quarantine
clearance. The national Seed Genebank has been enriched with 20,453 accessions
and over 200 phyto-sanitary certificates were issued for export material. More
than 600 varieties and elite germplasm lines of 15 crops were fingerprinted.
Also, marker was identified to determine rate of ripening in tomato.
During the year, 19 varieties and one hybrid in rice, seven varieties in
wheat, one variety in barley, 11 cultivars in maize, two hybrids in sorghum,
three open-pollinated varieties and one hybrid in pearl millet were released for
their commercial cultivation in food crops for various agm-ecologies. Rice
variety Nidhi was found suitable for direct seeding under puddle conditions.
Besides, 10 varieties of wheat, two varieties of barley, five hybrids of pearl
millet and one variety of proso millet were identified for release. One variety
of foxtail millet was notified for cultivation in Rajasthan. In forage crops, five
varieties, one each in cowpea, tall fescue grass, Setaria grass, pearl millet and
berseem were released for cultivation.
Among pulses three varieties of pigeonpea, two varieties each of chickpea
and urdbean and one variety each of field pea and lentil were released/identified
for cultivation. Two varieties of arid legumes were identified for pre-release
seed multiplication. In oilst'eds, two varieties each of groundnut and rapeseedmustard, four of sesame, and one variety each of niger, soybean, sunflower,
safflower and linseed have been released / identified for cultivation. A stemrot-resistant groundnut genotype (CS 19) of interspecific origin was developed
for the first time. In commercial crops, six varieties/hybrids of cotton and five
varieties of sugarcane were released/notified/identified for commercial
cultivation. One variety of tobacco was also recommended for release.
The national test guidelines were framed for distinctness, Uniformity and
Stability (DUS) testing for all major crops. An atlas was prepared for quality
parameters of wheat. Other major achievements in the crop sector include:
production of 3,067 tonnes of breeder seed of different crops, popularisation of
rice-fhickpea system swer rice-wheat system for higher economical returns,
effective control of Kamal bunt on wheat with two foliar sprays of Trichoderma
viride, standardisation of simplified growth-room screening technique for
studying BotrJI.tis grex,-rot in detached spike of castor and development of
Expert System BIORICE for bio-control of rice pest.
HORTICULTURAL CROPS

In Improvement and Management of Horticultural Crops, 15 accessions of

guava and seven wine varieties and four natural mutants of grape were added
to gene bank. In banana, a novel technique to feed bunches through distal end
was developed to increase bunch weight. Packaging technology for banana
was standardised for export purpose. Embryo-rescue technique was
standardised in grape. Besides, improvement in sheJHife of grapes was noted
with, pre-harvest treatment of chitosan alone or in combination with
Trichodermll. In papaya, adoption o~ plant density of 555 trees per ha resulted
in 48 per cent more yield.
--.:-.

India 2005

90

In arid zone fruits, major accomplishments include collection of 12 new

frost-resistant genotypes of aotlia from mid-hills region of Himachal Pradesh,
introduction of six varieties of pomegranate and three varieties of fig, and
recommendation of two varieties (Kaithali and Gola) of ber and one variety
(APK 1) of pomegranate for commercial cultivation in rainfed Vertisols in
Arupukkotai region. Collection of apricot selection Suka, having red cheeks,
was a major finding in temperate fruits.
In vegetable crops, one variety and two hybrids of tomato and two varieties
of garlic were released for cultivation. One variety and one hybrid of chili; one
variety each of cowpea, pea and French bean; two varieties of okra; one hybrid
each of tomato, capsicum, bitter-gourd and cauliflower; and two hybrids of
brinjal were identified for release. Other major accomplishments include:
standardisation of technology producing quality tomato and capsicum and
discovery of a new species of be omo virus causin leaf curl in tomato. In
potato, four hybrids have been recommen ed or release an ~ssions
added to gerrnplasm. In tropical tuber crops, 65 new accessions/collection
have been added to germplasm.
In cassava, two triploid clones with higher extractable starch have been
identified for industrial use. In mushroom, 2] new wild mushroom species
have been collected. Oyster mushroom could be successfully grown on wheat
straw, rice straw and on leaves and stalk of maize. A cryopreservation technique
for preservation of Volvariella and Morchdla cultures was developed.
Six varieties of rose and five of gladiolus were released. About 450 species
belonging to 93 genera of orchids have been collected. The concerted research
efforts resulted in release of two high-yielding and high-quality ginger varieties
(IISR Mahima and IISR Rejatha) and one nutmeg clonal selection (IISR
Vishwashree) for cuitivation in Kerala and addition of accessions of ginger,
cardamom, turmeric, Garcinia, Citlnamomum and of nine seed spices to
germplasm.
NATURAL RESOURCE MANAGEMENT

In Natural ResourcE' Managl'ment, soil resource atlases of 24 districts for

sustainable land use, and soil erosion maps of Rajasthan, Madhya Pradesh and
Chhattisgarh were brought out, besides identification of important benchmark
soil series in four districts of Assam. Sustainable cropping system in rice fallows
of Brahmaputra valley of Jorhat, Assam, and critical areas for prioritised land
treatments in watersheds were identified. Mixed biofertilizer formulations
consisting of nitrogen-fixing organisms and phosphate-solubilising bacteria
(PSB) proved superior to individual inoculants.

_.

The water resource development proved beneficial for cyclone-affected

farmers of coastal Orissa. Other salient achievements under water management
had been improvement in yield and quality of banana under drip irrigation,
gross benefit of Rs 5,070 per ha under zero tillage compared to conventional
method in wheat and usefulness of fish pond-cum-reservoir for economised
and multiple uses of water. The research conducted in saline coastal soils led
to the maintenance of rice and wheat yields even at 50 per cent NPK when

Agriculture

91

used in conjunction with farmyaro manure (FYM) or green manuring,

development of technologies for skimming and recharging freshwater in saline
groundwater regions, identification of caust.~s and remedial measures for
resodification of reclaimed soils in Uttar Pradesh, development of organic
practices for rice-based cropping systems in saline coastal soils and reclamation
of alkali Vertisols under rainfed condition.
Conservation furrow plots could store 4-37 per cent additional soil
moisture and resulted in higher bean and set'd yit'ld of castor and pigeonpea.
Tolerance of sorghum to biotic strcss could be tmhanced through genetic
manipulation. Development of a new technique of growing mattype nursery
for rice transplanters, improvement in nitrogl'n and phosphorus-uSt-' efficiency
through inclusion of forage cowpea in rice-wht.'at system and enhancement in
yield, soil organic carbon and available P and K with soil application of ferrous
sulphate, zinc sulphate and uft'a along with Asrlrr~i/lu!> awamoral' and
Trichoderma viridi in rice-wheat system are the salient features of crop
production research.
A low-cost passivl' cold chamber was developed for short-duration
preservation of vegetables and fruits. Spraying 2, 4-0 at the rate of 1.5-2.0 kg
per ha, glyphosate at the rate of 1.5 kg per ha on actively growing plants or
new soots of Ipomoea carnea, the most problematic weed, proved effective in
its control. An integrated management package for lantana had been developed.
In agroforestry research, 80 per cent success with in-sitll veneer grafting in
August-September and 25 per cent success with chip budding in August was
recorded when these were done on two or three years old plants of chironjee.
High survival, increased tree height, canopy diameter, dry leaf fodder and fuel
wood of Albizia procera were noticed during seventh year in natural grassland.
In ncem, 276 accessions were collected from eight states. On-line computerised
database was also developed for system of agroforestry in India. A website
named "Crop-Weather Outlook" has been developed under AICRPAM and
operates from CRIDA, Hyderabad. The site provides useful information on
crop-weather conditions in the country.

ANIMAL SCIENCE
Under Livestock and Poultry Improvement and Management, database on
Indian livestock resources, infrastructure, animal production, products and
utilisation was made available in a single user-friendly package. Po_!ymorphism
of growth hormone gene inJ(aran Fries cattle and Murrah buffalo was revealed
for the first time in developing a strategy tor genetic selection ot dairy bulls.
Immune competence of purelines ot poultry was profiled, primarily for breeding
purposes. Buffalo ovary-released protein was identified as a marker for oestrous
and pregnancy detection. Genetic distance measures revealed that Nali and
Chokla sheep are genetically closer, while Carole sht..>ep is a distinct population.
Since Nicobari and Kashmir Favorolla poultry populations showed recent
genetic bottleneck, these require their special conservation efforts. For the first
time, neighbour-joining tree ot Indian goat breeds with wild goats could be
constructed.

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India 2005

Aseel and Kadakanath poultry breeds were utilised to develop CARINirbheek and CARI-Shyama for backyard poultry. A preliminary attempt was
made to grow embryonic stem cells in buffalo. Double window embryo culture
system for production of turkey embryos was developed for first time in the
world. This technique could be used for transgenesis, production of chimeric
birds and production of pharmaceutical proteins with egg gene promoters. The
technique will help in conserving rare and endangered poultry species.
The Frieswal cows recorded 3,570 kg milk yield in 300 days with peak
yield of 14.27 kg and lactation length 315 days. Average milk yield of Murrah
buffaloes was 2,928 kg. Genetic improvement studies are in progress in Hariana,
Gir, Ongole and tharparker breeds. In sheep, Chokla, Marwari and Magra are
being studied for carpet wool production and Madras Red, Ganjam,
Muzaffamagari, Nellore and Deccani for mutton production. In Barbari and
Jamunapari goats, genetic improvement and sire evaluation are in progress.
The National Research Centre on Pigs was established at Rain, Guwahati,
Assam. The Caribro-Tropicana birds ranked third in nineteenth Random Sample
Poultry Performance Test (RSPPT), Gurgaon, showing 1,750 gram body weight
by seven weeks of age. The CARl layer bird strain achieved top position in
hen-housed egg production at 31st RSPPT, Hessaraghatta, Bangalore. The
CARIBRO-Dhanraj birds could achieve 1,875 gram body weight at seven weeks
of age.
Complete nucleotide (nt) sequence of foot-and-mouth disease virus Asia
1 vaccine strain (IND 491/97) was determined. The National Animal Disease
Referral Expert System was evolved for monitoring and forecasting animal
diseases. Immunised kids showed reduction in growth of Theileria annulata.
Molecular techniques could be developed to unravel mysteries of disease
outbreak in natural conditions. Low volume saponified HS (Hemorrhagic
septicemia) vaccine for cattle and buffalo was prepared and is under trial in
a large number of cattle. Primer for identification of gastro-intestinal parasites
was developed for the first time. In pigs, diagnostic test was developed for
porcine reproductive and respiratory syndrome (PRSS). An indigenous killed
vaccine using EHV-l strain was developed, showing better immune response
than commercially available vaccine. PCR-ELISA was developed for differential
diagnosis of capri-pox virus. PCR was found to be the test of choice in
surveillance and monitoring of camel surra or trypanosomiasis. Non-isotropic
DNA probe was developed for detection of swine fever. A primer pair was
synthesised for using in duck plague virus detection by PCR. Diagnostic kits
were developed for rinderpest and pest des petits ruminants (PPR) and live
attenuated vaccine for PPR. Recombinant antigen-based diagnostics could be
developed for detection of bovine viral diarrhoea virus.
The potential dry-matter availability of animal feed resources increased
in Kamataka. Grain : straw ratio was found useful in determining dry fodder
availability. Cellulase gene from Ruminococus alb us could be cloned in
Escherichia coli. Feeding of chaffed maize improved the body weight in
crossbreed calves. Orphinomyces sp. (C 14) proved a better ruminal fungal
isolate in improving nutritive value of wheat straw-based diet. Rag; straw was
found to be a better source of dry matter, crude protein and fibre than paddy

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straw. A technology was developed for preparation of chelate minerals. Nutritonal

remedies were suggested for sustainable cattle milk production.
Citric acid and neem bark powders were used to prevent fungal infestation
of stored feeds. Substitution of barley by Prosopis juliflora in sheep diet proved
satisfactory. Feed pellets for feeding goats were prepared using leaves of
subabul, neem, ber, peepul, siris, mulberry and desi babul. Milk Replacer
containing 24 per cent crude protein was found economical than mother's milk
for finisher goat kids. Approximately 15 species of rumen ciliates have been
identified in mithun.
The nutrient requirement was updated for various avian species.
Methionine-supplemented red sorghum diet improved the growth in birds.
Feed supplement zeosil plus could counter the adverse effects of aflatoxin.
Measured feeding of metabolizable energy in grower phase regulated body
weight gain and helped in achieving optimum performance. Krishibro chicks
performed normal even with low lysine diets. Dietary supplementation of
natural agents minimized production losses due to aflatoxin in feeds and
improved cellular immune response, dressing yields and liver fat content.
Recommendation of reduced Ca and P in birds' diet resulted in decreased feed
cost without affecting the growth or bone mineralisation. Seasame and sunflower
protein-meal resulted in lean broiler meat.
A laboratory procedure was evolved to accurately predict fertility of bulls
in making selection procedure more effective. Improvement in cryopreservation

method of semen could reduce rejection rate of ejaculates by 20 per cent. Milk
progesterone profile successfully demonstrated the reproduction status in
buffalo and it was utilised for timely remedy of reproductive disorder in animal.
Estrus synchronisation in Malpura ewes resulted in 75 per cent solutions. The
scientific management practices resulted in reduced calf mortality in loose
housing system. Artificial insemination (AI) and pregnancy diagnosis could be
perfected in equines. Yaks were successfully induced into heat. Enzyme immuno
assay was evolved for determination of growth hormone in mithun. Antibiotics
reduced the bacterial count in foam of quails. Birds immunised against vaso
active intestinal peptide showed higher egg production.
Whey-based jaljeera drink was standardised and its dried form was also
developed. Inulin at the rate of three per cent resulted in better growth and
add production in symbiotic yogurt preparation. Immuno--modulatory property
of dahi stimulates immune system and protects against enteric infection. Twinscrew plasticizer was developed for production of ghee-based butter. A model
was evolved for poremembrane formation by dass IIa bacteriocins from grampositive lactic acid bacteria. Low fat/sugar-free frozen dessert could be
developed for diabetic patients. Energy auditing was done for identifying
potential for improvement in energy effidency in model diary plant. Assays
were standardised for detection of antibiotic residues in milk. A process was
standardised for soft cheese preparation from camel milk. Customer response
to chevon pickle indicated that it has good market potential.

FISHERY SCIENCE
In Fish Production and Processing, marine fish landings improved by 13.5 per

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cent over previous year. Under inland sector, a multimatrix index of fish
assemblages was developed for fish species in river Hooghly. Hilsa continued
to be a major component, contributing 10.4 per cent of total yield from Hoogly
t'stuary. The GIS was developed on water bodies for eight districts of Bihar
and a digital map was prepared for six districts of Rajasthan.
In culture fisheries, important research achievements during the year were
seed production in Macrobrachium rosenbergi/ using underground saline water
with necessary ionic amendments at Rohtak, Haryana, breeding of Labeo
fimiJriatLis using a portable hatchery at Bangalnre and in-vitro cell culture of
freshwater pearl mussel. Research efforts in the field of cold water fisheries led
to development of natural lake as conservation site for the threatened mahseer
species Tor r1Lltitora, evolvement of eye ova of rainbow trout under warmer
conditions for the first time, and advancement in maturing period of grass and
silver carps with harmone treatment and raiSing water temperature at high
altitude. The work conducted under brackish water aquaculture led to successful
testing of shrimp feed in a farmer's pond, development of a latex aggulation
kit for the dt'tl'ction of white spot virus in shrimps and preparation of immune
index to access the health status of tiger shrimp.
In maricuiture, natural spawning of groupers Epinephe/us tauvitla and E.
polypllf'kadion could be observed under captive conditions. In five species of
damsel fishes, viz., filamentous tail black damsel, yellow tail damsel, blue
damsel, peacock damsel and Indian dascyllus, broodstocks were successfully
developed. Identification of molecular markers and natural genetic variation
in important fish species, karyological characterisation of fish species endemic
to Western Ghats, development of sperm cryopreservation protocols for Ompok
ma/anricus, and diagnostic capability of PCR in detecting exotic pathogens for
fish quarantine were some salient accomplishments in fish genetic resources.
AGRICULTURAL ENGINEERING

In Agricultural Engineering and Technology, a number of implements such

as lug-wheel puddler, seven-row till-plant machine, pneumatic planter for
vegetables, two-row vegetable transplanter, zero-till seed-cum-fertilizer drill
for wheat, MPKV muli-crop planter, semi-automatic potato planter and flailtype forage harvester-cum-chopper were developed as tractor-operated
machines. Zero-till drill machine, orchard sprayer, ~UAT ground nut digger
and chipper shredder for cotton-stalks and other agricultural waste were the
implements fabricated under power-tiller-operated machinery. In case of selfpropelled machinery, two-row cultivator for biasi operation, riding type (10row) rice seeder and power weeders were developed. Likewise, CIAE planter
for groundnut, maize, pigeonpea, sorghum and other oilseed and pulse crops
under animal-drawn machinery, and indigenous seed counter, high-capacity
pigeonpea thresher, maize dehusker-cum-sheller and ANGRAU sugarcane leaf
stripper under stationery machinery were developed.
A strength measurement set-up for agricultural workers and antivibration devices for comfort of power-tiller and tractor operators were
evolved. A low-cost and energy-saving fruit and vegetable preservator has

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been fabricated that increases self-life by 7-12 days and reduces handling
damages. In post-harvest engineering technology, prototype of cleaner to
arrest dust emission in dal mills, process for making fermented banana
beverage, double stage filtration system for sugarcane juice and electronic
thermometer for striking point in jaggery making were developed. The
technology of making ginger-and-vanilla-flavoured chips of coconut was
transferred to coconut entrepreneurs.
The work carried out under cotton technology led to the development
of light-weight cotton-gin which can be operated by remote as well. For the
first time, coir-cotton composite yam was developed through friction spinning
technology for industrial uses. In lac technology, successful propagation of
Flemingia semialata - a recently identified potential bushy host, identification
of rare variants of Bufea monosperma and development of water-thinnable
coating compositions for cementitious surfaces were the important findings.
Salient achievements in jute technology include successful blending of coir
with jute and of sisal with jute, besides the development of bagasse-based
gasifier, improved cook stove for low pollution and roof integrated unglazed
solar-air heater and solar refrigerator. Pantnagar adjustable collar harness and
Allahabad harness were modified to provide comfort to the animals during
work. Technologies of soy-processing, manufacturing package for serrated
sickle, etc., have been transferred to users. For commercialisation, 31 technologies
have been assigned by the ICAR to the National Research Development
Corporation.

AGRICULTURAL EDUCATION

Under Agricultural Human Resource Developmellt, Model Course Curricula

and Syllabi of eight UG and 44 PG programmes were developed and provided
to all agricultural universities along with academic regulations, and majority
of SAUs and Deemed Universities (DUs) have implemented these courses.
During the year, 127 students from 22 countries were admitted in various
degree programmes in ICAR-DUs/SAUs. In Centres of Advanced Studies and
Summer / Winter Schools / Short Courses, 4,250 scientists I faculty members
were trained in diverse subjects of agricultural and allied fields. For the award
of National Talent Scholarships (NTS), 218 candidates were recommended on
the basis of their merit. Junior Research Fellowships were awarded to 438
candidates and Senior Research Fellowships to 202 candidates.
The rural women and rural girls were trained in scientific child-care and
also to undertake activities such as candle preparation, mushroom cultivation,
etc. As a part of its HRD activities, the NAARM organised 36 programmes
through which 828 scientists were trained with respect to agricultural research
and education management.

SOCIAL SOENCES AND POLICIES

In Social Sciences and Policies, a study has shown that the demand for
livestock products has increased with improved rural income, indicating a
need for faster growth in production of livestock products. Coping mechanism

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was evolved to reduce the impact of climate-induced natural disasters.

Integrated technology package was prepared for food security in tribal,
backward and hilly areas and initial impacts were assessed.
AGRICULTURAL EXTENSION

Technology Assessment, Rf:finement and Transfer is accomplished through

Krishi Vigyan Kendras (KVKs), Institution-Village Linkage Programme (IVLP)
and Agricultural Technology Information Centres (ATICs). There are 376
KVKs, 70 IVLP Centres, and 44 ATICs. The ATiCs provided technological
products, diagnostic services and technology information to farmers and endusers. During the year, 19,880 training programmes were organised benefiting
4,70,000 farmers and farm women, 1,10,000 rural youth and 60,911 participants.
The production potential of newly released technologies in oilseeds,
pulses and other crops were demonstrated through front-line demonstrations.
The KVKs identified more than 330 technologies for on-farm testing to assess
their impact on location-specific basis in different farming systems. Also
quality seed / planting material of cereals, pulses, oilseeds, vegetables, fruits
and spices, and livestock strains were produced by KVKs and provided to
farmers.
The TICs organised 216 training courses, benefitting more than 4,100
participants. From the inception of Mission Mode Project, more than 4,000
ITKs were documented and three publications were brought out in the form
of hwentory (~f ITK in Agriculture. Validation and promotion of IPM
technologies were carried out in selected crops in different agro-ecological
regions.
Eight projects were initiated nearly on all aspects of role of Women in
Agriculture. The Krishi Vigyan Kendras trained nearly 2,00,000 farm women,
girls and women extension workers. Innovative marketing outlets were
developed for self-help groups. Cafeteria for women in agriculture was
d{veloped and offered to states to guide the development of new programmes
for women in agriculture. Five components of the All-India Co-ordinated
Research Project on Home Science moved towards empowerment of rural
women and their main achievements are : mobilisation of self-help groups
and creation of learning environment, strengthening empowerment process,
and assessment of empowerment gains for women.
RESEARCH FOR TRIBAL AND HILLY AREAS

In agricultural research planned especially for Tn'baJ and HiJ1 Regions, nine
varieties of crops were released and one variety each of wheat, finger millet
and amamath identified at the Vivekananda Parvatiya Krishi Anusandhan
Shala, Almora, for release in North-westem/Uttaranchal hills. Identification
of eight rice genotypes for multiple-disease tolerance, isolation of a new strain
of bacterium (Yersinia sp.) from infected white-grub larvae and development
of Vivek thresher-rum-pearler for mandUil and madira had been the other
significant findings.

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The work conducted at the ICAR Research Complex for NEH Region,
Umiam, led to development of ten guava hybrids for cultivation in mid-hills
of North-eastem hills region. Rich contents of vitamins and minerals were
found in young shoots of edible bamboo. A methodology was developed for
boar semen preservation. Dies and fixtures were developed for fabrications
of wheel hand hoe, octagonal maize sheller and other tools.
At the Central Agricultural Research Institute, Port Blair, a protocol was
developed in rice varieties compatible for other indica varieties for developing
transgenic plants with economically important genes. Five varieties of rice
could be identified for large scale cultivation under humid tropics of Bay
Islands. Cultivation of capsicum, Beans and tomato was found economically
viable under protected conditions. Other achievements were the successful
control of mastitis, enteritis and hump sore in cattles, development of synthetic
layer suitable for backyard farming in Bay Islands, standardisation of dairy
calves management for hot and humid climate, successful breeding of clawn
fish (Amphiprion permla) in captivity and first time breeding of A. sandarocinos
on formulated feed.
NATIONAL AGRICULTURAL TECHNOLOGY PROJECT
In organisation and management of the National Agricultural Technology
Project, major thrust has been put now by the Council for commercialisation
of technologies. The National Centre for Agricultural Economics and Policy
Planning (NCAP) in consultation with PIU has selected 14 technologies of
national Significance for impact assessment. A software Nitriguide has been
developed for assessing the food intake in the Indian context. The National
Academy of Agricultural Research and Management (NAARM) has launched
a web site http://naarm.ernet.in for getting jnformation on Indian agriculture.
Research on production systems resulted in 40-50 per cent additional
yield of oilseed crops owing to water-harvesting and drought-mitigation
technologies and 75-90 per cent increase in income of tribal farmers by crop
diversification. Further, new arboreum cotton varieties were identified for
dryland areas under rainted agro-ecosystem. The research conducted under
irrigated agro-ecosystem led to the release of muli-cut sorghum hybrid and
variety with enhanced nutritional quality, increase in income through zerotillage technology in wheat, development of direct sensitive micro-filter plate
enzyme-immuno-assay method for the first time for estimation of oxytocin,
LH, GH, FSH and PGFM and 3-4 times increase in productivity and
production of fish reservoir with proper stocking of bigger-size fingerlings.
In case of coastal agro-ecosystem, the major finding were popularisation of
backyard poultry for landless and marginal fanners, development of technology
for tissue-cultured pearls that can manipulate colour, hue and luster, process
for manufacturing of shell-bead nucleus using indigenous materials and
machinery and sera-diagnostic kit for early diagnosis of basal stem rot
pathogen of coconut. Control of khejri drying and development of skin
fibroblast cell technology for livestock gennplasm conservation under arid
agro-ecosystem and development of cost-effective technology for treatment of

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choes (rainy-season torrents) under hill and mountain ecosystem were the other
achievements.
In mission mode research, five special explorations were made in different
inaccessible areas and areas not surveyed earlier. Standard descriptors were
prepared for fruit and medicinal and aromatic plants. Quality St.'eds of crops
and planting material of fruit and vegetable crops, improved sheep, poultry,
pigs, quality seeds for freshwater aquaculture were supplied to farmers in tribal,
backward and hilly areas in 15 states. Thirty seven hybrids of crops having
improved quality, yield and disease resistance were released. Commercialisation
of tt>chnology for pouch processing for fish curry preparation, prototype
fabrication of 44 agricultural implements, development of eqUipment and
technology for direct sprouted rice seeding that could save 70-75 per cent in
labour, 85-90 per cent in operational energy and 80-85 per cent in operation
cost and empowerment of women in tribal, backward and hilly areas with
implements to reduce drudgeries in farm operations, were the other
accomplishments.
Under Team of Excellence (ToE), 30 genes of eight groups of viruses and
citrus viroid were cloned, sequenced and deposited in genebank. Transgenic
to tomato leaf curl virus incorporating Rf'P gene of virus was generated.
Immunity was developed in buffaloes using antibodies against bursal diseases
and infectious bronchitis. Other achievements under ToE include, development
of royal jelly extractor, mapping of pearl mussel resources in different agroecological regions of the country, preparation of a holistic quality management
programme for production and processing of wholesome meat and
establishment of three Referral Laboratories for quality assurance of plant,
animal and fishery products.
In competitive grants programme, novel abiotic stress-responsive genes
were identified and characterised in rice. Rare and high-valued medicinal
plant species in north-eastem India were propagated on large scale using
tissue-culture technology. Molecular markers for natural disease resistance in
Nicobari fowl were identified. Technologies were developed for aquaculture,
breeding and hatchery production of marine ornamental fishes. The other
significant findings were standardisation of techniques for off-season
chrysanthemum flowering in plastic greenhouse-cum-rain shelter, preparation
of computer models for optimal allocation of water and water-table management
in the existing irrigation projects, and standardisation of process for product
development, value-addition and waste utilisation in banana and plantains.
PARTNERSHIP AND LINKAGES

The DARE and ICAR have been operating Partnership and Linkages in
agricultural research an education at the national and international level
through the Memoranda of Understanding (MoUs)/Work Plans/Projects/
Training Courses/Exchange Visits, etc. One MoU and three Work Plans were
signed between the ICAR and France and Sri Lanka, Cuba and Iran for
scientific and technical co-operation in field of agriculture and education.
Under International linkages nine projects have been approved / initiated.

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INFORMATION AND PUBLICATIONS

The Directorate of Information and Publications of Agriculture (DIPA) brought

out 50 publications in English and 10 in Hindi besides regular research
monthly journals / magazines. Special issues / accent numbers of periodicals
were also brought out on the occasions/themes of World Food Day, ICAR
Foundation Day, etc. Recently, the DIPA has entered into e-publishing and
developed five CDs - DARE / ICAR Annual Report 2002-03, All-India Coordinated Research Project Database, ICAR Telephone Directory, Terminated
ICAR Ad-hoc Research Projects and ICAR Institutes' Research Project
Information. The DIPA earned R., 4.78 million through sale of its publications,
advertisements, etc., and participated in various exhibitions and displayed its
publications.
Publicity and Public Relations Unit issued materials of current importance
to various newspapers, agricultural and current affairs magazines and
electronic media to cover the achievements of the Council in agricultural
research, extension and education at national and regional levels. The video
films prepared on the activities and achievements of the Council are being
distributed to leAR institutees, KVKs, Extension Directorates of SAUs and
others for wider dissemination of information for technology led growth in
agriculture and allied sectors.

Art and Culture

THE Department of Culture in the Ministry of Information & Broadcasting

and Culture plays a vital role in the preservation and promotion of art and
culture. Its aim is to develop ways and means by which basic cultural and
aesthetic values and perceptions remain active and dynamic among the
people. It also undertakes programmes for the promotion of various
manifestations of contemporary art. The Department is a nodal agency for
commemorating significant events and celebrating centenaries of great artists.

VISUAL ARTS
LAUT KALA AKADEMI

To promote and propagate understanding of Indian art, both within and

outside the country, the Government of India established Lalit Kala Akademi
(National Akademi of Arts) at New Delhi in 1954. The Akademi has regional
centres called Rashtriya Lalit Kala Kendras at Lucknow, Kolkata, Chennai,
Garhi in New Delhi and Bhubaneswar with workshop facilities in painting,
sculpture, print-making and ceramics.
Since its inception, the Akademi has been organising national exhibitions
of contemporary Indian art with 15 national awards, each of Rs 50,000. The
46th National Exhibition of Art was held in Cochin in February 2004. Every
three years, the Akademi also organises Triennial India, an International
exhibition of contemporary art in New Delhi. The Xlth Triennial India is being
organised in January-February 2005.
The Akademi honours eminent artists and art historians every year by
electing them as Fellows of the Akademi. During 2004, Shri Bikash Bhattacharjee
was felicitated as fellow of the Akademi. To propagate Indian art outside, the
Akademi regularly participates in International Biennials and Triennials
abroad and also organises exhibitions of works of art from other countries.
To foster contracts with artists from outside, it sponsors exchange of artists
with other countries under the various Cultural Exchange Programmes and
Agreements of the Government.
The Lalit Kala Akademi accords recognition to art institutions / associations
and extends financial assistance to these bodies as well as State Akademies.
It also gives scholarships to deserving young artists of its regional centres.
Under its publication programme, the Akademi brings out monographs on
the works of Indian contemporary artists in Hindi and English and books on
contemporary, traditional, folk and tribal arts authored by eminent writers and
art critics. The Akademi also brings out bi-annual art journals, Lalit
I Kala Cotltemporary (English), LAlit Kala Atlcient (English) and Samkaleen
Kala (Hindi). Apart from these, it brings out large size multi-colour
reproductions of contemporary paintings and graphics from time to time. The

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Akademi has started a regular progldmme on research and documentation.

Scholars are given financial assistance to undertake projects in contemporary,
folk, field projects on various aspects of Indian society and culture.

PERFORMING ARTS
MUSIC

Two main schools of classical music-Hindustani and Carnatic continue to

survive through oral tradition being passed on by teachers to disciples. This
has led to the existence of family traditions called gharmtas and sampradayas.
DANCE

Dance in India has an unbroken tradition of over 2,000 years. Its themes are
derived from mythology, legends and classical literature, two main divisions
being classical and folk. Classical dance forms are based on ancient dance
discipline and have rigid rules of presentation. Important among them are
Bharata Nat yam, Katlzakali, Kathak, Manipuri, Kucltipudi and Odissi. Bharata
Natyam though it derives its roots from Tamil Nadu, has developed into an
all India form. Kathakali is a dance form of Kerala. Katlwk is a classical dance
form revitalised as a result of Mughal influence on Indian culture. Manipur
has contributed to a delicate, lyrical style of dance called Mallipuri, while
Kuchipudi is a dance form owing its origin to Andhra Pradesh. Odissi from
Orissa, once practised as a temple dance, is today widely exhibited by artistes
across the country. Folk and tribal dances are of numerous patterns.
Both classical and folk dances owe their present popularity to institutions
like Sangcet Natak Akademi and other training institutes and cultural
organisations. The Akademi gives financial assistance to cultural institutions
and awards fellowships to scholars, performers and teachers to promote
advanced study and training in different forms of dance and music, especially
those which are rare.
THEATRE

Theatre in India is as old as her music and dance. Classical theatre survives
only in some places. Folk theatre can be seen in its regional variants practically
in every region. There are also professional theatres, mainly city-Oriented.
Besides, India has a rich tradition of puppet theatre, prevalent forms being
puppets, rod puppets, glove puppets and leather puppets (shadow theatre).
There are several semi-professional and amateur theatre groups involved in
staging plays in Indian languages and in English.
.
SANGEET NATAK AKADEMI

The Sangeet Natak Akademi-India's national academy for music, dance and
drama-is the first National Academy of arts set-up by the Republic of India.
The first President of India, Dr Rajendra Prasad, inaugurated it on 28 January
1953. The Akademi's charter of functions was expanded along the original
lines in 1961, when the Sangeet Natak Akademi was reconstituted by the

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Government as a society and registered under the Societies Registration Act,

1860 (as amended in 1(57). These functions are set down in the Akadcmi's
Memorandum of Association, adopted at its registration as a society on 11
September 1961.
Since its inception thp Akademi has been functioning as the apex body
of the performing arts in the country, preserving and promoting the vast
intangiblt.> heritage of India's diverse culture expressed in the forms of music,
dance and drama. In furtherance of its objectives the Akademi coordinates
and collaborates with the govermnents and art academies of differer,t States
and Territories of the Union of India as also with major cultural institutions
in the country. The Akadcmi establishes and looks after institutions and
projects of natural importance in the fi(;'ld of performing arts. The first of their
two national institutions of dance-Jawaharlal Nehru Manipur Dance Academy
in Imphal and Kathak Kendra (National Institute of Kathak Dance) in New
Delhi - were set up in ]964 respectively. National Projects of Support to
Kutiyattam - the age-old Sanskrit theatre of Kerala - Chhau dances of eastern
India and Sattriya traditions of Assam have been launched subsequently. After
ten years of intensive work under the Kutiyattam project, the UNESCO
declared Kutiyattam as a Masterpiece of Oral and Intangible Heritage of
Humanity in May 200]. It organises performances of music, dance, and
theatre.
Thl' Akademi Awards are the highest national recognition conferred on
practicing artistes. The Akademi also confers Fellowships and Scholars, their
number being restricted to 30 living recipients. The Fellowship and Awards
carries a prize money of Rs 5{),000, a shawl and tamrapatra.
Thl-' Akademi's Audio-visual archive comprising audio/video tapes,
photographs and films is the largest in thc country and is extensively drawn
upon for research on the performing arts. The Akademi maintains a reference
library consisting of books in English, Hindi and some regional languages.
The Akademi has a gallery of musical instruments in Rabindra Bhavan, New
Delhi, where more than 200 musical instruments an' displayed. It also has
a documentation unit, which has collected and recorded works of maestros
in the field of music, dance and theatre on audio and video to help researchers
in the field.
The Sangeet Natak Akademi is presently an Autonomous Body fully
funded by the Government for implementation of it" schemes and programmes.
NATIONAL SCHOOL OF DRAMA
The National School of Drama (NSD) - one of the foremost theatre institutions
in the world and the only one of its kind in India was set up by Sangeet
Natak Akademi in 1959. Later in 1975, it became an autonomous organisation,
totally financed by Department of Culture. The objective of NSD is to train
students in all aspects of theatre, including theatre history, production, scene
design, costume design, lighting, make-up, etc. "!he training course at NSD

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is of three years' duration. Each year, 20 students are admitted to the course.
The eligible applicants for admission to the course are screened through two
stages. The Diploma of NSD is recognised by the Association of Indian
Universities as equivalent to M.A. Degree for appointment as teachers in
colleges/universities and for purposes of registration of Ph.D.
The School has a performing wing, a Repertory CompmlY which was
set up in 1964 with the dual purpose of establishing professional theatre on
one hand and continuing with the regular experimental work on the other.
The NSD has made a Significant contribution in promoting children's theatre.
Tht' Theatre-ill-Education Company (renamed as Sanskar Rang Tali) was
founded in 1989 and has been actively involved in production of plays for
children, organising summer theatre workshops in the schools of Delhi and
also promoting children's theatre through Saturday Club. Since ]998, the
School has organised National Theatre Festival for Children christened 'Jashne
Bachpan' every year. The first ever National Theatre Festival christened Bharat
R.ang Mahotsav was held from 18 March-14 April 1999 to commemorate the
50th year of India's Independence. Encouraged by the success of the first
Bharat Rnllg Mahotsllv, it has been made an annual feature.
To reach a vast majority of theatre artistes in various states with diverse
languages and cultural backgrounds, who cannot have access to the regular
training course provided by the School, a sort-term teaching and training
programme titled 'Extension Programme' was started in 1978. Under this
Programme, the School organises workshops in collaboration with the local
theatre groups / artistes and these programmes are invariably held in the local
languages. The workshops could be broadly divided under three categories,
Production Oriented Workshops, Production Oriented Children Workshops
and Teaching and Training Programmes in lheatre, etc. The School has also
set up a Regional Research Centre at Bangalore to cater the theatrical needs
of the four Southern States and Pondicherry.
Another important activity of the School is the publication of textbooks
on theatre, arrange the translation of important books on theatre from English
into Hindi.
SAHITYA AKADEMI

Sahitya Akademi is the Indian National Academy of Letters meant to promote

the cause of Indian literature through publications, translations, seminars,
workshops, cultural exchange programmes and literary meets organised all
over the country. lhe Akademi was founded in March 1954 as ari autonomous
body fully funded by the Department of Culture. It was registered as a
Society in 1956 under the Societies Registration Act, 1860. lhe Akademi has
recognised 24 languages. It has an AdviSOry Board for each of the languages
that suggests various programmes and publications in the concerned languages.
There are four Regional Boards to promote regional interaction among the
languages of the north, west, east and south. Besides its Head Office in New
Delhi, it has four offices in Kolkata, Mumbai, Bangalore and Chennai. The

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Akademi has two translation centres at Bangalore and Kolkata, besides a

project office at Guwahati for promotion of oral and tribal literature and an
Archives of Indian literature. It maintains a unique multilingual library at
New Delhi and at its regional offices at Bangalore and Kolkata, having about
1.5 lakh books in over 25 languages.
The highest honour conferred by the Akademi on a writer is by electing
him its Fellow. This honour is reserved for the 'Immortals of Literature' and
limited to 21 at any given time. So far 66 writers have been elected for this
honour. Sahitya Akademi has till data recognised 850 authors, 283 translators
with its translation prizes, fellowships for distinguished contribution to
literature, and 31 Bhasha Sammlll1 awards, meant to promote peripheral
languages, Honorary Fellowships for foreign scholars who have done Significant
work in Indian literature and senior and junior fellowships to scholars
undertaking projects in the field of literary art. The Akademi publishes books
in 24 languages including translations of Award-winning works, monographs
on the great pioneers of Indian literatu.rt's, histories of literature, Indian and
forei/-,'T1 classics in translation, anthologies of fiction, poetry and prose, biographies,
Registers of Translators, Who's Who of Indian Writers, National Bibliography
of Indian Literature and Encyclopedia of Indian Literature. So far, the Akademi
has published over 4,000 books in these different categories. It has three journals,
Illdiall Liff'ratllre (hi-monthly in English), Samakaleena Bharatiya Sahitya (bimonthly in Hindi) and Samskrita Pratibha (half-yearly in Sanskrit). About 238
books were published between April 2003 and March 2004.
Sahitya Akademi holds a number of regional, national and international
seminars every year on various topics in literature, literary history and
aesthetics. The Akademi also regularly holds Translation Workshops.
The Akademi holds annually a weeklong 'Festival of Letters' every year,
usually in February. It has certain special projects like the Ancient Indian
Literature, Medieval Indian Literature and Modern Indiall Literature together
constituting ten volumes of the best of Indian writing over five millennia. An
th(>se volumes have since been published.
In 2004-0S, the Akademi is celebrating its Golden Jubilee with special
programmes like the international Seminar on the 'Mahabharata', a SAARC
Writers Meet and 'New Voices: a series of young writers' meet', and bringing
out special publications like a history of 50 years of the Sahitya Akademi,
Anthologies of poetry and fiction, etc. The Akademi introduced a new series
of programme entitled Sur Sahitya as part of the Golden Jubilee celebrations.

FELLOWSHIPS AND FINANCIAL ASSISTANCE

To provide financial support to outstanding artistes for creative work in
various fields of performing, plastic and literary arts, the following schemes
are being implemented by the government.

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FELLOWSHIP IN NEW AREAS

The sche~e has been introduced in 1998-99 with the objective to encourage
application of modem ideas, principles, methodolOgies and technology to art
and culture related issues. The fields covered are: (i) ideology; (ii) cultural
economics; (iii) Museo)ogy, etc. The senior fellowships (age group of 41 years
and above) amount is Rs 12,000 per month. The junior fellowships (age group
of 25-40 years) amount is Rs MOO per month from 2002-03. The fellowships
are awarded for a period of two years.
The scheme of Emeritus Fellowship and Kumar Gandharva Fellowship
has been discontinued from 2002-03. The scheme of Senior/Junior Fellowships
has been transferred to the National Akademies, i.l'., Sangeet Natak Akademi,
Sahitya Akademi, Lalit Kala Akademi and National School of Drama from
2002-03.
SCHOLARSHIP TO YOUNG ARTISTES
Under the schenle, financial assistance is given to outstanding artistes, in the
age-group of 18-25 years for advanced training within India, in the fields of
music, dance, painting, drama and sculpture, etc. The duration of scholarship
is two years and the value is Rs 2,000 per month.
GRANTS TO CULTURAL ORGANISATIONS
Financial assistance is given to institutions of all-India character, engaged in
the development of cultural activities, to meet part of their expenditure on
maintenance and development activities. The institutions assisted are the
Institute of Historical Studies, Kolkata, and the Institute of Traditional Culture,
Chennai.
ARCHAEOLOGICAL SURVEY OF INDIA
The Archaeological Survey of India (AS}) established in 186] functions as an
attached office of the Department of Culture. Its major activities are :
maintenance, conservation and preservation of Centrally-protected monuments/
sites and remains; conducting archaeological explorations and excavations;
chemical preservation of monuments and antiquarian remains; architectural
survey of monuments; development of epigraphical research, numismatic
studies and publications; setting up and re-organisation of site museums in
lndia; development of environment at Centrally-protected monuments; and
training in archaeology. At present there are 3,644 Centrally-protected
monuments of national importance which include 17 monuments on the list
of world heritage. The number of individual structures being maintained by
ASI is over 5,000.
MUSEUMS
Museums are repositories of India's cultural heritage and are meant for
acquisition., conservation and preservation of historical, technical and other
materials against decay and for their transmission to posterity as records of
history. They also serve as important audio-visual means of education.

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The National Museum was established on 15 August 1949 in the Durbar

Hall of the Rashtrapati Bhawan. It was formally inaugurated on 18pecember
1960 at its present premises. Now there are more than two lakh works of art
of diverse nature, both of Indian and foreign origin, covering a time-span of
five thousand years of cultural legacy of Indian sub-continent.

There are now 26 permanent galleries. New galleries have been added
such as Duddhist Art, Decorative Arts, Evolution of Indian scripts and coins,
Tanjore and Mysore School of Paintings and Jewellry Gallery. The National
Museum Library today possesses 53,668 books on ancient and medieval
history, archaeology, fine arts, anthropology, etc.
Nehru Memorial Must:'um and Library, New Delhi, is the centre for a
personalia Museum on the life and times of Jawaharlal Nehru. The Library
has a pre-emim'nt position among the social science libraries in the country.
The organisation places considerable emphaSiS on its research programmes
and on the extension of research facilities to scholars.
The National Council of Science Museums (NCSM), Kolkata, an
autonomous organisation under the Department of Culture, is primarily
engaged in popularising srit'nce and technology amongst the students in
particular, and masses in gl'neral, through a wide range of interactive
programmes and activities. The NCSM administers 28 science centres all over
India. Four major science mUSt'ums and centres of NCSM operate from
Kolkata, Bangalore, Mumbai, and Delhi under which several satellite centres
function.
The Council provides catalytic support to other institutions in India and
abroad. Exhibiting its immensl' potential of developing exhibits of international
standards the Council, on a turnkey basis set up the Rajiv Gandhi Science
Centre at Mauritius and a similar project is being taken up at Nepal. The
Council also developed and delivered exhibits for the Australian, Israeli and
Bangladesh Science Centres. For the first time in our country a panorama
centre depicting the great epic of Mahablzarata has been set up at Kurukshetra
and a large planetarium in the Memory of Late Kalpana Chawla is in the
making. The National Agricultural Science Museum for ICAR at Delhi and
a Science Centre at the Andaman and Nicobar Islands has been designed and
developed by the Council.

The Allahabad Museum founded in 1931 was declared as an institution

of national importance by the Central Government in ]985. The Museum is
famous for its collection of Bharhut, Bhumara and Jamsot sculptures and for
the terracotta from Kausambi, Bhita, Jhusi, PatIiputra, Sarnath, Rajghat and
Ahichhatra. The Museum illso has paraphernalia and family heirlooms of the
Nehrus, including manuscripts of An Autobiography by Jawaharlal Nehru
and a large volume of correspondence. Among the Museum collections are
paintings of the Bengal School of Painters and Vijayavargiya. Among the
foreign painters represented in the Museum, mention may be made of
Nicholas Roerich, his son Svetoslav Roerich and Angarika Govinda.

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The National Rl'search Laboratory for Conservation of Cultural Property

(NRLC), Lucknow is a scientific institution engaged in the conservation of
cultural heritage. Its activities include conducting research in materials and
methods of conservation, study of materials and technologies of art objects,
training in conservation and, rendering technical advice and assistance
to museums and allied institutions. The library of the laboratory has a good
collection of literature on different aspects of conservation and it provides
documentation services like abstracting, annotated bibliographies on selected
topics, etc., to other institutions. Publication of technical notes and manuals
for conservators is another important activity of the laboratory. The laboratory
conducts each year an orientation workshop for Directors and Curators on
preventive conservation and a six-month training course for conservators. A
regional centre of NRLC for the southern region is established at Mysore. The
NRLC is an Associate Member of the International Centre for the study of
the Preservation and Restoration of Cultural Property (ICCROM), Rome and
is represented at its council.
The National Gallery of Modem Art (NGMA) was founded in 1954. The
main aim of the NGMA is the promotion and development of contemporary
Indian Art. The collection of NGMA comprises 16,049 works of art, representing
about 1,742 contemporary Indian artists. The collection has been built up
mainly by purchase and also by gift. The Gallery's important collections
include, paintings, sculpture, graphic arts and photographs. NGMA organises
exhibitions from its collection and under cultural exchange programme
periodically. Several colour reproductions have been brought out. NGMA's
objective is to help people look at the works of modem art with understanding
and sensitivity. In keeping this in view, NGMA, Mumbai was inaugurated
in 1996, while a new one is being set up at Bangalore.
The Salar Jung Museum, Hyderabad came into being on 16 December
1951. It is a rich repository of Global Art collections. Named after the erstwhile
noble family of the Salar Jungs, the collectors of this treasure trove, the major
portion of the Museum's collection was acqUired by Mir Yousuf Ali Khan
popularly known as Salar Jung-III (13 June 1889-2 March 1949). The collection
consists of Indian Art, Middle Eastern Art, Far Eastern and European Art,
representing nearly 36 countries in 50 mediums. Apart from this, there is a
gallery devoted to the illustrious Salar Jung family, a Children's Section, a
rich reference library, a reading room and a rare manuscripts section with
Arabic, Urdu, and Persian manuscripts. The Museum has prepared an action
plan for the reorgnisation of 21 galleries under the Tenth Plan.
NATIONAL ARCHIVES OF INDIA

The National Archives of India (NAI), New Delhi known until independence
as Imperial Record Department was originally established in Kolkata on 11
March 1891. It is the official custodian of all non-current records of permanent
value to the Government of India and its predecessor bodies. It has a regional
office at Bhopal and three record centres at Bhubaneswar, Jaipur and
Pondicherry.

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Major activities of the Archives include : (i) Making public records

accessible to various Government agencies and research scholars; (li) preparation
of reference media; (iii) preservation and maintenance of records and
conducting of scientific investigations for the said purpose; (iv) evolving
records management programmes; (v) rendering technical assistance to
individuals and institutions in the field of conservation of records;
(vi) imparting training in the field of archives administration, records management,
reprography, repair and conservation of records, books and manuscripts at
professional and sub-professional levels; and (vii) creation and promotion of
archival consciousness in the country by organising thematic exhibitions.
The National Archives of India provides financial assistance to State /
UT archives, voluntary organisations and other custodial institutions, so that
the documentary heritage is preserved and archival science is promoted.
MARINE ARCHAEOLOGY

India initiated underwater archaeological research in 1981 by establishing

Marine Archaeology Centre in the National Institute of Oceanography, Goa.
The main objective of Marine Archaeology is to reconstruct the history of past
seafaring activities from material remains and study of submerged
archaeological sites.
Since 1983, underwater archaeological explorations have been carried out
almost every year in the waters of ancient Dwarka. Successive investigations
of Dwarka in about 4 to 12m water depth have revealed the presence of a
number of submerged stone building blocks. The explorations during 1992
to 1995 were carried out mainly to demarcate the limits of the submerged
Dwarka and also to document properly the submerged structures and objects
noticed. At Dwarka, approximately 9,80,000 sq m area was explored between
the water depth of 3 to 12m off Samudranarayana Temple.
Preliminary underwater explorations off Sornnath were carried out
during 1992-95. The findings were a three-holed triangular stone anchor and
a three-holed prismatic stone anchor measuring in length about a meter, and
a one-holed circular stone object similar to that found in Dwarka.
Marine archaeological explorations are being carried out since 1991 in
Poompuhar waters in collaboration with the Department of Archaeology,
Government of Tamil Nadu. The main objective of this survey was to delineate
the submerged extension of the ancient town of Kaveri-poompattinam, north
of the present river Kaveri and to explore the deep water where aU-shaped
structure was noticed during earlier explorations. Off-shore exploration was
carried out in shallow waters, north of river Kaveri and south of the present
Poompuhar village. A few dressed stone blocks were found in various water
depths.
Explorations carried out in deeper waters (23 m depth) revealed the
presence of an U-shaped stone structure which was located about five Ian
seaward of Kadaikkadu. The structure lies in a north-south direction. It is

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believed that this man-made structure perhaps, pertains to a Buddhist relic.

Geophysical explorations carried out with the sub-bottom profiler revealed
a submerged palaeochannel of the river Kaveri in the north of Poompuhar. The
width of the channel varies from 300 m to 500 m and it is buried 20 m below
the sea bottom. This channel extends up to deeper water structures, suggesting
that the ancient shoreline was about five km seaward of the present shoreline.
The wreck found in Poompuhar explorations seems to belong to the Dutch
rulers in India and might have sunk during a war against the French in 179293 as indicated by a few lead ingots from the wreck. Two of them bear the
symbol of a crown below which is the letter '0'. This symbol of the crown over
'0' is engraved on the coins issued by the Dutch in India.
The on-shore explorations of Lakshadweep revealed the presence of
significant potsherds of red ware, red-polished ware, dull red ware, red and
black ware and buff ware from Kavaratti, Androth and Amini. Two Buddha
heads (one 95 em and the other 55 em high) carved out of locally available
coral rock found earlier by inhabitants of Androth, were examined and
assigned to the 6th-7th century AD. The presence of red polished ware
suggests that the earliest habitation on these islands dates about 100-500 AD.

LIBRARIES
Libraries are the keepers of our history and culture. Development of library
systems is an important component of the scheme of non-formal and
continuing education. Constitutionally the subject 'libraries' is included in the
State List. The Centre has jurisdiction only over libraries established by it and
institutions of nationaJ importance as dedared by it. There are more than
60,000 libraries in the country.
National Library, Kolkata serves as a permanent ~s~~ of all
reading and information material produced in India as well as printed
material written by Indians/foreigners concerning India wherever published
and in whatever language. Under the Delivery of Books and Newspapers
(Public Library) Act, 1954, the National Library is entitled to receive one copy
of each publication published in the country. It is also a repository of the
United Nations publications. It renders multifaceted services and extends
different types of bibliographical assistance to numerous readers and scholars,
ministries, nationaJ and international organisations. The Library has established
exchange relations with 215 libraries I institutions in 90 countries and has a
stock of over 25 lakh books. During the centenary year 2000:.04 the Library
organised an international conference and several seminars. To overcome the
space shortage a new six-storied building called Bhasha Bhawan has come
up within its campus. Its website is

www.nlindia.org.

The Central Reference Ubrary, Kolbta is responsible for the compilation,

publication and sale of the Indian National Bibliography. This is a monthly
record of current Indian publications in 14 languages including English based

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on receipts in the National Library, Kolkata, under the provisions of the Delivery
of Books and Newspapers (Public Libraries) Act, 1954. The Library is also
compiling and publishing Index Indimla, an annual index of select articles
appearing in current Indian periodicals in major Indian languages.
Raja Rammohan Roy Library Foundation has made great strides in
promoting library services in the country since its inception in 1972. The main
objective of the Foundation is to promote and support the public library
movement in the country by providing adequate library services and by
popularising reading habits, particularly in the rural areas, with active
cooperation of state library authorities and voluntary organisations working
in the field of library services. Currently it operates two types of schemes
of assistance, i.e., matching and non-matching. Matching schemes are operated
from the joint fund created with state government's contribution along with
equal share from the Foundation whereas non-matching schemes are operated
fully from the Foundation's own resourCt!S. During the year 2003-04 the
Foundation has rendered assistance worth Rs 1,700 lakh (approx.) for 9,000
libraries all over the country under the two schemes combined. The Foundation
also gipes awards to best maintailled libraril'S in different zones oj the country
alld a Fellowship to honour olltstanding contributions made by an illdilliduai
jor promotion (~f" library movemellt ill the country. Besides, cash awards are
also given to best articles for its journal 'Granthana'. A special Project for
converting all the State Central Libraries of the north eastern region including
Sikkim into model libraries has also been initiated.
Rampur Raza Library is housed in Hami Manzil in the fort of Rampur
and is a treasure house of Indo-Islamic learning and art. It has a priceless
collection of about 75,000 printed books and 16,000 manuscripts, besides more
than 5,000 miniature paintings and 2,500 specimens of Islamic calligraphy and
3,500 books of Laharu collection.
The Delhi Public Library, Delhi established in 1951 with financial and
technical assistance from UNESCO, has since developed into a metropolitan
public library system consisting of a central library at S.P. Mukherjee Marg,
a zonal library at Sarojini Nagar, and three branches at Patel Nagar, Karol
Bagh and Shahdara; 23 sub-branch libraries; 23 libraries in re-settlement
colonies; six community libraries, seven reading-rooms which inculcate
reading habits among the weaker sections of society; a Braille library with
a network of mobile service points for the visually handicapped; three sports
libraries of the status of sub-branches located in different stadia in Delhi; one
library at Central Jail, Tihar for the prisoners; 18 deposit stations which are
run by various societies/ associations and a network of 67 mobile Art and
Culture service stations to serve the urban and rural areas in the National
Capital Territory of Delhi. It has recently opened reading rooms in some of
the Community Centres also besides one at Quila Rai Pithora. The Delhi Public

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Library is a recipient Library under the Delivery of Books and Newspapers

(Public Libraries) Act. Its books stock is more than 14 lakh.
Khuda Bakhsh Oriental Public Library, Patna was established in 1891
was declared as an institution of national importance in 1969. It has a rich
collection of over 20,000 Arabic, Persian, Urdu, Turkish, Pali and Sanskrit
manuscripts and over 2,000 Mughal and Rajput paintings besides two lakh
printed documents. Mol'(' than 1,650 audio and video cassettes have been
prepared. The Library has instituted a few fellowships at par with UGc. It
has been recognised by seven universities as a centre of research for awarding
the degrees of Ph. 0./0. Litt. Tht' Library has also instituted a prestigious
award of Rs one lakh and a citation.
Thanjavur Maharaja Serfoji's Saraswati Mahal Library (TMSSM) is
one of the few medieval libraries that exist in the world. It symbolises a
priceless repository of culture and time defying treasure house of knowledge,
built up by the successive dynasties of Nayaks and Marathas of Thanjavur.
The Library was made a public library in 1918 by the Madras Government
and was registered on 9 July 1986 as a society. Now the Library is administered
by both the Central Government and he Government of Tamil Nadu. The
Library has 46,695 manuscripts in Sanskrit, Marathi, Telugu, Tamil and other
languages in both palm leaf and paper form. Miniature paintings, colour
drawings, atlases, maps, charts and rare prints in its collection are very
attractive and reflect th( TanjoTe school of painting. Besides, it has 54,009
books in Indian languages covering various diSCiplines and a rare collection
of about 4,500 books in European languages collected by Raja Serfoji II. Th('
Library has published more than 425 books from the unpublished manuscripts.
Connemara Public Library, Chennai became the State Central Library
with effect from 1 April 1950 under the provisions of Tamil Nadu Public
Libraries Act, 1948 and from 11) September 1955, it became one of the four
recipient libraries under the provisions of Delivery of Books and Newspapers
(Public Libraries) Act, 1954. The expenditure for maintaining the Library is
met from the funds allocated in the budget of Tamil Nadu Government.
However, the Government of India meets half of recurring expenditure and
two-third of non-recurring expenditure in respect of maintaining the Delivery
of Books Act Section of this Library. The Library was accepted as UNESCO
Associated Project in 1955 and accordingly, it became a Depository of
publications of UN and its specialised agencies and so it serves as UNESCO
Information Centre also. Besides, at present it is also functioning as "Asian
Development Bank Depository Library" since 1992. The stock of volumes in
the library stands at 7.50 lakh.
The State Central library, Mumbai came into existence on 1 July 1994
by taking over of the Central Library by the state government from the Asiatic
Society of Bombay under the provisions of Maharashtra Public Libraries Act,
1%7. It is now under the control of the Directorate of Libraries, Mumbai and
is one of the four recipient libraries under the 1954 Act referred to above. This

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apex library in Maharashtra serves as a permanent repository of all reading

and information material. It has nearly all printed material by Indians and
foreigners on India in any language. Over eight lakh books, besides periodicals,
maps, and newspapers are housed in this library.
Depository Libraries Under the Delivery of Books and Newspapers
(Public Libraries) Act, 1954, four libraries are entitled to receive a copy of
new books and magazines published in the country. These are the National
Library, Kolkata, State Central Library, Mumbai, Connemara Public Library,
Chennai and the Delhi Public Library, Delhi. There are also specialised
libraries for researchers. Prominent among them are Nehru memorial Museum
and Library, New Delhi; Indian Council of World Affairs, New Delhi; Indian
Statistical Institute; Kolkata; Gokhale Institute, Pune; Theosophical Society,
Chennai; National Council of Applied Economic Research, New Delhi and
Indian Institute of Public Administration, New Delhi.
Central Secretariat Library originally known as Imperial Secretariat
Library, Kolkata was established in the year 1891. Since, 1969 the Library has
been housed at Shastri Bhawan, New Delhi. Its collection of 6.5 lakh
documents is the largest collection among the other Government of India
libraries and deals with various social science and humanities subjects. It has
a strong collection of government documents especially of the Central
Government and its related area of studies. Besides this its biographical
collection is very large and has extremely rich, rare book documents. It has
also large number of microfilm collections. The main objective is to provide
library facilities for reference and research to Central Government offices/
organisations and has revised rules to provide borrowing facilities to
academicians, researchers, faculty members, corporate communities from
different universities, research institutions, etc. The Library has two branches
namely, Tulsi Sadan Library, New Delhi that houses about 1.9 lakh volumes
of Hindi and 13 other constitutionally approved Indian regional language
books and the Text Book Library located at R.K. Puram, New Delhi catering
to the needs of students whose parents are central ~()ven lInent employees.
In the recent past CSL has undertaken the development of IT based products
by digitizing the Government of India Gazette and in addition has also
developed the OPAC system for its collection which will be made Web based
for wider accessibility.
ASIATIC SOCIETY
Asiatic Society, Kolkata was founded in 1784 by Sir William Jones (1746-1794),
an eminent indologist, with the objective of inquiring into the history, science,
arts and literature of Asia. Directly or indirectly, it has contributed to the
growth and development of most of the major antiquarian, scientific and
literary institutions in India. Its historic importance was recognised and the
Government declared it as an 'institution of national importance' in 1984, its
bicentenary year. The Society maintains a museum which includes an Ashokan
rock edict and copper plates ranging from the third century BC, and important

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documents and coin collections for the study of Indian history and culture. It
contains approximately 47,000 manuscripts in various languages. With its
library of printed books, archives and the collection of manuscripts, it is one
of the leading centres of study of indology in the world. The Society has
expanded its activities considerably in the sphere of establishing intercultural
relationship with various countries of the world. Three main activities of the
society concerning the scientific pursuit of the knowledge are : (i) Library
services, (ii) Academic activities and (iii) Publications. The Library of the
Society has more than 2,50,000 volumes comprising, among others, a vast
treasure of rare books, journals and other printed materials on Asiatic Arts
and Sciences. The Asiatic Society is a member of DELNET for sharing of
resources available with other member Libraries of the Delnet. The facility
is also available for the readers.

INSTITUTIONS OF TIBETAN AND BUDDHIST STUDIES

After Independence, a number of institutions have been set up in the country
for preservation of Tibetan culture, philosophy, literature, etc. The Government
is also implementing a scheme of financial assistanct: to such organisations.
The Central Institute of Higher Tibetan Studies, Varanasi, an autonomous
organisation fully financed by the Centre, was established in 1967 with the
objective of preservation of Tibetan culture and tradition, rt'storation of ancient
Indian literature preserved in Tibetan languages and to provide higher
education in Buddhist studies to students from the border areas. The Institute
prepares students for various courses. It has been given the status of deemedto-be university.
The Central Institute of Buddhist Studies, Leh was established
in 1959
4
to train students in Buddhist philosophy, literature and arts. It is affiliated
to Sampurnanand Sanskrit Vishwa Vidyalaya, Varanasi.
The Namgyal Institute of Tibetology an autonomous organisation under
administrative control of Government of Sikkim, was establishEd for spreading
the knowledge of Chhos (Doctrine of the Buddha).
The Library of Tibetan Work and Archives, Dharamsala, acquires and
preserves Tibetan books and manuscripts. The main activities of the library
are to provide research facilities, to run regular courses on Buddhist philosophy
and Tibetan languages, hold classe!;> on Tibetan traditional woodcarving and
tankha paintings, etc.
Nava Nalanda Mahavihara, Nalanda was set up in 1956. 'Its objectives
are : To develop a residential centre of education of international importance
for the studies in Pali and Buddhism, Buddhist philosophy, logic and
epistemology; to admit graduates and oriental scholars of recognised
universities/ institutions to train them in post-graduate programmes of Buddhist
studies and research; to grant academic awards, fellowships, scholarships;
to translate and publish Buddhist works from Pali, Sanskrit and other
languages; to organise a library of the Buddhist literature, etc.

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ANTHROPOLOGICAL SURVEY OF INDIA

Anthropological Survey of India established in December 1945, is a scientific
research organisation with its headquarters in Kolkata and seven regional
centres, a sub-regional centre and eight field stations located in different parts
of the country including a camp office in New Delhi. Since its inception as
a nodal organisation of scientific research in anthropology and allied disciplines,
it has the enviable record of conducting bio-cultural research covering the
entire rangl' of human evolution in the country. The Anthropological Survey
of India has already initiated the approved Tenth Plan Research Projects,
which include: Cultural Dimensions of Tourism, Study of Syncretism in India,
Dormitory System in India, Physical Growth of Adolescents and DNA study
on ancient skeletal rl'mains and on contemporary populations.

INDIRA GANDHI RASHTRIYA MANAV SANGRAHALAYA

Indira Gandhi Rashtriya Manav Sangrahalaya (National Museum of Mankind)
Bhopal, is dedicated to the depiction of an integrated story of humankind
in global perspective with special focus on India. The Sangrahalaya as open
air museum is supported by an indoor display related to three broad fields:
(a) human evolution and variation; (b) culture and society in pre and protohistoric times; and (c) contemporary cultures. It has set-up open air
exhibitions on tribal habitat, coastal village, desert village and Himalayan
village through life-size exhibits in authentic environmental settings. The rock
shelters found on the museum premises, with historic and pre-historic rock
of art paintings, have been developed as another open air exhibition titled
'The Rock Art Heritage'. The Sangrahalaya is also developing an indoor
museum in Bhopal. The other programmes being carried out by this
organisation tne salvage of anthropological objects of national heritage,
reSl'arch projects and multi-media documentation of cultures.
The museum also undertakes audio, video, photo, cine and textual
documentation and research and field projects on various aspects of Indian
society and culture for better understanding, salvage and revitalisation of the
rich cultural heritage of the country.

PROMOTION OF CULTURE
CENTRE FOR CULTURAL RESOURCES AND TRAINING
The Centre for Cultural Resources and Training (CCRT) is one of the premier
institutions working in the field of linking education with culture. The Centre
was set up in May 1979 as an autonomous organisation by the Government
of India. Today it operates under the administrative control of Department
of Culture, Ministry of Information, Broadcasting and Culture, Government
of India. With headquarters in New Delhi, it has also Regional Centres at
Udaipur and Hyderabad.
The broad objectives of the CCRT have been to revitalise the education
system by creating an understanding and awareness among students about

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the plurality of the regional culture.. of India and integrating this knowledge
with Eo'ducation. The main thrust is on linking education with culture and
making students aware of the importance of culture in all dl'velopment
programme. One of the CCRT's main functions is to conduct a variety of
training programmes for in-service teachers drawn from all parts of the
country. The training provides an understanding and appreciation of the
philosophy, aesthetics and beauty inherent in Indian art and culture and
focuses on formulating methodologies for incorporating a culture component,
in curriculum teaching. This training also stresses the role of culture in science
and technology, housing, agriculture, sports, etc. An important component of
training is to create awareness among students and teachers of their role in
solving environmental pollution problems and conservation and preservation
of the natural and cultural heritage. To fulfill these objectives, the Centre
organises variety of training programmes for teachers, educators, administrators
and students throughout the country.
One of the most important functions of CCRT is to implement the
Cultural Talent Search Scholarship Scheme, which was taken over from the
Department of Culture in 1982. The scheme provides scholarships to outstanding
children in the age group of 10 to 14 years, studying either in recognised
schools or belonging to families practicing traditional performing or other arts
to develop their talent in various cultural fields particularly in rare art forms.
The scholarships continue till the age of 20 years or the first year of a
University degree. About 300 scholarships are offered every year.
The Centre has also instituted CCRT Teachers award which is given
every year to selected teachers in recognition of thl' outstanding work done
by them in the field of education and culture. The Award carriers with it a
citation, a plaque, an allgavastram and Rs 10,000.
RAMAKRISHNA MISSION INSTITUTE

OF CULTURE

The Ramakrishna Mission Institute of Culture, Kolkata a branch Centre of the

Ramakrishna Mission was conceived in 1936 as one of the permanent
memorials to Sri Ramakrishna (1836-1886) on the occasion of his first birth
centenary. It was formally established on 29 January 1938 as a branch centre
of the Ramakrishna Mission founded by Swami Vivekananda to propagate
the message of Vedanta as propounded by Sri Ramakrishna who5' basic
teachings stressed: (i) the equal validity of all religions; (ii) the potential
divinity of man; and (iii) service to man as a way of worshipping God-a
new religion for mankind.
INDIRA GANDHI NATIONAL CENTRE FOR THE ARTS
Indira Gandhi National Centre for the Arts (IGNCA) is a premier national
institution engaged in the pursuit of knowledge on arts and culture and in
the exploration of relationships of arts and culture with various disciplines
of learning and diverse aspects of life. Established in 1985 in the memory of
the Late Prime Minister Smt Indira Gandhi, it has multifarious activities such
as research, publication, training, documentation. dissemination and networking

116

India 2005

and is poised to grow into a large repository of information pertaining to the

arts in India. The IGNCA seeks to place the arts within the natural and human
environment by providing a forum for creative critical dialogue between the
diverse arts, between the arts and sciences, between arts and the traditional
and current knowledge systems. The IGNCA promotes interaction and
understanding between diverse communities, regions, social strata, and
between India and other parts of the world.
IGNCA has been designated as a nodal agency for setting up a National
Data Bank on Arts, Humanities and Cultural Heritage. It has an outstanding
reference library, documented material including audio / video material,
manuscripts, slides, photographs and artifacts. A major initiative is a Cultural
Informatics lab (CIl), which employs an integrated methodology to develop
application') to access diverse media on all fields relating to arts through multimedia and digital technology. Broadly, the major activities of CIl can be
classified under thre(> categories of digitization, web-enabled digital library
and CDROM/DVDROM project.

CENTENARIES AND ANNIVERSARIES

One of the important activities undertaken by the Government has been the
commemoration of centenaries of distinguished Indians who have left an
indelible impression on the history and life of the nation. National committees
are set up for the centenaries which are considered to be of such importance.
Yearlong programmes are drawn up by the committees for implementation
during the centenary year. These programmes normally include organisation
of national seminars, installation of statues, release of commemorative stamps
and coins, publications and exhibitions and other functions. The Department
of Culture also provides financial assistance to registered voluntary
organisations for celebrating the centenaries of outstanding personalities
which are not taken up for celebration by the Government.
GANDHI SMRITI AND DARSHAN SAMITI
Gandhi Smriti and Darshan Samiti (GSDS) was set up by the Department of
Culture in 1984 primarily to maintain and look after the national memorial
where Gandhiji was assassinated, now called 'Gandhi Smriti' and a permanent
photo exhibition at Rajghat called 'Gandhi Darshan', which was created at
the time of Gandhiji's birth centenary in the year 1969. The institution has
brought out a number of books on Gandhi, communal harmony and national
integration. It also publishes a quarterly newsletter to create awareness about
the GSDS and also organises annual Gandhi Memorial Lectures by eminent
scholars both in India and abroad.
Gandhi Smriti at Tees January Marg, New Delhi is a national memorial
now. It houses many memories of the last 144 days of Mahatma Gandhi and
forms part of the rich national heritage. Gandhi Darshan offers a comprehensive
exhibition on Gandhi.

Art and Culture

117

MAULANA ABUL KALAM AZAD INSTITUTE OF ASIAN STUDIES

Maulana Abul Kalam Azad Institute of Asian Studi(~s is the centre for research
and training of the life and works of Maulana Abul Kalam Azad and for the
study of the social, cultural, political and economic movement in Asia from
the middle of the 19th century. The Institute also maintains a library of books,
newspapers, still photographs and materials on the secular traditions of
modem India and events of the 19th century. It maintains a personal museum
at th(' former residence of Maulana Abul Kalam Azad, which highlights the
life and works of Maulana Abul Kalam Azad as a distinguished national
leader and thinker. The Institute has embarked upon its research programmes
in the North-East region of India from the year 2000.
GANDHI PEACE PRIZE

On 2 October 1994, on the occasion of the 125th birth anniversary of Mahatma

Gandhi, the Government instituted an Annual Int('rnational Gandhi Peace
Prize to encourage and promote the significance of Gandhian values the world
over. The Prize carries a cash award of Rs one crore, a citation and a plaque.
The Prize is decided by a five-Member Jury headed by the Prime Minister
of India. The first ever Gandhi Peace Prize for 1995 was given to Dr Julius
K. Nyererc, former President of Tanzania. The Gandhi Peace Prize for the year
2003 was awarded to Mr Vaclav Havel, former President of Czech Republic.
FESTIVALS OF INDIA

The Festival of India was introduced with the objective of giving a focussed
glimpse of the vast heritage as well as contemporary dynamism of Indian
culture. The Festivals also help in promoting cultural links with foreign
countries through reciprocal festivals of those countries in India. As the
Festival creates greater awareness amongst the people of the receiving country
about India, it also helps in creating an appropriate climate of goodwill and
understanding which is the prerequisite for greater cooperation in different
spheres, viz., technology, commerce and tourism, etc.
Since 1982, Festivals of India have so far been held in the U.K., U.S.A.,
Japan, Sweden, Germany, China and Thailand. Reciprocal Festivals of erstwhile
U.s.S.R., Japan, France, China, Sweden and China were held in India. During
2003-04 Festival of India was organised in Bhutan.
NATIONAL RESEARCH LABORATORY FOR CONSERVATION OF
CULTURAL PROPERTY

The National Research Laboratory for Conservation of Cultural Property

(NRLC), which was established in 1976, is a Subordinate Office of the
Department of Culture, and is recognised by the Department of Science and
Technology as a scientific institution of the Government of India. The aims
and objectives of the NRLC are to develop conservation of cultural property
in the country. To meet its objectives, NRLC provides conservation services

J1H

India 2005

and tl'chnical advice in matters concerning conservation to museums, archives,

archaeology departml'nt~ and other similar institutions, imparts training in
different aspects of conservation, carries out research in methods and materials
of nlOscrvation, disseminates knowledge in conservation and provides library
services to conservators of thl' country. The headquarters of NRLC is situated
at Lucknow, and to further the cause of conservation in the Southern region
of the country, a regional centn' of the NRLC, the Regional Conservation
Laboratory is functioning at Mysore. For more information visit NRLC at
http:// www / nrkcp.org.

Basic Economic Data

INOlA is rich in natural resources and manpower. These resources have,

however, not been exploited fully and are capablc of greater utilisation. The
Indian economy is still predominantly agricultural. About one-fourth of the
national income is derived from agriculture and allied activities, employing
about three-fifth of the working force. Since 1947, the national endeavour has
been t;-dfversify the economy.
The Ministry of Statistics and Programme Implementation consists of
two wings namely: Statistics Wing and Programme Implementation Wing. The
Ministry is the apex body in the official statistical system of the country. It
is the cadre controlling authority of the Indian Statistical Service (ISS). It is
also the administrative Ministry for the Indian Statistical Institute, an
autonomous registered scientific society of national importance. The Ministry
includes, in/a-alia, Central Statistical Organisation (CSO) and the National
Sample Survey Organisation (NSSO).

CENTRAL STATISTICAL ORGANISATION

The Cl'ntral Statistical Organisation (CSO) is responsible for formulation and
maintenance of statistical standards, work pertaining to national accounts,
industrial statistics, consumer price indices for urban non-manual employees,
conduct of economic census and surveys, training in official statistics,
coordination of statistical activities undertaken within the country and liaising
with international agencies in statistical matters. The eso b headed by a
Director General, and is located in Delhi. A major portion of its work relating
to industrial statistics is~ed out in Kolkata.
NATIONAL AND PER CAPITA INCOME
National income is defined as the sum of incomt'S accruing to factors of
production, supplied by normal residents of tht' country bdore deduction of
direct taxes. It is identically.!9u~~_ to_~t't_na.t.i_?_f\9.:Lr':~)li_uctat factor cOlit. Table
6.1 gives estimates of nationaf ana per capit<l incon1(; at current and 199394 prices, while table 6.2 gives relationship of national income and other
aggregates at current prices. Table 6.3 gives performance of the public sector
and table 6.4 gives private final consumption expenditure, net domestic saving
and capital formation since 1993-94.
CATEGORIES OF WORKERS
For the 2001 census, the population was divided into main workers, marginal
workers and non-workers. Data released so far shows total workers subdivided into main workers and marginal workers and distribution of total
workers in four broad categories in rural and urban areas as on 1 March 2001.
These are presented in table 6.5. Employment in the organised sector has been
shown in table 6.6.

120

India 2005

._ __ _-_ _-_._-_. .
..

......

..

-----~

NATIONAL INCOME
IfUf/IffS CIID.E
_CurreIJlIJIIC~

1993-94 price

PER CAPITA INCOME

RU,.EES ClDIIE
_

r:lIrrent pllce

lqg:l <MpIJu

1994-95

KBK

1995-96

1996-97

1997-98

1998-99 1999-2000 2000-01

2001-02

2002-03

2003-04
(AE)

Basic Economic Data

121

UNEMPLOYMENT
The number of persons on the live register of the employment exchanges gives
an idea of the trend of unemployment subject to certain limitation~. Employment
exchanges cover mainly urban areas. Not all the unemploYl'd register their
names in exchanges. Further, somt' already employed get registered for better
employment. Tablt' 6.7 gives registrations, vacancies, placements and job
seekers on the 'live register' for the, period 1994-2003.

NATIONAL SAMPLE SURVEY ORGANISATION

The National Sample Survey (NSS) was set-up in ]950 for conducting largescale surveys to meet the data needs of the country tor the estimation of
national income and other aggregates. It was reorganised in 1970 by bringing
together all aspects of survey work under a single agency, known as the
National Sample Survey Organisation (NSSO) under the overall technical
guidance of Governing Council to impart objectivity and autonomy in the
matters relating to collection, processing and publication of the NSS data.
Besides a non-official Chairman, the Governing Council consists of two
statisticians from Indian StatistiLal Institute, three Economists/Social Scientists
from Universities, Research Institutions and other private organisations and
Senior Statistical Officers of the Ministry of Statistics and Programme
Implementation, i.e., Director General of Central Statistical Organisation,
Heads of Computer Centre and the four Divisions of the NSSO. The Director
General and Chief Executive Officer (DG&CEO) of NSSO, is the MemberSecretary to the Council.
The DG and CEO as executive head of the NSSO is responsible for
conducting and supervising the activities of the organisation. It has four
divisions, namely, (i) Survey Design and Research Division (SDRD) (ii) Field
Operations Division (FOD) (iii) Data Processing Division (DPD) and
(iv) Coordination and Publication Division (CPO). Each Division is headed
by a Deputy Director General except the Field Operations Division, which
is headed by an Additional Director General.
The SDRD has its headquarters at Kolkata. FOD has its headquarters
at Defui with a network of six zonal offices located at Lucknow, Kolkata,
Nagpur, Bangalore, Jaipur and Guwahati, 48 regional and 117 sub-regional
offices spread throughout the country. The DPD with its headquarters at
Kolkata functions through the Data Processing Centres located at Delhi,
Girid.ih, Nagpur, Kolkata, Ahmedabad and Bangalore. The CPO located at
Delhi functions as the Secretariat of DG and CEO.
The subject coverage of the socio-economic surveys conforms to a welldefined cycle of surveys extending over a period of 10 years. Surveys on
consumer expenditure, employment and unemployment, social consumption
(health, education, etc.) manufacturing enterprises and service sector enterprises
in the unorganised sector are covered once in five years, while subjects like
land holdings and livestock holdings, debt and investment, are covered once

122

India 2005

in 10 years. Thus, out of a cycle of 10 years, pre-assigned subjects are allocated

for nine years while one year is kept for an open round to cover special topics
of current interest to mE'E't the demand of the data users. The data on
consumer expenditun' and employment and unemployment are also collected
in every round from a thin sample along with the main survey of enquiry.
The NSS 57"' round (July 2001 - June 2002) was earmarked for collection
of data on economic and operational cha,racteristics of unorganised enterprises
in the servin's sector (excluding trade and finance). The NSS 58th round (July
2002 - December 2002) survey was on disability, hOUSing condition, village
facilities and slum particulars besides household consumer expenditure and
empillyment-unemployment.
The NSS 59 th round survey (January-December 2003) was on land and
livestock holdings, debt and investment. A Situation Assessment Survey of
Farmers was also conductl'd along with the 59'" round, on behalf of the
Ministry of Agriculture. The NSS 60th round survey (January - June 20(4) is
on morbidity and health can' besides consumer expenditure, employment and
unemployment.
The results of NSSO surveys are brought out in the form of NSS reports.
So far, 4H8 reports have been brought out. NSS reports (hard and soft copies)
are available for sale. Summary results are also published in Sarvekshana,
a biannual technical journal of the NSSO. Validated unit level data relating
to various surveys of the NSSO an' available on CD-ROM for sale at nominal
price.
The NSSO undertakes the fieldwork of Annual Survey of Industries
under statutory provisions of tht' Collection of Statistics Act, 1953 (Central
Rules, 1(59) covering all factories registered under Sections 2m (i) and 2m
(ii) of the Factories Act, 1948, and bidi and cigar units registered under the
Bidi and Cigar Workers (Conditions of Employment) Act, 1966.
The NSSO also provides technical guidance to states in the field of
agricultural statistics for conducting crop estimation surveys and keeps a
continuous watch on the quality of crop statistics through the Improvement
of Crop Statistics Scheme.
The NSSO regularly collects rural retail prices on monthly basis from
shops I outlets in selected markets located in a sample of 603 villages and 59
urban centres for compilation of Consumer Price Index numbers.
The NSSO conducts Urban Frame Survey (UFS) for providing sampling
frame of first stage units in the urban sector. It is carried out in a cycle of
five years, thereby providing updated frame twice in a span of 10 years.

PRICES
The new series of index numbers of wholesale prices (base 1993-94-100) was
introduced from 1 April 2000. These series have 435 distinct commodities as

Basic Economic Data

]23

against 447 commodities in the old series (baSIC' 1481-82=1 1)0). Tlw number of
price quotations has also been revised from 2,371 in the earlier series to 1,9Hl
in the nt'W series.
Table h.8 gives index numbers of wholesale prices (1993-94 =100) for the
period 1995-96 to 2002-03 for all commodities and for selected groups Jsubgroups of thret' major groups, namely: (i) primary articles; (ii) fuel, power,
light, lubricants; and (iii) manufactured products.

CONSUMER PRICES
Tahle 6.9 gives consumer price index numbers for industrial workers for the
period 1993-94 to 2003-04 and tabll:' 6.10 gives consumer prict' index numbers
for urban non-manual employees for the period 1':193-1'4 to 2003-04 at the alJIndia level and somt' sell;'cted centres.

ECONOMIC CENSUS AND SURVEYS

Central Statistical Organisation (CSO) undertook a countrywidt' Economic
Census, first of its kind, in 1977 to provide a better frame for follow-up
surveys and background information, viz., distribution of non-agricultural
t'nterprises, employmt'nt, I;'tc., needed for efficient sampling design, to bridge
tht' data gaps in thc unorganised sector of non-agricultural economy covering
non-agricultural establishments, i.e., employing at least one hired worker on
a fairly regular basis. The first Economic Census was followed by two sample
surveys-one in 197R-79 relating to un organised manufacturing and the
second in 1979-80 devoted to trade, hotels and restaurants, warehousing and
services.
The second Economic Census was conducted in 1980 alongwith the
houselisting operations of Population Census 198] with enlarged scope and
coverage of all types of enterprises, viz., (a) Own Account Enterprises (OAE),
(b) Non-Directory Establishments (NDE), and (c) Directory Establishments
(DE) in the non~agricultural sector except crop production and plantation. The
items of information collected include location of enterprise, nature of
operation, type of ownership, social group of owner and total number and
number of hired persons usually working in the enterprise. According to this
cen'!lUS, there were 18.4 million enterprises (excluding Assam) in the country
employing 53.6 million persons. Among these, there were 16.9 million
enterprises (58.4%) in rural area~ engaged in non-agricultural activities
employing 50.7 million person., (43.3%) in rural areas. Based on the frame
and information from this census, three follow-up surveys were carried out,
one in 1983-84 on hotels and restaurants, transport, storage and warehousing
and services; second in 1984-85 on unorganised manufacturing, and third in
1985-86 on whole-sale trade and retail trade. In addition, OAEs and NOEs
engaged in manufacturing and repairing activities were surveyed by NSSO
during July 1984-June 1985 and July 1989-June 1990 respectively and OMEs
were surveyed during October 1984-September 1985 and October 1989 to
September 1990. The sampling frame of 1980 census was updated during 198788 in 64 towns.

124

India 2005

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Basic Economic Data

125
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126

India 2005
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12H

India 2005

The third Economic Census 1990 was conducted along with the houselisting operations of 1991 Population Census in all States/UTs except Jammu
and Kashmir. The all-India results of 1990 were brought out by CSO. On the
basis of the frame thrown up by Economic Census 1990, follow-up survey
covering sectors of mining and quarrying and storage and warehousing was
conducted during 1992-93 and survey on hotels and restaurants was conducted
during January to September 1994 and another follow-up survey covering
directory trade establishments was conducted during 1996-97. In addition, the
first integrated survey on unorganised manufacture covering Own Account
Manufacturing and Repairing Enterprises, NDE Manufacturing and Repairing
Establishments and Directory Manufacturing and Repairing Establishments
were undertaken during NSS 51" round by NSSO. As per the results of
Economic Census 1990 (including Jammu & Kashmir) there were 25 million
enterprises out of which 22.7 million were in the non-agricultural sector. The
total number of persons usually working were 72.1 million. Of these, 40.2
million were hired workers. A total of 17.7 million enterprises operated without
any hired labour on a regular basis and were mainly run by the household
members themselves.
The fourth and tht, latest Economic Census was conducted during 1998
in all States/VTs in collaboration with concerned State/VT Directorates of
Economics and Statistics. It has been de-linked from the Population Census
with a view to building up a time series with a shorter interval. The All-India
Report had been released by CSO. The report is available on the website of
till' Ministry (http://mospi.nic.in).
As per all-India results, there were 30.35 million enterprises of which
26.87 million relate to tht non-agricultural sector. Total number of persons
usually working was 83.30 million, of which 43.29 million were hired workers.
A total of 21.38 million enterprises operated without any hired workers on
regular basis. This census covered all the enterprises, viz., Directory
Establishments (DE), Non-Directory Establishments (NOE) and Own Account
Enterprises (OAE). As a follow-up of this, survey on unorganised manufacturing
was conducted during 56th round by NSSO. In this survey, information from
1998 Economic Census was used for stratification and list of villages and blocks
was used as frame for selection of first stage units.
The fifth Economic Census is proposed to be conducted in the year 200405. The census as in the fourth Economic Census would cover all entrepreneurial
activities throughout the country (except crop production and plantation). The
number of household and enterprises for which data are to be collected would
be around 2,114 lakh and 400 lakh respectively. For this purpose a Standing
Committee has been constituted under the Chairmanship of Director General,
Central Statistical Organisation to look into various aspects relating to conduct
of fifth Economic Census. The Standing Committee recommended constitution
of three Working Groups, namely, Working Group-I for planning of the survey
and finalisation of content of formats of the schedules, Working Group-II on
conduct of field survey work and the working Group-ID for processing and
release of results, etc.

Basic Economic Data

129

Planning Commission has accorded in principle approval for conduct

of fifth Economic Census with budget outlay of Rs 70 crore for annual plan
2004-05 and total outlay of Rs 99.20 crore for the Tenth Five Year Plan. There
are certain new features to the fifth Economic Census that includes canvassing
of a separate Address Slip among the establishment for compilation of
directory for larger establishments.

ANNUAL SURVEY OF INDUSTRIES

The Annual Survey of Industries (ASI) is the principal source of industrial
statistics in India. It provides statistical information to assess and evaluate,
objectively and realistically, the change in the growth, composition and
structure of the organised manufacturing sector comprising activities related
to manufacturing processes, repair services, generation, transmission, etc., of
electricity, gas and water supply and cold storage. The survey is conducted
annually under the statutory provisions of the Collection of Statistics Act,
1953. The ASI extends to the entire country except the States of Arunachal
Pradesh, Mizoram and Sikkim and Union Territory of Lakshadweep. It covers
all factories registered under Sections 2m(i) and 2m(ii) of the Factories Act,
1948. The survey also covers bidi and cigar manufacturing establishments
registered under the Bidi and Cigar Workers (Conditions of Employment) Act,
1966. Certain services and activities like cold storage, water supply, repair of
motor vehicles and of other consumer durables like watches, etc., are covered
under the survey. Defence establishments, oil storage and distribution depots,
restaurants, hotels, cafe and computer services and also the technical training
institutes are excluded from the purview of the survey. The data collected
through ASI relate to capital, employment and emoluments, consumption of
fuel and lubricants, raw material and other input/ output, value added, labour
turnover, absenteeism, labour cost, construction of houses by employers for
their employees and other characteristics of factories/industrial establishments.
Field work is carried out by the Field Operations Division, NSSO. The CSO
processes the data and publishes the results.
The ASI 2001"'()2 detailed estimates for factory sector indicate a total of
1,28,549 working factories in all States and Union Territories except the States
of Arunachal Pradesh, Mizoram and Sikkim and Union Territory of
Lakshadweep. This number does not include the electricity units registered
with the CEA. These factories together had a total fixed capital worth
Rs 4,31,96,013 lakh, productive capital Rs 5,32,36,598 lakh and invested capital
Rs 6,05,91,285 lakh. These factories provided gainful employment to about
7.69 million persons and distributed Rs 51,05,957 lakh as emoluments to
employees.
The latest ASI 2002-2003 quick estimates for factory sector indicate a total
of 1,28,039 working factories in all States and Union Territories except the
states of Arunachal Pradesh, Mizoram and Sikkim and Union Territory of
Lakshadweep. This number also does not inlcude the electricity units

130

India 2005

registered with the CEA. Tlwse factories provided gainful employment to

about 7.R9 million persons and distributed Rs 68,70,748 lakh as emoluments
to employees.

ENERGY STATISTICS
The Industrial Statistics Division of eso also brings out a publication on
energy statistics containing tinw series data of diffl>rent energy SOUrCl$, viz.,
coal, crude pdroleurn, natural gas and electricity (hydro and nuclear), etc.
For the first time in 200(]-OI, diltd on installations made under major nonconventional energy programmes at State and all-India level are also
presented in this publication. The Statistics presented in this publication art'
based on thl' latest data supplied by the concerned government departments/
organisations, viz., Office of Coal Controller; Ministry of Petroleum and
Natural Gas; Office of the Economic Adviser, Ministry of Commerce dnd
Industry; Centr"l Electricity Authority; and Ministry of Non-Conventional
Erwrgy Sources. Efforts afe being made for fl'gular updation of this publication.
TIl(> latest publication "Energy Statistics" for the year 2002-03 is eleventh in
the Sl'r;ps of documents brought out from timl' to time by the eso to med
the information lwpds of national and international policy makers,
administrators and researchers n>nCt'rned with energy sector. Time series data
relating to production, availability, consumption and prieto indices of major
SOlll"Cl'S of energy in India for 33 years (from 1970-71 to 2002-03) has been
prt'sented in the publication "Energy Statistics" for the year 2002-03.
TABLE 65: POPULATION BY CATEGORY OF WORKERS
(in

CTOI\')

Rural

Urban

"Iotal

Total l'opulation

74.25

28.6]

1ll2.Rti

l()t.11 Workers

31.00

9.23

40.22

8.08

0.85

8.92

22.'!2

8.38

31.30

20111 (','nsus

Marginal Workers
Main Work... r~
(i)

( 'ultivators

12.47

0.26

12.73

(ii)

Agricultural L\bourers

10.24

0.43

10.68

(iii)

Household Industry Workers

1.21

0.48

1.70

(ivJ

Other Workers

7.07

8.05

15.12

Note : India figures exdud ... thoSt of the three sub-divisions viz, Mao Maram. Paomata and
Purul of Senapati district of Manipur as population Census 2001 in these three sub-divisions
were cancelled due to technical and administrative reasoll.'i although a population census was
carried out in these sub-divisions as per schedule.

1]1

Basic Economic Data

~ "E N8
~
...

:E

{i

......

:E

..r:.
i::

...

0:::

t:i

~
(J)

'"

.-

0
0

0
0
0

,r,
0-:
<,",

-c:

';l
<'";
h

,I')

'" '"
_,;;

<,",

<,",

;t

l-'~

..,.

:;:

"',

{i

0-

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00

....... 8:
.-

:E

".;

'I')

'"i

If'
r'",:

~,

a,
~

'"
N

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,/"

'"..0

'1',
00

(I";

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,r!

00

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tr;

0-'

c
h

'"

......,

0-

r-

,~

'"

t~
h

.-

'"

'"

00

'"

.,.i
-c

;.:1

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h

If,

:;

t'-

<'...,

'"

t,

'"

"1'

_,;;

".,

.,...,

<Xl

'"

-<r:

~
(J)

Cl

..r:.v

(;,

... is:
....

:E

If,

"",

_,;;

0:::

'-'

... ,

'"

2;

~
~

{j

.......

is:

:E

In

II',

'"N,..,

<Xl
"1'

;g

.-

"

an

(",

Ir)
..0

'"f:
N

I~

0-

'"

:E
>-

...J

P-.

:E
~

..r:.v

'"
is:
....... ......

:E

...,...,

..,.

.,:

'"
~

;::;

i1I,
It')

:;
.,;

-.c

...J

ttl

;:s

an

"E... ""~
:E

{j

......

:E

...

""~

.n

II',

""....;
...,

.,..;

II')

..0

N
~

...,'"

;:!;

....;

'"
'" '"

If;

Ii.
..0

1',
~

OC>

...

.-

"
t,-

'"

'"

i;

...,
'"

'"

'-C>

0-:

'"

132

India 2005

TABLE 6.7: REGISTRATIONS, VACANCIES NOTIFIED, PLACEMENTS

AND NUMBER OF JOB-SEEKERS
(LIVE REGISTER) 1994-2003 OANUARY-DECEMBER)
Year

Number of
Eimploymenl
Exchangcs l

Registrations

(IN

Vacancies
notified

Placements

Live
Register
at the
end of
year

Percentage
increase in
Live Register
over
previous year

THOUSANDS)

1994

1191

5,927.3

396.4

204.9

36,691.5

1.1

1995

1195

5,8511.1

385.7

214.9

36,742.3

O.l

1996

914

5,872.4

423.9

233.0

37,429.6

1.9

1997

934

6,322.0

393.0

275.0

39,139.9

4.6

1998

945

5,852.0

358.8

233.3

40,089.6

2.4

1999

955

5,966.0

328.9

221.3

40,371.4

0.7

2000

958

6,041.9

284.5

177.7

41,343.6

2.4

2001

938

5,552.6

304.1

169.2

41,995.9

1.6

2002

939

5,064.0

220.3

142.6

41,171.2

-2.0

2003

945

5,462.9

256.1

154.9

41,388.7

0.5

Including University Employment Information and Guidance Bureaus.

Source; DGE&tT

Basic Economic Data

133
('I_O

9.....

.....

"OO'~_

~~t!~Pit-!~~

_ ------

.......

t .....

t,....

:!

CCl

. In a:.
~

0-..

"'It'

-..0

tr'I

"1'

a-.

(T'j

~g~~:!}:Z~~

-_,j------

C"''''''-C~N'';<C

.....

~~~i~~~~
...........

-----

~O_'OOt'~l-....

OONct)

~_
~~g~~~g~
__

r"""'t

___

mot-....t;ClLn-or-....

----_ _-

ui";-.ci06"",r..:r..:c:i

_trlNNN("jN("f"'l

.......

NOOMNN

.....

~~~;i~
1"""'4

...-I

"""

......

\C)tf')N~~II)O:OOt""'"l

----

~lI')NLt).~-r-...:~
NNNMc:J\""":
N_N

......

,.....- .....

""""NNOoo"1'''>

O':cx),....;o\~~.JSO
N_("f"')_"NNNN

-------~-

..".

~a.r)

'"
~

India 2005

134

TABLE

h.4:

CONSUMER PRICE INDEX NUMBER FOI\

INDUSTRIAL WORKERS
(Hasl'

Mumbill

Yrar

Kol~at"

Ahmtdabdd

I'IR2=IOO)
Chcnnai

O,lhi

Kanpur

All India
AlIltrm~

Food

Linking Factor

5.12

4.71\

4.74

5.05

4.6'1

4.'17

4.93

4.'18

199344

27'1

2:;7

2M

2M

262

278

258

272

1'1(1495

314

285

2Rti

2'17

2H3

]Or,

2R4

304

I'NS-46

.141,

309

.11'1

336

313

.131

.113

337

1996-97

3n

34.1

347

:{h7

337

356

342

369

1'147-911

412

.163

369

390

360

392

3b6

3RH

19'1/;'<)<)

461

4[)9

427

4.12

420

41,)

414

44S

199'1-20011

474

428

439

4S2

430

4Rh

42R

446

2000-OJ

512

444

456

478

430

SIR

444

453

200J-()2

S31>

4h5

S07

494

4SJ

S:'I4

46:'1

466

2002-OJ

5h5

4RO

S3J

51'1

461

556

4R2

477

2001-04

SH8

4'12

547

536

477

575

500

495

TABLE 6.10: CONSUMER PRICE INDEX NUMBER

FOR URBAN NON-MANUAL EMPLOYEES
(Ba~'

Year

1964-85-1(0)

Mumbai

Kolkata

Chennai

Dclhi/NC'w Delhi

All-India

1993-94

21<)

212

232

2J 1

216

1994-95

239

229

259

229

237

1995-%

260

251

284

247

259

19%-97

285

268

311

267

283

1997-98

309

2116

334

2118

302

1998-'19

339

316

368

338

337

1999-2000

353

328

386

359

352

2000-0}

375

344

420

381

37]

2001-02

395

355

456

398

390

2002-03

406

364

4B6

412

405

2003-04

415

382

502

425

420

Note: A New Series ot Index Numbers on Base 1984-85 - 100 was introduced from November
1987. All India Index on New Bilse may be converted to Old Base (1%0-100) by multiplying
the conversion factor 5.32. Conversion factors in respect of Mumbai, Kolkata, Chennai, Delhi /
New Delhi are 5.38,4_51,5.77 and 5.08 respectively.

Commerce

FOREIGN trade has played a crucial role in India's economic growth. India's
exports covl'r a wide range of items in the agricultural and industrial sectors
as also handloom, cottage imd handicraft articles and of-late, petroleum
products. Project exports which include consultancy, civil construction and
turn key contracts have also made a significant progress in recent years.
Computer software exports have also increased significantly. Imports have
increased substantially, bulk of which comprise items likl' petroleum and
petroleum products, fertilisers, precious and semi-precious stones for export
production and capital goods, raw materials, consumablcs and intermediates
for industrial production and technological upgradation.
TABLE 7.1

INDIA'S FOREIGN TRADE

(Rs LTon')

Tot,ll
trade

Tradt
deficit

Exports

!mporb

1'1'1(1'11

32.5'ifl

4:>,193

75,75J

-10,635

1'1'11-92

44,042

47,851

91,893

-3,R09

1992-'13

53,hll[-l

h3,37S

1,17,Oh3

-9,687

I'J'J3-(j4

69,7SI

73,101

1.42,1-152

-3,350

1'1'1495

fl2,tl74

89,971

1. 72.64 'i

7,2'17

19"'5-96

1,06,353

1,22,678

2,29,031

-16,325

1'l96-97

1,11-1,1117

1,31l,cnO

257,737

20,103

19'1791l

1,30,]01

1, S4,17h

2,84,277

-24,075

1991\99

1,39,7'i1

1,78,332

3,18,OB5

-38,57<,1

1999-20()()

1,59,561

2,15,236

3,74,797

-55,675

2000-0)

2,03,57)

2,30,S?)

4,34,444

-27,302

2001-02

2,0<,1,018

2,45,200

4,54,218

-36,182

2002-03

2,55,137

2,97,206

5,52,343

-42,069

2003-04(P)

2/H,582

3,53,976

6,45,558

-62,394

Ye<lr

(P) : Provisional Data

TRADE SCENARIO
India's total external trade (exports plus imports including re-exports) in the
year 1950-51 stood at Rs 1,214 crore. Since then, this has witnessed continuous
increase with occasional downturns. During 2003-04 the value of India's

India 2005

136

external trade reached Rs 6,45,558 crore. A statement indicating India's total

export, import, total value of foreign trade and balance of trade from the year
1990-91 to 2003-04, in rupee terms, is given in table 7.1.
India's exports of merchandise goods in dollar terms during 2003-04 are
valued at US $ 63.5 billion. With this achievement, which implies a growth
rate of 20.36 per cent, the target of 12 per cent fixed for 2003-04 has been
exceeded. With this, exports have exceeded the targeted growth rate in the
first two years of the Tenth Five Year Plan. In Rupee terms, the exports of
merchandise goods during 2003-04 are valued at Rs 2,91,582 crore compared
to Rs 2,55,137 crore in 2002-03 with a growth rate of 14.28 per cent. India
has achieved this at a time when the world economy was struggling to revive
and even many of the developed countries have found it difficult to achieve
growth in their exports.
At tht' same time, imports increased from Rs 2,97,206 crore in 2002-03
to Rs 3,53,976 crore during 2003-04 thereby registering a growth of 19.10 per
cent. In dollar terms imports increased by 25.44 per cent. In rupee terms the
trade deficit in 2003-04 was Rs (-) 62,394 crore as against Rs (-) 42,069 crore
during 2002-03.
India has trading relations with all the major trading blocks and all the
geographical regions of the world. Region-wise and sub region-wise spread
of India's trade during 2002-03 and 2003-04 is given in table 7.2. In dollar
terms, Asia and Oceania accounted for 46.35 per cent of India's total exports,
followed by West Europe (24.02 per cent) and America (21.10 per cent) during
2003-04. India's imports were highest from Asia and Oceania (34.54 per cent)
followed by West Europe (23.58 per cent) and America (8.59 per cent), during
the same period.
TABLE 7.2: DIRECfION OF INDIA'S TRADE
(Rs crore)

Region

Exports
April-March
2002-03
2003-04

Imports
April-March
2002-03

2003-04
83.456

West Europe

60,774

70,030

72,813

East Europe

1,613

2,404

1,432

1,687

CIS and Baltic States

4,448

4,691

4,077

5,795

1,09,985

1.35,134

86,810

1,22,273

Africa

14,656

17,474

16,574

14,640

America

62,677

61,537

29,260

30,403

6,245

5,169

5,011

5,342

Asia and Oceania

Latin American Countries

EXPORTS

Exports in Rupee terms have shown an increasing trend and diversification

of its base over the years. While there are year-to-year variations, the

Commerce

137

commodities whose exports have been increasing over the last few years and
also in 2003-04 include agriculture and allied products, ores and minerals,
gems and jewellery, chemical and allied products, engineering goods, electronic
goods, textiles, petroleum products and procesSt'd foods. Exports of principal
commodities during 2003-04 as compared to the corresponding period of
previous year are given in table 7.3.
TABLE 7.3 : EXPORT OF PRINCIPAL COMMODITIES
(Rs cfore)

Commodities

2002-03

2003-04

Percentage
Growth

Plantations

2,M6.()4

2,676.78

1.16

22,848.97

24,474.22

7.11

Marine products

6,928.05

(>,067.84

-12.4

On'S and Minerals

9,659.92

10,755.74

11.34

Leather and manufactures

8,945.02

9,306.66

4.04

43,700.65

48,293.86

JO.51

351.38

429.00

22.09

Chemical and related products

38,030.65

44,993.05

18.31

Engineering goods

37,211.02

47,853.211

21\.60

6,265.07

7,992.39

27.57

239.32

275.06

14.93

53,627.52

55,003.70

2.57

Handicrafts

3,800.64

2,032.46

-46.52

Carpets

2,577.50

2,616.93

1.53
1,513.90

Agricultural and allied pmducts

('..ems and Jewl>llery

Sports goods

Electronic goods

Project goods
Textiles

50.28

811.47

Petroleum products

12,469.22

]6,168.04

29.66

Unclassified Exports

5,784.73

11 ,831.13

104.52

Cutton Raw (including CottlID waste)

IMPORTS
Imports are made to meet the essential requirements of domestic consumption,
investment, production and as inputs for exports. Bulk imports as a group
registered a growth of 15.71 per cent in rupee terms during 2003-04 and
accounted for 37.87 per cent of the total imports. This group includes,
fertilisers, edible oils, newsprint and petroleum products. The other principal
imports consist of pearls, precious and semi-precious stones, machinery,
electronic goods, iron and steel, medicinal and pharmaceutical products,
organiC and inorganic chemicals, coal, coke and briquettes, artificial resins,
etc. The details of Indian imports of principal commodities during 2002-03
and 2003-04 are given in table 7.4.

138

India
TABLE 7.4

2011~

IMPORT OF PRINCIPAL COMMODITIES

(R~

Commodities

2002-03

2003-[)4

in crnf(')

Per<:enta~('

Growth
A. Bulk Imports

1,1 'i,HM. 75

I ,34,01>7.4~

15.71

H1I 11

-25.6!:l

h'rtili~rs

1,02H.4Y

3,301.17

9.0H

Edible Oil

H.779.h4

II,h74.41

32.97

Pulp i1nd wash' paper

1,1>61.76

I,H76.54

12.93

j'dr"r board and llldilufacturt'"

2.(l43.'12

2,71>'1.IH

Newsprint

I. 134. hI>

1,f)'1~

40

~,JlIl44

34,27

'>,022.3H

'i. 74h.n

14.42

4.'>61>.92

h.H93.12

'i0.94

I'etrol('um crude and product.,

!is,.ih7.0n

Y4,S:W()1I

](J.72

B. J'l'arJs, Prl'cious and

2Y,34().9fJ

M<'talliferroll~

on's and m(,tal scrilp

Iron and Stet'l

II.M

Semi-Precious Stones

C. Machinery

3fJ,H47.40

37.1>27.11

21 '11;

2,h2h.34

1,744.HH

-3.1.%

l.lH,52h.4(J

1.47,7HII.4H

24.hH

Pub",

2,737.09

2,251 IIi

-17.75

Coa!. coke and nri4ulltls

5,99<).27

h,47R.77

Nonm .. tallic milwrdl n1dllUf.lctur.. s

1,135.71

1,500.12

32.0Y

14,h40.3h

IH.-lH2.47

2h.25

).33'1.65

1,('00.53

19.47

Ml'di<:inal and Phantl.! Products

2,1'6<;.20

2,95'i.6:1

3.16

Artifid<ll J'('sins, etc.

3,7H3.71

4,%2.1'1

31.16

Chemical pwducts

2,1 H7.3H

2,R9H.67

3252

Other Tl'xtrl,' yam, h,bri('s, ete.

1,647.54

1,949.38

IID2

ManufartuTl'~

2,363.10

3,157.93

5,4H4.!l9

5,1135.51)

2.76

27,091;.53

34,442.91

27.10

1,945.9Y

3,268.45

67.96

20,753.13

31,326.69

50.95

D. Project Goods
E. Others

Organic and In('rganic chemic,lis

Dyeing,

tannin~

Professional

matenal

ot metab

instnrment~,

etc

Electronk' goods

Wood and wood products

Gold and Silver

Commerce

139

INDIA'S FOREIGN TRADE

RUPEES CRORE
],SO,IlOO

3011,noo

;' OU,oon

i
I

i 1},O 1)00
I

"EXPORTS "

l,llO,OOO

50001)

i __

CI>
CI>

'"

8
N

9
8
'"

.
~

Plov/!tfOftc11

SolJrc., DGCI & s, KolkM,)

KSK

India 2005

]40
EXPORT PROMOTION MEASURES

A Medium-Term Export Strategy which is co-terminus with the Tenth plan

period (2002-07) was announced in January 2002 with the objective of
enhancing India's exports. A number of programmes/schemes have been
launched which include schemes like Assistance to States for Developing
Export Infrastructure (ASIDE), establishing Agri Export Zones, Market Access
Initiative, strengthening "FoclIs LAC" programme, introducing "Focus Africa"
programme, etc. In the Exim Policy, 2003-04 and Exim Facilitation Measures
announcld in January 2004, bt.sides, tht' focus on Service exports and policies
to strengthen Special Economic Zones (SEZs), a new programme called "Focus
CIS" has been introduced. Thus measures are being taken from time to timE;'
to increase India's exports.

INDIA'S TRADE WITH NAFTA COUNTRIES

The North America Free Trade Agreement (NAFIA) was signed in 1994. It
is free tradt area with a custom union between United States of America,
Canada and Mexico. This is the largest and most important trading bloc of
the world. The import of NAFTA is about 25 per cent of world's total.imports
and the exports constitute about 19 per cent of world's total exports. The intraregional trade between three partner countries is around US $ 707 billion. This
trade bloc has special significance for India as USA is not only the biggest
trading partner of India but also plays a major role in the diversification and
creation of trad(' within the NAFTA region.
India-USA Bilateral Trade: USA is India's largest trading partner and plays
a dominant role in India's trade. It accounts for 19.8 per cent of India's exports
and around 655 per cent of India's imports. But, India accounts for only about
one per cent of USA's total exports and imports. India's export and import
to / from USA have been as under :
(in US $ million)
Export~

Growth
per Cl'nt

Imports

Growth
per rent

Balance of
Trade

1<l97-l)!l

1i735.40

19Y!l-QQ

71YlJ.M

6.8'1

3640.25

(-) 1.'1'1

(+) 355'1.34

jQ<l'l-2000

83'15.61

16.61

351iO.22

(-) 2.20

(+) 4B:i5.39

3015.00

(-) 15.31

(+) 6290.12

3714.18

(+) 3021.22

2000-01

93n5.12

In.B3

2001-02

8513.34

(-) 8.510

314'1.62

(+) 4.46

(+) 5363.73

2002-03

108%.76

27.98

4443.58

(+) 41.08

(+) 6452.18

April-J.lI1WlrY

'1D05.62

3493.51

(+) 5572.11

2002-0:1

April-February
2003-04
(S(lIlYCI': DGCJ&S)

8931.53

(. )1.48

4()02.47

(+) 14.57

(+) 4929.06

Commerce

141

Exports: During the period April-January 2003-04 India's export to USA were
at US $ 8,031.53 million declined by 1.48 per cent from the corresponding
period of the previous year, when the exports were US $ 9,065.62 million.
The share of India's exports to USA out of India's global exports has been
recorded at 18.33 per cent during April-January 2003-04 which was 21.21 per
cent during the corresponding period of the previous year. The major items
of export to USA during April-January 2003-04 are as below :
(in US $ million)

Gems and Jewellary

2897.13

(32.44 per cent)

RMG cotton including accessories

R74.79

(9.79 per cent)

Cotton yam, fabrics, madeups

416.15

(4.66 per cent)

Manufactures of metals

366.36

(4.10 per cent)

Drugs, Pharmaceutics and

357.79

(4.01 per cent)

Fine chemicals

.Imports : India's imports from USA during April-January 2003-04 have been
recorded as US $ 4,002.47 million showing an increase of 14.57 per cent over
the imports in the corresponding period of the previous year when they were
recorded at US $ 3,493.51 million. During this period, the share of India's
imports, have been recorded as 6.42 per cent, which was 6.97 per cent during
the corresponding period of the last year. The major items of import from
USA during April-January 2003-04 are as below :
(in US $ million)

Electronic Goods

833.27

(20.82 per cent)

Machinery except electric

and electronic

479.83

(11.99 per cent)

Other commodities

358.55

(8.96 per cent)

Transport equipment

297.30

(7.43 per cent)

Professional instruments, etc.,

231.88

(5.79 per cent)

except electronics

During the period April-January 2003-04, the balance' of trade has

remained in favour of India at US $ 4,929.06 million. In the corresponding
period of last year it was US $ 5,572.11 million.

India-Canada Bilateral Trade: Indo-Canadian bilateral trade has increased

from US $ 848.73 million in 1997-98 to US $ 1,256.91 million in 2002-03,
registering 48.09 per cent increase within a period of five years. India's exports
were increased by 35 per cent and imports by about 26 per cent during this

142

India 2005

period. The bal.1nce of tr,lde has been in favour of India for the last fiw years.
The pattl'nl of tr,llit- during last five years has been as follows:
(in US $ million)
YeM

I:'p"rh

I ()97(jH

127X2

l,!(j!Pil!

4i'.lOI

1'1'1'1-2000

(;wwlh
pl'r cl'nt

Import.,

Crowth
p,'r cent

Ilal,mn' of
'l'raJ,'
h.91

420.'!1
lH5.57

(-) HAO

H7.44

57H :,7

lHO "I

( ) 1..11

197.77

200001

hSh.,t7

JIll' 07

21l01-()~

:;H".H2

( )10.<12

55.1H

2002-0.1

h9,l-l27

1'!.-+1I

131.9H

April-I,lIluM\'

57.' .. 11

1t1.51!

25'!.40

6H.27

21l1l2-0.1

April "lIllJar\'

WI ..10

4117.1')

]04.11

(-I Ill,

20(J.\04

[xT,orts : During April-Jdnuary 20OJ-04, India's l'xp(lrt~ to Canada at US $

601.3() million rl'gistered a positive growth of 5.06 per cent over the
corrl'~pol1ding pl'riod of tIll' previous yl'<lr when tIll' exports were at US $
572.31 million. The share of India's exports, to Canada (lut of India's global
l'Xpurts during 20():I-04 was recorded at 1.23 per Cl'nt. which was 1.34 per
cent during till' m1Tesponding period of the previous year. The major
cummodities of exports to Canad" during the period Apnl-}i1l1uary 2003-04,
were ,15 below:
(111

LIS $ millioll)

Ri\1(, ('ottOIl (incilldin),; ,Il'l'('ssoril's)

141.22

Drugs, ph'lrl1l<ln'util'i1I~ ,llld

hH.29

(11.:16 per cent)

Cotton yarn, fabric;., maLiPlIps, ptc

42.31

(7,()4 pl'r cpnl)

M,HlUfactUfl'S of ll11'tdls

3H12

(5.16 per cent)

25.15

(4.18 per cenl)

(2.1.19 Ilt'r l't'nt)

tinl' chl'micals

Imports: During April-January 2003-04, India's imports from Canada were

recorded at US $ 497.19 million shOWing a negative growth of 1.36 per cent
over the imports in corresponding period of the previous year when they were
recorded, US $ 504.05 million. The sharl' of lndia's imports from Canada out
of India's global imports, were rcwrded at 0.80 per cent during this period,
which were 1.01 per cent during the corresponding period last year. The major

Commerce

143

commodities of imports from Canada during the period April-January 2003-04

wert' as below :
(/II

US

Pulses

103R~

(20.85 per cent)

Newsprint

95.30

(19.17 pt'r cm!)

Ferti lizeTS manufactured

60.H1

(12.23 p('r cent)

Pulp and wasil' paper

50.78

(10.21 per ct'nf)

Electronic Goods

26.H.1

(5.40 per cmf)

IlIil/iOIl )

During April-January 2003-04 the balance of tradl' was in favour of India

at US $ 104.11 million. In the corresponding pl>riod of last yt'dr it was US
$ 68.27 million.

India-Mexico Bilateral 1,ade: As in the case of other Latin American

countries, growth in trade between Mexico ilnd India has bpen inhibited by
such factors, as distance, difference of language, hold of multinationals in the
neighbourhood, etc.
In spite of constraints, India's trade has grown consistently at a good
pace over the years. The Indo-Mexican trade during the last five years has
been as under:
(in US$ million)
Year

Exports

Export (;r(lwth
rer n'nt

Imrnrth

Import Cr(lwth
peT ('{'nt

79.4'1

flillilllCt' (If
Trade

1997-98

lJ l.OH

1998-99

BO.20

17.22

92.02

1S.7h

38.18

1999-2000

140.H9

H.20

%.49

4.H5

44.40

2000-01

20851

4H.OO

53.f(\

(-) 44.21

154.69

2U01-02

237.45

13.87

h2.24

15.62

17<;.21

2002-03

2(11.70

10.21

65.52

5.28

190.18

April-J.muary
2002-03

224.44

April-January
2003-04

195.8b

:'\1.58

49.44

(-)12.73

61.07

174.50

22.28

134.79

Exports : Ouring April-January 2003-04, India's exports to Mexico were at

US $ 195.86 million, registering a negative growth of 12.73 per cent over the
corresponding period of the previous year when the exports were at US $
224.44 million, The share of India's exports to Mexico out of India's total
exports during this period was recorded at 0,40 per cent which was 0.53 per

144

India 2005

cent during the corresponding period of the previous year. The major
commodities of exports to Mexico during April-January 2003-04 were as
below:
(in US $ million)

Drugs, Pharmaceuticals and Fine Chemicals

51.30

(26.19 per cent)

RMG Cotton (including accessories)

31.94

(16.31 per cent)

Transport equipments

21.56

(11.01 per cent)

Inorgank / organic / agro chemicals

9.15

(4.67 per cent)

Machinery and Instruments

8.85

(4.52 per cent)

Imports : During April-January 2003-04, India's imports from Mexico were

recorded at US $ 61.07 million showing an increase of 22.28 per cent over
the imports in the corresponding period of the previous year when it was
recorded at US $ 49.94 million. During this period, the share of India's import
from Mexico out of India's total import has been recorded as 0.10 per cent
which was also 0.10 per cent during the corresponding period of last year.
The major commodities of imports from Mexico during April-January '20C304 were as below :
(in US $ million)

Electronic Goods

14.51

(23.76 per cent)

Medicinal and Pharmaceutical Products

12.47

(20.42 per cent)

Iron and Steel

7.68

(12.58 per cent)

Silver

6.07

(9.93 per cent)

Metaliferous ores and metal scrap

4.08

(6.69 per cent)

During April-January 2003-04 the balance of trade was in favour of India

at US $ 134.79 million. In the corresponding period of last year it was
US $ 174.50 million.
INDIA-EUROPE TRADE
European Countries account for about 25 per cent of India's total trade at
US $ 34 billion. During 2003-04 India's exports to Europe were US $ 15.56
billion and imports were US $ 18.53 billion. During the same year the bilateral
trade registered a growth of the 21 per cent.
European Union (EU) presently consists of 25 countries. Prior to 1 May
2004, 15 countries, viz., Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and
UK were members of EU. Ten more countries, viz., Cyprus, Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and

Commerce

145

Slovenia have joined the EU on 1 May 2004. Three countries, viz., Bulgaria,
Croatia and Romania would be joining the European Union in the year 2007.
European Union is India's !argest trading partner accounting for about
21 per cent of India's global trade. However, despite the fact that more than
US $ 14 billion exports of India are directed to EU, India's share in Ell's global
imports is around one per cent and India ranks 20th as Ell's trading partner.
The top five items of India's exports to Europe are cotton readymade garments
including accessories, gems and jewellery, cotton yam/fabrics, made-ups,
machinery and instruments and drugs/pharmaceuticals/fine chemicals. The
top five items of India's imports from Europe are pearls/precious/semiprecious stones, gold, machinery, electronic goods and organic chemicals.
India and the EU countries have healthy economic relations both
individually and collectively. These relations are built on the foundations of :
(i) India-EU Cooperation Agreement on Partnership and Development;
(ii) India-EC Joint Commission. India also has bilateral trade/economic
cooperation agreements with individual EU countries. These agreements/fora
provide a permanent platform for periodic review of bilateral economic and
commercial relations. Among the non-EU countries, India has similar agreements
with Bosnia Herzegovina, Bulgaria, Croatia and Romania.
INDIA-AFRICA TRADE
Commercial Relations : There are more than 50 countries in the Sub-Saharan
African region. Sub-Saharan Region accounted for 4.19 per cent (approx) of
India's total trade during 2002-03. India's share in global trade of Sub-Saharan
Africa has been low due to distance. language barriers and lack of information
on both sides about business opportunities. India's trade in the region is
largely with 10 countries, namely, South Africa, Nigeria, Mauritius, Ivory
Coast, Tanzania, Senegal, Kenya. Ethiopia, Benin, and Ghana.
In spite of various constraints, India's trade with the region has grown
rapidly. The total trade between India and Sub-5aharan Africa has grown from
US $ 4,273.61 million 2001-02 to US $ 5,335.38 million in 2002.,2003 ~
a growth of about 24.84 per cent. The trade with the region during AprilJanuary 2003-04 stood at US $ 4,65275 miUion as against US $ ~.41 miHion
over the same period in the pleVious year ~1i1\g a growth of 3.64 per
cent.

Exports : India's exports

to Sub-Saharan Aftica constitute a mere 4.69 per

cent (approx.) of the total ~l exports of Iadia during 2002-03. India's
exports to the region has increased by 13.45 per cent from US $ 2,161.03 million
in 2001-02 to US $ 2,451.77 million in 2002-03. f:nd:ian exports during AprilJanuary 2003-04 stood at US $ 2,337.41 million as against US $ 2,033.93 million
over the same period in the previous 'Yft!' ft!8istering a growth of 14.92 per
cent.

Imports : India's imports to Sub-Saharan Africa constitute a mere 4.71 per

cent (approx) of the total global imports of India. during 2002-03. India's
imports, from the region has increased by 36.50 per cent from US $ 2,112..58

146

India 2005

million in 20m-02 to US $ 2,88:1.61 million in 2002-03. Indian imports during

April-January 2003-04 stood at US $ 2,315.34 million as against US $ 2,455.48
million over tht' same period in thl' previous year registering a decline of
5.71 pl'r cent.
Major Items of Exports: (a) Cotton yam, fabrics, made ups., etc., (b) Drugs,
pharmaceuticals and fine chemicals (c) Manufilctures of Metals (d) Machinery
ilnd Instruments, (l') Man-mad(' Yarn, Fabrics, Madl'ups (f) Transport equipment
(g) Primary and Semi Finished Iron and Steel (h) RMG Cotton including
Accessories (i) Plastic and Linoleum Products, ilnd (j) Inorganic / Organic /
Agro-Chemicals.
Major Items of Imports: (a) Cold, (b) Coal, coke and briquettes, etc., (c)
Inorganic Chemicals, (d) Metalifer ores, metal scrap, (e) Pearls, Precious and
semi pn'ciolls stones, and (f) Fl'rtilizers, crudl', etc.
Bilateral Cooperation: Bilateral Trade Agreements are one of tht> tools to
promott' trade with countril's in Sub-Saharan Africa. Such Trade Agreeml'nts,
exist with 2,) countries in the fl'gion. A trade Agn'ement with Zambia was
sigm'd in April 2003.
foclls Africa Programme : The "Focus ; Africa" Programme was launched
on 11 March 2002 along with the announCl'ment of EXIM policy for the years
2002-07, with a view to enhance the trade with Sub-Saharan African Countries.
During the first year i.e., 2002-03 of the Focus Africa Programme emphasis
was laid only on sevpn targeted countries namely South Africa, Ghana,
Tanzania, Mauritius, Nigeria, Kenya and Ethiopia. From 1 April 2003 the
Focus Africa Programme has been extended to all the countries of Sub-Saharan
Africa where India has Missions as also to six countries of Northern Africa
Region. The total number of countries covered under the Focus Africa
Programme have increased from til(' initial seven to twenty-four.

SPECIAL ECONOMIC ZONES

A scheme for setting up Special Emnomic Zones (SEZs) in the country to
promote exports was announced by thl' Government in thl' Export and Import
Policy on 31 March 2000. The SEZs are to provide an internationally
competitive and hassle-free environment for exports and are expected to give
a further boost to the country's exports.
The Policy has provided proviSions for setting up SEZs in the public
joint sector or by State Governments. It was also announced that some
of the existing Export Procl'ssing Zones would be converted into Special
Economic Zones. Accordingly, the Government has issued notification for
conversion of all the existing Export Processing Zones (EPZs) into Special
Economic Zones. In addition the Government have also granted approval for
setting up of 25 Special Economic Zones in the private/joint sector/by the
State Governments at Positra, Mundra and Dahej (Gujarat), Navi Mumbai and
Kopta (Maharashtra), Nanguncri (Tamil Nadu), Kulpi, Salt Lake and Calcutta
s~~ctor,

Commerce

147

Leather Complex, (West Bengal), Paradeep and Gopalpur (Orissa), Bhadohi,

Kanpur, Moradabad and Greater Noida (U.P.), Kakinada and Visakhapatnam
(Andhm Pradesh), Indore (Madhya ['radl~sh), Sitapura and Jodhpur (Rajasthan),
VallJrpadam/f'uthvypl'l~n (Kerdla), Hassan .:md Baikampady (K.rrnataka) and
R<lIlchi (Jharkhand).
Some of the distinctive feah.Irl's of thl' scheme are: a designatl'd dutyto be trc,lted as foreign territory for trade operations and dutit'S
,1lld tariffs; SEZ units could be for manufdcturing/ sl'rvicl's; no routine
('X.l111indtion of export ,md import Cdfgo by clistoms; sale in domestic market
on full duty and import policy in forn'; SEZ units to be pOSitive nl't foreign
exchange earners in thn'l' years; no fixl'd wilstagl' norms; duty-free goods to
be utilised within tlw approval period of five years; performance of SEZ units
to he l1lonitort'd hv " COl1llllittt'l' mnsisting of till' Development Commissioner;
subnlJ1tracting (If P,lI't of production and production process allowed for all
sl'ctors, including jl'wellel'Y units; IO() per cent foreign direct illvestment
through <lutOITILltiC roult' in the rn,lI1ufactllring sector; 100 per cent Inconwl,l'l( exemption fnr five year~ ,lnd 50 pl'f cent flit' two years thereafter and 50
per cent of the ploughed b,ICk profit for tIlt' next thn'' years; external
commercial borrowing thJ'(lugh automatic route, etc
fn'('

l'nclaVt'

At present 711 units arc in operation in eight SEZs. Exports by SEZ units
during 2003-04 Wl'IV of the order of K<; 14,004 crore as compared to Rs 10,057
crore during 20Ol-(D.
EXPORT ORIENTED UNITS SCHEME
The Export Oriented Units (EOUs) scheme introduced in early 1981, is
('(Jll1plcnwntary to the SEZ srhl'me. It nftl'rs <l wide option in locations with
reference to factors like source of rclW IlItlteJ'ials, ports of export, hinterland
fclcilities, and availability of technologiccll skills, existence of an industrial base
and tht net.'d for a larger arl'a of bnd for the project. The EOUs have put
lip their own infrastructure. Exports by EOUs during 2002-03 were of till'
order of Rs 22,729 crore while exports during 2003-04 were estimated at
({s 27,012 crore.
MULTILATERAL TRADE ISSUES AND INITIATIVES
The World Trade Organisation (WTO) came into being ;,s a result of the
t'volution of the multilateral trading system since thl' establishment of GAn
in 1947. The protracted Uruguay Round negotiations spanning 1986-1994,
which resulted in the establishment of WTO, substantially extended tilt' reach
of multilateral rules and dL<;ciplines related to trade in goods, and introduccd
multilateral rules applicable to trade in Services as well as trade in knowledge
(Intellectual Property Rights). Uruguay Round negotiations also resulted in
a separate agreement on agricultural product:,. Besides, a phased programme
of integration of textile and clothing products into the GATT framework was
also agreed to. The rules prescribed by GATT and its associate agreemenb
were to be subscribed to by all the member countries of WTO as a 'Single
Undertaking'. WTO agreements were ratified by the Government after taking
into account the perceived balance of rights and obligations conferred by these
agreements.

India 2005

148

India is a founder member of both GAIT and WTO. (WTO provides

a rule based, transparent and predictable multilateral trading system, which
protects the member countries from the pressures of stronger trading partners.
WTO rules envisage non-discrimination in the form of National Treatment and
Most Favoured Nation (MFN) treatment to India's exports in the markets of
other WTO Members. National Treatment ensures that India's products once
imported into the territory of other WTO Members would not be discriminated
vis-a-vis the domestic products in those countries. MFN treatment principle
ensures that Members do not discriminate among various WTO Members not
only in their tariff regim~s but also in respect of various other rules,
regulations, incentives, etc. If a member country feels that the due benefits
are not accruing to it because of trade policies practiced by another trading
partner, it may file a dispute under the Dispute Settlement Mechanism (DSM)
of the WTO.

,..

@lere are also co-!!tjn_g~.,:,isio~ built into WTO rules, enabling

Member countries to take care of exigencies like balance of payment problems
and situations like surge in imports. In case of unfair trade practices causing
injury to the domestic producers, there are proviSions to impose AntiDumping or Countervailing duties as provided for in the Anti-Oum'ping
Agreement and the Subsidies and Countervailing Measures Agreement.)
(However, during the implementation of WTO Agreements --~rtain
imbalances and inequities have been found) Many of the Special and
Differential Treatment Clauses in favour of developing countries in various
WTO agreements have remained unoperationalised. India along with other
like-minded Members has highlighted these "implementation related concerns"
in WTO.

wro Membership : The present strength of WTO Membership is HZ. This

includes China and Nepal whose accession was approved by the WTO
Ministerial Conferences held in Doha and Cancan in November,2001 and
September 2Q03 respectively. There are presently 30 countries in thl' process
of accession to the WTO.
wro Ministerial CO'Jerences .~ 'The highest decision-making body of the
WTO is the Ministerii., Conference, which has to meet at .least every two yelU's.
The Ministerial Conference can take decisions on all matters under any of
the multilateral trade agreements., Since the coming into being of the WTO
in January 1995, five Ministerial Conferences have been held, namely,
Singapore (9-13 December 1996); Geneva (18-20 May 1998); Seattle (30
November - 3 December 1999); Doha (9-14 November 2001); and Cancun
(10-14 September 2003).
(The Singapore Ministerial Conference saw the interested Members of the
WTO 'negotiating an Information Technology Agreement and the launch of

work programme on the four so-called Singapore Issues, namely, Rel~!io~p

between Trade and Investment; Interaction betweeIl Trade and Co.m~ti~on
Policy; Transparency in Government Procurement; and Trade Faci:li.~tion. The

Commerce

149

Geneva Ministerial Conference was timed to coincide with the celebrations

of the 50 years of the GAIT multilateral trading systt~m. The Seattle Ministerial
Conference collapsed without being able to reach a consensus on the
Declaration to be adopted by the Ministers.
DOHA MINISTERlAl CONFERENCE
The Doha Ministerial Conference adopted a comprehensive Work Programme,
Called the Doha Development Agenda, launching negotiations on some issues
and setting out additional parameters and timeframes for the negotiations on
agriculture and services that had commenced on 1 January 2000 in accordance
with the mandates in the respective WTO Agreements. The Doha Ministerial
Conference also adopted a Declaration on TRIPS Agreement and Public Health
and a Decision on Implementation-related Issues and Concerns.
In the statement made at the Plenary Session of the Doha Ministerial
Conference, India attached the highest priority to the resolution of the
Implementation~related concerns relating to existing WTO Agreements and
further emphasised that the development dimension in the shape of Special
and Differential (S&D) treatment to developing countries be effectively
int('grated into the future work programme. India stressed that food security
and rural development concerns sh0l!ld be safeguarded in addition to phasing
out of market distorting subsidies.: In the Services negotiations that had
commenced from 1 January 2000, the importance of movement of natural
persons was emphasised. India also underlined the need for sufficient
flexibility and clarity in the Trade Related Aspects of the Intellectual Property
Rights (TRIPS) Agreement to enable the members, in particular the developing
countries, to implement their public health policies. Further, India reiterated
its position of the need for completion of the study on the four Singapore
issues by the respective Working Groups/WTO bodies before any negotiation
could be considered. India also opposed the inclusion of non-trade issues like
labour within the ambit of WTO and attempts to widen the environmental
window for legitimising trade restrictive measures.
The salient features of the Doha Ministerial Declarations and Decisions
are summarised as follows :
(i) TRIPS and Public Health (The MiIlisterial Declaration on the T~PS an.d
Public Health is one of the most significant outcomes of the Doha Ministerial
Coruerence. It -recogruses iliat the .TRIPS .A_greement can and.~houl(f-be
irrterpreted and Implemeniea-in-a' in~~;r s~p;rtiv; ~f
M;~bE!rs' right
to prcifecf P"ubHcHeahh and to p-romote access -to medkine~ for-all. It would
enabIeInfuta-have fleXibility in complilsory licensmgand-paraITer imports,
particularly, for diseases like HIV / AIDS, tuberculosis, malaria, and other
epidemics. The Declaration would enable more flexible interpretation of the
TRIPS Agreement in the Dispute Settlement Process of WTO in the context
of public health problems.)

mo

ISO

India 2005

(ii) Implementation Issues : Forty-thn'p implementation issues have been

,lddrcssed in the Decision on implel1H'ntation-rl'lated issues and concerns. The
Decisions which concern significant benefits to India include: (a) Longl'r time
I r,lIlW 01 six munths for compliance with new
and TBT measUlVS;
(b) Mur,ltori lIlll 01 two Yl'ars on nOll-violation complaints under the TRIPS
Agrl'l'llwnt; (e) Inv\'stigdting iluthoritil's tll examine with special Ciln' for
initj,1tioll III bolck-lo-b,1(k .mti-dumping investigation within 365 days;
(d) Members to oHn cooper,1liol1 and assistancl' including furnishing
inform.ltiotl ,1l>uul <'xporl \',du" when the customs administration of an
ill1plll'ting ML'tt1bl'r<., hdS n'dSlll1,lbll' grounds to doubt the truth or accurc1CY
of thl' dt'd,l!"l'd \',tlut'; (l') TIlt' issue of extension of the hight'f Il'Vel of
proteclilJn of gl'll~~r.tphic,d indicdlions provided for in Article 23 to products
(ltl1l'r th,1I1 winl'<" ,1I1d spirit... would be ilddrl'ssed by tht' TRIPS Council. as
part ot rl'drl'~sdl (II ttnf,ll'llwflt,ltion isslles; (f) Tht' issul' (If advilncil1~ of
growth Oil gr(lwth lit ljuot,1 levels for ll'xtill' products was actively pursued
at till' Minisl('ri,d Cnllft'rl'lKl'_ Illlwl'vcr, this WdS not ,1grt'ed to and is being
tXdlllilltd 11\' 1111' Cowh'il for Tr.1dl' in CooLis.

srs

It h,ld ais(l lwell oIgn'l'd th.lt rwgotiations on all the other outstanding
impll'l1ll'ntdtioll issues sh.!11 be an Il1tegrill part of the Work I'rogramn1l' of
tl1\' WTl) l'llIllclwd by tlk' Dohel Ministerial Conil'n't1n. For the first tinll',
thus, resolutillll 01 impll'tlll'llt,lti(ln-rt'lated conCl'rns 11,lS bel'n built into tht'
i'vlinistl'rt,11 DeciMation or tl1\' Work Programme.

(iii) Sped.11 and Differential Ire,ltrnent: Tlw nl'goti,ltiol1s sh,lll fully t.lkl' intll
,1CCllunt tIll' prlllciple ot spl'ci.ll ,1I1d diffcfl'ntial (S&D) trl'iltTlll'nt for developing
l'(llltltries_ It h,lS ,1IS(l bl'cn ,lgrl'('d th,lt ,111 S&D provisiolls in WTO Agreements
shelll be revil'wl'd with ,I view tIl strl'llgthl'ning them and making them mon
prl'CiSl" effectiv!' illld O},tl\ltioll,lI.
(iv) Agriculture : III Agriculture, the on-going negotiations would aim at
reduction of ,III forms of l'Xpllrt subsidies with tht' vit'w t(l phaSing out, ,1I1d
substantial red lIctiollS in tl".1(I(' distorting domestic support bt'ing givt.'n by the
dcvl'lopl'd countries. Sped'll ,md difftorel1tialtreatnll'nt for devl'loping countril.~
to dkctiVIly tdke into ,1Ccount of tlwir dl'velopment needs, including fnod
security ,md rllral dl'vl'lopnll'nt would become an integr,11 part of these
rll'gotidtion~. These Ilt'goti.ltions would n'sult in greater markd access for
agricultur,ll prouucts of dl'vl'loping countries Iikl' India, while allowing them
to rl'l.1in the necessary flexibility. The contents of thl' declaration significantly
go beyond tIll' I,111 gu agl.' of Article 20 of the Agn.:'t'lllcnt on Agriculture
m,mdating such Ilq~ntiations,
(v) Services : The negDtiations will be conducted on tilt' basis of Negotiating
Cuidt'lines and Procedurts (NGP) adopted in Milfl~h 2001. The NCr is largely
b.lsl'll Oil thl' propos'll of India and 23 other developing countries and
rt'cogllisl'~ ,1ppropridte f1l'xibility for dlvdoping countries and the primacy
of tht' reqm'st-oHer approach as the main method of negotiations. The
recognition of proposals on movement of natural pcrsons is welcome and a
distinct g<lin as it is .111 iSSllt.' of cort' interest to India.

('omml'rce

151

(vi) Negotiations on Market Access for Non-Agricultural Products :

Negotiations 011 market access, including tlw rl'duction or elimination of tariff
peaks, high tariffs and tariff escalation, in particular on products of export
interest to dewloping countries, taking fully into account thl?ir special 11l-'t'ds
and interests, would provide greater market access to lndia's products in thl'
developed countries.
(vii) Rules : It has been decided to initiate negotiations on Anti-Dumping
Subsidies Agreement for clarifying and improving the underlying
disciplines. Addressing outstanding implementation issues on these subjects
w(luld bl' an integral part of these negotiations. Strengthening the disciplines
would curtail the arbitrary use of anti-dumping measures and countervailing
duties for protlx'tionist purpoS(.'s beyond what is mandated by the respective
agreemcnts.
<llld

(viii) Dispute Settlement Understanding: Tht' Declaration also provides for

negotiations on improvements and clarification to thl' Dispute Settlement
Understanding. While it is expectl'd that the 'Sequencing' issues may form
tilt' main focus of such negotiations it is possible that it may see a widened
scope it members' bring othl'r proposills for consideration.
Ox) Trade and Environment: On Environment, it was dl'cided to initiate
Jwgpliations on tl1(' relationship between existing WTO rult's and MEAs,
limited in scopc' to the applicability of such existing WTO rules as among
parties to the MEA in question, procedurl' for information exchange between
MFA Secretariats and WTO and market access for environmental goods and
services. Thl' negotiations on market access for environnwntal goods and
sl'JTices would also be covered under market access negotiations for non,lgricultural products. Tht' WTO Committce on Tradt and Environment (CfE)
has been asked to pursue work on all itl'ms on its agenda, while giving
particular attention to the issues of dfect of l'nvironn1l'ntal measures on
11Iarh,t access, the relevant provisions of the TRIPS Agreement and labeling.
TIll' items of TRIPS Agreement and the effecl of environmental mt'aSUf($ on
m<lrket access were included for particular focus based on India's proposal.
eTE shall submit a report to the Fifth Millis{t:,rial Conference.

(x) Singapore Issues: The Singapore Issues of ; (il) Trade and Investnll'l1t,
(b) Trade and Compdilion, (c) Trade Facilitation, and (d) Transparency in
Covernment procurement will continue ttl be pursued in the study process.
It has bt't'n further agreed that negotiations on these subjects can be taken
up after the Fifth Ministerial Confef(~nct' only on the basis of a decision to
be taken by 'explicit consensus', at that Conference. While earli{,f such 'explicit
consensus' was a prerequisite for negotiation for two of the four Singapore
Issues, (Le., Investment and Competition), this prerequisite is now necessary
for the two other Singapore Issues as wl'11.
(xi) Labour: The Declaration recognises that lLO is the appropriate forum
to address the issue of core labour standards.
(xii) Work Programme: The Doha Ministerial Declaration mandates that the

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negotiations under the Work Programme shall be completed not later than
1 January 2005. The outcome of the negotiations shall be treated as parts of
a single undertaking. The negotiations shall be supervised by a Trade
Negotiations Committee, which shall appoint appropriate negotiating
mechanisms as necessary to supervise the progress of negotiations. Elements
of work programme not involving negotiations will be pursued under the
overall supervision of tht General Council. In respect of negotiations on
improvements and clarifications of the DSU, it was aimed that agreement in
this regard would be reached not later than May 2003. The Doha Ministerial
Declaration also mandated that the Fifth Session of the Ministerial Conference
will take stock of progress in the negotiations, provide any necessary political
guidance, and take decisions as necessary. Further, when the results of the
negotiations in all areas have been established, a Special Session of the
Ministerial Conference will be held to take decisions regarding the adoption
and implementation of those results.
In spite of the complexities of international negotiations, India managed
to protect its interests to a larger measure. The salient points in this regard
are : \(i) Able to keep out the issue of Core Labour Standards from the WTO
by getting a reiteration from the Ministers that this issue belonged to the ILo;.
(ii) Key interests in Agriculture, Services and Non-Agricultural Products
protected; (iii):,_ Was able to get the study process on the four Singapore issues
continued thereby deferring a decision on negotiations by two years) A
decision regarding 'modalities for negotiations on these four issues will require
a decision by the fifth Ministerial Conference on the basis of explicit con..-;ensus
of all Members; (iv) Bringing to the centre of WTO's work programme issues
of interest to India such as implementation issues, TRIPS and Transfer of
Technology; (v) Incorporation of strong safeguards in the mandate for
negotiations as well as the work programme relating to the area of environment;
(vi) Major gains in TRIPS and Public Health by getting a separate Declaration
adopted; and (vii) Finally, getting the developmental goals and priorities of
developing countries like India into the centre stage of the Work Programme.
CANCUN MINISTERIAL CONFERENCE
Even though development had been sought to be given the centre stage of

the Doha Work Programme, later events leading up to the Fifth Ministerial
Conference in Cancun showed that it was not to be.~ the Doha deadlines
on issues of critical importance to the developing countries, such as the TRIPS
and Public Health; Implementation issues; and Special and Differential
Treatment were missed. Even the implementation of paragraph 6 of the Doha
Ministerial Declaration on TRIPS and Public Health, an issue very critical to
the African countries to counter the HIV / AIDS menace, took such a long time
and the decision was taken on 30 August 2003 after unnecessary and
protracted negotiations: \
)

Prior to Cancun, the US and the EC made a joint submission on

modalities for negotiations on Agriculture that did not take into account the

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153

concerns of developing countries. (While not willing to agree to engage in

elinunation of trade-distorting export subsidies and domestic support, this
proposal sought steep tariff cuts by developing countries to gain increased
markets for the product., of th~ developed countries. This led to the birth of
a coalition of developing countries, now called the G-20, that played a very
major role at Cancun in shaping its deliberations
The Cancun Ministerial Conference was meant mainly to be a forum to
review the progress of negotiations under the Doha Work Programme
mandated at Doha and give guidance / directions wherever necessary with a
decision expected only on one outstanding issue, namely, the status of the
Singapore issues. The Conference also provided ample opportunity to test the
seriousness of developed countries with regard to the development dimension
of the Doha Work Programme. \}Iowever, the Cancun Ministerial Conferen<;:e
became complex in view of the serious differences in the ambition levels of
wro Members on the two most contentious issues, namely, Agriculture and
Singapore issues;

the imbalance in the revised draft text circulated by the Chairman of

the Conference on 13 September 2003 was loaded heavily against the interests
of developing countries and triggered strong opposition from the developing
countries and resulted in the failure to adopt Ministerial Declaration: The
Cancun Ministerial Conference adopted a short Ministerial Statement on 14
September 2003 that recognised that more work needed to be done in some
key areas to enable the Members to proceed towards the conclusion of the
negotiations in fulfillment of commitments taken at Doha. The Ministers
instructed the officials to continue working on outstanding issues with a
renewed sense of urgency and purpose and taking fully into account all the
views expressed in the Cancun Ministerial Conference. Further, the Ministers
asked the Chairman of the WTO, to coordinate this work and to convene a
meeting of the General Council at Senior Officials level no later than 15
December 2003 to take the action necessary at that stage to enable the wro
to move towards a successful and timely conclusion of the negotiations. The
Ministers reaffirmed their commitment to implement the Doha Declarations
and Dedsions fully and faithfully.
(One positive outcome at Cancun is the solidarity expressed by developing
countries for protecting their interests and their ability to stay together in spite
of pressures exerted by developed countries to break the coalitions?It should
be seen as a positive development since up till now, the trade majors had
decided among themselves on what the agenda should be and implanted such
decisions on the WID Membership. Anotht'r positive development was the
role of G-20 in effec;;tively placing the viewpoints of the world community
dependent on agriculture for livelihood, before the Cancun Ministerial
Meeting.
\

Post-cancun Developments: Even though the Cancun Ministerial Conference

failed, the WID Members continued consultations under the General Council

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India 2005

process in Gl'm'v,). As directed by the Ministers dt Cancun, the General

Coullcil met on 15-16 December 2003 dnd started efforts for reaching a
consensus on the various issut's. India and other Members strongly supported
the Ceneral Council Chairman in his efforts to rt'viVl' the process.
The C-20 played a very crucial role in the aftermath of the Cancun
Ministeri,)1 Conference. India and Brazil represented the G-20 Group in the
npgotiatinns, especially on agriculture, with the dt'vl'loped countries to reach
an undlrstanding as the failure to achieve progress in agriculture had a
tleg.ltive impact on the progress on other issues under negotiation. The group
of five c()untrics, commonly called Fiw Jnterpsted Parties (FlPs), comprising
of lI~qia and Brazil from the G-20 and Australia,-Uw Ee and tht, US from
the developed world htld rt'gular meetings to arrive at a consensus. India
actively participated in these meetings that were held at both official and
ministerial levels to ensure that its concerns especi<llly on food and livelihood
sl'curity and mral development wen' taken on board. India was successful
at the end with its concerns being taken on board while adopting thl'
Framework Agreement on 1 August 2004. Throughout the Geneva process,
India reiterated its stand on forward movement in implementation and special
and differential treatment issues for achieving tangible results in other areas.
The i.;('Illral Council Decision of 1 August 2004 has set a timeframe for
resolving these issUt's.
This Framework Agreement of I August 2004 sets out the guidelines for
further negotiations under the Doha Work Programme, encompassing key
areas of agriculture, non-agricultural market access, services and trade
facilitation, until the Sixth Ministerial Conference. The General Council has
decided to schedult' the Sixth Ministerial Conference to be held in Hong Kong,
China for December 2005.

PUBLIC SECTOR UNDERTAKINGS

MMTC
As India's largest international trading company, Minerals and Metals Trading
Corporation (MMTC), a Golden Super Star Trading House, is actively
involved in cultivating markets overseas for exporters and locate raw material
or product sources that meet the needs of importers. Core areas covered by
the company include minerals, metals, fertilizers and fertilizers raw materials,
precious metals, agro-products, coal and hydro-carbon and general trading.
During the year 2003-04 MMTC has achieved a turnover of Rs 9,178
crore, comprising of exports Rs 1,920 crore, imports Rs 6,761 crore and
domestic business of Rs 497 crore. This represents a growth of 49 per cent
in turnover, over corresponding period of last year. After recording a highest
over export turnover of Rs 2,336 crore during 2002-03, the export turnover
of Rs 1,920 crore achieved by the company during 2003-04 was the second
best export turnover achieved since its inception.

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15S

AUTONOMOUS BOUlES
Commodities Boards: There art' fiw statutory Commodity Boards under the
Dl'partment of Commerce namely, 'lea Board, Coffel' Board, Rubber Board,
Spices Board and Tobacco Board. These BOilrds arc rt'sponsibll' for production
and dcwlopment of tea, coffee, rubbl'r, spic('s and tobacco respectively.
Export Inspection Council : The Export Inspection Council, New Dplhi an
autonomous body, is responsible for the enforcement of quality control and
compulsory pre-shipment inspection of various exportable commodities covered
under the Export (Quality Control and Inspection) Act, 1963.
Indian Institute of Foreign Trade : The Indian Jnstitult, of POTt'ign Trade,
New Delhi registered under the Societies Rt'gistration Act, is ('ngaged in the
following activities : i) Training of personlll'l in modern techniques of
international tradt' : ii) Organisation of research in problems of foreign trade;
iii) Organisation of marketing research, area surveys, commodity surveys,
market surveys; and iv) Dissemination of information arising from its activities
relating to research and market studies.
Indian Institute of Packaging: The Indian Institute of Packaging, Mumbai,
is registered under the Societies Registration Act. The main aims of thl'
Institute are to undertake research of raw materials for the packaging industry,
to organise training programmes on packaging technology and to stimulatl'
consciousness of the need for good packaging, etc.
Marine Products Export Development Authority : The Marine Products
Export Development Authority, Cochin a statutory body, is responsible for
development of the marine products industry with special reference to
exports.
Agricultural and Processed Food Products Export Development Authority:

The Agricultural and Processed Food Products Export Development Authority,

New Delhi is also a statutory body which serves as the focal point for
agricultural exports, including the export of processed foods in value added
form.
EXPORT PROMOTION COUNCILS
There are, at present, ten Export Promotion Councils under the administrative
control of the Department of Commerce. These Councils are registered as nonprofit organisations under the Companies Act/Societies Registration Act. The
Export Promotion Councils perform both advisory and executive functions.
They are also the registering authorities under the Export and Import Policy,
1997-2002. These Councils have been assigned the role and functions under
the said Policy.
OTHER ORGANISATIONS
Federation of Indian Export Organisations : The Federation of Indian Export
Organisations (FIEO), New Delhi is an apex body of various export promotion

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organisations and institutions. It also functions as a primary servicing agency

to provide integrated assistance to Government recognised Export Houses/
Trading Houses and as a Central Co-ordinating Agency in respect of Export
Promotional efforts in the field of consultancy services in the country. The
FlEO organises seminars and arranges participation in various exhibitions in
India and abroad. The Federation continued to publish FLEO News during
the year for creating awareness amongst its member exporters and importers.

Indian Council of Arbitration: The Indian Council of Arbitration set-up

under the Societies Registration Act promotes arbitration as a means of
settling commercial disputes and popularises the concept of arbitration
among the traders, particularly those engaged in international trade. The
Council, a non-profit service organisation, is a grantee institution of the
Department of Commerce. The main objectives of the Council arc to promote
the knowledge and usc of arbitration and provide arbitration facilities for
amicable and quick settlement of commercial disputes with a view to
maintaining the smooth flow of trade, particularly, export trade on a sustained
and enduring basis.
Indian Diamond Institute : The Indian Diamond Institute (101), Surat is
registered under the Societies Registration Act. It was established in 1978 with
the objective of strengthening and improving the availability of trained
manpower for the gems and jewellery industry by conducting various
Diploma/Post Graduate Diploma level courses.

Communications

THE establishment of modern Postal System in India can be traced back to

the second half of 18th century. This ~tal system, established by Lord Cliv!
in the year 1766L_was further developed by Warren Hastings by establishing
Calcutta G.P.O. under a Postmaster General in the year 1774. In other
Presidencies of Madras and Bombay, there came into existence the General
Post Offices in the year 1786 and 1793 respectively. The Act of 1837 first
regulated the post office on a uniform basis to unite the post office
organisation throughout the three Presidencie!t' into one all-India Service. The
Post Office Act of 1854 reformed the entire fabric of the Postal system, and
the Post Office of India was placed on the present administrative footing on
1 October 1854. Besides providing postal communication facilities, the post
office network also provided fadlities for remittance of funds, banking and
insurance services from the latter half of the 19th century.

POSTAL NETWORK
At the time of independence there were 23,344 post offices throughout the
country. Of these 19,184 post offices were in the rural area and 4,160 in the
urban area. Today, the country has 1,55,837 post offices, of which, 1,39,280
are in rural areas and 16,557 in urban areas. As a result of this seven-fold
growth in the postal network, India has the lariest postal network in the
world.
Expansion of postal network to increase access to postal counter fadlities,
espedally ill rural areas, was effected through opening part-time Extra
Departmental Post Offices, a system unique to the Department of Posts. Under
this system. local residents are employed, subject to fulfillment of certain
criteria, to man the post office for a period not exceeding five hours a day,
and to deliver and convey mails for payment of certain allowances. On an
average, a post office serves an area of 21.09 sq km and a population of 6,602.
Post offices in rural areas are opened subject to satisfaction of norms regarding
population, income and distance stipulated by the Department. There is an
element of subsidy for the rural postal network. Subsidy is given to the extent
of 85 per cent of cost for operating post offices in hilly, desert and inaccessible
areas whereas in normal rural areas, it is limited to the extent of 66.7 per
cent of the cost.

The postal network consists of four categories of post offices, viz, Head
Post Offices, Sub-Post Offices, Extra Departmental Sub-Post Offices and Extra
Departmental Branch Post Offices. All categories of post Offices retail similar
postal services, while delivery function is restricted to some offices. In terms
of management control, accounts are consolidated progressively from Branch
Post Offices to Sub-Post Offices and finally in Head Post Offices. Therefore,

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lndii1 2005

thl' 848 Head Post Offices in the country serVl' as accounting hubs of the postal
network.
MAIL SYSTEM
First class mail, viz, post cards, inland letter cards and envelopes are
transported by air, wherever found advantageous, without any surcharge.
Second class mail, viz., book packets, registered newspapers and periodicals
are carried by surface transport, i.t,., through train and road transport.
The Department has handll'd approximately 909.40 crore pieces of mail
during the year 2002-03. Out of this, 782.77 crore constituted first class mail
which comprised household mail as well as official and business
corr('spondl'ncc. 5<_'cond class4ltmail was to the extent of 126.62 crore. The
volume' of unregistered mail handled during 2002-03 was 887.16 crore, of
which rural mail constituted 351.1] crure and urban mail 536.04 crore. The
registered mail handled during 2002-03 was 22.24 crorc.
Automatic Mail processing Centres : For efficient handling of mail in the
metros, the Department has set up two Automatic Mail Processing Centres
at Mumbai and Chennai. This has enabled processing of a large volume of
mail efficiently. Thl' Department has plans to set up more such centres.
Money Order : Money Order service was introduced in 1880. Under the
ordinary money order scheme, remittancl' of an amount up to Rs 5,000 can
be made through each money order. It also provides facility to send a message
to the addresSt't' along with thto> money transmitted. In 2002-03, 10.50 crore
Mom'y Orders were booked for a value of Rs 8,650 crore.
Money Order transmission through VSAT Network : As apart of
modernisation strategy, in 1994, the Department of Posts successfully introduced
Satellite based Money Order Service for speedy transmission of money orders
throughout the country. 150 high-speed Very Small Aperture Terminals
(VSAT<;) were established in major post offices during the Ninth Five Year
Plan which are in tum connected to more than 1,300 Extended Satellite Money
Order Stations (ESMOs), located in neighbouring Post Offices through
telephone network.
IMPROVING MAIL TRANSMISSION
With a view to ensuring a dedicated mail transmission system catering to
special customer needs, local mail is segregated from non-local mail. For the
pUrpOSl' of giving priority in transmission, non-local mail is further segmented
as household mail, official mail, corporate mail, patrika and periodical mail,
packets and parcels. First class, household and official mail are identified as
priority mail.
MECHANISATION AND MODERNISATION OF MAIL PROCESSING
Computerisation of Registration Sorting : As a part of the modernisation
programme, computerisation of registration sorting work in major mail offices

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159

was undertaken. A beginning in this regard was made during tht' financial
year 1995-96 by computerising registration sorting work at Delhi, Mumbai,
t Iyderabad and Chennai. Up to 3] March 2003 n'gistration sorting work in
(19 mail offices were computerised.
Computerisation of Transit Mail Offices : Another area identified for
computerisation is the Transit Mail Offices (TMOs). The TMOs have a vital
rok in the smooth handling and transmission of closed mailbags. Two TMOs,
lldmely, Delhi Airport TMO and Bombay Airport TMO were computerised
Juring the financial year 1996-97. 28 transit mail offices were computerised
till 31 March 2003.
Modernisation of Mail Offices : To improve the ergonomics and ambience
of Mail OffiCt's, these are being modernised with belter operational eguipment
and improwd furniture. The project was started during the financial year
1995-96, when 22 Mail Offices were modernised. By 31 March 2003, 274 mail
offices Wl're modernised.
Computerisation of Head Record Offices : As a part of the modernisation
programme, computerisation of the Head Record Offices (HROs) for proper
maintenalKl' of records and their prompt retrieval and efficient office
management, was undertaken. A beginning in its regard was made during
11,197-98 by computerising HRO Hyderabad Sorting Division. 32 Head Rl'cord
Offices were computerised up to 31 March 2003.
TECHNOLOGY INDUCTION
The dtwlopment in the field of communications and information technology
has given rise to the need for modernising postal services. The efforts of the
Department of Posts to modernise its services began in the early 1990s.
A road map for technology induction has been prepared with the aim
of computerising and networking major Post Offices, transmitting money
orders through high-speed/VSAT network, setting up more Automatic Mail
Processing Centres and implementing various e-governance policies of the
Government in the Tenth five Year Plan.
The Standing Committee on Technology, comprising representatives from
the Indian Institute of Technology, the National Informatics Centre, the
Department of Telecommunications and Department of Electronics, guides
and advises the Department of Posts in identifying appropriate technology
from time to time.

COMPUTERISATION OF POST OFFICES

Computerisation in the Department of Posts with PC based Multi-Purpose
Counter Machines (MPCMs) started on a pilot basis during the last year of
the Seventh Five Year Plan. By the end of the Ninth Five Year Plan, 506 Head
Post Offices and 1,266 other Departmental Sub Post Offices were computerised.
These machines are being used for public transactions across the counters

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providing full range of postal services like Registratio~ Money Orders,

Parcels, Speed Post, Postal Life Insurance and Savings Bank operations.
Computers are also deployed for back office functions like supervisory
functions, record management, and Management Information System (MIS).
The process of computerisation is being continued during the Tenth Five Year
Plan, and it is proposed to computerise and network the remaining 339 Head
Post Offices, 5,600 large Departmental Sub Post Offices along with all Circle
and Regional Administrative Offices, all Postal Accounts Offices and 205
Divisional Administrative Offices during the Tenth Five Year Plan.
e-Post and e-Bill Post: The Department introduced two Internet based valueadded services namely, e-Post and e-Bill Post. Through e-Post, electronic
messages are booked at any Post Office in the country and are downloaded
at an identified Post Office and delivered to the recipient(s) as hard copies
thereby connecting individuals who do not have access to the PC I Internet
and thus reducing the digital divide. e-Post also offers customers the
opportunity to send messages to multiple destinations from a single source.
e-post facility is currently available in 620 Head Post Offices in the country.
e-Bill Post is another service, which allows customers to pay their
(multiple) utility bills like telephone, mobile phone, electricity, water supply,
municipal taxes, etc., at one window through Post Office counters. This service
can be availed at any computerised post office in the country, which is located
in areas identified by the provider of utility services, keeping in view their
customer base.
BUSINESS DEVELOPMENT ACTIVITIES
A Business Development Directorate was set up in 1996 with the objective
of marketing and promoting premium services for meeting the needs of
specific customer segments. Some of the premium services offered by the
Department are given below :
Speed Post: Speed Post Service was introduced on 1 August 1986. Under
this service, letters, documents and parcels are delivered within a given time
frame failing which full refund of postage is given to the customer. The speed
post network comprises 150 National and 753 State Speed Post Centres. This
service is also available internationally to 97 countries.
.
Business Post : The Department launched Business Post with effect from
1 January 1997 in order to meet specific needs of bulk customers. It provides
value addition to all traditional services offered by the Post in the form of
collectio~ insertio~ addressing, sealing, franking, etc.
Express Parcel Post : The Express Parcel Post seeks to provide a reliable and
time bound parcel service through surface transport. It provides door-to-door
delivery and VPP service up to Rs 50,000 to cater to corporate users and
business establishments on contractual basis. Express Parcel Post can be
booked in 100 cities of the country where National Speed Post Centres
exist.

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161

Media Post : The Department offers a unique media to help the corporate
and government organisations reach potential customers through Media Post.
Under this facility, Customers can use the following for their branding
exercise, (a) Advertisement on post cards, inland letters, aerogram and other
postal stationery and (b) Space sponsorship options on letter boxes as well
as mail motor vehicles.
Retail Post : Through its vast network of more than 1.5 lakh post offices,
the Department offers the facility to collect all public utility bills and sale of
application form.<; for government and other private organisations.
Greetings Post: Greetings Post is a product introduced in September 2000.
The greeting card comes with an envelop upon which a postage stamp is
printed, which is a miniature replica of the design of the card as well as the
postage impression. This is specially beneficial to corporates who wish to
brand their products.
Speed Net : The Internet based track and trace service was launched on
J January 2002. Apart from prOviding tracking facility for Speed Post articles
to the customer, it also provides information to the management about the
quality of service, business performance, marketing, customer service, etc. It
is now operational from all 150 National Speed Post Centres.
PHILATELY
Special and commemorative postage stamps issued by the Department cover
a wide range of themes reflecting the rich natural and cultural heritage of
the country. Important national/international events, famous personalities,
institutions, etc., are honoured through the medium of commemorative
postage stamps. These stamps enjoy wide popularity in the world of philately.
During 2003, the Department issued 71 commemorative special postage
stamps.
INTERNATIONAL MAILS

India has been a member of the Universal Postal Union (UPU) since 1876
and of the Asian Pacific Postal Union (APPU) since 1964. These organisations
aim at extending, facilitating and improving postal relations among member
countries. India exchanges mail with more than 217 countries by air and
surface.
Money can be remitted from selected foreign countries to India by way
of Money Orders and Postal Orders. India has two-way Money Order service
with Bhutan and Nepal, wherein Money Orders can be sent to and received
from these countries. With the remaining 25 countries only inward service is
available wherein Money Orders booked in these countries can be paid in
India. British Postal Orders and Irish Postal Orders are encashable in India
at selected Post Offices.
International EMS which started in 1986 with five countries, is now
extended to 97 countries. With a view to facilitate export and import to and

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India 2005

from fort:ign destinations Principal Foreign Offices of Exchange were set up

at Mumbai, Kolkata, Chennai and New Delhi. In addition, six sub foreign post
offices are established at Ahmedabad, Bangalore, Jaipur, Cochin, Srinagar and
Noida. Export Extension Windows are also operative at Varanasi, Kanpur,
Surat, Ludhiana, Moradabad and Guwahati to cater to the needs of the
exporters / tourists in the areas.
Modernisation and computerisation of foreign mail operations are taken
up in the current Five Year Plan for improving the quality of service. The
department also introduced bar-coding for all international accountable
articles to improve quality and accountability.

FINANCIAL SERVICES
POST-OFFICE SAVINGS BANK
Post Office Savings Bank (POSB) has a customer base of 14 crore account
holders with annual deposits exceeding Rs 80,000 crore and a branch network
of over 1,55,000 branches, which is double the size of all the banks in the
country put together. There are seven financial products retailed from all post
offices across the country. These are Savings Account schemes, Recurring
Deposit schemes, TIme Deposit schemes, Monthly Income schemes, Public
Provident Fund schemes, Kisan Vikas Patras and National Savings Certificate.
On 31 March 2003, the outstanding balance under all National Savings
schemes in Post Offices stood at Rs 3,13,000 crore.
INTERNATIONAL MONEY TRANSFER SERVICE
This service, which is operated in association with a multi-national company,
Western Union Financial Services International, provides customers the facility
of receiving instantaneous remittances from more than 196 countries on real
time basis. The service is currently available in more than 4,500 Post Offices,
and has delivered remittances in excess of US $ 140 million from April 2001
to May 2004. The service has provided the common man who has no bank
account or access to Internet, a viable channel for receiving remittances from
their relatives and family members abroad.
DISTRIBUTION OF MUTUAL FUNDS AND SECURITIES
Since February 2001, a growing network of nearly 220 post offices is
distributing select Mutual Funds and Bonds(Principal/Prudential-IOO/SBI/
lOCI Capital/IDBI/RBI Bonds). The service, while extending the reach of the
capital market of the country also provides the common man easy access
to market based investment options.
ELECTRONIC FUND TRANSFER (Ern
Launched in April 2001, this service leverages the VSAT network of the
Department to facilitate end-to-end fund transfers by Banks (UTI/IDSI/
HDFC) on behalf of the corporate sector as well as the Capital Market. To
date, over Rs 1,400 crore have been transferred using EFI' service.

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163

WARRANT PAYMENT

This scheme launched in January 2002, has facilitated the redemption of over
73,000 dividend warrants of UTI and Citibank worth more than Rs 100 crore
through the postal network, establishing the ability of the Department to
undertake the service, which is critical for the Capital Market of the country.
The Post Office provides like no other institutions, a single-window facility
to issue and payout warrants across the country.
POSTAL LIFE INSURANCE

Postal Life Insurance (PU) was introduced in 1884 as a welfare measure for
postal employees. Over the years, it was extended to the employees of
Central/State Government, Public Sector Undertakings, Universities,
Government aided Institutes, Nationalised Banks, Financial Institutions and
Grameen Oak Sewaks of the Postal Department.
PU offers five Insurance Schemes, namely, (i) Suraksha (Whole Life
Assurance), (ii) Suvidha (Convertible Whole Life Assurance), (iii) Santosh
(Endowment Assurance), (iv) Sumangal (Anticipated Endowment Assurance),
and (v) Yugal Suraksha Goint Life Endowment Assurance for couple). As on
March 2003, total number of active policies was 20,98,577.
The Rural Postal Life Insurance (RPU) was introduced by the PU
organisation on 24 March 1995 to provide insurance cover at low premium
to the common man and to weaker sections of society in rural areas. It is
now allowed to continue on permanent basis. There are five types of plans
under RPU namely, : (i) Gram Suraksha (Whole Life Assurance), (ii) Gram
Suvidha (Convertible Whole Life Assurance), (iii) Gram Santosh (Endowment
Assurance), (iv) Gram Sumangal (Anticipated Endowment Assurance), and
(v) Gram Priya (10 year Anticipated Endowment Assurance).
On 31 March 2003, the total number of active policies was 17,95,070.
During the year 2003...()4, approximate business worth Rs 2,926 crore in respect
of 2,64,396 PLI policies and R.. 6,520.68 crare in respect of 11,25,099 RPLI
policies was secured.
HU~N

RESOURCE DEVELOPMENT

The Department has about 2.92 lakh departmental employees and about 3.09
lakh Gramin Dak Swales. Their training needs are met through a well
developed training infrastructure. At the apex is the Postal Staff College India
(PSCI), Ghaziabad which meets the training and developmental rleeds of
Indian Postal Service Officers and other Gazetted Officers. The Postal Training
Centres (PTCs) at Darbhanga, Madurai, Mysore, Saharanpur and Vadodara
impart induction, in-service and computer training to Postal operative and
Supervisory cadres. A new PTC was opened at Guwahati to look after the
training needs of the staff working in the North-East Region. In addition, 39
Workplace Computer Training Centres (WerC) are also functioning at the
Headquarters of Circles/Regions for imparting basic Computer skills. Efforts

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are also being madl' to set up 21 more wacs at the Circles/Regional

Headqudrters in the near future.
CUSTOMER CARE
Since 194H, thl' Department of Posts has a well-established system of redressal
of public grievances with 1,165 Computerised Customer Care Centres (CCCs)
at the District Headquarters/Divisional Headquarters. This network covers
all Head Post Offices in the country with thE' objective of providing easy and
speedy access to information and help required by the customer, apart from
redressal of grievances. Since 2003, the Department also introduced a webbased system for handling grievances, which facilitates customers to register
their complaints on line at its official web-site urww.indiapost.org. The
Department has started implementing its Citizen Charter in all major post
offices of the country.

TELECOMMUNICATIONS
The Telecommunication services were introduced in India soon after the
invention of telegraphy and telephone. The first Telegraph line between
Kolkata and Diamond Harbour was opened for traffic in 1851. By March 1884,
telegraph messages could be sent from Agra to Kolkata. By 1900, telegraph
and telephone started serving Indian Railways. As in the case of telegraph,
telephone service was also introduced in Kolkata in 1881-82, barely six years
after the invention of telephone. The first automatic exchange was commissioned
at Shimla in 1913-14 with a capacity of 700 lines.
The Telecommunication services in India have improved significantly
since independence. With the opening of Telecom sector to private investment
and establishment of an independent regulator, the matter of separation of
service provision functions of the Department of Telecommunications (DOT)
and providing a level playing field to various service providers including the
government service provider, has been achieved. On 1 October 2000, a Public
Sector Undertaking, viz., Bharat Sanchar Nigam Limited (BSNL), was formed
to take over all the service providing functions of the erstwhile Department
of Telecommunication Services (DTS).
Initially, the telephone exchanges were of manual type, which were
subsequently upgraded to Automatic Electro-Mechanical type. In the last oneand-a-half decade, a significant qualitative improvement was brought about
by inducting Digital Electronic Exchanges in the network on a very large scale.
The number of departmental exchanges which was 321 as on 31 March 1948,
has increased to 37,313 by May 2004. Today aU the telephone exchanges in
the country are of electronic type.
By the end of 2003-04, India was the tenth largest telecom network in
the world, measured in terms of number of phones. As on 31 May 2004, the
network comprises of 77.93 million telephone connections and over 1.79
miHion Public Call Offices (PCOs). There are over 27.17 million cellular
subscribers in the country and the cellular customer base is 2I'Owin2 at the

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rate of about one million per month. In the field of basic telecom service, there
were 31 private licences and two public sector licences at the end of March
2004. After tht' introduction of Unified Access Service Licence regime in
November 2003 27 licences out of thest 31 licenct's were converted to Unified
Access Service Licences. Eighteen more licences were issued for Unified
Access Service during the current financial year. Further, in the area of mobile
telephone, of the total 78 licences, 55 were in the private sector and 23 in
public sector. Of the total roll (lut of telephone connections (basic and cellular)
as on 31 May 2004, privatt.- sector accounted for about 41 per cent and public
sector accounted for 59 per cent.
Fully automatic International Subscriber Dialing (ISD) service is available
to almost all the countries. The total number of stations connected to National
Subscriber Dialing (NSD) as on 31 May 2004 is 31,686. In thl' field of
international communications, tremendous progress was made by the use of
satellite communication and submarine optical fibre links. The voice and nonvoice telecom services, which include data transmission, facsimile, mobile
radio, radio paging and leased line service, cater to a wide variety of needs
of both residential and business customers. Integrated Services Digital
Nf'twork (ISDN) facility is available in a number of cities. A dedicated Packet
Switched Public Data Network with international access for computer
communication services is also made available.
Communication Convergence Bill 2001: In pursuance of the New Telecom
Policy (NTP) - 1999, action was taken to prepare a new comprehensive statute
to replace the Indian Telegraph Act 1885 keeping in view the rapid
convergence of telecom, computers, television and electronics. Accordingly, the
Communication Convergence Bill, 2001 was introduced in the Lok Sabha on
31 August 2001. The Bill was referred to the Standing Committee on
Information Technology for examination. The Committee submitted its Report
on 20 November 2002.
Regulatory framework in the Telecom Sector: In early 1997, the Telecom
Regulatory Authority of India (TRAI) was established to regulate the
telecommunication services and for matters connected therewith or incidental
thereto. The establishment of the Regulator was considered necessary in the
context of Iiberalisation and private sector participation in the Telecom Sector
and to provide a level playing field for all operators.
By amendments made to the TRAI Act, the entire telecom regulatory
framework, including the disputes settlement mechanism were strengthened.
Besides bringing about clarity in the role and functions of the Regulator
(TRAI), certain additional functions were also entrusted to it. A separate
disputes settlement body known as the Telecom Disputes Settlement and
AppelJate Tribunal was also constituted for expeditious settlement of disputes.
Tariff Rebalancing Measures: In response to the policy changes in the Indian
Telecom Sector, the tariff structure has been altered substantially. The

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Telecommunication Tariff Order (ITO) 1999, issued by the Regulator (TRAJ)

had begun the process of tariff rationalisation with an increase in monthly
rental and decreasing SID and ISD tariffs. This rebalancing exercise was
implemented by ITO 1999 in thn'e steps, regaining with the first phase in
May 1999 and the third from 14 March 2002. This resulted in a reduction of
NLD and ISO tariffs considerably. In the area of cellular telephony also, the
tariff rates have decreased substantially and the regime of Calling Party Pays
(CPP) is already in practice. TRAI is continuously engaged in tariff review
exercising for rationalising the tariff structure which is expected to result in
further tariff rebalancing. The new initiatives taken by TRAI in the telecom
sector to achieve the set of objectives include issuances of orders on
interconnection usage charges, monitoring the quality of services of all service
providers, conducting an objective survey on Quality Of Service (QOS)
parameters of basic and cellular service in different circles through an
independent agency, finalisation of the System of Accounting Separation (SAS)
and deregulation of tariffs for cellular mobile services under certain conditions.
Grameen Sanchar Sewak (GSS) Scheme: It is a pilot scheme launched on
24 December 2002 by the Prime Minister through Grameen Oak Sewak
Delivery Agents (GOSDA) of the Department of Posts (DOP), attached to the
rural post offices, who are willing to work as franchisee for BSNL on the
existing SID/ISD/PCO franchisee basis. In this scheme, GDSDA volunteers
are called Grameen Sanchar Sewaks (GSS), who carry a mobile fixed wireless
terminal (FWf) with display unit in a carry bag and visit door to door to
provide telephone facility to the rural population in his routine beat in the
villages. The FWT is supplied by the BSNL and the scheme has been
implemented throughout the country except in Andaman and Nicobar,
Haryana and Punjab telecom circles. As on 31 March 2004, 10,786 villages
are being covered by 2,544 GSSs.
USF and Disbursement of Funds: In order to enhance the teledensity in rural
and remote areas, guidelines for implementing Universal Service Obligation
(USa) were issued, effective from 1 April 2002. Administrator for
implementation of usa was appointed on 1 June 2002. To meet the investment
requirement, initially a five per cent Universal Levy is imposed on the
Adjusted Gross Revenue on all telecom operators excluding the pure value
added service providers. The usa Fund (USOF) was established as a separate
non-lapsable fund through a Bill passed by the Parliament in December 2003.
A sum of Rs 300 crore and Rs 200 crore was allotted to USOF for the year
2002-03 and 2003-04 respectively, which was utilised for extending the
Universal Service subsidy for more than five lakh Village Public Telephones
(VPTs), uneconomic rural DELs and replacement of 1.8 lakh MARR based
VPTs to improve the quality of service.
BASIC SERVICES

Based on the recommendations of Telecom Regulatory Authority of India

(TRAl), the Government announced guidelines on 25 January 2001 for issue
of licences, with unrestricted open entry, to new Basic Service Operators in

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all the Service areas including the six service areas where private licencees
already existed. The country is divided into 21 territorial service areas for the
grant of Basic Service licence. The minimum paid-up capital and promoters'
combined net worth for each service area are to be in accordance with
prescribed norms. The Licence fee, which is in the form of revenue share, is
8 per cent/ID per cent/12 per cent of the annual gross revenue, depending
on the service area. The Spectrum charges are two per cent of revenue earned
from wireless access system. The roll out obligations are linked to establishment
of Points of Presence in a Short Distance Charging Area (specified geographic
region). The Basic Service Operators are permitted to carry their own long
distance traffic within their service area. 31 licences are issued in addition
to two public sector undertakings.
Introduction of Unified Licencing Regime: Con..<;equent to the acceptance
of recommendations of TRAI by the government on 31 October 2003, an
addendum to the NTP-1999 was issued by the Department of
Telecommunications including the Unified Licence for telecommunication
services and licence for Unified Access (Basic and Cellular) service. While the
former enabled the licencee to provide all telecommunication/ telegraph
services covering various geographical areas using any technology, the latter
permitted licencee to provide basic and / or cellular services using any
technology in a defined service area. After the issue of guidelines for Unified
Access Service, 27 of the 31 basic service licences were converted to Unified
Access Service Licence. Also, 18 new licences were issued for Unified Access
Service this year.
NATIONAL LONG DISTANCE SERVICE
National Long Distance (NLD) service was opened to the private sector from
13 August 2000. Indian registered companies haVing a net worth of Rs 2,500
crore and paid up equity of Rs 250 crare are eligible to apply. The total foreign
eqUity in the applicant company must not exceed 49 per cent at any time
during the entire licence period. Investment in the equity of the applicant
company by an NRI / OCB / International funding agencies is counted towards
its foreign equity. The entry fee of Rs 100 crare is to be submitted before
signing the licence agreement along with four bank guarantees of Rs 100 crore
each. There is no restriction on number of operators. An NLD operator can
carry inter-cirde traffic in the country. The licence for NLDO is issued on nonexclusive basis, for a period of 20 years and is extendable by 10 years at one
time. In addition to Bharat Sanchar Nigam Limited (BSNL), three other
companies signed licence agreement for National Long Distance service. The
competition resulted in lowering of tariff.
INTERNATIONAL LONG DISTANCE SERVICE
The International Long Distance (ILD) service is basically a network carriage
service, providing international connectivity to the network operated by
foreign carriers. In accordance with the New Telecom Policy 1999, the
Government opened the International Long Distance Service from 1 April 2002

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to the private operator~. There is no restriction on tht, number of operators.

The Indian registered companies having a net worth of R.. 2S (.Tore are eligible
to apply. The total foreign equity in the applicant company must not exceed
49 per c~nt at any timl' during the entire licence period. Investment in the
equity of tht' applicant company by an NRI / OCB / International funding
agencies is countcd towards its foreign equity. The entry fee of Rs 25 crore
is to be submitted bdore signing licence agreement along with bank
guarantees of Rs 25 crore. The licence is valid for 20 years from the date of
licence dgrt."t.'ment. In addition to Vidcsh Sanchar Nigam Limited (VSNL), four
other companies signed licence agreement for International Long Distance
service.
INFRASTRUCTURE PROVIDER CATEGORY - II (lP-II)
An W-ll licencee is permitted to lease / rent out / sell end-to-end bandwidth,
i.e., digital transmission capacity capable of carrying a message. This was
opened to private sector from 13 August 2000. The total foreign equity in the
applicant company is limited to 74 per cent. The applicant company is
required to pay Rs 10,000 as processing fee along with the application. There
is no entry {('C. However, a performance bank guarantee of Rs Five crore is
required to be submitted before signing the agreement. The licence is valid
for 20 years from tht' date of licence agreement. Six companies have so far
signed licence agreement for Infrastructure Provider Category-II.
INFRASTRUCTURE PROVIDER CATEGORY-I (lP-1)
The applicant company for IP-I requires registration only with DoT. Companies
registered as IP-] can providp assets such as dark fibre, right of way, duct
spacl' and tower. All Indian registered companies are eligible to apply. There
is no restriction on foreign equity and number of entrants. There is no entry
fee and bank guarantee. The applicant company is required to pay Rs 5,000
as processing fee along with the application. So far 75 companies have been
registered as Infrastructure Provider Category-I.
CELLULAR SERVICES
The country is divided into 19 Telecom Circles Service areas and four Metro
Service areas for the Cellular Mobile Telephone Service. There are three private
operators and one state-owned operator in each service area. At present there
are over 27 million cellular subscribers and are growing at the rate of over
one million per month. The Licence fee, which is in the form of revenue share,
is 8 per cent/l0 per cent/12 per cent of the adjusted gross revenue, depending
on the area of their operation.
Introduction of IUC Regime: In January 2003, TRAI notified the
Interconnection Usage Charges Regulation, 2003 which covered arrangements
among service providers for payment of interconnection usage charges,
covering Basic Services including WLL(M), Cellular Mobile Services, NLD and
ILD Services. This regulation provided for charges payable by one operator
to another for origination, transit and termination of calls in a multi-operator

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169

environment. During 2003-04, based on several representations received from

telecom service providers and stakeholders with respect to the ruc Regime
as well as tariff under the new regime, TRAI carried out an extensive review
of the ruc Regulation and issued the Telecommunication Interconnection
Usage Charges Regulation on 29 October 2003. The new IUC Regime came
into force from 1 February 2004. The main features of the new rue Regime
are lower total amount of Access Deficit Charges (ADC), uniform termination
charges of Rs 0.30 per minute irrespective of terminating network, reduction
of ADC on NLD and ILD calls, all of which resulted into lower-tariff
environment on voice telephony.
UNIFIED MESSAGING SERVICE
New policy for Voice Mail / Audiotex Service, in terms of NTP-l999, was
annowlced in July 2001 by incorporating a new service, namely, Unified
Messaging Service (UMS). UMS is a system by which voice mails, fax and
e-mails (all three) can be received from one mail box using telephone
instrument, fax machine, mobile phones, internet browsers etc. Presently, six
companies have 13 licences to provide these services in eight cities.
POLICY FOR PUBLIC MOBILE RADIO TRUNK SERVICE
Policy for Public Mobile Radio Trunk Service (PMRTS) in terms of NTP-1999
was announced on 1 November 200]. The new PMRTS licences are being
granted in digital technology only. PSTN connectivity is also pt'rmitted to
PMRTS service. Presently 15 companies are granted 42 licences to provide
these services in 25 cities.
GLOBAL MOBILE PERSONAL COMMUNICATION BY SATELLITE
Policy for grant of licence for Global Mobile Personal Communication by
Satellite (GMPCS) service in terms of NTP-l999 was announced on 2
November 2001. Detailed Information about these services is available on the
websites of the department.
INTERNET SERVICES
Internet Services are opened for private participation since November 1998.
The licence fee was waived off up to 31 October 2003 and from 1 November
2003 it is only Re one per annum. Any Indian Registered Company is eligible
for getting the licence and no prior experience is required. Foreign equity up
to 100 per cent is permitted for Internet Services Providers (ISPs) without
gateways and upto 74 per cent is permitted for Internet Services Providers
(ISPs) with gateways. There are about 42 lakh Internet subscribers. As on
31 March 2004, 385 ISP licences were issued out of which 121 have been
pennitted to offer Internet Telephony service. Internet exchanges are set up
at STPI, NOIDA, Mumbai and Chennai to ensure switching of Internet traffic
within the country. One more exchange at Kolkata is expected to be
operational soon.

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India 2005

OTHER SERVICE PROVIDERS

Services like Tele-education, Tele-medicine, Tele-banking, Call Centre, etc, as

defined in NTP-1999, are covered under Other Service Providers (OSPs). Only
registration is required for specific service. There is no licence fee. Call
Centres/Business Process Outsourcing (BPOs) are permitted Internet and
IPLC connectivity on the same Local Area Network (LAN). Interconnectivity
of call centres of the same group of companies is also permitted for
redundancy and load balancing.
So far over 700 registrations are issued under the OSP category.
Total direct and indirect employment provided by Call Centres/BPOs is over
1.5 lakh. Major multinational companies like Microsoft, Oracle, IBM, GE, etc.,
have opened their Call Centres/BPOs in India. Revenue in this sector is
increast'd from Rs 2,400 crore in 1999-2000 to Rs 11,700 crore in 2002-03. The
annual growth rate of this scctor is over 67 per cent.
TRAINING INFRASTRUCTURE

In order to upgrade the skills, knowledge and managerial effectiveness of the

Telecom personnel, BSNL has a set up of vast network of 45 training centres.
Starting at the apex level are, Advanced Level Telecom Training Centre
(Al,TIC) at Ghaziabad, Bharat Ratna Bhim Rao Ambedkar Institute of Telecom
Training (BRBRAITT) at Jabalpur and National Academy of Telecom Finance
and Management (NATFM) at Hyderabad followed by 42 Telecom Training
Centres at Regional, Circle and District levels for imparting training to the
personnel in technical, managerial, building science and finance branches of
Telecom services.
Advanced Level Telecom Training Centre, Ghaziabad was established by
the Government in 1975 with the assistance of United Nations Development
Programme (UNDP) and International Telecommunications Union (ITU). The
centre develops and imparts training in high-tech telecommunications and
modem management practices for the base, middle and top level engineers
and managers of the government and countries of South East Asia and ESCAP
region including English speaking countries of Far East, Middle East and
Africa. It functions as resource centre in providing developed course materials,
audio-visual instructional aids, computer-based training, software support
and training of trainers. Over 5,000 officers are trained annually in the centre
induding trainees from foreign countries.
TELECOM ENGINEERING CENTRE

The Telecommunication Engineering Centre (TEC) is an institution of

Department of Telecommunications with headquarters at New Delhi. It has
five regional centres at New Delhi, Kolkata, Mumbai, Bangalore and Hyderabad
and two sub-centres at Chennai and Pune. Its role and objectives are:
(i) Standardisation, Framing of Generic Requirements (GRs) and Interface
Requirements (IRs) for telecom products, equipment, systems, services and
networks; (ii) Technology forecast and assessment; (iii) Evaluation of new

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products, equipment and systems; (iv) Technical support to the Telecom

Commission; (v) Preparation of National network plans; and (vi) Technical
and engineering support to the public sector organisations, viz., BSNL and
MTNL.
CENTRE FOR DEVELOPMENT OF TELEMATICS

The Centre for Development of Telematics (C-DOT), an autonomous registered

society was set up in 1984 with the objective of developing a new generation
of switching systems relevant to the Indian conditions. Its sphere of operations
was widened in 1989 when it was entrusted with the development of
transmission systems. The C-OOT has developed a range of cost-effective
products with the built-in qualities of upgradability. The C-DOT is today
recognised as a pioneer in the field of rural telecommunications.
A wide range of products developed and technology transferred to many
indigenous manufacturers parallely, who supplied 25 million telephone lines
to the field constituting 87 per cent of the exchanges of varying capacities
and about 50 per cent of the total fixed lines in the Indian network. These
switches range from 256 lines to 40,000 line capacity.
For urban and semi-urban use, a family of Digital SWitching System
(DSS) from 1,500 line to 40,000 lines is developed, named as C-DOT DSS MAX
(Main Automatic Exchange). The C-DOT DSS MAX products have the proven
ability to serve as local, toll, transit and Integrated Local-cum-Transit (LeT)
switches. These exchanges can currently handle traffic of 8,00,000 call attempts
in an hour. In the area of transmission, C-DOT has developed low capacity
digital-radio technologies for inter-connecting rural and urban exchanges;
satellite systems for integrated voice and data communications, digital
multiplexes and optical communication systems. Other major technologies
developed and the products delivered include: (i) Setting up of Intelligent
Network-operational in over 200 sites offering popular services like Virtual
Card Calling; (ii) Network Management System (NMS) - capable of working
with all the technologies; being deployed in about 40 cities to enhance the
call success rate and decongestion of the route; (iii) New technology switches
requiring lesser power and space offering higher termination capacity; and
(iv) Access network systems, e.g., digital loop carrier, Asynchronous Transfer
Mode (AIM), etc.
The technologies deployed in the field are being supported during their
entire life cycles by removing obsolescence, adding new hardware and
software retrofits to provide continuously new features and services to
increase the utility and relevance of these systems in the competitive and fast
changing telccom environment. Besides, C-DOT supports more than 70
manufacturers for the various products and more than 650 vendors, who in
turn, support these manufacturers by way of components and subsystems.
Significantly, C-OOT products have proliferated throughout the country with
about 2.5 crore C-OOT exchange lines manufactured and supplied. C-DOT
products are exported to various countries.

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India 2005

WIRELESS PLANNING AND COORDINATION WING

Wireless Planning and Coordination Wing (WPC), established in 1952, is the
national radio regulatory authority responsible for coordination and regulation
of radio spectrum usages in tht country. It is a nodal agency for all matters
concerning International Telecommunications Union (ITU), a specialised
agency of the United Nations for all telecommunication matters and Asia
Pacific Telecommunity (APT), an inter-governmental organisation of the
f('gion. WPC assisted by its Monitoring Organisation performs all functions
rplating to planning, coordination, assignment, regulations and administration
of the uses of the radio frequencies in India, clears site for installation of
wireless stations and issues licences for establishment, maintenance and
working of wireless stations in India, etc., under the Indian Telegraph Act,
1885. It is responsiblt for all matters concerning assignment of frequencies
for all terrestrial, Geo-stationary Satellitt> Orbit (GSO) and Non-GSO based
satellite networks, induding positions in GSO and necessary coordination in
this regard both at national and international levels. It also conducts
examinations to award certificate of proficiency for aeronautical and maritime
mobile services and for radio amateurs. The decision of Government to make
available basic as well as value added services by the private service
providers, increasl' of broadcast coverage as well as Information Technology
Sector with the liberalisation of economy has resulted in a very large demand
on the radio spectrum and orbit resources.
FDI IN TELECOM SECTOR
The total Foreign Direct Investment (FDI) received in the telecom sector from
August 1CJ91 up to January 2004 is Rs 9,872.5 crore. The FDI approved in
telecom sector during this period is Rs 57,260.14 crore which is second highest
next only to Power and Fuel sectors.

PUBLIC SECTOR UNDERTAKINGS

BHARAT SAN CHAR NIGAM LIMITED
Bharat Sanchar Nigam Limited (BSNL) was incorporated on 15 September 2000.
It took over the business of providing telecom services of erstwhile Department
of Telecom Services, and Department of Telecom. Operations of the Ministry
of Communications (Department of Telecommunications), on an on-going
concern basis on a provisionally assessed value of Rs 63,000 crare from
1 October 2000. The authorised capital of BSNL is Rs 17,500 crore and prudup capital is Rs 12,500 crore comprising Rs 5,000 crore of equity and Rs 7,500
crore of preference capital. The entire issued and paid-up capital is held by
the government.
\ jJ./X) BSNL is man~ated to provide entire range of telecom services _~~pt
, 1ntefna...,!iQrl~UQ1)..g .,:i1~tance service and having physical jurisdiction of whole
cm:iiltry except De_~-=~'f::g~Eaf:-With a work force of approximately
3.6 lakh, BSNL is"one of the largest psll~ in the country and is contributing
Significantly to the national objective -as enshrined in New Telecom Policy

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173

(NTP)-1999 for achieving telephone density of seven by March 200S and 15

BY-=-=Marai201O. Out of about s~_L'Lkh villages in the country, mort' than five
la~h have already been provided -with telephone facilitate by B~;NL.--<

~~.

BSNl's countrywide Cellular Service under brand of 'Cell One' was

launched on 19 October 2002 at Lucknow, followed by major citieS-of each
state. Within a short-span 'of about two year, it achieved subscriber base of
about 5.3 million and covered more than 1,642 cities across the country as
on 31 March 2004. The service also comprises of prepaid services with brand
name ~l' and includes host of value added services based on SMS, unified
messaging-platform and wireless application protocol ~W:':1'):. ._.".,..
BSNL is also deploying WLL elWipment in very large scale in its network
throughout the country and had achieved a subscriber base of about 9.6 lakh
as on 31 March 2004. The company also provides internet telephony'ServTCes
under the brand name of 'WEBPHONE' besides host of other services such
as In~e1Jigent network, b:oaa-b~~e~-~~~ess, internet services, etc.
MAHANAGAR TELEPHONE NIGAM LIMITED

The Mahanagar Telephone Nigam Limited (MTNL) came into existence on

1 April 1986 .as a company wholly-owned by the Government under the
Deparl!!l~!)1 of Telecommunications, Ministry of Communications. MfNl is
entrusted with the management, control and operations of telecom services
(excluding public telegraph service) in metropolitan limits of Mumbai (including
Kalyan, New Mumbai and Thane) and Delhi.
The last decade and a half has been an eventful period in the existence
of MTNL. There has been all-round development and growth and improved
operational efficiency. MTNL provides a host of telecom s7I"ices like. fixed
telephpne service, GSM based Mobile Service, CDMA based Q:Vireless~!!!.!-Cal
LoopJnternet and Leased Line services. The network of MTN[ is fully digital .
.~~ has 335 telephone exchanges in Delhi and 184 in Mumbai as on
31 May 2004. The total switching capacity is 6.62 million and MTNL is
operating 4.81 million direct exchange lines including cellular lines. MTNL
is also providing a total of 43,269 leased lines circuits and 21,177 ISDN
connections as on 31 March 2004.
MfNL started GSM based cellular mobile telephone service in February
2001 both in Delhi and Mumbai under the brand name 'DOLPHIN'.
Introduction of this service resulted in the decrease of tariffs by'the -private
operators by almost 50 per cent.~MTNL Jallnrhed--CDMA based limited
mobility service in both the cities during the year 2001-02 with the brand name
~J IDA'. In addition to the telephone service, MTNL is providing a variety
of IN based and Phone Plus Services. These include - premium rate service,
pre-paid service, virtual private network, universal number, televoting, etc.,
which are based on the intelligent network platform and phone plus services
~~ch ~.~m.p~t~ris.e..4m.~!:"!n_g_!l!~~ v~i~.~m,,!il, call forwarding, call waiting,
etc. Payments of bills by subscribers tlirough Internet, through Master Card
at selected petrol pumps and through automatic teller machines have also

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174

been introduced. MTNL has also launched various CRM services such as
automatic rent rebate, change number announcement service, customer service
management system, etc. i, MTN~ was listed on New York._S!~c~ange
(NYSE) durirlS tilt' year2OQI-02. IMTNL wast,he ~inth Indian Com_any-iiiO
. Second ITIdian PSU to be listed" on NYSE. 'As a Navratna -Company, it has
Joint Venture in Mis United Telecom Limited (lJ11.) with TCIL, VSNL for
providing CDMA service in Nepal. The authorised equity share capital of the
company is Rs 8OQ.crore, the paid-up capital is Rs 630 crore. The Government
now owns about ~.:~5 per cent of the MTNL paid up capital.
VIDESH SANCHAR NIGAM LIMITED
Videsh Sanchar Nigam Limited (VSNL) is privatised from 13 February 2002
with 25 per cent of Government equity being bought by Mis Panatone Finvest
Limited (lATA). The management control of VSNL is also passed over to
Mis Panatone Finvest Limited. Government still holds 26.12 per cent equity
in VSNL.
....
INDIAN TELEPHONE INDUSTRIES
The Indian Telephone Industries (m) Limited, Bangalore was set up in 1948.
ITI has contributed more than 70 per cent of the existing telecom network
in the country. The company offers the entire range of telecom equipments
covering the whole spectrum of switching (large and rural switching),
transmission (digital, microwave fibre optic and back bone products), access
products I subscribers premises equipment. ITI offers the latest telecom solutions
and customised support to a variety of business by virtue of its strong inhouse R&D, select collaborations and strategic alliances with global leaders.
The company has consolidated its diversification into IT and IT-enabled
services by employing its vast telecom expertise and infrastructure.
TELECOMMUNICATIONS CONSULTANTS INDIA LIMITED
Telecommunications Consultants India Limited (TCIL) set up in 1978 is now
a 'multi disciplinary telecom organisation' which provides complete telecom
solutions from concept to completion. The core competence of the company
is in network projects, software support, switching and transmission system.
cellular services, rural telecommunications, optical fibre based backbone
network, etc. The company is likely to~~!..jnto__b~JlJc ~!yi~ irl ~nya where
it has formed a joint venture company. The company has also fonneaa joint
venture in Nepal for operations of WLL communication there.

_-

TCIL h(\s widespread operations in various regions I countries of Middle

East, South East Asia, Africa, Europe and Central Asia. Starting with an equity
of Rs 10 lakh in 1978, the company through issue of bonus shares has equity
of Rs 14.40 crore as on date. The company achieved a turnover of Rs 590.45
crore during the year 2002-03 with a net worth of Rs 387.42 crore.

9 Defence
INDIA'S defence policy aims at promoting and sustaining durable peace in
the sub-continent and equipping the defence forces adequately to safeguard
from any aggression.
The Supreme command of the Armed Forces vests in the President of
India. The responsibility for national defence, however, rests with the Cabinet.
The Defence Minister (Raksha Mantri) is responsible to Parliament for all
matters concerning defence of the country. Administrative and operational
control of the armed forces is exercised by the Ministry of Defence and the
three Service Headquarters.
ORGANISATION
The principal task of the Ministry of Defence is to obtain policy directions
of the Government on aU defence and security related matters and communicate
them for implementation to the Service Headquarters, Inter-Service
Organisations, Production Establishments and Research and Development
Organisations. It is also required to ensure effective implementation of the
Government's policy directions and the execution of approved programmes
within the allocated resources.
The Ministry of Defence consists of follOWing four Departments:
Department of Defence: The Department of Defence deals with Integrated
Defence Staff and the three Services and various Inter-Service Organisations.
It is also responsible for the Defence Budget, establishment matters, defence
policy, matters relating to Parliament, defence cooperation with foreign
countries and coordination of all activities. (ii) Department of Defence
Production : The Department of Defence Production deals with matters
pertaining to defence production, indigenisation of imported stores, equipment
and spares, planning and control of departmental production units of the
Ordnance Factory Board and Defence Public Sector Undertakings.
(iii) Department of Defence Research and Development: The Department
of Defence Research and Development deals with scientific aspects of military
equipment and logistics and the formulation of research, design and
development plans for equipment used by the Services. (iv) Department of
Ex-Servicemen Welfare: The Department of Ex-Servicemen Welfare, recently
created, is asSigned the responsibility of matters relating to Ex-Servicemen
including pensioners, Ex-Servicemen Contributory Health Scheme, Directorate
General of Resettlement and Kendriya Sainik Board and administration of
Pension Regulations relating to the three Services.
(i)

The Integrated Headquarters of the Ministry of Defence, viz, the Army

Headquarters, the Naval Headquarters and the Air Headquarters function
under the Chief of the Army Staff (COAS), Chief of the Naval Staff (CNS)
and the Chief of the Air Staff (CAS) respectively.

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REFORMS IN MANAGEMENT OF DEFENCE

Based on the recommendations of the Kargil Review Committee, the
Government decided to carry out a compiehenSlve- reView of tne-National
Security System in its entirety and the following structures have been
established which have since started functioning: (i) Integrated Defence Staff;
(ii) Defence Acquisition Council; (iii) Defence Intelligence Agency; (iv)
Strategic Forces Command; (v) Andaman and Nicobar Command. This is the
first tri-Service Command in the country.
Integrated Defence Staff: With a view to ensure higher degree of jointness
amongst the Services and attempt inter-service and intra-service prioritisation,
the Government has set-up the Integrated Defence Staff, headed by Chief of
Integrated Defence Staff functioning under Chiefs of Staff Committee (COSC).
The role of casc is to supervise the Integrated Defence Staff, to chair all
multi-Service bodies and the Defence Crisis Management Group (DCMG).
Chiefs of Staff Committee is also responsible for the coordination of long-term
plans, five-year plans and annual budgetary proposals of the three Services
in consultation and coordination with the Integrated Services Headquarters.
The Chief of Integrated DefenCt' Staff to Chairman, Chiefs of Staff Committee
(ClSC) renders advice to the Government on prioritisation, on developing
force lewIs through restructuring proposals, undertakes net assessment of the
national capability, formulates joint doctrines, conceptualises policy and
programmes on joint planning and military education, renders adviCt' for
evolving responses to non-conventional and conventional threats to national
security. ClSC also proposes measures for jointness amongst the Armed Forces
with a view to enhance efficiency and effectiveness.
Defence Acquisition Council: The Government has also set-up Defence
Acquisition Council headed by the Raksha Mantri for decision making in
regard to the totality of new planning process, which inter alia involves
according 'in principle' approval of capital acquisitions in the long-term
perspective plan and according 'in principle' approval for each capital
acquisition programme. The decisions flowing from the Defence Acquisition
Council are to be implemented by the following three Boards: (i) Defence
Procurement Board headed by the Defence Secretary; (ii) Defence Production
Board headed by the Secretary (Defence Production); and (iii) Defence
Research and Development Board headed by Secretary (Defence Research
and Development). These Boards have been entrusted with specific functions.
A Defence Acquisition Wing headed by Secretary (Acquisition) has also been
created to assist the Defence Procurement Board in its functioning.
Defence Intelligence Agency: The Government has set-up the Defence
Intelligence Agency (OIA) to coordinate and synergise the intelligence Wings
of the Services. The DIA is responsible for providing integrated intelligence
inputs to the higher echelons of Defence Management.
Strategic Forces Command: The Strategic Forces Command (SFC), created
to manage our strategic assets, has worked towards establishment of an

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177

effective Command and Control Structure. The Command is working towards

operationalisation of the strategic assets of the country, based on the directions
given by the Nuclear Command Authority.
Andaman and Nicobar Command: The tri-5t'rvice Command for Andaman
and Nicobar (A&N) was established in October 2001. Thl' Commander-inChief of A&N Command exercises control over all force components of the
three Services and the Coast Guard located in Andaman and Nicobar islands.
Further, the three Service Headquarters, which were used to be attached
offices of Ministry of Defence are now integrated with the Ministry and known
as Integrated Headquarters of the Ministry of Defence.

ARMY
The Army is headed by the Chief of the Army Staff. He is assisted by tht'
Vice-Chief of the Army Staff and seven other Principal Staff Officers, namely,
the two Deputy Chiefs of the Army Staff, Adjutant Generat Quarter-Master
General, Master General of Ordnance, Military Secretary and Engineer-inChief.
The Army is organised into operational Commands. Each Command is
under a General Officer Commanding-in-Chief who holds the rank of
Lieutenant General. The major field formations are Corps, Division and
Brigade commanded by a General Officer Commanding of the rank of
Lieutenant Generat a General Officer Commanding of the rank of Major
General and Brigadier, respectively. The static formations are Area, Independent
Sub-Area and Sub-Areas. An Area is commanded by a General Officer
Commanding of the rank of Major General and an Independent Sub-Area and
Sub-Area by a Brigadier.
The Army consists of a number of arms and services. These are
Armoured Corps, Regiment of Artillery, Corps of Air Defence Artillery, Army
Aviation Corps, Corps of Engineers, Corps of Signals, Mechanised Infantry,
Infantry, Army Service Corps, Military Nursing Service, Army Medical Corps,
Army Dental Corps, Army Ordnance Corps, Corps of Electrical and Mechanical
Engineers, Remount and Veterinary Corps, Military Farms Service, Army
Education Corps, Intelligence Corps, Corps of Military Police, Judge Advocate
General Department, Army Physical Training Corps, Pioneer Corps, Army
Postal Service, Territorial Army and Defence Security Corps. In addition, the
Army has its own Recruiting Organisation, Record Offices, Depots, Boys
Establishments and Selection Centres and Training institutions.

NAVY

Si~ the major sea routes of the world. It has a coastline 0!l,512... ...
km with a total of 1,197 island territories in the Bay of Bengal and the Arabian

India

Sea. India has an Exclusive Economic Zone (EEZ) of 2.01 million sq. km. 90
per cent by volume ~~~.cent-of..totalc~.af India's trade C!Ul?U from
the seas. The resource rich EEZ provides 68 per cent of its oil production and

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India 2005

fish production of 2.82 million tonnes. In addition, the entire import of oil
and gas comes by the sea. India's economy and therefore its development
is crucially dependent on the sea on account of the critical role of maritime
trade as well as oil and gas, fisheries and other mineral resources. The
responsibility for the defence and security of these maritime interests and
assets devolves upon the Indian Navy.
The Navy is headed by the Chief of the Naval Staff. He is assisted by
four Principal Staff Officers, namely, Vice-Chief of Naval Staff, Deputy Chief
of Naval Staff, Chief of Personnel and Chief of Material.
The Navy has thn.>e Commands, i.e., Western, Eastern and Southern with
their headquarters at Mumbai, Visakhapatnam and Kochi respectively. Each
Command is headed by a Flag Officer Commanding - in - Chief of the rank
of Vice-Admiral. The Western and the Eastern Commands are the operational
Commands, while the Southern Command is responsible for training. Indian
Navy has two fleets, the Western and the Eastern Fleet comprising ships and
aircraft, these fleets operate under the Western and the Eastern Commands
respectively. Goa and Arkonnam are the major Naval air bases. In addition,
Indian Navy also has air bases at Visakhapatnam, Port Blair and Car Nicobar
(Adaman and Nicobar Islands). The major naval bases are located in the three
Command Headquarters and other minor naval establishments are in Chennai,
Kolkata, Chilka, Lonavala and Jamnagar.
Indian Navy is a three-dimensional force consisting of sophisticated
missile capable warships and aircraft. The Indian Naval inventory includes
submarines aircraft carrier, guided missile destroyers, frigates and corvettes.
The Indian shipbuilding industry is very advanced and many of the warships
are indigenously designed and built. These indigenously built warships with
state-of-the-art equipment are of comparable capability with those constructed
by the advanced countries. Modem dockyard facilities of the Navy and the
PSU shipyards maintain and support the naval forces.

COAST GUARD
With the adoption of the provisions of United Nations Third Conference on
the Laws of the Seas, a need was felt to create peacetime Marine Force to
regulate maritime laws and safeguard national interests in India's Exclusive
Economic Zones of the surrounding seas. For this purpose the Indian Coast
Guard was created on 1 February 1977. The Coast Guard's broad Charter of
Duties includes: (a) safety and protection of off-shore installations and
artificial islands; (b) providing protection to fishermen in distress; (c) protection
of maritime environment; (d) assisting Customs in anti-smuggling operation;
(e) enforcement of Maritime Zones of India (MZI) Act; (f) safety of life and
property at sea; and (g) prevention and Control of Marine Pollution.
The Director General Coast Guard under the Ministry of Defence
exercises the general superintendence, direction and control of the Coast
Guard.

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179

The entire coastline of India and the national maritime zones have been
divided into three Coast Guard regions, namely, Western, Eastern and
Andaman and Nicobar Islands. The Regional Headquarters are located at
Mumbai, Chennai and Port Blair. The Coast Guard Regions are divided into
eleven Coast Guard Districts based in maritime states. In addition, there are
Coast Guard Station and Air Enclaves at various locations.

AIR FORCE
The Indian Air Force is today a modem, technology-intensive force equipped
with a wide array of_.!llQ.9~m_ aircraft .and suWrt.~QYipment. weapon
systems, communiCations and detection systems which gives it formidable
offensive and defensive capabilities. Since its formation on_8_.Qt2~r..1.932,
the Indian Air Force has co~e a long way from its modest beginning to
become a pre-eminent Air Force in the region and a formidable bulwark of
na~.l!al defence. The teeth of the Air Force are its air-superiority fighters,
multi-role combat and strike / air defence / reconnaissance aircraft. The Indian
Air Force believes in deterrence during peace and force projection during war.
In addition to peacetime training for traditional wartime roles, the Indian Air
Force also provides significant aid to civil authorities during natural calamities
_- - - ' -~
. ~_' - _.'
and internal disturbances.
The Chief of Air Staff at Air H':.adquarte!s i~ New Delhi is assisted by
the Vice-Chief of Air Staff, responsible for operations while the Deputy Chief
of Air Staff is responsible for acquisition and planning. The Director General
(Inspection and Safety) looks after assessment of operational readiness,
inspection and flight safety. Air Officer-in-Charge Maintenance is responsible
for the maintenance of the large inventory of aircraft and equipment. The Air
Officer-in-Charge Administration'looks after all administrative aspects of the
Air Force excepting matters connected with personnel administration. The Air
Officer-in-charge Personnel assists the Chief of Air Staff on all aspects of
personnel administration, including training.
The Indian Air Force has five regional and two functional commands.
The operational commands are the Western Air Command with its headquarters
in Delhi, the South Western Air Command with its headquarters in Gandhinagar,
the Central Air Command with headquarters at Allahabad. The Eastern Air
Command has its headquarters at Shillong and the Southern Air Command
has its headquarters in Thiruvananthapuram. The functional Commands are
the Training Command with its headquarters at Bangalore and the Maintenance
Command with its headquarters at Nagpur.
.
Recruitment and training of the personnel of Indian Air Force is broad
based and Specialised. The Service has opened its doors to induction of women
officers in all its branches including flying branch.
The IAF has served India with courage and effectiveness in peace time
and war. It forms the core of national defence and hence contributes towards
the stability and security of the region.

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180

COMMISSIONED RANKS
The following are the commissioned ranks in the three Services; each rank
is shown opposite its equivalent in the other Service:

Army

Navy

Air Force

Gel1l'rai

Admiral

Air Chief Marshal

Lieutenant General

Vice-Admiral

Air Marshal

Major

Rear Admiral

Air Vice-Marshal

Brigadier

Commodore

Air Commodore

Colonel

Captain

Group Captain

Lieutenant Colonel

Commander

Wing Commander

Major

Lieutenant Commander

Squadron Leader

Captain

Lieutenant

Flight Lieutenant

Lieutenant

Sub-Lieutenant

Flying Officer

G~ll'rai

RECRUITMENT
The Armed Forces epitomise the ideals of service, sacrifice, patriotism and
India's composite culture. The recruitment to the Armed Forces is voluntary
and every citizen of India, irrespective of his caste, class, religion and
community is eligible for recruitment into the Armed Forces provided he
meets the laid down physical, medical and educational criteria. Recruitment
into the Army is carried out according to Recruitable .Male Population (RMP)
of each state.
INDUCTION OF WOMEN
Eligible women are recruited as officers on Short Service Commission basis
in the following branches of the Armed Forces: ARMY: EME Corps, Signals
Corps, Education Corps, Ordnance Corps, Service Corps, Military Intelligence
Corps and Judge Advocate General's Branch. NAVY: Engineering (Naval
Architects), Logistics, Law, Education, Air Traffic Control. AIR FORCE :
Flying, Aeronautical Engineering (Electronics), Aeronautical Engineering
(Mechanical), Education, Administration, LOgistics, Accounts and Meteorology.
RECRUITMENT OF COMMISSIONED OFFICERS
Recruitment of Commissioned Officers in the Armed Forces is mainly done
through the Union Public Service Commission (UPSC). Recruitment is made
directly through the respective Recruiting Directorates for the Army, the Navy
and the Air Force for Technical Branches, Women Special Entry Scheme, Nee
Special Entry Scheme and service entries.

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The UPSC holds an all-India competitive examination, known as the

Combined Defence Services Examination (CDSE)' twice a year. University
graduates including those studying in the final-year, are eligible to appear
in the examination. Successful candidates are put through the Services
Selection Board (SSB) intervil'ws. Finally selected candidates join the respective
training academies, viz., the Indian Military Academy (IMA) for the Army,
the Naval Academy for the Navy and the Air Force Academy for the Air Force.
The UPSC also holds an examination for entry into the National Defence
Academy (NDA) twice a year. Candidates on completion of the 10+2
examination or while in the 12th standard, are eligible to compete in this
examination. Successful candidates on completion of their NDA course are
sent to the respective Service academies for their pre-commission training.
Recruitment through Services Selection Board / Air Force Selection
Board is made for the following branches of the Army, Navy and Air Force
: ARMY: All Arms and Services except Army Medical Corps and Army Dental
Corps; NAVY: Electrical Engineering, Engim.-ering (Naval Architects), Logistics,
Law, Education, Air Traffic Control, Executive, Hydro, Naval Armament
Inspection; AIR FORCE: Flying Pilot, Aeronautical Engineering (Electronics),
Aeronautical Engineering (Mechanical), Education, Administration, Logistics,
Accounts and Meteorology.
Final/pre-final year students in the notified engineering disciplines are
eligible to apply for commission into the Technical Arms/ Services of the
Army under the University Entry Scheme. Finally selected candidates are
required to undergo one-year training at IMA, Dehradun, before being
Commissioned.
Engineering graduates from notified disciplines of Engineering including
those studying in the final-year are eligible to apply for Short Service
Commission into Technical Arms/ Services through Short Service Commission
(Technical) Entry. Selected candidates are commissioned after ll-months
training at Officer Training Academy (OTA), Chennai.
Medical graduates from the Armed Forces Medical College, Pune are
directly inducted as permanent Commissioned Medical Officers in the Armed
Forces. For recruitment of Regular Commissioned /Short Service Commissioned
Medical Officers from the Graduates/ Post-Graduates of Civil Medical
CoUeges, the Director General of the Armed Forces Medical Services conducts
an all-India competitive examination.
University graduates possessing NCC 'e Certificate with minimum 'B'
grade and 50 per cent marks in graduation are eligible to apply for
commission into the Navy and Air Force as Regular Commissioned Officers
and as Short Service Commissioned Officers in the Army. These graduates
are exempted from appearing in the CDSE conducted by the UPSC and a.re
selected through the SSBs.
The Government has approved the creation of a 6,000 strong Support
Cadre of Special Commissioned Officers to be filled-up by eligible JCOs and

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India 2005

ORs. Under this entry, serving JCOs/NCOs/ORs in the age-group of 30-35

years, with an Army Senior School Certificate Pass (Class XI CBSE Pattern)
or any other recognised Technical or Non-1echnical examination/ certificate/
diploma of one-year or more duration passed from school! Board/ Institution
rt.>cognised by Government of India after doing matric or equivalent
qualification, will be eligible for commission after screening/ selection through
Service Selection Board and a Medical Board. They will retire at the age of
57 years after serving about 20-25 years as officers. The scheme will not only
improve the career prospects of the existing JCOs/NCOs/ORs but will also
help in making up the deficiency of officers in the Army to a considerable
extent.
Qualified 10+2 CBSEI State Board candidates with PhYSiCS, ChemiStry
and Maths are eligible for commission in the Army under the Technical Entry
Scheme (10+2 TES). On selection, they undergo one-year basic training at IMA
Dehradun and thereafter undergo three-years Engineering degree course. On
being commissioned they are further put through one-year specialised
training. Though technical entrants, they are liable for commissioning into any
Arm/Service of the Army.
RECRUITMENT TO OTHER RANKS
Recruitmtmt to the Army is carried out according to the Recruitable Male
Population (RMP) of each State. The RMP of a state is reckoned to be 10 per
cent of the male population of that State.
Under the revised system introduced with effect from 1 April 1998,
recmitment of jawans in the Army is carried out through open recruitment
rallies planned well in advance, keeping in view the geographical,
demographical and topographical considerations. Advance publicity is made
of an ensuing rally in a particular area / district.
There are approximately 184 trades for Persons Below Officer Rank
(PBOR) in the Army grouped into 'X', 'Y' 'Z' category. The educational
qualification is non-matric for 'Z' group trades, matric and 10+2 standard for
'Y' group trades and Diploma / 12th / Graduation for 'X' group trades. In
addition, dispensation in educational qualification for enrolment to Soldier
General Duty (matric entry) is given to certain select regions/ classes/
communities due to lack of education facilities and socio-economic factol"i.
Recruitment of Airmen in the Air Force is done through a centralised
selection system on all-India basis. Unmarried male Indian citizens irrespective
of caste, creed and religion and domicile (subject of Nepal) are eligible for
recruitment to the Indian Air Force provided they meet the laid down
physical, age and educational criteria.
Recruitment of Sailors in the Navy is carried out by Naval Recruitment
Organisation of the Directorate of Manpower Planning and Recruitment at
Naval Headquarters for the following entries: (a) Direct entry artifirers with
three years diploma (DEDH), (b) Artificer Apprentices (AA) - (10+2), (c)

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183

Matric Entry Recruits (MER), (d) Non-Matric Entry Recruits (NMER), (e)
Direct Entry Petty Officers (outstanding sportsmen). Recruitment into the
Navy is carried out on all-India basis.

TERRITORIAL ARMY
The Territorial Army is a voluntary, part-time citizen's Army. The c.onceptual
framework for the Territorial Army is based on the fundamental idea that
it should exist for war-time employment, and should be maintainable at the
lowest cost during peace time. The concept encompasses the employment of
disciplined, dedicated and a low-cost force of gainfully employed citizens
from all walks of life to supplement and augment the resources of the regular
Army. These citizens on joining the Territorial Army undergo a short period
of rigorous training, which makes them reasonably competent soldiers.
Subsequently, they join their units for two months every year for refresher
training, to keep in touch with the art of soldiering.
Infantry Battalions (TA) have been embodied for operational services
since the raising of the force. They participated in 1962, 1965 and 1971 conflicts
and remained embodied continuously for long durations. In recent times, a
maximum of 22 units were embodied in 'Operation Rakshak' and 'Operation
Vijay'. In Operation Parakram, all 31 Infantry Battalions (TA) were embodied
and continue to be embodied to date since December 2001 for ongoing
Counter Insurgency I Counter Terrorism (CI/Cf) Operations. Infantry Battalions
(TA) have also been embodied for counter insurgency operations in North-East
and Jammu and Kashmir.
Units of the Territorial Army have participated in all wars alongside the
regular Army. They have been utilised to maintain essential services like
railways, oil supply and medical (departmental units) during emergencies.
Some units have been organised for national development tasks in fields like
ecology and afforestation and they have rendered commendable services.
NATIONAL CADET CORPS
The National Cadet Corps (NCC) estab~~!t_~~_~~ 15 July 1948 has emerg_ed
as the sii\gie largest structured you,ili ITl_9Y.e.!1le.!l_t 10_Ind!!. It has a sanctioned
strength of 13 lakh boys and girls in the Senior and Junior Divisions in the
Army, Navy and Air Force Wings.
The Directorate General, NCC New Delhi controls and oversees various
activities of the NCC through 16 NCC Directorates spread across the c~ntry.
There is a Central Advisory Committee for the NCC to provide overall policy
guidelines. The NCC is manned by the service personnel, whole-time lady
officers, teachers I professors and civilians. One lecturer I teacher in each
educational institution is appointed as Associate NCC officer.
The NCC whose motto is 'Unity and Discipline' has the following aims:
(a) to develop character, comradeship, discipline, leadership, secular outlook,
spirit of adventure and the ideals of selfless service amongst the youth of the
country; (b) to create a human resource of organised, trained and motivated

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India 2005

youth to provide leadership in all walks of life and always available for the
servict.' of the nation; (c) to provide a suitable environment to motivate the
youth to takl' up a career in the Armed Forces.

TRAINING INSTITUTIONS
ARMY WAR COLLEGE
It is premier All Arms Tactical Training Institution for officers and performs
important functions of evaluation of concepts and doctrines in the fields of
tactics and operational logistics. The institution was earlier known as College
of Combat, Mhow and has been re-designated as 'Army War College, Mhow'
from 1 January 2003.

INFANTRY SCHOOL
The Infantry School, Mhow is the largest and the oldest military training centre
of the Indian Army. The institution is responsible to develop the complete
spectrum of tactical drills and concepts pertaining to infantry operating in
varied terrain and environment and introduce them from time to time. This
premier institution also trains the National Shooting Team under the aegis
of Army Marksmanship Unit (AMU) which is part of Infantry School.
JUNIOR LEADERS WING
The Junior Leaders Wing, Bclgaum is part of Infantry School, Mhow and trains
junior officers and junior leaders in sub-unit level in tactical and special
mission techniques to enable them to carry out assigned operational missions
in varied terrain conditions under severe stress and strain.
COLLEGE OF DEFENCE MANAGEMENT
The Institute of Defence Management (10M), Secunderabad was established
in June ]970 to impart modem, scientific management training to the Armed
Forces Officers. The IDM was renamed as College of Defence Management
(COM) in 1980. The College has trained over 5,000 officers of the rank of Major
to Major General and equivalents of the three Services through its on-campus
programmes. It has also given exposure in defence management to a large
number of officers through external capsules. Officers from Para-Military
Forces, Ministry of Defence, Research and Development Organisations and
friendly foreign countries also attend various on-campus programmes.
DEFENCE SERVICES STAFF COLLEGE
The Defence Services Staff College (DSSC), Wellington is a premier tri-service
training establishment imparting training to middle level officers (Majors and
equivalent) of the three wings of Indian Armed Forces, friendly foreign
countries and Indian civil sel'llices.
NATIONAL DEFENCE ACADEMY
The National Defence Academy (NDA), Khadakwasla is a premier InterService training institution where future officers of Armed Forces are trained.

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185

The training involves an exacting schedule of three years before the cadets
join their respective Service Academics, viz., Indian Military Academy, Naval
Academy and Air Force Academy.
INDIAN MILITARY ACADEMY
The Indian Military Academy (IMA), Dehradun transforms young men into
wurageous, dynamic and erudite young officers of integrity, who are to bear
the brunt of battle, or hardship whilst guarding the Nation's frontiers. The
1M A established in 1932, caters training to cadets for c;ommission into the
Army.
OFFICERS TRAINING ACADEMY
The Officers Training Academy (OTA), Chenoai moulds young men and
women into courageous, dynamiC and honourable officers of the Indian Army.
The training at the OTA aims at inculcating in the Gentlemen and the Lady
cadets (GCs/LCs) moral values, leadership traits, mental and physical
prowess, a spirit of adventure and a will to win.
High Altitude Warfare School: The High Altitude Warfare School (HAWS),
Gulmarg is a unigue training establishment imparting specialised Mountain
Warfare and Winter Warfare Training to Indian Army personnel.
Armoured Corps Centre and School : The Armoured Corps Centre and
School (ACCS), Ahmednagar is a premier institution of the Army. It imparts
training pertaining to employment of mechanical forces in battle and
development of concepts for future battle.
School of Artillery : School of Artillery, Deniali is a premier institution of
the Army and imparts effective traini:1g, evaluation of new equipment for
induction and development of new concepts/ doctrine for application of
artil1ery fire.
Army Air Defence College: The Army Air Defence College (AADC),
Gopalpur imparts training for provision of effective Air Defence Artil1ery
protection to ground forces against long and medium altitude enemy air
attacks and also to preserve specified tactical and strategic vital areas and
pivotal points from critical danger and destruction from enemy air attacks.
College of Military Engineering: The role of College of Military Engineering
(CME), Pune encompasses three aspe~s, Le., training, advisory. projects
research and experimentation.
Military College of Telecommunication Engineering : The Military' College
of Telecommunication Engineering (MerE), Mhow is a premiere training
institute of the Corps of Signals. A variety of courses catering for the training
needs in Information Technology and Communication for the Indian Army
are conducted at MerE. A number of courses are attended by students from
friendly foreign countries and Para-Military Forces also.
Counter Insurgency and Jungle Warfare (CIJW) School : Popularly known

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India 2005

as CIJW School, Vairengte (Mizoram), this premier institution imparts training

as per its motto 'Fight the Gureilla like a Gureilla'. The institution has risen
to be nodal agency for imparting counter insurgency training.
Junior Leader's Academy <ILA), Bareilly and Ramgarh: The Junior Leader's
Academy (JLA), Bareilly and Ramgarh conduct institutionalised leadership
training for Junior Leaders comprising of Junior Commissioned Officers and
Non-Commissioned Officers of the Army.
Army Supply Corps (ASc) Centre and College : The ASC Centre and
College, Bangalore imparts training to Officers, personnel below officer rank
of Army Service Corps and other arms and services indicating personnel from
foreign countries in various disciplines of Suppliers, Fuel, Oil and Lubricants,
Mechanical Transport, Animal Transport and Air dispatch. The Centre also
trains recruits for induction into service into Army Service Corps.
Army Medical Corps (AMC) Centre and School : The AMC Centre and
School, Lucknow conducts from basic to advance courses for Army Medical
Corps and Military Nursing Service Officers. The Centre also trains recruits
for induction into service into Army Medical Corps.
College of Materials Management (CMM), Jabalpur : The College of
Materials Management (CMM), Jabalpur is the hub centre of all logistics
courses for Army. It runs courses like advance material management, higher
mention course and quarter master courses for officers, JCOs and NCOs. It
also imparts basic training to store keepers technical.
Military College of Electronic and Mechanical Engineering : The Military
College of Electronics and Mechanical Engineering (MCEME), 5ecunderabad
(Andhra Pradesh) is a premier institution of technical education in the Army.
The College was awarded 150-9001 for excellence in training and also won
the coveted Golden Peacock National Training Award-1997 as well as Golden
Peacock National Quality Award.
Remount and Veterinary Corps (RVC) Centre and School : The RVC Centre
and School, Meerut Cantt, imparts basic military and technical training to
young veterinary graduates on commission and to various technical tradesmen
of the corps like Dressors, Riders, Ferriers, Army Dog trainers and lab
attendants. The Centre also trains recruits for induction into service into
Remount and Veterinary Corps Centre and School.
Army Education Corps (AEC) Training College and Centre : The AEC
Training College and Centre, Pachmarhi is a Category 'X establishment, a
Regimental Training Centre for AEC personnel and an Autonomous College
affiliated to Barkatullah University, Bhopal.
Corps of Military Police (CMP) Centre and School: The CMP Centre and
School, Bangalore imparts basic military training to all personnel enrolled in
Corps of Military Police and also conduct courses for officers on deputation
to the corps.

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187

Army School of Physical Training : The Army School of Physical Training

(ASPT), Pune is a class' A' Establishment running physical and allied Sports
Training Course for Army personnel. central police organisation, paramilitary
forces and friendly foreign countries to train instructors capable of imparting
physical training and sports coaching at appropriate level.
Army Airborne Training School : The Army Airborne Training School
(AATS), Agra imparts training in aerial delivery and air transportation of men
anci material. It is also responSible for carrying out Research and Trial
pertaining to air portability and para dropping of all types of equipment.
Institute of National Integration: The Institute o( National Integration (INI),
Pune imparts training to Officers, Personnel Below Officer Rank and Religious
Teachers in a phased manner, highlighting rich cultured heritage, spirit of
tolerance and national amity.
Institute of Military Law: The Institute of Military Law (IML), Kamptee
imparts training to officers of Judge Advocate General Branch as well as other
arms and services in military and allied law.
Military School: The five Military Schools in the country at Aimer, Bangalore,
Belgaum, Chail and Dholpur are affiliated to CBSe. The Military Schools
admit boys in class VI, based on an all-India Entrance Examination. The aim
of Military Schools is to impart quality education to enable the students to
take All-India Secondary School Examination and Senior Secondary Examination
conducted by CBSE and also to facilitate their entry into the National Defence
Academy.
Army Sports Institute : To restore national pride in the hearts of our fellow
countrymen and to project a winning image of the Army, the Government
has approved the establishment of an Army Sports Institute (ASl) at Pune
and Army Sports Nodes in selected disciplines at various places in the country.
Appropriate funds have been earmarked for state-of-the-art infrastructure and
equipment coupled with food habitat, foreign exposure and training under
foreign coaches.
Rashtriya Indian Military College : The Rashtriya Indian Military College
(RIMC), Dehradun was founded on 13 March 1922 with the object of
providing necessary preliminary training for boys of Indian birth or domicile,
Wishing to become officers in Indian Arm~ Forces. The institution now serves
as a feeder institution to the National Defence Academy, Khadakwasla (Pune),
wherein cadets of the Army, Navy and Air Force receive their initial l!aining.
Sainik Schools : The scheme to establish Sainik Schools was started in 1961
to broad-base recruitment and remove regional imbalance in the officer's cadre
of the Defence Forces. Sainik Schools are a joint venture of the Central and
State Governments. At present, 18 Sainik schools are being administered by
Sainik Schools Society. These schools are affiliated to Central Board of
Secondary Education and follow 10+2 pattern in science stream only.
National Defence College: The National Defence College (NOC) inaugurated

India 2005

1R8

on 27 April 1960 is the only institution in the country that imparts knowledge
on all aspects of national security and strategy. Senior Defence and Civil
Service Officers participate in a 47-wl'ek comprehensive programme of
national security and strategy.
Army Cadet College : Army Cadet Colltge (ACq, Dehradun is a Wing of
IMA which caters for training of service cadets selected for commission. The
academic format is similar to the NDA on the lines of 10+2+3 and the syllabus
is common. On completion of the course, these cadets also qualify for a B.A.
or BSc. degree, recognised by the Jawaharlal Nehru University.

PRODUCTION
The primary role of the Department of Defence Production is to equip the
armed forces of the country with the latest equipment and weaponry systems
and to contribute to modernisation of the armed forces. This task is being
undertaken through 39 ordnance factories and eight Defence Public Sector
Undertakings.
ORDNANCE FACTORIES
There are 39 ordnance factories under Ordnance Factory Board (OFB). One
more ordnance factory at Nalanda (Bihar) is also being established. These
factories play a vital role in equipping the armed forces with weapons,
ammunitions, tanks, etc. The objective of the organisation is to meet the
requirements of the armed forces, particularly of the army for conventional
lethal and non-lethal hardware. Adequate and timely supply of defence stores
of stringent quality specification at minimal cost is the primary consideration.
The factories produce military transport vehicles, infantry combat vehicles,
armoured vehicles, optical and opto-electronic instruments, field cables,
summer and winter uniforms, tentages, parachutes, miscellaneous leather
goods, float bridges, general stores, civil blasting explosives, etc. Facilities also
exist for design and manufacture of captive special purpose machine tools
for production of arms and ammunition components.

Besides supply of arms, ammunition and other items to the Armed

Forces, the needs of police and the para-military organisations are also catered
to. Items an> also produced for the Railways, Public Sector Undertakings and
other Government departments.
SUPPLIES WING
The major functions of Supplies Wing are: (i) Indigenisation and function as
the nodal wing of the Ministry of Defence for matters relating to purchase
policies; (ii) policy issues relating to Private Sector Participation in Defecne
Production and consideration of proposals from Private Industry for grant of
Industrial License for Defence Production; (iii) Quality Assurance of Defence
Equipment and Cadre Control of DGQA Establishment, through Directorate
General Quality Assurance; (iv) Standardisation and Codification of Defence
Equipment; and (v) Administrative Control of Bharat Dynamics Limited(BDL).

Defence

189

In order to encourage civil industry for indigenous development of

defence stores, a scheme of National Award for excellence in indigenisation
was introduced in the year 1993-94. To help the civil sector familiarise itself
with the requirement of Armed Forces, permanent sample rooms are maintained
in four metropolitan cities.
In so far as the task of development of defence supplies is concerned,
the value of tht' development of defence supply orders placed on the private
sector has risen from apprOXimately Rs 60 crore per annum during the early
eighties to around Rs 200 crore per annum. During the year 2003-04, 606 items
worth Rs 210 crorc (approx.) were indigenised.
In May 2001, Government decided to open up Defence Industry Sector
for participation by Indian Private Companies with FDi up to 26 per cent
of the equity, both subject to licensing. So far, the Department of Industrial
Policy and Promotion has issued 16 Letters of Intent / Industrial licence in
consultation with Ministry of Defence.
DEFENCE UNDERTAKINGS
The Defence Public Sector Undertakings (DPSUs) were structured with a
flexible form of operation, decentralised management and adequate operational
autonomy. Eight Public Sector Undertakings currently function under the
Department of Defence Production. These are Hindustan Aeronautics
Limited(HAL), Bharat Electronics Limited (BEL), Bharat Earth Movers
Limited(BEML), Mazgaon Dock Limited (MDL), Garden Reach Shipbuilders
and Engineers Limited (GRSE), Goa Shipyard Limited(GSL), Bharat Dynamics
Limited (BDL) and Mishra Dhatu Nigam Limited (MIDHANI).
The Hindustan Aeronautic8 Limited (HAL) was set-up in 1964 with its
corporate office at Bangalore. The company has 16 divisions and nine R&D
centres located in six States. It is the largest public sedor undertaking under
the Department of Defence Production. Originally incorporated as a private
limited company, it was converted into a public limited company on 10 July
1995. The HAL's products range consists of aircraft, engines, accessories,
avionics, structures for aerospace vehicles, satellites and industrial and marine
gas turbine engines. The Divisions of HAL have ISO 9001 /2000 accreditions.
Eight of the divisions have also obtained ISO 14000-1996 environment
management system certification. The HAL has produced over a period of
time 11 types of aircrafts of its own design and 13 types of aircrafts under
license covering small aircraft, fighters, trainers, helicopters and their
corresponding engines, avionics and accessories. The Company has produced
as of now, about 3,500 aircraft and 3,540 engines and has also overhauled
about 7,960 aircraft and 26,800 engines. The Company has designed and
developed different variants of Advanced Light Helicopter(ALH) in Military
and Utility versions. The HAL has exported its goods and Defence Services
to the countries like USA, France, UK, Japan, Oman, Mauritius, Malaysia,
Nepal, Namibia, etc. The HAL has established joint ventures BAe-HAL, IndoRussian Aviation Ltd., with international participation. Further strategic
alliances are being worked out with other international companies such as

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India 2005

Snecma, Eurocopter, Sukhoi Design Bureau, etc. HAL is also working on

developing long-term partnership with the Indian industry.
Bharat Electronics Limited (BEL) established in 1954, with its corporate
office at Bangalore, has nine units in the country. It is engaged in the design
development and manufacture of sophisticated state-of-the-art electronics
equipment / components for the use of defence services, para-military
organisations and other governmental users like All India Radio, Doordarshan,
Department of Telecommunications, Police Wireless, Meteorological
Department, etc. BEL is also the premier indigenous source for professional
electronic equipment. Nine Units/SBUs were certified for ISO 9000: 2000
during the year 2003-04. With this all Units/SBUs (except Pune and
Machilipatnam Units) have been certified for QMS. Six Units/SBUs were
certified for ISO 14000: 1996 during the year 2003-D4. With this the Company
has a total of 10 EMS certifications, out of the planned 17. The balance seven
are planned in the current financial year.
The Bharat Earth Movers Limited (BEML) was established in May 1964 and
commenced its operations from January 1965. With the disinvestment of
shares, Government is still the major shareholder in the Company with a
holding of over 61.23 per cent of equity shares as of end March 2004.
The BEML has three manufacturing divisions located at Bangalore, Kolar
Gold Fields (KGF) and Mysore. All the production units of BEML are equipped
with necessary general purpose machines and special purpose machines like
heavy duty lathes, CNC boring machines, computer numerically controlled
(CNC) machines, CNC bevel generating systems, flexible manufacturing
system, heavy and large size fabrication facility, welding robots, etc., to
manufacture transmission and axles, hydraulic control valves, cylinders and
pumps, diesel engines, railway coaches, rail buses, railway wagons, Alternating
Current Electrical Multiple Units(AC EMUs), heavy duty all-terrain multi-axle
trucks, earth moving machines and tracked military vehicles like Armoured
Recovery Vehicles, self-propelled gun, tanks, and other military vehicles like
Heavy Recovery Vehicles, bridge laying tank, truck-based mobile bridge
system, mounted gun system on truck chassis, rocket launcher systems among
others.
Garden Reach Shipbuilders and Engineers Limited (GRSE) was incorporated
with its corporate office at Kolkata as a joint stock company in 1934, under
the name M / s Garden Reach Workshop Limited. The Government acquired
the company in 1960. The GRSE builds and repairs warships and auxiliary
vessels for the Navy and the Coast Guard. Its product range includes frigates
carrier and oil tankers, patrol vessels, attack craft, high technology ship bome
equipment, portable Bailey type steel bridges, tubing pumps for the agricultural
sector, marine sewage treatment plants, diesel engines, etc. Chemical Laboratory
of GRSE was certified by the National Accreditation Board for Testing
Laboratory.

Defence

191

Goa Shipyard Limited (GSL) located at Vasco-da-Gama primarily builds

small and medium size Naval vessels and repair/re-fit ships/vessels. The
company has undertaken construction/re-fit of variety of vessels for the
Indian Navy and the Coast Guard as well as for the non-defence sector. Its
production includes Advanced off-shore patrol vessels, VPY, FPV and XFAC.
The Bharat Dynamics Limited (BDL) was set-up in 1970 with corporate office
at Hyderabad for manufacture of guided missiles. It possesses the capability
to piOduce advanced guided missile systems. The company has two units at
Kanchanbagh and Medak. The company is the prime production agency for
missile weaponry systems. BDL has been accorded ISO 9002 certification.
Mishra Dhatu Nigam Limited (MIDHANI) located at Hyderabad was
incorporated on 20 November 1973 with the primary objective of ushering
in self-reliance in special metals and alloys for strategic sectors like Defence,
Space and Atomic Energy as well as hi-tech Commercial Industries in India.

RESEARCH AND DEVELOPMENT

Defence Research and Development Organisation (DROO) was formed in 1958
by amalgamation of then already functioning Technical Development
Establishments (TOEs) of the Indian Army and the Directorate of Technical
Development and Production (DTDP) with the Defence Science Organisation
(DSO). DRDO laboratories are engaged in ever-widening spectrum of Defence
Technologies covering various disciplines like aeronautics, armaments,
electronics, combat vehicles, engineering systems, instrumentation. missiles,
advanced computation and simulation. special materials, naval systems, life
sciences and agriculture, to name a few.
The Department of Defence Research and Development came into
existence in 1980. It is dedicated to the mission of progressive enhancement
of self-reliance in defence systems and state-of-the-art defence technolOgies.
To facilitate accomplishing this mission. there is a mission-mode structure
headed by the Scientific Adviser to RaksluJ Mantri, who is also the Secretary,
Department of Defence Research and Development an~ Director General,
Research and Development.

DRDO has developed and led to production of a large number of defence

systems, equipment and other products as per operational requirements of
the Armed Forces projected from time to time.
Maiden flight of Technology Demonstrator (lDl) of Light Combat
Aircraft (LeA) 'TEJAS' took place on 4 January 2001 at Bangalore. Since then.
two technology demonstrators and prototype vehicle (PV1) of LeA has
completed 237 flight tests, till 30 June 2004. The equipping of the fourth Tejas
aircraft (PV2) is in progress, which is of the production standard. Design
activities on LCA Trainer Variant LCA (PV5), ensuring commonality with LCA
(Navy), has been initiated.
~'

The I<averi engine for the Tejas is undergoing development trials. As

:>n date two Kabini prototypes (CliO) and five I<averi engine prototypes

192

India 2005

(K1 to KS) have bt_>en built for engine testing apart from various modules and
components manufactured for their testing in the rigs to assess their
aerodynamic and structural integrity performance.
The limited series production of Pilotless Target Aircraft (PTA) 'Lakshya', a reusable aerial target system, remotely operated from ground to
provide training to gun and missile crew and to air defence pilots is in
progress for training of all the three Services. Samyukta Communication
Segment (an electronic warfare system) has been handed over to Army.
During the financial year 2003-04, 59 new projects with an aggregate
value of Rs 1,657 lakh (approx) were researched upon in various academic
institutions in the country. Grant-in-Aid worth Rs 30 lakh were also provided
to various scientific and academic institutions and societies for holding
national/international conferences / seminars / workshops.

RESETILEMENT OF EX-SERVICEMEN
The Directorate General of Resettlement (OCR) under the Ministry of Defence
looks after matters connected with the resettlement and welfare of Exservicemen (ESM) and their dependents. The Ex-servicemen population is
mainly concentrated in the States of Uttar Pradesh, Punjab, Haryana,
Maharashtra, Kerala, Tami] Nadu, Rajasthan and Himachal Pradesh. A
Kendriya Sainik Board (KSB) under the Chairmanship of the Raksha Mantri
lays down general policies for the welfare of ESM and their dependents, for
the administration of welfare funds, and also for coordinating the work of
the Sainik Boards in the country. Similarly, at the state level the Rajya Sainik
Boards (RSBs) and at the district level the Zila Sainik Boards (ZSBs) have been
established. The Central Government bears 50 per cent of expenditure
incurred on the organisations of RSBs while the remaining expenditure is
borne by the respective State Governments.

RESElTLEMENT
With a view to resettle / re-employ Ex-Servicemen, the Central Government
arranges the following: (a) Training programme to re-orient retiring defence
personnel towards civil employment; (b) Reservation of posts for providing
employment opportunities in government/ semi-government/public sector
organisations in C and D posts; and (c) Schemes for self-employment.

TRAINING
Vocational training for preparing both Ex-servicemen and retiring service
personnel for their resettlement in civil life is one of the major functions
entrusted to the Directorate General of Resettlement. The emphasis of the
programmes run by the DGR has been to organise employment/selfemployment oriented training programmes.
Officers Training : All officers are entitled to avail resettlement training
facility. Specially designed courses are organised in diversified fields for
officers of three Services. The avenues covered by this training include

Defence

191

lnfonnation Technology, St'CUrity, tourism, tmtrepn.'tll'urship development, materidl

management, agro-bast..-d industries, seafaring, business managemtmt, eh.:.
Personnel Below Officer Rank (PBOR) : To prepare rl'tiring defence
personnel for employment/ self-employment and to ensun' their smooth
transition to second can.>er, ddburate n.>settiemcnt training programmes are
being conducted. This is in thl' form of reorientation courses both technical
md non-technical in various vocations to facilitate career transition. This
traming is organised with various government, semi-govemmtnt and private
institutions spread allover the country. The Government departments and 27
PSUs provide 'On-the-Job Training' in different trades.
RE-EMPLOYMENT
The Central and State Government.. provide a number of concessions to ExServicemen for their re-employment in Central/State Government posts.
These include limited reservation of C & LJ posts I relaxation in age and
educational qualifications, exemption form payment of application I examination
fees, priority employment to disabled ex-servicemen and dependants of
deceased service personnel on compassionate grounds.
RESERVATION FOR EX-SERVICEMEN IN GOVERNMENT JOBS
The Central Government has reserved 10 per cent of Group 'C' posts and
20 per cent of Group '0' posts for ex-servicemen. Central Public Sector
Undertakings and Nationalised Banks provid(_' 14.5 per cent reservation in
Group 'C' and 24.5 per cent in Croup '0' posts to them. 10 per cent posts
of Assistant Commandants in Para-Military forces are also rt'served for
ex-servicemen. In addition, most of the State Covemments, except for the
StatL'S of Arunachal Pradesh, Assam, Bihar, J&K, Kerala, Andhra Pradesh and
Meghalaya, are pnwiding reservations to ex-servicemen in the State Government
jobs. It has, however, not been possible to have statutory backing to the
reservations being provided to them, inter alia, due to the overall ceiling of
50 per cent imposed by the Supreme Court and 49.5 per cent reservation
already having been provided in the government jobs for SC I ST / OBe.
Therefore, the reservation being provided to ex-servicemen is not of vertical
nature as in the case of reservation for SC/ST lOBe. It is of horizontal nature,
which implies that ex-servicemen selected against the vacancies reserved for
them are subsequently adjusted against the relevant category, i.e., SC/ST IOBC
or General to which they belong. There is also no carry forward of unfilled
reserved vacancies under horizontal vacancies.
AGE RELAXATION

Ex-servicemen have been provided age relaxation to the extent of military

service plus three years against reserved/1lIl1'e8efVed vacancies in Groups 'C'
and '0' posts. The age relaxation is restricted to five years in Groups' A' and
'6' posts which are filled by competitive ewniRation.
RELAXATION IN EDUCATIONAL QUALIJIlCATION
Ex~servicemen

have been granted relaxation in prescribed educational

]94

India 2005

qualifications. Army Class I, II and III certificates have been equated to eighth
class, sixth class and fourth class respectively in the civil field. For reserved
vacancies for which the minimum educational qualification is matriculation,
an ex-serviceman, who has put in at least 15 years of service and has passed
Army class I or equivalent is considered eligible. For the reserved jobs, for
which the minimum ('ducational qualification is graduation, an ex-serviceman
who has put in at least 15 years of service in the Army and has passed
matriculation or equivalent examination is considered eligible.
SECURITY AGENCIES
The Directorate General of Resettlement (DGR) registers/sponsors Security
Agencies for providing Security Guards to various Public Sector Undertakings
and industries in private sector. The Scheme offers self-employment
opportunities to retired Defence Officers and employment opportunity to exPBOR. The Department of Public Enterprises had issued instructions to the
I'SUs to get security personnel through DGR sponsored Security Agencies.
111e Scheme has shown good results. The OCR has also written to Chief
Secretaries of all States urging them to issue suitable instructions to all
concerned under their jurisdiction to obtain security cover through DGR
empanelled agencies, thereby furthering the cause of resettling ex-servicemen.
A case has also been taken-up with the Government of Maharashtra to exempt
Security Agencies operating in that State from the Maharashtra Security Guard
Regulations of the Employment and Welfare Act, 1981.
SCHEMES FOR SELF-EMPLOYMENT
Important schemes for self-employment for ex-servicemen have been launched
in collaboration with the Small Industries Development Bank of India (5IDB1),
National Bank for Agricultural Rural Development (NABARD) and the Khadi
and Village Industries Commission (KVIC). These schemes are given in
succeeding paragraphs.
SEMFEX-I SCHEME
SEMFEX-I scheme was launched in April 1987. Under this scheme, financial
assistance is provided to ex-servicemen to set-up small-scale industrial
projects for self-employment. Loans under this scheme are provided by the
respective State Financial Corporation. The scheme is currently under review.
SEMFEX-II SCHEMES
The scheme has been promoted with the assistance of NABARD to set-up
agriculture and allied activities including Small Road Transport Operators
(SRTO) and also for setting-up of village, cottage, tiny and small-scale
industries in rural areas. There is no upper age limit for loan in respect of
projects under farm sector including agro/food processing units. The financial
assistance in case of non-farm sector activities is available up to 551 limit for
setting-up industries in rural areas. This schemes is operative from the year
1988-89.

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}95

SEMFEX-III SCHEME (Sena Se Gramudyog)

The Scheme is operative in collaboration with the Khadi and Village Industries
Commission (KVIC). The maximum loan limit for individual entrepreneurs,
cooperative societies / institutions and trusts is Rs 25 lakh per project to setup industries/service sector activities in rural areas. The financial assistance
is available through the Scheduled Commercial Banks, Regional Rural Banks,
Co-operative Banks, Private Commercial Banks and other Financing Institutions
of ftate and Central Government, as approved by the KVle. The margin
money grant (subsidy) is provided @ 30 per cent of the project cost for loan
amount up to Rs 10 lakh and balance 15 lakh will be @ 10 per cent of the
project cost. The ex-servicemen borrowers are required to invest only 5 per
cent of the project cost as margin money. The KVIC Central Office has
allocated State/UT-wise margin money grant to the State KVIBs and Regional
KVles to provide subsidy to the borrowers through the financing Banks.
Under the Scheme, Rs 10.29 crore have been sanctioned to 961 Ex-Servicemen
by the Bank since inception and up to March 2004.

NATIONAL EQUITY FUND (NEF) SCHEME (Sena Se Laghudyog)

The Scheme has been launched in collaboration with the Small Industries
Development Bank of India (SIDBI). The financial assistance is available to
set-up projects in tiny / small-scale sector, service enterprises and also for
undertaking expansion, technology up gradation, modernisation and revival
of viable sick units in 551 Sector. Maximum loan limit is Rs 50 lakh per project.
Soft loan is available up to 25 per cent of the project cost subject to a maximum
of Rs 10 lakh per project. SlOB) provides refinance to the financing Banks.
Loan is available through Scheduled Commercial Banks, State Co-operative
Banks, select Urban Co-operative Banks and State Financial Corporations/
Twin-function Industrial Development Corporations. The projects can be setup irrespective of location in rural and urban areas. Loan up to Rs 25 lakh
will be provided under the Scheme without collaterals and / or third party
guarantee, to small-scale industrial ventures including those engaged in IT /
Software industry. Under the Scheme, Rs 1.07 crore have been sanctioned to
34 Ex-Servicemen by the Bank since inception and up to March 2004.
The other major self-employment schemes for rehabilitation of ESM /
Widows/ dependants are as follows :
Allotment of Army Surplus Vehicles : The ESM/Widows of Defence
personnel who died while in service are eligible to apply for allotmet1t of an
Army surplus phased out Class V B vehicle. The application forms are routed
through Zila/Rajya Sainik Boards in case of retired personnel and through
units for those in last six months of service to DGR for registration.
EXSERVICEMEN CONTRIBUTORY HEALTH SCHEME (ECHS)

Ex-servicemen Contributory Health Scheme, introduced with effect from

1 April 2003 is based on the pattern of Central Government Health Scheme.
On retirement, every service personnel drawing pension will compulsorily

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India 2005

become a member of the scheme by contributing his/her share. Similarly, exservicemen who have already retired can become members by making a onetimp CDl1tribution or in three consecutive yearly instalments. The rates of
contribution vary from Rs 1800 p.m. 10 Rs 18,000 p.m. based on pension/
family pen<.;ion. The war widows have been exempted from payment of ECl-IS
contribution.
Ex-sprvicemen I dependents who are non-pensioners would continue to
get financial assislanct from Armed Forces Flag Day Fund for treatment of

specified serious diseases.

EX-SERVICEMEN COAL TRANSPORT SCHEME
DCR sponsors ESM Coal Transport Companies for the execution of
loading and transportation ot coal in various coal subsidiaries of Coal India

l.imited.
COAL TIPPER SCHEME
The widows of Defence personnel who died while in service due to causes
attributablt' to military service can be sponsored bv DCR for attaching one
tipper truck in their name with an Ex-Serviceman Coal Transport Company.
The functioning of these compani{'s is monitorpd by OCR.
ALLOTMENT OF OIL PRODUcr AGENCIES
The Ministry of Petroleum and Natural Gas has reserved eight per cent of
the oil product agencies, i.e., LPG Dealership, Petrol Pumps, Kerosene
Distributorship, etc., in the marketing plan for widows and dependants of
those who died in war I peace with death attributable to Military Service and
disablt>d soldil'rs with disability of 50 per ccnt and above attributable to
Military Service. Eligible persons can apply as and when such vacancy under
D('fence Category is advertised in the newspapers by petroleum companies.
MOTHER DAIRY MILK AND FRUIT AND VEGETABLE SHOPS
The ]COs / DRs an' allotted Mother Dairy milk shops and Fruit and Vegetable
shops. As on date 670 milk shops and 280 Fruit and Vegetable shops are being
operated by l'x-servicemen. Dependant sons (where ESM are not eligible) are
abo considered for allotment of Fruit and Vegetable shops in and around
Delhi.
MANAGEMENT OF CNG STATIONS
The scheme for management of CNG stations belonging to Indraprastha Gas
Limited was launched as a pilot project in July 2001. On success of pilot project
the scheme was extended to other retired officf'rs. As on date there are 55
retired officers managing 70 CNG stations. This scheme is presently available
in Delhi only.

10

Education

BEFORE 1976, education was the exclusive responsibility of the States. The
Constitutional Amendment of 1976, which included education in the Concum'nt
List, was a far-reaching step. The substantive, financial and administratiw
implication required a new sharing of respon<;ibility between the Union
Government and the States. While the role and responsibility of the States
in education remained largely unchanged, the Union Government accepted
a larger responsibility of reinforcing the national and integrative character of
education, to maintain quality and standards including those of the teaching
profession at all levels, and the study and monitoring of the educational
requirements of the country.

The Central Government continut.'S to playa leading role in the evolution

and monitoring of educational poliCies and programmes, the most notable of
whjch an' the National Policy on Education (NPE), 19H6 and the Programme
of Action (POA), ] 986 as updated in 1992. The modified policy envisages a
National System of Education to bring about uniformity in education, making
adult t!ducation programmes a ma<;s movement, providing universal access,
retention and quality in elementary education, special emphasL<; on education
of girls, establishment of pace-setting schools like Navodaya Vidyalayas in
each district, vocationalisation of secondary education, synthesis of knowledge
and inter-disciplinary research in higher education, starting more Open
Universities in the States, strengthening of the All India Council of lechnical
Education, encouraging sports, physical education, Yoga and adoption of an
effective evaluation method, etc. Besides, a decentralised management structure
had also been suggested to ensure popular participation in education. lOe
POA lays down a detailed strategy for the implementation of the various
polk]' parameters by the implementing agencies.

The National System of Education as envisaged in the NPE is based on

a national cumcular framework, which envisages a common core alongwith
other flexible and region-specific components. While the policy stresses
widening of opportunities for the people, it calls for consolidation of the
existing system of higher and technical education. It also emphasises the need
for a much higher level of investment in 'education of at least six per cent
of the national income.
In order to facilitate donations including smaJler amounts from India and
abroad for implementing projects / programmes connected with the education
sector, the Government has constituted "Bharat Shiksha Kosh" as a Society.

EXPENDITURE
In line with the commitment of augmenting resources for education, the
allocation for education has, over the years, increased significantly. The Plan
outlay on education has increased from Rs ] 5] crure in the First Five-Year

India 2005

198

ELEMENTARY EDUCATION IN INDIA

PROGRESSOFENROLMENT
LAKH PERSONS
1.114

1.131

1.098

973

92&

71&

1950-51

~
UI

1!16(}.61

1968-69

1979-80

Primary LrttI (Class I-V) Age 6-11

yeII1

198HO 1999-2000 2000-01

2001-Il2

2002-(13

(Provislonal)
Middle LIVtI (Class VI-VIII) Age 1H. YIII1

Education

199

Plan to Rs 43,825 crore in the Tenth Five-Year Plan. The expenditure on

Education as a percentage of GOP also rose from 0.64 per cent in 1951-52
to 3.98 per cent in 2002-2003 (BE).
The outlay for Education in the Tenth Five-Year Plan of Rs 43,825 crore,
is higher than the Ninth Plan outlay of R<; 24,908.38 crore by 1.76 times.
Rs 30,000 crore has been provided for the Department of Elementary
Education and Literacy and Rs 13,825 crore for the Department of Secondary
and Higher Education. The outlay for education during 2004-05 is Rs 6,000
crore for the Department of Elementary Education and Literacy and Rs 2,225
crore for the Department of Secondary and Higher Education. The expenditure
during the plan periods on thl' different sectors of education is given in table
10. J.
EDUCATION OF SCHEDULED CASTES AND SCHEDULED TRIBES
After independence, the Government have taken number of steps to strengthen
the educational base of the persons belonging to the Scheduled Castes and
Scheduled Tribes. It is true, however, that these communities still have a long
way to go before they can come up
tht level of the other communities
in the field of educational development.

,0

Pursuant to tht:' National Policy on Education 1986 and the Programme

of Action (POA) 1992, the following special provisions for SCs and STs have
been incorporated in the existing schemes of the Departments of Elementary
Education and Literacy and Secondary and Higher Education: (a) Relaxed
norms for opening of Primary / Middle schools; a primary school within ]
km walking distance from habitations of population up to 200 instead of
habitations of population up to 300; (b) Abolition of tuition fee in all states
in government schools at least up to the upper primary level. In fact, most
of the states have abolished tuition fees for SC/ST students up to the senior
secondary level; (c) Incentives like free textbooks, uniforms, stationery, school
bags, etc., for these students; (d) The Mid-Day Meal scheme, a successful
incentive programme, covers all students of primary classes in all the
Government and local body and Government-aided schools in the country
with the aim to improve enrolment, attendance and retention while
simultaneously impacting on the nutritional status of the children; (e) Sarva
Shiksha Abhiyan (SSA) is a historic stride towards achieving the long
cherished goal of Universalisation of Elementary Education (UEE). While
bridging social, regional and gender gaps in society, the programme lays
emphasis on the education of the girl child. The main features of the
programme are: (i) Focus on girls, especially belonging to SC/ST communities
and minority groups, (ii) Back to school camps for out of school girls, (iii)
Free textbooks for girls, (iv) Special coaching/remedial classes for girls and
a congenial learning environment, (iv) Teachers' sensitization programmes
to promote equitable learning opportunities, (v) Special focus for innovative
projects related to girls' education, (vi) Recruitment of 50 per cent female
teachers; (f) District Primary Education Programme (DPEP) provides
infrastructural facilities and special interventions for the education of girls,

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India 2005

,-,

......

o......

Education

201

SCs, STs, disabled, etc; (g) The Constitutional (86 th Amendment) Bill, notified
on 1.3 December 2002 provides for free and compulsory elementary education
as a Fundamental Right, for all children in the age group of 6-14 years; (h)
Mahila Samakhya (MS) addresses traditional gender imbalances in educational
ilccess and achievement. This involves enabling women (especially from
socially and economically disadvantaged and marginaliSt.~d groups) to address
and deal with problems of isolation and lack of self-confidence, oppressive
social customs and struggle for survival, all of which inhibit their empowerment;
(i) The scheme of Kasturba Gandhi Swatantrata Vidyalaya is to improve
JitE'racy among the women belonging to SCs, STs, OBC., and Minorities. It is
proposed to st't up 500 residential s("hools in districts having less than 10 per
cent literacy among women. Initially, schools would be up to class V and
subsequently upgraded in rural areas; (j) Edu("ation Guarantee Scheme and
AJtt'rnative and Innovative Education (ECS and AlE) has been launched to
provide access to school-less habitations; (k) Shiksha Karmi Project (SKP) aims
at universalisation and qualitative improvement of primary education in
Tt'mote, arid and socio-economically backward villages in Rajasthan with
primary attention to girls. It is note-worthy that in Shiksha Karmi Schools,
74 per cent of the students are from SCs, Sls and OBCs; (I) Reservation of
st'ats for SCs and STs in Central government institutions of higher education.
There is also relaxation in the minimum-qualifying cut-off stages for admission,
apart from reservation; (m) The UCC has established SC/ST Cells in 113
Universities including Central Universities to ensure proper implementation
of the reservation policy; (n) To improve academic skills and linguistic
proficiency of students in various subjects and to raise their level of
comprehension, remedial and special coaching is provided for SC 1ST students
and for those who marginally fail in the entrance examination are provided
a one-year preparatory course and those who qualify are admitted to the FirstYear of the B.Tech. Course; (0) The UGC provides relaxation of five per cent
at the Master's level for appointment as Lecturer for SC 1ST candidates. The
Commission has also reduced the minimum percentage of marks reqUired for
appearing in the NET examination to 50 per cent at Master's level for SCs I
Sl<.,; (p) UGC awards Scholarships, Research Associateships, Fellowships
exclusively to SC/ST students. UCC also awards Junior Fellowships every
year in Science and Humanities including Social Sciences to SC I ST candidates
who appear in the National Eligibility Test (NET) of the UGC and qualify
the eligibility test for lecturership; (q) SC/ST candidates are provided
relaxation up to 10 per cent in cut off marks for the Junior Research Fellowship
ORF) Test and all the SC and ST candidates qualifying for the JRF are awarded
fellowship; (r) IITs have a scheme under which SC/ST students, whd fail to
qualify in the entrance examination, are admitted to the preparatory courses
run by IITs with those who qualify at thE" end of the preparatory courses,
being offered admission; (s) Tuition fee exemption, Book Bank facility and
scholarships are given to SC/ST students in lITs; (t) Out of 43,000 scholarships
at the secondary stage for talented children from rural areas, 13,000 scholarships
are exclusively reserved for SC 1ST students subject to fulfilment of criteria
laid down (u) 225 scholarships are exclusively reserved for SC/ST students

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India 2005

under the National Talent Search Scheme conducted by NCERT; (v) The
Central Institute of Indian Languages, Mysore has a scheme of development
of Indian Languages through research, developing manpower and production
of mat~rials in modem Indian Languages including tribal languages. The
Institute has worked in more than 90 tribal and border languages; (w) Under
the Scheme of Strengthening of Boarding and Hostel Facilities for Girl
Students of Secondary and Higher Secondary Schools cent per cent financial
assistance is given to Voluntary Organisations to improve enrolment of
adolescent girls belonging to rural areas and weaker sections. Preference is
given to educationally backward districts particularly those predominantly
inhabited by SCs/STs and educationally backward minorities; (x) 146 districts
have been identified as low female literacy districts to be given focussed
attention by the Centre as well as States/Union Territories for implementation
of Programmes/Schemes; and (y) From the allotted budgets of the Departments
of Elementary Education and Literacy and Secondary and Higher Education,
15 per cent and 7.5 per cent are allocated under the Special Component Plan
and thl' Tribal Sub-Plan for Scheduled Castes and Scheduled Tribes respectively.
EDUCATIONAL DEVELOPMENT IN NORTH-EASTERN REGION
In the Education Sector, State and Central Sector projects involving Rs 444.90
have so far been approved for funding from the Non-Lapsable Central
Pool of Resources in the North-Eastern Region. Funds totaling Rs 355.13 crore
have been released to the implementing agencies as on 31 March 2004. The
projects are in various stages of implementation.

crOTl;'

In the Central Sector, these proposals mainly relate to infrastructuraJ

development of Central Institutions like, the North-Eastern Regional Institute
of Science and Technology (NERIST), Itanagar: five Central Universities in the
North-East (two in Assam, one each in Meghalaya, Mizoram and Nagaland)
JNU and IGNOU. Under IGNOU's project, Regional Centres have been made
operational in all the eight State Capitals of the NE Region. All of these are
equipped with Tde Learning Centres where advanced courses such as BIT,
ADI1~ MCA and BeA are offered. The number of study centres has also
increased significantly from 80 to 125 and 80 study centres have been provided
with downlink facilities.

ELEMENTARY EDUCATION
The Parliament has passed the Constitution 86d1 Amendment Act, 2002 to make
elementary education a Fundamental Right for children in the age-group of 6-14
years. It is proposed to bring in a follow-up legislation with detailed mechanism
to implement this act.
The Scheme of Sarva Shiksha Abhiyan(SSA) was launched in 2001. The
goals of SSA are as follows: (i) All 6-14 age children in school/Education
Guarantee Scheme Centre/bridge course, (ii) All 6-14 age children complete five
year primary education by 2007; (iii) All 6-14 age children complete eight years
of schooling by 2010; (iv) Focus on elementary education of satisfactory quality
with emphasis on education for life; (v) Bridge all gender and social category

Education

203

gaps at primary stage by 2007 and at elementary education level by 2010; and
(vi) Universal retention 2010.
The assistance under the programme of SSA was on a 85:15 sharing
arrangement during the Ninth Plan, 75:25 sharing arrangement during the Tenth
Plan, and 50:50 sharing thereafter between the Central Government and State
Government.
The programme covers the entire country and addresses the needs of 192
millon children in 11 Lakh habitations. 8.5 lakh existing primary and upper
primary schools and 33lakh existing teachers would be covered under the scheme.
The programme seeks to open new schools in habitations which do not have
schooling facilities and strengthen existing school infrastructure through provision
of additional class rooms, toilets, drinking water, maintenance grant and school
improvement grant. The SSA has a special focus on girls and children of weaker
sections. A number of initiatives including free textbooks, target these children
under the programme. The SSA also seeks to provide computer education even
in rural areas to bridge the digital divide.
During 2003-04, the SSA approved 67,190 new schools, 3,98,189 appointment
of new teachers, 40,960 construction of school buildings, 68,779 additional class
rooms, construction of 46,272 toilets and provision of Drinking Water for 33,161
schools, EGS facilities for 47,04,400 children, AlE for 64,18,238 children, lED for
14,59,589 children, free textbook for 4,69,59,451 children, School Grant for 6,93,303
schools and teacher grant for 29,67,053 teachers against annual district elementary
education plan for 596 districts. A sum of Rs 2,698.38 crore was released by Central
Government to the States / VTs.
EDUCATION GUARANTEE SCHEME AND ALTERNATIVE AND
INNOVATIVE EDUCATION
Education Guarantee Scheme and Alternative and Innovative Education (EGS
and AlE) is an important component of Sarva Shiksha Abhiyan (SSA) to bring
out-of-school children in the fold of Elementary Education. The scheme envisages
that child-wise planning is undertaken for each out-of-school children.
EGS addresses the inaccessible habitation where there is no formal school
within the radius of one km and atleast 15-25 children of 6-14 years age group
who are not going to school are available. In exceptional cases remote habitations
in hilly areas even for 10 children an EGS school can be opened.
Alternative Education interventions for specific categories of very deprived
children e.g., child labour, street children, migrating children, working children,
children living in difficult circumstances and older children in the 9+ age group
especially adolescent girls are being supported under EGS and AlE all over the
country.
A sizeable number of out-of-school children are in the habitations where
schooling facility is available but these children either did not join the school or
dropped out before completing their schooling. 'nlese children may not fit into
the rigid fonnal system. To bring such children back to school, back to school
camp and bridge courses strategies have been implemented. Bridge courses and

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India 2005

Back to school camps can be residential or non-residential depending upon the

need of children.
MID-DAY MEAL SCHEME

The National Programme of Nutritional Support to Primary Education (NPNSPE), popularly known as the Mid-Day Meal Scheme, was formally launched
on 15 August 1995. The objective of the programme is to give a boost to
universalisation of primary education by increasing enrolment, attendance and
retention, and also improving nutritional status of children in primary classes
studying in Government, Local Body and Government-aided schools. From
October 2()02, the programme has been extended to children studying in
Education Guarantee Scheme (EGS) and other Alternative and Innovative
Education (AlE) Learning Centres also.

Under the scheme central assistance is provided to States for the following:
(a) W(} grams of foodgrains per child per school day where there is a meal
programme, alternatively three kg per child pt'r month for 1() months, and (b)
admissible transport subsidy for transport of foodgrams from the~ nearest FCI
depot to the school sub;ect to a ceiling of Rs 50 per quintal.
Cost of converting foodgrains into cooked meal is expected to be borne
under the present programme by State Governments/Local Bodies.
Apart from this States have been permitted to meet certain other
requirements of Mid-Day Meal Programme from various other Centrally-assisted
schemes, as follows: i) To partially alleviate State Governments' resourCl~
constraint in providing cooked meal, 15 per cent of additional Central assistance
under the Pradhan Mantri Gramodaya Yojna (pMGY) has been earmarked by
the Plalming Commission from 2004-05 for meeting cooking cost; ii) States have
been permitted to construct kitchen shed in existing rural schools from funds
available under Sampurna Gramin Rozgar Yojana (SGRY), and for existing urban
schools from those available under National Slum Development Programme
(NSDP) and Urban Wage Employment Programme (UWEP) component of
Swama Jayanti Shahri Rozgar Yojana (SJSRY). In other urban areas construction
of kitcht'Il sheds in existing schools has been permitted under Sarva Shiksha
Abhiyan (SSA). Besides, construction of kitchen sheds has also been permitted
as a part of all new school buildings built under SSA; and iii) States have also
been allowed to spend a part of annual school grant of Rs 2,000 per annum per
school given under SSA for purchase of cooking utensils.

States have been advised to utilise services of women's Self-Help Groups

(SHGs) for cooking purpose as much as possible, in the interest of quality.
During 2003-04, 10.57 crore primary school children were covered under
the scheme. A total of 26.84lakh MTs of foodgrain was allocated to various States/
UTs .lgainst which 21.30 l.tkh MTs (79.4 per cent) of foodgrain was actually lifted
by them.
During 2003-04, 30 States/ UTs provided meals to about 5.78 crore children
against current year's target of 10.57 crore children which was about 54.6 per
cent.

Education

205

In Karnataka, 20 NGOs, including lSKCON, are serving cooked meals to

about 1.16lakh children studying in 670 schools under overall supervision of the
State Government. Recently a mod\?l for public-private partnership has evolved
in Hyderabad where the Nandi Foundation manages a central kitchen to provide
cooked meals to about two lakh children in Hyderabad.
DISTRJCf PRIMARY EDUCATION PROGRAMME

The Centrally-Sponsored Scheme of District Primary Education Programme

(DPEP) was launched in 1lJ94 as a major initiative to revitalise the primary
education system and to achieve the objective of universalisation of primary
l'ducation.
DPEP adopts a holistic approach to universaliSt access, retention and
improve learning achievement and to reduce disparities among social groups.
Adopting an 'area-specific approach' with district as the unit of pl,mning, the
key strategies of the programme have been to retain the contextuality and
sensitivity to local conditions and ensuring full participation of the community.
It also. seeks to strengthen the capacity of national, state and district
institutions and organisations for planning, management and professional
support in the field of primary education.
DPEP is based on the principle of 'additionalily' Jnd is structured to
fill in the existing gaps by providing inputs over and above the provisions
made under Central and State Sector schemes for primary education. State
Covernments are required to at Il'ast maintain expenditure in real terms at
base year level.
The programme components include construction of classrooms and new
schools, opening of Non-formal/Alternative Schooling Centres, appointment
of new teachers, setting up early childhood education centres, stnngthening
of State Councils of Educational Research and Training (SCERTs)! District
institute of Educational Training (DIETs), setting up of Block Resource
Centres/Cluster Resourct' Centres, teacher training, development of Teaching
Learning Material, Research based intt.'rventions, special interventions ft'f
promoting education of disadvantagt'd groups, girls, SC/ST, etc., initiatives
for providing integrated education to disabled children and distanct' education
for teacher training have also been incorporated in the DPEP Scheme.
Under the programme parameters, investment per district is limited to
Rs 40 crore over a project period of 5-7 years. There is ceiling of 33.3 per
cent on civil works component and 6 per cent on management cost. The
remaining amount is required to be spent on quality improvement activities.
DPEP is an externally aided project. 85 per cent of the project cost is
met by the Central Government and the remaining 15 per cent is shared by
the concerned State Governmt'nt. The Central Government share is resourced
through external assistance. At present External Assistance of about Rs 3,718
(Tore which includes grant as well as external assistance from ECI DFIDI
UNICEF I Netherlands has been tied-up for DPEP.

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India 2005

Presently DPEP is in operation in nine States covering 129 districts. DPEP

at its peak was operational in 273 districts in 18 States. However, with the
progressive closure of the programme, it is now in existence in only 129
districts
The programme is supervised through periodic Supervision Missions. So
far, 15 Internal Supervision Missions and 17 Joint Review Missions (comprising
representatives of Government and External Funding Agencies) have been
carried out. The reviews and various evaluatory studies of the programme
have brought out that the programme has resulted in significant increase in
enrolment, improvement in learning achievement, reduction in repetition
rates / drop-outs with increased community involvement, improvements in
classroom processes, etc.
Major Achievements of DPEP : (i) DPEP has so far opened more than
1,60,000 new schools, including almost 84,000 alternative schooling (AS)
centres. The AS centres cover nearly 3.5 million children, while another
1,70,000 children are covered by bridge courses of different types; (ii) The
school infrastructure created under DPEP has been considerable. Works either
complete or in progress include 45,900 school buildings, 46,800 additional
classrooms, 15,302 resource centres, 19,000 repair works, 46,500 toilets, and
16,700 drinking water facilities; (ill) The Gross Enrolment Ratio (GER) for
Phase-I states was around 93 to 95 per cent for the last three years. After
the adjustment for the Alternative Schools /Education Guarantee Centres'
enrolment, the GER in 2001-02 works out above 100 per cent. In the districts
i.'ov~~red under subsequent phases of DPEp, the GER including enrolment of
AS/EGS was abow 85 per cent; (iv) The enrolment of girls has shown
significant improvement. In DPEP I districts, the share of girls enrolment in
relation to total enrolment has increased from 48 per cent to 49 per cent, while
this increase in the subsequent phases of DPEP districts has been from 46 per
cent to 48 per cent; (v) The total number of differently-abled children enrolled
is now more than 5,60,0(}(), which represents almost 70 per cent of the nearly
8,10,000 differently-abled children identified in the DPEl' States; (vi) Village
Education Committees/School Management Committees have been set-up in
almost. all project villages/habitations/ schools; (vii) About 1,77,000 teachers,
including para-teachers/Shiksha Karmi'i have been appointed; (viii) About
3,380 resource centres at block level and 29,725 centres at duster level have
been set-up for providing academic support and teacher training facilities.
OPERATION BLACKBOARD

The scheme of Operation Blackboard (OBB) was launched in 1987-88 with the
aim of improving human and physical resource available in primary schools
of the country. Provision of at least two reasonably large rooms, at least two
teachers and essential teaching/learning materials for every existing primary
school were the components of the scheme. However, OBB could not cover
the entire spectrum of schools. The SSA will qualitatively improve and expand
the existing structure. No fresh teacher recruitment will take place under OBB
once SSA programme became operationalised.

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207

The scheme has been subsumed in Sarva Shiksha Abhiyan (SSA) from
2007.-03. However, the Planning Commission had decided that as special case,
the Central Government would meet the committed expenditure of teachers
salaries in North-East States only under the aBB scheml~ for one more plan
period, i.e., Tenth Plan period from SSA funds with the sharing ratio of 75:25
bt:tween Central and State Governments during Tenth Plan.
LOK JUMBISH PROJECT
An innovative project "Lok Jumbish" with assistance from Swedish International
Development Agency (SIDA) was launched in Rajasthan to achieve education
for all through peoples' mobilisation and their participation. Lok Jumbish
Project (LJP) has set-up innovative management structures incorporating the
principles of decentralisation and delegation of authority as well as building
partnership with local communities and the voluntary sectors, intensive
community mobilisation, and schools mapping, processing as well as
development of innovative design for community centre school buildings
programme.
The first phase of the project was implemented during June 1992 to June
1994 at a cost of Rs 14.03 crore shared between SIDA, Government of India
and Government of Rajasthan in the ratio 3:2:1. The second phase of the
project was implemented between 1 July 1994 to June 1998 and subsequently
extended up to 31 December 1999. The expenditure incurred during this phase
was Rs 96.92 crore. The third phase was from 1 July 1999 to 30 June 2004.
The project received assistance from Department for International Development
(DFID), UK during this phase and the total project cost was Rs 400 crore.
The ratio of sharing expenditure between the three partners remained the
same as during the first and second phase. An amount of Rs 360.51 crore
was released against DFID and Government of India share.
At the end of Phase-II of the Lok Jumbish Project 75 blocks were covered
with 305 dusters taken-up for operationalisation and 8,675 villages in which
environment building was done. However, in Phase-Ill, 102 blocks were
covered with 561 clusters taken-up for operationalisation and 14,559 villages
in which environment building was done. The districts covered under this
project were Ajmer, Banswara, Barmer, Bikaner, Chittogarh, Dungarpur,
Jaisalmer, Jalore, Jodhpur, Pali, Udaipur, Baran, and Rajasamand.
The Fifth Joint Review Mission ORM) visited Rajasthan in January 2004,
to undertake a review and appreciated the progress of the project. The JRM
recommended that the good processes and practices of LJP be mainstreamed
after integration of the project in SSA.
SHIKSHA KARMI PROJECI'
The Shiksha Karmi Project (SKP) aims at universalisation and qualitative
improvement of primary education in remote and socio-economically backward
villages in Rajasthan with primary attention given to girls. The project
identifies teacher absenteeism as a major obstacle in achieving the goal of
Universalisation of Elementary Education (VEE).

20R

India 2005

The projpcl at present covers 3,092 villages in 150 blocks in Rajasthan.

The Project providl'!'i primary education to 2.74 lakh children in day schools
and Prehar Pathshalas (PPs) (schools of convenient timings). Thl' experience
of SKI' demonstrates that the motivation of Shiksha Karmis working in
difficult conditions can be sustained over a long period of time by recurrent
and effective training; sensitive nurturing; communi tv support; regular
participat(lrv rt'vit'w; and problem solving approach. The success of SKP has
attrdctl'd national and international rt'cognition.
I'lta"e I LInd II of Shiksha Karmi Project (SK!') was implementl'd with
dssistcllll'l' from Swedish International Development Cooperation Agl'ncy
(SIDA) from 19R7 to ]91.)4 and 1944 tn 1Y9H respl'ctivt.'fy.
11ll'

Phasl' III of thl' projl'ct was implemented from 1 July 1999 to 30 June
2001 with financial assistancl' from Departml'nt for International Development
(Dill)) 01 UK and Government of RaJasthan on ')0:50 basis. A proposal for
the ('Xll'll"ion of Phase III of thl' projl'ct for a further of two years, i.l'., from
1 Jllly 2()(J:\ to 3() JUIl\' 2()O:; is under process.

MAHILA SAMAKHYA
The Mahila Samakhva I'rowamn1l' (Education for Wllmen's Equality) started
in 1lJH9 is a nmcrdl' programme for the educatioll dnd l'mpowerment of
women in rural areilS, particularly of womell from socially and economically
marginafis('d groups. It is lwing impk'mt'nted in mOfl' than B,OOO villagl's
in 6() districts of nine states.
.

T111' objl'lti\'l's of the sclll'llll' <lrl' to t'nhanCt.' tl1(' self-image and selfumtidl'llcl' of WOIlIt'Il; to CTt'<lil' an l'1l\'ironnll'nt where women can seek
knowll'dgt' and IlItnrrniltillll which empowers them 10 playa positiw' roll' in
sncid\'; 1<1 "st.tblish <1 dl'cl'ntrdli'il'd ,md participative mode of management;
to ('I1.1hll' A1ahila Sllllgha~ to ,h ti\'l'Iv assess and monitor educational activities
in till' villages; to provide opportuTlitil's for education for women and
adniescl'nt girls and 10 bring about grl'aler participation of women and girls
ill both tonnal dnd non-formal education programml'.
Til,' M,lilild Sangha is till' nodal point where all activities are planned
dilL! which pwvidl'S the SP,H l' where Wollll'n Gill ml'el, be together and discuss
tlwir problpll1s. A group III two or Illlll',' women called Saldli or Sahayaki an'
trained to work ,IS l\lt,llvsts who LKilitdte the formation as wdl as discussions
in thl' Sangha. The funds l'drmOlrked for tlw Sangha Ciln bt' <it'posited in a
Bank / Post OfficI' dccmlllt 'and t';)ll [1(' used collectivt'ly by the women for a
period up to thrl'p yt'clfS. SaiIlH/t>SilllS look after a group of 10 villages and
work as motivators, Sllpptlrtl'rs ,ll1d guides.
JANSHALA PROGRAMME
Janshala (COl-UN) Programme is i1 collaboratiw effort of the Government
of Indid and fiVl' UN agencies _. UND1~ UNICEF, UNESCO, ILO and UNFPA
- to provide programme suppurt t(1 the ongoing efforts towards achieving
[_, EF. /alls/1IIIa, a community bas<'d primilry education programme, aims to

Education

209

make primary ('ducanon mof(' accessible and effective, especially for girls and
children in deprived communities, mar~inalist'd groups, SC/ST /minorities,
working children and children with specific needs. A unique feature of the
lanshala is that it is a block bas('d programme with emphasis on community
participation and deCl'ntralisation. Th(' blocks have been S(>lected on the basis
of different indicators such a!' low female lit{'racy. incidence of child labour,
,md concentration of SC and ST population.
UNDP, UNICEF and UNFI'A have committed a contribution of US $ 20
million for the programme, while UNESCO and liD have offl'red technical
know-how. This is tht' first-!'wr programme in the world where five UN
a!~(,JlCies have collahorated and pooled resources to support an initiative in
education.
Tht' programme cowrs D9 blocks including 1() cities in 30 districts of
nine states with a total project ollllay of I{s W,1.13 crort'. The programme which
W3;, to conclude on 31 Deceml"lt'r 2002 was extended for two years.

TEACHER EDUCATION
/\.;, enVisaged in the National POlil'V nn Fducation (NPE) and Programnw of
Action (POA) -19Rn, the Centrallv-Sponsored Schemt' of Restructuring and
Rporganisation of Teacher Education was taken up in 191'17 to creah' a viable
JI1stltutional intrastruchJTl', academic ,md lechmcal resource bast' for orientation,
trallling and continuous upgraddtioJl of knowledge, competence and
Iwd,)gogieal skill:- of ~chool teach~r ... 111 the country. The scht'me envisages
setting up of DIETs in pach district of tht' country to provide academic and
re..,nur~'l' support to eleml'ntarv grade tt'(lch('rs and non-formal adult education
instructors.
The Central C;overnml'nt provides financial assistance to States/UTs for
..... Uing up of DIETs/CIEs/IASEs. DIETs an' l'stablished by upgrading existing
Ficmentary Teacher Education Institutions (EIEls) or by setting up new
institutions. The land for the purpose is provided by State Governments freeof-co:-t. CTEs/lASEs are sct-up by upgrading existing Secondary Teacher
Lducation institutions (STEb) offering H.Ed., courses, and lASEs by upgrading
ColJt')~{'s and University Departments of Education off(>ring M.Ed., courses.
4YB DIETs, 86 CTEs and 31'1 lASEs haw been established so far under the
~dlt.'me. The norms for Central assistance for non-recurring and recurring
grant was n'vised in April 2003 with the approval of the Cabinet.
The Planning Commission has agreed in principll) (or continuation of
the Centrally-Sponsored Scheme on Teacher Education and allocated Rs 950
lTOTl' for tht> entire Plan period and Rs 207 crore has be<>n allocated for the
year 2004-05. On the recommendation of til(> Working Group on Tenth Plan
the scheme has been revised on 12 January 2004 after approval by EFC. During
2004-05, it is expected that the implementatiun of the scheme will be at the
desired level.

NATIONAL COUNCIL FOR TEACHER EDUCATION

The National Council for Teacher Education (NCTE) was established in

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August 1995 with a view to achieve planned and co-ordinated development

of teacher education system throughout the country and for regulation and
proper maintenance of norms and standards of teacher education. Some of
the major functions of NCTE are laying down norms for various teacher
education courses, recognition of teacher education institutions, laying down
guidelines in respect of minimum qualifications for appointment of teachers,
surveys and studies, research and innovations, prevention of commercialisation
of teacher education, etc.
Four Regional Committees of the Council have been set-up at ]aipur,
Bangalore, Bhubaneswar, and Bhopal for Northern, Southern, Eastern and
Western regions rt:$pectively. These Regional Committees primarily look after
recognition of teacher training institutions in their respective regions and are
empowered to grant permission to thest:' institutions to run teacher training
courses as per the provisions of the National Council for Teacher Education
Act. As on 31 March 2004, 2,995 teacher training institutions offering 3,329
courses have been f('cognised by NCTE with an approval intake of 2,56,477
teacher trainees.
NATIONAL BAL BHAVAN

National Bal Bhavan (NBB), New Delhi is an autonomous body fully funded
by the Ministry of Human Resource Development which was established for
children in the age group of 5-16 years. Objectives of the National Bal Bhavan
are to enhance the creative potential of children and to inculcate in them
scientific temper and a spirit to challenge, experiment, innovate and create.
National Bal Bhavan was founded by Pt. Jawahar Lal Nehru in 1956.
Since its beginning the National Bal Bhavan has grown substantially and
the Hal Hhavan movement has gained momentum over the years. At present
there are 73 Bal Bhavans across the country which are affiliated to the NBS.
With the objective of reaching out to the maximum number of children
who calmot avail the facilities provided by the NBB at the headquarters, 52
Bal Bhavan Kendras have been opened in different localities of Delhi. These
Kendras cater to the under-privileged children living in slum areas, rural
area:-;, and re-settlement colonies, and are manned by part-time instructors.
Objectives of National Bal Bhavan are achieved through many activities
encompassing a wide spectrum of subjects like science, creative arts and crafts,
performing arts, photography, tailoring / stitching, games, publication related
activities, etc. The National Training Resource Centre (NTRC) is a resourO'
centre for imparting training to teachers and teacher trainers in creatiw
activities organised by the NBB. NTRC imparts training to primary teachers
and Trained Graduate Teachers.

The Bal Shree scheme of National Bal Bhavan honours exceptionally

talented children in the creative arts and is awarded after a rigorous process
of selection at the zonal and national levels. National Bal Bhavan, besides
organising its own local and national level programmes, also takes part in
Cultural Exchange Programmes with other Countries.

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QUALITY IMPROVEMENT IN SCHOOLS

During the Tenth Plan, it has been decided to introduce a composite Centrally
Sponsored Scheme "Quality Improvement in Schools" by inter-alia converging
the following components: (i) National Population Education Project; (ii)
Environmental Orientation to School Education; (iii) Improvement of Science
Education in Schools; and (iv) Promotion of Yoga in Schools.
The proposal is under consideration at present. A brief of the components
are:
NATIONAL POPULATION EDUCATION PROJECT
1111.' National Population Education Project (NPEP) was launched in April
19HO with a view to institutionalise population education in the school
education system. This was an externally-aided project, which was fully
funded by United Nations Population Fund. This project is also being
implemented in Higher and Adult education sector. The Fourth cycle of the
project was completed in December 2002. In view of it<; achievements and
significance, Government decided to continue it in the Tenth Five-Year Plan
with the objective to focus on the integration of the elements of the
reconceptualised framework of population education.
However, for the Tenth Plan period beginning from 2003-04 a budgeting
support of Rs 7.29 croce has been provided by UNFPA for undertaking the
in-school adolescent programmes through NCERT.
ENVIRONMENTAL ORIENTATION TO SCHOOL EDUCATION
The National Policy on Education (NPE)-1986 provides that the protection of
environment is a value which, along with certain other values, must form
an integral part of curricula at all stages of education. Centrally-sponsored
Scheme "Environment Orientation to School Education" was initiated in 198889. The scheme envisages assistance to voluntary agencies for conduct of
experimental and innovative programmes aimed at promoting integration of
educational programmes in schools with local environmental conditions.
IMPROVEMENT OF SCIENCE EDUCATION IN SCHOOOLS
To improve the quality of science education and to promote the scientific
temper a Centrally-sponsored Scheme; "Improvement of Science Education
in Schools" was initiated during 1987-88. Under the scheme financial
assistance was being provided to States / UTs and voluntary agencies: While
voluntary agencies were provided assistance for conducting experimental and
innovative programmes States/Union Territories were assisted for provision
of science kits to Upper Primary Schools and setting-up / up-gradation of
science laboratories in Secondary / Senior Secondary Schools, etc.
One of the important components of this scheme was participation of
Indian Students at school level in the International Science Olympiads, viz.,
International Mathematical Olympiad (since 1989), International Physics

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Olympiad (since 19(8), International Chemistry Olympiad (since 1999) and

International Biology Olympiad (since 2000).
During 2003-04, three voluntary organisations were provided financial
assistance to the extent to Rs 124.25 lakh under this Scheme. In addition, four
States/ UTs were provided financial assistance for purchase of various
components to the extent of Rs 559 lakh. Indian delegations to the above
Science Olympiads won five Gold, four Silver and two bronze medals during
2003-04.

INTRODUCTION OF YOGA IN SCHOOLS

A Centrally-Sponsored Scheme for Introduction of Yoga in Schools was
launched in 1989-90. The scheme provided for Central assistance for expenditure
on training of teachers, building up infrastructure, i.e., hostel building for yoga
trainees and furnishing grant and upgrading library facilities. This scheme
is being implemented through the concerned Education Departments of the
States / UTs and NGOs.
During the financial year 2003-04, ten voluntary organisations were
provided financial assistance to the tune of Rs 29.02 lakh in plan side and
Rs 65 lakh to one agency on non-plan side.

BOARDING AND HOSTEL FACILITIES FOR GIRL STUDENTS

Under the scheme financial assistance is being given to eligible voluntary
organisations to improve the enrolment of adolescent girls belonging to rural
areas and weaker sections. Preference in providing assistance is given to
hostels located in educationally backward districts, particularly those
predominantly inhabited by SCs/STs and educationally backward minorities.
The scheme is now operative under the new scheme "Access with Equity".
To address the issue of Access with Equity in providing education to
girls at the secondary stage, the existing scheme of Strengthening of Boarding
and Hostel Facilities for Girl Students is being revised by incorporating the
following: It is proposed to give financial assistance to hostels run by eligible
voluntary organisations by giving following types of grants: (a) Rs 7,500 per
boarder from the existing Rs 10,000 keeping in view the rates of Jawahar
Navodaya Vidyalaya which is Rs 5,000 as mess charges for nine months.
Maximum number of students is restricted to 150. (b) (t will include scttingup new St'Condary schools and upgradation of existing upper primary schools
to secondary / higher secondary level. Grant of Rs 25 lakh for construction of
20 rooms @ R.. 1.25 lakh per room. Grant of Rs 10 lakh for infrastructure
facilities like furnishing classrooms, laboratories, equipment, etc. A recurring
honorarium grant of Rs 3 lakh per school for three years from the second
year of release of grant to meet expenses of teachers on contract basis and
maintenanc(' grant @ Rs 2 lakh per school for a period not exceeding three
years from the fourth year of completion of the building of the school.

NAVODAYA VIDYALAYAS
The National Policy on Education-1986 envisaged setting-up of model schools,

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one in each District of the Country. Accordingly, a scheme was formulated

under which it was decided to set-up co-e<iucational residential schools (now
cailed Jawahar Navodaya Vidyalayas). Navodaya Vidyalayas are fully
residential co-t.'Ciucational institutions providing education up to senior
secondary stage. The scheme which started with onJy two schools on
experimental basis in 1985-86, has now grown to 506 schools covering as many
districts in 34 States/UTs, with over 1.5H lakh students on rolls as on 31 March
2004. About 30,000 new students are admitted every year. The Vidyalayas
envisaged a new style of growth with identification and development of
talented, bright and gifted children predominantly from rural areas who may
otherwise be denied good educational opportunities. Efforts are made to
ensure that at least 33 per cent of the students enrolled are girls. Migration
is a unique feature of Navodaya Vidyalaya scheme whereby 30 per cent of
students of Class IX from a Vidyalaya located in Hindi Speaking area spend
one academic year in a Vidyalaya located in non-Hindi speaking area and
pice-versa to promote national integration through understanding of the
diversity and plurality of country's people, their language and culture.
KENDRIYA VIDYALAYA SANGATHAN

The Government approved the scheme of Kcndriya Vidyalaya Sanxathan in

19h2, on the recommendations of tht' Second Pay Commission. Initially, 20
regimental schools in different States were taken over as Central Schools. In
1%5, an Autonomous Body called Kt'lldriya Vidyaillya Sangathan was
('stablished with the primary objective of setting-up and monitoring Kendriya
Vidyalayas to cater to the educational needs of the children of transferable
Cl'ntral Government Employees including Defence Personnel and ParaMilitary forces by providing common programme of education. At present,
there are 923 Kcndriya Vidyalayas (as on 1 April 2(04) out of which one each
is in Kathmandu and Moscow. All Kendriya Vidyalayas follow a uniform
syllabus.

SECONDARY EDUCATION
NATIONAL COUNCIL OF EDUCATIONAL RESEARCH AND TRAINING

The National Council of Educational Research and Training (NCERT) is an

ap~x resource organisation set-up in September 1961, with headquarters at
New Delhi. It assIst'> and advises the Central and State governments on
academic matters related to school education. The Council is fully funded by
the Central Government.
The NCERT provides academic and technical support for qualitative
improvement of school t!ducation through its constituent units, namely,
National Institute of Education (NIE), New Delhi, Central Institute of
Educational Technology (CIET), New Delhi, Pandit Sunderlal Sharma Central
Institute of Vocational Education (PSSCIVE), Bhopal and Regional Institutes
of Education at Ajmer, Bhopal, Bhubaneswar, Mysore and Shillong. The
Council conducts, aids, promotes and coordinates research in school education

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and teacher education, organises pre-service and in-service training programmes

for teachers, extension services for institutions; develops and experiments with
improved educational techniques, practices and innovations; collects, compiles,
processes and disseminates educational information; assists the States/UTs in
developing and implementing programmes for qualitative improvement of
school education; collaborates with international organisations; serves as the
academic secretariat of the National Development Group (NDG) for the Asia
and the Pacific Programme of Educational Innovation for Development
(APEID), UNESCO, Bangkok and develops, prints and distributes textual
materials, etc. Recently, NCERT has also set-up a National Resource Centre
for Value Education (NRCVE), a Centre for Special Needs Education, National
Centre for Computer Extended Education I Multimedia Laboratory and a
centre of UNESCO's International Project on Technical and Vocational Education
(UNEVOC).
Recently, NCERT has launched rational as well as emperical evaluation
of its new generation textbooks developed as per National Curriculum
Framework for School Education-2000. It has also developed Corriculum
Framework for Teacher Education-2004, model syllabus of Environmental
Education for all stages of school education as per the verdict of Hon'ble
Supreme Court of India, Compendium of Educational statistics, Teacher
Empowerment, and Encyclopedia of Indian Education, etc.
NATIONAL TALENT SEARCH SCHEME
The National Council of Educational Research and Training started the
National Science Talent Search Scheme in 1963 to identify brilliant students
of Class X as a pilot project for the Union Territory of Delhi. It was extended
throughout the country during 1964 with a total number of 350 scholarships.
Tht' scheme undersent various changes over the years and was renamed as
'National Talent Search Scheme' with effect from 1977. The present number
of scholarships is 1,000, which include 150 for SC and 75 for ST category.
Tht' steps have been taken to nurture the talent of NTS scholars.

UNIVERSITY AND HIGHER EDUCATION

At present, there are 306 university-level institutions in India (including 18
Central Universities, 186 State Universities, five Institutions established under
State Legislature Act, 89 Deemed Universities and 13 Institutes of national
importance). Of these, 38 Institutions provide education in agriculture
(including forestry, dairy, fisheries and veterinary science), 21 in medicine
(including Ayurveda), 44 in engineering and technology, and four in Information
Technology, four in Legal Studies. The number of Open Universities is nine
and that of Women Universities is five. The total enrolment of students in
universities and colleges is 88 lakh while the number of teachers is more than
four lakh.

UNIVERSITY GRANTS COMMISSION

The University Grants Commission (UGC) was established in 1956 to take,

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all such steps as it may think fit for the promotion and coordination of
university education and for the determination and maintenance of standards
of teaching, examination, and research in universities. The vec serves as a
coordinating body between the Union and State Governments and the
institutions of higher learning. It also acts as an advisory body to these
Governments and institutions on issues relating to higher education. To fulfil
its objectives, the Commission can enquire, among other things, into the
financial needs of the universities; allocate and disburse grants to universities
and colleges for the maintenance and devdopment; establish and maintain
common services and facilities; recommend measures for improvement of
university education; make rules and regulations consistent with the Act, and
give advice on allocation of grants and establishment of new universities. The
Commission consists of the Chairman, Vice-Chairman and 10 other Members
appointed by the Central Government. It has its Regional Offices at Hyderabad,
I'tille" Bhopal, Kolkata, Guwahati and Bangalore. The Northern Regional
Office which was earlie~ located at Ghaziabad, has now been merged with
the VGC Head Office located at New Delhi and renamed as Northern Region
Colleges Bureau.

AUTONOMOUS RESEARCH ORGANISATIONS

The Indian Council of Historical Research (ICHR), New Delhi, set-up in 1972,
fl'vicws the progress of historical research and encourages scientific writing
of history. It operates research projects, finances research projects by individual
scholars, awards fellowships and undertakes publication and translation work.
The Indian Council of Philosophical Research (lCPR), functioning from
1977 with offices in New Delhi and Lucknow, reviews the progress, sponsors
or assists projects and programmes of research in philosophy, and gives
financial assistance to institutions and individuals to conduct research in
philosophy and allied diSciplines.
The Indian Institute of Advanced Study (lIAS), Shimla set up in 1965
is a residential centre for advanced research on humanities, social sciences
and natural sciences. It is a community of scholars engaged in exploring new
frontiers of knowledge aimed at conceptual development and offering inter~
disciplinary perspectives on questions of contemporary relevance.
The Indian Council of Social Science Research (lCSSR), New Delhi, is
an autonomous body for promoting and coordinating social science research.
Its main functions are to review the progress of social science research, give
adVice on research activities in government or outside, sponsor research
programmes and, give grants to institutions and individuals for research in
social sciences.
The National Council of Rural Institutes (NCR!) was set-up in 1995 as
an autonomous organisation fully funded by the Central Government to
promote rural higher education on the lint:l:I of Mahatma Gandhi's revolutionary
ideas on education, consolidate network and develop educational institutions

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and voluntary agencit's in accordanc(' with Gandhian philosophy of education

and, promote research as a tool of social and rural development.

INDIRA GANDHI NATIONAt OPEN UNIVERSITY

The Indira Gandhi National Open University (lGNOU), established in
September 19R5, is responsihle for the introduction and promotion of open
university and distance education system in the educational pattern of the
country ~nd for coordination and determination of standards in such systems.
Tht' ~ajor objectives of the university incJudl' widening access to higher
education to larger segments of the population, organising programmes of
continuing education and initiating special programmes of higher education
for sp<>cific target groups lik(' women, and people living in backward regions
and hill~1 areas, etc.
The IGNOl) provid(':-; an innovative system of univ{'rsit~' level education,
f1pxihlt' and open in f('gard to methods and pan> of learning, combination
of courses, eligihility tor enrolment, age of entry, methods of evaluation, Pte.
The University has adopted an intt-grated multimedia instructional strategy
consisting of print('d materials, audio-visual aids, and teleconft>rencing,
supportt'd hy counselling sessions at a network of studY centres throughout
tfw country. It conducts hoth continuous evaluation as wpll as term-end
examinations.
The IGNOU introduced its programmes in 19R7 and has so far launched
H2 programmes consisting of mon' than 800 courses consisting of Ph.D,
Master's Degree Programml's, Advanced/Post Graduate Diploma, Diploma
Programmes and Certificate Programmes, de During 20m over :i.20 lakh
students Wl're registert'd tor various programml's of study. The UniverSity has
established an extensive stud"nt support servin's network consisting of 4R
fl>gional centres and 1,1 J 9 study centres situated in diffefl'nt parts of the
countrv. leNOU has t:'staolishl'd 269 study centrt'S for womt'n, SC 1ST and
physically challenged perSlll1s. A Distance Education Council, estahlished bv
the University as a statutory authority, is an apex body for coordination and
determination of standards in distance education in the county. On 26 January
20(H, lGNOU launched an education channel-Gyallliarshan which is now a
24-hour channt'1. ICNOU has also launched, in Novembt.'r 20m, FM Radio
Network for providing additional studl~nt support, which is to be expanded
to 40 FM stations in course of time. Thc launch of anotht'r satellite chanm1
for tt'chnological education, \'iz., 'Ekllrl'ya chOlmc/' on 26 January 2003 jr,
another milestone in the growth and development of distance education in
thl' countrv.
At Prt'Sf'Ilt. there are ten other open universities in the country, viz" B.R.
Ambedkar Open University, Hyd('rabad (Andhra Pradesh), Kota Open
University, Kota (Rajasthan), Nillanda Open University, Nalanda (Bihar),
Yashwant Rao Cha"h<m Mahdrashtrd Open University, Nasik (Maharashtra),
Madhya Pradesh Rho; Opl'l1 University, Bhopal (Madhya Pradesh), Ambedkar
Open University, Ahmpdabad (Gujarat), Kamataka State Open University,
Mysort' (Kamataka), Nl'taji SubhilSh Open University, Kolkata (West Bengal),

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217

Riljrishi Tandon Open University, Allahabad (Uttar Pradesh) and Tamil Nadu
State Open University, Chennai (T.N). There are 104 correspondence course
institutions, imparting education through the distance mode in the conventional
system.

TECHNICAL EDUCATION
The Technical Education System in the country covers courses in engineering,
tl'('hnology, management, architecture, pharmacy, etc. The Ministry of Human
Resource Development caters to programmes at undergraduate, postgraduate
and research levels. The tl'chnical education system at the central level
wmprises, among others, the following: a) The All India Council for Technical
Education (AICfE), which is the statutory body for proper planning and
coordinated development of the technical education system; b) Seven Indian
Institutes of Technology (IITs); c) Six Indian Institutes of Management (IIMs);
d) Indian Institute of Science (IlSc), Bangalore; e) Indian Im;titute of Information
Tf'chnology and Management (HITM), Gwalior and Indian Institute of
Information Technology (lUT), Allahabad; and 18 National Institutes of
Tt'chnology (NITs) (converted from RECs with 100 per cent central funding).
A total of 1,%9 degree institutions and 2,475 post-graduate institutions
haw bt.>en approved by AICTE. A National Programme of HRD in IT has been
drawn to meet the emerging need for quality manpower in IT and the related
areas.
An All India Engineering Entrance Examination (AIEEE) has been
launched for admission to engineering, architecture, pharmacy and planning
programmes. Similarly an All India Master of Computer Application Test
(AIMCET) was launched for admission to MeA programme and guidelinies
for admission to Master of Business Administration (MBA)/PGDM were
issued.
Technical Education Quality Improvement Programme (TEQIP) has been
launched with the assistance of World Bank aims at upscaling and supporting
of ongoing efforts of the Government in improving quality of technical
education. The Programme has been under implementation as a centrallycoordinated multi-state long-term programme from March 2003.
The Government has decided to set-up two Institutes of Information
Technology Design and Manufacturing at Kanchipuram and Jabalpur at a total
project cost of Rs 114.60 crore for both the institutions during Tenth Plan.

ADULT EDUCATION
NATIONAL LITERACY MISSION
The National Literacy Mission (NLM) set-up in May 1988 aims to attain a
sustainable threshold level of 75 per cent literacy by 2007 by imparting
functional literacy to non-literates in the age-group of 15-35 years, which is
the productive and reproductive age-group and constitutes a major segment
of the work foroe. Apart from pre-determined levels of reading, writing and
numeracy with comprehension, functional literacy which includes imbibing

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values of national integration, conservation of environment, women's equality,

observance of small family norms, etc. Literacy, as enunciated in NLM, is not
an end in itself but has to be an active and potent instrument of change
ensuring achievement of these social objectives and creation of a learning
socil'ty. The acquisition of functional literacy results in empowerment and a
definite improvement in the quality of life.
The Total Literacy Campaign (TLe) is the principal strategy of NLM
for eradication of illiteracy. These campaigns are - area-specific, time-bound,
participative, cost-effective and outcome oriented. These are implemented
through Zilla Saksharata Samitis (district level literacy committees) as
independent and autonomous bodies, having due representation of all sections
of socidy. Apart from imparting functional literacy, TLe also disseminates a
'basket' of other socially relevant messages such as enrolment and retention
of children in schools, immunisation, propagation of small family norms,
women's equality and empowerment, peace and communal harmony, etc.
These literacy campaigns generated a demand for primary education.
The Continuing Education Scheme provides a learning continuum to the
efforts of Total Literacy and Post-Literacy Programmes in the country. The
main thrust is on providing further learning opportunities to nco-literates by
setting-up of Continuing Education Centres (CECs) which provide areaspecific, need-based opportunities for basic literacy, upgradation of literacy
skills, pursuit of alternative educational programmes, vocational skills and
also promote social and occupational development. The programmes of
Residual llliteracy are also being taken up to address the requirements of
geographically remote regions and segments of population requiring special
focus particularly SCsi STsl Women.
Non-Governmental Organisations: The National Literacy Mission (NLM)
fully recognises the vast potential of NGOs in furthering its objectives and
has taken measures to strengthen its partnership with NGOs and has assigned
them an active promotional role in the literacy movement. Apart from
imparting literacy, the NGOs provide academic and technical resource support
through experimental and innovative programmes.
The State Resource Centres (SRCs) managed by NGOs provide academic
and technical resource support in the form of training material preparation,
extension activities, innovative projects, research studies and evaluation, etc.
At present, there are 26 SRCs.
Special interventions for female literacy: As per Census 2001, 45 districts
in U.P., Bihar, Iharkhand and Orissa were identified where the female literacy
is below 30 per cent. These districts have a sizeable population of women
from weaker sections and minorities.
In U.P., 97 NGOs were involved in an Accelerated Programme for Female
Literacy. Approximately, 27 Jakh women were covered. The results of the
programme were very encouraging and achievements as high as 95 per cent
were obtained during external evaluation.

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In Bihar, the literacy programme has focused on involvement of women

volunteers including a sizeable number from the minorities. Approximately,
2.0 lakh women in 15-35 age group attended literacy classes in about 2.5 lakh
centres in 13 districts. In Jharkhand, a speCial programme for improving
female literacy is being implemented in five districts covering about five lakh
women.

In Orissa, approximately 9.10 lakh women are being made literate in nine
lo\-v-female literacy districts, with the help of 117 NGOs.

Jan Shikshan Sansthan : The objective of the Jan Shikshan Sansthans 055)
is educational, vocational and occupational development of the socioeconomically backward and educationally disadvantaged groups of urbani
rural population particularly neo-literates, semi-literates, SCs, STs, Women and
girls, slum dwellers, migrant workers, etc. At present, there are 140 JSSs in
the country. More than 250 types of courses and activities are offered by these
institutions. About two lakh persons are given vocational training annually.
Of these, over 75 per cent arl' women.
Directorate of Adult Education: The Central Directorate of Adult Education
provides academic and technical resource support to National Literacy
Mission. It has also been playing an important role in the development of
il network of resource support particularly production of media material and
harneSSing of all kinds of media for furtherance of the objectives of NLM.
Achievements: (i) The literacy rate in 200] recorded at 65.38 per cent as
against 52.21 per cent in 1991. The 13.17 percentage points increase in the
literacy rate during the period is the highest increase in any decade. (ii) 108.42
million persons made literate as on 31 March 2003. (iii) The rate of growth
is more in rural areas than in urban areas. (iv) The gap in male-female literacy
rate decreased from 24.84 per cent in 1991 to 21.70 per cent in 2001. (v) Female
literacy increased by 14.8 per cent, i.e., from 39.3 per cent to 54.16 per cent
whereas male literacy increased by 11.72 per cent, i.e., from 64.1 per cent to
75 per cent during the last decade. (vi) Gender equity and women's
empowerment is also visible as about 60 per cent of participants and
beneficiaries were women. (vii) The population in 7+ age group increased by
171.6 million while 203.6 million additional persons became literate during
1991-2001. (ix) In all States and Union Territories, the male literacy rate is
now over 60 per cent. Kerala recorded .the highest literacy rate of 90.92 per
cent and Bihar the lowest at 47.53 per cent. (x) Significant decline in absolute
number of non-literates from 328.88 million in 1991 to 296 million. in 2001.
(xi) Out of the total 600 districts in the country, 596 districts were covered
by NLM under literacy programme.
EXTERNAL SCHOLARSHIP
The Government provides scholarships to Indian scholars for Post-Graduate /
Research/Post-Doctoral studies abroad on the basis of offers received from
foreign Governments under the various Cultural/ Educational Exchange
Programmes. The amount and other facilities provided by foreign government

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India 2005

varies from country to country and time to time. 110 scholarships were
awarded during the year 2003-04 under various Cultural Exchangt'
Programmes I Educational Exchange Programmes.

PROMOTION OF LANGUAGES
Language being the most important medium of communication and education
its development occupies an important place in the National Policy on
Education and Programl e of Action. Therefore, the promotion and development
of Hindi and other Languages listed in the Constitution of India haw received
due attention.
HINDI
In order to assist non-Hindi speaking States/ UTs to effectively implt'ment tht'
three-language formula, support for provision of facilities for teaching of
Hindi in these States I UTs is provided by sanctioning financial assistance for
appointment of Hindi teachers in schools under a C(>ntrally-sponsored
scheme. Assistance is also given to Voluntary Organisations for enabling them
to hold Hindi-teaching classes. Through the Kendriya Hindi Sansthan, the
Government promotes development of improved methodology for teaching
Hindi to non-Hindi speaking students. A spt'cial course for teaching Hindi
to foreigners is being conducted by tht' Sansthan.
The Central Hindi Directorate runs programmes relating to purchase and
publication of books and its free distribution to non-Hindi speaking States
and to Indian missions. It extends financial support of NGOs engaged in
development and promotion of Hindi.
The Commission for Scientific and Technical Terminology, New Delhi,
prepares and publishes definitional dictionaries and terminology in various
disciplines in Hindi and in other languages.
MODERN INDIAN LANGUAGES
Financial assistance is given to voluntary organisations and individuals to
bring out publications like encyclopaedias, dictionaries, books of knowledge,
original writings on linguistic, literacy, indologicaJ, social anthropological and
cultural themes, critical editions of old manuscripts, etc., for the development
of Modem Indian Languages. States are given special help for the production
of University-level books in regional languages. The National Council for
Promotion of Urdu Language (NCPUL) has been functioning since April 1996
as an autonomous body for the promotion of Urdu language and also Arabic
and Persian languages. One of the outstanding areas of operation of NepVL
has been transfer of Information of Urdu speaking population into productive
human resource and making them part of the employable technological
workforce in the emerging information technological scenario and penetration
of computer education to the grass-root level in minority concentration block..,.
The Government has set-up National Council for Promotion of Sindhi
Language, a fully-funded autonomous organisation for promotion and
development of the Sindhi Language.

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The Government also provides fadliti<"S for study of all Indian languages.
this the Central Institute of Indian Languages (CIIL), Mysore conducts
research in th{' areas of language analysis, language pedagogy, language
ttchnology and language use. It runs Regional Language Centres to help in
meeting the demand for training of teachers 10 implement the three-language
fonnuJa. The Regional Language Centre also provides training for mother
tongue teachers in different Indian languages at various levels.
~or

In the Tenth Fiw-Year Plan, two major Schemt's relating to minorities

have been clubbed together to form the 'Area Intensive and Madarsa
Modernisation Progrilmme (AIMMP), in a unified programme, i.e., Area
Intensive Programme for EducationaJly Backward Minorities and the Scheme
ot hnancial AssistilJ1('l' for the Modernisiltion of Madarsa Education.
ENGLISH AND FOREIGN LANGUAGES
The Central Institute of English and Foreign Languages, Hyderabad, a fully
hmded autonomous organisation, inh'r-alia, conducts training programmes for
school teachers, develops t{'aching materials, implements/monitors the scheme
of E~lish Language Teaching Institut{s and provides financial assistance for
publication, purchase of books in the English language.
STRENGTHENING OF CULTURE AND VALUES IN EDUCATION
The National Policy on Education, 19R(i (revised in 1992) and its Programme
of Action-1992 has laid considerable E>mphasis on value education by

highlighting the need to make education a forceful tool for the cultivation
of social and moral values,

To fulfil the objectives of the National Policy on Education, a Central

St>ctor Scheme of Assistann' for Strengthening of Culture and Values in
Education is being implemented. Under this Scheme, financial assistance is
given to Governmental and non-Governmental organisations, Panchayati Raj
Institutions, etc., to tht' extent of 100 per cent of grant for the project proposals
approved subject to a ceiling of Rs ten lakh for strengthening cultural and
value education from pre-primary education system to higher education
including technical and management education.

SANSKRIT DIVISION
Sanskrit has played a vital role in the development of all Indian Languages
and in the preservation of the cultural heritage of India. The Government of
India gives 100 per cent financial assistance through State Governments for
: a) eminent Sanskrit Scholars in indigent circumstances; b) Modernisation of
Sanskrit Pathshalas; c) Providing facilities for teaching Sanskrit in Highl
Higher Secondary Schools; d) Scholarships to students studying Sanskrit in
High and Higher Secondary Schools; e) Various schemes for the promotion
of Sanskrit; and ) improving the methodology of teaching Sanskrit in schools,
Sanskrit Colleges/Vidyapeeths. Presently the Scheme is under revision.

A Sanskrit Net has been launched under BhasIuz MondJami.

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India 2005

Presidential Awards are given to eminent Scholars in Sanskrit, Pali,

Arabic, and Persian in recognition of their outstanding contribution towards
the propagation of the language, every year on Independence Day.
The Maharshi Sandipani Rashtriya Veda Vidya Prathisthan is an
autonomous organisation which promotes: a) Preservation, conservation and
development of the oral tradition of Vedic studies; b) Study of the Vedas
through Pathashalas as well as through other means and institutions; c)
Creation and promotion of research facilities; d) Creation of infrastructure and
other conditions for the collection of information and storage of relevant
material.
Rashtriya Sanskrit Sansthan : Rashtriya San"krit Sansthan, New Delhi is an
autonomous organisation established by the Government in 1970. It is a nodal
agency for the propagation, promotion and development of Sanskrit Education
in the country. It is fully funded by the Government. Rashtriya Sanskrit
Sansthan has been granted the status of a Deemed to be University.
Rashtriya Sanskrit Vidyapeeth : Rashtriya Sanskrit Vidyapeetha, Tirupati,
provides courses of study from Prak Shasti (Intermediate) to Vidya Vardhi
(Ph.D.). The Vidyapeetha has upgraded the Department of Pedagogy 'to an
Institute of Advanced Studies in Education (lASE).
Shri Lal Bahadur Shastri Rashtriya Sanskrit Vidyapeeth : Shri Lal Bahadur
Shastri Rashtriya Sanskrit Vidyapeeth, New Delhi provides courses of study
from Shastri to Vidya Vachllspti (D. Lit.). From 1997-98 the Vidyapeeth started
diploma in vedic and refresher courses. Two degrees, namely, Vidya Vardhi
(Ph.D) and Manad Upaadhi (Honorary D.Lit). are also being offered by the
Vidyapeeth.

BOOK PROMOTION
NATIONAL BOOK TRUST, INDIA

The National Book Trust, India an autonomous organisation was established

in 1957. The activities of the NBT are: (i) publishing; (ii) promotion of books
and reading; (iii) promotion of Indian books abroad; (iv) assistance to authors
and publishers and (v) promotion of children's literature. It produces books
in Hindi, English and fiftet>n other major Indian languages under its various
series and in Braille. Every alternate year, NBT organises the World Book Fair
in New Delhi, which is the largest book fair in Asia and Africa. The Trust
also observes 14 - 20 November every year as National Book Week.
WORLD BOOK CAPITAL

New Delhi, the capital of India has been declared as the World Book Capital
during 2003. UNESCO, the International Publishers Association and a number
of other books-related international agencies, which have found India to be
the most suitable country to be given this honour have jointly taken this
decision. New Delhi, India has been selected from amongst a large number
of countries. The NBT was designated as the nodal agency to celebrate the
occasion. The World Book Capital was celebrated all over the country and

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223

the year-long celebrations culminated on 23 April 2004, which is also

celebrated as World Book and Copyright Day.
COPY RIGHT
Administering the Copyright Act, 1957, one of the several legislations in India
in the area of Intellectual Property Rights (lPRs), is the responsibility of the

Union Ministry of Human Resource Development. The Copyright Office was

established in January 1958 to regil'ter copyright of works under different
categories. The Central Government also registers copyright societies for doing
coypright business. The Copyright Act was comprehensively amended in 1994
takIng into account the technological developments. The amended Act was
brought into force on 10 May 1995. The Act is further amended in 1999 and
came into force on 15 January 2000. Under the r:oovisions of the Copyright
Art, 1957, the Government constituted a Board to be called the Copyright
Board. The Copyright Board is a quasi-judicial body consisting of a Chairman
and not less than two or more than fourteen other members. The Chairman
and other members of the Board are appointed for a term of five years. The
Copyright Board was reconstituted for a term of five years with effect from
22 February 2001. The Board hears cases regarding rectification of copyright
registration, disputes in respect of assignment of copyright and granting
licences in works withheld from public.
International Standard Book Number (ISBN) : Raja Rammohan Roy
National Agency for ISBN has introduced ISBN System in India in 1985.
National Agency for ISBN has been giving ISBNs to Indian Publishers,
Authors, government organisations such as Universities and Institutions, etc.,
for publishing of books. The ISBN is a unique International Publishers
Identifier Number meant for monographic publications. It is also known as
a short machine-readable identification number that makes a book separate
and easy to access. Since its inception, the National Agency allocated 8,531
prefixes to different publishers in different categories, which covers the period
up to May 2004.
Intellectual Property Education, Research and Public Outreach: During the
Ninth Plan period, two Plan Schemes, namely, (i) Scheme for Financial
Assistance on Intellectual Property Right Studies and (ii) Scheme of Organising
Seminars and Workshops on Copyright Matters were introduced for
implementation in August 1998. The Scheme for Financial Assistance on
Intellectual Property Rights Studies was introduced with an aim of creating
general awareness about IPR matters among academic community and
encouraging study of Intellectual Property Rights (IPRs) in the universities
and other recognised institutions, etc. The Scheme of organising seminars and
workshops on copyright matters was introduced for creating public awareness
about copyright-related issues, training of enforcement personnel, etc. Both
the schemes were merged into a single scheme-"Scheme of Intellectual
Property Education. Research and Public Outreach (IPERPOt together with
another Plan Scheme, namely, Financial Assistance on wro Studies, in the
Tenth Plan.

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India 2005

Through these schemes, several Universities, Educational Institutions

and NGOs in the field are provided assistance every year to conduct research,
seminars, studies, hold conferences, establish IPR Chairs and Depositories.
Copyright Enforcement in India: The Indian Copyright Act, 1957, provide~
penalties for the offences committed under the Copyright Act and empowers
the police to take necessary action. The actual enforcement of the law is the
concern of the State Governments. However, during the last few years, the
Central Government has taken various steps to improve the enforcement of
the Copyright Act to curb piracy. These measures include the setting-up of
a Copyright Enforcement Advisory Council (CEAC), which has as its members
from all concerned departments and representatives of industry to regularly
review the implementation of the Copyright Act including the provisions
regarding anti-piracy. Several other measures taken by the Central Government
include, persuading the State Governments for: (i) the setting-up of Special
Cells in State Governments for enforcement of Copyright Laws; (ii) appointment
of nodal officers in the States for facilitating proper coordination between the
industry organisations and enforcement agencies; (iii) holding of seminars/
workshops, etc., for sensitising the public about Copyright Laws; (iv)
Collective Administration by Copyright Societies and (v) Holding of Conference
of Nodal Officers.
Cooperation with WIPO: India is a member of the World Intellectual
Property Organisation (WIPO), a specialised agency of the United Nations
which deals with copyright and other intellectual property rights and plays
an important role in all its deliberations.
An annual contribution of R<; 40 lakh is earmarked as a contribution to
WIPO, subject to foreign exchange rate fluctuations.
General Agreement on 'Trade in Services (GATS): The last round of General
Agn.>ement on Tariffs and Trade (GA'IT) in 19'i4 gave rise to multilateral
agreement on Trade under World Trade Organisation (WTO). Prior to
emergence of WTO, there was no multilateral agreement on services. WTO
came into existence on 1 January 1995. The next round negotiations in 1996
led to comprehensive agreement on international trade in services. The
objective of the agreement is progressive liberalisation of trade in services.
It is to provide secure and more open market in services in similar manner
as GAIT has done for trade in goods. Education is one of the twelve services,
which are to be negotiated under the General Agreement on Trade in Services
(GATS), Education has been divided into following five categories for the
purposes on negotiations: Higher Education. Secondary Education, Primary
Education. Adult Education. and other Education.
The GATS prescribes the following four modes of Trade in Services
including Education Services: (i) Cross-Bonier Supply of a service includes
any type of course that is provided through d.istanc:E education or the internet,
any type of testing service, and educational materials which can C1'068 national
boundaries; (ii) Consumption Abroad mainly involves the education of
foreign students and is the most common form of trade in educational service;

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225

(iii) Commercial Presence refers to the actual presence of foreign investors

in a host country. This would include foreign universities setting-up c"urses
or entire institutions in another country; and (iv) Presence of Natural Persons
refers to the ability of people t) move between countries to provide
educational services.
No 'Request' or 'Offer' has been made so far for Education Services.
MINORITY EDUCATION
The National Policy on Education, 1986, updated in 1992 envisages paying
greater attention to the education of the educationally backward minorities
in the interest of equity and social justice. In pursuance of the revised
Programme of Action (POA) 1992, two new Centrally-sponsored schemes, i.e.,
(i) Scheme of Area-Intensive Programme for Educationally Backward Minorities;
and (ii) Scheme of Financial Assistance for Modernisation of Madarsa
Education were launched during 1993-94.
Over a time, it has been felt that all these schemes need to be
implemented in an integrated way so as to have wider coverage, greater thrust
and visibility of minority education programmes. In th' Tenth Plan the
aforesaid two schemes have been merged to form the 'Area-Intensive and
Madarsa Modernisation Programme.
INDIAN NATIONAL COMMISSION FOR CO-OPERATION WITH
UNESCO
India has been a member of the United Nations' Educational, Scientific and
Cultural Organisation (UNESCO) since 1946. The Government set-up an
interim Indian National Commission for Cooperation with UNESCO (INeCU)
in 1949, which was later put on a permanent footing in 1951. The Commission
consists of five Sub-Commissions namely, Education, Natural Science, Social
Sciences, Culture and Communication.
The main objective of the Commission is to advise the Government in
matters falling in the domain of UNESCO and to play a role in UNESCO's
work, particularly in the formulation and execution of its programmes. The
Minister for Human Resource Development is the President of the Commission
and the Secretary of the Government of India in the Department of Secondary
and Higher Education is its Secretary General. The membership of the
COmmission is of two categories; (i) Individual and (ii) Institutional Members
distributed among its five Sub-Commissions.
The National Commission acts as an advisory, coordinating and llaison
agency at the national level in respect of all matters within the competence
of UNESCO. It also collaborates with the National Commissions of the Region
and with UNESCO's Regional Offices, for fostering regional, sub-regional and
bilateral co-operation in education, science, culture and information.

11

Energy

ENERGY is an essential input for economic development and improving the

quality of life. Development of conventional forms of energy for meeting the
growing energy needs of society at a reasonable cost is the responsibility of
the Government. Development and promotion of non-conventional/alternate /
IWW and renewable sources of energy such as solar, wind and bill-energy, etc.,
are also getting sustained attention. Nuclear energy development is being
geared up to contribute significantly to the overall energy availability in the
country.

POWER
Power development in India commenced at the end of the 19th century with
the commissioning of electricity supply in Darjecling during 1H97, followed
by commissioning of a hydropower station at Sivasamudram in Karnataka
during 1902. In the pre-independence era, the power supply was mainly in
the private sector that too restricted to the urban areas. With the formation
of State Electricity Boards during Five -Year Plans, a significant step was taken
in bringing about systematic growth of power supply industry all over the
country. A number of multi-purpose projects came into being and with the
setting up of thermal, hydro and nuclear power stations, power generation
started increasing Significantly.
The Ministry of Power is primarily responsible for the development of
electrical energy in the country. The Ministry is concerned with perspective
planning, policy formulation, processing of projects for investment decision,
monitoring of the implementation of power projects, training and man-power
development and the administration and enactment of legislation with regard
to thermal and hydro power generation, transmission and distribution. In all
technical and economic matters, Ministry of Power is assisted by the Central
Electricity Authority (CEA).
The construction and operation of generation and transmission projects
in the Central Sector are entrusted to Central Sector Power Corporations, viz.,
the National Thermal Power Corporation (NTPC), the National HydroelectriC
Power Corporation (NHPC), the North-Eastern Electric Power Corporation
(NEEPCO), and the Power Grid Corporation of India Limited (PGCIL). The
Power Grid is responsible for all the existing and future transmission projects
in the Central Sector and also for the formation of the National Power Grid.
Two joint-venture power corporations, namely, Satluj Jal Vidyut Nigam (SJVN)
(formerly known as NJPC) an9 Tehri Hydro Development Corporation
(THDC) are responsible for the execution of the Nathpa Jhakri Power Project
in Himachal Pradesh and projects of Tehri Hydro Power Complex in
Uttaranchal respectively. Three statutory bodies, i.e., the Damodar Valley
Corporation (DVC), the Bhakra-Beas Management Board (BBMB) ;md Bureau

Energy

227

of Energy Efficiency (BEE), are also under the administrative control of the
Ministry of Power. Programmes of rural electrification are provided financial
C1~sistance by the Rural Electrification Corporation (REC). The Power Finance
::-orporation (PFC) provides term-finance to projects in the power sector. The
lUtonomous bodies (societies), namely, Central Power Research Institute
CPR!) and the National Power Training Institute (NPTI) are also under the
ldministrative control of the Ministry of Power. A Power Trading Corporation
1a~ also oc'Cn incorporated primarily to support the Mega Power Projects in
Jrivate sector by acting as a single entity to enter into Power Purchase
<\gn'cments (PPAs).
:apacity Addition: To meet the projected power requirement by 2012 an
Idditional capacity addition of 1,00,000 MW is required in the next two Five
rear Plans. A capacity of nearly 41,110 MW would be set up in the Tenth
'Ian and the remaining in the Eleventh Plan with a stronger focus on hydro
)ower. The Central Sector would contribute 22,832 MW, the State Sector 11,157
viW and Private Sector 7,121 MW in the Tenth Plan. Another 25,051 MW
,",'orth power projects are under execution and 6,000 MW worth projects are
mder awards process.
The installed power generation capacity in the country has increased
rom 1,400 MW in 1947 to 1,12,058.42 MW as on 31 March 2004 comprising
1'7,968.53 MW thermal, 29,500.23 MW hydro, 1,869.66 MW wind and 2,720
v1W nuclear. A capacity addition programme of 5,245.52 MW has been fixed
or the year 2004-05. Considering the fact that a large chunk of proportion
If the installed capacity will come from the public sector, the outlay for the
)ower sector has been raised from Rs 45,591 crore during the Ninth Plan to
{s 1,43,399 crore in the Tenth Plan. This would include a gross budgetary
,upport of R" 25,000 crore and the remaining Rs 1,18,399 crore would be
ntemal and extra budgetary resources.
Power generation during 2003-04 was 558.134 BUs comprising 466.618
IUs thermal, 73.796 BUs hydro and 17.720 BUs nuclear. The target of power
;cneration for 2004-05 has been fixed at 566.590 BUs. The plant load factor
las shown a steady improvement over the years and has improved from 52.8
)er cent in 1990-91 to 72.7 per cent in 2003-04.
\.ccelerated Rural Electrification PrograDlme (AREP): Rural Electrification
nvolves supply of energy for two types of programmes: (a) Production)riented activities like minor irrigation, rural industries, etc.. and
b) Electrification of villages. Rural Electrification Programmes are formulated
Ind executed by the SEBs/State Power Departments. Under the rural
'Iectrification programme, 4,73,892 villages out of 5,87,556 villages were
'Iectrified up to March 2004. Similarly, 1,40,02,634 pumpsets were energised
Ip to March 2004 out of the total estimated potential energisation of 19.5
nillion pumpsets. Under Kutir Jyoti Programme over 62.31 lakh single point
onnections were released at a cost of about Rs 516.39 crore to the rural
louseholds of families below poverty line by March 2004.../)

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India 2005
'Jo give impetus to rural electrification, the Government would pay

~pl'cial

attention for creation and augmentation of Rural Electridty Distribution

BackbOlw <ll1d Village Electridty Infrastructure so as to cover all unelectrified

vill"ges ilnd rural households within a span of five years, Rural Electridty
Supply Technology Mission (REST) has been set up to oversee tht>
impleml'ntation of schemes under AREP. ')
(50,000 MW Hydro-Initiative: Hydro power is a renewable and

l'llvironmentally benign source of energy. India has a very large potential of

which only II' per cent has been exploited. The 50,000 MW Hydro-initiative
launched last year has been completed and pre-feasibility reports for many
schemes are now available for development particularly in the North East and
in the states of J&K, Himachal Pradesh and Uttaranchal. The schemes have
bl'l'n prioritised based on their techno-economic feasibility so as to ensure that
hydro power development is taken up in an appropriate sequence. During
till' last one year, 2,950 MW of hydeJ power projects were commissionea.
1,00,000 MW Thermal Initiative: The 16th Electric Power Survey (EPS)
carritd by the Central Electricity Authority has projected a peak demand of
1,15,705 MW and an energy requirement of 7,19,907 MU by the end of Tenth
Plan while the requirement by the end of Eleventh and Twelfth Plan has been
projected as 1,57,107 MW and 2,12,759 MW respectively.

Keeping in view the huge power generation capacity requirement to be

added during the Eleventh and Twelfth Plan periods, an urgent need is felt
for lar~e-scillc thermal power development in an environment-friendly manner
and thus the Government plans to launch 1,00,000 MW Thermal Initiative.
NATIONAL GRID
Powt'r Grid has envisaged establishing an integrated National Power Grid in
the country in a phased manner by the year 2012. The first phase was
completed in 2002, wherein regional grids were mainly connected by HVDC
back-to-back stations, and inter-regional power transfer capadty of 5,000 MW
was established. The implementation of second phase has already commenced
and with commissioning of Talcher-Kolar HYDe bipole (2000 MW) and
Raipur-Raurkela (1000 MW) transmission system, inter-regional power transfer
capacity has grown to 8,000 MW. It has created a synchronous grid from
Arunachal Pradesh to Goa spanning across a length of 2,500 km, encompassing
an area of 16lakh sq km, with an installed capacity of over 50,000 MW. Second
phase of National Grid having inter-regional capacity of 23,500 MW would
bt, completed by the year 2007, depending upon materialisation of planned
generation projects. The third phase would involve development of high
capacity transmission highways, interconnecting Eastern and Northern Regions
with inter-regional transfer capacity of 30,000 MW by the year 2012.
CENTRAL ELECTRICITY AUTHORITY

The Central Electricity Authority (CEA), assists in all technical, financial and
economic matters. It is responsible for technical co-ordination and supervision

Energy
of programmes and is also entmsted with a number of statutory functions.
The CEA is particularly charged with the functions of developing a sound,
adequate and uniform national power policy, formulate short-term and longterm perspective plans for power development. It coordinates the activities
of planning agencies in relation to the control and utilisation of national power
resources, technical and commercial appraisal of power schemes, collection
of data, evaluation of financial performance of State Electricity Boards (SEBs),
analysis of tariff structure in the power industry, training of personnel and
promotion of research in power related matters. CEA is also charged with
the responsibility of monitoring of construction and operation of thermal,
hydro and power system schemes. A new dimension has been given to CEA
for monitoring of power reforms processing various states in respect of signing
of MoUs, unbundling of SEBs, constitution of SERCs and issuance of tariff
orders.
STATUS ON REFORMS IN THE POWER SECTOR
State Reforms Acts: Orissa, Haryana, Andhra Pradesh, Uttar Pradesh,
Uttaranchal, Karnataka, Rajasthan, Madhya Pradesh, Delhi and Gujarat have
enacted their State Electricity Reforms Acts, which provide, inter-alia, for
unbundling / corporatisation of SEBs, setting up of SERCs, ctc. The SEBs of
Orissa, Haryana, Andhra Pradesh, Karnataka, Uttar Pradesh, Uttaranchal,
Rajasthan, Delhi and Madhya Pradesh have been unbundled/corporatised.
Distribution was privatised in Orissa and Delhi.
State Electricity Regulatory Commissions : Twenty-three states have either
constituted or notified the constitution of SERe. Eighteen SERCs have issued
tariff orders.

Anti-theft legisiation : Several States, viz., Andhra Pradesh, Karnataka, Madhya

Pradesh, Uttar Pradesh, West Bengal, Maharashtra, Kerala, Gujarat and Bihar
have rasseo I crafted anti-theft laws.
ELECTRICITY ACf, 2003
The Electricity Act, 2003 has been enacted and the prOVISIOns of this Act
(except section 121) have been brought into force from 10 June 2003. With
the coming into force of the Electricity .Act, 2003 the Indian Electricity Act,
1910, Electricity (Supply) Act, 1948 and Electricity Regulatory Commissions
Act, 1998 stand repealed. The main features of the Act are as ~ollows :
(i) The Central Government to prepare a National Electricity Policy in
consultation with state governments; (ii) Thrust to complete rural electrification
and provide for management of rural distribution by panchayats, cooperative
societies, non-government organisations, franchises; etc.; (iii) Generation has
been delicensed and captive generation freely permitted. Hydro projects
would, however, need clearance from the Central Electricity Authority;
(iv) Transmission Utility at the Central as well as state level, to be a
government company - with responsibility for planned and coordinated
development of transmission network. Provision for private transmission

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India 2005

licensees; (v) Open access in transmission from the outset with provision for
surcharge for taking care of current level of cross subsidy with the surcharge
being gradually phased out; (vi) Distribution licensees would be free to
undertake generation and generating companies would be free to take up
distribution licensees; (vii) The State Electricity Regulatory Commission made
mandatory; (viii) Provision for licence-free generation and distribution in the
rural areas; (ix) The SERCs required to permit open access in distribution in
phases with surcharge for current level of cross subsidy to be gradually
phased out along with cross subsidies and obligation to supply; (x) Provision
for payment of subsidy through budget; (xi) For rural and remote areas stand
alone systems for generation and distribution permitted; (xii) Trading, a
distinct activity is being recognised with the safeguard of the Regulatory
Commissions being authorised to fix ceilings on trading margins, if necessary;
(xiii) Thl' State Governments have flexibility to unbundle the SEBs or continu(.>
with them as distribution lict'nsees and State Transmission Utility; (xiv) The
Bill does not prescribe any model of reform, instead provides flexibility to
the State Government to choose the model suiting to their conditions; (xv)
Metering of all electricity supplied made mandatory; (xvi) An Appellate
Tribunal to hear appeals against the decision of the CERC and SERCs; and
(xvii) Provisions relating to theft of electricity made more stringent.
The Central Government is in the process of formulating National
Electricity Policy, National Tariff Policy and National Rural Electricity policy
under .the provisions of the Act. In pursuance of the Act, the consent of the
Central Government has been conveyed to thirteen States for continuation of
SEB for a further period of up to one year.
ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME

The Government has launched the Accelerated Power Development Reforms

Programme (APDRP) which aims at upgradation of Sub-Transmission and
Distribution system, in the country and improvement in commercial viability
of State Electricity Boards by reducing the aggregate technical and commercial
(AT&C) losses to around 15 per cent as against the existing over 50 per cent.
This will ensure reliability and quality of power supply with adequate
customer satisfaction. This involves a Six Level Invervention Strategy that
encompasses initiatives at National Level, State Level, State Electricity Board/
Utilities level, distribution circle level, feeder level and the customer level.
This strategy aims at technical, commercial, financial and IT invervcntion,
organisation and restructuring measures and incentive mechanism for cash
loss reduction.
The APDRP has two components: (a) investment component for
strengthening and upgradation of the sub-transmission and distribution
system - the Central Government provides additional Central assistance to
the States for strengthening and upgradation of sub-transmission and
distribution network. The Government has sanctioned 410 projects amounting
to Rs 16,610.19 crore in 29 States all over the country during last two years.
(b) under the incentive component, an incentive equivalent to 50 per cent of

Energy

231

the actual cash loss reduction by SEBs/Utilities is provided as grant. The

disbursement for the year 2003-04 was Rs 2,859.81 crore for both the
components under the scheme.
PRIVATE SECTOR PARTICIPATION
The Government announced a policy in 1991 which allowed private sector
participation in power generation schemes. It was decided in February 1995
that no private power project proposal would be considered by Central
Electricity Authority (CEA), if the project was not awarded through the
invitation of tenders under the international competitive bidding (ICB) route
aftl'f a cut-off date of 18 February 1995. However, certain categories of power
projects, where the MOU / negotiation route is considered feasible, have been
exempted from the requirement of ICB for award of tht' project. Since 1991,
,1 total of 37 private power projects of around 7,400 MW capacity have been
commissioned and twelve projects of around 4,500 MW capacity are under
construction.
To facilitate setting up of large sized thermal power plants in the country
and in order to derive the economies of scale, a mega power policy has been
introduced. Nineteen projects were identified in November 1998 as mega
power projects both in public as well as private sector. Power Trading
Corporation (PTC) has been incorporated, for the purpose of buying power
from mega power projects under long-term Power Purchase Agreements
(PPAs) and selling the same to the beneficiary states also under long-term
PPAs. Certain fiscal concessions were given to mega power projects to make
the tariff cheaper. the policy was further liberalised and any inter-state project
which meets the minimum threshold capacity limit, i.e., 1,000 MW for thermal
and 500 MW for hydel would be eligible to get the mega project benefits.

PUBLIC SECTOR UNDERTAKINGS AND OTHER ORGANISATIONS

NATIONAL THERMAL POWER CORPORATION LIMITED
The National Thermal Power Corporation Limited (NTPC) was incorporated
in November 1975 with the objective of planning, promoting and organising
integrated development of thermal power in the country. NTPC is a schedule
'A' Navratlla company having a total approved investment of Rs 79,336.67
crore. The Corporation has under operation/implementation coal based super
thermal power plants projects at thirteen locations and combined cycle gas
power projects at seven locations. The commissioned capacity of NTPC owned
stations as on 31 March 2004 is 21,749 MW. In addition, it has acquired 314
MW of captive power plants of Steel Authority of India Limited (SAIL)
through formation of joint venture companies with it. During the year 200304, an all time high generation of over 1,49,161 MUs was achieved registering
an increase of 5.9 per cent over the previous year's generation of 1,40,868 MUs.
NTPC achieved ever-highest PLF of 84.4 per cent since inception. Besides its
own stations, NTPC also manages the Badarpur Thermal Power Station (BTl'S)

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India 2005

in Delhi (705 MW). It is at present implementing eight power projects with

a capacity of 8,010 MW. Corporatl' Plan adopted by NTPC envisages it to
become a 40,000 MW plus company by the year 2012.
NTPC Hydro Limited is a wholly-owned subsidiary to carry out business
of implementing and opt'rating small and medium hydro power projects of
up to 250 MW capacity. NTPC has signed MoU with REC for setting up
Decentralised Distribution Generation scheme for rural electrification through
Non-conventional energy sources. NTPC Vidyut Vyapar Nigam (NVVN) a
subsidiary of NTPC transacted business with 18 State utilities trading in more
than 1,300 MUs in 2003-04. Consultancy wing of NTPC achieved tum over
of Rs 24.7 crore and profit of Rs 7.45 crore during the year 2003-04.
NATIONAL HYDRO-ELECTRIC POWER CORPORATION
Thl' National Hydroelectric Power Corporation is a schedule 'A' enterprise
of the Government with an authorised share capital of Rs 15,000 crore at
present with investment base exceeding Rs 20,000 crore. It has been granted
ISO-9001 and ISO 14001 certificates for its Quality Management system and
Environment Management system for Corporate Office.
NHPC has got nine commissioned power stations with the installed
capacity of 2,475 MW and drawn a programme to add 4,357 MW of hydro
capac.ity in the Tenth Plan (2002-07) and 16,004 MW in the Eleventh Plan
(2007-12). It has formed joint venture with Government of Madhya Pradesh
to executt' two hydro projects with an aggregate capacity of 1,520 MW.
NHPC Power Stations generated 11,045.52 MUs and achieved capacity
index of 97 per cent during the financial year 2003-04. It earned gross sales
of Rs 1,411.52 crore and net profit of Rs 581.01 crore for the financial year
2003-04. It is a profit making organisation and registering profit consistently
for many years in a row and has been rated "Excellent" in MoV targets.
NHPC was entrusted to prepare PFR (Pre-Feasibility Report) of 43
number of hydro projects under 50,000 MW hydro power initiative. The PFRs
of all the 43 projects totaling installed capacity of 21,345 MW have been
prepared and submitted to CEA.
NHPC has been providing consultancy services in the area of hydro
power development for generating additional revenue in the form of
consultancy business. Consultancy assignments amounting to Rs 97.4 croft'
were awarded to it during the financial year 2003-04. It is registered as a
consultant in the area of Hydro Power with international funding agencies
like World Bank, Asian Development Bank, African Development Bank, etc.
POWER GRID CORPORATION OF INDIA LIMITED
The Power Grid Corporation of India Limited (pGCII.) was incorporated as
a Government enterprise on 23 October 1989 for establishment and operation
of regional and national power grids to facilitate transfer of power within and
across the regions with reliability, security and economy on sound commercial
principles. It has been recognised as a mini-ratno category-I PSU.

Energy

233

As on 31 March 2004, POWERGRlD is operating about 47,757 ckt kms

of transmission lines consisting of 563 ckt kms of 800 k V, 4,368 ckt kms, of
HVDC system, 33,281 ckt kms of 400 kV, 7,356 ckt kms of 220 kV and 2,152
ckt kms of 132 kV and 37 ckt kms of 66 kV lines along with 82 sub-stations
with 46,461 MVA transformation capacity. The transmission system availability
is maintained consistently over 99 per cent by deploying best operation and
maintenance practices at par with international utilities. Based on its network
~.ize and operational efficiency, POWER~~ iUllOllg- one ~)f_ t~~ largest
and bes!_~naged transmission utilItY in th~ W9!!'i:.. Presently, about 40 per
cent of total power generated in the country is being transferred over
I'OWERGRI~siol1 . .!'_etwork. During the year 2003-04, organisation
has earned a net profit of about Rs 740 crore on a turnover of about Rs 2,783
crore and commissioned 1,512 ckt kms of transmission lines and 3 new sub:
station and added transformation capacity of.-..--_.
1,725 MVA
__ .
-.~-.-.-

rOWERGRID is establishing Unified Load Dispatch and Communication

(ULDC) schemes in all the five regions, namely, Northern, Western, Eastern,

Southern and North-Eastern regions of Indian power system. The ULDC

.~ch('mes have been envisaged to operate, monitor and control the regional
power grid in a unified, well coordinated and integrated manner.
POWERGRILJ is also in the process of establishing an integrated National
Power Grid in the country in a phased manner by the year 2012. The first
phase with an inter-regional power transfer capacity of 5,000 MW was
l'Ompleted in 2002. The implementation of second phase has already commenced
and with commissioning of Talcher-Kolar HVDC bipole (2,000 MW) and
Raipur-Raurkela (1,000 MW) transmission system, inter-regional power transfer
capacity has grown to 8,000 MW. Second phase of National Grid having interregional capacity of 23,500 MW would be completed by the year 2007,
depending upon materialisation of planned generation projects The third
phase would involve development of high capacity transmission highways,
interconnecting Eastern and Northern Regions with inter-regional transfer
capacity of 30,000 MW by the year 2012.
POVVERGRlD has diversified into Telecom business to utilise spare
elecommunication capacity available with its Unified Load Dispatch Centre
ULDC) schemes and leveraging on its country wide transmission infrastructure.
Under Accelerated Power Development and Reforms Programme (APDRP),
it has been assigned the role of Advisor-cum-Consultant to lend its managerial
imd technical expertise lor developing 105 distribution circles spread over 18
States. It has also undertaken implementation of projects under this programme
on turnkey on bilateral basis in States like Goa, Bihar and Meghalaya. In
addition, it is also executing Rural Electrification works of 2,400 villages in
Bihar on behalf of BSEB costing about Rs 174 crore, covered under Pradhmr
Mantri '$ Gramodaya Yojana (PMGY).

RURAL ELECTRIFICATION CORPORATION LIMITED

The Rural Electrification Corporation Limited (REC) was incorporated as a

234

India 2005

Company under the Companies Act, 1956 in 1969 with the main objective
of financing rural dectrification schemes in the country. The current mission
of REC is to facilitate availability of electricity for accelerated growth and for
enrichment of quality of life of rural and semi-urban population and to act
as a competitive, client-friendly and development oriented organisation for
financing and promoting projects covering power generation, power
conservation, power transmission and power distribution network in the
country.
Over tht last 35 years, REC has cumulatively sanctioned Rs 63,456 crore
for 40,696 projects and disbursed Rs 37,110 crore as on 31 March 2004 as
financial assistance on relatively softer terms to the SEBs, Electricity Departments
of State Governments and other Power Utilities. Up to 31 March 2004, 3,05,064
villages have been reported electrified and 82,07,482 pumpsets have been
reported energised under the projects financed by REC. It has disbursed till
the end of 31 March 2004 an amount of Rs 6,017 crore for system
strengthening, intensive electrification of already electrified areas, energisation
of pumpsets and also for various generation projects. It has introduced new
category of scheme in February 2003 for providing loan assistance to State
Governments at concessional interest rates of one per cent per annum for
electrification of dalit bastis and three per cent per annum for villages and
hamlets.
POWER FINANCE CORPORATION LIMITED
The Power Finance Corporation Limited (PFC), New Delhi, was incorporated
on 16 July 1986 and was declared a public financial institution in August 1990.
The main objectives of the Corporation include, financing of power generation
projects, transmission and distribution works, renovation and modernisation
of power plants, system improvement and energy conservation schemes,
maintenance and repair of capital equipment.
The authorised share capital of the Corporation is Rs 2,000 crore and
paid-up capital is Rs 1,035.45 crore. Ttll 31 March 2004, Corporation has
sanctioned loans in the power sector amounting to Rs 60,975 crore and had
disbursed Rs 40,690 crore against these sandions. It has been declared as Mini
Ratna (category I) PSU. The Corporation has been consistently earning profits
since commencement of its financial operations. The post tax profit has been
Rs 1,617 crore for 2003-04. During 2003-04 the Corporation sanctioned an
amount of Rs 16,472 crore while the disbursement was Rs 8,975 crare. PFC
has received MOU Excellence Award from Hon'ble President of India recently.
NORm-EASTERN ELECTRIC POWER CORPORATION LIMITED
The North-Eastern Region is blessed with the highest hydro power potential
in the country which is estimated at about 58,971 MW, out of which less than
two per cent of this potential has so far been harnessed. Besides this, there
is considerable thermal power potential, mainly in terms of gas reserves. With
a need to develop this huge power potential, North-Eastern Electric Power

Energy

235

Corporation (NEEPCO) was incorporated on 2 April 1976 as a wholly--owned

Government enterprise under the Ministry of Power, to plan, promote,
investigate, survey, design, construct, generate, operate and maintain power
stations in the NE Region. The authorised share capital of the corporation
presently stands for Rs 3,500 crore. The installed capadty of NEEPCO is 1,130
MW comprising of 755 MW of hydropower and 375 MW of gas based power.
Thc corporation currently meets more than sixty per cent of the energy
requirement of the North Eastern Region. It is an ISO 9001 : 2000 Company
wiLl-t its Corporate Office at Shillong.
Tht' Corporation plans to increase its generation capadty up to 4,230
MW during Eleventh five-year Plan. The five projects of total capadty of 2,650
MW are under execution by NEEPCO. During the period from 1 January 2003
to 31 March 2004, it generated 2,124 MUs from hydro stations and 2,733 MU
from thermal stations. It has also taken up the work of preparation of
Preliminary Feasibility Reports of 18 identified projects with an aggregatt~
capacity of mo~ than 5,000 MW in the NER under the 50,000 MW Hydro
Electric Initiative.

SATLUJ JAL VIDYUT NIGAM LIMITED

The Satluj Jal Vidyut Nigam (SJVN) Limited (formerly Nathpa Jhakri Power
Corporation Limited) was incorporated on 24 May 1988 as a joint venture
of the Government of India (GOl) and the Government of Himachal Pradesh
(GOHP) to plan, investigate, organise, execute, operate and maintain hydroelectric power projects in the Satluj basin in Himachal Pradesh. The present
authorised share capital of SJVN is Rs 4,500 crore. The equity-sharing ratio
of Gal and GOHP is 3:1 respectively. In addition to the finandal assistance
from the World Bank, SJVN has also been financed as a loan by a Consortium
of European Banks and the Power Finance Corporation.
The Nathpa Jhakri Hydro-electric Project (1,500 MW) is the first project
undertaken by SJVN. All the six units of 250 MW of Nathpa Jhakri Hydroelectric Project have been successfully test synchronised. Rampur Hydroelectric Power Project (439 MW) is another project being executed by SJVN.
It is also planning to take up the execution of more projects in the Satluj river
basin in the Himachal Pradesh during the Tenth-Eleventh Plan period.
TEHRI HYDRO DEVELOPMENT

CO~ORATION

LIMITED

THDC, a Joint Venture Corporation of the Government of India and

Government of U.P., was incorporated in July 1988, to Plan, promote and
organise an integrated and efficient development of hydro resources of
Bhagirathi river and its tributaries at Tehri and complementary downstream
development (the Tehri Complex) for power generation and other purposes
in all its aspects and to undertake in a similar manner the development and
harnessing of such hydroelectric sites/projects in Bhagirathi/Bhilangana
valleys.
The Corporation has an authorised share capital of Rs 3,000 crore. The

236

India 2005

Corporation is presently engaged in the implementation of Tehri Hydro Power

Complex (2,400 MW) comprising of Tehri Dam and HPP, Stage-I (1,000 MW)
and 400 MW Koteshwar HE Project and Tehri Pumped Storage Plant (1,000
MW). The Tehri Stage-l is in advance stage of completion and is scheduled
for commissioning in the year 2()O4-05. The work on Koteshwar HEP is in
progress and is scheduled for commissioning in the year 2006-07.
Thc Tehri Hydro Power Complex (2,400 MW) will generate 6,200 million
units of energy per year on its completion (3,568 million units on completion
of Tehri Stage-f) and will provide addition irrigation facility to 2.70 lakh ha
of land. Besides stabilising existing irrigation facility in 6.04 lakh ha of land.
The Project will provide drinking water facilities for 40 lakh people in Delhi
and for 30 lakh people in town and villages of Uttar Pradesh.
DAMODAR VALLEY CORPORATION
The Damodar Valley Corporation (DVC), the first multipurpose river valley
project of the Government \\'as set up in July 1948 for the unified development
of Damodar Valley region spH'ad owr the states of Jharkhand and West
Bengal. It's objtctives include flood control and irrigation, water supply and
drainage, gelll'ration, transmission and distribution of electrical energy, both
hydro-electric and thermal, afforestation and control of soil erosion, public
health and agricultural, industrial, economic and general well-being in the
Damodar Valley. The DVe's main projects include four dams at Maitho",
Panchet, Tilaiya and Konar, with COI1l1l'cted hydro-electric power stations
(except at KOllar), thermal power station at Bokaro 'A', Bokaro 'B' Chandrapura,
Durgapllf, Mejia and also one gas turbine station at Maithon. DVC supplies
power to coal mines, steel plants, railways and other big industries, besides
Stab;' Electricity Boards of Jharkhand and West Bengal. The total derated
capacity of DVe in April 2004 was 2,761.5 MW comprising 2,535 MW of
thermal, 144 MW of hydl'l dnd 82.5 MW from gas turbine station. DVCs
transmission system runs to a total length of 6,021 ckt km. Th(' system is
supported hy 56 sub-stations and receiving stations. As a constituent of
Eastern Regional Grid, it is exporting surplus power to the deficit regions of
thl' country through thl' natiol.lal grid.
BHAKRA BEAS MANAGEMENT BOARD
Thp Bhakra-Beas Management Board (BBMB) manages thc facilities cn-ated
for harnl'ssing the waters impounded at Bhakra and Pong in addition to those
diwrted at Pandoh through the BSL Water Conductor System. 1t was also
assigned the responsibility of dl'livel :ng water and power to the beneficiary
stall's in a ccordell1Cl' \vith their cntitled shares. The Board is responsible for
the admini~tr<ltion, lTIilinll'nal1l'l' and operation at BL1kra Nangal Projf'ds,
BeelS ]'Wjl'ct Unit I and Unit II including Power Houses and a network of
Il'cll1smissioll lint's and grid sub-stations. 'nl(, power g('neration of BBMB
p(lwl'r stations i!-. lwing evacuated through 8BMB power evacuation system
J'fllliling into .1,755 circuit km ]('ngth of 400 KV, 220 KY, 132 KV and 66 KV

Energy

237

transmission lines and 24 EIN sub-stations. The installed capacity of BBMB

power plants is 2,873.15 MW. The generation during 2003-04 was 11,441 MUs.
POWER TRADING CORPORATION OF INDIA LIMITED
The Power Trading Corporation of India Limited (PTC) was set up in April
1999 with a mandate to catalyse development of Mega Power Projeds and

other Power Projects by acting as a single entity to enter into Pow!:'r Purchasl'
Agrt.'Cments (PPAs) with Independent Power Producers (IPPs) on tl1t' one side
and multipartite PPAs with users/SEBs under long-term arrangement on thl'
other, thus insulating the lIPs from protracted negotiations with multipartite
SEBs and receivable risks. The Government has identified PTC as a nodal
agency to deal with matters relating to exchange of power between India and
its neighbouring countries.
The PTC started trading with limited transactions during 1999-2000
(28.35 MUs) but trading on sustained basis commenced from June 2001 which
has grown to a figure of 11,016 MUs as on 31 March 2004. PTe has also
introduced 'differential pricing' concept for 'round the clock' and 'off-peak
power'
NATIONAL POWER TRAINING INSTITUTE

The National Power Training Institute (NPTI), is a registered society and <111
ISO 9001 :2000 and ISO 14001 organisation is the head Institute for training
ilnd human resource development in power sector. With its Corporte Ct'l1tn'
ilt Faridabad, NPTI operates on an all-India basis through its fiw regional
institutes in different power zones of the country. The Corporate Centrt' and
its institutes are well equipped with world class hi-tech infr'l' lrudural
facilities for conducting different courses on technical as well as management
subjects. NPTI has trained more than 87,000 power professionals in its regular
programmes besides sensitising more than 93,000 people in Public Awarenl'ss
Programmes in Energy Conservation, Power Reforms, Electrical Safety ilnd
Energy-Environment linkage across the country. 210 MW and 500 MW Rl'(ll
time Power Plan Simulators have bt..>en set up at corporate centre and n'gional
institutes and over 6,700 operators/ engineers/ supervisors haw been trained
on thes<~ simulators.
Over 40 self-paced, menu-driven, cost-effective multimedia ('I)ll1pult't'
based training packages have been dev~loped and marketed hy NPTI. 115
attempts to weave formal education with industry oriented inputs ffiillerialised
with the launching of MBA in Power Management four years dq;ree, course
in B. Tech/B.E. (Power) and Post-Graduate Diploma in Thermal Power Planl
Engineering. These AICfE approved courses have an overvvhdming response
and the trained manpower are being recruited by various Public / Private
sector organisations through campus interviews as well. NPTJ has been able
to attract trainees from other countries.
CENTRAL POWER RESEARCH INSTITUTE
The Central Power Research Institute (CPRI), a society registered under the

238

India 2005

societies Registration Act under the Ministry of Power, serves as a National

Laboratory to carry out applied research in Electrical Power Engineering. It
also functions as an independent National Testing and Certification Authority
for Electrical equipments for ensuring their reliability and improves, innovatt'
and develop new products and processes.
The Institute, since is existence for over four decades has built sophisticated
facilitips both in the afPas of research and testing. The important facilities
include 2,500 MVA Short-Circuit lesting with Synthetic Testing Facility at
Bangalore, Ultra High Voltage Research Laboratory at Hyderabad, ShortCircuit Testing Facility at Bhopal, Thermal Research Centre at Koradi, Nagpur
and Energy Research Centre at Thiruvananthapuram to cater to the R&D and
testing needs of the Power Sector. A state-of-art test facility for seismic
qualification of power equipment and Real Time Digital Simulation Facility
have lx>en set up and commissioned.
The most of CPRI's laboratories are accredited under National
Accreditation Board for Testing and Calibration of Laboratories (NABL), the
national body for accreditation of laboratories as per ISO I IEC 17,025 norms.
It has been given the 'Observer Status' in the group of Short-Circuit Testing
Liaison (STL) of Europe. Its laboratories are approved for testing for certain
products like communication cables, LT Capacitors, etc., by Under Writers
Laboratories (UL) and Canadian Standard Association (CSA).
Over the years CPRI has built up expertise in the areas of transmission
and distribution systems, power quality, energy metering energy auditing,
transmission line, Tower design, conductor vibration studies, power systems
instrumentation, transformer oil reclamation and testing, diagnostic studies,
condition monitoring and estimation of remaining life of equipment, new
materials for power system application, UHV testing, sort-circuit testing, HV
testing, seismic qualification of equipment and other related fields. It offers
consultancy services in these areas. The Institute has tie-up with many
international research and test houses like EdF, France, CESI, Italy and EPRI,
USA, etc.

BUREAU OF ENERGY EFFICIENCY

The Bureau of Energy Efficiency (BEE) was established on 1 March 2002 by
merger of the Energy Management Centre (EMC) as per the provisions
contained in the Energy Conservation Act, 2001 and is the nodal agency to
implement the various provisions of the Energy Conservation Act. It is
responsible for spearheading improvements in energy efficiency in different
sectors of the economy through various regulatory and promotional instruments.
The mission is to develop policies and strategies focusing on self regulation
and market principles, within the overall framework of the Energy Conservation
Act, 2001 with the primary objective of reducing energy intensity of the Indian
economy.

Energy

239

CENTRAL ELECfRICITY REGULATORY COMMISSION

The Central Electricity Regulatory Commission (CERC), an independent

statutory body with quasi-judicial powers was constituted on 25 July 1998.
It consists of a chairperson and four other members. Under the Electrify Act,
2003, the Commission shall inter-alia discharge the functions of regulating the
tariff of generating companies owned or controlled by the Central Government
ancl the inter-state transmission of electricity and deternlining tariff for it.

The commission has issued finill regulations on Open Access in interstate transmission and grant of power trading license. Thl> regulations
governing terms and conditions of tariff the period commencing ] April 2004
haw also been specified. The commission has also opened its web site
(www.cer_cind.org) which is regularly updated by posting all the programmes
and orders of the commission from time to time. The Commission disposed
of 155 petitions during 2003-04.

COAL
Coal is the main source of energy in the country and accounts for about 67
per cent of the country's commercial requirement. It is also an essential input
in steel and carbo-chemical industries.
COAL RESERVES

As on 1 January 2004 coal reserves of India (down to a depth of 1200 meters)

have been estimated by the ,-~eologica[ Survey of India at 2,45,693 million
Lonnes. State-wise / category-wise distribution of coal reserves is given in
table 11.1
TABLE 11.1: DISTRIBUTION OF COAL RESERVES
(million tonnes)

State
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chhattisgarh
/harkhand
Madhya Pradesh

Proved

Indicated

Inferred

Total

8091

6092

2514

16697

31

40

19

90

279

27

34

340

160

160

8771

26419

4355

39545

35409

30107

6348

71864

7513

8233

2914

18660

India 2005

240
Maharashtra

4653

2156

1605

8414

117

41

301

459

15

20

Maghalaya
Nilgilland

( )ris~a

14614

31239

1513.5

60988

766

296

1062

West Illngal

113113

11523

4488

27394

l(ltal

91"31

116174

37881l

245693

Utl.u Pradesh

PRODUCTION
Tht' Coal production during 2003-04 was 361.17 million tormes (provisional)
(Coal India limited (CIl) 306.39 million tonnes, Singareni Collieries Company
Limited (SeCL) 33.85 million tonnes, Captive collieries 20.93 million tonnes].
In the year 2000 a new ,Solliery ~~!,!!.Ql_Order,__ ~QQQ_.was promulgated
which deregulated price-fixation oi all grades from 1 January 2000. Coal is
distributed on the basis of linkages / sponsorship. Short-term linkages of
important sectors like power and cement are decided on quarterly basis by
Standing Linkage Committl.>t' set up by the Government. Linkages to non-core
sector consumers are within the purview of Coal India Limited (CIL)_ As per
the nt'w coal sale policy for non-core sector these linkages are to be replaced
by Fuel Supply Agreements (FSAs) between the coal companies and consumers.
Offtake of coal during 2002-03 and to 2003-04 to major sectors of the economy
is give in table 11.2 :
TABLE 11.2 : OFF-TAKE OF RAW COAL
(All India)
(million !onnes)
Yl'dr

Power

Sll'l'!'

Loco

Cement

2002-m

252.18

17.66

0.00

12.70

2003-04'

21>4.56

16.63

0_00

13.46

Ferh'

Others

Total

2.79

54.76

340.09

2.30

62.39

359.34

, Provisiondl
: Excluding imports

PROJECTS AND PLANNING

The coal projects costing up to Rs 100 crore can be sanctioned by the Board
of Directors of Coal India Limited (CIl), and coal projects costing up to
Rs 50 crore can be sanctioned by the Board of Directors of Northern Coalfields
Limited (NCL), Western Coalfields limited (WCL), South Eastern Coalfields
Limited (SECL), and Mahanadi Coalfields Limited (MCL) subject to certain
conditions.

Energy

241

Project costing more than Rs 100 crore are sanctioned by the Government.
After nationalisation of the coal industry in 1973 tiJI March 2004, the number
of projects sanctioned was 435 with a total investment of Rs 22,002.20 crore.
Out of 435 mining projects (costing more than Rs two crore), 332 projects have
since been completed and 103 projects are under various stages of
implementation. These projects on completion will have a capacity of 368.80
million tonnes of coal per annum.

COAL CONSERVATION
Conservation of coal enjoins maximum recovery of in-situ reserves of coal.
The coal deposits in India occur mostly in thick seams and at shallow depths.
These aspects are taken into account during mine planning and operation in
ensuring maximum recovery. Mechanised open cast mining in India is an
important technology of coal production of thick seam from shallow depth.
Thl' percentage recovery by this method is up to 90 per cent of the ill-situ
coal reserves. The coal production from open cast method in Indian mining
is more than 80 per cent of total production. This trend is likely to continm'
in near future. The thick seam deposiLs earlier developecUn Board and Pillar ___.,_
(B&~_metbod -.or other methods of underground mining which had been
starlding on pillars for long in absence of a suitable technology of extraction
have now in many cases becomt' extractable by opencast mining. This method
has been tried with success in some of the mines where underground mining
was carried out in the past under tht' relatively shallow cover. ~e longwall
methods are being applied in the case of underground mines to achieve higher
underground production with higher percentage of recovery. The overall
recovery in longwall technology is comparatively more than the recovery in
B&P mining.
The Coal Conservation and Development Act, 1974 provides for imposition
of excise duty on coal despatches for meeting activitiesUke conservation of
coal, development/introduction of new technology in coal mines, safety in
mines and assistance in mining operation. A. number of research and
development activities in coal sector are carried out under the overall
guidance and supervision of the Standing Scientific and Research Committee
and its four sub-committees.

SAFETY AND WELFARE

Special efforts to improve the standard of safety in the coal industry have
brought down the rate of fatalitie~r million tonne of output in Coal India
to 0.20 in the year 2003. A Standing
Limited from 2.62 in the year 1':1
Committee on Safety regularly reviews safety standards in coalmines.
Coal India Limited had 4.84 lakh employees as on 1 April 2004 and the
coal industry employs over seve.1 lakh workers. Since the nationalisation of
coal-mines, welfare of coal miners by way of providing facilities like housing,
water supply, medical care, education, etc., is being given greater attention.

242

India 2005

LIGNITE

Lignite reserves in India have been estimated at around ~~,--6J{U]1illion tonnes

as on 1 January 2003. Out of this, 4,150 million tonnes i's in the Neyveli area
of Cuddalore district in Tamil Nadu of which about 2,360 million tonnes has
bet'n proved. Geological reserves of about 1,168 million tonnes of lignite have
been identified in Jayamkondacholapuram of Trichy district in Tamil Nadu.
In Mannargudi and East of Veeranam (Tamil Nadu) geological reserves of
around 22,898 million tonnes and 1,342.45 million tonnes of lignite have been
estimated respectively. Lignite reserves have Deen identified in Rajasthan,
Gujarat, Jammu and Kashmir and Kerala to the extent of 3,099 million tonnes,
1,778 million tonnes, 128 million tonnes and 108 million tonnes respectively.
Lignite reserves at Neyveli are exploited by Neyveli Lignite Corporation
Limited (NLC). Incorporated as a privatt> limited company in 1956, NLC was
wholly-owned by the Government and converted into a public limited
company with effect from 7 March 1986. Over the years, it has acquired
considerable expertise and has established itself as a premier organisation in
the field of lignite-mining and lignite based power generation. The NLC is
an integrated complex consisting of thret' lignite mines and three thermal
power stations.
During 2003-04, NLC produced 205.57 lakh tonnes of lignite and
16,388.21 million units of power.

NON-CONVENTIONAL ENERGY SOURCES

The importance of renewable energy was recognised in the country in
the early 19705. India has today one of the largest programmes for renewable
energy. The activities cover all major renewable energy sources, such as biogas,
biomass, solar, wind, small hydropower and other emerging technologies.
Several renewable energy systems and devices are commercially available.
The Ministry of Non-Conventional Energy Sources (MNES) is the nodal
Ministry of Government for all matters relating to new and renewable
energies.
The renewable energy programmes cover the entire gamut of technologies,
including improved wood stoves, biogas plant, biomass gasifier, solar thermal
and solar photovoltaic systems, wind mill, co-generation, small hydro power,
energy recovery from urban/municipal and industrial wastes, geothermal
energy, hydrogen energy, electric vehicles and bio-fuels, etc. Each programme
has several components, which cover R&D, demonstration and extension.
Marketing outlets, namely, "Aditya..-S9~~H have been set-up in major
cities and towns with a view to promoting sale of renewable energy systems
and devices, servicing and repair of such systems and devices.
A manufacturing infrastructure has emerged for the manufacture and
supply of non-conventional energy equipment. These include small-scale and
medium/large-scale industries, both in the public as well as the private
sectors. Technical guidance and help has been provided to some developing
countries for the construction of biogas plants. Products, which are being

243

Energy

exported, include mainly solar photovoltaic modules and systems. Wind

turbines components have been exported to Europe, Australia and the USA.
A Swiss company has used Indian designs for the manufacture of small
gasifiers.
ACHIEVEMENTS

During the last two decades, several renewable energy technologies have been
developed and deployed in villages and cities. Some of the achievements are
given in table 11.3 alongwith the estimated potential:
TABLE 11.3 : RENEWABLE ENERGY POTENTIAL AND
ACHIEVEMENTS
SL

Source/System

No.

Approximate
Potentia!

Achievements (as on
3 I March 2004)

A. Power from Renew.lIbles

I.

Solar Photovoltaic Power

Wind Power

45,000 MW

2,483.00 MW

:l.

Small Hydro Power

(up to 25 MW)

15,000 MW

1,601.62 MW

Biomass Cogeneration Power

19,500 MW'

613.43 MW

Ii

Biomass Gasifier

b.

Energy Recovery from Wastes

Power from Renewables (Total)

B.

DecentraUsed Energy SY8tems

7.

Family-size Biogas plants

8.

Community I Institutional
Biogas plants

9.

Improved wood-stoves

10. Solar Photovaltaic Systems

i. Solar Street Lighting Systems
ii. Home Lighting Systems
iii. Solar Lanterns
iv. SPY Power Plants

2.54 MW

60.20 MW

2,700 MW

41.43 MW

81,200 MW

4,802.22 MW

12 million

3.65 million

3,950 Nos.
120 million

20 MW/sq km
52,102 Nos.
3,07,763 Nos.
5,38,718 Nos.
851.00 kWp
140 milUon sq m
Collector area

II.

Solar Water Heating Systems

12.

Solar Cooking Systems

i. Box-type Solar Cookers
ii. Concentrating-type Community Cookers 10 Nos.
iii. ScheEler I dish type Solar Cookers

13. Solar PV Pumps

35.2 million

0.80 million sq m
Collector area

5,55,000 Nos.
2,000 Nos.
6,452 Nos.

India 2005

244
14.

Wind Pumps

':145 Nos.

15.

Hybrid Systems

370 kW

1h.

Battery Opt'ratl'd Vehicles

300 Nos.

SlJ k = s..lUill'i' Kilometer

KW - Kilowatt
kWp ~ Kilo watt pt'ak

Sq m - SquaTf' Meter
'Including

Bi(lmas~

MW = Mt'ga-watt

Gasifier

RURAL ENERGY
Around 3.65 million family size biogas plants and 35.2 million improved wood
stoves have been installed so far. India is second only to China in these two
applications. In addition, enriched organic manurt:> is produced from biogas
plants to supplement and complement environmentally degrading chemical
fertilizers.
NATIONAL PROJECT ON BIOGAS DEVELOPMENT
The National Project on Biogas Development was initiated in 1981-82 for the
promotion of family size biogas plants with the aim of providing a clean and
cheap source of energy in mra! areas alongwith other benefits such as enriched
organic manure, improved sanitation and hygiene and reduction in dmdgery
for women. Three types of biogas designs, namely, the floating drum type
or KYIC design, fixed dome type and bag typt portable digester made of
mbberised nylon fabric art' being propagated under this programnw.
The biogas programme is implemented through the state governments
and administrations, corporate/registered bodies, KYle and non-governmental
organisations. Technical Back-up Units (TBUs) set up ilt eight locations an'
providing technical and training support in a decentralised mode. Commercial
and co-operative banks are proViding loans for the setting up of biogas plants.
INTEGRATED RURAL ENERGY PROGRAMME
The Integrated Rural Energy Programme (IREP) at undertaking village level
l'nergy planning for meeting the energy needs of the villages through a blend
of conventional and non-conventional sources of energy. Earlier the programme
was implemented taking the Block as a unit of planning and till 2002-03, 860
Blocks were covered. The programme was modified in 2003-04 and it
envisages preparation of district-level energy plans and its implementation
in a selected clusier of villages in the district.
253 districts in 16 States and one Union Territory were covered under
the modified IREP. Five Regional Training Centres set up under the programme
at Delhi, Lucknow, Amrol (Gujarat), Bangalore and Shillong meet the training
requirements of different target groups involved in planning and
implementation of IREP.
SPECIAL AREA DEMONSTRATION PROGRAMME
The Special Area Demonstration Programme (SADP) aims at demonstrating
renewable / non-conventional energy systems and devices in all parts of the

Energy

245 \

PROGRESS OF RURAL ELECTRIFICATION

VILLAGES ELECTRIFIED
(CUMULATIVE)

1ft

.....

31 Mar
1995

K8K

...
N

II>
N

1ft

.,;

31 Mar
1996

31 Mar
1997

at

co
co

00
...,
N

co

31 Mar
1998

cr>
...,

..,~

...
......,
N

co

at

..,...,

00

00
00

1ft

...

1ft

co

D
1ft

1ft

.,;

31 Mar
1999

31 Mar
2000

31 Mar
2001

co

31 Mar
2002

co

at

"':

31 Mar
2003

31 Mar
2004

"/'

246

India 2005

country with a view to create awareness and give publicity amongst students,
teachers and the public. About 200 Energy Parks were bt.>en set up till
31 March 2004.
REMOTE VILLAGE ELECTRIFICATION

Tht' Ministry of Non-conventional Energy Sources is implementing a programme

since 2001-02 for the electrification of remote census villages and all unelectrified remote hamlets through renewabll' energy means.
More than 24,500 villages/hamlets (which are not likely to bl' electrified
through grid-extension by 2012) werp tentatively identified for this purpose.
As on 31 March 2004, 1,563 remotp villages and 316 remote hamlets were
electrified and projects are under implementation in 1,517 remote villages and
721 hamlets. The target for the Tenth Plan period is electrification of 5,000
such villages.

Thl' projects are implemented through State Nodal Agencies for Renewable
Energy, Power Departments, ElectriCity Boards, Corporate Entities for power
generation, transmission and distribution set up by the Central or State
Govt'rnments, Non-Governmental Organisations, Cooperative Societies and
similar non-profit bodies, District-level bodies, Panchayati Raj Institutions,
Village Councils and Private Sector with emphasis being on provision of
energy services.
SOLAR THERMAL ENERGY PROGRAMME

Solar-thermal devices are being utilised for water heating, cooking, drying and
can be utilised for space heating, water desalination, industrial process heat,
steam generation for industrial and power generation applications, operation
of refrigeration systems, etc.
Low-grade solar thermal devices (for temperature range 100-300 degree
C) like solar water heaters, air heaters, solar cookers, solar dryers, etc, were

developed and deployed in the country. Solar water heaters of capacity

ranging from 50 litre per day to 2,10,000 litre per day for domestic, commercial
and industrial applications were installed in the country. Over 8,00,000 sq
mt of collector area was installed ranging from domestic water heaters of 50HX)litre capacity in over one lakh homes to industrial and commercial systems
of up to 2,4{),000 litres of hot water per day. The manufacturing base of solar
water heaters is now well established in the country with 80 manufacturers
employing BIS standards.
Around half-a-million box type solar cookers were deployed. Solar
concentrating collectors were also installed for generating steam and in this
regard the world's largest solar steam cooking systems for cooking food for
15,000 people was installed in October 2002 at Tirumala, in Andhra Pradesh.
Efforts are also on to make use of solar passive architecture principles to
reduce energy consumption and improve comfort conditions in buildings.
Greenhouse Technology for growing vegetables, flowers, etc, in cold climate
regions has also been developed and introduced in the market.

Energy

247

More than 100 companies are involved in the manufacture of solar

thermal systems and devices.
SOLAR PHOTOVOLTAIC PROGRAMME

Solar phototovoltaic (SPY) systems have emerged as a useful power source

in remote areas for applications such as lighting, water pumping and telecommunications.
The technology for the manufacture of SPY cells and modules has been
developed and commercialised by Central Electronics Limited on the basis
(If domestic R&D. About 35 MW of module production has been achieved,
whIch accounts for five per cent of the global production. More than 50
companies are involved in the production of Spy systems. SPY modules of
54.5 MWP capacity have so far been exported to various countries.
Over one million Spy systems aggregating to about 66.5 MW capacity
have been deployed. Solar lighting systems are being used in more than
7,70,000 households. About 2,20,000 rural radio-telephones are being powered
by SPY systems.
Under the Spy programme about 5.38 lakh solar lanterns; 3.07 lakh solar
home lighting systems; 52,102 solar street lighting systems; 6,452 solar water
pumping systems and non-grid power plants of 0.851 MWp aggregate
capacity have been installed till March 2004.
GRID-INTERACTIVE RENEWABLE POWER

A total grid-interactive power generating capacity of 4,802 MW has been

added by 31 March 2004 from renewables, mainly wind, small hydro and
biomass. Most of this capacity has come throu~ commercial projects.
WIND POWER

While the gross wind power potential is estimated at around 45,000 MW,
the potential that can be tapped at present is limited to about 13,000 MW
This is because the feasible potential is governed by grid capacity. A capacity
of 2,483 MW has so far been added through wind, which places India in the
fifth position globally after Germany, USA, Denmark and Spain.
BIOMASS POWER

The Biomass Power Programme especially through cogeneration projects aims

at utilisation of a variety of biomass materials, agro-industrial residues,. energy
plantations besides agro residues for power generation through the adoption
of conversion technologies like combustion, pyrolysis, gasification, etc. The
plants utilise gas I steam turbines, dual-fuel/gas engines or combinations
thereof, either for generation of power alone or cogeneration of power, for
either captive use or sale to grid.
The potential of biomass power in the country has been estimated at
about 19,500 MW, including surplus power generation potential of around
3,500 MW from bagasse-based cogeneration from existing sugar mills in the

24R

India 2005

country. So far, a total capacity of 614 MW biomass based power-generating

systems has been installed in the country. Projects of a capacity of 643 MW
are under installation.
BIOMASS GASIFIER PROGRAMME

Gasifiers using biomass and wood chips have been developed for generating
thermal energy for industrial applications, water pumping and decentralised
power generation in kilo watt range. Biomass gasifiers aggregating to 60 MW
capacity haw so far been installed in the country till March 2004.
SMALL HYDRO POWEH

The potential for Small Hydro Power (SHP) has been assessed aground
I5,OaO MW. By 31 March 2004, a total of 1,603 MW capacity had been set
up. In addition, projects aggregating to 569 MW capacity are under various
stages of implementation.

ENERGY FROM URBAN AND INDUSTRIAL WASTES

The National Programme on 'Energy Recowry from Urban, Municipal and
Industrial Wastes' aims at promoting technologies for processing, treatment
of the wastes with attendant benefits of waste reduction, abatement of
environmental pollution and recovery of useful energy / power. The Ministry
is also executing a UNDP / GEF assisted Project on 'Dewlopment of high-rate
biomethall.ltion processes as a means of reducing greenhouse gasses emission'.
Twenty-fiw 'waste-to-energy' projects for generation of biogas/power for
captive use / sall' to grid. aggregating to 42 MWe capacity, have been
commissioned till March 2004.

NEW TECHNOLOGIES
Hydrogen Energy : A programme covering research and development
pertaining to production of hydrogen, its storage, safety, applications, etc., has
been undertaken in thl' country with a vit'w to create an alternate source of
cnt'rgy. A National Hydrogen Energy Board has been set up to guide and
OVl'rsce and preparation of a Hydrogen Energy Road Map and its
implementation through a National Programme on Hydrogen Energy.
Applications of hydrogen difl'ctly in internal combustion engines for transport
application as well as dccentralised power generation and also in fuel cells
for stationary, mobile and transport applications have been demonstrated.
Hydrogen powered two wheelers, threl' wheelers, catalytic combustors, and
power-generating sets haw been developed and demonstrated in the country.
A pilot project for field-tl'sting of 10 hydrogen-fueled motorcycles is under
progress. A pre-commercial pilot plant for production of hydrogen from
distillery waste has been set up.
Fuel Cells : Research and Development Projects for development of different
types of fuel cells likl' Proton Exchange Membrane Fuel Cells (PEMFC),
PhosphOriC Acid Fuel Cplls (PAFC), Solid Oxide Fuel Cells (SOFC), Direct
Methanol Fu('1 Cell (DMFC), Direct Ethanol Fuel Cells (DEFC) and Molten

Energy

249

Carbonate Fuel Cells (MCFC); components and materials for fuel cells
including control and instrumentation system are being supported. rAFC fuel
cell stacks up to 25 kW have been developed and demonstrated by BHEL
for power generation. SPIC Science foundation has developed PEMFC stacks
lip to five kW capacity for vehicular application and decentralised power
generation. A fuel cell-battery hybrid van has also been developed and
demonstrated by SrIC Scienn' Foundation. A 3kW capacity PEMFC power
pack, developed by SPTC Science Foundation, to work as an un-interrupted
powpr supply is currently undergoing modification for improving its
performance. The Indian Institute of Chemical Technology, Hyderabad is
working on the development of a 50 kW fuel cell system, using methanol
which will be reformed into hydrogen.
Geothermal Energy: Assessment of Geothermal energy potential of selected
sites in Jammu and Kashmir, Himachal Pradesh, Uttaranchal, Jharkhand and
Chhattisgarh has been / is being undertaken. Son1' more field investigations
induding deep drilling at potential geothermal sites would be required before
the sites can be taken up for dewlopment for power generation.
Ocean Energy: The various forms of ocean energy are waves, ocean energy
thermal conversion, current and tides. Of these, tidal energy has the potential
for being harnessed for power generation, in the medium term. A feasibility
H'Port for setting up a tidal power project at Durgaduani Creek in Sunderban..c.;
Mca of West Bengal has been examined and it is found that current technology
levels cannot produce electricity at economically acceptable rates.
Bio Fuels: Several R&D projects have been taken up in the country to develop
technOlogies to convert different non-edible vegetable oils to bio-diesel.
Attempts are being made to launch an operational programme on the use of
these bio-fuels in the transport sector. Field trials with ethanol blends in petrol
ilnd diesel have also been taken up under several projects financed by the
Ministry.
Battery Operated Vehicles : R&D projects on development of high energy
density batteries such as nickel-metal-hydride, lithium-ion and lithium polymer
electrolyte batteries and super capacitors for BOVs are being supported.
Prototypes of nickel-metal-hydride batteries developed have been demonstrated
for operating an electric auto-wheeler.
Specialised Technical Institutions : The Ministry has established the
following institutions for R&D and related applications : (a) Solar Energy
Centre : The Solar Energy Centre is being reactivated to act as a tec~cal
focal point for the development of cutting edge solar technologies; (b) Sardar
Swaran Singh National Institute of Renewable Energy (SSS-NIRE) : To
conduct R&D in renewable energy; and (c) Centre for Wind Energy
Technology (C-WET) : Th serves as a technical focal point for the development
of wind power systems.
PUBLIC SECTOR UNDERTAKING
The Indian Renewable Energy Development Agency (lREDA)

A public

250

India 2005

sector Non-Banking Financial Company fin,mces grid-interactive renewable

power projects. It has a paid up share capital of Rs 325.35 crore as on 31
March 2004. The cumulative disbursements are of the order of Rs 3,426 crore.
Some projects have been commissioned and are generating electricity.

NEW THRUST TO RENEWABLE ENERGY PROGRAMMES

Major policy initiatives taken to encourage investment in renewable energy
include: (i) provision of fiscal and financial incentives under a wide range
ut programm('s being implemented by the Ministry; and (ii) simplification of
proceduT's for privale investment, including foreign direct investment for
renewable energy projects. Thl' fiscal incentives include exemption from excise
duty ilnd sales tax and concl'ssional custom duty on the import of material,
components and equipments uSl'd in renewable energy projects. 80 per cenl
dl'preciation in the first year is allowed in wind power projects. Fourteen
statl's have also announcl;'d facilitating policies in respect of various renewabll'
energy systems.

PETROLEUM AND NATURAL GAS

IMPORT OF CRUDE OIL AND PETROLEUM PRODUCTS
The gross import of crude oil and petroleum products (including imports by
private and parallel marketers) during 2003-04 was 98.42H MMT valued at
Rs 93,721 cron', whereas the net import of crude oil and petroleum products
(excluding export) during the same Yl'cU was R4.176 MMT valued at Rs 77,404
(TOre. The export of petroleum products including private parties was 14.252
MMT valued at Rs 16,317 crore.
GAIL (INDIA) LIMITED
GAIL (India) Limitl;'d is the largest natural gas processing, transmission and
distribution Company in India. The Company owns and operates a network
of over 5,200 kilometers of pipeline in all the four regions of the country,
supplying about 62.6 MMSCMD of gas per day as a fuel to power plants
for generation of about 5,500 MW of power, as feedstock for gas based
fertilizer plants to produce about 10 MMTPA of urea. Gas transmission and
distribution forms the bulk of GAIL business today followed by gas processing
for LPG production and production of petrochemicals (HDPE and LLDPE).
In the LPG area, GAll has seven plants in production in various parts
of the country with a total design capacity of over one million tonnes per
alIDum. Total liquid hydrocarbon production including LPG in 2003-04 was
13.63 lakh tonnes. Jamnagar-loni LPG Pipeline is 1,240 km long and is the
world's longest exclusive LPG pipeline with a capacity t~ carry 2.5 MMTPA
of LPG per annum passing through Gujarat, Rajasthan, Haryana, Delhi and
U.P. States.
GAJlTEl, the tdecom wing of GAIL has entered the telecom business
armed with two licenses, IP-I1 and ISP licenses having 50 per cent of the fibre
along pipeline extending from Chandigarh in north to Mumbai in west and

Energy

251

Vizag in south and covering major cities in the States of Uttar Pradesh, Madhya
Pradesh, Gujarat, Maharashtra, Rajasthan and Andhra Pradesh. GAILTEL
network presently covers over 8,000 kms cOllnecting 73 cities.
GAIL has taken notable initiatives in Joint Venture companies, namely,
Mahanagar Gas Limitt'd (JV with British Gas of UK) in Mumbai and
InJraprastha Gas Limited (JV with Bharat Petroleum Corporation Limited)
in Delhi for City Gas Distribution Schemes including CNG for the transport
sector Besides, GAIL has an equity participation with IOC ONGC and BPCL
in M / s Petronet LNG Limited for setting up LNC terminals at Dahej in
Gujarat and Kochi in Kerala for import of LNC in the country. GAIL has joined
a coTlsortium, namely, Gujarat State Energy Generation Limited (GSEG) of
Cujarat State Enterprises and KRIBHCO for a 156 MW gas-bascd power plant
at Hazira in Gujarat. The power plant was commissioned in Dccembl'r 2001.
On 29 November 2002, GAIL entert,d into a Joint Vt'nture agrl.'Cment with
11f'CI, to distribute Piped Natural Gas, CNG and Auto LPG in the cities of
Andhra Pradesh. The TV has been incorporated as Bhagyanagar Gas Limited.

PRODUCTION OF INDIGENOUS CRUDEOIL AND NATURAL GAS

Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited (OIL)
and private / joint venture companies arc, engaged in exploration and production
of crude oil and natural gas in the country. The total production of crude
oil and natural gas in the country during 2003-04 was 33.378 Million Metric
lonnes (MMT) and 31,956 Million Cubic Metres (MCM) respectively which
is about om' per cent higher in case of crude oil and 1.8 per cent higher for
natural gas production over the previous year. The main reasons for increase
in oil and gas production during 2003-04 were implementation of various
IOR/EOR scheme by ONGC including redevelopment of Mumbai High field
and increase in gas production from few fields operated by private / joint
venture companies. During the year 2003-04 the shart~ of crude oil production
for ONGe, OIL and private/joint venture companies was about 78.1 per cent
1,1.0 per cent and 12.9 per cent respectively, while for gas production, the share
of ONGe, OIL and private / joint venture companies was about 73.8 per cent,
5.9 per cent and 20.3 per cent respectively.

IMPORT OF CRUDE OIL AND PETROLEUM PRODUCTS

The gross import of crude oil and petroleum products (including imports by
private and parallel marketers) during 2003-04 was 98.331 MMT valued at
Rs 93,205 crore, whereas the net import of crude oil and petroleum products
during the same year was 83.711 MMT valued at Rs 76,424 crore, The export
of petroleum products including private parties was 14,620 MMT valued at
Rs 16,781 crore.

CONSERVATION OF PETROLEUM PRODUCTS AND ENVIRONMENTAL

PROTECTION
After coal, petroleum products remain the primary energy source in India,
with its consumption increasing at a very steep rate from 3.5 MMT in 1950-

252

India 2005

51 to about 104.13 MMT in 20()2-03. It has reached a level of about 107.59

MMT in 2003-04.

Sale of ethanol-blended petrol has already started in the country. As on

date, the sale of ethanol-bll'ndt'd pltrol is being done in 10 States and thn:..>t>
Ufs. Th(. programme may tw t'xpanded further depending on the availability
of ethanol. Tht, issue regarding enhancement of quantity of ethanol to the
extent of 10 per cent can also be considered by the Government in future
if dhanol in sufficient lJuantity is available for the purpose on a sustainable
basis.
Another alternative fuel for conservation of petroleum product is biodiesl'l which is vegl'table oil/animal fat which can be mixed with conventional
diesel to be used as fuel. R&D studies have indicated that a bio-diesel blend
enhances the life of engine and results in comparatively lower pollution. In
India, two pilot projects have been set up under tht, guidance of the Ministry
of Petroleum and Natural Gas. MIs Hindusthan Petroleum Corporation
Limited (HPCl) have sd up an experimental project at Mumbai involving
25 BEST buses using blends of five per cent, 10 per cent and 20 per cent
of bio-diesel in diesel. Another pilot-project involving use of five per cent biodiesel hlended in diesel has been started at Rewari, Haryana, since 6 April
2004. In the initial phase, 10 buses have started plying on five per cent bindiesel blte'nds from the Gurgaon Depot of Haryana Roadways, along with 10
rcfNenCl' buses on diesel fuel. It is planned to increase the trials of five per
cent bio-diesel bll'l1ds gradually to 20 buses.
For promotion of hydrogen as a fuel, a roadmap has been set up by
Indian Oil Corporation Limited, Research and Development Centre flOC
(R&D)I, the nodal agency identified for hydrogen utilisation in scooters, threewheelers and buses.
ENGINEERS INDIA LIMITED
Since its establishment in ]965, Engineers India Limited (Ell) has created an
impressive track record of implementing a large number of projects in India
and abroad. It has undertaken over 4,300 assignments and more than 320
major projects, with a total installed cost of more than $ 35 billion.
ElL has been associated with 40 major refinery projects including
grassroots projects as well as expansion I revamp projects. ElL provides a wide
range of design, engineering, procurement, construction, management,
commissioning assistance and project management services as well as EPC
services. It also provides specialised services in domains such as environment,
heat and mass transfer, information technology (IT), risk analysis and advance
control and optimisation for the petroleum and other process industries
including petroleum refineries, petrochemicals, oil and gas processing projects,
pipelines, offshore platforms and submarine pipelines, fertilizers, metallurgy,
etc. ElL now provides services for number of infrastructure areas also
including highways and bridges, intelligent buildings, urban development,
airports, etc. Thus, Ell today is a Total Solutions Consultancy Company and
EPC Contractor.

Energy

253

Quality management system with r~spect to Ell's services has been

upgraded to 150-9001 :2000. Ell uses state-of-the-art engineering tools including
PDS/PDMS and latest software to provide quality engineering. The
communication and IT infrastructure has been strengthened with substantial
investment in hardware, software and networking.

12

Environment

THE Ministry of Environment and Forests is primarily concerned with the

implementation of policies and programmes relating to conservation of the
country's natural resourcl'S including lakes and rivers, its biodiversity, forests
and wildlife, l'nsuring the welfare of its animals and prevention and
abatement of pollution. While implementing these policies and programmes,
the Ministry is guided by the principll' of sustainable development and
l'nhancement of human well-being. The Ministry also serves as tht' nodal
agency in the country for th( United Nations Environment Programme
(UNEP), South Asia Co-operative Environment Programmt' (SACEP),
International Centre for Integratt'd Mountain Development (ICIMOD) and for
the follow-up of thl' United Nations' Conference on Environment and
Developml'llt (UNCED). The Ministry is also entrusted with the issues relating
to multilateral bodies such as the Commission on Sustainable Development
(CSD), Global Environment Facility (GEF) and of regional bodies like
Economic and Social Council for Asia and Pacific (ESCAP) and South Asian
Association for Regional Cooperation (SAARC) on matters pertaining to
envi ronment.
Conservation and survey of flora, fauna, forests and wildlife, prevention
and control of pollution, afforestation and regeneration of degradt'd areas and
protection of environment are the mandates of the Ministry. These objectives
are sought to be fulfilled through environmental impact assessment, ecoregeneration, assistance to organisations implementing environmental and
forestry programmes, induding animal welfare programmes, promotion of
environmental and forestry research, education and training, dissemination of
environmental information and international cooperation and creation of
environmental awareness. These objectives are well supported by a set of
legislative and regulatory measures aimed at the preservation and protection
of environment.

SURVEY OF NATURAL RESOURCES

Botanical Survey of India (BSI) was established in 1890 with the basic objective
of carrying out floristic surveys. It was~revlve(f" and reorganised in 1954..
During the successive plan periods, its functions have been graawllY
expanded. A thorough review of the objectives and perspectives was undertaken
in 2002. The Botanical Survey of India undertakes exploration, inventorisation
and documentation of phytodiversity in general and protected areas, hotspots,
fragile ecosystems and sacred groves in particular and publication of National,
State and District Floras. BSI has its headquarters at _!<.Q.lkata.and nine circle
offices located in different regions of the country.
The Zoological Survey of India (Z51), a premier institute under the
MinIstry has been undertaking survey, exploration and research leading to

Environment

255

the advancement of knowledge on the exceptionally rich faunal diversity of

the country since its inception i~J9J6. With its headquarters~olkata,and
sixteen Regional Stations locate<fIn 'aifferent parts of the country, ZSI in recent
vears, has reoriented its plan of work by grouping the survey and studies
under five major programmes, viz" (i) Fauna of States; (ii) Fauna of
Conservation Areas; (iii) Fauna of important ecosystems; (iv) Status Survey
of endangered species; and (v) Ecological studies. Besides ZSI undertakes
regular faunistic survey tours of the entire country. Eighty two extensive
faunai surveys were undertaken to different States/Union Territories
including important ecosystems and some selected conservation / protected
areas during 2003-04.
The Forest Survey of India (FSI), an organisation of Ministry, is engaged
in generating information and database on forest COVel and forest resources
in the country besides providing training, research and extension. Forest
Survey of India was established in 1981 as a successor to "Pre-investment
Survey of Forest Resources" (PISFR), a project initiated in 1965 by Government
of India and sponsored by FAO and UNDP. The main objective of PISFR was
to ascertain the availability of raw material for establishment of wood based
industries in selected areas of the country. Further, the National Commission
OJ) Agriculture (NeA), in its report in 1976, recommended the creation of a
National Forest Survey Organisationror collection of data on scientific lines
through country-wide comprehensive forest resources survey at regular
intervals. Consequently, PISFR was reorganised into FSI. After a critical review
of activities undertaken by FSI, Government in 1986, redefined its mandate
in order to make it more purposeful and relevant to the needs of the country.
The present mandat!:' of FS] is to prepare a comprehensive State of Forest
Report (SFR) including National Vegetation Map (NVM) once in every two
years. FSI will also prepare thematic maps through use of remote sensing data
with minimum essential ground truth verification (most ground-truth
verification would be done by the respective state governments) on a tenyear cycle.
The headquarters of the organisation is at Dehradun. The activities of
FSI include : (i) Forest Cover Mapping; (ii) Inventory Data Processing;
(iii) Training; (iv) Creation of National Basic Forest Inventory System (NBFIS);
(v) Special Studies; and (vi) Consultancy. 'The organisation has four zones,
each headed by a Regional Director, located at Shirnla, Kolkata, Nagpur and
Bangalore.

BIOSPHERE RESERVES
Biosphere Reserves are areas of terrestrial and coastal ecosystems which are
internationally recognised within the framework of UNESCO's Man and
Biosphere (MAB) Programme, These reserves are required to meet a minimal
set of criteria and adhere to a minimal set of conditions before being admitted
to the World Network of Biosphere Reserve designated by UNESCO for

India 2005

256

inclusion in the World Network of Biosphere Reserves. The world's major

ecosystf'm types and landscapes are represented in this Network. The goal
is to facilitate conservation of representative landscapes and their immense
biological diversity and cultural heritage, foster economic and human
development which is culturally and ecologically sustainabll;' and to provide
support for research, monitoring, education and information exchange. So far,
13 Biosphl're Reserves have been set up. They are: Nilgiri, Nanda Devi,
-N~'k~~k, G~~t-Nicobar, Gulf of Mannt'r, Manas, Sunderbans, Similipal, Dibru
Daikhowa, Dehong Deband, Panchmarhi, Kanchanjanga and Agasthyamalai.
Out of 13 Biosphere reserves... threc haw been recognjsed on World Network
of Biosphere Reserves by UNESCO, namely, Nilgiri, Sunderbans and Gulf of
Mani-:ar.
.
--_._ ,,'
WETLANDS, MANGROVES AND CORAL REEFS
Wetlands are lands transitional between terrestrial and aquatic system where
thl;' watl'r tabl(, is usually or near the water surface and land is covered by
shallow water. Thl'y are life support systems for people living around and
are effective in flood control, wastl;' water treatment, reducing sediment,
recharging of aquifers and also winter resort for a variety of birds for shelter
and breeding and provide a suitable habitat for fish and other flora and fauna.
TIll'y also act as buffer against the devastating effect of hurricanes and
cyclones, stabilise the shore-line and act as bulwark against the encroachment
by the sea and check soil erosion. Apart from that, they are valuable for their
educational and scientific interest and provide durable timber, fuelwood,
protein rich fodder fm cattle, edible fruits, vegetables and traditional medicines.
Identification of wetlands can be attributed to the following three main
factors, viz., (i) When an area is permanently or periodically inundated;
(ii) When an area supports hydrophytic vegetation; (iii) When an area has
hydric soils that are saturated or flooded for a sufficiently long period to
become anaerobic in the upper layers.
On these criteria, Ramsar Convention defines Wetlands as areas of marsh
or fen, peat-land or water, whether artificial or natural, permanent or
temporary, with the water that is static or flowing, a fresh brackish or salt
including areas of marine water, the depth of which at low tide does not
exceed six meter. Mangroves, corals, estuaries, bays, creeks, flood plans, sea
grasses, lakes, etc., are covered under this definition.
Taking into consideration deterioration of water bodies, a programme
on conservation of Wetlands was initiated in 1987. At present there are 27
identified wetlands covering 15 States. States Steering Committees have been
constituted in all the concerned States under the chairmanship of Chief
Secretary having members from various subject matter departments relating
to wetland con..c;ervation in the State.

M~:v.e_pJants

are those that survive rugh salinity, tidal extremes,

stron~' wind velocity, high temperature and muddy anaerobic soil-a

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combination of conditions hostilt, for other plants. Mangroves are successfully

adopted if.colonizing saline intertidal zone at the interfac(' betwpen the land
and sea along the deltas, shallow lagoons, mud flats, bays and backwaters
in tropical and subtropical sheltered coast lines. Mangroves not only protect
the coastal communities from the fury of cyclones and coastal storms, but also
promote sustainable fisheries and prpvent sea erosion. Of latc, tht' fragile
mangrove ecosystems have been subjected to various anthropogenic and biotic
pn'<;sures resulting in habitat destruction, loss of bio-diversity, affecting a
avifauna and their migration paths. The Ministry of Environment and Forest
launched Mangrove Conservation Programml' in 19R7 and, has so far,
idt'ntified 35 mangrove areas for intensive conservation and management.
These mangrove areas are identified on the recommendation of National
('ommittee on Mangroves and Coral Reefs on the basis of their unique
l'cosystems, biodiversity, etc. 100 per cent central assistance is given under
Managl'ment Action Plans (MAPs) for undertaking activities like raising
mangrove plantains, protection, catchml~nt area treatment, siltation control,
pollution abatement, biodiversity conservation, sustainable resource utilisation,
survey and demarcation, education and awareness, etc. This is further
supplemented by Research and developmental activities.
The mangroves in India comprise 69 species under 42 genera and 28
families. India is home to some of the best mangroves in the world. Thl'
Ministry has established a National Mangrove Genetic Resources Centre in
Orissa. Two mangrove species are endemic to India. ~~eli is Rhizophora
1I1111llmalllyana, occurring in Pichavaram, Tamil Nadu. An?ther species. in
HcrifiCrii::7(iimf;;;;;s that eXIsts only in Bhitarkanika of Orissa. Sunderbans
(WesT Bengal) have been included in the World List of Biosphere Reserves
by UNESCO. They represent the largest stretch of mangroves in the country.
--~--'-.

.......,--~-

The two separate schemes on Wetlands and Mangroves have now been
merged and is to be continued during the Tenth Five Year Plan. All the
concerned States/UTs have constituted Streering Committees to monitor
implementation of Management Action Plans for mangroves and coral reefs.
Coral reefs are shallow-water tropical marine ecosystems, characterised
by high biomass production and rich floral and faunal diversity. In the Indian

sub-continent the reefs are distributed along the East and West Coast of
restricted places. Fringing reefs are found iri the Gulf of Mannar and Palk
Bay as well as Andaman and Nicobar Islands. Platform reefs are seen along
the Gulf of Kutchchh and Atoll reefs are found in the Lakshadw'eep
Archipelago. Four coral reefs, namely, Gulf of Mannar, Andaman and Nicobar
islands, Lakshadweep Islands and Gulf of Kutchchh have been identified for
conservation and management. The Ministry has also been identified as the
national focal point of International Coral Reef Initiative (ICRI), Global Coral
Reef MOnitoring Network (GCRMN) as well as Coral Reef Degraded Action
in Indian Ocean (CORDIO). Gulf of Mannar coral ~j ~~._~_Ta~.I._~_~~u
has been included in the worla liSt or-bioSphere-reserves of UNESCO. '-- ',_.

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India 2005

BIODIVERSITY

Biodiversity is the variability among living organisms and the ecological

complexes of which they are part, including diversity within and between
species and ecosystems. Biodiversity has direct consumptive value in food,
agriculture, medicine, and in industry. India is one of the 17 mega diverse
countries which together possess 60 to 70 per cent of the world's biodiversity.
India ratified the International Convention on Biodiversity (CBD) on
18 February 1994 and became party to the convention in May 1994. The CBO
is an international legal instrument for promoting conservation and sustainable
USt' of biological diversity taking into account the need to share cost and
benefit betwet'n developed and developing countries and the ways and mean~
to support innovation by local people. It was resolved to evolve an
International regime on access to genetic resources and benefit sharing with
the aim of adopting an instrument/instruments to effectively implement tht'
provisions of CBD.
The National Policy and Action Strategy on Biodiversity, which seeks
to consolidate the on-going efforts of con..ervation and sustainable use of
biological diversity and to establish a policy and programme regime for the
purpose, was released by the Ministry on 6 January 2000. The Bio-Diversity
Bill 20m Introduced in Parliament in May 2000, was passed by the Lok Sabha
on 2 December and by the Rajya Sabha on 11 December 2002. The main intent
of the legislation is to protect India's rich biodiversity and associated
knowledge against their use by foreign individuals and organisations without
sharing the benefits arising out of such use, and to check biopiracy.

FORESTS
Forests are a renewable source and contribute substantially to economic
development. They playa major role in enhancing the quality of environment.
The forest cover in the country is 6,75,538 sq km and constitutes 20.55 ~r
cent of its__geQgrapbjcal.~f this, dense forest constitutes 4,16,809 sq krn
(12.68 per cent) and open forest 2,58,729 sq km (7.87 ~r cent). A comparison
ofTorest cover assessment of 2001 with that of r999 reveals that there is an
overall increase of 38,245 sq km or six per cent. This constitutes an increase
of 1.16 per cent of geographical area. The increase in dense forest cover with
respect to 1999 assessment is 34,580 sq km (nine per cent) and increase in
open forest cover is 3,665 sq krn (1.4 per cent).
According to State of Forest Report, 2001 the mangrove cover in the
country occupies an area of 4,482 sq krn (0.14 per cent) of geographic area
of which 2,859 sq krn is dense mangroves and 1,623 sq krn is open mangroves.
The total tree / forest cover for the country (national area with 70 per
cent canopy density) has been estimated as 81,472 sq krn or about 2.48
per cent.

FOREST POLICY AND LAW

India is one of the few countries which has a forest policy since 1894.J!._was

p-

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259

revised in 1952 and again in 1988. The main plank of the forest policy is
protection, conservation and development of forests. It" aims are: (i) maintenance
of environmental stability through preservation and restoration of ecological
halance; (ii) conservation of natural heritage; (iii) check on soil erosion and
denudation in catchment area of rivers, lakes and reservoirs; (iv) check on
extension of sand dunes in desert areas of Rajasthan and along coastal tracts;
(v) substantial increase in forest tree cover through massive afforestation and
social forestry programmes; (vi) steps to meet requirement') of fuelwood,
fodder, minor forest produce and soil timber of rural and tribal populations;
(vii) increase in productivity of forest to meet the national need;
(viii) encouragement to efficient utilisation of forest produce and optimum
substitution of wood; and (ix) steps to create massive people's movement with
involvement of women to achieve the objectives and minimise pressure on
existing forest. As forestry has undergone many conceptual changes since the
adoption of Indian Forest Act, 1927, it was decided to bring suitable
amendments to this Act. The Ministry of Environment and Forests has
constituted the National Forest Commission on 7 February 2003 to review the
working of Forests and Wildlife Sector. The tenure of the Commission is of
two years. A National Forestry Action Programme (NFAP) has also been
formulated as a comprehensive strategic long-term plan for the next 20 years.
The objective of the NFAP is to bring one-third of the area of the country
under tree / forest cover and to arrest deforestation.
Under the provisions of the Forest (Conservation) Act, 1980, prior
approval of the Central Government is required for diversion of forest lands
for non-forest purposes. The Regional Chief Conservator of Forests are
empowered to decide cases on diversion of forestland for non-forestry
purposes up to the extent of five hectares except mining and regularisation
of encroachment. They have also been empowered to examine cases involving
forestland from five hectares to 20 hectares in consultation with the State
Advisory Group. The Government has notified Forest (Conservation) Rules,
2003 to supersede the Rules made in 1981.
In 1990, the Government issued guidelines to involve the village
communities in the development and protection of degraded forests on the
basis of their taking a share of the usufruct from such areas. The concept of
Joint Forest Management OFM) was accordingly initiated. The JFM Programme
was pursued vigorously and as a result JFM .resolution has now been adopted
in all the 28 States. 84,632 JFM Committees have been formed and 17.33
million hectares forest area have been brought under JFM Programme. About
85.28 Jakh families are involved in the Programme all over the country.
INTEGRATED FOREST PROTECI10N SCHEME
By merging the two schemes, 'Forest Fire Control and Management' and

'Bridging of Infrastructure Gaps in the Forestry Sector in the North Eastern

Region and Sikkim', a new Scheme 'Integrated Forest Protection Scheme' has
been formulated. The 100 per cent centrally-sponsored scheme is now being
extended to all the states and UTs during the Tenth Five Year Plan.

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India 200S

WILDLIFE
The National Wildlife Action Plan provides the framework of strategy as well
as programme for conservation of wildlife. The first National Wildlife Action
Plan (NWAP) of 1983 has been revised and the new Wildlife Action Plan (20022016) has been adopted. The Indian Board of Wildlife, headed by till' Prime
Minister, is th( apex advisory body overst'eing and guiding the implementation
of various schl'n1es for wildlife conservation. At present, thl' protl'cted area
network comprises 92_-,~_a_t~~)na.! parks and 500 sanctuaries covering an area
of 15.67 million hectares. The Wildlife (Prot('ction) Act,_.I~l_ adopted by all
States except Jammu and Kashmir (which has its own Act), governs wildlife
conSl'rvation and protection of endangered species. The Act prohibits trade
in rare and endangered species. An Intl'r-State Committee has been set up
t(l review the Wildlife (Protection) Act, 1972 and otlwr laws. India is iJ
signatory t(l the Convention on International Trade in Endangered Spe(ies
(CITES) of wild flnri! and fauna. India is also a signatory to the Memorandum
of Understanding concerning the conservation of Siberian Cranes. Thl'
Government provides financial and technical assistance to States for
development and improved management of national parks; protection of
wildlifp and control of poaching and illegal trade in wildlife products; {'codevelopment in areas around national parks and sanctuaries; conservation of
elephant and its habitat; and conservation of rhinos in Assam.
Under the Project Tiger, launchl'd on 1 ~pIj_I_lm_28LIiger Reserves
have been sd up in 17 States covering an area of about 37,761 sq km. Financial
assistanct' is provided for voluntary relocation of tribal families from th('
Protection Areas.
Under the Project Elephant, which was launched in February 1992, States
having frel-ranging population of wild elephants are being given financial
as well as technical and scientific assistance to ensure long-term survival of
identified viable populations of elephants in their natural habitats. Fourteen
Elephant Reserves have been set up during ,he year. A Central Zoo Authority
has been set up to look after the management of zoological parks in the
country. It coordinates the activities of different zoos set up in the country
and also supervises thl' exchange of animals on a scientific basis. A national
policy on zoos prepared by the AuthOrity provides appropriate directions to
the Govemml:'Ot and other zoo operators.
The Animal Welfare Division became a part of the Ministry of Environment
of Forests in July 2002. Earlier the Division was under the Ministry of Statistics
and Programml' Implementation. The mandate of Animal Welfare Division
is to prevent the infliction of unnecessary pain or suffering to animals. Under
the Prevention of Cruelty to Animals Act, 1960, a new set of rules namely,
Animal Birth Control (Dog) Rules, 2001 was notified on December 2002. The
main task of the Division is to implement effectively the various provisions
of Prevention of Cruelty to Animals Act, 1960. Under this Act, a number of
Rules have been framed for various purposes.

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Animal Welfare Board of India (AWBl) is a statutory body under Section

4 of tht' Prevention of Cruelty to Animals Act, 1960 with headquarters at
Chennai. Its basic mandate is to advise the Government on animal welfare
issues, and create awareness in animal welfare. AWBI gives financial assistance
to eligible Animal Welfare Organisations for Shelter Houses, Model Gaushalas
for setting up Bio-Gas Plants, Famine I Drought Relief, Earthquake Relief, etc.,
In various states. The number of Animal Welfare Organisations (AWOs)
registered with AWBI went up to 2,100 during the year.
So far State Animal Welfare Boards (SAWBs) have been constituted in
24 States! Uls.

'(

~NVIRONMENT

IMPACT ASSESSMENT

For sustainable development and optimal lise of natural resources,

environmental considerations are required to be integrated in planning,
designing and implementation of development projPcts. Environmental Impact
Assessment (EIA) is one of the proven management tools for incorporating
environmental concerns in development process and also in improved
decision making. The programme of ETA, in vogue in the Ministry for tht
last two decades was initiated with the appraisal of River Valley Projects.
The scope of appraisal was subsequently enlarged to cover other sectors like
industrial projects, thermal power plants, mining schemes and infrastructure
projcct1:i. To give legislative stahls to the procedure of impact assessment, EIA
was made mandatory since January 1994 for thirty categories of development
activities. For facilitating preparation of quality EIA reports, a Manual on EIA
has been prepared which is also useful to apprising agencies and decision
makers, both at Central and State Levels. Thc Ministry has initiated a number
of activities to streamline the appraisal process in terms of simplification of
prlJccdures, involvement of stakeholders through public hearing, regular
meetings of Expert Committct$, etc. This has resulted in expeditions decision
on dt'velopment projects. Some amendments have been made in the EIA and
Coastal Regulation Zone (CRZ) Notifications based on consultations with all
the stakeholders. To ensure transparency, the status of forest and environmental
cll'arance has been brought out on website : httpJI envfor.nic.i!_1 since
foebruary 1999. Depending on the nature of the project, certain safeguards are
recommended. For monitoring and timely implementation of safeguards
suggested, six regional offices of the Ministry have been set up at ShiIlong,
Bhubaneswar, Chandigarh, Bangalore, Lucknow and Bhopal. The Ministry has
taken steps from time to time to streamline and rationalise the environmental
clearance procedure by amending the ErA Notification and by formulating
policy measures.
Mining proposal involving major minerals with lease area more than five
hectares in areas overed by the Aravalli Noti.fication has been brought under
the purview of EIA Notification. Widening and strengthening of existing
canals with land acquisition up to a maximum of 20 metres (on both sides
put together) along the existing alignments provided such canals do not pass
through ecologically sensitive areas has been exempted from the purview of
ElA Notification.

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India 2005

The distance criteria, which was 25 krn in case of reserved forests and
ecologically sensitive areas, and 50 krn in case of interstate boundary has been
reduced to 15 km in both the cases. As a result power projects of co-generation
plants, captive power plants up to 250 MW (both coal and gas/Naptha based),
coal based plants up to 500 MW using fluidised bed technology, coal based
power plants up to 250 MW using conventional technology gas/naptha based
plants up to 500 MW and not falling within a critically polluted area, or within
a radius of 15 krn of boundary of reserved forests, ecologically sensitive areas
in any state can be considered and accorded environmental clearance by the
state governments themselves.
Environmental site clearance made mandatory for mega projects such
as green field airports, petrochemical complexes and refineries, isolated
petroleum product storages have been included along with petroleum
refineries including crude and product pipelines. Public hearing has been
exempted for offshore exploration activities, beyond 10 km from the nearest
habitated village boundary, goothans and ecologically sensitive areas such as
mangroves (with a minimum area of 1,000 sq mt) coral reefs, national parks,
marine parks, sanctuaries, reserve forests and breeding and spawning grounds
of fish and other marine life.
Draft Notification inviting suggestions / objections from all concerned
including the members of public on the proposed amendment in the EIA
Notification 1994 aims to include new projects relating to construction of
townships, industrial townships, settlement colonies, commercial complexes,
hotel complexes, hospitals, office complexes for 1,000 persons and above or
discharging sewage of 50,000 litres per day and above or with an investment
of Rs 50 crore and above and new industrial estates having an area of 50
hectares and above and the industrial estates irrespective of area if their
pollution potential is high, are proposed to be brought under the purview
of Environmental Impact Assessment Notification. The suggestions and
objections received in response to the draft notification is under examination.
In order to improve the environmental clearance process and to make
it more effective and time-bound, the Ministry of Environment and Forests
has undertaken a review of Environmental clearance under the World Bank
assisted Environmental Management Capacity Building (EMCB) project.
For the purpose of protecting and conserving the coastal environment
the Ministry had issued the Coastal Regulation Zone (CRZ) Notification. on
19 February 1991, declaring coastal stretches of seas, bays, estuaries, creeks,
rivers and back waters which are influenced by tidal action (on the land ward
side), up to 500 metres from the high tide line and the inter-tidal zone as
the Coastal Regulation Zone. The Notification imposes restrictions on the
setting up and expansion of industries and operations or process, etc., in the
Coastal Regulation Zone.

PREVENTION AND CONTROL OF POLLUTION

Realising the deteriorating air and water quality, increasing vehicular emission

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263

and higher noise levels the Ministry adopted policy for abatement of pollution
which provides multi-pronged strategies in the form of regulations, legislations,
agreements, fiscal incentives and other measures. Over the years the thrust
has shifted from curative measures to pollution prevention and control
through adoption of dean and low-waste technology, re-use and recycling,
natural resource accounting, environmental audit and human resource
dt'velopment. To give effect to environmental measures and policies for
pollution control, various steps have been initiated which include stringent
n'gulations, development of environmental standards, control of vehicular
pollution, spatial environmental planning induding Industrial Estates and
preparation of Zoning Atlas. The scheme on Development and Promotion of
Clean Technologies, therefore, aims at promoting such tE'chnologies and
strategies.
An "Eco-mark" label has been introduced to label consumer products
that are environment-friendly. So far, the Government has issued 19 notifications
on different products criteria. Submission of an Environmental Statement by
polluting units seeking consent either under the Water (Prevention and
Control of Pollution) Act, 1974 or the Air (Prevention and Control of Pollution)
Act, 1981 or both and the Authorisation under the Hazardous Wastes
(Management and Handling) Rules, 1989 has been made mandatory through
a Gazette Notification of April 1993 under the Environment (Protection) Act,
1l}86. The primary benefit of environmental audit is that it ensures costl'ffective compliance of laws, standards, rE'gulations and company policies, etc.
The policy statement for abatement of pollution lays emphasis on
preventive aspects of pollution abatement and promotion of technologies to
reduce the pollution. As a part of the Industrial Pollution Abatement through
preventive strategies, financial assistance is being provided for establishment
and running of waste minimization circles in clusters of small scale industries,
capacity building in areas of cleaner production, establishment of demonstration
units in selected industrial sectors, etc. The programme is being funded
through National Productivity Council who have pioneered in the activity.
A Network of 295 Ambient Air Quality Monitoring Stations covering 90
towns I cities all over the country has been set up by Central Pollution Control
Board in coordination with the State Pollution Control Boards I Pollution
Control Committees and other Institutions for carrying out regular monitOring.
The major objectives of the programme are : (i) to ascertain whether the
notified ambient air quality standards are maintained; (ii) to control and
regulate pollution from various sources; (iii) to understand the natural
cleansing process undergoing in the environment through pollution dilution,
dispersion, wind based movement, dry deposition, precipitation and chemical
transformation of pollutants generated; and (iv) health impacts.
Under National Air Quality Monitoring Programme (NAMP), four air
pollutants viz., Sulphur Dioxide (S02)' Oxides of Nitrogen as NO", Suspended
Particulate Matter (SPM) and Respirable Suspended Particulate Matter (RSPMI

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India 2005

PM I")' have been identified for regular monitoring at all the locations. Besides
this, additional parameters such as Respirable Lead and other toxic trace
metals and Polycyclic Aromatic Hydrocarbons (PAHs) are also being monitored
in Sl'wn metro-cities of the country. The monitoring of meteorological
parameters such as wind speed and direction, relative humidity and tempcraturp
was also integrated with the monitoring of air quality. The monitoring of
pollutants is carried out for 24 hours with a frequency of twice a wel'k, to
have 104 observations in a vear.
As v(:,hicular emissions is tlw major caust' for deterioration of urban
ambil'nt air quality, Ministry of Environment and Forests is facilitating and
courdinating controlling of vehicular pollution in the field with the concerned
Ministries and its associat{'d bodies/ organisations including the Ministry of
Surface Transport, the Ministry of Petroleum and Natural Gas and the
Ministry of Industry in the areas such as up-gradation of automobile
technology, improvement in fuel quality, expansion of urban public transport
systems and promotion of integrated traffic management, de. The Gross
Emission Standards for vehicles have been pn'scribed from time to time and
a road map is prepared to improve the quality of fuel.
The Ministry has also been providing inputs for Harmonising the
Standards for Vehicles under WP 29 (World Forum for Harmonization of
Vehicle Regulations).
CENTRAL POLLUTION CONTROL BOARD

The Central Pollution Control Board (CPCB), an autonomous body of the

Ministry, was set up in Septembl'f 1974, under the provisions of the Water
(Prt'vention and Control of Pollution) Act, 1974. It coordinates the activities
of the State Pollution Control Boards (SPCBs) and Pollution Control Committees
(pees), and also advises the Central Government on all matters concerning
the prevention and control of environmental pollution. CPCB, SPCBs and
pecs are responsible for implementing the legislation, regulations and
guidelines relating to prevention and control of pollution; they also develop
rules and rl'gulations which prt!scribt' the standards for emissions and
effluents of air and water pollutants and noise levels. CPCB also provides
technical services to the Ministry for implementing the provisions of the
Environment (Protection) Act, 1986.
Seventeen categories of heavily polluting industries have been identified.
They are: cement, thermal power plant, distilleries, sugar, fertiliser, integrated
iron and steel, oil refineries, pulp and paper, petrochemicals, pesticides,
tanneries, basic drugs and pharmaceuticals, dye and dye intermediates,
caustic soda, zinc smelter, copper smelter and aluminium smelter. Out of a
total of 2,155 units identified so far under these categories, 1,877 units have
inc;talled adt'quate facilities for pollution control, 225 units have been closed
down and remaining 53 industries are defaulters. Legal actionc; under
the Environment (Protection) Act, 1986 were taken against all defaulting
units.

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The CPCB in collaboration with the Sl'CBs monitor:; the quality of fresh
water resources through a network of 784 monitoring stations located all over
the country. Of thesl', 414 stations are on rivers, 38 on lakes, 25 on
groundwater and 30 are situatl'd on other water bodies like canals, creeks
and drains.
Under the National Ambient Air Quality Monitoring Programme, 290
stations covering over 64 citil's/ towns are being monitorl'd by the CPCB.
MANAGEMENT OF HAZARDOUS SUBSTANCES
Hazardous Substances Management Division is the nodal point within the
Ministry for planning and over-seeing the implementation of policies and
programmes on managt'mcnt of hazardous substances and chemical
pml'rgencics. The objective is to promote sate handling, management and use
ot hazardous substances including hazardous chemicals and hazardous wastes
in order to prevent potential damage to health and environment. The activities
are carried oul under thrt;'(' thrust areas, i.e., Chemical Safety, Sound
Management of Hazardous Wastes and MuniCipal Solid Wastes. Various Rules
have bl'en notified to ensure environmentally sound management of hazardous
substances and wastes in the country.
The Rules notified are implemented in association with CPCB/SPCBs/
I'CCs and regular monitoring is carried out by the Ministry. The Rules are
also modified / amended from time to time to rationalise and streamline the
policies and programmes to ensure environmentally sOlmd management of
hazardous substances.
A Central Control Room has been set-up in the Ministry to deal with
emergencies arising from hazardous chemicals. A Crisis Alert System has also
been established. A Red Book entitled Central Crisis Group Alert System
containing names, addresses and telephone numbers of Central and State
Authorities and Experts to be contacted in case of chemical emergencies has
been published and is regularly updated. A comprehensive National Chemical
Profile is being prepared. As on date there are 1,580 Major Accident Hazard
(MAH) Units in 234 districts of ]9 States/UTs of the country. Financial
assistance is being provided to the State Governments to strengthen
infrastructure for preparation of crisis management plans. So far, 1,107 onsite plans and 138 off-site plans have been prepared. Most States have
constituted State Level Crisis Groups. Under the Public Liability Insurance
Act, ]991 as amended in 1992, all the MAH units handling chemicals in excess
of the threshold quantities referred to in the Schedule are mandated to take
an insurance policy and deposit an equal amount in the Environment Relicf
Fund to ensure immediate payment to chemkal accident victims. Out of 180
hazard-prone industrial pockets, hazard analysis studies have been initiated
for 75 pockets.
As per current assessment, 4.4 million tones of hazardous wastes are
being generated by 13,011 units spread over 373 districts of the country. The
states of Maharashtra, Gujarat and Tamil Nadu account for over 63 per cent

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India 2005

of the total hazardous wastes generated in the country. This data, which is
based on the waste categories indicated in the Hazardous Wastes (Management
and Handling) Rules, 19R9, is being revised in the light of the amendments
carried out in 2000 and 2003 and also in view of the directions of the Supreme
Court.
Tht, Ministry has so far supported the setting up of two common TSDFs
at Maharasthra (ITC-Belapur, Taloja), two in Gujarat (Ankleshear and Surat)
and one TSDF in Andhra Pradesh (RR District). The states of Kamataka and
Tamil Nadu are in the process of setting up such facilities.
The Municipal Solid Wastes (Management and Handling) Rules, 2000.
Fly-ash Notification 1999 and the Recycled Plastics (Manufacture and Usage)
Rules, 1999 amended in 2003 constitute the regulatory framework for the
management of solid wastes in the country. Use of fly-ash in construction,
laying of roads and reclamation of low-lying areas has been made mandatory.
Guidelines for use of fly-ash have also been formulated and circulated to the
State Governments. Manufacture and usage of plastic carry bags less than 8x20
inches in size has been banned.
The Batteries (Management and Handling) Rules, 2(XJ1 were notified in
May 2001 to regulate the collection, channelisation and recycling as well as
import of used lead acid batteries in the country. These rules inter-alia make
it mandatory for consumers to return used batteries. All manufacturers/
assemblers / reconditioners / importers of lead acid batteries are responsible for
collecting used batteries against new ones sold as per a schedule defined in
the Rules. Such used I(:~ad acid batteri's can be auctioned / sold only to
recyclers registered with the Ministry / CPCB on the basis of their possessing
environmentally sound facilities for recycling / recovery.
The Ministry is also the nodal point for three International Conventions,
namely, the Basel Convention on the Control of Trans-boundary Movement
of Hazardous Wastes and their Disposal, the Rotterdam Convention on the
Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade and the Stockholm Convention on Persistent
Organic Poll'Jtants (POPs). As a signatory to the Basel Convention, the
Ministry participates in all thl' technical and legal working group meetings.
India signed thl' Stockholm Convention on POPs on 14 May 2002. We are
yet to ratify the Convention. The Convention seeks to eliminate production,
usc, import and export of 12 POPs wherever techno-economically feasible and
in the interim period, restrict the production and use of these chemicals.
NATIONAL RIVER CONSERVATION DIRECTORATE

The National River Conservation Directorate (NRCD) functioning under the

Ministry of Environment and Forests is engaged in implementing the River
Action Plan under the National River Conservation Plan (NRCP) by providing
assistance to the State Governments. The objective of NRCI' is to improve the
water quality of the rivers, which are the major fresh water sources in the

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267

country, through the implementation of pollution abatement schemes. So far

a toial of 31 rivers have been covered under the programme.
The first River Action Plan to bt' taken up under the NRCD was the
Ganga Action Plan. The objective of the GAP Phase-I was to improve the water
quality of the river Ganga. The action plan primarily addressed itself to the
interception and diversion for treatment of 873 million htres per day (MLD)
of municipal sewage in 25 towns. GAP Phase-l scheme has been closed on
31 March 2000. A sewage treatment capacity of 865 MLD has been created
under the programme and an amount of about Rs 452 crore has been spent.
The water quality of river Ganga is being monitored at 27 locations from
Rishikesh in Uttaranchal to Uluberia in West Bengal.
The Yamuna Action Plan (YAP) presently covers pollution abatement
works in 21 towns. The approved cost of YAP is Rs 509.45 crore of which
an expenditure by the states of Rs 474.57 crort' has been incurred so far. A
treatment capacity of 738 million litres per day (MLD) has been created. Of
the 179 schemes of pollution abatement sanctioned under Yamuna Action
Plan, 161 schemes have been completed. Additional pollution abatement
works in 15 towns of short gestation period amounting to Rs 222.60 crore
were approved in May 2001. All the works have been completed under this
package.
Financial sanction for the second phase of Gomti Action Plan at Lucknow
has been accorded in June 2003 for Rs 263.04 croce. The project cost is to be
shared in the ratio of 70:30 between Central Government and state government.
The works in this phase will include two sewage treatment plants of a total
capacity of 375 MLD (over and above the 42 MLD capacity being set up in
tht, first phase), interception and diversion works of sewage of the remaining
drains and other miscellaneous items such as river front development, toilets,
plantation, public awareness and participation and acquisition.
NATIONAL AFFORESTATION AND ECO-DEVELOPMENT BOARD
The National Afforestation and Eco-Development Board (NAEB) was set up
in August 1992 for promoting afforestation, tree planting, ecological restoration
and eco-development activities in the country. Special attention is being given
to regeneration of degraded forest areas and lands adjoining forest areas,
national parks, sanctuaries and other protected areas as well as the ecologically
fragile areas like the Western Himalayas, Aravallis, Western Ghats, etc.
'The NAEB has evolved specific schemes to promote afforestation and
management strategies, which help the States in developing specific afforestation
and eco-development packages for augmenting biomass production through
a participatory planning process of Joint Forest Management (JFM).

MonitOring and Evaluation : All projects and schemes of NAEB are subject
lo close monitoring by implementing agencies, and concurrent and final
evaluations by independent evaluators. In addition, NAEB gets sample checks
conducted for plantations under 20-Point Economic Programme in 50 sample

261'

india 2005

districts each year hy independent agencies. The institution of Forest

Dpwlopment Agency (FDA), which is a forest division-level federation of
village forest committees, has been formalised and supported under the
National Afforestation Programme (NAP) of NAEB in the Tenth Plan. The
initial monitoring reports of NAP assisted FDAs an' highly encouraging so
that it has been decided to extend NAP support to all possible 814 FDAs in
the country.
1~'~ional Cmtrl's : The NAEB has seven Regional Centres (Res) located in
Universities/ Nationallevd Institutions. These Centres help NAEB in promoting
extellsion of replicabl(' tl'chnologies and for dissemination of research findings.
They provide technical and extension support to the State Forest Department
in preparing projects for regeneration of degraded forests and adjoining lands
with pcople's participdtion, and also act as il forum for the exchange ideas
and ('xperil'nCl's amongst the States of the region as well across the regions.
In addition, these centres carry out problem-spt'cific studies as well as
('valuation of NAEB's programnws in the field, and organise training
programmes and workshops,

Professional and S,,'ciai Sen 1ices : NAEB takes up special studies of

important issues relating to policy formulation, programmt' impleml'ntation,
etc. The NAEB also ('ngagl's spl'ciill consultants for taking up a variety of
assignml'nts.
Em-Task forces: This is an on-going scheme. Ecological Task hlrces (ETFs)
of ex-st'rvict'mt'n are employed in remot(' and difficult areas to undertake
restoration of dl'gradt'd ecosystems through afforestation, soil conservation
and watef n'source management techniques.

COMMUNITY PARTICIPATION
Kl'l'ping in view the objectives of achil'ving 25 per cent tree I forest cover as
part of the monitorabll' target set out for the Tenth Five- Year Plan, the Ministry
ha~ launclwd a very ambitiolls afforestation programnw under NAEB with
fll'ople's inv(llvt'ment for the slistainablt' management of the country's forests.
Under this programme, all afforestation schemes of the Ministry have been
brought undef a single National Afforestation Programme being implemented
through decentralised Forest Development Agencies (FDA) set up at the forest
division level. The FDAs are a confederation of Joint Forest Management
Cllmmittees OFMCs) at the village level to provide an organic link between
the forest departments and the grass-root level communities.
During the Tenth Plan, an amount of Rs 1264.44 crore is earmarked
which will, apart from generating gainful employment, create community
assets for meeting for requirement of fuel wood, fodder and small timber.
As many as 515 NAP projects have been sanctioned so far with a physical
target of treating 7,61,206 hectares (ha) land. An amount of Rs 426.96 crore
has already been released during 2002-03 and 2003-04. Out of these 92 projects
with an outlay of Rs 225.41 crort' have been sanctioned for the North Eastern

Environment

269

States for the Tenth Plan treating an area of 1,41,79R ha. An amount of Rs
77.44 crore has been released during 2002-03 and 2003-04. Out of these 92
projects 14 projects are being implemented for ilium (shifting cultivation) land
r"habilitation.
.
An amount of Rs 230 crort' is proposed for 2004-05 out of which Rs 40
core is for north-eastern states under the NAP scheme.
NATIONAL ACTION PROGRAMME TO COMBAT DESERTIFICATION
lndia is a party to thl' UN Convention to Combat Dt.'sertification (UNCCD)
,lI1d Ministry of Environment and Forests is the National Coordinating Agency
for t)w implementation of the UNCCD in thl' country. As an affected party,
a 20-year comprehensiVl' National Action Programme (NAP) to combat
dpsl'rtification in the country has been prepared.
for the Tenth Five Year Plan, activities haw been initiated that include,
dll1tll1g others, assessment and mapping of land dpgradation, drought
nHdlitoring and early warning system groups, drought preparedness
contingency plans, and on-farm research activities for development of
Indigenous technology, etc.
Under UNCCD, a Regional Action Programme for Asian Countril~s has
b"en formulated to strengthen the existing capacity of the memb('r country
pM ties and to network with each other for effective measures to combat
dlsl'rtificatioll. Six Thematic Programme Nl'twork (Tf'N) has bel'n identified
tor this purpose.
India is host country for TPN - 2 "Agro-forest and Soil Conservation
in Arid, Semi-arid and Dry Sub-humid Areas". The Central Arid Zone
Rpsearch Institute (CAZRI), Jodhpur has been identifild as National Task.
Managt'r. Tprl- 2 has its Web site at htt:v.:1Lcazri.raj,ni~jI1 by CAZRI.
Similarly, India is participating actively in TPN - 1 "Desertification
Monitoring and Assessment". A pilot projPct is under progress through the
Indian Space Research Organisation (ISRO), Space Application Centre,
Ahmedabad at a cost of Rs 1.3'1 crore. India has also joim.'d the TPN - 4 "Water
Resources Management for Agricultun in Arid, Semi-arid and Dry Sub-humid
Areas". The Ministry of Water Resources has been identified as National Task
Manager for TPN - 4 while TPN - 3 on "Range and pasture Management"
has just been launched with Iran as host country. The remaining TPNs, i.e.,
TPN - 5 "Drought Preparedness and Mitigation in the Context of Climate
Change" and TPN - 6 "Strengthening Planning Capacities for Drought
Management and Controlling Desertification" are yet to be launched.
G.B. PANT INSTITUTE
G.B. Pant Institute of Himalayan Environment and Development was
t'stablished in August 1988, at Kosi-Katarmal, Almora (Uttaranchal) as an
autonomous Institute of the Ministry of Environment and Forests. TIll' Institute

India 2005

270

is identified as a focal agency, to advance scientific knowledge, to evolve

integrated management strategies, demonstrate their efficacy for conservation
of natural resources and to ensure environmentally sound development in the
Indian Himalayan Region (IHR). The institute executes its mandate through
the headquarters located at Almora, and through four regional units located
at Mohal-Kullu (Himachal Unit), Srinagar (Garhwal Unit), Tadong-Gangtok
(Sikkim Unit) and Ita nagar (NE Unit), so as to promote S&T initiatives for
overall development in the IHR. The broad areas of concern are covered
through seven Core Programmes, namely, Land and Water Resource
Management. Sustainable Development of Rural Ecosystems, Conservation of
Biological Diversity, Ecological Economics and Environmental Impact
Assessment, Institutional Networking and Human Investment, Environmental
Physiology and Biotechnology and Indigenous Knowledge Systems.
Land and water are the two prime resources for sustaining life in the
IHR. To make the optimal use of these resources researches were conducted
and environment-friendly land management models were demonstrated and
trainings were imparted among the rural communities. Rain water harvesting
for rehabilitation of community wastelands was one of the approach. The
Institute followed watersht'd management approach to serve the local needs
for sustainable management and utilisation of bio-physical resources in several
watersheds across the IHR.
FORESTRY RESEARCH

The Indian Council of Forestry Research and Education (ICFRE), Dehradun

is tht' pn'mier forestry research organisation of the country with the mandatt'
to formulate, organise, direct and manage forestry research, transfer the
technologit's developed to the states and other user agencies and impart
forestry education.
The following forestry research institutes and centrf'S under the Council
are responsible for undertaking research in their respective eco-climatic zones:

(i) Forest Research Institute, Dehradun; (ii) Arid Forest Research Institute,
Jodhpur; (iii) Rain Forest Research Institute, Jorhat; (iv) Institute of Wood
Sciences and Technology, Bangalore; (v) Tropical Forestry Research Institute,
Jabalpur; (vi) Institute of Forest Genetics and Tree Breeding, Coimbatore; (vii)
Himalayan Forest Research Institute, Shimla; (viii) Institute for Forest
Productivity, Ranchi; (ix) Centre of Social Forestry and Eco-rehabilitation,
Allahabad; and (x) Institute of Forestry Research and Human Resources
Development, Chhindwara. In addition, the Indian Plywood Industries
Research and Training Institute, Bangalore, an autonomous body of the
Ministry, is a premier institution engaged in research and training activities
on mechanical wood industries technology. The Indian Institute of Forest
Management, Bhopal, an autonomous organisation of the Ministry also
undertakes training, research and consultancy in forest management.

WILDLIFE RESEARCH
Research programmes in wildlife are carried out by the Wildlife Institute of

Environment

271

india, Dehradun, and the Salim Ali Centre for Ornithology and Natural
History, Coimbatore. Several projects on habitat evolution, elephant movement,
ecology of gharials and turtles, status of endangered species, behavioural
ecology, bio-diversity, resource study conservation, ecology and management
llf specific animals, etc., are being carried out by both these Institutes. They
nmduct research on the ecological, biological, socio-economic and management
aspects of wildlife conservation of various parts of country.
NATIONAL NATURAL RESOURCES MANAGEMENT SYSTEM
The basic objective of the National Natural Resources Management System
(NNRMS) is the utilisation of Remote Sensing Technology with the conventional
methods for optimal use and management of the natural resources of the
country. A Standing Committee on Bio-resources and Environment (SEB) has
been constituted and it has identified 49 priority areas, out of which more
than 20 priority areas have been covered. 73 remote sensing application
projects addressing key environmental and ecological issues such as
management of forests, grassland, faunal resources, wetland, coastal areas,
mangroves and coral resources, land degradation, impact of mining and
industrialisation, river pollution, etc. More than forty projects have so far been
completed.
EDUCATION, AWARENESS AND INFORMATION
Priority is accorded by the Ministry to promote environmental education,
create environmental awareness among various age groups and to disseminate
information through Environmental Information System (ENVIS) network to
all concerned. A major initiative to include environment education as a
s~'parate and compulsory subject in the education curricula has been taken
hy the Ministry at all levels of formal education, i.e., secondary, senior
secondary and tertiary levels.
The Ministry also accords priority for th,,' promotion of non-formal
environmental education and creation of awareness among all sections of the
society. It organises seminars / symposia / workshops, training programmes,
National Green Corps (NGC), eco-clubs, audio-visual shows, etc. A National
Environmental Awareness Campaign (NEAC) is organised every year. 'WaterElixir of Life' was the theme for th~~ year 2002-03. The Global Learning and
Observation to Benefit the Environment (GLOBE), and International Scheme
and Education Programme with stress on hands-on participatory approach
an' still continuing.
Nine Centres of Excellence have been set up by the Ministry to
strengthen awareness, research and training in priority areas of Environmental
Science and Management.
The National Museum of Natural History (NMNH) set up in New Delhi
in 197R, is concerned with the promotion of non-formal education in the area
of various aspects of environment, the muSt~um also conducts temporary
exhibitions and a number of educational programmes and activities for school
children, college youth and the general public. Three Regional Museums of
Natural History have been established at Mysore, Bhopal and Bhubaneswar.

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India 2005

The Indian Council for Forestry Research and Education is the focal point
of forestry education and extension development in the country. The Indira
Gandhi National Forest Academy, Dehradun, imparts in-service training to
Indian forest Service (IFS) professionals. The Forest Survey of India (FSI)
organises training programme for forestry personnel on various aspects such
as application of n'motl' s('nsing techniques in forestry, dc. State Forest St'rvice
('olll'g(' provide training to thl' officers of tht' State Forest Service (SFS). The
Indian Plywood Industries Research and Training Institute, Bangalore, organises
short-term courses in the area of wood science. The Indian Institute of Forest
Management, Bhopal, also provides training in forest management and allied
subjects to persons from the Indian Forest Service, forest development
corporations, and forest-related industries to develop forestry programmes.
The Wildlife lnstituk' of India, Dehradun, provides in-service training to forest
officers, wildlife ecologists and other professionals for conservation and
manag('ml'llt of the wildlife resources of the country.
ENVIRONMENTAL INFORMATION SYSTEM
An Environmental Information System is the nodal point in the Ministry, for
Environmental Information System (EN VIS), operation of the National Natural
Resources Management System (NNRMS) Programmes and the NGO cell. A
new portal at URL httplj_~.w.~,~l]_~i_~"_I1j.ill was launched to Network
ENVIS Centres and Nodl's. This provides direct link to ENVIS Centres and
Nodes.
FELLOWSHIPS AND AWARDS
Instituted in 1987, the Illdira Gandhi Par.ttavaran Puraskar (IGPP), consisting
of a cash prize of ruP('('s five lakh, a stroll and a citation, is awarded every
yeM to an organisation and to an individual for significant contributions in
thl' field of environment.
Thl' Indira Pri.ttlldarsililli Vrikshmitra Award (IPVM) was constituted by
th(' Ministry in 1986 to recognise outstanding contribution of individual and
organisation in the field of afforestation and wasteland development.
Tht' awards are given on the basis of innovative efforts and outstanding
work in afforestation, with special reference to wastelands development and
involvement of the ppople.
The MaiJll1'riksJra PUraSkJlr, instituted by the National Afforestation and
Em-Development Board (NAEB) during 1993-94, is given every year to
individuals/ organisations for tfl'es of notified species haVing the largest girth
and height and in good vigour. The award consists of a cash prize of Rs 25,000,
a plaqup and a citation.
With the objective of encouraging original and applied research among
Group' A' scientists in the Ministry and its associated offices and autonomous
bodies, Paryavartln Vllm Vall Mantra/aya Vishist Vaigyanik Puras/cQr was

Environment
instituted in 1992-93. The scheme provides every year for two awards
Rs 2(),OOO each.

273
WOI

th

The Pitambar Pant National [1H-,iromnel1l Fellowship Award instituted

in 1978, is awarded annually to recognise, encourage and support exceJlenCt'
in any branch of research related to environmental science.
Instituted in 1995, the B.P. Pal Natiollal Em'ironml'nf Fellowship Award
for bio-diversity is in recognition of significantly important research and
devciopment contributions and is intended to encouragt' talented individuals
to (h'vote themselves fully to R&D pursuits in the field of wild-life conservation
ilnd research.
The Ministry has approved institution of Amritadevi Wildl!fc Protection
Award, in the name of Amritadevi Bishnoi, to be given to Village Communities
tor showing valour and courage for protection of wildlife. To encourage work
of t'xcdlence in taxonomy, the Ministry has instituted the Janaki Ammal
National Award ill Tiu:ollomy. The award carries a cash prize of Rs 50,000
and a citation.
The National Awards for Prevf'l1tion of Pollution and Rajiv Gandhi
Environment Awards for Clean Technology 2002-03 wert' given to five
categories of highly polluting industries in the large scale sector.

ENVIRONMENTAL LEGISLATION
The Ministry has undertaken the formulation of a Comprehensive National
Environment Policy to harmonise the demands of development and
environment in response to the need to weave environmental considerations
into the fabric of development process and national life. The Government's .
policies on environment had its beginning in the Fourth Five Year Plan. In
the Fourth Plan, a specific focus on the need for harmonising india's
dl'velopment with environment was brought out. This was followed by the
setting up of National Committee on Environmental Planning and Coordination
and the Tiwari Committee recommended the creation of separate Department
of Environment to coordinate issues arising out of economic development and
social needs. The Department of Environment was created in 1980 and the
Ministry of Environment and Forests was established in September 1985.
The Water (Prevention and Control of Pollution) Cess Act, 1977, was
enacted to provide for levy and collection of Cess on water consumed by
specified industries and local authorities so as to augment the resources of
th(' Central and State Pollution Control Boards. To augment the resourCes an
Art was passed amending the earlier Cess Act and the amended Act, was
enforced in May 2003.

INTERNATIONAL COOPERATION
International Cooperation and Sustainable Development (ICSD) Division is the
nodal point within the Ministry for United Nations Environment Programme
(UNEP), Nairobi, South Asia Cooperative Environment Programme (SACEP),

274

India 2005

Colombo and the matters relating to sustainable development. The Division

also handles bilateral issues and matters pertaining to multilateral bodies such
as the Commission on Sustainable Development, Global Environment Facility
(GEF) and the regional bodies like Economic and Social Commission for Asia
and Pacific (ESCAP), South Asian Association for Regional Cooperation
(SAARC), European Union (EU) and the India-Canada Environment Facility.
The Ministry is also the nodal agency for various environment related
multilateral conventions and protocols. These include Convention on Wetlands
of International Importanct!, especially as Waterfowl habitat, Vienna Convention
for the protection of the Ozone Layer, Montreal Protocol on Substances that
deplete the Ozone Layer, Conventions on Biological Diversity, UN Framework
Convention on Climate Change, Kyoto Protocol, the Basel Convention on
Trans-boundary Movement of Hazardous Substances, Convention to Combat
Desertification and Stockholm Convention on Persistent Organic Pollutants,
etc.
OZONE CELL
Global efforts to protect the ozone layer started in the early seventies leading
to the adoption of the Vienna Convention on Ozone Depleting Substances
(ODS) in 1985 and the Montreal Protocol in 1987. India acceded to the
Montreal protocol, along with its London Amendment in 1992. To meet the
country's commitmt'nt on ODS phase-out under the protocol and to disseminate
information on ozone and ODS, the Ministry has established an Ozone Cell.
The Ministry provides custom / excise duty exemption for ODS phase-out
projects and detailed guidelines/ procedures have been finalised to grant duty
exemption for new investments with non-ODS technologies. The Reserve Bank
of India has issued directions to all financial institutions and commercial banks
not to finance new establishments with ODS technology. Licensing system has
been adopted to regulate import and export of ODS. A ban has also been
imposed on trade of ODS with non parties. The Notified Ozone Depleting
Substances (Regulation and Control) Rules, 2000, provides a legal framework
for ensuring compliance of the Montreal Protocol. It sets the deadline for
phasing out of various Ozone Depleting Substances, besides regulating
production, trade, import and export of ODS. The rules prohibit the use of
CFCs in the manufacture of various products beyond 1 January 2003 except
in metered dose inhalers and for other medical purposes. Similarly, use of
halons is prohibited after 1 January 2001 except for essential uses. Other ODS
such as carbon tetrachloride and methyl chloroform and CFC for metered dose
inhalers can be used up to 1 January 2010. Further the use of methyl bromide
has been allowed up to 1 January 2015.

CLIMATE CHANGE
India is party to thl' United Nations Framework Convention on Climate
Change (UNFCCC). The objective of the UNFCCC is to stabilise Greenhouse
Gas (GHG) concentrations in the atmosphere at a level that would prevent

Environment

275

dangerous human induced interference with the climate system. The convention
enjoins upon the parties to communicate to the conference of parties through
its Secretariat the following elements of information: (i) a national inventory
of anthropogenic emission by sources and removal by sinks of all greenhouse
gases not controlled by Montreal Protocol, to the extent its capacity permit;
(ii) A general description of steps taken or envisaged by the party to
implement the convention; (iii) Any other information that the party considers
relevant to the achievement of the objective of the convention; and (iv) The
Ministry is the executing and implementing agency of the project.
India acceded to the Kyoto Protocol in August 2002 and one of the
objectives of acceding to the Kyoto Protocol was to fulfill prerequisites for
implementation of Clean Development Mechanisms (CDM) in accordance
with the national sustainable priorities. The Kyoto Protocol commits the
developed countries, including economies in transition to reduce emissions
of greenhouse gases by an averagE' of 5.2 per cent below 1990 levels during
2008-12. A National COM Authority was approved by the Cabinet in
December 2003 and has since started functioning. The Authority has so far
approved 25 projects mainly in the field of Renewable Energy. MUnicipal Solid
Waste, Hydrofluorocarbons (HFCs), Small Hydro and Energy Efficiency, etc.
lt is expected that implementation of these projects would help in attracting
foreign investment as well access to more efficient technologies. At the Ninth
Conference of Parties (COP-9) held in Milan, Italy during 1-12 December 2003,
the major decisions adopted relate to setting forth the modalities and
procedures for the Sinks projects in the first commitment period; guidance
to the GEF to make operational at the earliest the Special Climate Change
Fund; provide further guidance to the Least Developed Countries Fund. The
high-level political debate during the conference took place through three
informal ministerial roundtables focusing on adaptation, mitigation, sustainable
development, technology and assessment. Ministers agreed that climate
change remains the most important global challenge to humanity and that
its adverse effects are already a reality in many parts of the world. One of
th(' obligation of India under the Convention is to furnish information to
UNFCCC Secretariat regarding implementation of Convention in the form of
an initial National Communication has now been submitted.

13

Finance

THE Ministry of Finance is responsible for administration of finances of the

Government. It is concerned with all economic and financial matters affecting
the country as a whole including mobilisation of resources for development
and other purposes. It regulates expenditure of the Govt'rnment including
transfer of resources to the states. This Ministry now comprises four
departments, namely, (i) Economic Affairs, (ii) Expenditure, (iii) Rt'vcnue, and
(iv) Disinvestment.

ECONOMIC AFFAIRS

The Departml'nt of Economic Affairs (DEA) consists of nine main divisions,

viz., (i) Economic; (ii) Finance; (iii) Budget; (iv) Banking (including Insurance);
(v) Capital Market, External Commercial Borrowing and Pension Reforms;
(vi) Bilateral Cooperation; (vii) Foreign Trade and Investment; (viii) Fund
Bank, (ix) Infrastructure and ADB; (x) Japan and I~E/UN; (xi) Currency and
Coinage; (xii) Administration and (xiii) Aid, Accounts and Audit. Thl'
Department ill/a alia monitors current economic trends and advises the
Government on all matters having bearing on internal and external aspects
of economic management including, prices, credit, fiscal and monetary policy
and investment regulations. This Department also supervises policies relating
to Nationalised Banks, Life and General Insurance besides managing
Governmcnt of India Mints, Currency Presses, Security Presses and Security
Paper Mills. All thc external financial and technical assistance n'ceived by
India, l'xcept through specialist'd International organisations like FAO, IlO,
UNIDO and except under international/bilateral specific agreement in the
field of sciencl' and technology, culture and education are also monitored by
this Department. Department of Economic Affairs is also responsible for
preparation and presentation to the Parliament of Central Budget and the
Budgets for the State Covernments under President's Rule and Union
Territory Administrations.
Recent developments: Some of the major goals enunciated in the Budget
2004-05 art' doubling agricultural credit in three years, providing farm
insurance and live stock insurance, more housing for the poor, improving
access to medical can' through health insurance, greater emphaSis on watel
harvesting and drinking water supply and providing electricity for all. The
Budget has proposed an additional budgetary support of Rs 10,000 crore to
the Annual Plan over the amount of Rs 1,35,031 crore provided in the Interim
Budget.
The Budget 2004-05 has proposed a new programme in the Central sector
to upgrade 500 Industrial Training Institutes (lTls) over the next five years
in order to enhance the quality of technical education and to meet the
technological demands of the industry. The universal Health Insurance
Schemt' introduced in 2003-04 is proposed to be redesigned to target people

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277

below poverty line. A new group health in"urance scheme is propost'd to be

Intwd,lccd for members of St'lf-Ht'lp Croups and other credit Iinkt'd groups.
;\ Ill'W schemt' called the 'S(;:'nior Citizens Savings Schenw' offcring an interest
1"<11t' of nine per cent per annum, has been proposed to protect th(, interest
income of senior citizens replacing the \lilri~lJtll ['cllsion Rima Y(I;lIna. The
C;p\'l'rnment's commitment to maintain a strong and effectin' public sector
llpl'rating in a competitive environment is manifest in tht' form of proposed
l'lluitv support of Rs 14,194 cron' and loans of Rs 2,132 crore to Central Public
'il'ctUI' enterprises (including Railway~;).
A numb{'r of initiatives have been announced to improve the financial
,itu<1tion of States. These incllldt' extension of dl'bt swap scheme to high-cost
Il"ms taken by States from NABARD and other agencies, rt'duction Df interl'st
on Central loans from 105 per cent 10 nine per ct'nl pt'r annum. Budget
2l1()4-05 has proposed a Backward States Grant Fund with a corpus of
R~ 25,O(lO cron,' over a five-year period to enable taking up social and physical
intrastructure programmes in thl' poorest and most backward districts in tht'
t'lluntrv.

The Budget 2004-05 has outlim'd the need for il value addt'd tax and
p.lrll1l'rship with States in reforming and restructuring the fiscal institutions
and moving towards a single national markd. Thirteen more services have
bl'en brought under the tax net, widening thl' base of service tax and the rate
Ilf service tax has bl'en raised from existing level of pight per cent to 10 per
lm!. Budget 2004-05 has proposed introduction of a security transaction tax,
;Ibolition of long-term capital gains tax on securities and reducing short-term
capital gains tax on st'curities from l'xisting level of 30 per cenl to 10 per
l't.'Ilt.

The rules under the Fiscal Responsibility and Budget Management Act,
2()():1 were notified on 5 July 2004. The important numerical targets specified

these rules include reduction of fiscal deficit by a minimum of 0.3

percl'ntage points every year, reduction of revpnue deficit by a minimum of
d ..') per cent every year, cap for the guarantees given by the Central
Covemmt'nt at 0.5 per cent of CDP. Under the rules, additional liabilities
(including l'xtt'rnal debt at current exchange rate) shall not be in excess of
nil1l' per cent of GOP for 2004-05 and this shall bt' progressively reduced by
cit Il'ast one percentage point in each subsequent year. The operationalisation
of the Fiscal Responsibility and Budget Management Act will help in fiscal
nmsolidation.
In

SOURCES OF REVENUE
lhe main sources of the Union tax revenue are customs duties, Union t'xcise
dUtit'S, service tax, corporate and income taxes. Non-tax revenues largely
comprise interest receipts, including interest paid by the Railways, dividend
and profits. The main heads of revenue in States are taxes and duties levied
bv the respective State Governments, share of taxes levied by the Union and
grants received from the Union. Property taxes, octroi and terminal taxes are
the mainstay of local finance,

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India 2005

mANSFER OF RESOURCES
Devolution of resources from the Union to the States is a salient feature of
the system of federal finance of India. Apart from their share of taxes and
duties, State Governments receive statutory and other grants as well as loans
for various development and non-development purposes. The total amount
of resources directly transfE'rred to thE' states during each Plan period is shown
in table 13.1. In addition, resources are also transferred by Central Government
to the implementing agencies under various schemes without routing it
through State budgets.
TABLE 13.1 : RESOURCES TRANSFERRED TO STATES
(Rs in aon"

Taxes
and Duties

Grants

2001-02

521141

41493

24154

1I84llfi

2002-03

51>122

42130

27720

12597H

2003-04

65784

46770

25264

137R111

2004-05

82227

56401

28899

167527

Period

Loans

Total

(Gross)

With effect from 1 April 2002, a new system of transferring the entire
net collections of small savings to States and UTs as loans from the Public
Account is in vogue.
ANNUAL BUDGET
An estimate of all anticipated receipts and expenditure of the Union for the
ensuing financial year is laid before the Parliament. This is known as 'Annual
Financial Statement' or 'Budget' and covers Central Government's transactions
of all kinds, in and outside India, occurring during the preceding year, the
year in which the Statement is prepared as well as ensuing year or the 'Budget
Year' as it is known.
The presentation of Budget is followed by a general discussion on it in
both the Houses of Parliament. Estimates of expenditure from the Consolidated
Fund of India are placed before the Lok Sabha in the form of 'Demands d
Grants'. All withdrawals of money from the Consolidated Fund are thereafter
authorised by an Appropriation Act passed by the Parliament every year, Tax
proposals of Budget are embodied in a Bill which is passed as the 'Finann'
Act' of the year. Estimates of receipts and expenditure are similarly presented
by the State Governments in their legislatures before the beginning of the
financial year and legislative sanction for expenditure is secured through
similar procedure. Budgetary position of the Union from 2001-2002 onwards
is shown in table J3,2.

;';inance

279

PUBLIC DEBT

Public debt includes internal debt comprising borrowings inside the country
like market loans, compensations and other bonds, treasury bills issued to
Fmance.
State Governments, commercial banks and other parties as well as nonnon-interest bearing rupees securities issued to the international
financial institutions, and; external debt comprising loans from foreign
countries, international financial institutions, etc. Table 13.3 gives an analysis
llf public debt and "other liabilities" at the end of selected years. The "other
liabilities" include outstandings against the various small saving schemes,
provident funds, securities issued to Industrial Development Bank of India,
Unit Trust of india and nationalised banks, deposits under the special deposit
schemes, reserve funds and deposits.
nq~otiable

TABLE 13.2 : BUDGETAT~Y POSITION

(Rs in crore)
2001-02

2004-05

RE

BE

2,01,449

2,31,748

2,63,027

3,09,322

Rpvenue Expenditure

3,01,611

3,31J,62f!

3,ti2,887

3,85,493

Rt'venue Defidt

1,00,162

1,07,8RO

99,860

76,171

Capital Receipts

1,62,500

1,f!2,414

2,11,228

20,049

37,342 #I

79,125 #

1,68,507 $
31,100 #I

1,42,451

1,45,072

1,32,103

1,37,407 $

60,842

74,535

1,11,368

92,336

Total Receipts

3,63,949

4,14,162

4,74,255

4,77,829 $

Total Expenditure

3,62,453

4,14,162

4,74,251)

4,77,1129

()

()

1,32,103

1,37,407

Borrowings and other

LIabilities
C.lpital Expenditure

.~

2003-04

Revenue Receipts

Recoveries of Loans and

other Receipts
h

2002-03

1Il.

BUdgetary Deficit" (9-B)

II

fiscal Deficit [(1+5)-9-6+10) 1,40,955

~,

DOl'S

-1,496

1,45,072

Ba~'d on provisional a~'tua)s for 2002-03

not include R~. 60,000 crore to bto raised under Market Stabilisation Scheme, which
will remain in cash balance of Central Government and will not be used as expenditure.

Include receipts from States on account of debt swap scheme.

India 2005

280
TABLE 133

PUBLIC DEBT AND OTHER LlABILmES OF

GOVERNMENT OF INDIA

(As at the end of March)

(Rs in (Tor,,)

200102

It('m

200::1-04

2004-05

RF

BE

Public Debt
'1,1:J,Ool

10,20,6IN

11,J4,021

l2,91,62H

5,lo,SI7

Ii, 19, lO5

7,04,902

H,25.4OJ

hl,b35

1,14,:l7'i

1,'13,'1'10

2,12,714

5,047

'1,b7.1

h,9H4

25,91'4

1,01,1'11'

hl,H1f!

(l

(l

22,551

2:\,hI7

22,24b

22,149

1,222

J,5%

:>,596

1.72:-

2,02,271

1,llil,505

2,()2,,1rn

2,03,653

71,54b

<)'),hI2

47,407

55,01'4

Total Publk Debt (1+2)

9,84,607

10,80,301

11,81,4211

13,46,712

Other Liabilities @

:l,HI,HOI

4,7H,'IOO

S,4,1,071

6,39,455

13,66,408

15,59,201

17,24,499

19,86,167

Intl'rrl<l I Dent

(i

to \'ii)

Markt,t L(lan

"

OtllL'r (includ{' spl. B.. arer Bonds)

iii

91 1l"v' Tn',lsuc\, Bills

iv

Sp,'cial St>curill ..s isstlt'd to the

Rill III l'OJ1Vl' fSi(Hl of TCt'olsury Bills

Sp",-ial tloating ,md other lo,ms

VI

l ltlll'r sp"Ci,ll

vii

St'curitit's 'Igilin," smoll)

:.'

Lxh'rn,ll Debt'

:J

2002-OJ

S('l-U

ri ties issUl'd to RBI

.~avjng~

Total Public Debt and

Other Liabilities

Tht'st' !'I'l'cesent mainly lIon-negotiolble, no interest ixolring securihe, issued to intemahort.ll

financial institutions like Inh'rn.ltinnal Monetary Fund, lntemati(>llal Bank foc Reconstruction and Dl'velopment ilnd Asian Development B,lIlk.
@

Comprisl'~ accnwl, under National Small Sa\'ings Fund, Provident Funds, spt>cial deposit'
on Non-(;overnnwnt providt'nt funds and other reserve funds and dl'posits.

Not.. : Extl'nhll debt is at book villu ..

BE : Budget Estimates

NEW INITIATIVES
Tn facilitate Open Market Operations (OMO) of RBI, the entire outstanding
babnn' of Rs 61.818 crort' of Special Securities issued earlier in lieu of ad
hoc Treasury Bills Wf'rt' converted into dated securities during the current
year.

During the year, in continuation of the policy initiated during 2002-2003,

Central Government prepaid external multilateral and bilateral loans amounting
to about USD 3.7 billion by raising rupee resources through private placement
of Government securities with RBI and purchasing foreign exchange with the
sam!;'.

hnance

281

The Central Government completed thp first ever Debt Buyback Scheme,
whl.'ft'in high coupon securities amounting to Rs 14,434 crore (Face value)
\\'(.'f(' bought back through a screen based auction resulting in lower interest
outgo and elongation of maturity profile of its market loans.
The Central Government in consultation with RBI. has launched Market
Scheme (MSS). The Scheme envisages issue of dated securities
and / or treasury bills within a specified ceiling, so as to absorb exCl'SS liquidity
in the market. The receipts are being maintained in a separate account with
RRi and are to be utilised only for rt'paymenl purposes. The scheme was
functional from April 2004.
~t,1hilisation

The Central Government utilised the receipts under the Statl' Debt Swap
Scheme to repay its own high-cost liabilities to NSSF.
NEW INITIATIVES IN FISCAL MANAGEMENT

TIH' persistent fiscal deficits and concomitant growth in tht. public debt burden
h"ve been identified as the most difficult challenges aEfl'cting the country's
l'COJ1flmic growth prospects. To check the potentially damaging impact of
fiscal indiSCipline on macro-economic parametl'rs, the Parliament had passed
<1 law in August 2003. The Fiscal Responsibility and Budgement Management
(FRBM) Act, 2003 came into forct' on 5 July 2004.
The FRBM Act, inter alia, mandates the Government to eliminate the
r('venue deficit by 2007-08. On 8 July 2004 the Finance Minister has proposed
.In amendment to the FRBM Act to shift this target year to 2008-09. The FRBM
Rules prescribe a minimum annual reduction in the revenue deficit by 0.5
per cent of GOP.

Other obligations of the Government under the FRBM Act, 2003 and
FRBM Rules, 2004 : (i) To reduce the fiscal deficit by an amount by at least
OJ per cent of the GOP, so that deficit is less than three per cent of GOP
by the end of 2007-08. (ii) To limit Government guarantees to at most 0.5
pl'r cent of the GDP in any financial year. (iii) To limit additional liabilities
(inl'iuding external debt at current exchange rate) to 9 per cent of GOP in
2004-05, 8 per cent of GDP in 2005-06, 7 per cent of GDP in 2006-07, 6 per
cent of GOP in 2007-08. (iv) Not to borrow directly from the Reserve Bank
of India with effect from 1 April 2006. (v) To present three statements-before
the Parliament alongwith the annual budget Macroeconomic Framework
Statement, FiscaJ Policy Strategy Statement and Medium-term Fiscal Policy
Statement. (vi) To move towards greater fiscal transparency and start
disclosing specified information such as arrears of unrealised revenue,
guarantees and assets latest by 2006-07.
Thus, the FRBM Act not only mandates minimum quantifiable targets
for reducing the growth of debt, deficit and guarantees in a time bound
manner but also embeds a series of improvements in the area of fiscal
transparency and medium-term fiscal planning to improve budget management
and catalyse the process of true democratic control of fiscal policy through
informed public opinion on the risks inherent in unabated growth in debt
Lind deficit.

282

India 2005
The deficit targets envisaged in Budget 2004-05 are as follows:

S.No. Item

1.

ReviS('d Estimates
2003-04

Rev('nue f)(>ficit as

Budget Estimates
2004-05

Target~

2005-06

for
2006-()7

3.6

2.5

1.8

1.1

4.1!

4.4

4.9

3.6

lI.2

1D.2

1l.l

12.1

67.1

6!!.5

68.2

68.7

p<'rcenlag(' of CDI'
2.

Fiscal Defilit

db

percentage of GDP
J.

T,lx rPvenu(' as

JX'rcentage of CDI'
4.

Total outstanding
liabilities <IS
percentage of GOP

EXTERNAL ASSISTANCE
The Department of Economic Affairs (DEA) is the nodal department for
procuring and co-ordinating foreign assistance from multilateral/bilateral
agencies. The State Governments and other agencies that wish to avail
themselves of external assistance can forward their proposals to the DEA
through the Central Administrative Ministry. The Ministry/Department
recommends the proposals / schemes for foreign assistance to the DEA after
ensuring plan priorities, budgetary clearance, administrative clearance,
including clearances from Planning Commission at an appropriate stage.
For all externally aided projects, the loan agreements with the multilateral/
bilateral agencies are signed by the DEA (as the nodal department in the
Central Government) since this is a subject on the Union list. The DEA is
also responsible for all policy issues pertaining to external aid received by
Government.

The external assistance received from various multilateral and bilateral

agencies is passed on to the States as Additional Central assistance (ACA)
on terms and conditions as applicable to Central assistance for State plans.
For Special Category States, ACA is given in 90:10 mix of grants and loans.
For States not falling under the special category status, ACA is given in 30:70
mix of grants and loans.
During 2003-04 the total aid utilisation on Government and NonGovernment account was Rs 18,487.83 crore against Rs 15,206 crore during
2002-03. As ACA to the States/UTs, Rs 9,324.36 crore have been released
during 2003-04 against Revised Estimate (RE) of Rs 8,500 crore.
The Union Budget for 2003-04 announced that in future India would
receive bilateral assistance only from Japan, U.K., Germany, EC, USA and the
Russian Federation. Assistance from other bilateral partners, if any, would
be directed towards NGOs, etc.

Finance

283

BANKING
The first bank of limited liability managed by Indians was Oudh Commercial
Bank founded in ~ Subsequently, Pl!.r:!1!~_N~tional Bank was established
in 1894. Swadeshi movement, which began in 1906, encouraged the formation
of a number of commercial ban~<;. Banking crisis during 1~13 -1917 and failure
of 588 banks in various states during the decade ended 1949 underlined the
need for regulating and controlling commercial banks. The Banking Companies
Ali was passed in February 1949 whi:h was subsequently amended to read
as Banking Regull.ltiQn Act, 19_~9. This Act provided the legal framework for
RBI.
regulation of the banking system

3Y

The largest bank-IlTleeri<i1 Ba.rtk _9l_India -

was nationalised i~. __

and rechristened as ?t~!~J~ank,of India. followed by formation of its seven

Associate Banks in 1959. With a view to bringing commercial banks into the

mainstream of economic development with definite social obligations and

objectives, the Government issued an ordinance on 19 July 1969 acquiring
llwnership and control of 14 major banks in the country. Six more commercial
banks were nationalised from 15 April 1980.
As certain rigidities and weaknesses were found to have developed in
the banking system during the late eighties, the Government felt that these
had to be addressed to enable the financial system to play its role in ushering
in a more efficient and competitive economy. Accordingly, a high-level
Committee under the Chairmanship of Shri M. Narasimham on the Financial
System (CFS), was set tip'on 14 August 1991 to examine all aspects relating
to the structure, organisation, functions and procedures of the financial
systems. Based on the recommendations of the Committee (Chairman: M.
Narasimham), a comprehensive reform of the banking system was introduced
in 1992-93.

In ] 993, in recognition of the need to introduce greater competition, new

private sector banks were allowed to be set up in the Indian banking system.
These new banks had to satisfy certain requirements. Further, revised
b'Uidelines for entry of new banks in private sector were issued on 3 January
2001.
The applications for setting up new banks received within the stipulated
period were scrutinised by RBI and "in-principle" approvals were issued to
two entities on 7 February 2002 and one of which Kotak Mahindra Bank, on
satisfactory completion of other formalities, was granted banking licence on
6 February 2003. The bank commenced its operations with effect from 22
March 2003 and subsequently it has been included in the Second Schedule
to the Reserve Bank of India Act, 1934 on 12 April 2003. On satisfactory
completion of all formalities, licence has been granted to "Yes Bank Ltd.," on
24 May 2004. The bank is expected to commence banking operations sh?rtly.
The Reserve Bank of India has decided in January 2002 that it will only
consider inviting fresh applications for new banks in the private sector after

21'14

India 200S

thr(:'(' years, after furthl'r reviewing thl' working of the private sector banks.
A high-level Committee, undt'f the Chairmanship of Shri M. Narasimham
was constituted by the Government of India in December 1997 to review thl'
record of implementation of financial systl'm reforms recommended by the
CFS in 1991 and chart the reforms necessary in the years ahead. Tht'
Committee submiUt'd its report to the Governml:'l1t in April 1998. Some 01
the recomml'ndations of till' Committee, on prudential accounting norms,
particularly in the areas of Capital Adequacy Ratio, classification of government
guaranteed advances, provisioning requirements on standard advances and
mon' disclosures in thl' Halance Sheds of banks were dcn'pted and implemented.
Recl'nt majm initiativl's undertaken for stnmgthening the financial sector in
plIrsliancl' of th(' recommendations of the above Committee relate to guidelines
to banks on Asset-Liability Management and integrated risk management
sysh'ms, cllmpliancv with Accounting Standards, consolidated accounting and
supervision, fine-tuning of prudential norms for income recognition, assl'l
classification and provisioning for NPAs, etc. The guidelines on setting-up of
Off-shoTl' Banking Units in Special Economic Zones, fair Practices Code for
Lenders, Corporatl' Governance, Anti-Money Laundering measures, etc., an'
other important dt'vdopments in the banking sector. The Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002 is expected to facilitate NPA management by banks more effectively
RESERVE BANK OF INDIA
The Rl'sl'rve Bank of India (RI:ll) was established on 1 April 1935 and
nation.llised on 1 January 1949. The Bank is tht, sole authority for issue of
currency in India other tha~~~ee coins an~ s.ubsidi~r..tc2ins and notes.
As till' agent of the<::'eiltraI Government, the Reserve Bank undertakt,s
distribution of one-rupee coin as well as small coins issued by the Government.
Tht, Bank acts as banker to the Central Government, and Statl' Governments
by virtue of agreements entered into with them, comm('rcial banks, state cooperative banks, and some of the financial institutions. The Reserve Bank also
handles the borrowing programme of the Central and State Governments. It
formulates and administers monetary policy with a view to ensuring pricl'
stability while promoting higher production in the real sector through proper
dt'ployml'l1t of credit. The RBI plays an important role in maintaining orderly
conditions in th(' foreign exchange market and acts as an agent of thl'
Government in respect of India's membership of International Monetary Fund.
The Reserw Bank also performs a varil'ty of developmental and promotional
functions. It regulates and supervises commercial banking system, Urban Cooperative banks and non-banking financial sector.
COMPOSITION OF BANKING SYSTEM
Commercial Banking System in India consisted of 286 scheduled commercial
banks (including foreign banks) as on 31 March 2004. Of the scheduled
commercial banks, 223 are in public sector of which 196 are regional rural
banks (RRBs) and these account for about 77.5 per cent of the deposits of

Finance

285

JlI sch{duled commercial banks. The regional rural banks were specially sd

up to increase the flow of credit to small borrowers in the rural an'as. The
remaining 27 banks in the public sector (i.e., nationalised banks and SBI
Croup) arc commercial banks and transact all types of commercial banking
busincss. Some important indicators in regard to progress of commercial
banking in India since 1997 are giwn in Table 13.4.
Amongst the public sector banks, as on March 2004, the nationalised
hanh group is the biggest unit with 33,090 offices, deposits aggregating
R~ 7,52,558 crore and advances of Rs 4,10,376 crore. The Statc Bank of India
gTOlIp (5BI and its S{'vcn Asso(iatcs) with 13,593 offices, deposits aggregating
R~ ~,67,057 crore and advances of Rs 2,12,420 crore is the second largest unit.
Tlw nationalised banks group accounts for around 65.9 per cent of aggregdtl'
banking business (aggregate of deposits and ildvances) ('onduct{'d by thp
public sector banks (excluding RRlb) and 46 per cent of the aggregatl' business
of all sclwduled commercial banks. The SRI and its Associates as a group
accounts for around 34."1 per l'ent of aggregatl' banking business conducted
by the public st'ctor banks (excluding RRBs) and around 2:1.1-\ per n'nt of the
clggregate business of all scheduled commercial banks.
DEPOSIT MOBILISATION AND DEPLOYMENT

Thl're has been a substantial increase in till' deposits of schedult'd commen.ial

banks in the post-nationalisation pl'riod. At the end of June 1969, deposits
of these banks aggregatt>d to only Rs 4,646 crore. In March 2004, this amount
hilS increascd 10 Rs 15,17,378 cron'. Dt'posil amount with public sectbr banks
was Rs 3,871 crore in June 1969. At the t'nd of March 2004, this amount stood
at i{s 11,75,439 CTore. Deposits mobilis('d by the banks are utilised for: (i) loans
'lTld advances; (ii) investments in government and other approved securities
in fulfillment of the liquidity stipulations; and (iii) investment in commercial
paper, shares, debentures, etc., up to a stipulated ceiling.
There has been a sib'11ificant increase in the investments of banks in
government and other approved securities from Rs 1, 361 crore in June 1969
to Rs 6,72,317 crore (provisional) as at the end of March 2004 (source:
Reserve Bank of India Bulletin - Weekly Statistical Supplement: Vol. 19,
No. 15). The Bank Credit of scheduled commercial banks have grown from
Rs 3,599 crore in June 1969 10 Rs 8,56,685 crore (provisional) at the end of
March 2004.
TABLE 13.4
!:,

PROGRESS OF COMMERCIAL BANKING IN INDIA

March
1997

March

March
1999

March

March

March

March

1998

2000

2001

2002

2()(J3

Number of Commercial Banks

2'1!

300

303

297

301

298

2(J4

(a) Scheduled C.ommercial Banks

297

2'1!

302

297

2%

294

289

of which : Regional Rural Banks 196

1%

1%

196

1%

196

196

Item

1'\u
I.

286

India 2005

(b) NonScht'duled Commercial

2
1

Banks
Number of Bank Offil'es in India 63,550

Population per office

M,m

M,939

65.412

65,919

66,190

66,535

15

15

15

15

15

16

16

4,99,763

5,98.485

7,14,02.'i@

8,51,593@

9,89,141*

(in thousands)

4 lJt>posill> of Schl.'duled
Commercial Banks in India
(Rs

11,31,18713,11,761
#

Cl'Ort')

2,78,401

3,24,079

3,68,837

4,54,(l69

5,29,272

Per Capita Deposits of

Scheduled Commemal
Banks (R~)

5,261

6,170

7,237

8,498

9,758

10,994

12,554

i. Per Capita Credit of

Scheduled Commercial
Banks (R~)

2,931

3,356

3,738

4,531

5,221

5,919

7,143

4JR

473

49.8

53.5

58.9

60.7

66.0

5.

Credit of Scheduled
Commercial Banks in India

6,09,053 7,4M32

(Rs cnlrt')
6.

M.

[)(>posits of Scheduled
Commercial Banks as
percentagt' of National
Inrome (at current prices)

Induding Resurgent India Bonds (RIB) (Rs 17,945 crore)

Includes Resurgent India Bonds (RIB) (Rs 17,945 crOTe) and also India Millennium Deposits
(IMD) (Rs 2.5,662 crore)

Sourel' : Basic Statistical Returns of Scheduil'd Comml.'rcial Banks in India, Voluml.'-32 (March
20(3)

ADVANCES TO PRIORITY SECTOR

Extension of credit to small borrowers in the hithertorteglected sectors of the
economy has been one of the key tasks assigned to the public sector banks
in the post-nationalisation period, To achieve this objective, banks have drawn
up schemes to extend credit to small borrowers in sectors such as agriculture,
small scale industry, road and water transport, retail trade and small business
which traditionally had very little share in the credit extended by banks.
Taking into account the need to provide financial resources through bank
credit to weaker sections for specific needs, consumption credit (with certain
limits) has been included in priority sector, Similarly, hOUSing loans up to
Rs 10 lakh per unit in rural/semi-urban areas/urban/metropolitan areas are
also classified as priority sector advances. Amount outstanding under priority
sector lending by public sector banks during the period June 1%9 to
September 2003 increased from Rs 441 crore to Rs 2,13,597 crore and
accounted for 44.54 per cent of their net bank credit as on the last reporting
Friday of September 2003.
CREDIT FLOW TO WEAKER SECTIONS
With a view to augmenting credit flow to small and poor borrowers,
commercial banks were advised by the Reserve Bank of India to provide at

Finance

287

least 10 per cent of their net bank credit or 25 per cent of their priority sector
advances to weaker sections comprising small and marginal farmers, landless
laborers, tenant farmers and share croppers, artisans, village and cottage
industries where individual credit limits do not exceed Rs 50,000, beneficiaries
of Government sponsored schemes such as the Swarnajayanti Gram Swarojgar
Yojana (SGSY) for rural poverty, Swarna Jayanti Shahari Rozgar Yojana
(S}SRY) and the Scheme of Liberation and Rehabilitation of Scavengers (SLRS)
ilnd beneficiaries of the Differential Rate of Interest (DR!) scheme and
scheduled castes and scheduled tribes. As on the last reporting Friday of
March 2003, the amount of outstanding advances extended by public sector
banks to the weaker sections under the priority sector amounted to Rs 34,398
crore and accounted for 7.17 per cent of their net bank credit.
CREDIT FLOW TO AGRICULTURE
Banks were initially given a target of extending 15 per cent of the total
advances as direct finance to the agriculture sector to be achieved by March
llJ85. This target was subsequently raised to 18 per cent to be achieved by
March 1990. In terms of the guidelines issued by Reserve Bank of India in
October 1993, both direct and indirect advances for agriculture are taken
together for assessing the target of 18 per cent, with the condition that for
tht' purpose of computing their performance in lending to agriculture,
lendings for indirect agriculture should not exceed one fourth of the total
agriculture lending target of 18 per cent of net bank credit so as to ensure
that the focus of banks on direct lending to agriculture is not diluted. As at
the end of September 2003, public sector banks had extended Rs 76,700 crore,
constituting 15.85 per cent of the net bank credit, to the agriculture sector.
Private sector banks extended Rs 11,873 crore to agriculture at the end of
March 2003 constituting 10.8 per cent of net bank credit.
ADVANCES TO SC/ST BORROWERS
People belonging to the scheduled castes and scheduled tribes have been
recognised as the most vulnerable sectarians. Banks have been asked to make
special efforts to assist them with adequate credit to enable them to undertake
self-employment ventures to acquire income generating capital assets so as
to improve their standard of living. At the end of September 2003, the total
outstanding loan extended to scheduled castes/scheduled tribes by public
secto'r banks under priority sector lending was Rs 14,166 crore in 67.10 lakh
borrowal accounts.

DIFFERENTIAL RATE OF INTEREST SCHEME

Under the Differential Rate of Interest (DRI) Scheme, introduced in 1972,
public sector banks are required to fulfil the target of lending of at least one
per cent of the total advances as at the end of the preceding year to the
weakest of the weak sections of the society at an interest rate of four per cent
per annum. The scheme covers poor borrowers having an annual family
income of not more than Rs 6,400 in rural areas and Rs 7,200 in other areas

288

India 2005

and not having more than 2.5 acres of unirrigated of one acre of irrigated
land. They are given credit support of Rs 6,500 as tl'rm loan and working
capital loan for productive venturl's. The public sector banks had an
outstanding of DR! credit amounting to Rs 302.25 crore as at the l'nd of
September 2003.
SWARNAJAYANTI GRAM SWAROZGAR YOJANA
The Union Ministry of Rural Development launched a restructured poverty
alleviation programme, Swamajayanti Gram Swarozgar Yojana (SGSY) with
effect from 1 April 1999, which has replaced IRDP and its allied schemes viz.,
Training of Rural Youth for Self Employment (TRYSEM), Development of
Women and Children in Rural Areas (DWCRA), Supply of Improved Toolkits
to Rural Artisans (STTRA), Canga Kalyan Yojana (GKY) and Million Wells
Scheme (MWS).
The scheme aims at establishing a large number of micro t'nterprises in
the rural areas of the country. The objective of the Scheme is to bring every
assisted family above thl' poverty line in three years by providing them
income generating assets through il mix of bank credit and government
subsidy. Tht' monthly income from the activity to be undertaken should not
be less than Rs 2,000, net of repayment to the bank, at least in the third ~ear:
SGSY is a holistic programme covering all tht, aspects of self emplo~ent
such as organisation of poor into Sdf Help Groups, training, credit, technology,
infrastructure and marketing. Thl' scheme is funded on 75 : 25 basis by centre
and states and is implementt'd by ORDAs through Panchayat Samitis. Major
shaft' of assistance is for 4-5 key activities identified at the block level.
The year 2003-04 was the fifth year of implementation of the schemt'
and during thl' Yl'ar (up to December 2003), tht, total number of Swarozgaris
assisted was 5,72,729. Bank credit to the tune of R" 533.19 crore and
Government subsidy amounting to Rs 199.15 crore were disbursed under the
scheme. Out of total swarozgaris assisted, 1,68,589 (29.43'Yo) were SC and ST,
1, 90,580 (33.27%) were women and 5,793 (1.01'1.,) were physically handicapped.
SWARNA JAYANTI SHAHARI ROZGAR YOJANA
The Swarm Jayanti Shahari Rozgar Yojana (SJSRY) is in operation from 1
December ] 997 in all urban and semi-urban towns of India. Among other
com ponl'nts, the scheme has two sub-schemes where bank credits involved,
namely, Urban Self Employment Programme (USEP) and Development of
Women and Children in Urban Areas (DWCUA). The beneficiaries under the
scheme are identified by the urban local bodies on the basis of house to house
survey. Under the scheme, women are to be assisted to the extent of not less
than 30 per cent, disabled at three per cent and SC/STs at least to the extent
of the proportion of their strength in the local population. The scheme is
funded on a 75 : 25 basis between the Central and the State Governments.
Ouring the year 2003-04 (up to December 2(03), of the total 42,734

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applications sanctioned under the scheme, 33,162 cases were disbursed

amounting to Rs 106.39 crore by the scheduled commercial banks.

PRIME MINISTER'S RO}GAR YOJANA

The Prime Minister's Rojgar Yojana (PMRY) for educated unemployed youth
was launched on 2 October 1993. The objective of the scheme was to provide
sustained employment to about 10 lakh educated unemployed urban youth
in micro-enterprises during the Eighth Five-Year Plan. These enterprises cover
manufacturing, service and business ventures. The scheme was implemented
in urban areas during 1993-94 and from] April 1994, throughout the country.
During 2003-04, banks sanctioned loans amounting to Rs 904.07 crore in 1.44
lakh accounts, while disbursements amounted to Rs 531.83 crore in 0.87 lakh
accounts (data provisional).

HOUSING FINANCE
During last two years, the housing sector has emerged as one of the sectors
attracting a large quantum of bank finance. Up to 2002-03, as per instructions
issued by RBI, banks were required to allocate a minimum of three per cent
of incremental deposits of the previous year towards housing finance.
However, banks have consistently exceeded the target during last few years.
Therefore, no specific allocation was made for 2003-04. The current focus of
RBI's regulation in the area is to ensure orderly growth of housing loan
portfolio of banks.

REGIONAL RURAL BANKS

The Regional Rural Banks were set up to take the banking services to the
doorsteps of rural masses especially in remote rural areas with no access to
banking services. These banks were originally intended to provide institutional
credit to the weaker sections of the society called 'target groups'. The banks
were also intended to mobilise and channelise rural savings for supporting
productive activities in the rural areas. However, with effect from April 1997,
th(, concept of priority sector lending was made applicable to RRBs. The
interest rates on term deposits offered and interest rates on loans charged by
RRBs have also been freed. The credit outstanding of RRBs stood at Rs 22,158
crore as at the end of March 2003 and Rs SQ,OJ8 crore was mobilised as
deposits by RRB's till that date. RRBs which comply with certain prescribed
conditions are also permitted to open and maintain non-resident accounts in
Rupees.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

The Industrial Development Bank of India (IDBI) is the principal financial
institution for providing credit and other facilities for development of
industry, co-ordinating working of institutions engaged in financing, promoting
or development industries and assisting the development of such institutions.
The IDBI has been providing direct financial assistance to large industrial
concerns. Aggregate assistance (provisional) sanctioned during 2003-04
amounted to Rs 5,631 crore registering a sharp decline of 4.5 per cent over

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290

the preceding year. Disbursements amounted to Rs 4,409

crOft'

in 2003-04.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

The Small Industries Development Bank of India (SIDBI) was established a~
a wholly-owned subsidiary of the Industrial Development Bank of India
(IDBI) as the principal financial institution for promotion, financing and
development of industries in the small scale sector. SIDBI started its operatiom
from 2 April 1990 and is engaged in providing assistance to the smal1-scalt
industrial sector in the country through other institutions like State Financial
Corporations, Commercial Banks and State Industrial Development Corporation.
The Financial assistance sanctioned and disbursed aggregated to Rs 8,224 crOft'
and Rs 4,413 crore, respectively, during 2003-04.
EXPORT-IMPORT BANK OF INDIA
The Export-Import Bank of India (EXIM Bank) was established for financing,
facilitating and promoting foreign trade in India. During the year ended
31 March 2004, EXIM Bank sanctioned loans of Rs 9,266 crore while
disbursements amounted to Rs 6,957 crore. Net profit (before tax) of the Bank
for the period 2003-04 amounted to Rs 229.2 crore.
NATIONAL HOUSING BANK
The National Housing Bank (NHB), the apex institution of housing finance
in India, was set up as wholly-owned subSidiary of the Reserve Bank of India
(RBI) which started its operations from July 1988. The authorised paid-up
capital of NHB stood at Rs 450 crore and the reserves and surplus were
Rs 1,087.9 crore as on 30 June 2003 (revised). NHB also mobilised Tier II capital
to the extent of R<; 400 crore during 2002-03.
The NHB is the regulator and supervisor of Housing Finance Companies
(HFCs) in the country. Total refinance extended by NHB to aI1 hOUSing finance
institutions including commercial banks and HFCs stood at Rs 6,610.93 croff.'
as on 30 June 2003. The bank monitors the performance of the Golden Jubilee
Rural Housing Finance Scheme being implemented through Scheduled Banks,
HFCs and Co-operative Sector Institutions. Against a target of 2.69 lakh
dwelling units for the year 2003-04, 1.53 lakh units had been financed up to
December 2003.
NABARD
The National Bank for Agriculture and Rural Development (NABARD) came
into existence on 12 July 1982. It was established fO!'PIQ...\j~g_credit.for
promotion of agnciilture, small-scale industries, cottage Cl!lg_village indu_stries,
handicrafts and other allied economic activities in rural areas with a view
to promoting integrated rural development and secwmg prosperity of rural
areas.

INDIAN BANKS ABROAD

As on 30 June 2004 ten Indian banks--eight from the public sector and two

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291

from the private sector-had operations overseas, which had their presence
in 42 countries with a network of 93 branches (including six offshore units),
five joint ventures, 16 subsidiaries and 18 representative offices. Besides,
another three private sector banks had four representative offices abroad.
Bank of Baroda had highest concentration, with 38 branches, six subsidiaries
and one joint venture in 17 countries, followed by State Bank of India with
21 branches, five subsidiaries, two joint ventures and eight representative
offices in 28 countries and Bank of India with 18 branches, two subsidiaries,
two joint ventures and three representative offices in 16 countries.

INTERNATIONAL MONETARY FUND

The International Monetary Fund (IMF) was established along with the
lntefTli!tiol}'iI_B~~k for Reconstructi.Q_l}_~!1dDevelopment (also known as World
Bank) at the Conference of 4fnations held at Bretton Woods, New Ham~h.ire,
USA in July 1944. It was created to promote internationai ~onetaryCooPeration;
to faCilitate the expansion and balanced growth of international trade; to
promote exchange stability; to assist in the establishment of a multilateral
system of payments; to make its general resources temporarily available to
its members experiencing balance of payments difficulties under adequate
safeguards; and to shorten the duration and lessen the degree of disequilibria
in the international balances of payments of members. The Articles of
Agreement of IMF came into force on 27 December 1945. IMf is the Principal
International Monetary Institulionestablisfiedtopro~~te a cooperative and
stable global monetary framework. At present, 184 nations are members of
the IMF. East Timor became the newest member in JulY 2002.
Operations- Lending IPortfolio: The IMF's financial year is from 1 May
to 30 April. IMF lends to various member countries in the fonn of various
facilities (Extended Fund Facility, Standby Facility, Contingent Credit Lines,
Compensatory Facility, etc.) designed to serve specific purpose, but essentially
aimed at balance of payments stabilisation or meeting the emergent foreign
exchange needs. The poor countries are also helped by funding from Poverty
Reduction and Growth Facility. As on June 2004, the IMF was lending to 13
members in the fonn of Standby Facility, to 2 members under Extended
Arrangements and to 38 poor countries under Poverty Reduction and Growth
Facility. The total credit outstanding was 45.686 billion, 0.877 billion and 5.515
billion SDRs respectively.
Board of Governors arul Executive Board: The Board of Governors of the
IMF, consisting of one Governor and one Alternate Governor from each
member country, usually meets once a year - at the time of Annual Meetings
(generally held in September/October). The day-to-day management of the
IMP is carried out by the Managing Director. The Board of Executive
Directors, consisting of 24 Directors appointed/elected by member countries/
group of countries, is the executive body of the lMF, of which the Managing
Director is the Chairman. On 4 May ~ Rodrigo Rato, of Spain has been
elected as Managing Director andOlairman of the EXecutive Board for a five-

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India 200S

year term. He succeeds Horst Kohler who resigned during March 2004. There
are thn_-'t:' Deputy Managing Directors, in place.
I.M.f.C. . The International Monetary and Financial Committee (IMFC) of the
Board of GOVl'rnors (formPTly called Interim Committee of the International
Monetary System) is an advisory body made up of 24 IMF Governors,
Ministers, or other officials of comparabk rank, reprl'senting thl' same
constituencies as in the IMP's Executive Board. The last meeting of till'
International Monetary and Financial Committee (IMFC) of the Board of
Governors of the IMF was Iwld on 24 April 2004 at Washington D.C.
INDIA AND THE IMF
India is a founder m('mber of till' IMF. Financ!:' Minister is tht' ex-officio
Governor on the Board of Governors of tht' IMF. The Governor, RBI is India'~
Alternate Governor. India is represented in the IMF by an Executive Director
(currently B.P. Misra) who also represents three other countries, viz.,
Bangladesh, Sri Lanka and Bhutan.

I1ldia's Quota and ranking: India's curH'nt quota in tht' IMF is SDR (Special
Drawing Rights) 4,158.2 million in the total quota of SDR 212 billion, giving
it a shan> holding of 1.961 per cent. India's relative position based on quota
is 13. However, based on voting share, India (together with its constituency
countries, viz., Bangladesh, Bhutan and Sri Lanka ) is ranked 21.
TIlt' SDR 4,158.2 million quota of India in IMF comprises of Fund's
holdings of currency of 3,271.14 million and Reserve Position of 887.09 million
SDRs.
SDRs allotment and holding by India: India has been allocated 681.170
million SDRs from the SDRs created by IMF. The IMF members can either
retain SDRs, use them in payments, etc., or sell them to other member
countries. Tht IMF remunerates the members holding SORs by charging all
tht' members for SDRs allocated to them.

Article IV consultations: As part of its mandate for international surveillance,

the IMF conducts Article IV consultations, with every member country to
review the economic situation and policy developments of the member
countries, normally, once a year. The last Article IV Consultations for India
were held in November 2003.
Article VIII, Section 5 : Recently the Board, added an Annexe to this Article
which required members to furnish data on additional variable including
reserve, or base money, broad money, balance sheet of the central bank,
external current account balance, export and import of goods and services,
etc. The deadline for submission of additional information is end of 2004.

Borrowings by India: India borrowed SDR 3.9 billion during the period 198184. Again during 1991 to 1993, India borrowed an amount of SOR 3.56 billion
(SDR 1,351.98 million under the Compensatory and Contingency Financing

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293

FdciJity and SDR 2,207.925 million under Standby Arrangement). Repayment

of all the loans taken from International Monetary Fund has been completed.
Participation by India ill Financial Transactions Plan : India agreed to
participate in the Financial Transaction Plan (FTP) of tht IMF in late 2002.
This participation provides India the status of a creditor to the IMF. 43
LOuntries, including India, now are creditors to the IMF. By participation in
rT1', India is allowing IMF to encash its' rupee denominatl'd securities as part
ot uur quota contribution, for hard currency which is then lent to other
member countries who are debtors to the IMF. From May 2003 to December
2003, India transferrt:'d SDRs 5 million to Burundi, and first instaIml'nt of 200
million and st:'cond instalment of ] 50 million to Brazil and 43 million to
Indonesia. While tht:' participation in FT1' allows India to earn interest on its'
enhanced credit trancht:' position with IMF, the encashment of interest-free
rupee securities lead to enhancement of rupee borrowing for the Government
of India necessitating higher inten'st payments on rupee borrowing. To
,,,jdress this problem, it has bcen decided to replace special securities to the
IMF by non-interest bearing non-marketable securities to be issued to the RBI.
India's contribution to Iraq: FM approved India's contribution of US $ 0.35
million for the Multidonor Technical Sub-Account for Iraq and India has
contributed US $ 0.10 as "rst instalment.

ASIAN DEVELOPMENT BANK

The Asian Development Bank, an international partnership of 63 member
countries was established in December 1966 with its hl'adq~arte;:S in Manila;
Philippines to accere;~te economic and social development in the Asia and
I'alific region.
India started borrowing from ADB (Ordinary Capital Resources only)
in 1986. Since then the borrowings from ADB Public Sector Window have
increased from US $ 250 million in 1986 to US $ 1,430 in 2003. Taking into
account the projects approved by the ADB up to 31 December 2003, the total
borroWing by India amounts to US $ 12.911 billion for public sector (excluding
terminated loans). The cumulative disbursement under ADB public sector
projects till 31 December 2003 stood at US $ 6.923 billion. The total loan
assistance for private sector operations provided to India through ADB up
to 31 December 2003 stood at US $ 257.70 million.
The Bank's Technical Assistance (TA) support to India increased from
$ 0.6 million in 1988 to a cumulative amount of about $ 102 million for 192
TAs as on 31 December 2003. In Calendar year 2003, ADB has approved 22
TAs for an amount of US $ 14.67 million. The technical assistance provided
Was for increased support in Institutional Strengthening, effective project
implementation and also for policy reforms. There are now 27 ADB assisted
ongoing projects and 49 ongoing TAs in India.

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294

INSURANCE DIVISION
LIFE INSURANCE CORPORATION OF INDIA
The LIe with its central office in Mumbai and seven zonal offices at Mumbai,
Kolkata, Delhi, Chennai, Hyderabad, Kanpur and Bhopal operates through
101 divisional offices including one salary savings scheme division at Mumbai
and 2048 Branch Offices. As on 31 March 2004, LIC has 10,98,910 lakh agents
spread all over the country. The Corporation also transacts business abroad
and has offices in Fiji, Mauritius and United Kingdom. An overseas subsidiary
of the Corporation namely, LIC (International) E.C. Bahrain was established
in 1989. LIC is also associated with joint ventures abroad in the field of
insurance namely, Ken-India Assurance Company Limited, Nairobi, a registered
joint venture company in Kathmandu, Nepal by the name of Life Insurance
Corporation (Nepal) Limited in Collaboration with Vishal Group Limited, a
local industrial group. LIC (Lanka) Limited, the latest joint venture subsidiary
of the Corporation was established in Sri Lanka on 1 March 2003 in
partnership with local company Mis Bartleet & Company Limited. An offshore company LIC (Mauritius) off-shore limited was registered to tap the
African Insurance market.
Ouring 2003-04, the total new business under Individual Assurances was
Rs 1,98,274 crore under 263.96 lakh policies. The Group Insurance business
during the year 2003-04 brought new business premium of Rs 3,612.29 crore

under 11,044 schemes covering 27.71 lakh people. The sum assured in respect
of conventional Group Insurance business is 12,543.71 crore. In addition. LIC
sold 3,25,538 new Individual Pension Policies.
The Life Fund of LIC as at 31 March 2004 as per the provisional results
amounts to Rs 3,32,712.48 crore. During 2003-04 the corporation made
payments of Rs 2,941.21 crore under death claim cases, Rs 16,658.53 crore
under Maturity Claims and Rs 1,103.05 crore under annuities.
Under Varishtha Pension Bima Yojana the corporation made payments
of Rs 8.33 crore under Death Claim cases and Rs 127.54 crare under annuities.
(Tlrese figures are provisional and unaudited).
SOCIAL SECURITY GROUP INSURANCE SCHEMES
A Social Security Fund (SSF) was set up in 1988-89 for providing social
security through group insurance scheme to the weaker and vulnerable
sections of the society. SSF is administered by LIC for meeting insurance
requirements of the poorer sections of the society.
As on 31 March 2004, about 43lakh people belonging to 24 occupational
groups I areas have been covered under various social security group schemes
financed from the SSF. Under these schemes, people in the age group of 1860 years are covered for a sum of Rs 5,000 on death due to natural causes
and Rs 25,000 on death I total permanent disability due to accident. The
amount payable is Rs 12,500 on partial permanent disability due to accident.

Finance

295

While the SSF subsidies 50 per cent of the premium, the beneficiary has to
pay the remaining 50 per cent.
All over the country, the Integrated Rural Development Programme
(IRDP), beneficiaries between the age group of 18 to 60 years are covered
under a Group Life Insurance Scheme now known as Swamajayanti Gram
~;warozgar Yojana (SGSY), being operated by the L1C for which the entire
premium is paid by the Central Government. An amount of Rs 6,000 is
payable to the beneficiary in case of natural death and Rs 12,000 in case of
accidental death. During 2003-2004, 864 claims were settled under the Scheme.
JANASHREE BIMA YOJANA

The Janashree Bima Yojana (JBY) was launched on 10 August 2000. The
Scheme has replaced Social Security Group Insurance Scheme (SSGIS) and
Rural Group Life Insurance Scheme (RGLIS).
The Scheme provides for an insurance cover of Rs 20,000 on natural
death. On death/ total permanent disability due to accident, the benefit is
Rs 50,000. On partial permanent disability due to accident, the benefit is
Rs 2.1:),000. The premium for the scheme is Rs 200 peT member. 50 per cent
premium under the scheme will be met out of Social Security Fund. The
balance premium is to be paid by the member and/or Nodal Agency. As on
31 March 2004; about 25.07 lakh people have been covered.
I

KRISHI SHRAMIK SAMAJIK SURAKSHA YOJANA

IJ"
("... .'.." Y
)
,
!
,;0

The scheme, commenced on 1 July 200], provides life insurance protection,

periodical lump sum survival benefit and pension to agricultural workers.
Persons between the age of 18 years and 50 years can join the scheme.
Minimum membership of the group at commencement should be 20.
The scheme provides for, on natural death before age 60, an amount of
Rs 20,000 along with return of accumulated amount with interest. On death /
total permanent disability due to accident, the amount payable is Rs 50,000.
On partial permanent disability due to accident, the amount payable is
Rs 25,000. Besides above, a lump sum survival benefit is paid to the member
at the end of every 10 years after entry into the scheme. Pension will be paid
to the member on reaching age 60.
The member has to pay a premium of Rs 365 per annum. The
Government contributes double the amount.

In the first phase, the Scheme was implemented in 50 selected districts

all over the country. As on 31 March 2004, 57 thousand agricultural workers
have been covered.
SHIKSHA SAHAYOG YOJANA
The scheme was launched on 31 December 2001, with the object to lessen
the burden of parents in meeting the educational expenses of their children.

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India 2005

It provides scholarships to students of parents living below or marginally

above poverty-line and who are covered under Janashree Bima Yojana and
are studying in 9 to 12 standard (including ITI courses).

A scholarship amount of Rs 300 per quarter per child is paid for a

maximum period of four years and for maximum two children of a member
covered under Janashree Bima Yojana.
No premium is charged for this benefit. As on 31 March 2004 scholarship
were disbursed to 1,60,473 beneficiaries.
[All tht' figures jor the year 2UU3-2UU4 as

011

31 March 2004 are provisional

and ullauditedl.

GENERAL INSURANCE CORPORATION ON INDIA

The General Insurance Corporation of India (GIC) has been formally de linked
from the erstwhile subsidiary companies w.e.f. 3 November 2000. The GIC
having been notified as Indian insurer has also ceased to carry on Direct
Insurance Business and Crop Insurance.
In its exclusive role as a reinsurance company, the corporation's business
volume is growing on an average rate of over 20 per cent both on domestic
and international front. The net premium income has grown from Rs 2,671
crore as on 31 March 2002 to Rs 2,832 crore as on 31 March 2003. The profit
before tax was 343 crore as on 31 March 2003 compared to Rs 357 crore as
on 31 March 2002. With its sound asset base and prudent investment portfolio,
the corporation is continuously adding to its net worth. The total assets and
net worth have grown to Rs 11,695 crore and Rs 3,167 crore respectively as
on 31 March 2003. Consequent up on the Corporation being designed as an
"Indian reinsurance", reinsurance protection was purchased for GIC's net
account only. However, the Corporation continues its role as a reinsuranCt'
facilitator for the Indian insurance companies by managing Marine Hull Pool
and lerrorism Pool on behalf of the insurance industry.
The Corporation also has opened two representative offices at London
and Moscow to expand its foreign reinsurance business.
PUBLIC SECfOR GENERAL INSURANCE COMPANIES

General insurance business in the country was nationalised with effect from
1 January 1973 by the General Insurance Business (Nationalisation) Act, 1972.
More than 100 non-life insurance companies including branches of foreign
companies operating within the country were amalgamated and grouped into
four companies, viz., the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd., and the
United India Insurance Company Ltd., with head offices at Kolkata, Mumbai,
New Delhi and Chennai, respectively. The General Insurance Corporation
(GIC) which was the holding company of the four public sector general
insurance companies has since been delinked from the later and has been
approved as the "Indian Reinsurer" since 3 November 2000. The share capital

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297

of GIC and that of the four companies are held by the Government. All the
five t'ntities are Government companies registered under the Companies Act.
Four companies formed the Association named as GIPSA (General Insurers)
(Public Sector) Association of India.
The general insurance business has grown in spread and volume after
nationaJisation. The four companies have 2,688 branch offices, 1,363 divisional
offices and 92 regional offices spread all over the country. GIC and GIPSA
companies have representation either directly through branches or agencies
in J6 countries and through associate/locally incorporated subsidiary companies
in 14 other countries.
The gross premium income of the four public sector general insurance
companies during 2002-03 was Rs 12,629 crore as against Rs 12,229 crore
during 2001-02, representing a growth of 3.27 per cent over the premium
income of the last year. The net premium income of the companies during
the year 2002-03 was Rs 9,637 crore as against Rs 11,416 crore in 2001-02,
representing a growth of (-) 15.58 per cent over tht, nct premium income of
2()O[-02. The gross profits of the industry during 2002-2003 were Rs 842 crore
as against Rs 3IJ3 crore in 2001-02 representing a decline of 114.22 per cent
llVer the previous year. Similarly, the net profits of the industry during the
yt'il[ 2002-03 were R., 626 crore as against Rs 272 crorc in 2001-02 representing
,1 growth of 130.31 per cent over the previous year.
Mediciaim Insurance Policy: The Medic1aim Insurance Policy provides for
J"pimbursement of medical expenses incurred by an individual towards
hospitalisation/ domiciliary hospitalisation for any illness, injury or disease
contracted or sustained during the period of insurance. With effect from 1
November 1999, the maximum compensation under the Scheme has been
Tl'vised from Rs three lakh to Rs five lakh. The policy is now available to
persons between the ages of 5 years and 80 years. An income tax benefit up
to a limit of Rs 10,000 on the medical insurance premium paid, is available
under st'ction 80-D of tht, Income Tax Act while for senior citizens, this limit
of benefit has been enhanced from Rs 1O,O(X) to Rs 15,000.
Ulli-versal Health Insurance Scheme : A community based Universal Health
Insurann' Scheme has been devised by the four public sector general
insurance companies to improve the access to the health care of the population
in general and poorer sections of the society in particular. The policy provides
tor reimbursement of medical expenses up to Rs 30,000 towards hospitalisation
floated amongst the entire family, death cover due to an accident for Rs 25,000
to the head of the family and compensation due to loss of earning of the
earning member @ Rs 50 per day up to a maximum of 15 days.

Ian Arogya Bima Policy : Jan Arogya Bima Policy is primarily meant for
thl' larger segment of the population who can not afford the high cost of
I1lPdical treatment. The limit of cover per person is Rs 5,000 per annum. The
premium for an adult individual is Rs 70 per annum up to 45 years of age.
Persons beyond 4S years and up to 70 years are also covered with slightly

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India 2005

higher premium. Two dependent children below the age of 25 are also covered
for the same compensation amount of Rs 5,000 per annum per child but at
a concessional premium of Rs 50 per person. The cover provides for
reimbursement of medical expenses incurred by an individual towards
hospitalisation / domiciliary hospitalisation for any illness, injury or disease
contra ted or sustained during the period of insurance.
Ollerseas Medic/aim Policy : The existing Overseas Medic1aim Policy
offering emergency medical expen<;es cover to overseas travellers has been
extended to include in-flight Personal Accident cover up to US $ 10,000 and
Loss of Passport cover up to US $ 150 from 1 April 1997. The extended cover
will be available without payment of additional premium under the Corporate
Frequent Travellers cover. A more comprehensive policy with additional
benefits has also been devised.
Bhagyashree Child Welfare Bima Yojana : Bhagyashree Child Welfare Bima
Yojana was introduced from 19 October 1998. It covers one girl child in a
family up to the age of ]8 years whose parents' age does not exceed 60 years.
The premium per girl child is Rs 15 per annum. In case of death of both or
either of the parents, an amount of Rs 25,000 would be deposited in the name
of the girl child with a financial institution. Fixed annual disbursements to
the girl child up to the age of 18 years is made from the amount to her credit
and the balance amount to her credit disbursed to her on attaining the age
of 18 years. In the event of death of the girl before attaining the age of 18
years, due to accident and surgical operations, the balance amount, standing
to the credit of the girl child, will be paid to the surviving parent / guardian.
Raj Rajeshwari Mahila Kalyan Yojana : Raj Rajeshwari Mahila Kalyan Yojana
offering security to women in the age group of 10 to 75 years irrespective
of their income, occupation or vocation was introduced from 19 October 1998.
For a premium of Rs 15 per annum, the policy provides a cover of Rs 25,000
for permanent total disablement of the insured woman. The policy also
provides a cover of Rs 25,000 for the death of ~ of her husband. For the
death of an unmarried woman, the policy provides a cover of Rs 25,000 which
will be payable to her nominee/legal heir.

Personal Accident Insurance Scheme for Kisan Credit Card : A Personal

Accident Insurance Scheme for Kisan Credit Card (KCC) holders covering
them against death and disability was introduced from 10 October 2001. The
policy provides personal accident insurance cover to the KCC holders to cover
them against accidental death or permanent disability for a capital sum
in..ured of Rs 50,000 while for partial disability, the compensation is Rs 25,000.
The policy covers KCC holders up to the age of 70 years. The premium is
Rs 17.85 per person per annum while for a three years' policy, the premium
is Rs 45 per person.
laid Rahat Yojana : The four nationalised general insurance companies have
introduced laid Rahat Yojana with an objective to expedite payment of
compensation to road accident victims. Under the scheme, a claimant is not

Finance

299

rt'quired to go to Motor Accident Claims Tribunal for claiming compensation

and he can directly approach the concerned insurance company. Non-fatal
injury claims involving accident victims of 18 years and above are taken up
under this scheme. The scheme is in operation in Ahmadabad, Mumbai,
Bangalore, Kolkata, Delhi, Koehi, Chennai and Pune. To expendite settlement
of Motor Third Party claims, special in-house committees have also been
formed.

Jigriculture Insurance Company of India Limited : Agriculture Insurance

Company of India Limited (AIC) was formed and incorporated in December
2002 as per Government's directive. It has been promoted by GIC, NABARD
and four public sector general insurance companies. The main objectives of
tht' new company is to protect and secure financial support in the event of
damage to crops, agriculture and allied subjects and to develop insurann,'
products in the best interest of the farming community. AIC book over
National Agriculture Insurance Scheme (NAIS) from GTC w.e.f. 1 April 2003.
National Agricultural Insurance Scheme : The Government of India have
introduced a new Scheme, called the National Agricultural Insurance Scheme
(NAIS), from Rabi 1999-2000 season replacing the Comprehensive Crop
Insurance Scheme (CCIS) which was in operation in the country since 1985.
The main objective of the scheme is to protect the farmers against losses
suffered by them due to crop failure on account of natural calamities. The
new scheme is available to all farmers and envisages coverage of all food
crops (cereals, rni1lets and pulses), oil seeds and annual horticultural/commercial
crops subject to availability of past yield data. Among the annual commercial/
horticultural crops, seven crops, namely, sugarcane, potato, cotton, ginger,
onion, turmeric and chillies are presently covered. All other annual horticultural
and commercial crops will be covered in the third year subject to the condition
of availability of past yield data.
Fann Income Insurance Scheme: AIC is implementing FIlS for guaranteeing
farmers' income from the current Rabi season on a pilot basis for two major
(TOPS, viz., Rice and Wheat, in 18 districts of 16 states. Under the scheme,
farmers' productions and price risks for crops cultivated are protected by
insuring minimum guaranteed income. The premium under the scheme is
based on actuarial rates. However, the small, marginal and other farmers are
given subsidy to make the scheme affordable.
Reforms in Insurance Sector : Insurance Sector has been opened up with
the establishment of Insurance Regulatory and Development Authority
(IRDA) in April 2000. Functioning from Hyderabad, Andhra Pradesh IRDA,
at present, consist of a Chairman, 3 whole-time and 4 part-time members.
The major function of the Authority is registration of Indian insurance
companies under IRDA Act, 1999. Since its constitution, it has granted
registration to 21 new insurance companies which comprises of 13 life
insurance and 8 general insurance companies in private sector. With a view
to develop the insurance sector and protect the interests of policyholders, the
AuthOrity has also issued regulations. Co-operatives and brokers have been
allOWed in the insurance sector with the enactment of Insurance (Amendment)
Act, 2002.

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The Authority has constituted a core group to work on reforms in health

insurance st'ctor. The core group will go into definition of health insurance
business, developing credible database in thp health insuranct' so as to initiatp
sci!:'ntific pricing of health insurance products in tht' country. A committee for
detariffing motor own damage has also been set-up which will be effective
from 1 April 2005. On the basis of the recommendation of the expert
committee, IRDA has notified remuneration for agents and brokers on 3 March
2004. Another Working Group is on the anvil to prepare the road map for
de-tariffing th~ non-life insurance business. The institution of Ombudsmen
have been establislwd at 12 centres allover the country to redress the
grit'vann's of individual on personal lines of insurance business. Th(:' IRDA
has also introduced the following stl'PS to provided better customer care.

Third Party Administrators for serving the health insurance products.

Licensing of Insurance Brokers representing the consumers for providing

better terms of insurance contracts and service.

Participation of banking and other institutions as corporate agents of

insurance.

Licensing of large force of agents for serving the insurance sector. (At
present, then' are more than ]0 lakh agents working for various
insurance companies).

Issue of regulation to protect the interest of policyholders.

DISINVESTMENT
The disinvestment of Government equity in Public St'ctor was made through
public offer L~_!:imalLlots.- from 1991-92 to 1999-2000. The disinvestment
through strategic sa_!! startl'd from 1999-2000. They reflect the policies of
respectiW-cuve""rl1ments.

Policy framework : The Policy of the GoVt>rnment on Public Sector as laid

out in the National Common Minimum Programme is as follows: "Thp
Government is committed to a strong and effective public sector whose social
objectives are met by its commercial functioning. But for this, there is need
for selectivity and a strategic focus. It is pledged to devolve full managerial
and commt'reial autonomy to successful, profit making companies operating
in a competitive environment. Generally profit making companies will be
privatised.
All privatisations will be considered on a transparent and consultative
case-by-case basis. The existing "navaratna" companies will be retained in the
public sector while these companies raise resources from the capital market.
While every effort will be made to modernise and restructure sick public
sector companies and revive sick industry, chronically loss-making companies
will either be sold-off, or closed, after all workers have got their legitimate
dues and compensation. The Government will induct private industry to turn
around companies that have potential for revival.

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The Government believes that privatisation should increase competition,

not decrease it. It will not support the emergence of any monopoly that only
restrict competition. It also believes that there must bt, a direct link between
privatisation and social needs-like, for example, the use of privatisation
revenues for designated social sector schemes. Public sector companies and
nationalised banks will be encouraged to enter the capital market to raise
resources and offer new investment avenues to retail investors.

CAPITAL MARKET DIVISION

The Division is responsible for policy matters relating to thc capital markets,
mutual funds, collection investment schemes, venture capital funds, FIls,
External Commercial Borrowing, derivatives, investor protection, pension
reforms, coinage and design, modernisation of mints and security press. In
pursuance to these objectives the Division administers the SEBI Act-1992, the
Sccunties Contracts (Regulation) Act-1956, the Depositories Act-1996, the
Metal 'Tokens Act-1889, Coinage Act-1906, Small Coins Offence Act and the
Foreign Exchange Management Act-1999.

Action with respect to Currency and Coinage: The Currency and Coinage
sections in the Capital Market Division are responsible for formulation and
eXl'l:ution of all policy matters related to : (i) Currency and coinage including
dl'signing of currency and coins, (ii) Production and supply of currency and
coins, (iii) Disposal of withdrawn coins, (iv) Production of paper for making
currency notes and security paper, (v) Production of postal stamps, judicial
and non-judicial stamps, RBI/SBI, Bonds, Cheques, Saving Certificates. Postal
Orders, Promissory Notes, Passports, Visas and such other security documents
as may be required by the Central and State Governments, Public Sector
Undertakings and local bodies, (vi) Overall administrative management and
control of all the nine industrial units under (DEA) engaged in the production
of Currency and Coins-four Mints, two Note Printing Presses. two Security
Printing Presses and one Security Paper Mill, (vii) Production of commemorative
coins, medals, etc.
DeVelopments in the Primary Market: (a) Issue Norms : Norms made
more stringent by introduction of additional criteria of 'net tangible assets'.
'minimum number of allotees in public issue' and 'profitability'. (b) Disclosure
Requirements: lnfom\ation on financial statements as per the Indian Accounting
Standards. (c) Amendments in Book Guidelines : Public issue pricing made
flexible by indication of a movable price band or fixed floor price in the Offer
Document. Institutional buyers (the QIBs) have been prohibited from
withdrawing their bids after the closure of the issue. (d) Central Listing
Authority: It was set up under the presidentship of M. N. Venkatachalaiah,
former Chief Justice of India. One of the aims of CLA is to ensure uniform
and standard practices to be followed by issuers seeking listing of their
securities on stock exchanges.

Developments in the Secondary Market: (a) Margin Trading - Corporate

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brokers with a net worth of at least Rs three crore to extend margin trading
facility to their clients in the cash segment of stock exchanges. (b) Securities
Lending and Borrowing - The clearing corporation I clearning house has been
allowed by SEBI as approved intermediary to borrow securities for meeting
shortfalls in settlement. (c) Secondary Market for Corporate Debt Securities
- FuB disclosure (initial and continuing) as per Companies Act, 1956, SEBI
(DIP) Guidelines 2000 and Listing Agreement with the stock exchanges are
to be made by listed companies for private placement of debt securities. (d)
Central Database of Market Participants - SEBI has made it mandatory for
every intermediary, registered company and investor to make application for
allotment of unique identification number for itself and for its related persons.
Furnishing periodical reports, etc., made mandatory as well. (e) Additional
continual disclosures. (f) Brokers to disclose details of bulk deals. Stock
exchanges to amend Clause 41 of the Listing Agreement to Publish number
of investor complaints received, disposed of, unresolved alongwith quarterly
results. (g) Enhance market safety and reduce credit risk - Clearning and
settlement cycle time has been further contracted to T+2 with effect from 1
April 2003 and this measure is expected to result in faster settlement, higher
safety and lower credit risk in the Indian capital market.

Foreign Institutional Investors (FIls): (a) Registration fee for FIls slashed
from US$ 10,000 to 5,000. (b) Sub-Account registration process simplified. (c)
FIls permitted to participate in : (i) buy-back transactions; (ii) open offer in
terms of Takeover Regulations.
MUTUAL FUNDS

Mutual Funds signify the institutional segment of capital markets. As in the

mature markets, mutual funds in emerging markets have been among the
fastest growing institutional investors.

Milestones in the development of Capital Markets : Extensive reforms have

been undertaken in the Indian capital market." since 1990, encompassing
reforms in the legislative framework, trading mechanism, institutional support,
etc. Reforms in each of the spheres of regulator, intermediaries, access to
market, pricing of securities, trading mechanism, settlement cycles, risk
management, derivative trading, etc., have been carried out.
In the early part of 2001 initiatives rush as banning of deferral products,
introduction of T +3 rolling settlement, tightening of disclosure norms for
companies, mandating unique client codes for all clients by the brokers,
strengthening of margin requirements, active promotion of dematerialised
trading in securities, etc., have been taken.
One of the most recent steps taken was to further empower the market
regulator, SEBI. The SEBI Act, 1992 has been amended to strengthen the
mechanisms of investigation and enforcement by SEBI, institutional
strengthening of SEBI, equipping SEBI with powers to search premises and
seize documents of any intermediary or person associated with the securities

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market defaulters; pass an order requiring any person who has violated or
is likely to violate, any provision of the SEBI Act or any rules or regulations
made thereunder to cease and desist for committing and causing such
violation, etc. Further, the penalties specified in the SEBI Act for violation of
the SEBI Act or rules or regulations, h~ve been substantially increased.

l~utual

th~.~

The
Fund of India,
been bifurcated into two
parts : (if UTI-I comprising of the gu'
eed poffion and (ii) UTI-II
comprising of all NAV based schemes and the Unit Trust of India Act, 1963
has been repealed. UTI-I will be managed by an Administrator to be appointed
by the Central Government, While UTI-U will be handed over to a new
company formed by certain public sector FIls/banks to run the mutual fund
business.

Recent Policy Developments : (a) Development of trading of government

securities, through order driven screen-based system : Trading in government
securities through a nation-wide, anonymous, order driven, screen based
trading system of the stock exchanges has been launched on 16 January 2003.
(b) T+2 Rolling Settlement : The stock exchanges were directed to compulsorily
follow T+2 rolling settlement for all listed securities with effect from 1 April
2003. (c) Launch of Interest Rate Derivatives on stock exchanges: With a view
to realising the advantages of an exchange-traded machanism, trading in
interest rate derivatives on stock exchanges was launched on 24 June 2003.
(d) Demutualisation and Corporatisation of the Stock Exchanges : A Bill
proposing necessary legislative amendments to the Securities Contracts
(Regulation) Act, 1956 to facilitate the process of demutualisation and
corporatisation of stock exchanges in the country was introduced in the Lok
Sabha in August 2003 and has since been referred to the Standing Committee
on Finance for examination. The Bill is expected to be reintroduced in the
newly constituted 14th Lok Sabha. (e) Amendments to the Securities Contracts
(Regulation) Rules, 1957 : In order to allow banks to participate in trading
of Government securities and interest rate derivatives on stock exchange were
carried out vide GOI Gazette notification dated 28 August 2003. (f) Regulation
of private placement of debt by listed companies : SEBI has, vide its circular
dated 30 September 2003 prescribed certain conditions for issuance, listing
and trading of privately placed debt securities by listed companies.
EXTERNAL COMMERCIAL BORROWINGS
External Commercial Borrowings (ECBs) are being permitted as an additional
source of funds to Indian corporates and PSUs for financing expansion of
existing capacity as well as for fresh investment, augmenting the resources
available domestically. The ECB refers to commercial loans, [in the form of
bank loans, buyers credit, suppliers' credit, scrutinised instruments (e.g.,
floating rate notes and fixed rate bonds)] availed from non-resident lenders
with minimum average maturity of three years. ECBs are approved within
an overall annual ceiling, consistent with prudent debt management, keeping
in view the balance of payments position and level of foreign exchange
reserves of the country. The guiding principles of ECB policy are to keep

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India 2005

borrowing maturities long, costs low and to encourage infrastructure and

export sector financing, which are crucial for overall growth of the economy.
Recently, in January 2004, the ECB policy was substantially liberalised.
End-use restrictions were removed and ECBs are allowed for corporate
investments in industrial sector especially infrastructure sector. However, thl'
restriction on ECB for investment in capital market or in real sector, continue.
All corporates, except banks, NBFCs and financial institutions are eligible ECB
borrowers. Banks and financial institutions, which had participated in the
textile or steel sector restructuring package as approved by the Government,
art' also permitted to thl' extent of their investment in the package. Financial
institutions dealing exdusively with infrastructure or export finance such as
IDFC, ILFS, Power Finance Corporation, Power Trading Corporation, IRCON
and EXIM Bank are considered on a case by cast' basis by RBI under the
approval route.
All ECBs satisfying prescribed criteria regarding eHgibility, interest rate
spreads, etc., are now under the autoroute up to USD 20 million for ECBs
bt'tween 3-5 years of average maturity and up to USD 500 million for ECBs
having average maturity of more than five years. All cases which fall outside
the purview of the autoroute under the new liberalised ECB policy are decided
by a committee of RBI.
Borrowers can raise ECBs from internationally recognised sources such
as : (i) international banks, international capital markets, multilateral financial
institutions (such as IFe ADB, CDC, etc.), (ii) export credit agencies and (iii)
suppliers of equipment, fOrt'ign collaborators and foreign equity holders.
EeB can be raised only for investment (such as import of capital goods,
new projects, modernisation / expanc;ion of existing production units) in real
sector-industrial sector, including small and medium enterprises (SME) and
infrastructure sector-in India.

Utilisation of ECB proceeds is permitted in the first stage acquisition of

shares in tht' disinvestment process and also in the mandatory second stage
offer to the public under the Government's disinvestment programme of PSU
shan's. Utilisation of ECB proceeds is not permitted for on-lending or
investment in capital market by corporates or in real estate.
In order to enable corporates to hedge exchange rate risks and raise
resources domestically, domestic rupee denominated structured obligations
are permitted to be credit-enhanced by international banks/international
financial institutions/joint venture partners.
In the EXIM policy for 2002-2007 announced on 31 March 2002 it was
indicated that units in Special Economic Zones (SEZs) will be permitted to
avail all ECBs for maturity of less than three years. Accordingly, units in SEZs
arE' allowed to raise ECBs without any maturity restriction but through
recognised banking channels and strictly on a 'stand alone basis'. Borrowers
III the SEZs are allowed to raise ECBs under the special window as announced

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in the EXIM Policy. They have to service the loan (principal + interest + any
other fee, charge, etc.) out of proceeds generated by the SEZ units. There is
an annual cap of US$ 500 million for such units in SEZs to avail of this facility.
Reserve Bank of India (RBI) monitors the overall cap.
According to IMF classification, the debts incurred by units in SEZs is
treated as external debt of India. However, this debt is separately and uniquely
identified while explaining that the units in SEZs will not have access to the
i()rei~n exchange reserves of India for purposes of servicing the debt.
All not-for-profit organisations, irrespective of their legal status, continue
to be ineligible for raising ECBs. Only those cooperative societies which are
commercial in nature and whose books of accounts are up to date and have
complied with statutory audit provisions without any qualifications arl'
eligible for raising ECBs. Foreign Currency Convertible Bonds (FCCBs) are
also governed by the ECB policy and any changes in the ECB policy are also
dpplicable to them.

PENSION REFORMS
Budget 2001-02 announced a pension scheme for new entrants based on
dpfined contributions. A High Level Expert Group (HLEG) suggested a new
hybrid scheme combining contributions from employees and the Union
Covernment on matching basis, on the one hand, while committing to the
employees a defined benefit as pension. The second initiative (for the
unorganised sector) was OASIS (Old Age Social and Income Security), a
project commissioned by the Ministry of Social Justice and Empowerment
under the Chairmanship of S.A. Dave. The report was submitted in January
20()O. In Budget 2003-04, a comprehensive pension system was announced
subsuming the earlier initiatives. The objective of the Government was to
design a scheme for new entrants in Central Government Sf.~rvice where the
contribution is defined, where no extra infrastructure is sought to be created
in Government and which is capable of subsequently serving other groups.
The Government approved on 23 August 2003 the proposal to implement
the budget announcement of 2003-04. The new system is mandatory for new
entrants to Central Government service, except to Armed Forces, in the first
st<l)!;e, replacing the existing defined benefit pension system. The new system
will also be available, on a voluntary basis, to all persons induding selfemployed professionals and others in the unorganised sector.
The main features of the New Pension System (NPS) are given below:
The new pension system is based on defined contributions. It will use the
existing network of bank branches and post offices, etc., to collect contributions
and interact with participants allowing transfer of the benefits in case of
change of employment and offer a basket of pension choices. (ii) The system
IS mandatory for new recruits to the Central Government service except the
armed forces and the monthly contribution would be 10 per cent of the salary
and DA to be paid by the employee and matched by the Central Government.
(i)

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However, there will be no contribution from the Government in respect of

individuals who arc not Government employees. The contributions and
investment returns would be deposited in a non-withdrawable pension tierI account. The existing provisions of defined benefit pension and GPF would
not be available to the new recruits in the Central Government service. (iii)
In addition to the above pension account, each individual may also have a
voluntary tier-II withdrawal account as an option. This option is given as GPF
stands withdrawn for new recruits in Central Government service. The
Government will make no contribution into this account. These assets would
be managed through exactly the above procedures. However, the subscriber
would be free to withdraw part or all of the second tier of subscribed money
anytime. This withdrawable account does not constitute pension investment,
and would attract no special tax treatment. (iv) Individuals can normally exit
at or after age 60 years for tier-I of the pension system. At exit the individual
would be mandatorily required to invest 40 per cent of pension wealth to
purchase an annuity (from an IRDA regulated life insurance company). The
individual would receiw a lumpsum of the remaining pension wealth, which
he I she would be free to utilise in any manner. Individuals would have the
flexibility to leave the pension system prior to age 60. However, in this case,
the mandatory annuitisation would bt> 80 per cent of the pension wealth.

Architecture of the Neu' Pension System: (i) It will have a central record
keeping and accounting (CRA) infrastructure, several pension fund managers
(PFMs) to offer three categories of schemes, viz., option A,B, and C. (ii) The
participating entities (PFMs and CRA) would give out easily understood
information about past performance, so that t}-" individual would able to
make informed choices about which scheme to choose.
Regulatory Authority : An independent pension fund regulatory and
development authority (PFRDA) will regulate and develop the pension
market. PFRDA will develop its own funding stream based on user charges.
The functions of PFRDA are ; (a) To deal with all matters relating to
promotion and orderly growth of pension market; (b) To propose comprehensive
legislation for the purpose indicated above; and (c) To carry out such other
functions as may be delegatl'd to the Authority for the purposes indicated
in (a) and (b) above.

Investment strategy: (i) There will be different investment choices such as

option A, Band C. The option A would imply predominant investment in
fixed income instruments and some investment in equity. Option B will imply
greater investment in equity. Option C will imply almost equal investment
in fixed income and equity. (ii) Pension fund managers would be free to make
investment in international markets subject to regulatory restrictions and
oversight in this regard. (iii) It is proposed to evaluate market mechanisms
(without any contingent liability) through which certain investment protection
guarantees can be offered for different schemes.
Tax Treatment: Pension contributions and accumulation would be accorded

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tax preference up to a certain limit, but benefits would be taxed as normal

income.

Scope of the New Pension System : The option of joining the new system
would also be available to the State Governments and as and when they
decide, the new system would be capable of accommodating the new
participants. Mandatory programmes under the Employee Provident Fund
Orgaisation (EPFO) and other special provident funds would continue to
oper'lte as per the existing system. However, individuals under these
programmes could voluntarily choose to additionally participate in this
~cheme.

Status of Implementation: A Resolution was issued on 10 October 2003

to operationalise the decision of the Government to introduce a new pension
system on defined contribution basis. A Notification was issued on 22
December 2003 outlining the major features of the new pension system. The
NPS became operative from 1 January 2004. The scheme is applicable to all
new entrants to Central Government.
In terms of the resolution, an interim pension Fund Regulatory and
Development Authority (PFRDA) has been constituted which started
functioning from 1 January 2004.
Till the CRA and PFMs are in place, as an interim arrangement, the
Central Pension Accounting Office will be acting as the interim CRA. All
contributions under NPS are currently going to the public account and earning
a return equal to GPF rate.

FOREIGN TRADE AND INVESTMENT

ADRlGDRlFCCB ISSUES
A scheme was initiated during 1992/1993 to allow the Indian Corporate Sector
to have access to the global capital market" through issue of Foreign Currency
Convertible Bonds (FCCBs) / Equity Shares under the global depository
mechanism. Initially, individual proposals for ADR/GDR issues required
prior approval of the Government of India, with effect from 19 January 2000,
such prior approval of Government has been dispensed with where the
ADRs/GDRs are issued against fresh underlying shares.
The following liberalisation in the guidetines has been announced in a
phased manner: (i) Scheme for limited two-way fungibility for Indian APRsI
GDRs announced by the Finance Minister in Budget 2001-2002 has become
operational. (li) Scheme for sponsored ADRs/GDRs has been notified by the
Government and operative guidelines issued by the RBI. The Scheme enable
an Indian Company to sponsor an issue of ADRs/GDRs with overseas
depOSitory against shares held by its shareholders in respect of divestment
by shareholders of their share holdings of Indian companies listed in India!
overseas.

Recent Initiative : With a view to further liberalising the capital account

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transaction Foreign Currency Convertible Bond (FCCB) up to the value of US

$ 500 million has been put under the automatic route and beyond US $ 500
milliun under the Reserve Bank of India route.

PORTFOLIO INVESTMENTS BY FOREIGN INSTITUTIONAL INVESTORS

A scheme for attracting portfolio from Foreign Institutional Investors (FIls)
has been operational since September 1992. Under this scheme, FIls including
institutions such as Pension Funds, Mutual Funds, Investment Trusts, Asset
Management Companies, Nominee Companies and Incorporated/Institutional
Portfolio Managers or their power of attorney holders are allowed to invest
in all the securitit's traded on the primary and secondary markets as also in
unlisted companies. Such securities would include shares, debentures and
warrants issued by companies which are listed / to be listed on the Stock
Exchanges in India and the schemes floated by domestic mutual funds.
Such portfolio investments by FIls arc subject to investment ceilings
indicated below:

a~

i)

Individual FlI/Sub-account

10 per cent of the issued and paid-up

capital in a company.

ii)

Aggregatt> by all FIls

24 per cent of the issued and paid-up

capital in a company which could bt'
increased up to the sectoral cap /
statutory ceiling, as applicable, by the
Indian company concerned by passing
a resolution by it~ Board of Directors
followed by passing of a special
resolution to that effect by its General
Body.

A Committe!;' is looking into the matter to identify the sectors in which

Foreign Institutional Investors (FIls) portfolio investments will not be subject
to the sectoral limits for Foreign Direct Investment.

FOREIGN INVESTMENT IN BANKING SECTOR

With a view to further liberalising foreign investment in Banking Sector, the
Government haw effected the follOWing changes :

1. FDJ limit in Indian Private Sector Banks: (a) FOI limit in Privat~ Sector
Banks is raised to 74 per cent under the automatic route including investment
by FIls. This will include FDI investment under Portfolio Investment Scheme
(PIS) by FIls, NRIs and shares acquired prior to 16 September 2003 by OCBs,
and continue to include lPOs, Private placements, GDRs/ ADRs and acquisition
of shares from existing shareholders. (b) The aggregate foreign. investment in
a private bank from all sources will be allowed up to a maximum of 74 per
cent of the paid up capital of the Bank. At all times, at least 26 per cent of
the paid up capital will have to be held by resident'>, except in regard to a
wholly-owned subSidiary of a foreign bank. (c) The stipulations as above will

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be applicable to all investments in existing ~1rivatl' sector banks also. (d) The
permissible limits under portfolio investment schemes through stock exchangers
tor fils and NRls will be as follows : (i) In the case of FIls, as hitherto,
individual FII holding is restricted to 10 per cent, aggregate limit for all FIls
,,mnot exceed 24 per cent, which can hl' raised to 49 per cent hy the bank
concerned passing a resolution by its Board of Directors followed by passing
of a special resolution to that effect by its General Body. (ii) Thus, the FII
investment limit will continue to be within 49 per cent. (iii) In tht.' case of
NRls, as hitherto, individual holding is restricted to 5 per cent and aggregate
limit cannot exceed 10 per cent. However, NRI holding can be allowed up
t(l 24 per cent provided the banking company passes a special resolution to
that effect in the General Body. (e) Applications for foreign direct investment
(FDI route) in private banks having joint venture I subsidiary in insurance
~t'ctor may be addressed to the Reserve Bank of India (RBI) for consideration
in consultation with the Insurance Regulatory and Development Authority
(IRDA) in order to ensure that the 26 per cent limit of foreign shareholding
applicable {or the insurance sector is not being breached. (f) Transfer of shares
under FDI from residents to non-residents will continue to require approval
of Foreign Investment Promotion Board (FIPS) under Foreign Exchange
Management Act (FEMA). (g) The policies and procedures prescribed from
lin Ie to time by RBI and other institutions such as SEB!, D! 0 Company Affairs
and IRDA on these matters will continue to apply. (h) RBI guidelines relating
to acquisition by purchase or otherwise of shares of a private bank, if such
acquisition results in any person owning or controlling 5 per cent or more
(If the paid up capital of the private bank will apply to foreign investors as
well.

2. Setting up of a subsidiary by foreign banks; (a) Foreign banks will bt.,

pl'rmitted either to have branches or subsidiaries not both. (b) Foreign banks
regulated by a banking supervisory authority in the home country and
meeting Reserve Bank's licensing criteria will be allowed to hold 100 per cent
paid up capital to enable them to set-up a wholly-owned subsidiary in India.
(C) A foreign bank may operate in India through only one of the three channels
viz., (i) branch! es; (ii) a wholly-owned subsidiary; and (iii) a subSidiary with
aggregate foreign investment up to a maximum of 74 per cent in a private
bank. (d) A foreign bank will be permitted to establish a wholly-owned
suosidiary either through conversion of existing branches into a subsidiary
or through a fresh banking licence. A foreign bank will be permitted to
establish a subsidiary through acquisition of shares of an existing private
sector bank provided at least 26 per cent of the paid capital of the private
Sl'ctor bank is held by residents at all times consistent with para 1(b) above.
(e) A subsidiary of a foreign bank will be subject to the licensing requirements
ilnd conditions broadly consistent with those for new private sector banks.
(f) Guidelines for setting up a wholly-owned subsidiary of a foreign bank will
b(, issued separately by RBI. (g) All applications by a foreign bank for setting
up a subsidiary or for conversion of their existing branches to subsidiary in
India will have to be made to the RBI.

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At present there is a limit of 10 per cent on voting rights in respect of

banking companies, and this should be noted by potential investor. Any
change in the ceiling can be brought about only after final policy decisions
and appropriate Parliamentary approvals.
INDO-JAPAN BILATERAL RELATIONS
Japan is the largest bilateral development partrler _for ~gi_a:_Japan's Official
e w.-as launched in 1958, and India
DevelopmentAsslstance \(JDA.) progra~_
was chosen as the first country for thef'Yen loans. Since then, the cumulative
amount of Japan ODA to India has rea
1,877 billion (about Rs 76,957
crore), on cornrnitment basis as on March 2004.

Yen

After lifting of economic sanctions by Japan on 26 October 2001, the first

Policy dialogue on development cooperation between India and Japan was
held on 14 March 2002 in New Delhi. Subsequently India received JapaneSt'
Yen OY) 111.239 billion in FY 2002-2003 for seven projects. In 2003-04, India
became the largest recipient of Japanese Official Development Assistance with
Japan providing an amount of Yen 1,25,004 million (equivalent to Rs 5,250
crore approximately) as loan to India for eight projects.
Tht:' Janapese Grant Aid Programme got resumed with the signing of
Exchange of Nott:'S for the project "improvement of Medical Equipment for
Sir JJ Hospital and Cama and Albless Hospitals in Mumbai" on 28 August
2003 for JY 759,000,000. Another Exchange of Notes for JY 2,]34,000,000 for
the project for "Construction of Diarrheal Research and Control Centre" is
likely to be signed shortly.
INDO-AUSTRALIAN BILATERAL RELATIONS
Bilateral development cooperation with Australia has been discontinued in
pursuance to Government of India's announcement in Budget 2003-04.
Australian ODA to India in 2004-05 is estimated at Australian $ 17.2 million
for ongoing activities which are allowed to be continued under new
guidelines.
NON-BANKING FINANCE COMPANIES (NBFCs)IFIPB APPROVALS
The Ministry of Finance, Department of Economic Affairs is the administrative
Ministry in respect of foreign investment proposals in the non-banking finann'
sector.
Foreign equity investments in NBFCs are permitted in 19 categories of
NBFC activities so far approved for foreign equity investments such as
merchant banking, stock broking, venture capital, housing finance, forex
broking, leaSing and finance, financial consultancy, etc. Recently, Money
Changing Business has been included. Guidelines for foreign investment in
NBFC sector have been amended so as to provide for a minimum capitalisation
norm of US $ 0.5 million, for the activities which are not fund based and
only advisory or consultancy in nature, irrespective of the foreign equity
participation level. This provision would be applicable to Investment Advisory

Finance

311

Services, Financial Cunsultancy, Credit Rpference Agencies, Credit Rating

Agencies, Forex Broking and Money Changing Business.
Rural/Micro Credit activity has been included as a permitted activity
tor foreign equity investment in the Non-Banking Finance Sector.
Earlier Foreign Direct Investment (FDI) in Non-Banking Financial
Companies (NBFCs) was permitted on a case by case basis up to 100 per cent
but with a condition that a minimum of 25 per cent of the equity is divested
in the domestic market. This condition has bt.>en removed, provided the
foreign investors bring in a minimum of US$ 50 million. FDI in NBFCs has
also been put on the automatic route subject to RBI guidelines and adherence
to minimum capitalisation norms.
INDIAN DIRECT INVESTMENT IN JOINT VENTURESIWHOLLYOWNED SUBSIDIARIES ABROAD
Liberalisation of the policy on Indian investment overseas was first undertaken
in 1992 on the rec~end~ns '?! th_e Kalyan Baneqee-Committee. Further
liberalisation, and streamlining of proceaUres,was unaerraKen lill995 when
revised guidelines were notified. Since then the policy has been consistently
libl'ralised from time to time. RBI was designated as the nodal agency for
administering the policy, which had earlier been entrusted to the Ministry
of Commerce. The basic rationale for opening up the regime of Indian
investments overseas has been the need to provide Indian industry access
to new markets and technologies with a view to increasing their
competitiveness globally and help the country's export efforts.
ROUTES FOR OVERSEAS INVESTMENT
Thf.' liberalised policy provides for the follOWing routes : (i) Aut 0 mat i c
Route: Indian corporates/Registered partnership firms have been allowed
to invest in entities abroad up to 100 per cent of their net worth in a year,
without prior approval of Reserve Bank or Government of India. The
investment can be funded out of balances held in_Ex~ange Earner~ foreign
Currency Account (EEFC) of the Indian company or 100 per
ADR/GDR
proceeds or by drawing foreign exchanges from an authorised dealer in India
up to 100 per cent of the net worth of the Indian company. Such investments
Would be reported post facto to the Reserve Bank. (ii) ADR/ GDR Automatic
Route: In terms of this scheme, Indian companies can freely utilise up to
100 per cent of ADR/GDR proceeds for overseas investments without any
limit under the automatic route subject to post facto report to the Reserve
Bank. (iii) ADR/GDR automatic stock/ swap route: Under this route Indian
companies can automatically swap their fresh issue of ADRs/GDRs for
overseas acquisitions in the same core activity subject to post facto report
to RBI. (iv) Normal Route: Proposals not covered under the above automatic
routes are considered by the Special Committee on Overseas Investments
hf.'aded by the Deputy Governor, RBI with member representatives from
Ministries of Finance, Commerce, External Affairs and the Reserve Bank. RBI

-cent

312

India 2005

is thl' secretariat for this Committee. The application for direct investment
in joint venture/wholly-owned subsidiary outside India or by way of
exchange of shares of a foreign company, shall be made in form aD! or in
form ODB respectively, to RBI, Exchange Control Department., Central
Office, Mumbai - 400 001.
OVERSEAS INVESTMENT POLICY
The policy for Indian direct investment abroad has been substantially
liberalised over the past thrcc years. During the fiscal year 2003-04, the policy
has been further streamlined as follows : (i) Corporates - Listed Indian
companies are permitted to invest abroad in companies, (a) listed on a
recognised stock exchange and (b) which has the shareholding of at least
10 per cent in an Indian company listed on a recognised stock exchange in
India (as on J January of the year of the investment). Such investments shall
not exceed 25 per cent of the Indian company's net worth, as on the datl'
of latest audited balancp sheet. (ii) Individuals - Resident individuals are
permitted to invest in overseas companies indicated as (i) above without any
monetary limit. (iii) Mutual Funds have also been permitted to invest in
equity of overseas companies indicatcd at (i) above. (iv) Indian corporates/
Registered partnership firms are allowed to investml'nt in entities abroad up
to 100 per cent of their net worth and the existing monetary ceiling of
US$ J 00 million (US$ 10 million for partnership firms) removed. (v) Indian
corporates / Registered partm~rship firms arlO allowed to undertake agricultural
activities either directly or through an overseas branch. (vi) Investments in
JV / WOS abroad through ttll' medium of a Special Purpose Vehicle permitted
under the automatic route. (vii) Investments in JV / was abroad by way of
share swap permitted under the automatic route. (viii) The stipulation of
minimum network of Rs 15 crore for Indian companies engaged in financial
sector activities in India removed for investment abroad in the financial
sector. (ix) The fl'quirement of prior approval of RBI dispensed with for
diversification of activity / stl'pdown investment by JV /WOS established by
an Indian party. (x) Prior permission of RBI dispensed with for transfer by
way of sale of shares of a JV /WOS abroad. (xi) Indian companies permitted
to makl' overseas investments in foreign entity engaged in any bonafide
business activity. (xii) The overall annual ceiling on overseas investment by
Indian corporates/ Registered parhlership firms in JV /WOS abroad remowd
with effect from the financial year 2003-04.
OVERSEAS INVESTMENT APPROVALS
Betwe(:'n April 1996 and March 2004, approved overseas investments have
increased by about 160.6 per cent to US$ 1450.56 million. In the current
financial yedT 2004-05, during the period April-May 2004, 183 approvals were
granted to Indian companies for overseas investments worth US$ 195.72
million as comparl'd to 192 approvals worth US$ 211.71 million approved
in the corresponding period of last year.

Finance

313
,_/'

EXPENDITURE \ I
.Thc Department of-(xpenditure comprises seven main divisions, namely: ..(.i.}.
Establishment Division; @) Plan Finance Division; (iii) Finance Commission
Division; (iv) Controller General of Accounts; (v) Cost Accounts Branch; (vi)
Staff Inspection Unit and (vii) Integrated Finance Division.
ESTABLISHMENT DIVISION

Establishment Division is the nerve centre for the entire gamut of the service
conditions of the Central Government employees having financial content.
Basically, these include revision / prescription of pay scales, fixation of pay
and various allowances. The proposals received from various Ministries/
Departments of the Government seeking clarification in regard to revision
and prescription of pay scales, increments, deputation allowance and cadre
n'view of various categories of posts are examined in this Division keeping
in view the equity and comparable relativities and duties. Besides, this
Division also functions as the Cadre Authority for the Indian Cost Accounts
Service (ICAS) and also attends to vigilance. A Public Grievance Redressal
Machinery with Joint Secretary in charge of Administration as the Director
of Grievances is also functioning in this Department.
A "complaint committee" has also been constituted in this Department
as per the guidelines of the Supreme Court for redressing the grievances of

women.
NATIONAL INSTITUTE OF FINANCIAL MANAGEMENT

The Government of India in 1994 established the National Institute of

Financial Management (NIFM) as an autonomous organisation under the
Ministry of Finance to train directly recruited Probationers belonging to the
various Group A Accounting Services. The Union Finance Minister, the
Minister of State in the Finance Ministry, the Secretary (Expenditure),
Ministry of Finance and the heads of the various accounting services, are
ex-officio members of the Registered Society for providing broad policy
gUidelines. Currently the Institute runs two long-term programmes Professional Training Course of 44 weeks for newly recruited Probationers
of the Accounting Services and a 21 month MBA (Finance) programme for
officers of the Central Government, the State Governments, Public Sector
Undertakings and other organisations under Government.
For the World Bank, NIFM is one of the two centres in the country
for training of beneficiaries in procurement procedures. NIFM also provides
consultancy services to various departments and organisations of the
Government of India, notable among which are constituencies taken up for
the Indian Council of Agricultural Research, the Ministry of Rural
Development, Ministry of Finance, Government of Madhya Pradesh, National
Backward Classes Finance and Development Corporation and others.
PLAN FINANCE-l

The Plan Finance-J Division handles matters relating to States' finances and

314

India 2005

financing of States' Annual Plans. It release Central assistance to States for

their Annual Plans including the assistance for externally aided projects,
Additional Central assistance for Slum Development Programme, Hill Areas!
Western Ghats Development Programmes, Border Areas Development
Programmes, Accelerated Irrigation Benefit Programmes, Accelerated Power
Development Programme, Pradhan Mantri Gramodaya Yojana (PMGYothers), add itional Central assistance for other specific schemes I projects of
the States, SpeCial Plan Assistance to States, National Social Assistanc(;'
Programme including Annapurna, Central assistance for Development and
Reform Facility I Rashtriya Sam Vikas Yojana, Central assistance for Nutrition
Programme for Adolescent Girls, Central assistance for Initiative for
Strengthening Urban Infrastructure (ISUI), Assistance for Rural Electrification
Programme and Assistance for Maru Gochar Yojana.
Funds are released from the National Calamity Contingency Fund
(NCCF) for national calamity of rare severity as per the decision of the High
Level Committee in accordance with the guidelines of the schemes. Eleventh
Finance Commission has recommended a sum of Rc:; 8,255.69 crore Centre'~
share under Calamity Relief Fund (CRF) for its award period 2000-2005 to
the States. Centre's share of CRF amounting to Rs 6,355.47 crore was released
during the first four years 2000-2004 of EFC period.
In order to help the States to capitalise on the current low interest
regime, Goverment of India has formulated the debt swap scheme. Thp
scheme enablt' States to pre-pay expensive loans contracted from Government
of India in the past, with current low coupon bearing small savings and open
market loans.
The Debt Swap Scheme impacts on the interest burden through the
gradual conversion of the high cost debt into a low cost debt. The process
will help the States in reducing the burden of interest payments in the years
to come.
PLAN FINANCE-II
Plan Finance II Division is primarily concerned with matters relating to the
Central Plan. PF.II Division serves as a window within the Finance Ministry,
which has an overview of the entire canvas of development activity of the
Central Government, both at the project level and sectoral policy level. PF.I1
Division also deals with matters relating to Food, Fertilizer and Petroleum
subsidies.
Guidelines for Formulation, Appraisal and Approval of Government
funded Plan schemes/projects have been issued vide O.M No.l(2)/PF.n/ 03
dated 7 May 2003. According to these guidelines, which are in force w.e.f
1 July 2003, Ministries/Departments are required to prepare Feasibility
Report (FR) for obtaining 'in-principle' approval of Planning Commission and
a Detailed Project Report (OPR) for appraisal of the scheme/project in respect
of all Plan schemes I projects costing Rs 50 crare or more.

Finance

315

Based on the exercise taken up in November 2003, for estimation of

Internal and Extra Budgetary Resources(I&EBR) for financing the Annual
Plan of the Central Public Sector Undertakings, the likely availability of
I&EBR of CPSUs for 2003-2004(RE) works out to Rs 90,635.42 crore (IR-Rs
'17,119.63 crore and EBR-Rs 33,515.79 crore). Similarly, the IEBR assessed for
Annual Plan 2004-05(BE) is of the order of Rs 1,07,749.51 crore (IR-Rs
01,055.26 crore and EBR-Rs 46,694.25 crore). Planning Commission decides
the extent to which the IR/IEBR will be utilised for funding the Plan. Plan
Fina",:e II Division also deals with financial restructuring of central PSUs.
STAFF INSPECTION UNIT
The Staff Inspection Unit (SID) was set up in 1964 with the objective of
<;t'curing economy in staff consistent with -acrrn~tive efficiency and
evolving performance standards and work norms. The SIU's reports are
mandatory and have to be implemented in toto within a specified time frame.
CONTROLLER GENERAL OF ACCOUNTS

The Controller General of Accounts (CGA) is the principal advisor to the

Government of India on accounting matters and is responsible for establishing
and maintaining a sound and efficient accounting and financial reporting
system. The CGA dischar~s the following functions:
Principles and Form of Accounts : The CGA prescribes general principles
and form of accounts of government relating to Union as well as State
Governments and frames rules and manuals relating thereto. In exercise of
this power, CGA is entrusted with the responsibility of framing Government
Accounting Rules, Central Government Accounts (Receipts and Payments)
Rules, Central Treasury Rules, Accounting Rules for Treasuries, Account
Code for State Accountant Generals, Account Code - Vol lII, List of Major
and Minor Heads of Account, Civil Accounts Manual, Suspense Manual,
Drawing and Disbursing Officers Manual, and Inspection Code.

Budgetary Control, Ptlyments, Receipt Collection and Accounting : The

eGA, through Chief Controller / Controller of Accounts and their Pay and
Accounts Offices, carries out the budget control, payments, receipt collection
and accounting functions for the Union Government. CGA also prescribes
the banking arrangement for government ~ansactions and closely monitors
movement of cash through a network of over 20,000 bank branches
authorised to handle government transactions, into and out of the Government
cash balance with the Reserve Bank of India.

Fina"wd lUporting: The CGA provides regular feedback to the Finance

Minister and other line Ministries on the status of Government finances. He
submits a critical fiscal analysis to the Finance Minister every month and
releases data on Central Government Operations on the Internet in compliance
with the Special Data Dissemination Standards (SODS) of IMP. The eGA also
compiles the annual accounts of the Union Government. The accounts,

316

India 2005

comprising the Union Government Finance Accounts and the Appropriation

Accounts, are presented before the Parliament duly audited by the Comptroller
and Auditor General of India. A summary of these accounts is presented
by thl' eGA in the form of "Accounts at a Glance" with a view to providp
better understandability to the users of these documents.

Technical Advice on Accounting Matters : The eGA provides advice to

all civil Ministries/Departments on various accounting matters. The advice
rendered by the eGA covers aspects related to maintenance of accounts.
accounting procedures for new schemes/ programmt's or activities, collection
of receipts and it's crediting into Government account, release of payment
and it's accounting, creation and operation of funds within Government
accounts, banking arrangements of making payments and collecting receipts,
etc. The advice of the Controller Gl'neral of Accounts is binding on the
Min i s tries / Depa rtmen ts.
Disbursement of Pensiotr : The CGA is also responsible for disbursement
and accounting of pension payments to Covernment employees retiring from
all civil ministries. The functions art' discharged through Central Pension
Accounting Office (CP AO), which was created with the primary objective
of simplifying tht procedure of pension disbursement and accounting and
providing better quality service to the pensioners. The CI'AO is the central
budgeting and accounting unit for the civil pensions. It functions as a single
point interface between the Government, the banks and the pensioners. With
thl' introduction of modern technology, CPAO is able to serve over (l,OO,OOO
pensioners spread all over the country through the network of bank branches
specially authorised for pension disbursement.
Internal Audit : Tht, Internal audit function is carried out with the help of
Internal audit units in every Ministry, supervised by the respective Controller
of Accounts and additionally by the Inspection Wing of the CGA; the latter
also provides guidance to the Controller of Accounts on the subject.
The CGA also brings out annual Internal Audit Report highlighting
major irregularities, such as those involving over payments, non-recovery of
Government dues, losses or infructuous expenditure, irregular procurement,
etc., observed during the course of internal audit of various Ministries.

Capital Restructuring and Disinvestment of psus : The responsibility for

evaluation and processing of proposals relating to the capital restructuring
of various public sector undertakings (PSUs) of the Union Government was
entrusted to the Controller General of Accounts in 1989. A PSU - Restructuring
Cell has b~n established in the office of Controller General of Accounts for
this purpose. The proposals are evaluated on the basis of company specific
options available and in evaluating these proposals a clear distinction is made
between the Government's role as a regulator and it's commercial interests
as owner of an industry participant.

Human Resource Development : The eGA manages the cadre of the Indian

Finance

317

Civil Accounts Service (lCAS) and the entin' accounts personnel deployed
in civil ministries and is responsible for the entire gamut of personnel
management including their recruitment, transfers, promotions, training, and
cdpacity building both within the country as well as abroad, and periodical
reviews of cadre strength and distribution.
TRAINING

r:w

Institute of Government Accounts and Finance (INGAF) has been setup

the year 1992 under the CGA to meet the training needs of the Civil
/\CC(lunts personnel. Thc Institute has developed itself into a centre of
academic excellence in the field of Government Accounts and Finance. It acts
clo. il 'think-tank' of the Civil Accounts OrganisatIOn providing feedback to
Ihl' Controller General of Accounts on the training npeds and various
lechnical matters.
III

Besides training the officers and staff of the Civil Accounts Organisation
the Institute has also been training personnel of variou~ Ministries and
Departments of the Central as well as State Covernments.
INGAF also provides consultancy services to various Government and
autonomous bodies. The Institute has been conducting training for the
clccounts and finance personnel of s{:'veral foreign governments under the
International Technical and Economic Cooperation (ITEC) programme of the
Ministry of External Affairs and also under bilateral cooperation.
The Institute has its main centre at Delhi and regional centres at
Mumbai, Chennai and Kolkata.

FINANCE COMMISSION DIVISION

STATES FISCAL REFORMS FACILITY

Pursuant to the recommendations of the Eleventh Finance Commission,

Government of India created a Fiscal Reforms Facility (2000-01 to 2004-05)
for incentivising the States to undertake Medium-Term Fiscal Reform
Programme. The State governments were asked to draw up a Medium-Term
Fiscal Restructuring Policy which envisages time-bound action points on
fiscal objectives and reforms, power sector reforms, public sector restructuring
and budgetary reforms.
The monitorable fiscal reforms programme of twenty-five States have
so far been approved by the Monitoring Committee. Based on the Medium
Terms Fiscal Reforms Programme as approved by the Monitoring Committee,
18 States have signed Memorandum of Understanding/Letter of Exchange
with the Ministry of Finance.
The guidelines issued by the Ministry of Finance on States' Fiscal
Reforms Facility envisaged that if the State sector on an average achieves
a 5 percentage point reduction in revenue deficit as percentage of revenue

318

India 2005

receipts consistently each year, by the financial year 2005-06 the sector as
a whole would come into revenue balance.
Based on the recommendation of the MOnitoring Committee an incentiw
grant of Rc; 4,524.22 crore have been released from the Incentive Fund to
these States.
Additional amounts by way of open market borrowings are being
allowed if the State concerned has a structural adjustment burden. So far,
seven States, namely, Nagaland, Kerala, Manipur, Mizoram, Andhra Pradesh,
Tamil Nadu, Orissa, Sikkim, and Himachal Pradesh have been allowed
additional open market borrowings to the tune of Rs 2,621 crore, under the
States' Fiscal Reforms Facility to finance their structural adjustment problems
These were mainly to finance the burden of VRS in State PSUs.
From the reforms measures underlined by the States in their MTFRP
for revenue augmentation, expenditure compression, reducing debt burden,
restructuring of PSEs, Power Sector reforms and budgetary reforms. One can
reasonably come to the conclusion that the States have been sensitised to the
need for fiscal consolidation. A menu of reform measures undertaken by the
States include : i) Increasing the tax rates and widening the tax base. A
consensus on floor rates. ii) Better tax administration and introduction of
VAT. iii) Indexation of user charges in services such as Road Transport
undertakings, irrigation, etc. iv) Ban on recruitment and abolishing of vacant
posts. v) Freezing of grant-in-aid. vi) Reprioritisation of expenditure. vii)
Capping of borrowings and reduction in the plan size to sustainable levels
of debt. viii) Restructuring SEBs and setting up of SERCs. ix) 100 per cent
metering at 11 KV levels and securitisation of SEB debt. x) Making the budget
documents more transparent by including details of number of employees
in the roll of State Government, the expenditure incurred on their salaries
and terminal benefits and the expenditure on subsidies. xi) Computerisation
of treasury records and day-to-day functioning. xii) Introduction of debt
swap mechanism
To keep the process of reform on rail, the Ministry of Finance has been
interacting with the State Governments to review their reform matrix at
regular intervals. This also enables the States to revise the MTFRP targets
keeping in view the actual performance and necessary corrections in
macroeconomic assumptions
Under Eleventh Finance Commission recommendations for 2()()()-'2005,
Rs 3,156.83 crore under upgradation and special problem grant has been
released so far. Under the Local Body Grant, a total amount of Rs 6,721.34
crore has been released to States. Under Non-plan Revenue Deficit Grant,
a sum of Rs 27,055.70 crore has been released to the concerned states so far.
Further, Rs 236.38 crore has been released to states during 2002-03 for
completed works under upgradation and special problem gr~nts of Tenth
Finance Commission's award period. In addition, to the above, Centre's share
of Calamity Relief Fund amounting to Rs 7,162.94 crore and NCCF grant of
Rs 5,700.64 has been released to states so far.

Finance

319

COST ACCOUNTS BRANCH

The Cost Accounts Branch (CAB) is functioning under Department of
Expenditure, Ministry of Finance as an independent agency, to conduct Cost
Price, Techno-Economic and Tariff studies besides verifying the cost of
production and determining the fair selling prices for Government purchases.
The role of CAB in due course got further extended to fixing prices for a
brge number of products covered under the Essential Commodities Act, such
as, Petroleum, Steel, Coal, Cement, etc., under the Administered Price
Mechanism. Simultaneously, various other Ministries/Departments also started
lIsing this expertise to meet their requirements as experts in Cost determination,
efficiency evaluation, prescribing costing procedures, pricing matters and
project evaluation and commercial accounts. Later, to consolidate this
professional expertise under one umbrella, a Central Cost Accounts (CCA)
Pool was set-up in 1961. In 1978, with a view to attract and retain the
qualified professionals in the Government, a Group-' A' Central Accounting
Service, namely, Indian Cost Accounts Service, was constituted.
'I

1-\('

II

,of

1'-1

<,'

The CAB is the exclusive organisation in the Central Government for

conducting cost / pricing studies and rendering related professional assistance
to different Ministries/Departments and Government agendes. With the
mcrger of Bureau of Industrial Costs and Prices (BICP) in the Tariff
Commission and the changed role envisaged by the Government for Tariff
Commission, CAB, virtually, is the only expert agency available in the
Government to undertake cost/pricing/valuation/cost and performance
audit related matters / studies. Besides the traditional areas, task of study of
user charges in various fields have also been assigned to the Branch.

EXPENDITURE REFORMS COMMISSION

----------

The Expenditure Reforms Commission, which was set up by a Resolution

dated 28 February 2000 under the Chairmanship of K_:.p__:_Geethakrishanan,
former Finance Secretary to the Government of India, with a view to
reviewing the entire gamut of Government expenditure, completed its term
on 30 September 2001. The Commission submitted Ten Reports covering,
inter-alia, restructuring in cases of 36 Ministries/Departments. On further
scrutiny, around 24,326 posts were identified by these Ministries/Departments
for abolition and out of which around 18,669 posts have actually been
abolished so far.

REVENUE

Iii

~.

The Department of Revenue exercises control in respect of revenue matters

relating to direct and indirect Union taxes, through two statutory Boards,
namely, the Central Board of Direct Taxes and the Central Board of Excise
and Customs. The Department is also entrusted with administration and
enforcement of controls and regulatory measures provided in the enactments
concerning Central sales tax, stamp duties forfeiture of properties of

India 2005

320

smugglers and foreign exchange manipulators, and other fiscal statutes.

Control over production and disposal of opium and its products is also
vested with this Department.
DIRECf TAXES
The Income tax Department administers a number of Direct Tax Acts,
namely, tht' Income Tax Act, 19~1, the Wealth Tax Act, 1957, the Gift Tax
Act, 1958, Interest Tax Act, and the Expenditure TaxAct, 19R7. Table 13.5
gives -figures of revenue collection under the major direct taxes from 19979R onwards.
TABLE 13.5 : DIRECr TAXES
Taxe,

Amount of

Rrv~nu~

(Rs in crore)

rollt'Cll'd

1'l'l7-98

1'l'l!j-'l'l

1m-2000

2000-2001

2001-02

2002-03

2003-04'

2(J,Ol~

24,524

30,692

35,696

30,604.13

46,172.35

63,520.33

\ Inromr Tax

17,101

20,240

25,655

31.764

32,()04.09

36,865.96

40,742.16

~,j Ink'Mit lax

1,205

1,264

1,212

414

189.30

-275.25

-43.85

Wralth Tax

11J

162

133

132

135.36

153.88

136.61

10

-3

-0.30

(-)150

(-) 1.79

0.85

9,834

395

272

298

259.63

170.63

49.51

I Corporation

ta~

'~n>

.xpt'nditun'

T~

PnwisilJllai

MAJOR CHANGES IN DIRECf TAXES

Legislation related to direct taxes for the year 2004-2005 is contained in the
Finance (No.2) Act, 2004. Some significant provisions of the Finance (No.
2) Act, 2004 are: 1. Stability in tax rates continues with no change in the
rates of personal tax or tax on companies. The income-tax exemption limit
remains unchanged at Rs 50,000. However, resident individuals having total
income not exceeding Rs 1,00,000 will be allowed a 100 per cent rebate on
tax payable. Surcharge at the rate of 10 per cent is leviable in case of
individuals, Hindu Undivided Families (HUF), association of persons, etc.,
in case the income exceeds Rs 8.5 lakh. In the case of companies, cooperative
societies, local authorities and firms, surcharge is leviable at the rate of 2.5
per cent. An additional surcharge, to be called "Education cess on incometax", is to be levied at the rate of 2 per cent on income-tax as increased by
surcharge, if any. 2. Section 10(4){ii) has been amended to withdraw the
exemption available to any income of an individual by way of interest, paid
or credited to the Non-resident (External) Account, on or after the 1 April
2005. 3. Section 1O(15){iv){fa) has been amended to withdraw the exemption
available on any interest payable by a Scheduled Bank to a non-resident or
a Itot ordinarily resident on deposits in foreign currency, on or after the 1
April 2005. 4. Section 10{15A) has been amended to withdraw the exemption

321
available to any payment made by an Indian company engaged in the
business of operation of aircrafts, to acquire an aircraft or an aircraft engine
on lease from a foreign Government or a foreign enterprise under an
agreement entered into on or after the 1 April 2005. 5. A new clause (19)
has been inserted in section 10 of the Income-tax Act exempting the family
pension recl'ived by the widow or children or nominated heirs of a member
(If the armed forces of the Union (including para-military forces) killed in
tlw course of operational duty, in such circumstances and subject to such
conditions as may be prescribed in Income-tax Rules. 6. Section 10(23FB) has
becn amended to define a Venture Capital Undertaking (VCU) as a VCU
referred to in the Securities and Exchange Board of India (Venture Capital
Funds) Regulations, 1996 made under the Securities and Exchange Board of
India Act, 1992 and notified as such in the Official Gazette by the Board
for the ;JUrposes of this c1a:se. 7. Section 10(23G) has been amended so as
to provide that income by way of dividends, interest, or long-term capital
gains of an infrastructure capital company shall be taken into account in
computing thp book profit for purposes of section 115-JB and for payment
of tax under that section. 8. Any sum exceeding Rs 25,000 which is received
without consideration by any individual or a Hindu undivided family, on
or after 1 September 2004, from any person, shall be taxed as "income from
other sources". However, certain sums such as those received from close
TPlatives have been exempted. 9. A new clause (37) has been inserted in
section 10 of the Income-tax Act, 1961, exempting from tax, the capital gains
arising to an individual or a Hindu undivided family from transfer of
agricultural land situated in specified urban limits which has been used for
agricultural purposes, by way of compulsory acquisition where the
compensation or consideration has been received on or after the 1 April 2004.
The exemption shall be available only if such land has been used for
agricultural purposes during the preceding two years. 10. Section 12AA has
been amended to empower the Commissioner of Income-tax to withdraw the
registration granted to a trust or institution if the activities of the trust or
institution are not found to be genuine or not in accordance with its objects.
11. The limit for increase in installed capacity for the purpose of availing
additional depreciation in the case of industrial undertakings existing before
1 April 2002 has been reduced from 25 per cent to 10 per cent. 12. Approval
granted to associations/institutions and notifications for eligible projects or
schemes under section 35AC can be withdr~wn by the National Committee
in case a progress report is not submitted within the prescribed time after
the end of each financial year. 13. No set-off of loss under the head "Profits
and gains of business or profession" shall be allowed against the income
under the head "Salaries". 14. To give effect to the new pension scheme of
the Central Government a new section BOCCD has been inserted which
provides for a deduction from the total income of an individual employed
by the Central Government on or after 1 January 2004, of amounts paid or
deposited by him in the Individual Retirement Account (IRA), which do not
exceed ten per cent of his salary in the previous year. The matching
contribution made by the Central Government to the said account is also

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India 2005

eligible for deduction. The amounts standing to the credit of the assessa'
in the Individual Retirement Account along with accretion thereon shall be
taxed as income in the year of withdrawal or receipt of pension. No rebatt'
shall be available under section 88 in respect of amounts on which deduction
has been claimed under section 8OCCD. 15. The time limit before which the
eligible undertaking in the telecom sector has to start providing
telecommunication services, etc., for availing tax holiday under section 80IA of the Income-tax Act, has been extended from 31 March 2004 to 31 March
2005. However, the restrictions on transfer of old plant and machinery and
splitting up or reconstruction of business for availing the deduction which
were applicable only to the power sector have been made applicable to the
telecom sector also. 16. Tax hoiiday for the power sector under section 80IA has been extended to undertakings which undertake substantial renovation
and modernisation of the existing transmission or distribution lines. Further,
the restrictions on the transfer of old plant and machinery and splitting up
or reconstruction of an old business for availing the deduction shall no longer
be applicable in the caSt' of splitting up or, reconstruction, or re-organisation
of State Electricity Boards. 17. The time limit for setting up of new industries
in Jammu & Kashmir for the purpose of tax holiday under section 80-18(4)
of Income-tax Act has been extended from 31 March 2004 to 31 March 2005.
However, industries engaged in manufacture or production of tobacco
products, alcoholic drinks or aerated beverages shall not be eligible for tax
holiday. 18. For purposes of availing deduction under section 80-IB(8A), the
time limit for obtaining approval of the prescribed authority by companies
carrying on scientific research and development, has been extended from 31
March 2004 to 31 March 2005. 19. The time limit for obtaining approval of
the local authority in case of housing projects for purposes of deduction
under section SO-IB(10) has been extended to 31 March 2007. However, a
time limit has been introduced for completion of the hOUSing project within
4 years from the end of the financial year in which the project is approved
by the local authority . For this purpose the date of approval shall be the
date on which the building plan is first approved by the local authority and
the date of completion of the housing project, shall be the date on which
the completion certificate is issued by such authority. It has also been
provided that the built-up area of the shops and other commercial
establishments included in the housing project should not exceed five per
cent of the aggregate built-up area of the housing project or 2000 sq. ft.,
whichever is less. Further, the condition of minimum plot size of one acre
as well as the time limit for completion of the housing project has been
relaxed for housing projects carried out in accordance with a scheme framed
by the Central or State Government for reconstruction or redevelopment of
existing buildings in slum areas. 20. Tax holiday under section 8O-m(llA)
has been extended to undertakings deriving profit from the business of
processing, preservation and packaging of fruits or vegetables. 21. A new
sub-section (11B) has been inserted in section 80-18 which provides for a 100
per cent tax holiday for a period of five years for an undertaking deriving

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323

profits from the business of operating and maintaining a hospital of hundred

heds or more in a rural area which is constructed before 1 April 2008. 22.
Section 88(2)(xv)(c) has been amended so as to include within the purview
of tax rebate, any sum paid on account of repayment of the amount borrowed
bv the assessee for the purchase or construction of a residential house
property, from an authority or Board or corporation established under a
Central or State Act. 23. A new section 880 has been inserted to provide
a 100 per cent rebate on tax payable in the case of individuals, resident in
India and having total income not exceeding R" one Lakh. Where the pretax income of an individual exceeds rupees one lakh, marginal relief shall
bt' allowed to ensure that the post-tax income of such individuals does not
fall below rupees one lakh. 24. The deductio~ under section SOU for persons
with disability or severe disability or under section BODO for expenditure
illLurred for the medical treatment of a dll}:>endent who is a person with
disability or severe disability, has been extended to cover persons or
dependents suffering from autism, cerebral palsy or multiple disabilities as
defined under the National Trust for Welfare of Persons with Autism,
({'rebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. 25.
Sub-section (7) of section 94 has been amended so as to provide that where
any person buys or acquires any unit within a period of three months prior
to the record date and sells or transfers the same within a period of nine
months after such record date, and dividend or income received or receivable
is exempt, then, the loss if any arising from such sale and purchase shall
tw ignored to the extent such loss does not exceed the amount of such income
or dividend while computing the income chargeable to tax of such person.
A new sub-section (8) has also been inserted in section 94 so as to provide
that where a person buys or acquires any units within a period of three
months prior to the record date and he is allotted additional units on the
basis of such units without making any payment, and thereafter he sells all
or any of such units while continuing to hold all or any of the additional
units within a period of nine months after such date, then, the loss, if any,
arising to him on account of such purchase and sale of units shall be ignored
for the purpose of computing his income chargeable to tax and the amount
of loss so ignored shall be deemed to be the cost of purchase or acquisition
of such additional units as are held by him on the date of such transfer of
sale. 26. A tonnage tax scheme for taxation of shipping profits has been
introduced. It is a scheme of presumptive taxation whereby a notional income
ariSing from the operation of a ship is determined based on the tonnage of
a ship. The notional income is taxed at the normal corporate rate applicable
for the year. A company may opt for the scheme and such option is exercised.
There is a lock-in period of 10 years. Section 33AC relating to 100 per cent
deduction of profits derived from the business of operation of ships has been
withdrawn. 27. Section 115-R has been amended to levy distribution tax @
20 per cent on the income distributed to any person, other than an individual
or HUF, by a fund other than an open-ended equity fund. It has also been
prOvided that no tax shall be levied in respect of income distributed to a

324

India 2005

unit holder of optn-ended equity oriented funds or distributed by the

Administr,ltor of tht specified undertaking to its unit holders. 28. Certain
sums like intl'rest, commission or brokerage, fees for professional or technical
scrvi('es, etc., paid to residents, will not be allowed as deduction in case tax
has not been deducted at source or after deduction has not been paid within
thl' prescribed time or belatedly in the previous year to the account of the
Central Government. It has, however, been provided that where the tax has
been dl'ducted or paid in any subsl'quent year, the sum of payment shall
l1l' allowed as d deduction in computing the income of the previous year
in which the tax has been paid. 29. Section 194C relating to deduction ot
tax at source from payments made to contractors and sub-contractors has
been amended to provide that tax will be required to be deducted at source
where the amount credited or paid to a contractor or sub-contractor exceeds
Rs 20,000 in a single payment or Rs 50,000 in the aggregate during a financial
year. 30. A new section lY4LA has been inserted to provide for deduction
of tax at source from compensation paid on acquisition of immovable
propt'rty (other than agricultural land), at the rate of 10 per cent where the
amount of compensation exceeds Rs one lakh. 31. A new section 142A has
been inscrtpd, with retrospective eHect from 15 November 1972 empowering
th,,' Assessing to make a reference to the Valuation Officer for estimating the
investment in immovable/movable properties. The provisions of the new
section shall not apply in respect of an assessment made on or before the
30 September 2004 where such assessment has become final and conclusive
on or before that date, except in cases where reassessment is required to be
made in accordance with the provisions of section 153A. 32. Sections 153 and
153B have been amended to provide that the period commencing on the date
on which application has been filed to the Authority for Advance Rulings
and ending on the date on which the order rejecting the application or
pronouncing the advance ruling is received by the Commissioner shall be
excluded for computing the period of limitation under the said sections. 33.
Persons required to deduct tax at source and coilect tax at source will be
required to obtain a common tax deduction and tax collection account
number. 34. Amendments have been made in various provisions relating to
tax deduction at source and tax collection at source to enable dematerialisation
of TDS and TCS certificates in case of tax deduction or tax collection after
1 April 2005. 35. There shall a mandatory requirement of filing of IDS retum"
on computer media in case of companies as well as Government deductors.
36. It has been provided that the person responsible for collecting tax under
the provisions of Chapter XVIJ-BB of the Income-tax Act, other than in the
case of companies or the Central Government or a State Government, may,
at his option, deliver or cause to be delivered such return to the prescribed
income-tax authority in accordance with such scheme as may be specified
by the Board in this behalf, by notification in the Official Gazette, and subject
to such conditions as may be specified therein, on or before the prescribed
time after the end of each financial year, on a floppy, diskette, magnetic
cartridge, etc. CD-ROM or any other computer media and in the manner as

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325

may be specified in that scheme. However, the filing of TCS returns on

computer media under the said scheme has [wen made mandatory in cases
wht're tax is collected by a company or the Central Government or a State
Covernment. 37. It has been provided that the return of tax deducted and
tax collected at source can be filed with any other authority or agency which
may bt. prescribed. It has also been provided that the Board may, if it
nlllsidcrs necessary or expt.dient to do so, frame a schemt:' for the purpose
of filing of returns with such other authority or agency. It has also been
provided that an annual return of tax collected at source will be required
to lw furnished instead of the presmt system of filing half-yearly returns.
3H. The scope of tax collection at source has been expanded to provide for
collection of tax by every person who grants a lease or licence or enters into
il contract or otherwise transfers any right or intt.rest in any parking lot or
toll plaza or mine or quarry to another pt.rson, other than a public sector
company, for the use of such parking lot or toll plaza or mine or quarry
for the purpose of business. Tax will be required to be collected at the rate
of 2 per cent. 39. A new section 277A has been inserted so as to provide
that any person shall be punished with rigorous imprisonment for a term
not less than three months but which may extend to three years and with
fine for falsification of books or documents, etc., to induce or abet any other
persun to evade any tax, interest, or penalty chargeable or imposable under
the Act. It has been clarified in the Explanation to the said section that to
establish charge under this section it shall not be necessary to prove that
the second person has evaded any tax, penalty or interest chargeable or
imposable under the Act. 40. A new sub-section (3) has been inserted in
section 278B so as to provide that if an offence under the Act has been
committed by a person being a company, it shall be punished with fine and
any other person who was in charge and was responsible for the conduct
of business of the company, or any Director, Manager, Secretary or other
officer of the company, shall be liable for punishment of imprisonment and
fine, wherever so provided. Section 35HA of the Wealth-tax Act has also been
similarly amended. 41. With a view to gather information from Government
agencies and other authorities who are valuable sources of information,
section 285BA has been substituted by a new section so as to provide that
an assessee or certain Government agencies responsible for registering or
maintaining books of account or other documents containing a record of any
specified financial transaction, under any law for the time being in force,
shall furnish an annual information return in respect of such specified
financial transaction which is registered or recorded by him on or after the
1 April 2004. The specified financial transactions in respect of which the
annual information return is to be filed, along with the different monetary
values for these transactions in respect of different persons shall be
prescribed in the rules by the Central Board of Direct Taxes. 42. Chapter
VII of the Finance (No.2) Act, 2004 contains provisions relating to Securities
Transaction Tax, and shall take effect from the date as the Central Government
may, by notification in the Official Gazette appoint.

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India 2005

It has been provided that Securities Transaction Tax shall be levied on

equity shares and units of equity-oriented funds transacted on a recognised
stock exchange and also on sale of units of equity-oriented fund to such fund.

The Securities Transaction Tax is to be charged in respect of the

following transactions at the specified rates: (i) in respect of delivery-based
purchase of equity share or a unit of an equity oriented fund @ 0.075 per
cent on the buyer; (ii) in respect of delivery-based sale of equity share or
a unit of an equity oriented fund @ 0.075 per cent on the seller; (iii) in respect
of non-delivery based sale of equity share or a unit of an equity oriented
fund @ 0.015 per cent on tht' seller, (iv) in respect of derivatives being option
or future, traded through recognised stock exchange at the rate of 0.0] per
cent, (v) and on salt' of units to the equity-oriented fund @ 0.15 per cent.
Consequent upon the levy of Security Transactions Tax, the following
amendments have been made in the Income-tax Act: (i) A new clause (38)
has been inserted in section 10 of the Income-tax Act, 1961, so as to exempt
from tax the long-term capital gains arising out of transfer of an equity share
in a company, or unit of an equity oriented fund, where such transfer takes
place on or after the date on which Chapter VII of the Finance (No.2) Act,
2004 comes into force and such transaction is chargeable to Securities
Transaction Tax under the said Chapter. (ii) A new section] 11A has been
inserted so as to provide that short-term capital gains arising from such
transfer of equity shares of a company or units of equity-oriented mutual
fund shall be charged at the rate of 10 per cent where such transfer takes
place on or after the date on which Chapter VII of the Finance (No.2) Act,
2004 comes into force and such transaction is chargeable to Securities
Transaction Tax under the said Chapter. (iii) A new section 88E has been
inserted so as to provide that where the total income of the assessee includes
any income chargeable under the head "Profits and gains of business or
profession" arising from taxable securities transaction, he shall be allowed
a deduction of an amount equal to the securities transaction tax paid by him
in respect of taxable securities transactions entered into in the course of this
business, from the amount of income-tax on such income arising from such
transactions.
COMBATING TAX EVASION
The Income Tax Department is taking necessary legislative and administrative
steps from time to time to curb / control black money and is also striving to
check tax evasion and accumulation of unaccounted wealth. In pursuance
of this objective, systematic search and seizure operations, verification of
information by Central Information Branches in a planned manner, and
scrutiny of selected cases, are undertaken. Persons found to be indulging in
tax evasion are dealt with severely, by imposing penalties and by launching
prosecution proceedings against them. Results achieved on searches and
statistics for prosecution launched since 1999-2000 are as under:

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327
RESULT OF SEARCHES
(Rs ill crore)

No. of Warrants

Value of assets seized

1999-2000

5,674

412.85

2000-2001

5,321

51Z.36

2()()]ZOtJZ

4,358

344.34

2()022D03

4,902

515.!!7

20032004'

2,346

213.35

Yt'dC

STATISTICS FOR PROSECUTION

No. of
Prosecu tion
launched

No. of
Prosecution
decided

1999-2000

343

1607

14

128

146

2000-2001

235

718

ZO

279

419

2001-2002

38

212

I'll}

2002-2003

102

433

18

11

404

2003-2004'

37

US

12

55

48

Year

No. of
Prosecution
convicted

No. of
Prosecution
compounded

No. of
Prosecution
acquitted

Provisional.

INDIRECT TAXES
Customs and Union Excise are two major sources of indirect taxes. The
revenue from Customs was Rs 44,912 crore during 2002-03 and Rs 48,613(Prov.)
during 2003-04. The revenue from Union excise (excluding cesses administered
by other departments) was Rs 82,644 crore during 2002-03 and Rs 90,907 crore
during 2003-04(Prov.)
CUSTOMS
MAJOR CHANGES INTRODUCED IN THE BUDGET 2004-05 ON
CUSTOMS TARIFF

(A) Ch4nges "",de in 2004, prior to Budget 2004: As part of continuous

process of rate rationalisation, reduction of peak rate of customs duties and
bringing about a rational and simplified tax structure, the peak rate of
customs duty was reduced from 25 per cent to 20 per cent w.e.f. 09 January
2004. Special Additional Outy(SAD) was also abolished w.e.f. 09 January

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India 2005

2004. With these changes, the three major ad volorem rates are 5 per cent,
15 per cent and 20 per cent.
(B) 1. Changes made in Budget 2004: In order to finance the commitment
to provide free and compulsory education and to provide nutritious midday meal to children, a new levy called the 'Education Cess' has been
imposed in Budget 2004 on items i.mported into India. It is leviable @ 2 per
cent on the aggregate of duties of customs (except safeguard duty under
section 8B and BC, countervailing duty under section 9 and anti-dumping
duty under section YA of the Customs Tariff Act) leviable on such goods.
Items attracting customs duty at bound rates under international commitments
have been exempted from this cess.
(B) 2. Industrial inputs: Customs duty was reduced from 20 per cent to
15 per cent on (a) metals such as Ferro alloys, Stainless steel and other alloy
steel, excluding seconds and defectives, Copper, Lead, Zinc, Tungsten,
Magnesium, Cobalt, Cadmium, Titanium and other base metals of chapter
81. (b) on the minerals Graphite, Asbestos, Mica, Fluorspar and Felspar,
Gypsum and other minerals of chapter 25 excluding a few items like marble,
granite. (c) on Refractories, Raw materials for refractories. (d) on Zinc
spelter / dross and Copper mill scale. (e) on catalysts of heading 3815.
Customs duty was also reduced from 15 per cent to 10 per cent on all
primary, semi-fjnished and finished forms of iron and steel like ingots and
billets, sponge iron, hot-rolled and cold-rolled bars / rods / foils of non-alloy
steel (other than seconds and defectives) of heading 7201 and 7203 to 7217.
(B) 3. Agriculture Sector: The tariff rates of customs duty on starches (other
than wheat and potato starch) was increased from 30 per cent to 50 per cent.
Similarly the tariff rate of customs duty on modified starches has been
increased from 30 per cent to 50 per cent. The effective rates remain
unchanged. Customs duty on palm oils (other than crude palm oil) has been
increased from 70 per cent to 75 per cent. Concessional rate of 5 per cent
customs duty + Nil CVD, presently available to specified plantation machinery
has been extended to additional machinery items, namely, coffee packaging
machine, coffee bagging machine, roary shifter, laterial cyclon winnower and
dividing bypass. CVD has now been exempted by way of excise duty
exemption. These exemptions would be available up to 30 April 2005.
(B) 4. Health Sector : Rehabilitation aids such as talking books, talking
calculators, talking thermometers, Braille computer terminals have been
exempted from customs duty. CVD on these items was exempted by way
of excise duty exemption. Phonographs and cassette players for playing the
talking books, magnetic tapes and cassettes for production of tall-jng books,
electronic reading machines, television enlargers and optical aids were also
fully exempted from customs duty and CVD, if imported by an institution
for the blind and deaf. Customs duty was exempted on instruments and
implants for physically handicapped patients, joint replacement, spinal
instruments and implants induding bone cements, crutches, wheel chairs,
walking frames, tricycles, Braillers, etc.

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(B) 5. Information Technology : Customs duty exemption to mobile

switching centres that was earlier available to cellular mobile telephone
service providers was extended to imports by universal access service
rroviders. Specified raw materials for manufacture of parts of cathode ray
tubes and speCified capital goods for manufacture of mobile telephone
handsets, cathode ray tubes and parts thereof and plasma display panels
were f>xempted from customs duty. Customs duty exemption earlier available
to specified goods for manufacture of telecom grade optical fibres and cables
was extended to some additional specified items.
(B) 6. Export Promotion: Customs duty on platinum was reduced from
Rs 550 per 10 gram to Rs 200 per 10 gram. All rough coloured gem stones
iincluding rubies, emerald and sapphire) were fully exempted from customs
duty. Concessional rate of customes duty of 5 per cent earlier available to
specified items for use in leather industry was also extended to such items
designed for use in non-leather footwear industry. TheSE' items would be
subjectt'd to CVD. Customs duty on roundabouts, swings, shooting galleries
and other fairground amusements of heading 9508 was reduced from 20 per
em! to 10 per cent. Customs duty has been exempted on patent leather.

(B) 7. Textile Sector: Customs duty on specified textile and garment making
machinery was reduced from 20 per cent to 5 per cent. These items would
he subjected to CVD. Parts imported for manufacture of such machines
would also attract 5 per cent customs duty subject to end-use condition.
Customs duty on specified machinery for silk textile industry was reduced
from 10 per cent to 5 per cent. These items would be subjected to CVD.
(B) 8. Edible Products : Customs duty on imports of non-edible grade
vegetable oils used for manufacture of industrial fatty acids and fatty alcohol
hdS been reduced to 20 per cent, on actual user basis.
CENTRAL EXCISE
MAJOR CHANGES INTRODUCED IN THE BUDGET 2004-05 ON
CENTRAL EXCISE TARIFF
General rate structure : To achieve major simplification in the rate
,tructurt:' and to reduce disputes and litigation, excise duty rate structure was
rationalised to a single rate 16 per cent CENV AT (with few exceptions)
during 2003-04 and 2(104-05 Similarly, 8 per cent, a single rate of special
excise duty (SED) intlOduced during 2003-04 is continued in 2004-05. The
ddditional levies called National Calamity Contingent Duty (NC duty)
imposed in 2001-02 and 'Surcharge on MS' introduced in 2002-03 are also
mntinued in 2004-05. The other major changes made in central excise duties
arl' as under.
(1\)

CHANGES MADE IN BUDGET 2004

(8) 1. Education Cess : A new levy 'Education Cess' was imposed on
l'xcisable goods manufactured in India to give the boost in education sector.

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India 2005

It is leviable @ 2 per cent on the aggregate duties of excise leviable on such

goods. The credit of cess paid on inputs and capital goods is available as
credit for payment of cess on the final products, <1S per the provisions of
Cenvat Credit Rules, 2002.
(8) 2. Resource Mobilisation Measures : Excise duty of 8 per cent was
imposed on Contact lenses and Playing cards. However, General 55!
exemption is available to these items. Besides, Excise duty was increased
from 8 per cent to 16 per cent on Cakes and pastries, Plastic insulated ware,
Vacuum flasks, Scented supari, Pre-fabricated buildings, Laboratory glassware,
Clocks and watches of R5P not exceeding Rs 500 per piece, Monochrome
television receivers, Populated printed circuit boards of monochrome television
receivers, Imitation jewellery and candles. However, general 55! exemption
would be available to all these items. Excise duty on matches made in semimechanised and mechanised sectors, has been changed from 8 per cent
without Cenvat credit, to 16 per cent with credit. Also, Excise duty has been
raised on iron and steel of chapter 72 from 8 per cent to 12 per cent. Excist'
duty of 16 per cent has been imposed on (1) Specified parts of pre-fabricated
buildings such as blocks, slabs, concrete beams and stairs; and (2) Parts of
clocks and watches of RSP not exceeding Rs 500 per piece. However, general
SST exemption would be available to all these items.
(8) 3. Relief Measures: Some Relief Measures have been given to excise
duty payers. These are: (1) RSP limit for excise duty exemption on footwear
has bl.'Cn raised from Rs 125 to Rs 250 per pair. The exemption is now be
available only if RSP is indelibly marked or embossed on the footwear itself.
Excise duty was reduced from 16 per cent to 8 per cent on gas stoves of
RSP not exceeding Rs 2,000 per unit. The value limit for excise duty
exemption on pens and refills of ball point pens was raised from Rs 100 to
Rs 200 per piece. Parts of pens and parts of refills of ball point pens were
exempted from excise duty. Computers were exempted from excise duty.
Stand alone Central Processing Units (CPUs) will also be eligible for the
exemption. Parts captively consumed in the factory of the manufacture of
computers were also exempted from excise duty. Excise duty on nonalcoholic beverages, such as chocolates and malted food drinks, falling under
chapter 18 or 19, prepared and dispensed through vending machines, were
exempted.

(B) 4. Agriculture: Tractors of heading 87.01 and parts captively consumed

in the factory of the manufacture of tractors were exempted from excise duty.
Milking machines and dairy machinery of heading 84.34 were exempted from
excise duty. Excise duty on branded and packed preparations of meat, fish
and poultry was reduced from 16 per cent to 8 per cent. Excise duty on food
grade hexane was reduced from 32 per cent to 16 per cent. Hand tools of
heading 82.01 were exempted from excise duty. Specified plantation
machineries were exempted from excise duty. This exemption will be
available up to 30 April 2005.

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331

(8) 5. Textile Sector: The Cenvat Scheme was made optional in case of
most of the textile items. The mandatory excise duty is now limited only
on man-made fibres and filament yarns (including textured yarns). Manmade staple fibres, i.e., tows and staple fibres and wastes thereof would
continue to attract duty of 16 per cent. Polyester filament yarns, including
polyester textured yarns would attract total excise duty of 24 per cent. Excise
duty on other synthetic and artificial filament yarns was increased to 16 per
cent. All other textile goods e.g., spun yarns, grey or processed fabrics,
garments, made-ups and textile articles, of chapters 50 to 63, were exempted
from excise duty provided no credit under the Cenvat Credit Rules, 2002
is taken. The exemption is optional. For those opting to pay duty, the rates
of excise duty will be 4 per cent for all textile goods made of pure cottonnot containing any other textile material and 8 ~r cent for other textile goods.
Those opting to pay duty will be eligible to avail Cenvat credit. Textiles and
textile articles, presently attracting 'Nil" tariff rate, would continue to do so,
except for silk yam yarn spun from silk waste, woven fabrics of silk and
silk waste (of heading Nos.50.D4 and 50.05). For these items an optional duty
of Nil (without Cenvat credit) or 8 pt'r cent (with Cenvat credit) has been
prescribed. The tariff rates for these items are being suitably amended. All
textile and textile articles falling under chapter 50 to 63 were fully exempted
from duties under Additional Excise Duty (Goods of Special Importance) Act
and Additional Excise Duty (Textiles and Textiles Articles) Act, wherever
applicable. Manufacture of polyester filament yarns or job work was
excluded from the purview of notification No.214/8b-Central Excise.
(8) 6. Health Sector : Existing concessional rate of excise duty of 16 per
cent to ambulances for Government run hospitals was extended to all
ambulances. Rehabilitation aids such as talking books, talking calculators,
talking thermometers, Braille writers, Braille computer terminals were
exempted from excise duty. Excise duty exemption available to diagnostic
kits used for detection of Hepatitis B was extended to diagnostic kits used
for detection of all types of Hepatitis.

7. Other changes: Newsprint in reels was exempted from excise duty.

Existing excise duty exemption for naphtha/natural gasoline liquid (NGL)
used for production of ammonia and synthesis gas, for use in manufacture
of heavy water, was extended to naphtha/.NGL used in production of steam
supplied to heavy water plants for manufacture of heavy water.
(8)

A sunset clause was introduced in case of area based exemptions for

Sikkim, Uttaranchal and Himachal Pradesh so as to provide that the
exemptions would be available only to those new units which are set up
or existing units which are substantially expanded and commence commercial
production on or before 31 March 2007.
Specific rates of excise duty on colour television receivers, prescribed
in case of RSP is not declared or is not correctly declared, were withdrawn.

Colour television receivers will now uniformly attract excise duty of 16 per
cent.

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India 2005

In the exemption scheme for specified units manufacturing tobacco

products (other than cigarettes and bid is) in the North East Region, the
condition for investing the excise duty amount per quarter within six months
from the end of the quarter was relaxed. The amount can now be deposited
in an escrow account with a condition that the amount would be invested
in the North East Region within two years of the deposit in the said escrow
account.
Retail Sale Price (RSP) based assessment was extended to monochrome
(black & white) television sets with an abatement of 35 per cent. Changes
in rates of abatement were made consl'quent to changes in excise duty rates
on gas stoves of RSP not exceeding Rs 2,000 per unit, scented slIpari, plastic
insulated ware and vacuum flask.
SERVICE TAX

The rate of service tax has been raisl'd from 8 per cent to 10 per cent. Credit
of service tax and excise duty has been extended across goods and services.
These changt's would come into effect upon enactment of the Finance (No.2)
Act, 2004. Other major changt's are as follows:
A new kvy 'Education Cess' has been levied on services subjected to
service tax. It shall be chargeable @ 2 per cent of the service tax amount
and would come into effect upon enactment of the Finance (No.2) Act, 2004.
The cess paid on inputs services shall be available as credit for payment of
cess on output services.
Thirtel'n fll'W S('rvices wen' added to the existing list of taxable services.
These are: Business exhibition sl'rvices, Airport services, Transport of goods
by road, Transport of goods by air, Survey and exploration of minerals,
Opinion poll services, Intellectual property services other than copyrights,
Forward contract service, Pandal or Shamiana service, Outdoor catering, TV
or radio programml' production, Construction services in respect of commercial
or industrial buildings or civil structures and Travel agents (other than air,
rail travl'l agl'nts).
Besides, tlw SCOpt' of existing services are being expanded. Commission
and installation of plant, machinery or equipment is proposed to include
'erection' thereof, and Stock brokers to include sub-brokers. Cable operator
servicl' is proposl'd to include 'Multi-System Operators (MSO). Business
auxiliary service is proposed tll include service relating to procurement of
inputs, production 01 goods or provision of services on behalf of clients.
Financial servin's an' I.wing expanded and tour operator services are
proposl'd to includl' such package tour operators who organise tours
involving any mode of hal1Sport.
Exemptions h",v(' lWt'n rc'movl'd rplating to tax payable on services of
S",fl' deposit lockers imd vilults, M<lintenance or repair of computers under
.1 fI1,lintl'l1.ll1C\, Mandap Kl'l-'per services provided by Hotels, Commission
agt'llb und('r BlI~irll'ss auxiliary Sl'rvice (other than those dealing in agriculture

Finance

333

produce), Broadcasting service provided by Cable Operators and l1onpackage tour.

CENTRAL SALES TAX
In order to ensure that there is a smooth resolution of disputes betwt'('n
various State Governments on matters relating to sale of goods in thl' ("OursI.'
of inter-state trade or commerce certain amendments have bl'en proposed
In chapter VI of the CST Act.
Units situated in Special Economic Zones (SEZs) have bl'en exempted
from payment of central sales tax for setting up, operation and maintenanc('

of such units. The benefit of exemption from payment of central sales tax
l~ also being extended to developers of SEZs for the purpose of dl'vdopml'nt,

opl'ration and maintenance of SEZs.

ANTI-SMUGGLING DRIVE
Smuggling has been as old as international trade due to tariff and non-tariff
barriers. Till about a decade ago high tanff and non-tariff barriers on most
commodities encouraged smuggling into India of various itt'ms favouftd by
consumers in the country.
As a result of various measures taken by the Government induding
,,!lowing legal import of gold on payment of concessi on aI rate of duty,
smuggling of gold has come down. Reduction in profit margin due to sharp
increase in international price of gold during 2003-04 has kd to further
redu(tion in smuggling of gold. Silver also seems to have lost its sheen.
Smuggling in of silk yam I fabrics, diamonds, compuler parIs, electronic
goods like mobile-phones and its accessories, cameras, VCDs, AC compressors
and variety of consumer items like perfumes, etc., continued during the ycar
under report. Smuggling of foreign currency out of thp country also
continued mainly through baggage mode.
Trafficking in narcotic drugs and precursor chemicals, however, continm.s
to be an area of major concern. Apart from heroin, hashish and ganja, spurt

in trafficking of Tidigesic Injection/Buprenorphine Injection has also bel'n

noticed of late. Smuggling of arms, ammunition and explosives from across
till' Indo-Pak and even the North-east borders at the behest of anti-national
<lnd subversive forces is another area requiring utmost vigil of Iht> intelligence
agt'ncies. There is a need to remain alert to smuggling and circulation of Fake
lndian Currency Notes (FICN) in the country
With removal of non-tariff barriers and reduction in customs duty on
most commodities the customs duty evasion is being mostly resorted to by
way of mis-declaring of goods, both in respect of quality and quantity, underinVoicing and diversion of goods imported under various schemts like DEEC,
EPee, DEPB and EOUs/SEZ in the open market. As more and more goods
are being subjected to anti-dumping duty, mis-declaration of country of
origin in respect of such goods is also being noticed. On the export sid(',

India 2005

334

abuse of drawback scheme continued by way of over-valuation of export

goods in order to fraudulently claim higher export incentives under Drawback/
DEPB schemes. Illegal diversion of duty-free imported goods and bogus
exports and export of sub-standard goods manufactured out of indigenously
procured materials in order to fulfill export obligations has come to notice
under export promotion schemes such as DEEC, 100 per cent EOU,SEZ.
During the year, Directorate of Revenue Intelligence in India has seized
259.245 Metric Tonnes of Red Sanders wood worth Rs 10.63 crore (USD 2.3&
millions). In most of the cases, th~ cargo was destined for Singapore
misdeclared as beauty cream, tea waste, sal wood, etc.
Details of goods seized and customs duty evasion detected by the fidd
formations of the Customs Department including DRI during the last 3 years
are as follows:
(Value Rs in Crore)
Y...u

Customs Duty

Seizure Value

Evasion Cases

20()1-2U02

602.61

1055.37

2002-2003

468.53

809.14

2003-2004

611.56

1093.05

Details of persons arrested, prosecuted, convicted under the Customs Act

and detained under COFEPOSA Act and PITNDPS Act during the last thret
years are as follows :
Year

Action taken against persons

under the Customs Act, 1%2

Arrested

Action taken against

persons under
COFFP()SA Act

Prosecuted

Convicted

Persons detained

Action taken
against persons
under PITNOr'S
Act
Persons detaineu

2001

580

204

192

53

46

2002

487

133

78

48

68

2()02

433

12.'5

66

38

34

IMPLEMENTATION OF VAT
At the meeting of the Empowered Committee of State Finance Ministers held
on 18 Ju~ 2004, it was resolved to introduce VAT at the State level from
1 April-2005. VAT being a State subject, the Central Government has been
acting as a facilitator for its successful launching and implementation. In this
role it was felt desirable that, wherever necessary, the Central Government
should step in to provide technical expertise, resources and training so that
VAT can be successfully introduced on the scheduled date. Accordingly a

I inance

335

1 pchnical Expert Committee that will work closely with State Governments
for smooth implementation of VAT w.eJ. ~ril 2005 has since been set up
with following terms of references: (i) Steps to ensure that VAT is revenue

enhancing. (ii) Principles and levels of compensation to be paid to states for

revenue loss, if any, because of the implementation of VAT. (iii) Strategy
required for education, training and publicity for implementation of VAT.
(iv) Transitional issues which will emerge in the context of switchover to
V AT (administrative and legal issues). (v) Modalities of phasing out Central
Sales Tax.
In addition, the Committee could take up any other issue referred to
the Ministry of Finance or the Empowered Committee of State Finance
Minister through the Ministry of Finance. The Committee has initially bt.'Cn
arrointed up to 30 June 2005 and its period could be further extended
thereafter on the basis of the requirements of the State Governments.
1\ by

OPIUM CULTIVATION
India is one of the licit producers and exporters of gum opium in the world
market. Cultivation of opium poppy through licences issued by the Central
Bureau of Narcotics and export of opium are under the exclusive control of
the Central Government. Ouring the Crop year 2003-2004, an area of 18,590
h('ctart' was harvested for opium poppy cultivation by 98,555 cultivators and
tQ5 metric tonnes of opium at 90 degree consistency (1,06] tonnes of opium
at 70 degree consistency) was procured. The average yield of opium on a1lIndia basis is about 57.07 kg/hectare (at 70 degree consistency). The final
production/yield of opium is ascertainable only on receipt of the results of
tt's! analysis of opium from the Government Opium and Alkaloid Factories
(GOAF) at Neemuch and Ghazipur.
The Central Bureau of Narcotics (CBN) is headed by the Narcotics
Commissioner who supervises the licenced cultivation of opium in the three
States of M,!'dhya Pradesh, gajasthan and Uttar Pradesh. The CBN has
initiated a study to detect cultivation of opium poppy through Remote
Satl'llite. The Officers of Central Bureau of Narcotics were imparted a twowl'Ck training at the Indian Institute of Remote Sensing, Dehradun to prepare
dnd analyse the satellite imagery and data in respect of licit opium
cultivation. The necessary equipments such a!? advanced computers, printers,
scanners, GPS, etc., is also being procured to make appropriate and full use
of satellite and remote sensing techniques for detection of illicit opium poppy
cultivation.

Government Opium and Alkaloid Works : The Government Opium and

Alkaloid Works (GOAW), Neemuch and Ghazipur both departmental
undertakings under the Ministry of Finance, Department of Revenue, are
engaged in the processing of raw opium for export purposes and manufacture
of opiate alkaloids.
The Organisation is headed by the Chief Controller of Factories (CCF).

336

India 2005

There are two units under each of Government Opium and Alkaloid Works
at Neemuch and Ghazipur, viz., Government Opium and Alkaloid Works,
Ghazipur (Uttar Pradesh) and GOAW, Neemuch (Madhya Pradesh). Each
of these units haw an Opium Factory as well as an Alkaloid Plant. The
Opium Factories are mainly concerned with the receipt of opium from the
field, its storage and custody, drying and sacking for export. The Alkaloid
Plants are engaged in the processing of raw opium into alkaloids of
phamlaceutical grades to cater to the domestic demand of the pharmaceutical
industrv. The manufacture and sale of opium and its alkaloids in India is
presenti y under the sole control of the Central Government through the
COAF.
During the FY. 2003-2004 (up to 3] March 2004) 568 MT opium (from
the crop year 2002-03) was received at 90 degree consistency, 556 MT opium
dried and 4tH MT opium exported.
DIRECTORATE OF ENFORCEMENT
The Directorate of Enforceml'nt is mainly concerned with the enforcement
of the Foreign Exchange Management Act (FEMA), 1999 to prevent leakage
of foreign l~xchange. The Directorate is also responsible for adjudication of
cases and follow-up of complaints registered undt'r the erstwhile Foreign
Exchange Regulation Act (FERA), 1973.
The Directorate collects intelligence from different sources, and
investigates and adjudicates the cases under FEMA. During the year 20032004, the Directorate conducted 173 searches in which it seized Rs 464.23
lakh in Indian currency and foreign currencies equivalent to Rs 39.02 lakh.
The Directorate recovered penalties of Rs 584.98 lakh under FERA and
Rs 71.94 lakh under FEMA during 2003-04. Besides, tht' Directorate confiscated
Rs 4H7.43 lakh of Indian currency as well as foreign currency equivalent to
Rs 423.37 lakh under FERA and Rs 85.05 lakh of Indian currency as well
as foreign currencil's equivalent to Rs 63.83 lakh under FEMA during the
year. The Directorate adjudicated 678] FERA cases and .~4R FEMA cases
during the year.
FORFEITURE OF ILLEGALLY ACQUIRED PROPERTY

The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property)

Act, 1976 [SAFEM(FOP)A], provides for forfeiture of illegally acquired
property of the persons convicted under the Sea Customs Act, 1878, the
Customs Act, 1962 and the Foreign Exchange Regulation Act, 1973 and the
persons detained under the Conservation of Foreign Exchange and Prevention
of Smuggling Activities Act, 1974. The Narcotics Drugs and Psychotropic
Substances Act, 1985 [NDPS Act] provides for tracing, freezing, seizure and
forfeiture of illegally acquired property of persons convicted under this Act
or any corresponding law of any foreign country and those who are detained
under the Prevention of lllidt Traffic in Narcotic Drugs and Psychotropic
Substances Act, 1988 and Jammu & Kashmir Prevention of Illicit Traffic in
Narcotic Drugs and Psychotropic Substances Act, 1988.

Finance

337

SAFEM(FOP)A and NDPS Acts provide for appointment of Competent

Authorities for carrying out forfeiture of illegally acquired properties. At
present, the Offices of Competent Authorities are located at Kolkata, Chennai,
Delhi, Lucknow and Mumbai. Ouring the year 2003-2004 (up to March 2(04),
Ihp Competent Authorities have forfeited property worth Rs 9.77 crore in
25 cases.

CORPORATE SECTOR
In order to provide an appropriate frame work available for functioning of
the corporate SE.>ctor keeping in view the imperatives of economic change and
dlvelopments nationally and internationally, the Ministry of Company
Affairs has taken a number of initiatives to strengthen the regulatory
framework for promoting the best governance practices and ensuring
investor protection. The Companies Act is proposed to be revamped to
providl' for a compact framework enabling evolution of new arrangements
10 address the imperatives of growing economy and the role of corporate
therein. To enable responsive and paperless filing of statutory corporate
documents, computerisation of the operations of the offices of the Registrars
of Companies would be carried out with a new electronic filing system. It
is expected to be made operational all over the country by the end of 2005.
The following changes/ amendments have been made to achieve the purpose.

Salient features of the 2002 Amendment Act: (a) National Company Law
Tribunal proposed replacing existing Company Law Board and repealing
Sick Industrial Companies Act, 1985; (b) Reporting of fall in net-worth above
50 pcr ccnt is made mandatory to the Tribunal with a view to devising
rehabilitation plan before the net worth is totally wiped of; (c) Liquidation
proceedings to be speeded up; (d) Winding up, mergers and amalgamation
of companies could be done by National Company Law Tribunal taking away
th(' powers of High Courts; and (e) Providing an opportunity to co-operative
institutions to transform themselves into producer companies.
INVESTOR EDUCATION AND PROTECTION FUND
Investor Education and Protection Fund is created comprising of contributions
from companies having unpaid dividends, mature deposits and debentures
and share application money lying with the companies : (a) NGOs are
registered with the Ministry of Company Affairs for undertaking investors
aWareness programme; (b) Investor Awareness Programme gathering
momentum and apart from NGOs, SEBI and Institute of Company Secretaries
of India also started the movement; (c) Fund has approval for setting up
of information data bank available free of cost to any investor.
NATIONAL FOUNDATION FOR CORPORATE GOVERNANCE
A National Foundation for Corporate Governance (NFCG) has been set up
on 1 October 2003 as a Trust in association with industry associations and
professional institutes. NFCG has a three-tier structure, I.e., Governing

338

India 2005

Council headed by Minister-in-charge of Company Affairs; Board of Trustee~

headed by the Secretary and an Executive Directorate.
The Foundation will provide a platform for deliberation of issues
relating to good corporate governance, sensitising corporate leaders,
developing a framework for corporate governance reforms, for research,
training, capacity building, advocacy, etc., in the field of corporate governance.
it will also develop strategies that would enable long-term benefits to the
shareholders and the society at large; develop a code of best practices for
corporate governance taking into consideration the international examples
and encourage its voluntary adoption by corporate bodies.
SERIOUS FRAUDS INVESTIGATION OFFICE
Serious Frauds Investigation Office is created to investigate cases of serious
nature involving large-scale mismanagement of funds by large groups of
shareholders.
The Committee on Regulation of Private Companies and Partnerships
has given their report on 31 July 2003 suggesting the following: (a)
Identifying 'Small private companies by virtue of its paid-up capital and free
reserves or turnover or aggregated annual receipts' - such class of companies
to be exempted from having to comply with various provisions to facilitate
compliance from the provisions of Companies Act at reduced cost and saving
on time. (b) Concept of limited liability partnership is developed. Initially
to be made available to those providing defined services like lawyers,
company secretaries, accountants, etc. (c) Incorporation and registration of
partnership firms mooted. (d) The concepts of small private companies and
limited liability partnership companies are suggested. (e) The Report put on
the website to elicit public opinion with a view to finally preparing proposals
for amending the Companies Act, etc.
COMPETITION ACT, 2002
India has responded to the current world-wide trend of globalisation by
opening up its economy, removing controls and resorting to liberalisation.
It was felt that the existing Monopolies and Restrictive Trade Practices Act,
1969 has become obsolete in certain respects and there is a need to shift focus
from curbing monopolies to promoting competition. Hence a new law, the
Competition Act has been enacted. It was published in the Gazette of India
on 14 January 2003 for bringing competition in the Indian market.
The Act mainly covers the following aspects: (i) Prohibition of anticompetitive agreements; (ii) Prohibition of abuse of dominance; (iii) Regulation
of combination (acquisitions, mergers and amalgamations of certain size); (iv)
Establishment of Competition Commission of India (CCI); and (v) Functions
and powers of ca.
The Act is expected to curb those practices, which would have adverse
effect on competition. The Act identifies three such ways in which such

Finance

339

practices could occur. These are (i) Anti-competitive agreements (Horizontal

Agreements, Vertical Agreements). (ii) Abuse of dominant position-Enjoying
a dominant position will not be a crime but its abuse will be a crime. (iii)
Elimination/ reduction of competitors in market achieved through acquisitions,
amalgamations or mergers. The Law is not against every acquisition, merger
or amalgamation but it refers only to those acquisition, mergers and
amalgamations which are of a certain pres<"Tibed size, i.e., size in terms of
assets or turnover.
The Law provides for an adjudicating relief machinery by way of
establishing the CCI. CCI will have a Chairperson and not less than two and
not more than ten other Members. In addition to the adjudication function,
the CCI will have the roles of advocacy, investigation, prosecution and
merger control. The law provides for a competition fund which shall be
utilised, inter alia, for promotion of competition advocacy, creating awareness
ahout competition issues and training in accordance with the rules that may
be prescribed. The Monopolies and Restrictive Trade Practices Act is to be
TPpealed.

THE COMPANIES (AMENDMENT) BILL, 2003

Subsequent to the amendments to the Companies Act, 1956 brought about
during the period 1999-2002 and to enable a comprehensive review of the
Companies Act, 1956, the Companies (Amendment) Bill, 2003 was introduced
in the Rajya Sabha on 7 May 2003. Thereafter, in order to enable the changes
in the institutional structure for implementation of the Companies Act, 1956
ushered in through the amendments viz., the Companies (Second Amendment)
Act, 2002 and the Competition Act, 2002 to be fully reflected in the
Companies Act, it was decided to take a further comprehensive review of
thE:' legislation along with broad based consultations with concerned stake
holders.

STATISTICAL REVIEW OF CORPORATE SECTOR

COMPANIES AT WORK
There were 6,12,155 Companies limited by shares at work in the country as
on 31 March 2003 which comprised 6,10,872 non-Government Companies
and 1,283 Government Companies. Out of 6,12,155 companies, 76,523 were
public limited companies and 5,35,632 were private limited companies. As
against this, as on 31 March 2004, the number of companies lintited by shares
increased to 6,41,512 which comprised 6,40,203 non-Government companies
and 1,309 Government companies. Out of 6,41,512 companies, 77,380 were
public lintited companies and 5,64,132 were private limited companies.

NEW REGISTRATIONS

During the year 2002-2003, 24,051 companies limited by shares with authorised .
capital of Rs 5,602.76 crore were registered under the Companies Act, 1956.
Of these, 22 were Government Companies with authorised capital of

340

India 2005

Rs 858.44 crore and 24,029 were non-Government Companies with authorised

capital of Rs 4,744.32 crore .Besides these 108 companies with liability limited
by guarantee and associations not for profit and 1~ companies with unlimited
liability were also registered.
As against this, 30,076 companies limited by shares with authorised
capital of Rs 17,143.5 crore were registered during 2003-2004. Of these, 26
were Government Companies with authorised capital of Rs 9,058.6 crore and
30,050 were non-Government companies with authorised capital of Rs 8,084.9
crore. In addition, 136 companies with liability limited by guarantee and
associations not for profit and six companies with unlimited liability were
also registered.
The Government Companies registered during 2002-2003 comprised 19
public limited companies and three private limited companies with authorised
capital of Rs 333.44 and Rs 525 crore respectively. While, the Government
companies registered during 2003-2004 comprised 25 public limited companies
and one private limited company with authorised capital of Rs 9,053.6 crore
and Rs five crore respectively.
The non-Government companies limited by shares registered during
2002-2003 comprised 1,046 public limited companies and 22,983 private
limited companies with authorised capital of Rs 2,007.10 crore and 2,737.22
crore respectively. During 2003-2004, the non-Government companies limited
by shares comprised 1,208 public limited company and 28,842 private limited
companies with authorised capital of Rs 2,024.3 and Rs 6,060.6 crore
respectively.
LIQUIDATION

During the year 2002-2003, 951 companies limited by shares were reported
to have gone into liquidation or to have been struck off under Section 560
(5) of the Companies Act, 1956. While in 2003-2004 498 companies were
liquidated I stuckoff. All these were non-Government companies in both tht
years.
FOREIGN COMPANIES

There were 1,497 foreign companies as defined under Section 591 of the
Companies Act, 1956 in the country as on 31 March 2003. One hundred ftfty
seven foreign companies established their place of business in India during
the period April 2003 to March 2004. Thus there were 1,654 the total number
of foreign companies at work as on 31 March 2004.

Food and Civil Supplies

14

THE Department of Food and Public Distribution is responsible for the

m.1I1agemenf of. the food economy of the nation. It undertakes various
activities, such as, their- storag!:....movement and ~elivery to-the distributing
agencie? A dose watch is kept on production and ef{orts are made to ensure
their adt'quatl' availability at reasonable prices in different parts of the country.

FOOD PRODUCTION
The production of food grains from 1994-95 to 2003-04 is given in table 14.1.
TABLE 14.1 : PRODUCTION OF FOODGRAINS
(in lakh lonnes)

lmr

1994-95

19'15-%

1'1%-97

19979R

1991>-9'1

Rill'

818.1

769.11

817.3

825.4

8oo.R

8%.R

Wheat

657.7

621.0

693.5

6635

712.9

Cuars!'

298.8

290.3

341.1

304.0

Pul""

140.4

123.1

142.5

inial

1,915.0

1,804.2

1,994.4

. ;\" r er

advance estimates on 3 June 2004.

1'1'142000 2tMX1Ol

2001-{)2

2002-{)3

2003-04"

M9.8

933.4

n6.6

863.5

7h.17

6%R

727.7

651.0

727.4

313.3

~OH

110$

333.7

252.9

36l!.0

129.7

149.1

134.1

110.7

133.7

111.4

1489

1,922.6

2,036.1

2,(l9RO

1,91i1!.1

2,128.5

1,741.9

2,107.11

( "'!'('als

PROCUREMENT OF FOODGRAINS

I'ro("ure~t

of food grains at suPPort prices cnsure~bility.J~!il!!!' p.r:ices.

~_~_,pu~ of ensunng ~urie.t:..~vepr!c~JOJhe.1armers and
(If hUilding ~:!=,lic st~, of foodgrains .. Table 14.2 gives an idea of the
quantum of procurement of main food crops, viz" rice and wheat sinCt'
It

S(:':,"'l'S

1'N'l-96 marketing season.

India 2005

342

TABLE 14.2: PROCUREMENT OF FOODGRAINS

(in 1akh

\"

tonn('~)

19'J:'i.%

19%-'l7

1'!97-9I\

1'I9I\-9'J

1999-2lXXl

21IDOI

2001-(J2

2002-!l3

2003-04

Rice'

1()(),t)4

12Y,(,7

155.92

125.99

182.28

212.81

221.27

164.11

207.64'

Wheat'

123.27

81.57

92,98

12('.52

141.44

163.57

206.30

190.24

158.02 158,7:!

2IXJ4.zy;

-, Marketing Season : October-September '

, Marketing Season : April-March _
, A~ on 20 May 2004

BUFFER STOCKS
According to the current Buffer Stocking Policy of foodgrains, the totdl
minimum stock in the Centr,!l P_901 held by Public Agencies as on different
as under:
dates in a year- iinould be ------ -_...__----~------

(in lakh tonnes)

,.

Datf~

Wheat

Rice

Total

J April

40

111l

158

1 July

143

100

243

I October

116

65

181

IW

84

168

J January .

STOCK POSITION
\ ~s on 31 March 2004 dosing stock of foodgrains (whe~ in the
\S~ntral Pool with FCI and State Agencies stOOd at 2~kh tonnes (provisional).
DISTRIBUfION
The offtake of foodgrains (wheat ar:td rice), from the Central Pool by various
Stat.es7trrs~aI\(f~ot1!_ers Tor_oistribution through fair price' shops and for
WeIfareLEmploymentprogra~~s
~OO3-04 was 479.3 lakh tonnes as against
42s>.31~.!<h Jonnesjfunng.2002:0.l The total off-~~~~! f~~gr.~ (wheat and
rice) under Targeted Public Distribution System (TPOS) during 'April 2003 to
March ~QQi_was about 227.9-1 lakh~es comPrising 120.83 t~~<?LriC
and ] 07.08
tOJ1!les o! \\i'l!eat.
,,-

-m

IMPORT AND EXPORT

No import of f~graills ~ ,t~t!_ ~~ntral Pool had taken place during 2003year 2000::01, the Govemment-aeoaed
and
~eat trom~.C!?rifr~JJ~O(,)I fo_! ~~port in view ofth~1!_u_g~~s~rpJus and low
o.ff_!~~e. 5l!lcc the inception of export ~f f~gr~ 1~8.70_1~k.!t..~.o~__~h.cat

04.---Ffomthe financial

to offer ru:e,

I (xld and Civil Supplies

343

,1Ild 135.34 lakh MT (provisional) of rice had been lifted for export from the
Centrai Pool till March 2004.

FOOD FOR WORK PROGRAMME/SPECIAL COMPONENT OF

SAMPOORNA GRAMIN ROZGAR YOJANA

The Ministry of Rural Development launched the Food for Work Programme
(FFWP) in the rural 'areas-ot drought~affected States in January 2001 as part
of thl' Employment -Assurance Schelne- (EAS). The scheme -waS-extended to

areas affected by oilier nafurarcalamiBeSalso. The Scheme provides for

allocation of foOdgrains _(rice and wheat) f~_oDos!__ to ~tates/UTs as an
additional reSOurce. The scheme was discontinued from 31 March 2002.
However the p~~gramme is allowed to continue as a Spedal Componetir-of
Sunpooma Gramin Rozgar Yojana.
.
Allocation and offtake orfoocrgrains under the Scheme during 2002-03,
2003-04 and 2004-05 is as under:

(in lakh tonnes)

Offtake

Allocation
Yt'dr

Rice

Wheat

Total

Rice

21)02-0.1

37.02

26.38

63.40

200:;-04

43.05

22.79

2004-05

2.39

3.14

Wheal

10lal

31.89

1:l33

45.22

65.84

32.55

21.89

54.44

5.53'

1.58

0.46

2.04 2

Upto June 2004.

Uptll April 2004.

SAMPOORNA GRAMIN ROZGAR YOJANA

The Prime Minister in his Independence Day speech, on 15 August 2001
announced the introduction of a Universal Food for Work Prbgramme to ?t'
called Samjioor1Ul _(Eam"'f!i_~~#iar _YCJfon;:J~_ ~!_ t?~ .?tates/UTs for organising
various emplOyment g~~:,:ation progrart)me,s. Under the Scheme, . 50 l~kh
tonnes of--f@#ams amounting to R_ ?,D9!>.. p'q_re_(at_ec;on().!llic c~t) are
provided_every year; free-af'cOst, to the Stares/UTs. An .additional Rs 5,000
Gore is'utiliSecrt_()__~~ the caS!l_.~o_~rient_<!_fwages and matenarcoSt.A~
(i00 gOl!_ I_!\~.-diji of em_P!~!!'_t are en_visag_ed. 0t;e gene_J}'l~ ev~ry_.:.y~_ar
through the _ _ Under the scheme, fi.!.eAtofJ~S!ai~ is ensured __ ~
ma~-daY..m~l unemp~ral workers.
renwnmg p'aI1!..2f tile _~~ges
IS paid in casK
t.

.....

- ..

... ~.

Allocation! offtake of foodgrains under the scheme during 2002-03, 200304 and 2004-05 is as under:

India 2005

344

(in lakh tonnes)

Offtake

Allocation

Wheill

Tutal

211S

IIl.Il7

40.02

47.1t>

JO.lI4

20.K'

'il.77'

24.05'

J.:W

O.7l

2.11 '

Year

Rin'

Whl'dt

Total

RiC'l'

2002-0J

2!Hll

1:l.ljO

41'11

200J-04

:lO.sH

10.511

2004-05

15.1'1

H.Hh

, Offt<lke includes lifting ng.:litl't hackl('g (luuta.

Upto May 2004.
, Upt!) April Zm4.

MID-DAY MEAL SCHEME

Thl' Mid-Day Meal Scheme was launched by the Ministry llf HUJ1l~ ~~~n'
Dev!lorment (Deparh_ll~:,t of ~du'cati()n) from l~uSust 199~ forr~lfil
of s!~dents ~~~na!}' school~~~~yment Assu~ance ~ht.'me i~;\~)j
earl~-=-~~a_l!'F.E__rubli.c Distributio~_~vstpm_ _(I3.!'DS) blocksJ~Jfi~. The
Scheme covers students (Class_ .~~_'0 jn the _Govemmt:_n!_E!i_TTlary _Schools /
Primary Schools aided by Covernment and the Primary Schools run by loCal
bo(fJes~ Tfi;_;Schenll'-' was lilter on extended to -cover all low femaleTfteracy
b1(;Ck~' and all primary schools ,1t1d-3,O{10-1'~Jag_l_lr Palikiis.
----.. ---

. -'-- _--

---~-------

Foo~raiTl~- (when_! i.!l1Q riG:)

.1ft' ~l'Plied ~n'e.~ ~ost at t~e_E~t~ o~.!l0

gram per child pt'r schllol day where' cooked/ processed hot me~Ll_.~.iJ1g
ser:.e~ with minimum ~~)~~prltof 3Q{) calc)nes-a!i_d 8:-~~m oCrrotein each
day 01 school for a -mlni"rnum of 20ll days and three kg per student .r rr\onth
fll~. 1() mo,;ihs in a--_.v~~;r;-Wl1l'rl;-fl;'d~ins
arc istributl;J
in -----raw form .
......
_--

-~

'

--

-~,

--...:._.

------~-.

-,

(for quJck implcmcJlt.!ltil1_n_ ll~. the scheme, Dg>artment of Elementarv

Edu(illion dnd Literacy has been cluthor'ised to make State/UT-wise allocation
of !oodgrains, Fo{)_d _9~rpoE.1ti()_n of In~i~ JFCJL relt'ases foodgr~ns .tl~ _$ta1(.'s/
UT~ __il.L .u.rL tates ii,S pcr allocation made by- Dep-aiiment of Elementary
f

--

Educ~~i~n_

_ . __ .

~_.__

_ _ _ _ _ . ____ . __

___ --".,---"

a_!1d-..1itct:d.c,J"---

. - ..

-~_.,._~._

_ ____

_ _ _ _ _ _. _ ..

-- ------.

Allocation / ()fftake of foodgrilills under the scheme during 2002-03, 2001ll4 and 2004-05 is as under:
(in lakh
Allocation
Rice

Wheat

2002-03

1~.H4

2003-04
2004-()5

Year

, Upto

tonnt~s)

Offtake
Total

Ric..

Wheat

Total

lj.-l(l

2~.Z4

D.75

7.45

21.20

17.72

4.0H

26.HO

13.49

7.20

20.6'1

17.'lY

'I.n

27.12

OAB

0.38

0.86'

April 2004.

'ood and Civil Supplies

345

WHEAT-BASED NUTRITION PROGRAMME

Tht' Scheme is implemented by the Department of Women and Child
Devel~)p_I!l_:nt, Mit;!~!tJ'__o! ..!:iEman R~~__ l)g\f_eTQrmfnt. I'he foodgraiils
JlIlltted under this Scheme are utilISed by _!__~ .~tates/ UTs under lntegrafeo
Child Development Scheme (ICD~)..for providing n'utritiou~ .lIla energyfood
In children below SIX years-('lf agl' ana~~pecfali{-Tacliling- women~-The
Department of Fr)od and Public Distribl,ltiQn-iilkl(;afl'stl)l)ugrains, which is
\"ppl ,itThe disposar-z;rDepartinent (J Women andl:hild DevelOpment for
m,d,ing further State /UT-wisl' allocation. Foodgrains are supplied to States/
Vb at BPL rates under the Scheme.

Allocation / offtake of foodgrains under the scheme during 2002-03,

20()}-04 dnd 2004-05 is as under:
(in lakh tonnes)
Allocation

Offtake
'fiJtal

Whedt

l(.tdl

ONI

2. J3

2.H2

7.00

[J.bl

2.47

3.0f;

1).50

om

O.oJ

0.02'

Rice

Wheat

2(~Jc-(l~

1.50

3.50

5.00

200:l-114

2.00

5.0U

20()4(J5

1.50

5.00

'tear

Rio.'

, Upl" April 2004.

SCHEME FOR SCIST/OBC HOSTELSIWELFARE INSTITUTIONS

The Mini!>_tTy oj' Sosial ]lJS!ic_ _an~_ Empowerllli'...nl is 't11' nodal Ministry for
Implementation/monitoring of tne Scheme intr~.!!c:e~_ if! October 1994,__The __
residents of the hostels haying two-thir~ ~tlJ.dt>-!!_~b_t'longi~!? to these categorics
are .eligible m-g-eT15 -Kg foodgrai_n~ per resident rer m~:-'
..
-

.----.-~~-.~-~-.~---~.

--~-

----

Since 2Q02-03._States/UTs have been allocated foodgrains egual to fiye

peT cent of BPL allocation t(i meet theft requrremenrof foodgrains for the
inmates of above-menfioned-HOStets---amt-wetfiire lnstitutions, etc.
Allocation/ offtake of food grains under the scheme during 2002-03,
2003-04 and 2004-05 is as under:
(in lakh tonnes)
Offtake

Allocation
Ye~r

Total

1.30

0.14

1.44

13,07

3.15

0.23

3.38

0.92

0.G1

0.00

O.Q1'

Wheat

Total

2002~3

6.58

4.53

11.11

2003-()4

7.88

5.19

2(X)4.{)5 (for

0.51

0.41

3 months only)
I

Wheat

Rice

Upto April 201M.

Rice

India 2005

346

ANNAPURNA SCHEME
The Ministry of Rural Development launched the scheme in ~1. In,5!igent
senior cilizeils__~~_~L'!8~)~_<?~~hQ_th&h _el!s!bl~!__~l~:age
penston u~aer t~_:_!'IajjDnaLQkL~g~Rt?Il_S~~~heme (~~A~) ~~~~~~ not
get~!~flil_pCn~~o_~ ~ere_c<?:\.'e_re9-_ ~n~er the ~me. Ten I<~ of f~grains
per person re_f month is__stlppl_it.><;f free-of-cost under tne sc e~e.
From 2002-0~_it has bee~!t'ansf~~d to State Plan along with the
Nati_lmaI SociaJ-Assistanc~Tro_gramme com,prising t~::!~_ab5lnal Old Age
T'ehsion Scheme and the National Fami!Y_!Jenenr&neme. tne funds for the
transrern:;d~Zh~e are being ;e-W<iSedhyJneMinistry of Finance ';s- ~dditional
Central Assi~~t:!c~CA1 to the State Plan and the States have the requiSite
f1exlI!~iY_in- t~~~~ice of ben~_~~!~ies ~~~- implementation. of_!ne~Sdl~~e.
The iJl1_pI:l!leI!tatign of the Scheme af1l1e ground-level rests with the States/
UTh.
The f(){)dgrains are releasec!..Jo _the_J)!i:lte Gover_!1ments on the existing
nOIITlsat B~L_rates. Allocation/offtaIe of foodgrains under the scheme during
2002-03, 2003-04 and 2004-05 is as under:
(in lakh tonnes)
Year

Allocation of food grains

(Rice and Wheat)

2002-03

0.78

2003-04

1.23

2004-05

1.58

Offtake of foodgrains
(Rice and Wheat

1.09

) includes offtake against allotment for 2001-02

NUTRITIONAL PROGRAMME FOR ADOLESCENT GIRLS
In this pilot project lau~ched b~.the Planning Commission foodgrains are
provided to the families of the lae~ti~f!"d uj\t1ethburisl\ed -adolescent girls,
preg!lant and lactati_1}g mother.s at the rate ofih-kg of f~~~.J!r head,
per f!l()P.!h, in two of the ~~~kw~r4_sij~_tri5i~ in eaCh 0/ tli~ _ een major States
and most populous aistricts (excluding the capital district) in remaining
'.
- ~,-.
smaller States/UTs.- -.----

_..---..... ,,-:::::-:--

A quantity of 0.62 lakh MT of food grains was allocated to States/UTs

during 2002-03 under the Scheme. During 2003-04, annual allocation of 2.51
lakh MT of food grains (wheat and rice) was made under the scheme.

EMERGENCY FEEDING PROGRAMME

~_

The Emergency Feeding Programme is a food-based intervention targetegjor

old, infirm and destitute persons l?elongitlg1o-' Bpt households to provide
them fu;;d securitY ill their dis~d1tions. The SCheme is beillg implemented
onlyliit1le eig~t K~K _~s~cts, namely, B~, Kal~di, K2raet,

Food and Civil Supplies

347

Ma!!<ingiri, N~~~JH?_ur, Na,!!pada, Ra~ada and Sonep\l!J!f.Qt:.i~~_covering

two ~h_~nefi<j~~. Foodgrains (rice) at BPL rates is being allocate<rto
Or~~ s__ince May ~QIJ_!_ on the recommendatIOilOf nodal Ministry of SOcial
Justice and Empowerment under the Scheme.
Following quantity of rice has been allocated during 2002-03, 2003-04
and 2004-05 under the Scheme:
Year

Quantity

2002-03

14,400 MT (1,200 MT per month)

2003-04

14,400 MT (1,200 MT per month)

2004-05

14,400 MT (1,200 MT per month)

GRAIN BANK SCHEME

It is one of the welfare schemes of the Mi.!.tis!!y_~~ Iri_bal Affairs. Under the
scheme, a o~e time supply Qf food~rai!!!!. ~s pro':~~_t::~~!:_<:~ G~_~~_!!~. at

the rate of_QJ)e quintal per family. Normal~Grain Bank in a village stores
10 M:!'_oU~g_rain fro.~_which vi!!_a_g~~~~~c~borr~ iii:nmes--Ofc~Tarrll~ and
then re~J' after harvest oiattei-iecelvin_g wages. Allocation of foodgrainS was
made for the
firSt -time -durlng--i()()i-03 under-,_ the scheme. - - - _.".
~-

~.

The objective of the scheme is to provide safeguard against starvation

during the period of natural calamity or during the lean season when the
rural people do not have the purchasing power. The ta!S_eted ben~fi9aries
are people living below poverty line.
.
r.

._

The following quantity of foodgrains have so far been allocated under

the scheme for various States through the Ministry of Tribal Affairs:
Year

Allocation

2002-03

2,500 MT

2003-04

3,145 MT

TARGETED PUBLIC DISTRIBUTION SYS~M

:!~X

In ()rder to ensure availability of minimum quantity of foodgrains__ to_~_e

fa~iifes-I~below the 2QvetlJJhl~1 the ,GOvernment launched the TPDS
in June -1927. It was intended to benefit about six cro~_
families in -llie
country for ~om a quantum of 72 lakh tonnes oT f()()(Jgrains was earmarked
annually at the rate of 10 kg per famil~r ~fuQnth.

22r

__ -

10. .

The allocation was increased from

~g to 20 kg from 1 _~~?_~..:.
This was increased from 2~~~ per fam1JY per .~ontli ~om JuI_.}'. ~OOl.
From 1 ~P_r!!1Q[2, this allocation has been further ~c:re.a~ .. from 25 to ~
kg per ~~~month. The Centra] Issue Price (aP) for BPL fam.ili~_k

India 2005

348

Rs 4.15 peT kg for wheat and Rs 5.~_5 per kg for rice. This is a~t 45 per
cent ()f the economic cost of th", Food C()rporation of India. The increased
level ~)f allocation of foodgrains for 6.52 crore BPL families is 195.6 lakh tonnes
per annum. During 2002-03, 343.14 lakh tonnes of rice and 369.18 lakh tonnes
of wheat have been allotted under '[~pS_. (Anlyoda)'~, BPL and APL). A
tJuarltity of 119.65 lakh tont1l'S of rice and 105.63 lakh tonnes of wheat were
litted against this allocation.
ANTYODAYA ANNA YOJANA
The Covl'_!nment laundwd the Alltyodayll Allna 'iiljaflll (AAY) for t~t
of lhl' rOOf on 25 DecemLwr 20 )0. Under this scheme, 25 kg_ of_ fo()dgrain was
m5l.fl~- available to ('ill' 1 eiigibll' family at highly subsTdlSt.'d rates of Rs t~o
per kg for wheat and Rs three pl'r kg for rice. This quantity has been enhanced
from 25 kg to 35 .~ from ~lril 2(){)2. There are about one cro~ Antyodaya
families in the ~ountry.~Tllt:' iocntification -ofthesc"tamliies is carried out by
theStatl' G()vert1Ilwnt/UT Aominlstration- froril among the BPL families ,in
each Statt- / UT. The Goverl1JTIlmt has expanded the Antyodaya Anna Yojana
to c~lvl'r J~ -;dditional 50 lakh _fH)L families from amongst the following
priority groups: Ji) Households headed by widows or terminally ill perSRm;
or disabled persons or P_to'rsons agca -6()~year~;or more with no assured~eans
of sut:siste~ceo~_s~cieta1_sJlllP_o~t (ii) Widows or terminally ill persons or
disahll~d persons or pt'l"sonsa_g~dfill yearJ; 01 more or single women or single
Tlleri- with
-family or societaL sUPRort or assured means of subsistence;
(iii) !\ll ptlrnitive tribal hOllseh~lds.
...
;\s dnnounccd in the Interim Budget for 20<2:!-05,_the AAY will be further
l'xpandt:'d by including another 50. Jakh BPL families, thus increasing its
('(Ivl'rage from 1.5 crore to tw~ _~rort; BPL families.

m)

-~-

As against the .1li(lcation of 45.55 lakh tonnes of food grains during

2003-04, a quantity of 38.24 lakh tonnes has been lifted. This represents 83.95
per cpnt offtake.
OPEN MARKET SALE SCHEME (DOMESTIC) ,
Bl'sidcs meeting the requircmmt of the Public Distribution System (PDS) and
other food grains based welfare schemes of the Government and maintaining
a buffer stock, foodgrains from "the Central Pool are also released to the open
market to augmenfthe aVdilJbilityespedail in- the deficit regi~- an~ <luring
the lean ~f'aSOn 9! supply so as to h_av~a moderating effect on the ~ market
prices. The sale of food grains from
-Central Pool"
is
aiS()heipful in reducing thl' inventory of foodgrains with the FCI and other
procuring agenoe-s--ana--nence saving in carrying (:09ts'--- -"_" .. __ . -

-the

.-

in-tni-o-pen -market

------

Open Market Sale of Wheat: Wh~at is sold in the ~~ markf:!_~er the

Open Market Sale Scheme (Domestic) (OMSS(D) in whiCJltJle comrriodity
is madt: available to buyers th~()ughout the country at pre-fixed 'pn~~ The

Food and Civil Supplies

349

prices_ot wheat under the scheme ~t:e~_ll!!y_determined by the Government

onthe recommendatlOnsoTthe'fITgh-Level Com-mittee (HLC) of the FCI which
is an- Inter=6epartffientruoody comPrlsTrlgrepresentanvesrrom the-PC-I and
other concerned Ministries! Depa~~nts of the G~yemment -of ~rt_cHa. In _the
present -price-stnictUre;--pfices have been -fixed on State/Fct region-wise and
crop year-wise. Variation in prices froIll_ ~ne_g_ate / Re_g_ion to another is mainly
due to freight charges Tromthe_producing regions of punJab and Hary~na.
The prices of wheat of different 9"op years also vary since prices of older
stocks have bi'en fixed at k;wer levels than -those of the newer stocks in order
to facilitate off-take of the oider stock;. Bulk consumers like Roller fi;~;-Mi1ls,
etc., are the _l1'!_a_iD be;efiEi~rie~~ (,If this -S~b~. A quanMy of 9.23"'taKh--m
of rice was sold in the open market during the year -2003'::04.
D"en _Market Sale of Rice: Old stocks of rice and the st:_o~__pmcured.__!ln_der
the relaxed spedfi0iti?n~_ (l,LRS)---whlCl1 are not acceptable to _ fu_e __St~te
Government~ ur!~er th~ __!PDS and_~t~~r ~elf~re_-s~eme,_ a~ b_ei!l_g_~ld
through tenders from time to time. These tenders are finalised an_d rates_ are
approved by th~_]TLCofth~-FCI. A quantity or4:u5laTh- MT-of rice was
sold in the op~n marketduringtfle-year 2003-04.
INTERNATIONAL COOPERATION

India is a member of the following International Organisations ~ntemational

--

Grain-Councrr~ffi3:T;.(liYtooaa.mrAgriCUJtiireI)iiarusatiorilFAQ):2f thi-Q_N
inciUding nHs- CommiK"e'e OIL :World-- Foo-d ~curitY.J\tVFS); Jij.i) '1ntemational
-

--------,----

~-- -

Sugar Organisation JI5O}s.

.
-_...-- - India has been included in the category of E~~g M_~!l1Q_e.Lj_!!_]~Jy_
20Q3 ~n tlle:-~temati9-Dru~~~!!S O:>~~ The Department of Food and Public
Distrib,:~~on also parti~~~d.in_ the 18th session of IGC, _whj_I!_ wa_~ _h~dln
London in Decem6er 2003. The Government has decided to allocate foodgrains
at BPt: ~~tes-- fQ!:__th~_ d~y_eIQPlTl_e~t_;Q1e~~s ~f~~as_si~t_e,! projects in It:'dia.
India is also a MemRer of the S~ARC Food SeQlrity Re~rve Boa~d. Out__Qf
the minimum-~_~rve orfOodg!ai~
two J~ MT to be maintained by the
SAA~C ~~~nt.~~s. iriai~s~ ~~~~J .~l_I~hl:tW. India_~~~ci~eate~ _iE._~t!:te ~5th
st'ssion of Council of International ~~~Ol'_g~ni~atiof\1 . ~nicn was held in
Santo Dom~~o, Dorrunican--Repu6lic, in April 2004.
-~-.~

cl

STORAGE

The storage capacity of the Central Warehousing Corporation (CWC) and 17

State Warehousing Corporations (SWCs) as on 1 March 2004 wasas u~?er:

India 2005

350

STORAGE CAPACITY
Constructed

cwe .

115,21,017

swc

Hired
11,20,045

Opened I Plinth

Management

Total

]5,09,526

1,74,503

93,25,091

MT

MT

MT

MT

MT

]33.68

49.05

24.48

LMT

LMT

207.D1

LMT

LMT

The CW<;:'. ~t_~rt~d Jt~ 9~!~tions in !22Z. with a capacity of 7,000 tonnes
in hired g(~downs. It has steadily increased its warehousing -capaCilY and is
operating %7-centres with a total capacity of ~~.25 I~kh MT as on 1 March
2004. The CWC is also operating 100 cu~t_om..bQl}_d~~ warehouses with a total
- - ~- - capacity of 6.11 lakh tonnes as on -1 March 2004.
The CWC has associates in State Warehousing Corporations in 17 States.
The total investment of the CWe, which is a 50 per cent shareholder in The
equity capital of State Warehousing Corporations, was 54.63 crore as on
31 March 2003.

MANAGEMENT OF FOODGRAINS
SAVE GRAIN CAMPAIGN (SGc)
The scheme is implemented thr~ network of 17 SGC offices in clQSC
collabo~~tK fueStateGovernments, NGbs;Corporate H_O'!_~~I.-etc. The
main obiectLv~ -of th~scnemelsto transfer
technicalkIlow.:h().w developed
by the -lIl~ian _Grain Sto_r~ge_~Man~~e~~~t!lnd_B.e~~!~__!~~iitute QGJ\.1~ to
the fa~ers for minimisi!1g. !h~.ost-harvest l~sses in foodgrains .. U}l~E!r the
assistance -for purchasing the metal bins and 0tn!f inputs at the
scheme
rate of Rs ~~_reL village i~_.p!"vided- t~_!~_~a~.:~ . ../

the-

an

During 2003-04, 38,475 farmers were trained in 1,592 stipendiary / nonstipendiary training programmes, 14,805 meta] bins distributed, 18,387 nonmetallic storage structures improved / constructed and 434 nucleus villages
developed.
QUALITY STANDARDS FOR FOODGRAINS
The Government exercises due control over the quality of food grains procured
for the Central/State Pool. The Quality Control Cell of the Mi.!!!stry_ ~!t.hits
two regi~J}~l Qffi'~s at ~~and1Ti~ribii,r~_Pll_ii~~-!he__sual!!y ~_~f
foodgraitlS
being.procured
by- - -the
Fe! anasfate agencies
for
Central/StCl._te
-.
--- '
-- -- --- --_.-.--'
----Pool as well as at the time of storage ana dIStribution. 'DUring 2003-04, 706
Food -Storage Depots, 375 Procurement Centres, 204 Rail/Truck Heads, .811
Fair Price Shops and 377 Rice Mills were inspected besides investigat,ion of
10 complaints received from the State Governments/VIPS/Consumers, .e,tc.,
and col1ection of 3,806 food grains samples from diff~rent poU;ts of procun:!plent,
storage and distribution.
---

-_

~.

Food and Civil Supplies

351

INDIAN GRAIN STORAGE MANAGEMENT AND RESEARCH INSTITUTE

Indian Grain Storage Management and Research Institute ~q~RI), .J:ia,pur, is

engaged in the training andRtp work relating to grain storage management.
At present, the Institute
has three field st~tions
at Hyderaba~
Jorhat and
,...-_.
.
..
Ludhiana. The training courses organised by the IGMRI are on storage,
inspection of food grains, pest control, etc., for the officers of storage agencies,
pest control operators, etc., engaged in handling and storage of food grains.
--~

..

---~

---~

,_,

-.

EDIBILE OILS
It has been the policy of the government to have an efficient management
of edible oils so as to ensure its easy availability to consumers at .reasonable
prices, throughout the country. The production of oilseeds has increased from
186.1 lakh tonnes in 1990-91 to '247.5 lakh tonnes in 1998-99. However, due
to drought conditions during last three years in the major Oilseeds Producing
States the production of oil seeds declined as compared to the production
during 1998-99. In 2002-03, the oilseed production further declined to 149.6
lakh tonnes. The estimated production of oilseeds during 2003-04 is 250.1 lakh
tonnes. Potential of the secondary sources of edible oils like cotton seeds,
copra, rice 'bran_and-~ilbearingmatenarsTrOm. tree anUIOresf origfilna's also
been- exploited -moderately an'!.the~ s<?':I:.rce~are..!l.2~ co!,lrio_':l:ful_gJo t_1l_e]~~
of 25 per cenTOflll_eao~_y.~tabJ~_ oil !!!Q_duction. The country has been
resorting to irrip~rt of edible oils to bridge the gap between the demand and
supply. Edible Oils, whien was in the negative list of imports was first
decanalised partially in April 199~. The import policy was further liber .sed
from 1 April 1999 allowin~i~p0It_,E!_ a!~ _edil?le ~gs ~~cept , 0:rt~t oi _In
order to harmoruse-ffielilferests of domestic oilseeds growers, consumers and
processors and to regulate large import of edible oils to the extent possible,
the duty structure on edible oils is revised from time to time.

STATUS OF VEGETABLE OIL INDUSTRY

The Vegetable Oil Industry is administered through the follOwing controll

regulation ~rders:' (i)'Ve~table Oil. Products ,(R~lation). 9~~_e_r~)~8,
(ii) Edible Oils Packaging (Regulation) ~~!!.J99.~; and (iii) SOtvent,~.x.!!'_a~ed
Oil, De-oiled"Meru and -'EQibTe-FJoUi-{Co~trQl)_Qrdey/ J9()7. Th~rder are
st~tutory-1rinatUre and deiive theupowers from tl!e_Es;>entill1.Comm~i~es
Act. _.-_
- _-,-" ...---._. ,.,--_..
.......

Vegetable Oil Industry has been delicensed in July 1991. No industrial

licence is required for activity relating to processing of vegetable oils subject
to the conmpon of the locational policy angle. Crushing of oilseeds/ nam~ly,
Groundnut, 'Mustard and Sesame has been reserved for the small-scale
ind~tries, agro-l)8s;d indus't'riesand ~iISeedS growers cooperatives.
-.---

"

There are 244 Vanaspati units in the country with an

~,:,al Capa~ty

India 2005

352

of 47 lakh MTs. The prod~ction of Vanaspati (including Margarine and Bakery

shortening) is around 14 lakh MTs and the capacit}'- utijisationls-iuound 25."
pei cent. T1wre are 655 solvent extraction plants with an annual capacity of
2H2 lakh MT (in terms of Oil Bearing Material) in th~) country and the capacity
utilisation is around 31 per cent.

>.StJGAR
It'During the seas()n -2002-03. _the cQuntry achieved an all_ time _higb-Ievel .
pr()Ourtton -of 201.32 lakh tonnes as agamst TSf.116Ta"Kh tonnes the. previous
SeasOJ1:
There are _?Q{Li_I}~talIed sugar factories in the country as on 31 March
2004. The ";'ctm-wise breakup 15- asT(.)llows: - .......
..
. ..
Sector

Number of factories

Private

163

Public

31

Cooperative

306

TOTAL

500

SUGAR POLICY: PARTIAL CONTROL

Sugar and Sugar Cane are Essential Commodities under the Essential
C0fl:'~~(Iili~s Act; FJ5~.-The-GOve~rirhasbeen followin&._a P~UCY-~Tpart!al
control and dual pricing ~or Su_ga.!- Under this 'policy, a certain percentage
of sugar prod'uced by sugar factories is requisitioned by the Government. as
compulsory levy at a price fixed by the Government in every sugar seaS9n
(October:5Pptember). That. levy _sugar .. is distrii>uted .under the public
Distribution System (PDS). The ~on-Ievy, Tee sale sugar is allowed to be sold
- - . --as per the quantity released by the G<)verrUrienC

--",._-

-"

~----"

--

-_

----

-_ ------

Phased Decontrol of the Sugar Industry: The Government has decided to

completely decontrol the sugar industry in a phased manner. Accordingly, the
compulsory levy obligation of the sugar factories was reduced from 40 per
cent to 30 per cent with effect from 1 January 2000. With effect from 1 February
2001 the compulsory levy obligation has been further reduced to 15 per cent.
The levy obligation nO\4l_~~and~.<'t 10 ~r cen~__!!t_e producti~~.!!.q_I!!_lM~rch

2002.

.- .-- ...._._--. - .-.'-

-,---.. -

SUGARCANE PRICING POLICY

The Central Government fixes the Statutory Minimum ~f

suga~~~ terms of Cl~use ._~ _~f the Sugarc~e (Con.!.r.QD._Qr.~~l! _1~ for

each sugar seasri:n.-TneSMP is fixed on the- basis of the recommendations

Food and Civil Supplies

35:\

of the Commission for Agricultural Costs and rrices (CACP) and after
consulting the ~tate Governments and associations o~ s'!_gafir\(:l~.sliy an~ cane
growers.
Statutory Minimum Price of Sugarcane: The Ce~!ral Government hils ~ix~d
the Statutory Minimum Price (SMP) of Sugarcane for-the2()03-(j;fsugar season
at Rs 73-per quintal Hilked f()-a basic-r~covery-onr5per-cenf:subj~ct--to- a
premium of 85 paise for every-a.l per cent point inciease in the recovery above
that level. The SME of sugarcane payable b_y_~u_ga!__fu<:!o_~ies for each sugar
season since 1999-20rnfts- sntiwn mrtleTOllowing table:
Sugar Seasons

SMP (Rs per quintal)

1999-2000

56.10

2000-2001

59.50

2001-2002

(>2.05

2002-2003

69.50

2l)(B-2004

73.00

Buffer Stock: In view of high cilrryJQ!Ward. stoc~s __otsugar,

decline
in sugar
- ---.
- -------------prices in th~ (~n m_ar~~!_ aDsi_high _~E_e__j)lj~!~arsJ __t~e__~~~!~erlt
desided _!? create ao~ffer s_!?~~ of 30 lakh to~s of s~~! a ~__ of
one year _rr6r!i~~_Il_1ber 2q<J~:'.Jhis invOfved an outgo of aoout Rs 412
crore from Sugar Development Fund '(SDF). Rs 374 crore was to be projected
to have been released by the sched~re(Ccommercial banks to the concerned
sugar mills as additional credit on their buffer stock quantity. As the SDF rules
provide, the entire amount of Rs 786 crore including Rs 374 crore 'to be released
by the commercial banks was to. be used exclusively by the sugar mills for
payment of cane price to the farmers,.
It was decided by the Government to extend the period of maintenance
of buffer stock of sugar by one year. The buffer subsidy payable for one year
beyond 17 December 2003 would be about Rs 403 crore. The additional credit
from the banks against buffer stock quantity would 'be about Rs 390 crore.
This will give some relief to the ailing sugar industry. and sugarcane growers,
and both the additional credit and the buffer subsidy will be utilised for
payment of cane price dues and the total amount av~ilabie for such payment
would be Rs 793 crore for one year. 317 cases out of 362 cases have been
cleared for advance buffer sub.sidy amounting to R'i 205 crore. '
Packages of Special Assistance for clearance of sugarcane price arrears.:
The Central Government has announced fwo packages of special assistance
to the State Governments to help them in the clearance of sugarcane price
arrears in respect of 2002-03 sugar season.
It has also been decided that the Central Government would provide

India 2005

354

a ont:'-tinw assistance to the State Govt:'rnments by permitting them to raise

additional market borrowings to be used only for liquidating the cane price
arrears of the mills in the cooperative and public sectors where the practice
of announcing the State-Advised Prices of sugarcane exists in all sugar mills
in the States where no practice exists.
The Government has amended the Sugarcane (Control) Order, 1966 on
29 November 2000 enabling the Central Government/State Governments/

Officers authorised by the Central Government / Stat(' Governments to recover

the arrears of cane prices remaining unpaid after 14 days supply of ~garcam'
by the growers, together with interest at the rate of 15 per cent per annum
thereon, as arrears of land revenue.
FOOD PROCESSING
The M~n~~~.giJ:Q94_rroc~sing)!~~'-!.~trit:_~ was se.!_up3 Ju!.Y.._!2_8!L tl~ ~~ve
an impt'tus to the d~:vdoPlll(~I~t of !()od-processing_ in.9:\l_~ry ~ ~ht' _coun~ry.
Stib~"cquently thIS Ministry was made i1_ Department and brougot under the
Minishy of Agriculture in Octl;ber 1.999. It w~s once ag~In n()t1fiedas MInistry
of F~)od Processing Industries in&:ptember ~.
_ _
-.
The Ministry is concerned with formulation and implementation of the
policies and plans for the food processing industries within the overall
national priorities and objectives.
FOOD GRAIN MILLING INDUSTRY
The grain processing industries include milling

of..ri~, w~and

pulses and

(~inancial assistance is prOVIded for setting up/modernisation/

exp~;Si()!1 of the units before their commissioning. The thrust is on ensuring

disbursal of modern uI1ils throughout the country for demonstration and
replication keeping in view the recovery loss, non-utilisation of by-products,
energy inefficiency in most of the mill.
Guidelines wen~ issued by the Ministry in June 2003 for the State Nodal
Agencies (SNAs) in which it has been clearly specified that the financial
support of theMin is try can be made available to the rice/flour mill which
use latest, modern and eco-friendly technology / processes, which enhances
recovery, improves quality, ensures by-product utilisation and other benefits
leading to substantial value addition. It .has further been clarified that no
financial support will be provided to trad1tionaJ-'gralo"mW_i!lg. --_-------'--T._' _____ - .. ~-,,--------

-~_

--'-'_.,,-___. __ '_

,........

"____ ."_ _ _ _ .'~

~:-

During the year up to 31 March 2004 the Ministry has provided financial
assistance to 19 rice mills, 10 f1ourmills, two pulse rirills and 11 oil mills. For
providing hands-on training experience to rurual entrepreneurs 348 Food
Processing Training Centres (FPTCs) have been set up in different'partsof
the country.
-----CONSUMER FOOD INDUSTRIES
The Consumer Food Industries also cover products including ready-to-eat or

Food and Civil Supplies

355

ready-to-cook products such as pasta, bakery, cocoa products, biscuits, soft

drinks, beer and alcohol beverages (non-molasses), mineral and packaged
water. The bread and biscuit constitutes the largest segment with a total output
of about 3.70~milhon tonnes per annum. Manulacture of bread is reserved
for ssI_se~t':1!' ThitortIle to!~I_P_!~~l!__ctio!'_orbreadL_40~per'~ent is-produced
in the organised sector and the remaining. 60 _per cent in the un organised
sect2r:-Dunng- 2003~d4~an-amount-no{-Rs4.24 'crore nasoeen approved!
sanctioned to 23 such industrial Units. Similarly, production of biscuits in p,e
organised sector is about 11.50 lakh tonnes and quantity of biscuits produced
in the unorganised sector is about 3.80 lakh tonnes. The production of flakes
is around 14,000 tonnes.
Produ5tio~_s>f rasta products has re_gi~ter~<! a marginal ng_rQ~th_.l!:l._thc
organiseg ~gQr. but iri'Qie unorganiSed- sect~!'._~.s!:2wth is much higher. The
soft drinks constitute thethiralargesfpackagcd fo~(fsregularWconsumed
after packed tea and packed biscuits. The aerated soft drin~"___ir!<hI1>~!Y_ h~s
attracte~ a!!_ ~p'I.~a!_~und R~_ 4,7f~ c~o!e..~ .. --.----

The Minis~ Food Processing lndusttje~js also provi<:l!fi_g financial

assistance for "~tting up /;"odeml!:;alloll/expansion of consumer industries
and has approved--T2proposals' of cereal-based cons~mer foods industries
from April 2003 to March 2004.

FRUIT AND VEGETABLE PROCESSING INDUSTRIES

The Direct~r~~e _of Food_~~~ ye~!(l!>l~ ~roc~si_ngltl..the Min~'!y'~responsible
for -implementation of Fruit Products Order (FPO), 1955 issued und~
Essential C~~~oditiesAct, 1955 to ensure ~ygien.i:~ and good quam}' products
manufacture~_~~~ld. The DIrectorate has four regional offices at Delhi,
Kolkata, Mlimbai and Chennai anatwo s~~o~~~_~~t Luck~ and G~fi.

_.

_-'-

.- __...
"

The installed capacity of fruit and vegetable processing industry has been
increased from 11.08 lakh tonnes in January 1993 to 23.28 lakh tonnes in
January 2004. The uillisation ()f_ .(!tl~ts __~.d vegetab.I~.~Uor P_!Q~~..ing. ~_the
organised and unorganised sectors is estimated to be around two~r. cent
of t~eJot~rProduction. Duril~s on ~1 Mar_ch 2~n amOUnt
of R., 3.65 crore has been approved/sanctioned to 21 such industrial units
in the country.

DAIRY PROCESSING
Organised ~industry accounts for less than 15 per cent of the_ ~
proguceam India. The rest of the mi1k1S either consumed at farm level, or
is s~~as freSh, non-pastetirized milk !t'rough unorganised Channel. Th~
of organised industry IS expected to ~ rapidly ~ith a l~~ly ~,yth~tover
20-30 Per -centPer annum. -'
. ..
.---,--_---.-~-.

MEAT AND MEAT PROCESSING

,,~

,.

Production of meat and meat products is increasing slowly but steadily from

India 2005

356

1995 onwards. The production of meat is governed under local by-laws as

slaughtering is a state subject and slaughterhouses are contrgJled by the local

heaith authorities. Processing of meat _products is licensed under the Meat
F(;~d Produ<-is Order, (MFPO), ] 973, which was h,thert(; being implemented
by the Directc)rate at -Marketing aile! (~;p~CB:Oll (l)Mi) ha; . ;ince been
transferred to the Milll.s1ry. - Tht> slaughter rate for cattle as a w~~e is six. per ~~n~whereas it is 10
per cent in the case- orb~ff~loe~, 99 per cent- for pigs, 30 per cent for sheep
-.
-and bout 40 per cent for goats.
FISH PROCESSING

More than SOper ~11__!__()f ~!-t_e_prod!1cti(:!.~o~_s~ i_rl Jn~~ is from marine sources.
Production of fish from both marine and inland sources has increased from
5.25 million tonne5 in 1998-99 to 5.65 million tormes in 2000-01.

__

_ _ _

_____ c

_ _ _ _ _ -

._._

____

_.

,.

of marine I'!~dllcts ~nt? __caI111ed an.d frQ];enJo.!!ns i~sarried

out almost entirely foi t~~~P~).!t market. At preseJ1t~ there are over 402
free~i~g unH.s ~-i1n-a-(lilily processing cap~city of 8,SOO tonl]~s and 485 frozen
sto;~ges with a c~pacity of 1,09,(}90 tOI~.i~: Besid;s,there are five 'S~rim{
Units, ] 3 f'!_nneI.it:!~, 559"p~e::!.()cessing units and dry !is~_ stox_ages. 72 number
o(tiw freezing unitH mentioned above have cooki~g facilities.
~

Proc~ssing

_ __

EXPORTS

The export of processed fruits and ~egetables, animal products, rice and
marinp products have shown significant jncrea~e during the year 2002-03 as
compared to the previous year. In the case of other processed food items there
has been a marginal decline in exports ~uring 2002-03 due to flu"tuation in
market.

EXPORTS OF PROCESSED FOOD ITEMS

(Rupees in crore)
Item

2000-01

2001-02

2002-03

Processed fruits and vegNables

1345.5

1100.57

1206.93

Animal Products

1637.1

1500.93

1800.53

1798

1780.07

1720.11

Rice

2943.3

3174.14

5895.85

Walnuts

109.94

117.98

121.23

6443.89

5957.05

6881.31

Other Processed Food (Guar Gum,

Ground Nut, Alcohol, Beverages,
Milled products, etc.)

Marine Products

Food and Civil Supplies

357

CONSUMER AFFAIRS
PRICE MANAGEMENT
During the year 2003-04 the overall availability and prices of essential
commodities have generally remained at satisfactory level. Barring increase
in prices of some variety of edible oils due to hike in international prices
coupled with lower production last year, no perceptible price rise or shortages
were reports for any essential commodity. The annual rate of inflation in terms
of Wholesale Price Index (WPI) numbers recorded a modest increase of 4.7
during the year 2003-04 as compared to 6 per cent in the
per
corresponding period a year ago. In the case of Consumer Price Index (CPI),
the annual inflation ratt:' for the year ending 2003-04 was lower at 3.5 per
cent compared 4.1 per cent in 2002-03.

-cent-

In th;~ year ~()()~-9~, the l2e'pa_rtl11~n~f_C..Q!lsymer:. ~ffairs, ~~i!ore<! the

retail prices of 12. essential commoditie~<;, namely, rice, wheat, gram, arhar,
suga~, grou"n<!I1_I~toil~ must~!<L.2il, vaHaspati~ ~aIC te-;'-potato -arid oilion:-Dn
a daily baS!!).L.....aIld wholesale prices on a weekly basis covering 18 and 37
centres respectively. In a"ddffion tothese -Cllmmodities, two more items viz.,
milk and atta have been ad<!ed f()r_price momtoring from 21uly}9<l3. The
High Powered.-rrLc~ Monitoring Board (HPPMB) monitored the prices and
availability of essentialcommodities, based on the reviews prepared by the
Price Monitoring Cell (P_MC) of the Department. TheJiPpMB met once ~
every month to review the price and availability scenario. In ora~ to _~~J!lent
the availability. of esscj~ilal5:orr\J"1:l~~.ities, i!O.p0!t~ of commodities, which were
in short supply such il,s_!dible o.i1s and Pul_S~S/. \Yt'~illlow~g _i.l.t redu~<,i i~port
duties. -"- -- - _- ----- ----.
Movements in the Wholesale Price Index (WPI) numbers during 200304 indicated that while the WPI of Manufactured Products with a higher
weight of 63.75 per cent in the overall index basket increased by 6.4 per cent,
the index number of Fuel items with a lower weight of 14.23 per cent rose
by 3.3 per cent. In the case of Primary Articles having a weight of 22.03 per
cent, the increase was 1.8 per cent during the period.

;>6~)MMODITYWISE PRICE TRENDS

Cereals: The WPI of Cereals declined by one per cent during 2003-04 as
against the increase of 4.5 per cent in the same period a year ago. Among
the indivraual items, the WPI of wheat rose by 4.9 rer cent while that of rice
dl>clined by 2.4 per cent. The production of cere~ls for 2003-04 is estimated
to be higher at 195.89 million tonnes as compared to 163.05 milli<?n tonnes
in 2002--03. In view of the estimated higher production and adequate buffer
stocks, the prices of these items may continue. to be satisfactory in the coming
period. The off-take of rice and wheat for public distribution system (including
various welfare schemes) during 2003-04 was 479.30 lakh tonnes as comp~red
to 496.35 lakh tonnes in 2002-03.
.

35H

India 2005

Pulses: The production of pulses during 2003-04 was estimated to be much

higher at 14.89 million tonnes as against 11.14 million tonnes in 2002-03. The
gap in the demand and availability of the commodity was met to some extent
by way of imports. However, due to decline in the availability in the
international markets, import of pulses for the period of April 2003-January
2004 was lower at 14.99 lakh tonnes as compared to 17.77 lakh tonnes in the
corrt'sponding period last year. In terms of wholesale price index numbers,
the sub-group of pulses recorded a negative growth of one per cent in
2003-04 as compared to the decline of 1.1 per cent in 2002-03. However, among
individual pulses, the WPI of arhar and masur increased by 7.1 per cent and
J 5.0 per cent respectively.
Edible Oils: Prices of edible oils recorded a substantial increase during
2003-04 mainly dut, to significant fall in the production of oil seeds in
2002-03, high international prices, high import duty, etc. During the period
2003-04, the WPI of edible oils, as a sub-group, exhibited an increase of 93
per cent as against a sharp hike of 25.7 per cent in 2002-03. The price indices
of all major edible oils have increased in the range of 6.3 per cent (vanaspati)
to 26.3 per cent (coconut oil) during 2003-04 except a decline of 10.4 per cent
in ground nut oil. However, during 2003-04, production of edible oilseeds has
been estimated to be at a higher level of 250.08 lakh tonnes as compared to
150.58 lakh tonnes in 2002-03 and 206.62 lakh tonnes in 2001-02. Imports of
edible oil during April 2oo3-January 2004 were 45.37 lakh tonnes as compared
to 30.71 lakh tonnes during the corresponding period last year.
Sugar: Sugar prices exhibited mainly a steady trend during the year
2003-04 barring some variation in the third and fourth quarter. Prices of sugar
exhibited an increase during the third and fourth quarter of 2003-04 due to
increase demand coupled with anticipated faU in production of sugarcane in
the coming sugar season. In terms of WPI, the prices of sugar rose by 17 per
cent during 2003-04 as compared to the decline of 14.7 per cent during the
identical period in 2002-03. In order to check the rising trend in prices,
additional quantities of free sale sugar were released in February and March
2004. The free sale sugar and levy sugar quota for April-June 2004 quarter
were also increased substantially, as a result of which sugar prices have
remained steady since the third week of April 2004. The production of sugar
for the sugar season 2002-03 (October-September) was 20.10 million tonnes
as compared to 18.10 million tonnes a year ago. The production during thp
season 2003-04 is estimated to be 14.5 million tonnes. The stock of sugar at
the end of 2002-03 season was at 10.89 million tonnes as against 11.38 million
tonnes for the corresponding period last year.
Vegetables: Vegetable prices are subjected to variations depending on the
availability and seasonal factors. The Government have kept a close watch
on the prices and availability of vegetables especially onion and potato. The
increase in the prices of onion observed during the third quarter of 2003-04,
due to unseasonal rains in the producing areas resulting in delayed harvesting
of the crop, have softened in the subsequent quarter with the arrival of fresh

Food and Civil Supplies

359

rabi crop in large quantities. Onion prices are now shOWing a steady to
declining trend at most of the centres. The WPJ of vegetables as a sub-group
has observed an increaSE:' of 6.3 per cent during 2003-04 as against the decline
of 13.6 per cent during the corresponding period a year ago. During this
period the WPI of potato declined by 3.3 per cent while that of onion increased
by 57.7 per cent mainly due to seasonal fluctuations in the availability. The
production of onion for 2002-03 was at 5.44 million tonnes and for 2003-04,
it is likely to be around 5.46 million tonnes. During the year 2003-04, the total
exports of onion from the country were 8.26 lakh tonnes. The canalisation of
exports through NAFED and other State agencies and periodical review of
availability continued.

Tea: Tea production is estimated to be 850.49 million kg during 2003-04

compared to 837.60 million kg in 2002-03. During 2003-04, the prices and
availability of tea in the country remained satisfactory. The WPI of tea declined
ny 8.7 per cent as against the increase of 23.2 per cent during the last year.
At the retail level the prices indicated a steady trend.
ESSENTIAL COMMODITIES ACT, 1955
The Es~~t!~I_C_l!l!I!lQ9iti~...?Act, 12.:?.?_was .e~ac~g. to_~nsure eas~~ai1~.,jlity
of essential. _c.)m!!l_odi~!es._t()_ th:~~n_!>':!Il"\~r!i__ al]_d _ t9__'pr~~e0 _!_l:t_em_ in1_rn
exploita-tion \:lY 1l1l~~!:1:lP':l1.<?_l!._~ !!~~ers. The ~ct J~id~~_ for re~lation and
contrQ} _Q_f prQ9u~on, distribl.l!!o!_l_and pri~g of commodities _~~i~__il!e
declared ~~~s~ntial for m~~~!'!_i~_g,-,?~increasmg s~Eplies-or'f()r.Ecuring
their 'equitable distribution and availability at fair prices. Most of the powers
under the Acp'-avebeen delegated"to the State G~\'~rnmeDts--:-"""'-'--The list of commodities declared as "essential" is reviewed from time
to time in the light of ch~ni~s
the economic_ situ~ti_Q_~- and p~rtiCUllirfy with
rt'gard to their prodtlctiol}, demand, and supply. From 15 February 2002, the
Government removed 11 classes of commodities in' fUn and one in part from
the list of essential commodities declared earlier. In order to accelerate
t'conomic growth and to benefit cOl}sumers, two mo~ commodities have been
deleted from the list. ~
m 31 March 2004. A!_ present th~_li_~LgL~~sential
commodities contairu(~ems .

ip

---.------..

~-

In the context of liberalisation of Indian economy, it was decided that

the Essential Commodities Act, 1944 J;Ilay continue as an umbrella legislation
tor the Centre and the States to use when warranted allowing, ho~ever, a
progressive dismantling of the _control and restrictions.' Accordingly, the
Central Government issued the Removal o~ (Licensing req~rnents, Stock
limits and Movement Restrictions) on Specified Foodstuffs Order, 2!)O2 on 15
February 2002 under the Essential Commodities Act, 19~5 allowing dealers
to freely buy, stock, sell, transport, distribute, dispose, etc., any quantity in
respect of wheat, paddy I rice, coarse grains, sug~ edible oilseeds and edible
oils without requiring any lk:ense or pennit therefor under any order issued
under the Act.
.

360

India 2005

/;
Similar'restrictions in respect of a few more items of foodstuffs viz.,
pulses, gu!, wheat products (namely, maida, rava, sufi, atta, resultant atta and
bran) and hydrogenated vegetable oil or m'WsT,ati have also been removed
by notification / order dated ] 6 Jum' 2003. Further, through this notification
the said Central Order of 15 February 2002 has b('en amended to amplify the
definition of "dealer" to include producer, manufacturer, importer and
exporter. However, the Order has been amended to the extent that the rice
levy orders have been retained to ensure price support to the farmer, while
also ensuring adequate availability of rice at the disposal of the FCI/State
Government agencies for operating the PDS/Welfare Schemes. Similarly.
producer, manufacturer, importer and exporter of sugar have excluded from
the purview of the aforesaid Order as to facilitate issue of direction regarding
stocks, storage, etc., of sugar particularly in the context of the prevalence of
releast' mechanism / levy sugar quota and also to provide minimum support
price to sugar cane growers.
PREVENTION OF BLACKMARKETING AND MAINTENANCE OF
SUPPLIES OF ESSENTIAL COMMODITIES ACT, 1980
The Prevention of Blackmarketing and Maintenance of Supplies of Essential
Comml)dltles Ad"1980 was enacted to provide for detention in certain cases
for the pUT})()ses o(-prev;ntion of blackmarketing and maintenance of supplies
of commodities essential to the community and for matters connected
therewith. The Act empowers the Central and State / UT Governments to
detain persons whose activities are found to be prejudicial to the maintenance
of supplies of commodities essential to the community. Detention orders were
made in 112 cases by the State Governments during the year 2003. The Central
Government and the State Governments also have the power to modify or
revoke the detention orders. The representations made by or on behalf of the
persons ordered for detention are considered and decided by the Central
Government. 95 such representations were considered and decided during the
year 2003.

CONSUMER COOPERATIVES
Th~_c.ol}.Ul!!~t~~perativt structure irt the country has four tie..!_s, ~he

Nation~L~Q9perativeTl)nsumers Federation ofrnaIaLimited (NCCF) at tht'

nat:ry~llev_el. Thir!y ?tat~ C~op~rati~; C0!:lsumerSOrganisations are affi!iated

to the NCCF. At the Central/Wholesale lever-il\ere are 800 Consumer
COO~!~~~~Stores. At th;-P.E~D:tary~-kYCthere are 2SjS9 I:!m~~._~
the rural areas.there are about_ 44,418 yill~ge !I:.'~el Primary Agri~!~~ Cr:~lt
Societi~e~ _and Mar~eting Societies undertaking the disfi16unon of consumer
gooas.along with their_ normaL business. In the ufbliri-and semi-urban~areas
the c~nsumer cooperative socie~ie~ are- operating C}bout 37.226 retail ~ijets
to meet the reqUirements of the consumers. The NCCF besides undertcUdng
distn"bution of consumer articles, also has a Consultancy and Promotional Cell
for strengthenIng consumer cooperative societies engaged in the rgbliling
Head Office
at New Delhi. --------...---,--.
has 32 branches)
activities. The NCCF
_____with
-.. . . ,_. -.its
.--____.---.
. ---~-,--6-.--. --..

Food anc! Civil Supplies

361

sllb;!.>E~~S Jocat~_d in .~r:i~~~s._P.'lrts of the country. The sales turnover

achieved by the NCCF during the year 2003-04 was Rs 626.11 crore as against
till' sales turnover of Rs 674.06 crore last year. It has earned a net profit of
Rs 8.31 crore as against the profit of Rs 4.19crore achieved during the previous
year. The accumulated losses of the NCCF in 2003-04 were Rs 16.92 crore.

The government with thg_._help _Qf ..r-.J.CCE lauQ_ch~g.. .E_~~me (:(llled

Sa rl'p rillil in J:t:!ly 2000. The scheme env~~M~ dillribution of eleven selected

comm~dltil~~- of dai}y _"':!:~ to the con~u121e!~ th_r9_!!gh_the _~.~i:'>ting. r'P? ~~tail

Outlets ana ffi(-;Reta~IOl!tl~ts2f_ tJw Sta~e Con_J1.Jmers' ~ooperati ve Federations,
Slate Civir.Suppli_e~ CO_Torati.()!ls aI1_d tile ~onsu!11er ~()operativ_e f;Ocieties in
the States. Tl1cSG1eme is voluntary involvinj; no _subsidy.
.
FORWARD TRADING AND FORWARD MARKETS COMMISSION
The Forward Markets Commission is a stahl.!':1!Y_~o~'y set_1.!_1!nd~r _Em:ward
Contracts__(Ri'gtl_la~16fl) Ac:LJ 9:~iu and functions under the _ildministrntive
control of the Ministry- of Consumer Aff,!il"s, Food and Public _Distribution.
The Commissiori regulates-forward markets in commodities through the
recognised associations, recommends to the Government the grant/withdrawal
of recognition to the associations organising forward trading in commodities
tlnd makes recommcndation~ for the general improvement of the functioning
of forward markets in the country.
With the issue of the notificatiun dated tht' 1 ~ril 200~l.he Government
permitted fu!U!~ trodin~ in ~_ m_?re cO~~9~iti~<;. '-Hence, profiThlHon~_of
futuresTradlng in commo_dities__stands completely wiLhdra~n. Non-Transferable
Specific Delivery (NTSD) contr~~s ~eing g_~JllIiI1e mer~han<ij~~I1g contr~t:"ts
were brought outside the review ofJegura~on / p_rohibition by exemEting
NTSD contracts in 37 commodities from the operation of Section 17 read with
Section 18(3) of the Act. Therefore all NTSD contracts are now ()lltside the
purview of prohibition and ~gulation of the Forward Contracts (Regulation)
Act, 1952. Futures Trading in Bullion. (goL~ silver), _Wheat and__Ri~as
been c,?mmenced after a Jong_&'lp_. Futu,res tradi~J_a_~~I_~i~~<l,,~_~een
extended tcy-jammu -alfq_~!r.
10 improve the functioning of t,he exchanges and also to. adopt be_tter
trade practices in order to create confidence among potential participant'>, the
Commission along with the various stake holders has conducted massive
awareness programme~.
The Government had set up an Int_er-Ministerial Tas1<. Force on
Convergence of Securities and Commodity -Derivatives markets, which
submitted its Report. In order to chalk out a road map for the Operationalisation
of convergence, a Working Group has been constituted with representatives
of all concerned Ministries and Org~nisations.
Three Nationwide Multi-Commodity Exchanges viz., National MultiCommodity Exchange o_f India Ltd., (NMCE)(_Ahm~abad, Multi-~Q_ffimodity
Exchang~ (~ Mumb~i and National Co~odity .~~:\~~~tiy'~s E~h~ge

India 2005

362

(NCl)E~),_M_tmiliai were given p~rll1il!lent re~<?gni!!o_!l_ t!L~

all permitted commodities.--

The exchanges have been persuaded to implement various reforms s~ch

as online trading, time stamping, trade guarantee and settlement mechan~m,
one-third independent board representation, and back-office automation for
their smooth functioning. In order to increase the volume of trading, the FM_C
is signing Memorandum of Understanding with the Exchanges setting bench
mark targets.
The liberalisation and opening up of commodity market has started
showing results in terms of significant jump in the volume of futures tradH\g
in commodities. The exchanges have logged aggregate trade vahle of
Rs 1,30,214 crore during the financial year 2003-04 ovcr Rs 68,276.04 crore
during the financial year 2002-03.
THE CONSUMER PROTECTION ACT, 1986 ,The Consumer Prot('~ti9nAct, 19H6 was enac_tcd_lOL.bettcL~ of tht'
interests of consume~s. All th;p~~~i-sions ()(the Act have came into forc;f';;m
] July 19~7.
- .-.- - ---The Act was amended in 1991 and 1993. To make the Consumer
Protection Act more functional-ana pur-p~;st:ful, ~-cQ~h~~~ndn1ent
was carried out in December 2(J(!2_and brought ir.to forCfJrom _!5 March~
As a sequel, the Consumer Protection Rules~ ~ 987
also amended and
notified on 5 March 2004. The salient featurf'sofihe Act an:: 1 It appI_ies
to all goods and services unless specifically exempted by the C!.'ntral
Government; (ii) It covers all the St'ctors wheth'r private, public, coopm-ative
or any person. The provisions of the Act are compensatory as well as
prl:'ventive and punitiw in nature; (iii) 't p'lshrines the following rights of
consumers; (a) right to bl:' protected ;;gai!lst the marketing of good~ and
services which are hazardous to life and i_'roperty; (b) right to be informed
about the quality, quantity, potency, }luri' y, standard and price of goods or
services so as to protect Iht' consumers (l~ainst unfair trade practices; (c) right
to be assured, wherever possible, access to a variety of goods and services
at competitive prices; (d) right to be heard and to be assured that consumers'
interests will receiw due consideration at the appropriate fora; (e) right to
seek redressal against unfair trade practices or unsfrupulous exploitation of
consumers; and (f) right to consumer education; (iv) The Act also envisages
establishment of Consumer Protection Councils at the central, state and district
levels, whose milin objectives are to promote and protect the rights of
consumers; (v) To provide a simple, speedy and inexpensive redressal (If
consumer grievances, the Act envisages a three-tier quasi-judicial !Jl.achinery
at the nationaL state and district ltovels. These are: National Consumer
Disputes Redressal Commission known as National Commfssion, Sfate
Consumer Disputes Redressal Commissions known as State CommIssions-and
District Consumer Disputes Redressal Forum known as District Forum.;-and
(vi) the proviSions of this Act are in addition to and not in derogafion- of the

were

Food and Civil Supplies

363

provisions of any other law for the time being in force.

At present there are 32 State Commissions, one in each State/UT and
571_~i~trict for'!_~~si<:l_es the N_'!tionar:__~!_ri~!l~jon. Thest~K<ivemments are
responsible ~2.. set ul'~!!'tE! district fora and the State Commission5.Statesnave
been empowered to establish additional DistricCForum ~ditional
m(,tnbers in the State Commission to facilitate constituting benches and also
for holding circuit benches. The C~~~"~~~n~"!~~~'i_ to se.!_~" the
National Commission;_It has been empowered to appoint additional members
to facilitateof more benches and holding of circuit benches. The
~econd bench of the National Commission started functioning from, 24
September 2003. The government is monitoring the disposal of cases by the
consumtr courts through National Commission. Since its inception and up
to March 2004, 32,910 cases were filed out of which 24,974 cases disposed
of in the National Commission. Similarly 3,01,485 cases were filed and 1,97,797
cases disposed of in the State Commissions and 18,86,236 cases were filed
dnd 16,46,698 cases disposed of in the district fora. Overall 18,69,469 cases
have been disposed of out of 22,20,631 cases filed with a remarkable disposal
of 84.2 per cent.

creatiOn

The government has declared ~mber as 'N~ional Consumer Day',

since the President gaw his assent on that day to theenactrnent of the historic
("(msumer-Wofi>ctIonA'C[,1"98b.B"esides -this-fSMarch-is observedas-;World
C(l!1su~~"~hts Day' every year.
-CONSUMER WELFARE FUND
A Consumer Welfare Fund (CWF) was created in ] 992 with the objective of

providing financial assistance-anatopromote ana'piotect the welfare of

consumers, create consumer awareness and strengthen the consumer movement
in the country, particularly in rural areas. Thj>Jund....sft.!!l'.r_ the !?epartn:t:ent
of Revenue under the Central Excise and Salt Act, !~44, _is oper 'ted by the
Minis'try of ConsumerAffairs, Food.3_ruLEJ.lhliL.Q"~ution.TheuLenfral
Excise and Salt Act, 1944 was amended in 1991 to eniiEle the Central
Covemment to create the CWE_:~bCIf.Jh~..1!!oneYr ~hich is not refundable
to the matl_l1factur~~1h shalU~f credites!.
--- -- _- '-~---The Consumer Welfare Fund Rules were framed_-.and...milified. in 1992.
Under these Rufes~ any agency / o~ganisation engaged in consu~;'r '"~elfare
<lCtivities for a period of three years and. registered Under the CQl!\~~~~,
1~,)~ or any other law for the tiI1!e being in force, village/mandal/samiti level
cooperatives of consumers, industries State Governments, etc.~ are eligible for
seeking financial assistance from the Fund. ~e total guantum of financial
assistance on an indiyjg!:!~lilW.lk.ationjsJ.imited to R; {~y~!,!Jqi.Jmcn:Q per
cent contri~lltion is-~uired _!Q...be made by the applicant.
"
SCHEMES UNDER CWF
Ja~ti Shivir Yojana: An integrated a~~~.s.".~paign title~ /agriti Shivir
t(I]ana was laun;!!~_in ~~l1ie seneme aims at spreading consumer

India 2005

364

awareness at district level.1:Jy holding camps, ml'ctings, functions, etc., through

the'State Government and District Administration officials in association with
local elected representatives. So far an amount Rs 34.5 lakh had been released
to States/ U1S in respect of 65 districts till 31_ March 2004. Recently, a decision
has been taken to l'nhance the amount of grant from Rs 50,000 to one lakh
for". each-- --_district for organising consumer awareness programme at the district
level.
~--

--

--

District Consumer Information Centre: A m'w schpme to set up a District

Consumer Information Centre in each district of the country in a phased
maruwr over a period of th~ee Yl'ars ~ta ~~ost of Rs five lakh per Centre was
launched in October 2000. These Centres arc to be setul' and run by Zilla
Parishads (Vol~nt~~~t()J1SUr:n.~!: Organi.iati.on~ OTfl~J.';ute /l'~uc(ltional institutions
on it-c(lntinuOlls bilsis. They are expectl'd to rais(' consumer awareness and
assr"t consUlners in seeking redressal of their grievances. So far the scheme
has been sanctioned for 96 districts
.
. - --- in the country
-_
"_- - '

Consumer Clubs: This scheme has bl'cn i!_1t~ocluCt:'d ncent!y ~ according to

which a Cons.lI_l!l~r-.Cl.!:l._Q_~hal1 .. bl'_s~t .. uLin_i"l_':'.h__Middle/ High/ Uigher
Secondi.lfI ~ch_t~ol/~ol~l::ge . af~lia~~~ to _a_o(~".'errun~nl !:e(Yb~J~ea_ Board/
Uni versity: A grant of J~.~Jll..OiliLpcLC~r C1 tl b for:. each sch(lOl / collt'ge
is adinissiblE:' under this Scheme. Till the end of March 2004, 1,755 consumer
dum. haw been sanctioned in the States elf Andhia- PradeSh, Jammu and
Kashmir, Tripura, West Bengal and NeT of Delhi.
Promoting involvement of research Institutions/Universities/Colleges,
etc., in consumer protection and welfare: 1his scheme has been launched
n.:.cently to sponsor research and evaluation studies in the field o{ consumer
welfare, to providt~ solution to the practical problems being faced by the
consumers, to sponsor seminars / workshops / conferences on the consumer
related issues and to have necessary inputs for formulation of policy I
programme / scheme for the protection and welfare of the consumer. The
ln~!lry Institute oj r~ublic Acimittistrati()!:l (lIPA), New Delhi has beenidenfil'1ea
as the nndal organisation to adm!nister_this ssheme.
'
BUREAU OF INDIAN STANDARDS

The Indian Standards Institution (lSI) came into existence on 6 January_!2_47.

as a r;giStered ~~cicty with the-ObjectlVe'ornarmoruous development of
activtties(lf standardisation, quality certification and marking. This set-up was
provided statutory status through an Act of Parliament dated 26 November
19f:i6 and Buteau_of_'nd.i~.t:1_ St~!1_dards iBIS) came into .existence as ~~~l
standards body
of India on 1 April 1987
with avroadeneo
.C_9'pi:::a:Dd...lllQTe
,- -- .. __ ..- .... _.. . -._
. ....
_.
.._. - ._- _.po.wers, takmg over the staff, asse1s, liabilities and fUnctions of lSI. The main
functions 'o( BIS inch.id-e preparation and'-linpfementaH.()n of standards,
operation of certification schemes both for products and systems, organisation
and management of testing laboratories, creating consumer awareness and
maintaining close liaison with intemationaLstandards' bodi~s.

....,..-.

_,

- '

~..

Food and Civil Supplies

365

Chandigarh, Mumbai, Delhi, and Chennai. It has 33 branch offices in the

country.-The mS--ls developing need~based standards in accordance with
national priorities with the help of over 26,500 technical experts as members
of the technical committees. The standardisation projects are properly scret>ned
within BIS to ensure their usefulness. During 2002-03, 446 standards were
formulated. As on 31 March 2004, 17,9~ Indiim Standards are in force
covering important segments of the ec~nomy, which-help theinrlustry-In
upgrading the quality of their goods and services.
The BIS Product Certification Marks Scheme provides the consumer an
assurance of product quality confonning to national standards. The total
number of operative licences was 17,798 as on 31 March 2004 covering almost
1,145 different items ranging from food products to electronics. This scheme
is ~af'icCll!y_ __Y_Q!l;l__!l!_~I)'.J!!__natu.!~.~ How~ver, keeping in view the safMy,he_aiili
and maSSWI1B!mp!i_on of_,e!~i!2pi~-)d!:_l~!~_it ls!!,:aae-maiiaaf{)ry for 1(~~jtellls
like L]'Jg___ c~in~t!~' fQQ~lou_~~, packaged drinki-ng water,
-In order to
protect the common consumer against unscruptilt)ustraders-anomanufacturers
misusing the BIS Standard mark, enforcement raids will be carried out by
various offices of the BIS and, where necessary, prosecution cases will be filed
in the court of law.

etc.

Keeping i~_vi~~ the_ consumer interest and market demand,

.GQ1Q-

]ewel~~iy_~~rHhca~ (po_pularJy kl}own_as H.al_l_mClrk2_t:l_g_~LGo!d )ewel_l':!)')

was started in A_ril 2000 on a. voluntary basis. The scheme is aimed at

provi~iiithi~~ paityas-;-urance io_~On~~!Il~i_~- orUh~ _.R~__dtr-_gLg9i([_oi--l!s
fineness: This
is opera through B.~?~~~~_rk Ef__R~i_o__!lal_<!n_g I:}ra!l_ch
offices all ~>Vf.~r_th_{' <:o~ntry.
over 73()Je~el_l~r~_ll~\'~Ee~n C~!9fi_e.;i_ u~<!_t::r
this _scheme. A list of the BIS certified jewellers and the BIS recognised
hallmarKing centres were hosted on the BIS web-site.

sdieme-

fed

Solar

The BIS introduced certification scheme for foreign manufacturers and

certification scheme for importers. Under the provisions of these schemes,
for6lign manufacturers can seek certification from the BIS for marking their
products with the BIS Standard Mark and Indian importers can also seek the
BIS certification for applying tht:' HIS Standard Mark on the products being
imported into the country. Un.s!_~r !he BI!?_~~tification sch~~ fQf fo~ign
manufacturers, 37 licences have beenS!~!!.t~(LsQ.Ja.r. The qi!~ctOl:__a_!:_e_General
of Foreign Tra:de-i.inaef-ffieMiilfs__Q_L~9mmt:!_~e__~ad iss~eQ.~ nQtifi~Cltion
making compl1ance_~olndi_~~ ~tan~~r~~J9r ~09.__ !t~ms (covered under the BIS
mandatory CertIfication Sche_Il!e) mandatory.
_ ---- - _ _
-- _..

~"'

..

'~~

The BIS Quality System Certification Scheme based on International

Standards Quality Management q~__9<JQ!) has~over 1,380operative licences
as on 31 March 2004. This scheme has received accreditation in 23 technology
sectors from the Raad voor Accreditatle (i~v A) of Netherlands, an intematioJ\al
accreditation body of repute. The I!!? .~~s_ ~~_o started HAC:CI'jntegTat~
Quality System Certification, which provides the dual benefit of award of
certificate for HACCP anli ISO 9000' through a !!ingle audit. It is helpful to
exp_orters i~ the field of food and food P~.,-!~!~_~_peciiilly for exp()rts to USA

ot

__

India 2005

366

and Europe.
ThE:' BIS _la\JJ1~"'_ed _En~!!"O_f.l:!!l~I:t~~L rv1~!!_a~e!l!_el1_!_~ystems . <::ertific;ation
Scheme in 1997 as per IS/ISO 14001-1006. This scheme helps the industrial
unit~ to demonst~ate thei~~tmenT to environmental protection, prevention
of pollution and compliance with environmental legislation. 88 lic:eJl.ces have
been granted in diverse_t~~I:!n_Q]ogy areas. The BIS also launcheCf Occupational
He~lt)1 and S-afety Management System Certification (OH&SM)a'i -per IS
18001 :20[){) In Janu-ary2003 wlllcnessentiallyenables-il-n organisation to define,
plan and manage a p<mcy and objectives taking into account legislatives,
requirements and information about significant hazards and risks, which the
organisation can control and over which it can be expected to have and
influence to protect its employees and others, whose health and safety may
be affected by tht> activities of the organisation.
To support the _a~!!:y!!:Y_?L..E:_~~_I:l_~t ,_~~rtification, a ~b~il} oC_eight
laboratonesnas--oeen established in five regiOns~-:e:-: Si1_Qibab~4L M()b~li,
KoTKata,-MUiilbar-and- C'nenn'ilJancLlt -some ()( the Branch Offices, ;-amely,
rai!!i~ang~~e"~a:Jl.d_g~~_ahati. Arol}nd 30))00 samples are being te~ted in
BIS.Jaboratories ~~y_t:ry __year in_ acidition_!<-> samples _beiI}g sent to external
re~Sl_gni~~~I<ili, During 2oo3~, 30,]40 samples were tested in BIS laboratories.
Training programmes on testing of various products are organised by these
labs. During 2003-04, 12 such programmes were organised.
Since its inception 1947, the then lSI and now BIS has been an active
memberofIntemati()fla-1 Q!ga!!_i~_~tro!:ls! namely, International OrgamsanlJn-for
Starnri1!~safioi1"JISb) and Inte~ational EleC!io~:_dUlicar Co~r!\1ssr~iiJ!E~)
It participates in various policy-maKing committees of these international
standards bodies. The BIS also holds a secretariat of some of the important
ISO / IEC Committees, which are of trade interest to India. As a member of
the ISO, the BIS also takes active part in the development of International
Standards with a view to protect the ~terest'i of Indian trade and industry.
Recently, ackn_(!~_l~dging the active in~olvement of the BIS in 11l!~_!l1at!0J1al
Standardisation activity, -tne 15011a-s -offered the- posItion -QrReglonal Liaison
Officer (ILO) for $outhAsia-Region -toDUect General, BIS. India is a ~!}ihing
member. Qf t~~ LEC ~ystem of ~aliti Assessment ol-mectronic Com_PQl1ents
(IE~a~d LEe Syst~;n-forCo.!i!Q_rmi!y Te~tingto Standa~cl~~!~i_ ~~ty.of
Electrical g9LiJRI:neliL~1Ee:-EEI The BIS is also - . functionmg as the Central
Enqulry--Point under the World Trade Organisation (~O) ~~ovidin_g_~9.rld
wide information on standards, certification system' and technical regulations
to the Indian industrY and trade.
The ~J.~ had set up, in May 1997, a single window information and an
SS!_acilita_!i<:>IS!lI__~t-i!1i_ hea.~g~a~t~~t!~~New OeIJii..: "The mairi"oO"jeCfiy-e- is
to provide variety of information/ assistance to Indian industries partig,Yarly
the small~scale sector. A number Ofentrepreneurs, consumer and professionals
visit l1lJ.SCentre for their queries.

Rajiv Gandhi National Quality Award was instituted in 1991 to inculcate

367

Food and Civil Supplies

the spirit of competitiveness among the manufacturers. The annual award

compares with similar internationaIawards such
Malcolm Baldrige
Na~()x:':~LQy_aJity Award~ and European ~~lity

as
arc[--'----

The BIS had set up a separate_Training Department i!l __I?~!I'lUn 19~~ to

meet th~rowing need of the iiiau'Siiy:1riS""operafing' under the name of
National Institute of Training for Standardisation (NITS). It conducts training
programme-for industry as well as for 1lfems--empIOyees on Management
Systems, SQC, etc. The NITS also conduct, International Training Programme
for Developing Countries.
Recently, the BIS has taken some ~itiatives/~~~l'!!'~~hich include
reduction in the time_ tak.~_ J9r standards formUlation, restructuring of
technicar-colI!itltt__~i~and outs_Q~~iil:g -ol:-St~nd~rds- Formulation adivityto
have a more proactive approach. Under Certification, the power for grant of
licence has been decentralised, application form for grant of licence has been
simplified, time norms for grant of licence has been reduced, focused
monitoring of selected consumer products, participation of NGOs and VCOS,
and outsourcing of inspection to bring in more transparency in the certification
system.
WEIGHTS AND MEASURES
Uniform standards of weights and measures, based on the metric system, were
established in the country, under the Standards of Weights and Measures Act,

]1&

---

In order to establish the international system of units and to align Indian

laws with international practices as well as to remove certain deficiencies, a
comprehensive legislation, namely, the. Standards of Weights and Measures
Act, 1976., was enacted, replacing__th_e_l956 Act. The 1976 Act contains among
other things, provisions for regulation of pre-pack,e<! conul\odi~~s sold to
consumers so as to establish fair trading practices. Provisions of the Act
relating to packaged commodities and the relevant rules, namely, the
Standards of Wei ts and Measures Packa cd Commodities) Rules 1977 were
brou_g~L!!tt9 force, since ptember 1977. According to t ese provisions every
package intended for retail sale is required to carry information as regards
the name of the commodity, name and address of manufacturer or packer,
net quantity, month and year of manufacture/packing and retail price.
Mandatory declaration of retail sale price is inclusive of all taxes. The Rules
also have similar provisions for regulation of packaged commodities imported
into India.
Under the _provisions of the 1976 Act, the models of all weighing and
measuring instruments should be approved before commencement of their
production. Unde~ the relevant rulesl namely, the Sl'aEdards of Weights and
Measures (Approv~_?!_~~l)_ Rules, l~ ~.ise<:i !~~~~.~es exa~ne
the models for" ffielf conformity to the standards.
--_._-

_---

-.. -..--"-'~-"

India 2005

368

The forty-second Amendment of the Constitution brought the subiect of

'Enforcement of WeightsCl~d Measures' from the 'St~telis_p tothe'O;nru~rent
List'. 1"0 ensure uniformity in the matter of' enforcement in the country, a
"'-Central ALi, namely, the ,Standards of Weights and Measures (Enforcement)
Act, 1985 was brought into force. It contains provisions for effective legal
C(mtrl)J(;'n weights, measures and weighing/ measuring instruments used in
commercial transaction, industrial production and in protection involving
public health and safety.
.N
"t'~ I__-'

India is a member of the International Q~ganisa!i_o~ of Lgi!l Metrology.

This Organisation was sct up in order-torealise worldwide uniformity in laws
relating to legal metrology (weights and measures) and to make international
trade smooth and practical.
Legal standards of weights and measures of the States and Union
'lerritories arc calibrated in the four Regional Reference Standard Laboratories
(R:S..!rllocated at Ahmedabad, Bhubaneswar, Bangalore and Faridabad. These
la oratories also provide- calibratron services t<.:; the industries in their
respective regions and arc among the recognised laboratories for conducting
the model approval tests on weights and measuring instruments. The scheme
for establishing a permanent premises for RRSL, Guwahati to cater to the
needs of North-Eastern States, commenced in the Ninth Plan and is underway.
The Indian Institute of Le_gal_Metrology, Ranchi, under the admini~trative
control of the -Minisfry-(')f Consum~r-Affiijrs,~ooa andPublic Dis~ri1J~tion
imparts training in leiaf
--and ame,r~subkcts. Apart. from the
enforcement officia1s' of StateS:- nominees from African, Asian and Latin
American countries also attend the programme run by the Institute. The
Institute has also recently started imparting training to the non-judicial
members of the Consumer Disputes Redressal Agencies of the states.

metroiogy

NATIONAL TEST HOUSE

The National Test House (NTH) with its ht@~_qu~t!_ers at Kolkata is a
Government laboratory of national importance in the neIa-of-tes~_g and
evaluat!.on o(materials and products of all engineering branches except Food,
Pharmacel.ihca-IS
Arms
and AmmUnition.
It -fs'"also providing calibration
__ - .. _
-----_._-_--._,--servIces and acti_y~y_s~_rts the f~ulation of National Standara~ sTnce
inaependence. The objective of the NTH is to improve-trldiaiq,roaticts to-meet
the requirements of National/ International Standards for their acceptability
in the global market. The f\jTtI with its headquart~rs in Kolkata fun~~ons
th!'?~s.h six regional laboratories located in Kolk.il~il' Mumbai, Chennai,
Ghazi~~i:ld, Jaip!!!_ and Guw~ilti. There is also a modem labOratory cof.i\plex
of the NTIi located at Salt Lake, Kolkata.
~----_-- .._-. .

,.----

and

...

_-

15 Health and Family Welfare

HEALTH PLAN
OVER the years there has been an overall improvement in the health situation
of the country. Infant mortality rate (IMR), a sensitive indicator of health status
as well as of overall socio-economic development, has reduced significantly
from 146 in 1951 to 64 in 2002. Reduction in IMR is reflected in corresponding
increase in life expectancy at birth, which has increased from 36.7 in 1951
to 64.6 in 2003. Crude death rate has declined from 25 per 1,000 population
in 1951 to 8.1 in the year 2002. The substantial improvement is the result of
many factors including improvement in public health, coupled with infectious
disease prevention and control as also application of modem medical practices
in diagnosis and treatment of various ailments.
Despite overall improvement in socio-economic status and increasing life
expectancy, the prevalence of infectious diseases continues to be an area of
major concern in Health Sector. With the decline in death rate and increase
in life expectancy, epidemiological transition is underway resulting in increase
of non-communicable diseases like cardio vascular ailments, cancer, cataract
induced hlindness, diabetes, etc. To tackle the problem of communicable and
non-communicable diseases, the Department of Health is implementing
National Health Programmes throughout the country for Malaria, TB, Leprosy,
Blindness, AIDS, Cancer, Mental Health, etc. Coverage of Disease Surveillance
Programme is also being extended to prevent out-break of infectious diseases.
To reduce various imbalances in the availability of tertiary care, hospitals/
medical colleges providing speciality / super-speciality services, the Pradhan
Malltri Swasthya Suraksha Yojana (PMSSY) has been introduced during the
Tenth Plan. Under the scheme, institutions similar to All India Institute of
Medical Sciences, AIIMS, New Delhi shall be set up in six backward States
and another six existing institutions in other six States shall be upgraded to
the level of AIIMS, New Delhi.
The Tenth Plan outlay has been enhanced from Rs 9,253 crore to

Rs 10,252 crore in order to accommodate the PMSSY.

NATIONAL VECTOR BORNE DISEASE CONTROL PROGRAMME

The Directorate of National Vector Borne Disease Control Programme is the
national level nodal agency for monitoring and coordinating the CentraUysponsored schemes. The major responsibilities of the Directorate include policy
clnd strategy formulation, monitoring, technical and financial support to States
and UTs as per funding pattern. The National Vector Bome Disease Control
Programme (NVBDCP) is being implemented for prevention and control of
vector borne diseases, namely, Malaria, Filaria, Kala-azar, Japanese Encephalitis
a.E.) and Dengue.

India 2005

370

ACCEPTORS OF FA_I.Y WELFARE METHODS

IN LAKH

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255.7

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2001-02

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Health and Family Welfare

371

The programme implementation is the responsibility of State governments,

local self-Governments and Union Territory Administrations. At the State
level, Director of Health Services and State Programme Officers are responsible
for programme planning, implementation, monitoring and evaluation besides
resource mobilisation. At the district level, District Malaria Officer is responsible
and at the PHC level and below, the programme is implemented through
primary health care system.
MALARIA

Malaria is an acute parasitic illness caused by Plasmodium falcjparu!Jl_Q!_

Plasmodium vivax. Mosquitoes, transmit malaria in India. The main clinical
presentation is fever with chills, nausea and headache. The diagnosis is
confirmed by microscopic examination of a blood sample. Majority of the
patients recover from the acute episode within a few days following treatment.
If treatment is not available in time, the conditions of the patient with
P. falciparum can deteriorate rapidly. At the time of independence, there were
an estimated 75 million malaria cases and 0.8 million deaths annually. The
Government launched the National Malaria Control Programme (NMCP) in
1953. DDT spraying resulted in a sharp decline in malaria. In 1958, NMCP
was converted to the National Malaria Eradication Programme (NMEP). The
strategy was highly successful and the cases were reduced to about one lakh
and deaths due to malaria were eliminated by 1965-66. However, financial
and administrative constraints led to countrywide increase in the number of
cases.
In 1977 the Modified Plan of Operation (MPO) was laWlched with the
immediate objective to prevent deaths and to reduce morbidity due to malaria.
The programme was integrated with primary health care delivery system. The
blanket approach of insecticidal spraying was changed to selective indoor
residual spray by stratifying areas based on cases per 1,000 population in a
Yl'ar, i.e., the Annual Parasite Incidence (API) of two and above. The cases
were reduced subsequently from 6.47 million to around 2.5 to three million
cases annually till 1996. Since 1997, a declining trend has been recorded. API
declined to less than two for the first time in 2002.
The areas vulnerable to malaria are largely tribal, difficult, remote,
forested and forest fringe in accessible areas with operational difficulties. The
high transmission areas are the North Eastern States and largely tribal areas
of Andhra Pradesh, Chhattisgarh, Gujarat, Iharkhand, Madhya Pradesh,
Maharashtra, Orissa and Rajasthan.
The State governments are responsible for planning, implementation and
monitoring of the programme. The North Eastern states are being provided
cent per cent support for programme implementation including operational
costs. Additional support for control of malaria in 100 districts, predominantly
inhabited by tribals in eight states is being provided under the Enhanced
Malaria Control Project (EMCP) with World Bank Assistance.

India 2005

372

Since the EMCP in 1997 - the reported malaria cases in the country have
declined to ] .65 million in 2003, as against over 2.66 million cases reported
in the year ] 997, a decline of 38 per cent in the reported cases. The number
of Pf cases have also declined from 1.04 million in 1997 to 0.7 million in 2003,
a decline of 33 per cent. However out of a total of 0.7 million Pf cases reported
in 2003, 0.52 million (74 per cent) are from the areas which are covered under
EMCP. While NE states comprise only four per cent of the country's
population, eight per cent of malaria, seven per cent of Pf cases and 16 per
cent death due to malaria are recorded in this part of the country.
FILARIA

Lymphatic Filariasis is a serious ~ebilit~!i!!S and incapadtat~llg d~ase. The

transmission of filaria is through',ElOsquitoes, pamely, CuJe~...,quinqu~tus.
The infected person may develop swelling of limbs and gerut~ch keep
on increasing, making the person incapacihited. The person also suffers from
frequent attacks of Iyrn!l_.? ngi tis, hig_h_ft;y.~r, swelling anc!_p~in. There is no
cure for this stage and person is (orced to live Willi-'huge swellings prone
to secondary infections. This disease has been reported from over 250 districts
in 20 States and UTs wherein over 450 million people live.
The National Filaria Control Programme is being implemented since
]955. At present, about 51.71 million urban population is being protected
through recurrent anti-larval measures by 206 control units and 199 filaria
clinics. Delimitation of the problem is being done by 27 filaria survey units.
A pilot project on single dose annual mass DEC drug administration was
undertaken during 1997 in 13 districts of seven endemic states, covering a
population of about 41 million. By 2003, 31 districts have been brought under
Mass Drug Administration. The National Health Policy (2002) has envisaged
the goal of Lymphatic Filariasis Elimination by the year 2015. In 2004, 201
endemic districts were included for single dose annual Mass Drug
Administration with DEC covering a population of approximately 406 million.
DENGUE FEVERIDENGUE HAEMORRHAGIC FEVER

Dengue fever is a viral dis~e, which is transmitted by ..1edes aegJ41li

mosquitoes. Aedes mosquitoes breed in clean water in man made containers
such as water coolers, used tyres, disposable cups, flower vases and other
water storagl' containers. The first out break of Dengue fever /DHF was
reported from Calcutta in 1963. All the four~ of dengue
prevalent
in India. Dengue viral infection may remain asymptomatic Dr manifest either
as undifferent!!t..t~d fcl2.ri!.~_jJlness (viral syilarome), Dengue Fever (OF) or
Den~e Haemorrhagic Fever (DHF).

are

During 2003, 12,754 cases and 215 deaths were reported from the
country. However, there was an outbreak of dengue fever in Kerala with 3,546
cases and 68 deaths during the year 2003. Rs 3.50 crore were released to
affected states during 2003-04 for training and lEC activities.
JAPANESE ENCEPHALITIS

Japanese Encephalitis GE) is an acute viral jIlrwss with high case fatality and

c:::::

Health and Family Welfare

373

long-term complications. The vector breeds in large paddy fields and similar
large water bodies. The vector is an outdoor rester and feeder. This habit of
vecto':, mosquito makes the control strategy difficult. JE has acquired serious
magnitude in the states of Andhra Pradesh. West Bengal, Assam, Tamil Nadu,
Karnataka, Kerala, Bihar, Goa, Haryana and Uttar Pradesh. During 2003, 2,241
cases and 670 deaths were reported. For training and IEC activities Rs 56 lakh
were released to the affected states. An indigenous vaccine was developed
by Central Research Institute (CRl), Kasauij which has been found to be
effective, but its production is limited.
KALA-AZAR

Kala-azar is a parasi~isease caused by Leishmania donovani transmitted

by sandflies Phlebotomus argentipes. The disease iSF;re;;ie-nt among socioeCohomically p(lorer secttOriS'"of the society living in rural areas. The infected
person suffers from recurrent fever, loss of appetite, loss of weight and
progressive enlargement of spleen. The disease is chronic and if not treated,
it leads to death. Kala-azar is endemic in Bihar, Jharkhand, West Bengal and
parts of Uttar Pradesh. The Central Government initiated Kala-azar Control
Programme from 1990-91 incorporating assistance like procurement of
insecticides and anti-leishmanial drugs. National Health Policy 2002 has
envisaged the goal of Kala-azar elimination by the year 2010. A sum of
Rs 7.61 crore was released as cash assistance to Kala-azar endemic states
during 2003-04. During 2003, 18,214 cases and 210 deaths were reported. In
2004 upto May, 5,575 cases and 32 deaths have been reported.
TUBERCULOSIS

TB is a serious public health problem in India. India accounts for nearly onethird of the global TB burden. Every year there are approximately 18 lakh
new cases in the country of which approximately 8 lakh are new smear
positive and highly infectious. Each s~utum eositive case if not treated infects
10-15 persons in a year. Two persons ie from TB in India every three minutes
and over 1,000 people every day.
National Tuberculosis Control Programme (NTCP) was launched in the
country in 1962. Since, the Programme did not make any significant
epidemiological impact in its three decades of implementation, it was
reviewed by an Expert Committee in 1992. Based on the findings and
recommendations the Government evolved a revised strategy with the
objective of curing at least 85 per cent of new sputum positive patients and
detecting at least 70 per cent of such patients. Revised National TB Control
Programme (RNTCP) using DOTS strategy was launched on 26 March 1997
and is being implemented in the country in a phased manner with assistance
from World Bank, DANIDA, DFID, USAID, GOF and GFATM.
Currently, about 886 million population in more than 500 districts/units
are implementing RNTCP. Overall performance of the RNTCP has been
excellent with cure / treatment completion rate consistently above 84 per cent
and death rate reduced to less than. five per cent. Ninety per cent of the new

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India 2005

smear-positive cases detected are being put under DOTS. Till date, the RNTCP
has placed more than 31,00,000 patients on treatment, averting more than 5.6
lakh deaths. Every month, over 80,000 patients are placed on treatment. In
2003 alone, India placed more than 9.06 lakh cases on DOTS, more than any
other country in a single year in the world. The aim is to bring the entire
country under RNTCP coverage by 2005 in order to meet the global target
of TB control.
LEPROSY
The National Leprosy Control Programme was launched by the Government
in 1955. It was re-designated as the National Leprosy Eradication Programme
(NLEP) in 1983. The Programme was expanded with World Bank assistance
from 1993-94 to September 2000 as the first National Leprosy Elimination
Project. The second phase of NLEP was started from 1 April 2001 for a period
of three years with the objective of eliminating leprosy by 2005, thereby
fl)ducing the case load to less than 1/10,000 population. In the second phase
NLEP has been decentralised to States/ districts and Leprosy Services have
been integrated with General Health CaTe System. Free ~l!Jtj-Drug Therapy
(MDT) is available at all sub-centres, PHCs and Government Hospitals and
Dispensaries on all working days. Anti-leprosy drugs are provided free to all
States / UTs. State Leprosy Societies have been formed in 27 major states for
overall planning, implementation and monitoring of NLEP. 590 District
Leprosy Societies have been created to provide free MDT Services in all the
districts of the country.
Four nation-wide Modified Leprosy Elimination Campaigns (MLEC)
haVE:' been conducted from 1998 to 2003 to create mass community awareness
about leprosy and to undertake leprosy case detection drive with prompt
MDT, during which more than 9.3 lakh leprosy cases were detected and
treated with MDT. The Fifth MLEC was implemented in the eight priority
States of Bihar, Jharkhand, Orissa, West Bengal, Chhattisgarh, Uttar Pradesh,
Maharashtra and Andhra Pradesh in the year 2003-04. During the campaign,
48,500 new cases (ProviSional) of leprosy were detected and put under MDT.
. 111e prevalence rate of leprosy has been reduced from 57.6 per 10,000
population in 1981 to 2.44 per 10,000 population by March 2004. Ttll March
2004, 17 States/UTs have reached the level of leprosy elimination.

BLINDNESS CONTROL
The National Programme for Control of Blindness (NPCB) was launched in
the year 1976. Development of eye care infrastructure has been one of the
important initiatives under the programme. At the tertiary level of the
programme there are 11 Regional Institutes of Ophthalmology including the
apex Institute, Dr. R.P. Centre for Ophthalmic Sciences, AIIMS, New Delhi.
In addition, 82 medical colleges have been upgraded. At the secondary level,
445 district hospitals have been equipped for ophthalmic services. 307 new
eye wards and Operation Theatres (OTs) have been constructed under the
World Bank Assisted Cataract Blindness Control Project. More than 1;400 Eye

Health and Family Welfare

375

Surgeons have been trained in IOL implantation. At the primary level, 5,633
Primary Health Centres have been upgraded by providing ophthalmic
equipments and posting ophthalmic assistants. District Blindness Control
Societies (DBCSs) have been set up in all States. At present 580 District
Blindness Control Societies are functioning.
The services provided under the programme include free cataract
surgery including IOL implantation. Detection and correction of refractive
errors in children and collection and utilisation of donated eyes for treatment
of Corneal Blindness are other important activities of the programme. There
has been gradual increase in cataract operations performed in the country
from 12 lakh in 1991-92 to 40 lakh in 2003-04. There has been significant rise
in perC'f'ntage of Intra-Ocular Lens (lOL) impJ.mtatian.un
NATIONAL AIDS CONTROL ORGANISATION
The Government is implementing a comprehensive National AIDS Control
Programme throughout the country. The Programme implementation has been
completely decentralised to States / VTs. The second phase of the programme
was launched in April 1999 with the objectives: (i) to reduce the spread of
IIlV infection; and (ii) to strengthen the capacity of Central/State Governments
to respond to HIV / AIDS on a long-term basis. All States and UTs have
constituted State AIDS Control Societies, and the Central Government is
providing through the National AIDS Control Organisation (NA~ technical,
managerial and financial resources to State AIDS Control Societies for the
implementation of the programme components.
The total number of estimated HIV infections among adult population
based on nationwide sentinel surveillance data collected in the years 1998,
1999, 2000 and 2002 reveals that there is no dramatic upsurge in the spread
of HN infection across the country. It was 3.5 million in 2000 and 3.97 million
in 2001 and 4.58 million in 2002 and 4.91 million in 2003.
SEXUALLY TRANSMITTED DISEASES
The control of Sexually Transmitted Diseases (STDs) is an integral component
of the national AIDS Control Programme since 1992 and has two objectives:
(i) To reduce the prevalence of STDs; and (ii) To prevent short-term and long.
term morbidity and mortality due to STDs.
NACO has established 735 STD Clinics till 31 March 2004 with one STD
Clinic in each district of every state. Each STD clinic has one STD specialist
or a doctor fully trained to manage 5TDs and is equipped with laboratory
support for the diagnosis and treatment of 5TDs. NACO ensures a continual,
adequate supply of STD drugs. For early diagnosis and treatment of STDs
among women, support is being given to Obstetrics and Gynaecology clinics
of district hospitals. At the sub-district level, where laboratory facilities are
not available, NACO promotes the WHO approved Syndromic Approach for
the management of S1Ds.

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India 2005

IODINE DEFICIENCY DISORDERS

Iodine is an essential micronutrient with an average daily requirement of
100-150 micrograms for normal human growth and development. Deficiency
of Iodine may cause goitre and other Iodine Deficiency Disorders (1008).
Results of sample surveys conducted in 316 districts in 35 States/UTs, have
revealed that 256 districts are endemic with more than 10 per cent prevalance
of IDDs. It is also estimated that more than 71 million persons are suffering
from goitre and other Iodine Deficiency Disorders.
The government launched the National Goitre Control Programme
(NGCP) in 1962 with focus on provision of Iodated salt to identified endemic
areas. In 1984 the Government decided to iodise the entire edible salt in the
country by 1992 in a phased manner. The annual production of Iodated salt
is about 46 lakh MT. The NGCP was redesignated as National Iodine
Deficiency Disease Control Programme (NIDDCP) in 1992 to emphasise the
importance of spectrum of the IDDs. So far 32 States/UTs. have completely
banned the sale of salt other than Iodated salt for edible purposes, while there
is a partial ban in one State.
NATIONAL MENTAL HEALTH PROGRAMME
The National Mental Health Programme was started in 1982 for providing
community based mental health care using the existing public health
infrastructure. Tht' WHO report on Global Burden of Diseases has projected
mental illness to be the fourth major cause of morbidity. In a meta analysis
of epidemiological studies in India the prevalence rate of mental and
behavioural disorders for urban sector is 80.6 per cent and rural sector 48.9
pt'r cent.
The District Mental Health Programml' is a centrally-sponsored scheme
launched in 1996 and involves extending psychiatric services at the community
level. The District Mental Health Programme is currently under implementation
in 27 districts covering 22 States and Union Territories in the country. The
National Mental Health Programme also includes strengthening of the medical
college department of psychiatry, modernisation of mental hospital, focusing
on IEC and public education, research and training. A sum of Rs 190 crore
has been earmarked for implementation of National Mental Health Programme
during the Tenth Five Year Plan period.
NATIONAL SURVEILLANCE PROGRAMME FOR COMMUNICABLE
DISEASES

The Government launched National Surveillance Programme for Communicable

Diseases (NSPCD) as a pilot project in 1997-98 with the overall goal of
improving health status of the people. NSPCD is being operated with the
objectives of strengthening the surveillance system of communicable diseases
and developing capabilities at state and district level to detect outbreaks early
and to avert morbidities and mortalities. It will also help to identify that
potential pathogens responsible for bio-terrorism.

Health and Family Welfare

377

The programme envisages capacity building at district, regional and state

levels by strengthening and utilising existing manpower and infrastructure
facilities through training, modernisation of office and laboratory equipment,
strengthening of linkages from peripheral to central levels for disease
surveillance, networking with state/regional and national institutions.
The state health authorities implement the programme through the
existing health infrastructure. The National Institute of Communicable Diseases
(NICD), Directorate General of Health Services, is the nodal agency for
monitoring and coordinating the programme at the central level. In 1997, a
pilot project was taken up in five districts for operational assessment of the
programme strategy. At present the programme is in operation in 101 districts
of all states/UTs.
A joint team of WHO and NICD assessed the programme implementation
during 1999-2000 in seven states. The assessment revealed that there is an
overall improvement in outbreak detection and response mechanism in the
programme districts. The Independent Appraisal of the programme was also
carried out in December 2003 and indicated the improvement in outbreak
response capabilities and laboratory support services in the project districts
through identified Rapid Response Teams. The programme activities are also
being reviewed regularly through review meeting-cum-orientation course for
the nodal officers. A sum of Rs 2.1 crore has bt..:.en released to 17 states as
grant-in-aid during 2003-04.
GUINEA WORM ERADICATION PROGRAMME

In 1983-84, the National Institute of Communicable Diseases (NICD), was

made the nodal agency by the Government for planning, coordinating,
guiding and evaluations Guinea Worm Eradication Programme (GWEP). In
1984, about 40,000 GW cases were reported in the then endemic states, viz.,
Andhra Pradesh, Gujarat, Kamataka, Madhya Pradesh, Maharashtra and
Rajasthan. The last guinea worm case was reported in July 1996 in Jodhpur
districta?f Rajasth!!l World I-le.i!UlLQrganisation certified India as guinea
worm lsease free country in Febru~ ~C!2Q:Jiowever, WHO recommended
routine surveillcmte ana lEt to be continued till global eradication of the
disease, which are being undertaken in all formerly guinea worm disease
E'ndemic states.
YAWS ERADICATION PROGRAMME

Yaws Eradication Programme (YEP) was launched as a centrally-sponsored

scheme in 1996-97 in Koraput district of Orissa, which was subsequently
expanded to cover all the 49 yaws endemic districts in ten states during the
Ninth plan period. The programme basically aims to reach the unreached
tribal areas of the country. The Nati~~~"~~titute of C()~~9l1>~~_.I?~se.ases
has been identified as the nodal agency roFlhe planning, monitoring and
evalua~"'p...mgrjlD.me. The Programme is unplem:ented by the endemic
State Health Directorates through the existing health care system. As a result
of YEP, the number of reported casetthas come down from 3,493 in 1998 to

378

India 2005

46 in 2003. During tenth plan period, a sum of Rs 4.5 crore has been allocated
under the YEP. Funds in the form of "Grant-in-aid" are being provided to
the states for operational costs to undertake active search, procurement of
drugs, development of IEC materials, reorientation training for medical
officers and health workers.
NATIONAL CANCER CONTROL PROGRAMME
It has been estimated that there are 20-25 lakh cases of cancer in the country
at any given point of time and about seven lakh new cases being detected
every year. As cancer has a high rate of mortality unless detected and treated
early, the emphasis is on prevention, early detection of cases and augmentation
of treatment fadlities. The National Cancer Control Programme (NCCP) has
been in operation from 1975 which was modified in 1984-85. Up till 200304 the following schemes were in operation under the NCCP: (i) Development
of RCC; (ii) Development of Oncology Wing in Medical Colleges; (ill) Setting
up of Cobalt Therapy Units; (iv) District Cancer Control Programme; and
(v) Health Education and Early Detection Activities. There are 20 Regional
Cancer Centres recognised under the Programme in different parts of the
country to provide specialised treatment and undertake research in the field
of Cancer. The scheme under NCCP is under revision based on the evaluation
of the programme.

~EDICAL

RELIEF AND SUPPLIES

HOSPITALS AND DISPENSARIES

As on 1 January 2001 and 2002, there were 15,622 and 15,393 allopathic
hospitals respectively. Total hospitals reduced from the year 2000 due to heavy
decrease in Madhya Pradesh figures and non-reporting by newly formed
States. As on 1 April 2002 there were 3,844 hospitals of Indian System of
Medicine and Homeopathy. The number of Community Health Centres as on
31 March 2001 were 3,043.
RURAL HEALTH INFRASTRUCTURE
In rural areas, services are provided through a network of integrated health
and family welfare delivery system. As on 31 March 2004 an extensive
network of 3,043 Community Health Centres, 22,842 Primary Health Centres
and 1,37,311 Sub-Centres were in existence to provide primary health care
at grass root level. Further 8,669 new Sub-Centres were sanctioned during
the year 2003-04. One Sub-Centre manned by one female and a male
multipurpose worker covers a population of 5,000 in plain areas and 3,000
in hilly, tribal and backward/ difficult terrain areas. One lady Health Visitor
supervises six Sub-Centres. One Primary Health Centre covers a population
of 30,000 in the plain areas and 20,000 in tribal and difficult terrain areas.
One Community Health Centre covers SO,OOO to 1,20,000 population. It has
30 indoor beds, well equipped laboratory and X-ray facility.
CENTRAL GOVERNMENT HEALTH SCHEME
The Central Government Health Scheme (CGHS) was started in 1954 with

Health and Family Welfare

379

the objective of providing comprehensive medical care facilities to the central

government employees and pensioners and to their families. Besides central
government employees, the scheme also provides services to the Members and
ex-Members of Parliament; Judges of Supreme Court and High Court (sitting
and retired); Freedom fighters; Employees of Autonomous bodies/SemiGovernment Organisations; Accredited Journalists and ex-Governors and
ex-Vice Presidents of India. The scheme was initially started in Delhi and later
extended to about 20 other cities also. In addition, employees of the
Accountant General of India are being provided CGHS coverage at
Bhubaneshwar and Ranchi. There are 244 Allopathic dispensaries for 10.41
lakh CGHS cardholders which translates into 44.57 lakh CGHS beneficiaries.
The CGHS facilities to the beneficiaries have also been provided under the
Indian Systems of Medicine and Homoeopathy through CGHS dispensaries/
units. There are 19 polyclinics, 65 laboratories and 17 dental units functioning
under CGHS.
The Government has already approved opening of new CGHS
dispensaries in the cities of Dehradun, Bhubaneswar and Ranchi. These would
bt:' made operational shortly.
The CGHS beneficiaries now have the option of availing specialised
treatment in a CGHS / Government recognised hospital of their choice after
a specialist / doctor of CGHS / Government hospital recommends the medical
procedure/test/investigation. A Memorandum of Agreement is also being
entered into by the government with each of the private hospitals recognised
under CGHS which inter-alia binds the hospitals not to charge CGHS
beneficiaries over and above the ceiling rates fixed by the government for
various medical procedures / tests / investigations.
EMERGENCY MEDICAL RELIEF

India with a wide range of topographic and climatic conditions has witnessed
various types of natural disasters. It is a major disaster prone country in the
Asia-Pacific region. During 2003, 41,408 villages in 234 districts in sixteen
states were affected by heavy rains, landslides and floods.
The Directorate General of Health Services, Ministry of Health and
Family Welfare, played a supportive role in terms of supplementation of
physical and logistics support to the states to coun.ter the effects of disasters
on health sector. Emergency Medical Relief Division of the Directorate
coordinate health relief activities. Contingency Plans for drought and flood
were circulated amongst all the States to keep them at the highest level of
preparedness. Central Medical Stores at Kamal, Mumbai, Chennai, Hyderabad,
Kolkata and Guwahati were kept in readiness to provide essential drugs and
other medical supplies to States as and when demanded. Central Research
Institute, Kasauli was also kept on alert to supply vaccines.

DRUGS
The Drugs and Cosmetics Act, 1940 regulates import, manufacture, sale and

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India 2005

distribution of Drugs and Cosmetics in the country. Under the Act import,
manufacture and sale of sub-standard, spurious, adulterated or misbranded
drugs are prohibited. The government is empowered to check the quality of
imported drugs, lay down regulatory measures and standards of drugs and
grant approval for the import or manufacture new drugs. The control over
the quality of drugs which are manufactured, sold and distributed in the
country, is exercised by State Government, Zona] offices of the Central Drugs
Standard Control Organisation (CDSCO) at Mumbai, Kolkata, Ghaziabad and
Chennai and sub-zonal office at Ahmedabad, Patna and Hyderabad maintain
clost' liaison with state organisation for enforcement of the provision of this
Act. CDSCO also arranges training programmes for personnel concerned with
drugs standard control. The Central Drugs Laboratory (CDL), Kolkata function
as the testing laboratory for imported drugs and analytical quality control of
drugs manufactured within the country. It is assisted by Central Indian
Pharmacopoeia Laboratory, Ghaziabad and Central Drug Testing Laboratory,
Chennai and Mumbai, Regional Drug Testing Laboratories at Guwahati, and
State Drugs Control authorities. CDL, Kolkata is the appellate laboratory
under the Drugs and Cosmetics Act to test samples of drugs sent to it by
Courts. Central Licensing Approval Authority (CLAA) at CDSCO, New Delhi
approves the licenses for blood banks, blood products, large volume parenterals,
sera and vaccines r-DNA products jOintly with the states licensing authOrity.
The Central and State Governments are advised on technical matters by the
Drugs Technical Advisory Board, a statutory body, constituted under the Act.
The Zonal Officers inspected either jointly with state Drug Control Authorities
or independently 1,104 drug manufacturing units, blood banks and approved
drug testing laboratories.
The J.P. Committee under the CDSCO brings out the Indian
Pharmacopoeia which lays down the National Standards for drugs and
formulations.
Total value of drugs improted and exported in the country are Rs 3,675
crore and Rs 7,750 crore respectively.
PREVENTION OF FOOD ADULTERATION PROGRAMME
The Ministry of Health and Family Welfare is responsible for ensuring safe
food to the consumers. Keeping this in view, a legislation called, "Prevention
of Food Adulteration (PFA) Act, 1954" has been enacted. The objective
envisaged in this legislation is to ensure pure and wholesome food to the
consumers and also to prevent fraud or deception. The Act has been amended
thrice, in 1964, 1976 and in 1986 with the objective of plugging the loopholes
and making the punishments more stringent and empowering consumers and
voluntary organisations to play more effective role in its implementation.
The subject of the Prevention of Food Adulteration is in the concurrent
list of the Constitution. However, in general, the enforcement of the Act is
down by the State/UT Governments. The Central Government primarily plays
an advisory role in its implementation besides carrying out various statutory
functions/ duties assigned to it under various provisions of the Act.

Health and Family Welfare

381

CODEX CONTACT POINT

The Ministry of Health and Family Welfare is designated as National Codex
Contact Point in India to examine and formulation India's views on agenda
for various meetings of odex A' entarius Commission, a joint venture of
FAa/WHO dealing wi International Foo Star;dards and its subsidiary
committees. The Ministry constituted a National Codex Committee (NCC) and
the committee further constituted 24 Shadow Committees for preparation and
finalisation of India's stand.
, Recently, Ministry of Health and Family Welfare (NCCP India) has
organised 36th session of Codex Committee on Pesticide Residues in New
Delhi in collaboration with Government of the Netherlands from 19-24 April
2004.

HARMONIZATION OF PFA WITH CODEX

After the signing of SPS and TBT Agreement for facilitating international trade
in food, it is desirable for all member countries to harmonize their country
food laws with that of Codex. Accordingly, the Ministry of Health and Family
Welfare published draft notifications on the following items: (i) Use of Food
Additives in Food Products; (ii) Fish and Fish Products; (iii) Fruits and
vegetable products; (iv) Milk and Milk products; (v) Oils and Fats; and (vi)
Sugar and Confectioneries.
ROLE OF STATEIUT GOVERNMENTS
Enforcement of the food laws rest primarily with State/UTs. The implementation
of the Act in most of the States is under the administrative control of the
Directorate of Health Services, whereas, in a few States, the implementation
is being combined with Drugs Administration under Joint Food and Drug
Administration.
The State Governments are also empowered to make rules laying down
and details of licensing conditions of food establishments/industries and
prescribing licence fees/ analysis fees. The provisions under PFA Rules have
been amended nearly 300 times and standards of 250 articles of food which
are of mass consumption have been prescribed. While making amendments,
standards formulated by Codex / technological development in the food
industry sector/dietary habits/nutritional status of India's population/social/
cultural practices are taken into consideration.

Role of Local Bodies : In most of the States, implementation of food laws

in corporation/ municipal areas restS with the Local Bodies who employ their
own food. inspectors. Licensing of food industries / establishments is also left
with them.
Food Laboratories: There are 72 food laboratories in the country at district/
regional or State level in addition to four Central food. laboratories. Almost
every State has got one or more laboratories depending upon its need. About

382

India 2005

12 of these laboratories are under the administrative control of the local bodies
whereas the remaining arc under the administrative control of the State
Government.
WORLD BANK ASSISTED CAPACITY BUILDING PROJECf ON FOOD
SAFETY
As trade in food commodities expands globally, food safety can no longer
be considered only a mere domestic issue. The agreements under the WTO
require the development of modem food control and safety programmes by
national Governments. The issue is not only relate to end product parameters
but also to process control.
The Project Objectives/Components are: (i) Enhance the capacities in
laboratories at the State and Central levels through infrastructure strengthening
and training of personnel to upgrade their skills. It is separately proposed
that only those labs be allowed to do statutory testing which are accredited
to NABL; (ii) Introduced CMP and HACCP in the medium and small-scale
food processing operations and upgrade facilities in the laboratories including
testing for microbiological contamination; (iii) Create greater awareness of
food safety and hygiene in small, cottage and unorganised sectors including
the street food sector through training; (iv) Develop a system of continuous
survey of households to get client perceptions which will provide substantive
inputs for policy development and programme improvements; and (v) Setting
up of Management Information System and electronic linkages between
Central and State offices and Central and State labs to ensure better
monitoring and data collection.
The five year project is estimated to cost Rs 233.82 crore including
physical and price contingencies. The Project became operational from 17
October 2003.
VACCINE PRODUCfION
The vaccine production has a long history in the country. It started in the
Public Sector, Haffkine Institute in 1899, Central Research Institute, Kasauli
in 1905, Pasteur Institute of India, Coonoor in 1907. Three institutes used to
produce vaccine against Cholera, Plague, Rabies. The Vaccine Production got
a boost after introduction of the Expanded Programme on Immunisation in
the year 1978.
The production of all the vaccines except Oral Polio Vaccine (OPV) is
sufficient to meet the requirement of the Immunisation Programme in the
country. The OPV is presently imported in bulk, which is blended and
supplied to the programme. Vaccines are also manufactured for prevention
of various diseases like rabies, typhoid, yellow fever, Japanese encephalitis,
mumps, rubella and hepatitis. Even vaccines viz., DPI group, MMR group,
Td and Hepatitis-B are being exported. The National Control Laboratory i.e.,
:) Central Drug Testing Laboratory at Kasauli is accredited by WHO for testing
and. pre-release certification of vaccines.

HealiQ and Family Welfare

383

To assess and monitor the status and quality of vaccine production, a

Vaccine Production Board was constituted in 1976 (reconstituted in 2000).
Quality control of vaccines is exercised under the Drugs and Cosmetic Act,
1945. Under the Act, the manufacturers are xequired to comply with various
conditions laid down in the manufacturing ticense. Five consecutive batches
of each vaccine are to be cleared by National Control Laboratory situated at
Central Research Institute, Kasauli before they are released for use. A National
InstituJe ..of Jiilogicals is being set-up at Noida to provide a National level
quality centre for biological products of international quality in the country.
NUTRITION

The Nutrition Cell in the DGHS provides technical advice on all matters
related to policy making, programme implementation, monitoring and
evaluation, training content for different levels of medical and para-medical
workers. It takes up technical scrutiny of standards and labels for food,
proposals, project evaluation, review of research project, etc.
The Cell plays an active role in coordination of various activities under
the Pilot Project on Programme against Micronutrient Deficiencies, which is
being implemented by All India Institute of Hygiene and Public Health,
Kolkata in one district each of six states. The Cell also undertakes Nutrition
related research and IEC studies / surveys through its feasibility Unit. In
addition, the formulation, fixation and technical guidance for the diets in
Government hospitals also are taken up. The Nutrition Cell also coordinates
activities of State Nutrition Division located in 17 States/UTs.
MEDICAL COUNCIL OF INDIA
The Medical Council of India (MCI) was established as a statutory body under
the provisions of the Indian Medical Council Act, 1933 which was later
repealed by the Indian Medical Council Act, 1956 with minor amendments
in 1958. A major amendment in the I.M.e. Act 1956 was made in 1993 making
it mandatory for obtaining approval of Ministry of Health and Family Welfare
for opening new medical colleges/increase of seats, starting of new courses
in order to regulate the standard of medical education in the country. The
I.M.e. Act 1956 was further amended in 2001 to enable the Medical Council
of India to conduct Screening Test for Indian nationals holding foreign medical
qualifications to test their skill before granting the~ registration to practice
medicine in India. Through the same Amendment Act, it has been made
mandatory for Indian students desirous of taking admission in an under
graduate medical course at an Institute abroad to obtain an Eligibility
Certificate from the MO stating that he / she conforms to the norms laid down
by MO for this purpose. The main functiolU! of the Council are maintenance
of uniform standard of medical education both at the undergraduate and the
postgraduate levels; maintenance of Indian Medical Register; reciprocity with
foreign countries in the matter of mutual recognition of medical qualifications;
continuing medical education and granting of provisional! permanent
registration of doctors with recognised medical qualifications, registration of

384

India 2005

additional qualifications and issue of Good Standing Certificate for doctors

going abroad to commonwealth countries. At present there are 229 medicaJ
colleges in the country out of which 165 medical colleges have been recognised
by MCI and 64 new medical colleges have been permitted by the Central
Government to conduct MUBS course. The admission capacity in these colleges
is approximately 25,500 students per year.
CENTRAL HEALTH EDUCATION BUREAU
The Government as per the recommendation of the~hore Committecland on
the decision of thl' Planning Commission established Central Health Education
Bureau (CHEB) in the year 1956 as a nodal agency under the Directorate
General of Health Services. It looks after the health promotion and health
eduction activity in the country. Similar organisations were also set up at the
state level as the State Health Education Bureau.
The CHEB has been actively working on health education/promotion
activity with the cooperation of the State Health Education Bureau/State
Institute of Health and Family Welfare of different States and Union
Territories. The health education activity of CHEB used to cover the entire
health and family welfare programmes until establishment of separate IEC
division in the Department of Family Welfare and NACO.
RASHTRIYA AROGYA NIDHI
Rashtriya Arogya Nidhi (RAN) previously known as National illness Assistance
fund (NIAF) was set up under the Ministry of Health and Family Welfare
in 1997 with an initial contribution of rupees Five crore. Funds have also been
set up in 17 States. These States/Union Territories have been released grantin-aid as admissible under the Scheme. Other States have been requested to
set up the Fund. All five Union Territories (without Legislature) have also
set up this fund. Medical Superintendents of three Central Government
Hospitals and three Institutes of national repute, viz., Dr. RML Hospital,
Safdarjung Hospital, LHMC Hospital, Smt. S K Hospital, AIIMS, all in New
Delhi; PGIMER, Chandigarh and JIPMER, Pondicherry have been sanctioned
funds from Rashtriya Arogya Nidhi to provide immediate financial assistance
up to Rs 50,000 per case to patients living below the poverty line. This scheme
was subsequently extended to NIMHANS, Bangalore, CNCI, Kolkata,
SGPPGIMS, Lucknow, Gandhi Memorial Hospital and KGMC, Lucknow and
CIP, Ranchi, which have also been given similar advances. These funds are
replenished from time to time.
EMERGENCY FACILITIES ON NATIONAL HIGHWAYS
Under the Pilot Project for upgradation and strengthening of emergency
facilities of State Hospitals of towns/ cities located on National Highways, the
Government provides financial assistance to the maximum of Rs 1.50 crore
or actual requirement of the hospitals, whichever is less to augment and
upgrade the Accident and Emergency Services in selected State Government
hospitals which fall in most accident prone areas of National Highways. The

Health and Family Welfare

385

aim of the scheme has been to augment the Accident and Emergency Services
by release of grants-in-aid to State Governments for : (i) Purchase of well
equipped ambulance and basic essential equipments required for Accident and
Trauma Services; (ii) Communication system; (iii) Infrastructure (Blood Bank,
Examination Room, Resuscitation, ICU and Bum beds (7), X-Ray Room,
Reception, Control, Minor (OT); and (iv) Beds and Equipment.
NATIONAL ACADEMY OF MEDICAL SCIENCES
The National Academy of Medical Sciences (NAMS), New Delhi was
established in 1961 with the objective of promoting the growth of medical
sciences. It recognises talent and merit throughout the country in the form
of election of Fellows and Members of the Academy. To keep medical
professionals abreast with fewer / current medical problems of the country and
to update their knowledge for better delivery of medical education, patient
care and health care at large, a programme of Continuing Medical Education
(CME) is being implemented by the Academy since 1982. As on 31 August
2004, the NAMS has on its rolls eight honorary Fellows, 713 Fellows and 3,157
Members.
PHARMACY COUNCIL OF INDIA

(1(" 'I)

The Pharmacy Council of India was constituted under the Pharmacy Act, 1948.
It is responsible for regulation and maintenance of uniform standard of
training of pharmaciSts. It also prescribes syllabi and regulations for diploma
courses in pharmacy and registration of pharmacists. At present, there are 358
approved institutions imparting diploma in Pharmacy to 21,200 students per
year and 212 approved institutions offering Degree in Pharmacy to 11,670
students per year. About 5.59 lakh Pharmacists are registered with various
State Pharmacy Councils.
INDIAN NURSING COUNCIL

(1/Jcl

Indian Nursing Council is a statutory body constituted under the Indian

NurSing Council Act, 1947. The Council is responsible for regulation and
maintenance of uniform standards of training for Nurses, Midwives, Auxiliary
Nurse, Midwives and Health Visitors. The Council prescribes the syllabi and
regulations for various Nursing Courses. At present 774 general Nursing and
Midwifery Schools; 250 Auxiliary Nurse Midwifery. Schools, 268 Colleges of
Nursing for conducting graduation Courses and 42 Colleges for conducting
Post Graduate Courses in Nursing are functioning in the country. On an
average 15 to 20 thousand Nurses and 10 to 12 thousand Auxiliary Nurse
Midwives qualify ever year. So far, 8,39,862 Nurses and 5,02,503 Auxiliary
Nurse Midwives have been registered with various State Nursing Councils
up to 31 March 2003.

DENTAL COUNOL OF INDIA

The Dental Council of India is a statutory body established under the Dentists
Act, 1948 with the prime objective of regulating dental education, profession

386

India 2005

and its ethics in the country. It periodically carries out inspection.... of dental
institutions to ascertain the adequacy of teaching facilities. 185 dental colleges
are functioning in the country with an annual intake capacity of about 13,240
students in the 80s Courses during the academic session 2004-05. The total
number of registered dentists as on 31 December is 55,058.

\' FAMILY WELFARE

~
The Census of India, 2001 indicates the population of India on 1 March 2001
as 1,027 million-male 531 million and female 496 million. Viewed globally,
India constitut~per cent of the world population, in the 2.4 per cent
of the global land area. A look at the census figures of the last four decades
indicates a perceptible decline in recent years, in the growth rate of the
population:
GROwrn OF POPULATION IN INDIA
Census
Year

Decadal Growth
Per cent

Average Exponential
Growth
(per cent )

24.80

2.20

197]
19B1
199]

24.66

2.22

23.B6

2.14

2001

21.34

1.93

As per Census-2001 Report, the growth in indices of GOP and food

production has been more than the growth in population.
In 1952, India was the first country globally to launch a national
programme, emphaSising fertility regulation to the extent necessary for
reducing birth rate "to stabilize the population at a level consistent with
the requirement of national economy". Half a century after formulating
the National Family Welfare programme, India's demographic indicators
are :
INDIA'S DEMOGRAPHIC PROGRESS
Parameter

1951

1981

1991

Current Level

Crude Birth Rate

40.8

33.9
(SRS)

29.5
(SRS)

25.00

12.5
(SRS)

9.8(SRS)

B.1.

(per 1,000 population)

Crude Death Rate

(per 1,000 population)

25.1

(SRS 20(2)

(SRS 20(2)

Total Fertility Rate

(per woman on average)

6.0

4.5
(SRS)

3.6(SRS)

3.2
(SRS 1999)

Maternal Mortality Rate

(per 1.00,000 live births)

437
(1992-93)

NA.

N.A.

407

Infant Mortality Rate

(per 1,000 live births)

146

(1998)

110
(SRS)

8W
(SRS)

630
(SRS 2002)

Health and Family Welfare

Couple protection Rate
(per cent)

387
10.4
(1971)

22.8

44.1

48.2 (NFHS-ll)
(1998-99)

Lifl' Expectancy at
Birth years (M)

37.2

54.1

60.6

63.871

Life Expectancy at
Birth years(F)

36.2

_.-/

(2001-06)

Excludes Jammu and Kashmir # Projected

54.7

@ :

61.7
(199]-96)

66.91#
(2001-06)

Provisional.

SRS - Sample Registration System of Office of the Registrar General India.

As per Sample Registration System-l999, the total fertility rate in eight

states and union territories, namely, Kerala, Tamil Nadu, Delhi, Goa, Nagaland,
_Mdaman and Nicobar Islands, Chandigarh and Pondicherry, accounting for
t!1)per cent of the country's population have already achieved replacement
levels of fertility, i.e., a Total Fertility Rate (TFR) 2.1. Twelve states and union
territories, viz., Andhra Pradesh, Kamataka, Maharashtra, Orissa, Punjab,
West Bengal, Himachal Pradesh, Arunachal Pradesh, Manipur, Sikkim, Daman
and Diu, Lakshadweep, whose TFR is in the range of 2.4 to 2.8 are making
steady progress towards achieving replacement levels of fertility. The overall
picture of classification of major and minor states with range of TFR is given
in the table below:
TOTAL FERTILITY RATE
Range of TFR

No. of States with

more than 20
million population

Less than 2.1

No. of Other States and

Union Territories with
a population of less
than 20 million

Percentage
of Population
covered

11.0
41.6
13.1

2.2 to 3.0

(,

3.1 to 4.0

4.1 to 4.7

33.2

No data

1.1

However, there are four states, i.e., Bihar, M~dh

a Pradesh, Rajasthan
. per cent of the total
" and Uttar Pradesh, which currently constitute nearl
I, .. ' population need significant improvement, as evide
m the table below.
,t Demographic outcomes in these states would determine the timing and size
\. of the population at which India achieves population stabilization.

MAJOR STATES WITH tflGHER FERTILlTY

States

Bihar

Madhya Prade&h ~
Rajasthan

Proportion of Population
(2001 census)
8.1%
5.9%
5.5%

TFR 1999
(SRS)

4.5
3.9
U

India 2005

388
Uttar Pradesh

16.2%

Total

35.6%

4.7

Figures pertain to undivided States

~

COMMUNITY NEEDS ASSESSMENT APPROACH

From 1 April 1996 the Family Welfare Programme ill being implemented all
over India on the basis of target-free approach. This Community Needs
Assessment Approach envisages replacement of the system of setting targets
from the top by a system of decentralised participatory approach at the
grassroots level. This approach involves close association of Community and
its leading lights and opinion leaders such as Village Pradharzs, Mahila
Swasthya Sanghs, and Primary School Teachers, etc., to facilitate deciding the
needs of the Family Welfare Services of the next year.

Strategy for Population Stabilisation Programme in 210 High Fertility

Districts : The Department of Family Welfare has identified clusters of 210
high fertility districts concentrated in the five Empowered Action Group
(EAGl._5btes of Bihar, U.P., M.P., Rajasthan and Jharkhand, for launching a
~d Population Control Programme, to replicate the success of southern
States in family planning in these districts. The Thrust Areas in the CMP
districts would be family planning,. immunisation and safe delivery. Since
additional funds have not been sanctioned by the Planning Commission for
the initiative, the Department of Family Welfare will mobilise funds under
existing schemes to strengthen the Family Planning Programme for these
districts during the current year. However, additional funding would be
required for the remaining period of the Tenth Plan. The strategy for these
districts would include a detailed Action Plan, including mapping of villages
and hamlets, so as to assure access to affordable health services through
existing public sector health facilities and accredited private/NGO providers.
Detailed CMP Manuals on Family Planning and Immunisation are being
prepared for dissemination to the District Collectors, which shall also be
discussed at National/Regional Workshops. It is aimed to provide a Flexible
Fund to the District Administration to address unmet needs for family
planning in the districts. The Department of Family Welfare is also offering
technical support to these districts for strengthening Programme Management
Units at State and district levels for improved programme management,
especially for the Family Planning and the Immunisation Programme through
contractual engagement of professionals like MBAs, CAs, MIS Experts, etc.
Personal communication channels are being set up with the States and District
Collectors through the NICNET and video conferencmg. A massive IEC
campaign is proposed to be launched for mass media publicity and generating
support of all stakeholders for the programme.
Health Insurance for Poor: A Joint Committee of the Ministry of Health
and Family Welfare and the Ministry of Finance is being set up to examine
the various possibilities of extending Health Insurance cover to poor
families.

Health and Family Welfare

389

Immunisation Programme : The District Household Survey conducted in

2002-03 reveal" and 211 out of 258 surveyed districts had full immunisation
levels below 75 peT cent. The Department of Family Welfare has prepared
a strategic framework for the Multi Year Plan (MYP) on Immunisation, which
aims to increase accessibility,avaiilibiIitY anacoverag(! of quality and reliable
immunisation services, besides increasing demand for such services. New
initiatives like use of Auto Disable (AD) Syringe, mobility support to district
for immunisation, improvmg mobilisation of children through convergence
with Anganwadi Worker, and organising sessions in urban slums and underserved areas through outsourcing the activity, are also being introduced.
Strengthening Primary Healthcare: Despite an impressive rural primary
healthcare infrastructure, it is a fact that public healthcare infrastructure is
prescmly catering to only 20 per cent of all healthcare needs of the population.
There are multiple challenges in improving access to primary healthcare,
including mobilising of resources, improving accountability of health providers
and better programme management. It should be possible to revise the
allocations for primary health institutions through expansion in health
expenditure to two per cent of CDP by 2009-10. The Department of Family
Welfare is planning to improve access to the primary healthcare in rural underserved areas and urban slums, both through revamping of the public
healthcare infrastructure and activation of Public-Private Partnerships during
the Phase-II of the Reproductive and Child Health (RCH) Programme due
to be launched in April 2005. The RCH-II aims at assessing success of the
various interventions by way of performance outcomes for vulnerable
population groups, for which specific performance indicators are being
developed.
Initiatives for Improved Healthcare to the Poor : Attempts are being made
to improve levels of institutional delivery through the proposed /anani
Suraksha Yojana. Funds have also been released to the eight demographically
weaker States of UP, MP, Bihar, Jharkhand, Uttaranchal, Chhattisgarh, Orissa
and Rajasthan for operationalisation of at least two FRUs per district during
the year to provide 24 hours delivery services. The Vande Matram .Yojana is
already operational for providing free ante and post natal care to women from
BPL families on a fixed day in a month through private sector. The access
to family planning services is being improved ~ugh the public-private
partnership initiative in the EAG States whereby accredited private/NGO
health facilities would provide quality family planning services at subsidised
rates, and free service to the BPL clients. Public-Private Partnership would
also include initiatives such as engagement of contractual medical and
paramedical staff like ANMs, Anesthetists, Lady Medical Officer, Lab
Technicians, etc., contracting out of clinical and non-clinical services in public
health facilities, especially among the under-utilised infrastructure; social
marketing of contraceptives; greater involvement of NGOs for training. lEC,
and delivery of services, etc.

390

India 2005

REPRODUCTIVE AND CHILD HEALTH PROGRAMME

The Reproductive and Child Health (RCH) Programme launched in 1997 is
currently operational in the entire country. The programme follows a differential
strategy (with districts as the basis) with inputs linked to the needs of the
area as well as capacity for implementation. It is the flagship programme of
Family Welfare, which combines the trinity of objectives, viz., reproductive
health, child survival and fertility regulations with a policy and programme
orientation markedly different from previous programmes.
The programme is mainly offered through Primary Health infrastructure.
The overall goals of the programme are to reduce maternal and infant
mortality and morbidiry and assure reproductive health and choice and
thereby contribute to stabilization of population. The programme is supported
by World Bank, European Commission, UNFPA, UNICEF and other bilateral
donors.
The programme was reviewed extensively not only in the context of
achievements during mid-term stage, but also in the context of National
Population Policy. Results of several surveys such as District Rapid Household
Survey, National Family Health Survey, etc., gave further impetus to critical
review of the performance and formulation of new schemes of RCH Camps,
Dais training, strengthening of RCH Outreach, etc. The excellent work of polio
immunisation programme was continued while effort to strengthen routine
immunisation continued. The next phase of RCH Programme is scheduled to
commence on 1 April 2005 keeping in view the approach and priorities of
the Tenth Plan. The Schemes of RCH Camp and Dai Training have been
appreciated by the rural and remote population for getting quality services
nearest to them.
The Phase-II of RCH is scheduled to commence on 1 April 2005. The
current financial year, i.e., 2004-05 is being treated as the preparatory phase
for building technical and institutional programme management capabilities
of the Central as well as State / UT Governments. The ensuing phase of the
programme envisages a paradigm shift in the manner in which the programme
has been planned and implemented. The main objective would be to bring
about a change in the three critical health indicators. Total Fertility Rate (TFR),
Infant Mortality Rate (IMR) and Maternal Mortality Rate (MMR) in consistent
with the goals enshrined in the National Population Policy 2000 and the Tenth
Five-Year Plan.
With the help of the Development Partners and in consultation with all
the States/UTs, the RCH Programme is currently being reformulated around
the following key principles: (i) Adoption of Sector-wise Approach, which
effectively extends the programmes reach beyond Reproductive and Child
Health for the entire Family Welfare sector; (ii) Building State ownership by
involving States/UTs from the outset in development of the programme;
(iii) Decentralisation through development of District and State level need
based plans; (iv) Flexible programing with a view to moving away.frQn\
prescriptive scheme based micro-planning and instead allowing States to

HeaWt and Family Welfare

391

develop need based Work plans with freedom to decide upon programme
inputs; (v) Capacity building at the District, State and the Central level to
ensure improved programme implementation. In particular, the emphasis
being on strengthening financial management systems and monitoring and
evaluation capabilities at different levels; (vi) Adoption of the Logical
framework as a programme management tool to support an outcome driven
approach; (vii) Performance Based funding to ensure adherence to programme
objectives, reward good performance and support weak performers through
enhanced technical assistance; (viii) Pool Financing by the Development
Partners to simplify and rationalise the process of assessing external assistance;
(ix) Convergence, both inter-sectoral as well as intra-sectoral to optimise
utilisation of resources as well as infrastructural facilities.

5'. . cc u......, e.d

d(>J:o-J

The Universal Immunisation Programme (UIP, was launched in 1985 to

reduce infant, child and maternal morbidi
nd mortality by protecting
against six-vaccine preventable diseases, viz., Tuberculosis, Diphtheria, Pertussis,
Tetanus, Polio, and Measles.
The immunisation coverage improved significantly between 1985-1990.
Thereafter, the coverage has been sustained for all the antigens between 85
per cent to 100 per cent. The RCH district survey shows a 70 per cent fall
in full immunisation coverage rates between 1998-99 and 2002-03.

An IDA assisted three-year project to improve routine lrnmunisation

Programme was launched on 31 January 2001. The total cost of the project
is Rs 1,118 crore including IDA credit of Rs 709.9 crore. The main component
of the project are: (a) Polio Eradication activities; (b) Strengthening of routine
immunisation services and (c) Development of medium term framework for
programme.
PULSE POLIO PROGRAMME~ r

~-

l' '1 ~

The National Technical Advisory Group on Immunisation (NTAGI) was

constituted on August 2001 to l'~ft-mategic framework on Immunisation.
Based on the recommendation of NTAGI, Multi year Strategic Plan document
has been prepared.
Significant progress has been made in eradication of poliomyelitis since
the adoption of supplemental immunisation activio/ (Pulse Polio Programme)
\, .~. Under this programme all children of 0-5 age are given two doses
'mOral Polio Vaccine (OPV) at an interval of six weeks. Around 16 crore
children have been given polio drops in every Pulse Polio Immunisation .
round. The polio cases have declined from 1,934 during 1998 to 268 in 2001.

In 2001, Polio eradication effort in India had a major set back due to
large-scale out break of poliomyelitis in Uttar Pradesh spilling over to other
States. However, due to intensive activities undertaken during late 2002 and
2003 traditional reservoir areas of polio virus have shown a significant decline
in 2003 and a total of 225 cases were reported during 2003. During 2004, till
21 August a total of 34 caSes have been detected (7 from Bihar, 20 from UP,

India 2005

392

one from Tamil Nadu, one from Karnataka, one from Delhi, one from Andhra
Pradesh, two from Maharashtra and one from West Bengal. India is committed
to obtaining polio-free certification by 2007.
HEPATlTIS-B PROJbCf
The Government has decided to introduce Hepatitis-B vaccine for infants
under the Universal Immunisation Programme (VIP) on a pilot basis. This
pilot project is being implemented in slum areas of 15 metropolitan cities
during 2(XJ2-03 and 33 districts during 2003-04. The pilot project is supported
by th~ Global Alliance for Vaccines and Immunisation (GAVI). The Prime
Minister introduced the pilot project in New Delhi on 10 June 2002. Coverage
of the new vaccine will be expanded during the Tenth Plan Period.
Project Strategy: (a) The project would be implemented in slum populations
of 15 ml'tropolitan cities (which are at high risk for Hepatitis-B) and 33
districts that have been evaluated to have a high coverage (more than 80 per
cent) with currently used vaccines; (b) The Pilot Project would be conducted
over a two-year period. The Hepatitis-B vaccine will be administered along
with the three doses of primary DrYf vaccination; (c) At the end of two years,
the experience in the first phase of introduction would be the basis of a longterm policy for expanding introduction of Hepatitis into the Universal
Immunisation Programme; and nationally; and (d) After this initial project,
the Government will consider to expand introduction of the Hepatitis-B
vaccine in additional cities and districts.
INTEGRATED MANAGEMENT OF NEONATAL AND CHILDHOOD
ILLNESSES
In the year 2000, the Government set-up an Adaptation Committee for the
Integrated Management of Childhood Illnesses (IMCI) programme which is
put forward by WHO. This was done because it was felt that the gains in
reduction of Infant Mortally Rate (IMR) were limited more to the reduction
of deaths in the 1-12 months age group, while the neonatal mortality rate
remained virtually stagnant.
The adapted version is the IMNCI. It seeks to offer a holistic approach
for management of the commonest causes of neonatal (Sepsis, low birth
weight prematurity) and childhood illnesses (Measles, Malaria, Pneumonia,
Diarrhoea), of which are compounded by malnutrition. It seeks to train the
grassroots level worker and incorporates health promotive, preventive and
curative measures. Training of all health care personnel is skill based.
Involvement of the community and its empowerment is crucial to the success
of IMNCI.
The programme will be implemented in RCH-ll in a phased manner in
250 districts initially and will be extended to the entire country by 2010.
Districts with high IMR will be selected first for implementation.
As RCH-ll is scheduled to start from April 2005, IMNCI, in the interior

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393

shall be implemented in four districts in the states of Orissa, Rajasthan, Tamil

Nadu and Gujarat.

TRAINING UNDER ReH

Availability of qualitative services to the community depends largely upon
the efficiency with which health functionaries discharge their responsibilities,
which, in tum would mainly depend upon their education and training.
Training Division envisages improving the skills of various categories of health
functionaries working in rural set-up, through pre-service and in-service
training to provide quality care to the community.
The major Training Activities: (a) Centrally-sponsored Schemes under
Domestic Budget: (i) Basic Training of Auxiliary Nurse Midwife (ANM)/Lady
Health Visitor (LHV); (ii) Basic Training of Multipurpose Health Worker
(Male)/MPHW (M); (iii) Maintenance and strengthening of Health and Family
Welfareaaining Centres, and (iv) Strengthening of Basic Training Schools.
(b) Training Programmes under External Aided fund : (i) Reproductive Child
Health (RCH), and (ii) Professional Development Course. (c) Training
Institution..<; under RCH programme are : (i) Gandhigram Institute of Rural
Health and Family Welfare Trust, Tamil Nadu; and (ii) Rural Health Training
Centre, Najafgarh, New Delhi.

MATERNAL HEALTH PROGRAMME

In the last decades, the life expectancy of the population in India has shown
remarkable improvement from 41 at birth in 1961 to the present day of 65
years. Yet, over a 1,00,000 women in India continue to die of pregnancy related
causes every year. The Maternal Mortality Rate in India is 407 per 1,00,000
live births (SRS, RGI 1998). The major causes of these deaths have been
identified as hemorrhage (both ante and post-partum), toxaemia (Hypertension
during pregnancy), anemia, obstructed labour, puerperal sepsis (infections
after delivery) and unsafe abortion.
The Maternal Health Progrdmme which is a component of the
Reproductive and Child Health Programme aims at reducing maternal
mortality to less than 100 by the 2010 through a number of interventions. They
are essential obstetric care which intends to provide the basic maternity
services to all pregnant women by en....uring early registration of pregnant
women, at least three antenatal check-ups for taking preventive and promotive
steps and to detect complications early for prompt action and at least three
post-natal check ups to monitor the post-natal recovery. The proviSion of
emergency obstetric care is through establishment of First Referral Units,
Institutional delivery is by providing round-the-clock delivery services in
PHCs / CHCs. The other interventions include provision of safe abortion
services, prevention and management of RTI/STI, holding of RCH Camps in
remote areas and training of Dais for clean and safe delivery.

JANANI SURAKSHA YOJANA

The National Maternity Benefit Scheme (NMBS) came into effect from

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India 2005

15 August ]995, aiming to provide maternal care in the form of better diet
to expectant mothers. This scheme provides financial assistance of Rs 500 per
birth for the first two births to all pregnant women who attained 19 years
of age and belonged to BPL households. This 100 per cent centrally assisted
scheme was transferred from the Ministry of Rural Development to the
Department of Family Welfare in the year 2001-02. As the scheme did not
provide any linkage of the benefits to antenatal check ups, care during
childbirth as also immediate post-partum period, there is no impact of the
Scheme in reducing maternal and infant mortality. This gave rise to the need
for modifying NMBS.
Janani Suraksha Yojana OSY) is proposed by way of modifying the
existing National Maternity Benefit Scheme (NMBS). It aims to provide an
integrated package of obstetric care services to expectant mothers throughout
her pregnancy period, including antenatal care, childbirth and immediate
post-partum period, through a coordinated medical care and delivery system.
Like NMBS, it would be 100 per cent Centrally-sponsored scheme, focusing
on both maternal and child health.
JSY will focus on increased institutional delivery in PHC/CHC/FRU and
any other identified health institutions in the private sector by women
belonging to the BPL groups, particularly in the low performing states, as their
access to health care system is severely limited.
VANDE MATRAM SCHEME
Maternal mortality in India is estimated to be 407 in 1998 (SRS-RGI). Most
of the maternal deaths are due to complications of pregnancy like haemorrhage,
anaemia, toxaemia, obstructed labour, unsafe abortions and post-portum
sepsis. These complications if identified and treated well in time, could save
the lives of these women.

Vande Matram Scheme which was launched on 9 February 2004 is a

major initiative in public-private partnership with the Federation of Obstetric
and Gynaecological Society of India (FOGSI). FOGSI have volunteered to
partiCipate in the national endeavour for reducing maternal mortality and
improving health of women particularly during pregnancy and child birth.
The scheme envisages provision of free outpatient services including antenatal
check-up to all pregnant women and family planning counselling to new
mothers regularly by the government and private doctors at their facilities
on a fixed date.
(FAMILY PLANNING METHODS
During the year 2003-04 the total number of family planning acceptors at all
India level is higher by 5.2 per cent than in the corresponding period of 200203. The performance figures for the year 2003-04 method-wise are: Sterilisation
- 48.74 lakh, IUD insertions - 60.79 lakh, Condom users - 178.31 lakh, and
Oral Pill users - 87.54 lakh.

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395

CONTRACEPTIVES
The National Family Welfare Programme provides the contraceptive services
for spacing births, viz., Condoms, Oral Contraceptive Pills, Intra-Uterine
Devices (IUD) and Emergency Contraceptives.
WhE'reas condoms and Oral Contraceptive Pills are being provided
through free distribution scheme and social marketing scheme, IUD is being
provided under free distribution scheme. Under Social Marketing Programme,
contraceptives both Condoms and Oral Contraceptive Pills are sold at
subsidised rates through a network of public and private organisation called
Social Marketing Organisations. In order to promote use of new version of
IUD (380-A) which provides safety for about ten years and its use can avoid
sterilisOltions, a scheme is underway to provide these IUDs through social
franchising of private clinics, etc., which maintain minimum standards for
providing services.
Emergency Contraceptive Pills have been introduced for the first time
under Family Welfare Programme in 2002-03. The emergency contraceptive
is the method that can be used to prevent unwanted pregnancy after an
unprotected act of sexual intercourse (including sexual assault, rape or sexual
coercion) or a contraceptive failure.
NO-SCALPEL VASECfOMY

The programme proposes to encourage men to take more responsibilities for

their sexual behaviour, increase men's access to reproductive health information
and services, help men to communicate with their partners and make
contraceptive choices together.
The programme will continue to popularise vasectomy service, which
began with No Scalpel Vasectomy (NSV) in the year 1998. Till March 2004,
479 NSV sessions have been held under the Project in the country. 2,89,340
acceptors have undergone No Scalpel Vasectomy operations and 1,410 doctors
have been trained in the technique of NSV. Out of these 1,410 doctors trained,
1,068 doctors have been certified as NSV Providers (to promote NSV services
to public), 53 doctors have been certified as NSV State Trainers and 60 Doctors
have been certified as District Trainers. These certified trainers are to take over
the training of other medical personnel in their respective States and Districts.
It will also ensure that the NSV trained manpower is available at the
peripheries. Ensuring the availability of NSV technique at the peripheral level
will help increase the acceptance of male sterilization in the country. The
percentage of male sterilisation has increased from 1.8 per cent in 1997 to 2.46
per cent in 2002 after the introduction of the project in 1998.

MEDICAL TERMINATION OF PREGNANCY

Unsafe abortion is one of the major causes of maternal mortality. According
to the SRS (RGI, 1998), 8.9 per cent of maternal deaths are due to unsafe
abortion, Medical Termination of Pregnancy Act, 1971, was enacted with the
objective to redllOe maternal morbidity and mortality due to unsafe abortions.

India 2005

396

Under this Act, termination of pregnancy can be done up to 20 weeks, if

pregnancy is likely to result in birth of congenitally malformed child or
continuation of pregnancy is likely to harm the mother in the existing
circumstances and in cases of rape and contraceptive failures. At present there
are 11,025 approved MTP centres in the country. The annual number of MTPs
reported is 6,16,404 for the year 2002-03. The Medical Termination of
Pregnancy Act, 1971 has been amended in 2002.
PROHIBITION OF PRE-CONCEPTION
DETERMINATION

AND

PRE-NATAL SEX

In order to check female foeticide, the Pre-Natal Diagnostic Techniques

(Regulation and Prevention of Misuse) Act, 1994, was enacted and brought
into operation from 1 January ] 996. The Act prohibits determination and
disclosure of the sex of foetus. It also prohibits any advertisements relating
to pre-natal determination of sex and prescribed punishment for its
contravention. Punishments are also prescribed for contravention of its
provisions. The person who contravenes the provisions of this Act is
punishable with imprisonment up to 5 years and fine up to Rs 1,00)XJO apart
from cancellation of his/her registration and license.
The Act and Rules have been amended with effect from 14 February
2003 to ban selection of sex before or after conception and to remove
difficultil!s in the implementation of the Act keeping in view certain directions
of the Supreme Court of India.
As the implementation of the Act rest with the States/ UTs, all States
and Union Territories have been advised to register all organisations using
ultrasound machines. A National Inspection and Monitoring Committee has
also been constituted at the Centre to take stock of the ground realities by
field visits to the problem States.
RURAL HEALTH INFRASTRUCTURE
In the rural area, services are provided through a network of integrated health
and family welfare delivery system. As on 31 March 2004 an extensive
network of 3,043 Community Health Centres, 22,842 Primary Health Centres
and 1,37,311 sub-centres had been set up to provide primary health care at
the grassroots level. Further 8,669 new Sub-Centres have been sanctioned
during the year 2003-04. One Sub-Centre manned by one female and a male
multipurpose worker covers a population of 5,000 in plain areas and 3,000
in hilly, tribal and backward / difficult terrain areas. One Lady Health Visitor
supervises six SubCentres. One Primary Health Centre covers a population
of 30,000 in the plain areas and 20,000 in tribal and difficult terrain areas.
One Community Health Centre covers 80,000 to 1,2(),OOO population. It has
30 indoor beds, well-equipped laboratory and X-ray facility.
POPYLATION RESEARCH CENTRE SCHEME
The Union Ministry of Health and Family Welfare has established a network
of 18 Population Research Centres (PRCs) scattered in 17 major states. These

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397

PRCs are located in various Universities (12) and other Institutions (6) of
national repute. These Centres are responsible for carrying out research on
various topics of population stabilization, demographic, socio-demographic
surveys and communication aspects of population and Family Welfare
Programme.
During the year 2002-03, these Population Research Centres completed
]43 research studies/papers while 92 studies/papers were in progress as on

1 April 2003.

AYURVEDA, YOGA AND NATUROPATHY, UNANI, SIDDHA

AND HOMOEOPATHY (AYUSH)
The Department of Indian Systems of Medicine and Homoeopath ._
&H)
established in the Ministry of Health and Family Welfare in Mar > 1995
s
renamed as Q~~_!t~r,!,~_q_~, Yoga _and !'.I<l!U:rlp~thy, Unant~ Iddha
and Homoeopathy ~n November 2003.
The Indian System of Medicine such as Ayurveda, Siddha, Unani and
drugless therapies like Yoga and Naturopathy have been widely practiced in
India for centuries. Homoeopathy, though originated in Germany, has been
widely accepted and practised in India.
In post-Independence India, the Government recognised the merit of
each of the AYUSH Systems and made attempts to develop them as viable
systems of medicine. It was felt that theal of the W...2TJd Health Ossapisation
of "Health for All" cannot be achieved
ough the modem Allopathic system
alone and there is need to involve the AYUSH practitioners in the national
mainstream for achieving this goal. This has resulted in the recognition of
traditional systems of Ayurlleda, 5iddha and Unani, Homoeopathy, Yoga and
Naturopathy as National Systems of Medicine along with Allopathy.
For the first time, a separate National Policy on Indian Systems of
Medicine and Homoeopathy-2oo2 was formulated. The basic objectives of the
Policy are to promote good health, expand the outreach and to ensure
affordable AYUSH services to the people, as also to integrate AYUSH in health
care delivery systems in the national programmes.
Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and
Homoeopathy : This Department came in to existence in 1995. Apart from
having Drug Control Cell, Medicinal Plant Cell and a Patent Cell, the
Department has three subordinate offices, namely, Pharmacopoeial Laboratory
of Indian Medicine, Homeopathic Pharmacopoeial Laboratory and CGHS
Ayurveda Hospital at Delhi as well as 14 Autonomous bodies and a Public
Sector Undertaking. National Medicinal Plants Board is also functioning under
the aegis of the Department.

Statutory Regulatory Councils: The Central Coundl of Indian medicine

(CCIM) and the Central Council for Homoeopathy (CCH) were set up under
the Acts of Parliament. Ayurveda, SiddhR and Unan; systems are within the

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India 2005

ambit of the Central Council of Indian Medicine, and Homoeopathy is under

the Central Council for Homoeopathy. These councils prescribe course
curricula, evolve and maintain standards of education and maintain central
registers of practitioners of Ayuroeda, Siddha, Unani lnd Homoeopathy
respectively. Their main responsibilities are to regulate education and practice
of respective systems of medicine. However, with amendment to Central
Councils' Acts the Central Government has taken over the powers to grant
permission for opening of new colleges, starting of new or higher courses of
AYUSH education and increase of admission capacity. The Government is
actively considering the proposal of establishing independent council for
regulating pharmacy education of AYUSH.
Research Councils: There are four apex research councils, namely, Central
Council for Research in Ayurveda and Siddha (CCRAS), Central Council for
Research in Unani Medicines (CCRUM), Central Council for Research in
Homoeopathy (CCRH) and Central Council for Research in Yoga and
Naturopathy (CCRYN). These councils are engaged in conducting clinical
research in Health Care, Drug Research, Survey and Cultivation of Medicinal
Plants, Pharmacognosy, Phyto-chemistry, Pharmacology, Toxicology, Drugs
Standardisation, Literary Research for revival of the ancient classical literature
and Family Welfare Research. CCRYN's objective is also to conduct scientific
n'search in the field of Yoga and Naturopathy.
National Institutes : There are seven apex National level educational
institutions one for each system as model institutes to promote excellence in
Indian Systems of Medicine and Homoeopathy education. These institutes are
National Institute of Ayurveda, Jaipur; National Institute of Siddha, Chennai;
National Institute of Unani Medicines, Bangalore; Morarji Desai National
Institute of Yoga, New Delhi; National Institute of Naturopathy, Pune and
National Institute of Homoeopathy, Kolkata. The Rashtriya Ayurveda
Vidyapeeth at New Delhi has been functioning to promote informal system
of education (Guru Shishya parampara) and to preserve the knowledge and
clinical practices possessed by eminent scholars and vaidyas and to arrange
transfer of the same to young Ayurvedic graduates. The Institute of Post
Graduate Teaching and Research in Ayurveda, Jamnagar is one of the
constituents of Gujarat Ayurved University. It is one of the oldest PG centres
of Ayurveda and fully financed by the Government through grants for
maintenance and development.
All India Institute of Ayurveda, is being set up in Sarita Vihar, New
Delhi. It will impart PG education and conduct research in Ayurveda and have
a 250 bedded referral hospital.
Pharmacopoeial Laboratories: The Government has established
Pharmacopoeial Laboratory of Indian Medicine (PLIM) and Homoeopathy
Pharmocopoeial Laboratory (HPL) which are the apex laboratories for laying
down pharmacopoeial standards and quality testing of drugs used in
Ayurveda, Ummi and Siddha and Homoeopathy systems of medicine
respectively, and also act as appellate Laboratories.

Health and Family Welfare

399

Drugs Regulation : The AYUSH drugs are covered under Drugs and
Cosmetics Act, 1940. There is a ~~~~~_Q!'_\1Z~.It?<:hnical.~(:h'isory Board for
Ayurveda:-Siddha and Unani Drugs..J~UDTABl~nd sub-comiriittee-on
DTAB for Homoeopathic drugs. The State Dr\ig LICensing authorities issue
licences to manufacturers. Drug Testing Laboratories are being strengthened
and accredited for testing of quality and genuineness of AYUSH drugs and
raw materials. Good Manufacturing Practices (GMP) have become mandatory
from 23 June 2000 with the proviso that in the case of units registered before
23 June 2000, the GMP rules will come into force from 23 June 2002.
Ayurveda and Unani Drugs Manufacturing Unit: Indian Medicine
Pharmaceutical Corporation Limited (IMPCL) is a Central Public Sector
Undertaking established in 1978, with the prime objective of manufacturing
authentic Ayurvedic and Unani medicines according to classical texts for
catering to the needs of Central Government Health Scheme (CGHS) Units
of Central Research Councils of Ayurveda and Unani, Autonomous Bodies,
State Governments and related institutions. The Company manufactures over
300 Ayurvedic and Unani drugs. In the year 2003-04, IMPeL has attained
record sales of Rs 4.52 crore.
National Medicinal Plants Board : The Medicinal Plants Board was set up
under a Government Resolution notified on 24 November 2000. The objective
of the Board is to establish an agency which would be responsible for coordination of all matters relating to medicinal plants, including drawing up
policies and strategies for conservation, proper harvesting, cost-effective,
cultivation, research and development, processing, marketing of raw material
in order to protect, sustain and develop this sector. The NMPB has taken
initiatives for setting up of SMPB in each state. Ttll June 2004,31 SMPBs have
been set up in the country.
Infrastructure: The health care infrastructure under AYUSH available in
India consists of 3,845 hospitals with 65,159 bed capacity, 23,630 dispensaries,
439 Undergraduate colleges, 96 colleges having Post Graduate Departments,
9,226 licensed manufacturing units and 6.95 lakh registered practitioners of
Indian Systems of Medicine and Homoeopathy in the country.
An outlay of Rs 775 crore has been allocated under the Tenth Five-year
Plan. The Plan allocation for 2004-05 is Rs 181 crore.
STANDARDS OF EDUCATION
There are 439 colleges of AYUSH in the country out of which 96 colleges have
postgraduate Departments for imparting PG teaching. Under Siddha system
there are six Siddha medical colleges. Out of these six, two colleges are having
the postgraduate teaching facility. The Government hilS set up national-level
educational institutions of each system as model institutes to promote
excellence in AYUSH education.

The Government is providing financial assistance to under-graduate

colJeges for strengthening infrastructure, teaching and training facilities and

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India 2005

for upgrading undergraduate Department for post-graduate education in the

concerned subject. With an object of creating state-of-art Institute, a scheme
to develop one Model Institute of AYUSH per system per state is under
implementation. As a part of the continuing education and in order to instil
confidence and to update the skills, a reorientation training programme for
teachers, physicians etc. has been implemented. The State Governments
sponsor teachers and physicians to these courses. Efforts are underway to have
the pharmacy and nursing education regulated. In the field of Yoga and
Naturopathy education, course content has been worked out.
Permission of the Central Government will now bt~ required to start new
colleges, increase seats and start higher or new courses of study in existing
colleges. Regulations in respect of Ayurvedic, Unani and Siddha colleges have
been notified on 15 March 2004, in the official Gazette.
STANDARDISATION AND QUALITY CONTROL OF DRUGS
Pharmacopoeia Committees of Ayurveda, Siddha, Ullani and Homoeopathy
set up by the Government are continuously engaged in evolving standards
for drugs. Pharmacopoeial Standards for 326 Ayurl'l'da and 45 Unani drugs
have been established. Homocopathy Pharmacopoeia Committee has evolved
standards for 916 drugs contained in eight volumes. First volume of
Homoeopathic Pharmaceutical Codex having additional information on
Homoeopathic drugs is under print. At present two central laboratories viz.,
Pharmacopoeial Laboratory for Indian Medicine and Homoeopathic
Pharmacopoeia Laboratory located at Ghaziabad are providing the technical
support to the Pharmacopoeial Committees. These Central laboratories along
with 15 laboratories of reputed Universities/Institutions are also working to
develop Pharmacopoeial standards of Ayurveda, Siddha and Unani drugs. A
scheme for strengthening of drug-testing laboratories and drug manufacturing
units of the States/UT Governments has been implemented for ensuring
quality and standards of raw materials and production of quality medicines.
An enabling provision for recognising Private Drug Testing Laboratories to
augment testing facilities for drugs has been made in the Drugs and Cosmetics
Rules, 1945.
National Formularies of 639 Ayurvedic, 912 Unani and 248 Siddha drugs
and essential drug lists have been published. Ayurveda, Siddha and Unani
Drugs Technical Advisory Board and the Drugs Consultative Committee have
been constituted to advise the government on technical matters relating to
drugs. In order to forestall the grant of patents for claims on intellectual
properties which are neither inventions nor discoveries a database of about
36,000 formulations contained in original texts of Ayurveda has been prepared
under first phase of the TKDL (Traditional Knowledge Digital Library) project
and a CD of 500 formulations for demonstration purpose was released in
October 2003. Second phase of the project will take about two years to
complete. TKDL (Unani) has been started in collaboration with CSIR 77,000
formulationS contained in original texts of Unani will be transcribed in the
first phase of the project. First phase of TKDL (Siddha) has also been launched.

Health and Family Welfare

401

An amendment in the Dntgs and Cosmetic Rules, 1945 has been made
for the purpose of inclusion of 49 Homoeopathic medicines which are very
frequently used for the treatment of common ailment and these will be sold
through all the licensed Chemists in the country. These arrangements have
facilitated the sale of 49 listed homoeopathic medicines in the country in the
chemist shops of allopathy medicine.
RAW M.\TERIALS
Medicinal plants, minerals, metals and materials of marine and animal origin
are the raw materials used in the preparation of ASUH dntgs. Ninety per
cent of the drugs are based on medicinal plants. The Department has taken
steps to enhance the supply-base of medicinal raw materials of plant origin
hy initiating efforts for sustainable conservation and cultivation of medicinal
plants. A Central Scheme has been implemented under which 33 institutes
of agriculhue, horticulture and forestry are working on project basis for
development of agro-techniques of important medicinal plants used in dntgs.
Work on development of Agro-techniques of about 71 medicinal plants has
heen completed. The Government has constituted National Medicinal Plants
Board for regulating medicinal plants sector and to coordillate the related
activities like Conservation and Cultivation, Demand and Supply, Marketing
and Export, Quality Control and Standardisation, etc., in respect of medicinal
plants. The Board is supporting projects on large-scale cultivation of
commercially important medicinal plants.
RESEARCH AND DEVELOPMENT
Research and Development activities related to AYUSH are being implemented
under intramural and extramural research programmes. The four central
research councils, viz., (i) Central Council for Research in Ayun.,eda and
Siddlla (CCRAS); (ii) Central Council for Research in Unani Medicine
(CCRUM); (iii) Central Council for Research in Homoeopathy (CCRH); and
(iv) Central Council for Research in Yoga and Naturopathy (CCRYN) are
carrying out intramural research activities through their networks of units,
institutes and centres spread all over the country. The Central Council for
Research in Ayurveda and Siddha is carrying out research activities besides
funding the Extramural Research Projects. Research activities of the Council
include Clinical Research, Drug ResearQt, Literary Research and Family
Welfare Research. The CCRAS has so far patented four drugs and 15 processes
for isolation I production of chemical constituents from plants. It has also filed
eleven patent applications out of which three are for development of
formulation and eight for isolation I production I tissue culture I activity I
processes. Its major achievements are the development of an ayurvedic female
non-hormonal contraceptive Pippalyadi Yoga and a spermicidal drug Neem
Oil. Clinical evaluation of Pippalyadi Yoga undergoing at premier medical
institutions like AIIMS, New Delhi; PCI, Chandigarh; nPMER, Pondicherry
and KEMH, Mumbai, has shown anti-fertility activity. CCRUM is engaged in
multi-faceted research activities in the field of Unani medicine. The Council
have developed safe and cost-effective treatments for the diseases like Vitiligo,
Eczema, Psoriasis, Infective Hepatitis, Bronchial Asthma, Sinusitis and

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India 2005

Rheumatoid Arthritis. Clinical Trials on 30 drugs have been completed. These

drugs are in the process for patenting. Collaborative studies with CSIR on
Isolation of Bill-Active Molecules, Standardisation and Quality Control of
Unani Drugs are also in progress. Agro Techniques for some important Unani
Medicinal Plants have also been developed. Drug proving has been the main
area of research of CCRH. Under this programme the Council has completed
proving of 68 drugs and studies on six drugs are in progress. Homoeopathy
Research Council is also conducting a study on HIV / AIDS. CCRYN is
providing grants to voluntary Yoga/Nature Cure institutions and renowned
medical/scientific institutions for undertaking various activities. Under the
clinical and basic research programme of the Council, 11 projects are in
operation. Some of these projects are taken up by premier institutes like All
India Institute of Medical Sciences, New Delhi, Jawaharlal Institute of
Postgraduate Education and Research, Pondicherry; National Institute of
Mental Health and Neuro Sciences, Bangalore, Viveknanda Yoga Anusandhan
Sansthan, Bangalore and Kaivalayadhama, Lonavla (Pune).
In addition to intramural research conducted by the councils, Extramural
Research Programme was started by the Department in the year 1997-98.
Under this scheme assistance is provided to accredited and reputed research
organisations and institutes for carrying out research studies on Clinical, Drug
standardisation and Development, etc., aspects of AYUSH. So far, 59 projects
have been allotted on different subjects related to clinical evaluation and
pharmacological studies of certain Ayurvedic drugs.
INFORMATION, EDUCATION AND COMMUNICATION
With the objective of creating awareness among the general masses about the
efficacy of the various therapies under ISM&H, their cost effectiveness and
the availability of the herbs used for prevention of treatment of common
ailments, the Department uf AYUSH has been implementing Information,
Education and Communication (IEC) Scheme. Under the scheme, grant is
given to NGOs to organise activities to promote strengths of AYUSH systems.
Various media channels are also utilised to spread the message.
A month-long Swasthya Jagrukta Maah was observed from 15 January
to 15 February 2004 by the Ministry of Health and Family Welfare to conduct
Health Meals in all the Parliamentary Constituencies throughout the country.
INTERNATIONAL COLLABORATION AND COOPERATION
The Government has been striving hard for promotion and propagation of
Indian Systems of Medicine abroad. The efforts have got added momentum
after the establishment of a separate Department of Indian Systems of
Medicine and Homoeopathy in 1995. Ayurveda has been recognised as an
official system of Health Care in Hungary. The Government of India and the
Government of Russian Federation have entered into a comprehensive
Memorandum of Understanding (MoU) for cooperation and collaboration in
the field of Indian Traditional Systems of Medicine. The Deparbnent also
organised Presentation-cum-Exhibitions, Road Shows in various countries to
increase awareness about the Indian Systems of Medicine in those countries.

16

Housing

NATIONAL HOUSING AND HABITAT POLICY

HOUSING is a State subiect. The Union Government is, however, responsible
for the formulation of policy with regard to programme and approaches for
effective implementation of social housing schemes, particularly those pertaining
to weaker sections of the society. A comprehensive Housing and Habitat Policy
1998 was formulated to address the issues of sustainable development,
infrastructure and for strong public-private partnership for shelter delivery.
The objectives of the policy are to create surpluses in housing stock by creating
an enabling environment and facilitate construction of two million additional
dwelling units each year. It also seeks to ensure that hOUSing alongwith
supporting services is treated as priority sector at par with infrastructure. The
Central theme of the poliCY is strong public-private partnerships for tackling
housing and infrastructure problems. The Government would provide fiscal
concessions, carry out legal and regulatory reforms and create an enabling
environment. The problem of housing shortage compounded with the
population explosion has also been addressed by this policy. This document
clearly identifies the respective roles of the Central Government, the State
Government, local authorities, financial institutions, research standardisation
and technical institutions. However, since housing is a state subject, State
Governments have to pli.ly the primary role in formulating specific action
plans and programmes s\lited to local needs and conditions duly involving
\\)ca\ 00di~ and ci\h.en V\)\\P>. The 'l,\)vemmen\ na'i'> iden\ified 'H\)\\'i'>\n'l, fm
All' as a priority area, with particular emphasis on the needs of the vulnerable
groups. It is proposed to facilitate construction of 20 lakh additional units
every year, with emphasiS on Economically Weaker Section (EWS) and Low
Income Groups (LIG) of the population as also the needs of SC/ST and other
vulnerable groups. Out of 20 lakh additional houses, seven lakh houses are
to be constructed in urban areas and the remaining 13 lakh in rural areas.

HOUSING FINANCE
lhe following initiatives were taken as part of implementation of National
HOUSing and Habitat Policy: (a) An Action Plan is drawn up to achieve the
target of 'Shelter for All'. Construction of seven lakh additional dwelling units
in urban areas will be facilitated by the Government by providing fiscal and
technological support. It will require all-round involvement of private sector /
cooperatives and NGOs/CBOs; (b) The National Housing Bank, set up in 1988
as a subsidiary of Reserve 'Bank of India, is functioning under the administrative
control of the Banking Division of Department of Economic Affairs. It is
supervising and controlling various HOUSing Finance Institutions (HFIs). So
far it has recognised 31 HFlSi (c) Allocation by the Life Insurance Corporation/
Get\etallnsutmo! Cotpotati.o~ fot d.ite.ct and. ind.i.tect fiN.noe fat housing has

404

India 2005

been increased; (d) Public Sector Banks are engaged in providing housing
finance to individuals. They have been directed to lend three per cent of their
incremental deposits each year for housing. The annual investments by Banks
in housing over the past three years have been in the range of over Rs 4,000
crore; (e) During 2002-03, the Housing and Urban Development Corporation
Limited (HUDCO) sanctioned loans of Rs 15,627 crore for Housing and Urban
infrastructure schemes against MoU target of Rs 8,400 crore. The actual loan
released by the HUDCO during the same period was Rs 8,180 crore as against
MoU target of Rs 5,500 crore. The 316 schemes sanctioned during 2002-03 with
HUDCO loan assistance of Rs 15,627 crore would enable construction of
8,73,047 residential units, development of 35,471 residential plots, facilitation
of 35,853 sanitation units apart from assistance for water supply, sewerage/
drainage schemes, construction of roads/bridges, area development, etc. More
than 80 per cent residential units sanctioned during the year were meant for
EWS/LIG. This also includes "HUDCO Niwas" the individual housing loan
scheme, where HUDCO sanctioned Rs 1,294 crore for 1,02,366 dwelling units
all over the country. An amount of Rs 973.85 crore was released during the
year under this scheme, the most competitive retail home loan scheme; and
(f) As an Action Plan item, Night Shelter Scheme for footpath dwellers is being
implemented as a Centrally sponsored scheme in the metropolitan and other
major urban centres. Since April 1990, 114 schemes for construction of 16,959
beds, 18,495 toilet seats and 2,147 baths are sanctioned involving Government
subsidy of Rs 30.29 crore and HUDCO loans of R.s 22.03 crore are sanctioned
by HUDCO in various parts of the country.
Fiscal concessions: Following recommendations were accepted in the Budget
2003-04: (i) For concessions available to undertakings developing housing
projects under Section 801B(10) of the Income Tax Act, the cut off date for
approval by local authorities has been extended to 31 March 2005; (ii) Under
Section 24 of the IT Act, it has been agreed in the Budget that the interest
continues to be deductible up to Rs 1.5 lakh.
NATIONAL BUILDING ORGANISATION
The National Building Organisation (NBO) is an attached office of the Ministry
of Urban Development and Poverty Alleviation. It was established in 1954
for technology transfer, experimentation, development and dissemination of
housing statistics. It was restructured in August 1992 to function as a data
bank and management information centre for socia-economic aspects of
housing.
The activities of restructured NBO are as follows: (i) Coordinated activities
relating to generation of primary data relating to hOUSing by Government
organisations namely, the office of Registrar General of India, National Sample
Survey Organisation and other concerned organisations; (ii) Collecting primary
data on current housing and building construction activity in the urban areas
in both public and private sectors under its 3-tier scheme; (iii) Data on the
prices of selected building materials and wages of labour involved in
construction activity from the state capitals and severa) other important dties

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405

in the country are collected on a quarterly basis under the 3-tier scheme of
NBO; and (iv) Data on building Cost Index relating to Low Income Group
Houses constructed by the State Housing Boards or State Development
Authorities are also being collected and compiled in respect of selected centres.
RESEARCH AND SURVEY SCHEME (PLAN)
(Rs. in lakh)

Year

B.E.

Actual Expenditure

1997-1998

100.00

13.97

1998-1999

100.00

9.23

1999-2000

52.00

7.07

2000-2001

50.00

22.36

2001-2002

30.00

30.00

2002-2003

30.00

11.52

2003-2004

There is no budget allocation

2004-2005

There is no budget allocation

CENTRAL GOVERNMENT
ORGANISATION

EMPLOYEES

WELFARE

HOUSING

The Central Government Employees Welfare Housing Organisation (CGEWHO)

was set up in 1990 as a registered society with the intention of providing
houses on ownership basis to Central Government Employees in various parts
of the country on a 'no-profit-no-loss" basis. The organisation has the mandate
to construct houses for serving as well as retired (within 5 year) Central
Government Employees all over the country. The CGEWHO is governed by
a Governing Council, which comprises of the representatives of various
Ministries / Departments.
NATIONAL COOPERATIVE HOUSING FEDERATION

The National Cooperative Housing Federation of India (NCHF) which was

set up in 1969, is the national apex organisation spearheading the entire
cooperative housing movement in India.
The primary objective of the NCHF is to promote, guide and coordinate
the activities of housing cooperatives. All the 25 state level Apex Cooperative
Housing Federations are members of the NCHF. There are 92,000 primary
housing cooperatives functioning in the country with a membership of 6.6
millions.

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India 2005

HINDUSTAN PREFAB LIMITED

Hindustan Prefab Limited (HPL) is wholly-owned by the Government of
India. The company is engaged in the production of prefabricated materials
like railway sleepers, PC electric poles, etc. Now a loss making PSU, the
company had been referred to the Disinvestment Commission. The Commission
recommended disinvestment of Government shares (upto 74 per cent) in the
company. But the Core Committee of Secretaries on Disinvestment
recommended the closure of the HPL.
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED
HUDCO, since its inception in 1970, has made steady and significant strides
in the field of housing and urban infrastructure financing, to emerge as the
pioneer and the trend-setter. Catering to the needs of every section of the
population, with a basket of delivery options both in housing and urban
infrastructure development, HUDCO aims to achieve sustainable growth in
these sectors.
HUDCO is fast emerging as the only organisation of its kind for dealing
with the unique needs of shelter and infrastructure development and still
ensuring profitable results. HUDCO, during the three decades of its existence,
extended assistance for taking up over 143 lakh dwelling units both in urban
and rural areas. HUDCO's assistance covers the housing needs of every class
of the society, with special emphasis on the weaker sections and the deprived.
HUDCO also contributed significantly to the Government's 'Two Million
Housing Programme'.
HUDCO continued its emphaSis on the disaster mitigation front. TIll
date, HUDCO has been able to contribute over 40 lakh houses in disaster
affected regions with a project cost of over Rs 3,972 crore and HUDCO's
financial assistance of over Rs 2,119 crore.
Adequate basic services and appropriate social amenities along with
associated infrastructure are an integral part of HUDCO's agenda of sustainable
habitat development. The urban infrastructure window of HUDCO, opened
in 1989, has sanctioned a total of 1,110 projects (Excludes sanitation schemes)
with a total project cost of Rs 78,269 crore and HUDCO financial assistance
of Rs 36,381 crores, contributing to the improvement in the physical quality
of life of the citizens at large in the urban areas.
HUDCO has been promoting the use of alternative building materials
and appropriate technologies to ensure cost-effective, environment friendly,
ecologically appropriate, energy saving and yet aesthetically pleasing and
affordable housing. The question of transfer of technology at the grass root
level is addressed by the support extended to the establishment of 584
Building Centres in urban areas.
HUDCO Operation: HUDCO achieved sanctions of Rs 13,413 crore. Providing
assistance for construction of a 9,69,761 dwelling units, over 15,31,473
sanitation units, 5,842 developed plots and 143 urban infrastructure projects

Housing

407

throughout the country during 2003-04. The loan released during the year
amounted to Rs 6,147 crore (Provisional).
Cumulatively till 31 March 2004, HUDCO sanctioned 15,275 schemes
involving a total project cost of Rs 1,19,121 crore (excluding HUDCO Niwas)
with loan component of 63,472 crore. An amount of Rs 43,663 crore was
released. HUDCO's assistance helped in the construction of 143lakh residential
units, about 61 lakh sanitation units and in undertaking 1,110 urban
infrastructure schemes in 1,790 towns and thousands of villages.
Contribution to 'lWo Million Housing Programme': The Two million
Housing Programme was launched by the Government in the year 1998 with
the objective of providing 'housing for all' with predominant emphasis on
weaker sections and the low income groups. As part of the 'Two million
Housing Programme', HUDCO was assigned a target of 10 lakh units annually
(six lakh units in rural areas and four lakh units in urban areas). Against the
same since 1998 to 2003-2004, HUDCO supported a total of 59.59 lakh units
in both rural and urban areas.
Contribution to VAMBAY: HUDCO is actively involved in the implementation
of two major initiatives of the government for the implementation of the new
scheme for housing and urban poor through the Valmiki Ambedkar Awas
Yojana (VAMBAY) and also the Nirmal Bharat Abhiyan. During the year
2003-04, HUDCO sanctioned 77 schemes with HUDCO loan assistance of
Rs 90 crore for construction of 1,34,053 Dwelling Units and 10,411 Sanitation
Units under VAMBAY. However, since the launching of the scheme and up
to 31 March 2004, HUDCO sanctioned ]67 Schemes under VAMBAY. The
Schemes are worth Rs 1,750 crore for which HUDCO loan commitment is of
Rs 300 crore. These Schemes will provide 3,78,567 dwelling units and 43,486
sanitation units.

POVERTY ALLEVIATION SCHEMES

LOW COST SANITATION SCHEME
The Scheme seeks to completely eliminate the practice of manual scavenging
by conversion of dry latrines into low cost water seal pour flush latrines and
con.<;truction of new sanitary toilets. The scheme is being operated through
the HUDeO by providing subsidy from the Central Government and loan
from HUDeO to the States and Union Territories.

TIn 31 March 2004, 861 schemes costing Rs 2,043.28 crore covering 1,534
towns were sanctioned for conversion/ construction of 51.70 lakh dry latrinesl
pour flush toilets and liberation of 1,18,454 manual scavengers. An amount
of Rs 588.48 crare was sanctioned as subsidy and Rs 478.78 crore as loan from
HUDCO for these schemes. Out of this, Rs 293.60 crore as subsidy and
Rs 478.78 crore as loan were released by HUDeO to different States. So far,
17.33 lakh low cost units are completed and 3.20 lakh are in progress. 586
towns are declared scavenger-free.

India 2005

408
NATIONAL SLUM DEVELOPMENT PROGRAMME

The National Slum Development Programme (NSDP) was launched by the

Prime Minister in August 1996 at Kanpur in (U.P.). Under NSDp, Additional
Central Assistance (ACA) is being released to the States/UTs for the
devdopment of urban slums. The objective of this programme is upgradation
of urban slums by providing physical amenities like water supply, storm water
drains, community bath, widening and paving of existing lanes, sewers,
community latrines, street light, etc. Besides, the funds under NSDP can be
used for provision of community infrastructure and social amenities like preschool education, non-formal education, adult education, maternity, child
health and primary health care including immunisation, etc. The programme
also has a component of shelter upgradation or construction of new houses.
Under the programme, funds in the form of ACA are allocated by the
Planning Commission annually on the basis of slum population of the State/
lIT. The States release the funds to the Implementing Agencies as per their
requirements. The Ministry of Urban Employment and Poverty Alleviation is
nominated as the Nodal Ministry to monitor the progress of the programme
in respect of States.
As reported by the States / UTs, sincE;' th(' inception of the programme
and up to 1 April 2004 out of the total funds of Rs 2,475.85 crore released
by the Central Government, an amount of Rs 1,769.69 crore was spent and
about 3.72 crore of slum dwellers were benefitted from this programme.

\~ARNA JAYANTI SHAHARI ROZGAR YOJANA

~ll the three Urban Poverty Alleviation schemes, namely, Urban Basic Services
for the Poor (UBSP), Nehru Rozgar Yojalla (NRY) and Prime Minister's
Integrated Urban Poverty Eradication Programme (PMI-UPEP) stand subsumed
in a new scheme Summa Jayallti Shahari Rozgar Yojalla (SJSRY) from
1 December 1997. The SJSRY seeks to provide gainful employment to the
urban unemployed or under-employed through encouraging the setting up
of self-employment ventures or provision of wage employment. This programme
relies on creation of suitable community structures. The Yojana is funded on
a 75:25 basis by the Centre and the States. The scheme consists of two special
programmes: (a) the Urban Self-Employment Programme (USEP), and (b) the
Urban Wage Employment Programme (UWEP).
During 2003-04, Rs 60.44 crore were released under USEp, Rs 24.47 crore
under UWEP and Rs 15.83 crore under Community Structure Component to
States / UTs under S}SRY.
(a)

Urban Self-Employment Programme

This Programme has three components: (i) Assistance to individual urban

poor beneficiaries for setting up gainful self-employment ventures;
(ii) Assistance to groups of urban poor women for setting up gainful selfemployment ventures. This sub-scheme is titled as "The Scheme for
Development of Women and Children in the Urban Areas (DWCUA),,; and
(iii) Training of beneficiaries, potential beneficiaries and other persons

Housing

409

associated with the urban employment programme for upgradation and

acquisition of vocational and entrepreneurial skills. The programme is
applicable to all urban towns in India and implemented on a whole-town basis
with special emphasis on urban poor clusters. The programme targets the
urban poor, defined as those living below the urban poverty-line. The
percentage of women beneficiaries under this programme shall not be less
than 30 per cent. The SCs and STs must be benefited in proportion to their
strength in local population A provision of three per cent shall be reserved
for the disabled under this programme. There is no minimum educational
ljualification ior beneficiaries under this programme. However, this scheme
is not applied to beneficiaries educated beyond the ninth standard. Women
beneficiaries belonging to women headed households, viz, widows, divorcees,
single women, or household where women are the sole earners, are ranked
higher in priority. Up to 31 March 2004, the number of persons assisted to
set up micro enterprises under USEP was 5,11,030 and women beneficiary
under DWCUA groups was 97,042 thus benefitting 6,08,072 persons to set up
self-employment ventuIt's. The number of persons provided various skill
training under the training component of USEP was 5,98,111, till 31 March
2004.
Development of Women and Children in Urban Areas (DWCUA)
programme aims at helping groups of urban poor women in taking up selfl'mployment ventures. The group may consist of at least 10 women. The
ceiling of subsidy under the scheme is Rs 1.25 lakh or 50 per cent of the cost
of the project whichever is less. Where the group sets itself up as Thrift and
Credit Society, in addition to its sdf-cmployment venture, it will be eligible
for an additional grant of Rs 25,000 as revolving fund at the rate of Rs 1,000
maximum per member. The fund is meant for purposes like purchase of raw
materials and marketing, infrastructure support, one-time expense on child
care activity, expenses up to Rs 500 on travel cost of group members to bank,
payment of insurance premium for self / spouse / child by maintaining saving
for different period by a member and any other expense allowed by the State
in group's interest. The revolving fund can be availed by a group only after
one year of its formation. Up to 31 March 2004,30,636 DWCUA groups were
formed benefitting 97,042 women.

(b)

Urban Wage Employment Programme

This programme seeks to provide wage employment to beneficiaries living

below the poverty-line within the jurisdiction of urban local bodies by utilising
their labour for constructing of socially and economically useful public assets.
There are no restrictions on educational qualification. The programme applies
to urban local bodies, having a population of less than five lakh as per the
1991 census. The material/labour ratio for works und.er this programme is
to be maintained at 60:40. The prevailing minimum wage rate, as notified from
time to time for each area, has to be paid to beneficiaries under this
programme. The programme is dovetail~d with the state sector Environmental
Improvement of Urban Slums (EIUS) scheme as well as the National Slum
Development Programme (NSDP). This programme is not designed to either

410

India 2005

replace or substitute the EIUS, the NSDP, or any other state sector scheme.
The number of man-days of work generated upto 31 March 2004 was 484.22
lakh.
VALMIKI AMBEDKAR AWAS YOJANA

A new Centrally sponsored scheme called Valrniki Ambedkar Awas Yojana

(VAMBAY) for ameliorating the conditions of the urban slum dwellers living
below poverty line and who do not possess adequate shelter was formally
launched by the Prime Minister on 2 December 2001 at Hyderabad. The
scheme has the primary objective to facilitate the construction and upgradation
of the dwelling units for the slum dwellers and to provide health and enabling
urban environment through community toilets under Nirmal Bharat Abhiyan,
a component of the scheme. This is the first scheme of its kind meant
exclusively for slum dwellers with a Central Government subsidy of 50 per
cent, the balance 50 per cent is to be arranged by the State Government with
ceiling costs prescribed both for dwelling units/ community toilets. The State's
share may consist of funds from any source in the form of subsidy or loan
from Housing and Urban Development Corporation Limited (HUDCO) or any
other agency. The guidelines of the scheme provide for submission of
proposals by the nodal agencies of State Governments to HUDCO who, in
tum, process and forward them to the Central Government with their
recommendations. The funds are released only after a VAMBAY account is
opened by the State Nodal Agency and the share of the State / UT Government
is deposited in that account.
During the financial year 2003-04, Central subsidy to the extent of
Rs 238.55 crore was released for construction of 1,08,376 dwelling units and
3,170 toilet seats. Thus, Central subsidy of Rs 530.46 crore has so far been
released under VAMBAY since its inception, for construction of 2,46,035
dwelling units and 29,263 toilet seats.
For the current financial year 2004-05, target for construction of 1.121akh
dwelling units has been fixed with the budget provision of Rs 280.58 crore
under VAMBAY and an amount of Rs 2,039.958 lakh has been released so
far, as Central share for construction of 9,099 dwelling units and 1,100 toilet
seats.
URBAN REFORMS INCENTIVE FUND

The Government is keen to have reforms in the urban sector. In his Budget
Speech of 2002-03, the then Finance Minister announced creation of an Urban
Reforms Incentive Fund with an initial allocation of Rs 500 crore to provide
urban reform linked assistance to State I Union Territories. The detailed
guidelines of the scheme were approved by Government on 28 June 2003.
In the first phase, seven reforms e.g., Repeal of Urban Land Ceiling and
Regulation Act, Rationalisation of Stamp Duty, Reform of Rent Laws, etc., were
identified. The first phase is being implemented with an annual aDocation of
Rs 500 crore. TIll 31 March 2004, 21 States and three Union Territories signed

Housing

411

Memoranda of Agreement with the Central Government to carry out reforms.

In the Second generation reforms, some more reform areas are likely to be

added, e.g., Revision of bye-laws, Simplification of legal/procedural frameworks

for conversion of agricultural land for non-agricultural purposes, etc.
TWO MILLION HOUSING PROGRAMME

Under the Programme "Housing for All" construction of Two Million houses
are to be made every year in addition to the normal housing programme.
Out of this, seven lakh houses are to be constructed in urban areas and 13
lakh in rural areas with emphasis on the economically weaker sections and
low income groups. The scheme was launched in 1998-99. In the urban areas
as against the target of 42 lakh dwelling units in six years, a total of 56.62
lakh dwelling units were sanctioned by various agencies viz., Housing and
Urban Development Corporation Ltd., (HUDCO); Co-operative Sector; Housing
Finance Institutions; and Public Sector Banks with Rs 89,049.22 crare investment.
In rural areas, HUDCO financed 33.09 lakh dwelling units with sanctioned
outlay of Rs 3,791.42 crore [from 1998-99 to 2003-04] against the target of 36
lakh.
BUILDING MATERIALS

Building materials account for 65 to 75 per cent of the total cost of

construction. The demand for building materials is continuously rising with
the increasing need for housing both in rural and urban areas.
Inadequate technology extension facilities, lack of coordination and
promotion programme at the Central and State Government levels to support
production ventures are some of the issues receiving attention of the
Government.
In the rural areas the problem is more severe due to decreasing access
to traditional materials such as timber, bamboo, thatch which mostly form
part of bio-mass. Commercial exploitation by various industries has aggravated
the situation. A change in policy is essential to give due priority to shelter
construction through better availability of alternate materials at affordable
prices and by minimising commercial exploitation of bio-mass.
In this context, the following initiatives are taken: (a) An Action Plan
for propagation of new technologies in housing sector is drawn up as part
of Tenth Plan formulation; (b) The Building Materials and Technology
Promotion Council (BMfPC) is functioning as a registered Society to provide
for an approp~te platform for technology identification. validation, transfer,
application in the shelter sector and promoting large scale commercial
production of innovative building materials. The Council has tUen a lot of
initiatives in utilisation of fly-ash and other wastes, introduction of new
Specifications by CPWD and BIS and to increase the entrepreneurs interface
with the financial institutions and research agencies. A number of fly-ash
based building materials production units in various parts of the country have

India 2005

412

been set up. A large number of door manufacturers are using imported DWF
plates which act as wood substitute because plantation timber is used for
manufacture of these doors; (c) Some of the technologies and new materials
and components already tested and manufactured on a pilot scale are
identified for large scale extension; (d) A network of Building Centres has been
set up as a Centrally-sponsored scheme through HUDCO to train artisans and
others for transfer of appropriate technology to rural and urban areas. As on
31 March 2003, administrative approval has been given for 584 Building
Centres out of which 485 have become functional. These Centres have trained
over two lakh construction workers. This Schem!:' has however been
discontinued from 1 April 2002. Some of these Centres have been granted KfW
grants also for purchase of machinery/equipment; (e) Non-Governmental
Organisations are increasingly being supported to supplement governmental
efforts; and (f) BMTPC is now engaged in exporting innovative technologies
and machineries developed in India, to African and Central American
countries.
UNITED NATIONS HABITAT
FOUNDATION AND INDIA

AND

HUMAN

SETTLEMENTS

India is a founder member of United Nations Centre for Human Settlements

(UNCHS), an Inter-Governmental body established through a resolution of
the United Niltional General Assembly for guiding habitat activities. The new
name of UNCHS is United Nations Habitat and Human Settlements Foundation
(UNHHF).
Every year, since 1985 World Habitat Day is being celebrated on the first
Monday of October, by the government. This day has been set aside by the
United Nations Organisation to focus the attention of Member States on the
state of human settlement and the basic right to adequate shelter with a view
to bring about transformation in the living conditions of the vast majority of
people.
NRI INVESTMENT
The hOUSing sector suffers from paucity of funds in the backdrop of the
magnitude of hOUSing shortage in the country. There are Significant gaps in
resources, technology and management of the sector.
In tht process of economic reforms and liberalisation of trades and
industrial policy the housing and real estate sectors have emerged as a key
area with immense investment potential. In order to pass on the benefits of
the liberalisation process to Non-Resident Indians (NRIs)/ People of Indian
Origin (PIO)/Overseas Corporate Bodies (OCBs) and to promote inflow of
foreign exchange and augment resources for the housing sector, the Government
announced a scheme for NRI investment in housing and real estate
development. The scheme covers investment by non-residents of Indian
Nationality / origin and Overseas Corporate Bodies (OCBs) I predominantly
owned by NRIs/PIO in the following areas, (i) development of serviced plots

Housing

413

and construction of built-up residential premises; (ii) real estate covering

construction of residential and commercial premises including business
centres and offices; (iii) development of township; (iv) dty and region level
urban infrastructure fadlities including roads and bridges; (v) manufacturing
of building materials; and (vi) Financing of housing development.
As or. August 2003, NRI investment to the extent of Rs 580.64 crore was
approved in housing and real estate development sector by the RBI.
The Gov(:mment permitted in 2002, 100 per cent FDI for development
of integrated townships including housing, commerdal premises, hotels,
resorts, city and regional level urban infrastructure facilities such as roads and
bridges, mas:::. rapid transit systems and manufacture of building materials.
Dtvclopment of land and providing allied infrastructure will form an
integrated part to township development.
DEVELOPMENT OF INDICATORS PROGRAMME-MONITORING AND
MANAGEMENT SYSTEM
Development of indicators' programme is meant for development of Urban
Indicators, basically for collection of data on Urban Indicators, conducting of
surveys as well as monitoring and evaluation of the programme, setting up
of National Urban Observatory at "Town and Country Planning Organisation"
(TepO) and also Local Urban Observatories (LUOs).
Planning Commission is not inclined to continue the Urban Indicators
as a separate scheme and has desired that the Scheme of Development of
Urban Indicators be integrated with other data collection scheme of Department
of Urban Development Mapping Scheme or National Urban Information
System to have only one scheme. Further, Local Urban Observatories (LUOs)
have been established at Bangalore and Alwar.
NORTH EAST INITIATIVES
The Government set up a Non-Lapsable Central Pool of Resources (NLCPR)
for the North-Eastern region including Sikkim.
DUring the year 2002-03, projects amounting to Rs 86.58 crore were
sanctioned and fund to the tune of Rs 43.29 crore were released to NBCC,
which is the executing agency for these Projects. In addition to this two
Projects in Tripura and Mizoram respectively, at a total cost of Rs 175.23 lakh
were sanctioned and out this Rs. 87.62 lakh were released to BMTPC, during
the year 2002-03.
During the year 2003-04, a new project amounting Rs 207.34 lakh was
sanctioned for the Manipur state and under this Rs l03.671akh were released
to NBCC, which is the executing agency. However, the second instalment of
funds for the projects sanctioned in the earlier years, amounting Rs 49.9633
crore were also released to NBCC during 2003-04.
A provision of Rs 114 crore has been made for 2004-05 for taking up
developmental schemes in the urban sector of this region.

414

India 2005

URBAN DEVELOPMENT SCHEMES

ACCELERATED URBAN WATER SUPPLY PROGRAMME
The Accelerated Urban Water Supply Programme (AUWSP) is a Centrally
sponsored scheme initiated with the objective of solving the drinking water
problem in towns having population of less than 20,000 as per 1991 census.
The scheme is funded by the Central and State Governments in the ratio of
50:50. As on 31 March 2004 the Government accorded technical approval to
the water supply schemes in 1,037 towns at an estimated cost of Rs 1,397.83
crore and released an amount of Rs 622.52 crore as central share under
AVWSP since the launching of the programme in 1993-94. During the financial
year 2003-04 an amount of Rs 140 crore was released under the AUWSP.
INTEGRATED DEVELOPMENT OF SMALL AND MEDWM TOWNS
The Centrally sponsored scheme of Integrated Development of Small and
Medium Towns (IDSMT) came into operation in 1979-80 covering towns upto
five lakh population. As per revised guidelines issued in August 1995, the
share of central and state governments is released as grant. The IDSMT
Scheme is applicable to those towns where election to the local bodies have
been held and elected representatives are in position. The scheme is approved,
sanctioned and monitored by a State Level Committee. Institutional finance
ranging from 20 - 40 per cent of the project cost can be availed by the towns
covered under the scheme from financial institutions/other sources. The
Central Assistance is available in the ratio of 60: 40.
Central Assistance amounting to Rs 708.49 crore was released to 1,555
towns upto March 2004 under IDSMT. The Plan allocation for the scheme
during 2004-05 is Rs 200 crore.
MEGA CITY SCHEME
1he Centrally sponsored scheme of Infrastructure Development in Mega Cities
in operation from 1993-94 applies to the five Mega Cities of Mumbai, Chennai,
Kolkata, Hyderabad and Bangalore. The sharing of cost between central and
state Governments is in the ratio of 25:25 and the balance 50 per cent is to
be mobilised as institutional finance. The projects included under the schemes
are of three categories : (a) Remunerative projects; (b) User-charge based
projects; and (c) Basic services projects. The primary objective is to enable the
mega cities set up a Revolving Fund by the end of the Ninth Plan for sustained
investment in urban iI1!rastructure. TIll 31 March 2004, the Central share of
Rs 1,031.32 crore was released to the nodal agencies.
URBAN MAPPING SCHEME
The Urban Mapping Scheme was taken up as a pilot project during the Eighth
Five Year Plan covering 53 towns from different states. During the first Phase,
25 towns from six states were selected in consultation with respective State
Town Planning Department for coverage. The Town and Country Planning

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415

Organisation (fCPO) is entrusted with monitoring and implementation of the

scheme and the entire job of aerial photography and mapping was allotted
to the National Remote Sensing Agency (NRSA), DOS, Hyderabad. Work on
the First Phase for all the 25 towns was completed and the resultant aerial
photographs and maps were supplied to respective State Town Planning
Departments which are being used in routine urban planning functions.
As envisaged in the proposal of the Scheme, the second phase of the
Urban Mapping Scheme involving 28 towns from 19 states were approved
to be covered in the Ninth Plan period. As during the first phase, the work
of aerial photography and mapping for all the 28 towns under Phase-II was
assigned to NRSA and the aerial photography of all 28 towns and digital
mapping for 25 towns was completed. The digital mapping for the remaining
towns is expected to be completed very soon.
Besides under the scheme two towns viz., Nainital, Khammam are taken
up as pilot studies for generation of GIS database for Master Plan by TCPO
in collaboration with the concerned State Town Planning Department to
generate thematic maps and graphic data base for the development of GIS
and processing of information for use of Town Planning Departments, Local
Bodies, Development Authorities, PWD, Tax Authorities and other Sectoral
Development Agencies, as multipurpose maps.
The total estimated cost of the scheme for both the phases covering 53
towns works out to Rs 20.39 crore, out of which Rs 20.19 crore was released
as grants till March 2004.
While the physical progress in terms of coverage of towns is nearing
completion, during the Tenth Five Year Plan the Urban Mapping Scheme has
been discontinued to be subsumed under proposed Scheme, viz., National
Urban Information System (NUIS) to cover 136 towns at an estimated budget
of over Rs 60 crore.
DIRECTORATE OF ESTATES

The Estate Office was first established in 1922 as a part of the Central Public
Works Department (CPWD), and dealt with the allotment of Government
owned houses, their maintenance and the recovery of rents. During World
War pressure on the available accommodation increase beyond all proportion
due to the creation and rapid expansion of Governm,ent departments. To meet
the situation, additional office and residential buildings were build and also
private residences were requisitioned.
There was all-round increase in the Estate work. The Estate was
'separated' from CPWD towards the end of October 1944 and was established
as an independent Organisation. Consequent upon reorganisation of the Estate
Office, a new organisation was set up in September 1959 which is known as
Directorate of Estates.

The work relating to the provisions of allotment of office and residential

accommodation in Kolkata and Mumbai was transferred &om CPWD to the

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416

Estate Office. These offices were set up to cater the needs of Central
Government Offices and staff located there. Subsequently, other regional
stations viz., Shimla, Chennai, Nagpur, Faridabad, Ghaziabad and Chandigarh,
branch offices of Directorate of Estates were set up to cater to the need for
estate function. Under the charge of CPWD, on behalf of Directorate of Estates,
are the Offices at Bangalore, Indore, Hyderabad, Shillong, Agartala, Imphal,
Kohima, Cochin, Kanpur, Lucknow, Allahabad, Rajkot, Jaipur, Mysore, Chennai,
Dehradun, Varanasi, Guwahati, Sikkim and Srinagar.
The present functions of the Directorate are, Administration of Government
Estate (Residential/office accommodation) at New Delhi and 33,345 units at
regional stations. It has office space of 1,25,41,688 sq ft under its control, out
of which an area of 77,86,000 sq ft is in Delhi. Also Administers Requisitioning
and Acquisition of Immovable Property Act, 1952, Public Premises (Eviction
of Unauthorised Occupants) Act, 1971, Allotment of accommodation in Vigyan
Bhavan and Vigyan Bhavan Annexc; Control of Holiday Homes at Shimla,
Kanyakumari, Arnarkantak, Mysore and Touring Officers Gust Houses at
Kolkata, Mumbai, Bangalore, Chennai, Thiruvananthapuram, Lucknow and
Delhi. Administration of Markets/Shops in Government colonies in Delhi,
Faridabad, Ghaziabad, Mumbai and Nagpur; and realisation of Licence fee
from all allottees.
CENTRAL PUBLIC WORKS DEPARTMENT
The CPWD is the premier multi-disciplinary construction agency of the
Government having fit'ld units located all over India, to take up construction
and maintenance works even in the remotest parts of the country. The
department is responsible for construction and maintenance of Central
Government building and other capital assets except those relating to some
Central departments who have their own engineering setups such as Railways,
Communication, Atomic Energy, Defence, etc. Besides performing many
regulatory functions it offers integrated Construction Management Services
from project concept to completion and maintenance management in the postconstruction stage with few equals in the country.
The Director General (Works) is the Principal Technical Adviser to the
Government and heads the department of more than 5,000 skilled Civil and
Electrical Engineers, Architects and Horticulturists. The work load of CPWD
is rising speedily over the years and the projected workload for the year is
above R., 35 billion.
The genesis of CPWD can be traced back to the year 1854 when the
then Governor General of India approved of the concept, of a separate Public
Works Department. Ajmer Provincial Division was one of the first divisions
to be created in 1863 and some of the first works entrusted to it related to
the work of famine relief besides the construction of Mayo College at Ajmer.
In its present form the CPWD came into existence in 1930.
The CPWD played a key role in the making of infrastructure for shifting

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417

the national capital from Calcutta to Delhi. In post Independence era the
activities of CPWD have grown steadily over the years. The department has
participated very actively in the nation's development process and has
contributed to the creation of social and physical infrastructure in virtually
all sectors of development. It has created some timeless masterpieces of
architecture such as Rashtrapati Bhawan, North and South Block, Parliament
House, India Gate, Supreme Court of India, National Museum and National
Archives in Delhi, to name a few. While on one hand it executes Border
Fencing, Border flood lighting and Road projects in difficult terrain and under
hostile conditions along the Indo-Pak and Indo-Bangladesh border on the
other hand it executes state of the art projects such as Parliament Library
Building and provides specialised lighting for the world famous Ajanta caves.
With Total Quality Assurance for all types of structure the CPWD renders
l'onsultancy in the field planning and design and also takes up supervision
through its Consultancy Wing for PSUs, Autonomous bodies, Co-operative
Societies and for projects abroad.
Development of comprehensive Manuals on codal formalities and works
procedures incorporating directives of the Government on financial matters,
~tandardised Schedule and Analysis of Rates, Specifications and Contract
documents, Standard Plinth Area Rates for approved Construction and
Maintenance norms and other documentation and development of procedures
for execution of public works is the sole domain of CPWD. Both private and
public sector construction agencies adopt the procedure evolved by the
department.
The department introduced first ever Interactive Voice Response System
for registering and monitoring of service requirements of residents of
Government accommodation in New Delhi. Residents can now lodge their
requirements 24 hours a day on phone or on Internet. The service is available
at http://cpwdsewa.nic.in.
NATIONAL CAPITAL REGION PLANNING BOARD
The National Capital Region Planning Board (NCRPB) was constituted under
the NCR Planning Board Act, 1985 enacted by the Parliament with the
concurrence of the legislatures of the States of Haryana, Rajasthan and Uttar
Pradesh. It has the mandate for preparing a plan for the development of the
National Capital Region. The NCR with an area of 30,242 sq km covers the
whole of NeT Delhi and parts of Haryana, Rajasthan and Uttar Pradesh. The
Board had prepared Regional Plan 2001 for NCR and is coordinating the
enforcement and implementation of the Regional Plan, Functional Plans and
Sub-Regional Plans. Uttar Pradesh and Rajasthan have prepared the Subregional Plans for their sub-regions which were approved by the Board. The
Board has also prepared Functional Plans for transport, power, telecom and
industry sector. The Board has initiated the process of preparing a Regional
Plan for the perspective year 2021.

4]8

India 2005

For the development of the region, the Board approved 182 residential,
industrial, commercial and infrastructure projects with an estimated cost of
Rs 6,785.51 crore. The Board sanctioned a loan amount of Rs 3,435.83 crore
out of which R<; 1,655.79 crore were released up to March 2004 to Haryana,
Rajasthan and Uttar Pradesh and four Counter Magnet Areas including
Gwalior, Patiala, Kota and Bareilly. The State Governments incurred an
expenditure of Rs 2,696.80 crore up to December 2003.
NATIONAL BUILDING CONSTRUCTION CORPORATION LIMITED
The National Building Construction Corporation (NBCC) was incorporated as
a Public Sector Undertaking in November 1960. Its main line of business is
execution of Civil Engineering Projects, rendering of Consultancy Services and
Devdopment of Real Estate Projects.
Beginning with a turnover of Rs 52,000 in the year 1960, NBCC today
is a Rs 650 crore company and its activities are spread all around the country
and abroad.
NBCC is one of the largest Indian Company having to its credit
completion of large value projects of diverse nature. NBCC has hosted its
Website both in Hindi and English with the domain name www.nbccindia.com
on the Internet to provide latest information to its customers.
ISO Upgradation: During the year 2003, NBCC has successfully upgraded
the existing ISO 9001 : 1994 version for Consultancy and Project Management
Group to ISO 9001 : 2000 version valid up to 29 March 2005 as per mandatory
requirement of ISO.
Disinvestment of NBCC : The Disinvestment Commission recommended the
disinvestment of NBCC up to 74 per cent equity held by government of India
to be sold to a strategic partner through the competitive bidding route.
However, since the company started improving its performance and is
attempting to be competive, government agreed to retain atleast 26 per cent
share for a minimum period of three years.

LEGISLATIONS
DELHI RENT ACT, 1995
Delhi Rent Act was enacted on 22 August 1995 primarily with a view to
balance the interests of the landlord and the tenants. However, the Act could
not be brought into force on time. On detailed examination it was decided
to bring the Act into force after effecting amendments to some of its provisiOns.
The Delhi Rent (Amendment) Bill, 1997 was introduced in the Rajya Sabha
on 28 July 1997. The Bill was then referred to the Parliamentary Standing
Committee on Urban and Rural Development for examination and report. The
Committee examined the Bill from time to time but it could not finalise its
report, as there were changes in the Government. The Parliamentary Standing
Committee on Urban and Rural Development of the 13th Lok Sabha examined

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419

the Bill again and submitted its report to the Parliament on 21 December 2000.
The Government considered the Report of the Committee and accepted all
the recommendations of the Committee. Now the Bill is pending before the
Rajya Sabha and is to be placed before the Cabinet for taking a view on the
matter.

DELHI APARTMENT OWNERSHIP ACT, 1986

Delhi Apartment Ownership Act, 1986 came into force from 1 December 1987.
The Act was found to be ineffective as it lacked penal provisions. Suggestions
for major amendments and revisions came from various quarters. After
examining the matter in detail and taking into account various factors, it was
decided by the Government to repeal the Delhi Apartment Ownership Act,
1986 and introduce the Delhi Apartment Ownership Bill in lieu thereof. The
Delhi Apartment Ownership Bill, 2001 was introduced in the Lok Sabha on
24 July 2001. The Bill was, thereafter, referred to the Standing Committee on
Urban and Rural Development for examination and report. The Committee
submitted its report to the Parliament on 17 December 2002 suggesting some
changes in the Bill. The matter was considered by the government and steps
were taken to finalise the Amendments with the approval of the Cabinet and
then place the matter before the Lok Sabha where the Bill was pending.
However, in the meanwhile the 13th Lok Sabha Was dissolved in February
2004. With this, tht~ Delhi Apartment Ownership Bill, 2001 introduced in the
Lok Sabha on 24 July 2001 has since lapsed.

MODEL RENT CONTROL LEGISLATION

A Model Rent Control Legislation was formulated and tabled in the Parliament
on 14 July 1992. This was circulated among the State Governments/Union
ierritories for amending their existing Rent Control Laws or enacting new
rent acts on the lines of the Model Rent Control Legislation. Various State
Governments/Union Territories are considering amendments to their respective
Acts. The Government of Maharashtra, Karnataka and West Bengal have
enacted new Act for their respective States. The government of Rajasthan has
finalised the Rent Control Law and is expected to notify the Act shortly.

DELHI REAL ESTATE DEVELOPERS REGULATION BILL

The government is examining a proposal to have a legislation in order to
regulate construction and sale of apartment, development of colonies and
activities of promoters, builders and the estate agents of the Ncr of Delhi.

URBAN LAND (CEILING AND REGULATION) ACT, 1976

The Urban Land (Ceiling and Regulation) Act came into force on 17 February
1976. The Act was repeated through an Ordinance on 11 January 1999 followed
by Urban Land (Ceiling and Regulation) Repeal Act, 1999 in replacement of
the Ordinance. The Urban Land (Ceiling and Regulation) Repeal Act, 1999
was notified in the Gazette on 22 March 1999. The repeal Act is adopted by

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India 2005

Haryana, Punjab, Uttar Pradesh, Gujarat, Karnataka, Madhya Pradesh,

Rajasthan and all the Union Territories. Guidelines are also issued to all the
State Governments and UTs emphasising the need for imposition of vacant
land tax on the land likely to be made available after the repeal of the Act
and also providing for EWS/ LlG category houses while sanctioning hOUSing
projects.
NATIONAL URBAN OBSERVATORY
The United Nations Centrt' for Human Settlements (UNCHS) had examined
the status of human settlements across the world in Habitat II Conference
held in Istanbul in 1996. The 171 member c(luntries, including India, adopted
thl' Habitat Agenda. The Conference noted that Habitat related information
is not adequately available on account of which formulation of policies and
planning efforts suffl~r. As d follow up, UNCHS in dose partnership with
UNDP, World Bank and other organisations conceived an Urban Indicators
Programme (UIP) to develop a uniform set of urban indicators using relatively
comparable methodology across the world. The Programme also envisages
setting up of system of UrbilJl Observatories at Local Level (LUO), National
Level (NUO), Regional Level (fWO) and Global level (GUO).
With a view to implement the Habitat Agenda, the Government decided
to locate the National Urban Observatory in Town and Country Planning
Organisation (TCPO). TCPO in turn had drawn up a phased programme of
action. In the first inst,mcc, it was decided to take up pilot studies for selected
urban centres to assess the range and pcriodicity of data available, to identify
data gaps and develop ., comparative profile of urban indicators. In the first
phase (2001-02), TCPO had conducted studies for 12 towns by assigning pilot
studies to various agencies. In the second phase (2002-03), TepO had assigned
studies for 22 towns to another 11 agencies which are nearing completion.

17

India and the World

THE main thrust of India's foreign policy has been to establish its rightful
place in the emerging world order. Pragmatism and the pursuit of national
interest without compromising on basic principles have been the guiding
tenets of India's foreign policy. In a rapidly changing world order, foreign
policy must be flexible enough to optimally respond to new challenges and
opportunities. India's foreign policy cannot be seen in isolation and must be
viewed as an integral part of the larger effort of building the nation's
capabilities through economic development, strengthening social well-being
clnd protecting India's sovereignty, territorial integrity and security not only
in its defence and economic aspects but in the widest sense of the term. It
also visualises international peace, stability and security as being essentially
in conjunction with its own national interest.
This year has been a high point of Indian diplomacy in terms of the
bilateral and multilateral meetings an'd exchanges that have taken place at
the highest levels between India and the rest of the world. Given the backdrop
of the changing international scenario, India's foreign policy is directed
towards realisation of the following objectives : i) To protect India's core
national interests by fostering support and understanding in the international
community; ii) To preserve the autonomy of the decision making process;
iii) To strengthen the international campaign against terrorism; iv) To give
greater focus and priority to economic diplomacy with the objective of
promoting foreign trade and investment; v) To work closely with P-5 countries
and to build strategic ties with the other major powers and leading developing
countries; vi) To intensify and strengthen ties with neighbours through
mutually beneficial cooperation. The realisation of SAARC as a more vibrant
regional forum leading to an economic integration of the region is a desired
goal; vii) To ensure that cross-border terrorism is brought to an end; viii) To
strengthen cooperation, friendship and trust with countries of India's extended
neighbourhood; viii) To further the gains from India's Look East Policy and
aspire for substantive progress in several areas of common interest to India
and ASEAN; ix) To constructively engage other members of multilateral
institution., and organisations to generate common approaches to contemporary
challenges relating to economic well-being and ~evelopment; x) To leverage
trends towards regionalism and sub-regionalism and promoting economic
growth and all-round development with active coordination and assistan~
to organisations like BIMST-EC and the Mekong Ganga Cooperation; xi) To
continue to work closely with international bodies like the UN, NAM, the
Commonwealth .and regional groupings like the EU and G-20 for furthering
India's interests in the international arena; xii) To reform and restructure the
UN Security Council and espouse multipolarity in a world order that respects
and principles of sovereignty and non-intervention; xiii) To promote a more
equitable equation between the developed and the developing world; xiv) To

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work towards the goal of global nuclear disarmament; xv) To closely interact
with tht, Indian Diaspora to strengthen their bonds with India and to recognise
their pivotal role in India's international relations.
The conduct of India's foreign policy is based on a holistic assessment
that l'ncompasses all the above objectives, and also imparts a greater
dynamism to its foreign policy. The increasing pace of bilatt'ral and regional
engagements at the highest levels are an ample testimony to the pragmatism
and pro-active approach it sceks to epitomize. India's foreign policy is aimed
at a vision for the future, a vision that seeks to establish India's deserved place
in the international arena.

INDIA'S NEIGHBOURS
Bhutan and India share extensive and mutually beneficial bilateral relations.
There is free movement of peoplt' and goods between the two countries, and
the Indian Rupee is legal tender in Bhutan. 90 per cent of Bhutan's global
trade is with India. India has played a pivotal role in the socio-economic
development of Bhutan. Bhutan's first two Five Year Plans during 1961-66 and
1966-71 were financed entirely by India. India's contribution to Bhutan's
development budget during 1961 to 2002 is c1os~' to 30 per cent. Indian
assistance to Bhutan's ongoing Ninth Five Year Plan is continuing. India has
already created over 400 MW of generation capacity in Bhutan that is also
catering to the needs of India. The Tala mega project of 1020 MW capacity
will come on stream in early 2006, and will export power to India. India signed
an agreement with Bhutan in Septt'mbcr 2003 to prepare the Detailed Project
Report (OrR) of Punatsangchhuk Hydro-electric Project with a capacity of 900
MW. On 15 December 2003, Royal Government of Bhutan launched its
operations against Indian insurgent groups, which had taken refuge in Bhutan.
Thirty camps of the militants were destroyed in this operation.
India and Nepal share extensive bilateral relations. As open border of
1860 kms between the two countries facilitates free movement of goods and
people. Indian Rupee is a legal tender in Nepal. Over 62 per cent of Nepal's
global trade is with India, and nearly half of the Foreign Direct Investment
in Nepal originates from India. India is building an optical fibre cable along
the Nepalese Terai, which will bring significant improvement in bilateral
communications. The National Hydro Power Corporation of India on a Build,
Own, Operate and Transfer (BOOT) basis, has taken up the 300 MW upper
Kamali hydro-electric project. India has also agreed to prepare the Detailed
Project Report on the 600 MW Burhi Gandaki for possible implementation
in the future. Nepal has assured India that it will not allow its territory to
be used for activities inimical to India's interests. Nepal has been a victim
of Maoist insurgency for the last seven years. India has condemned the Maoist
violence and continues to extend assistance for the strengthening of the
Nepalese security forces.
India has dose ties with its eastern and southern neighbours, Bangladesh,

India and the World

423

Maldives, Myanmar and Sri Lanka. All these countries are of strategic
importance to India and share cultural and ethnic legacies. India has focused
on strengthening its relations with these countries through economic
cooperation. This includes grant of unilateal tariff concessions to Bangladesh,
collaborative projects including implementation of infrastructure development
projects in Myanmar, cooperation in health, education and tourism sectors in
Maldives, and close economic integration with Sri Lanka.
Interaction with China, which is based on the principles of Panchsheel,
mutual sensitivity to each other's concerns and equality, has developed due
to a mutual agreement to qualitatively enhance bilateral interaction while
simultaneously addressing differences through dialogue and peaceful means.
The commitment to build a broad-based and cooperative relationship with
China was further emphasised in 2003-04 following the Prime Minister's visit
to Chma from 22-27 June 2003.
Apart from Prime Minister, other high IE:'vel visits to China included that
of the Speaker of Lok Sabha, Defence Minister and External Affairs Minister.
Minister for Commerce and Industry also visited China for the inauguration
of the 'Made in India' Show organised jointly by the Embassy of India and
the Cll. High-level visits from China included those of the Chairman of the
Chinese People's Political Consultative Committee (CPPCC), Jia Qinglin, and
Politburo Member, He Guoqiang. A Dialogue on Policy Planing and annual
meetings at the Foreign Minister level were added this year to the framework
of structured interaction with China. Interaction with China in diverse sectors,
including defence, bilateral trade and economic cooperation progressed
during the year.
India continued with its effort to develop a relationship of mutual trust,
friendship and cooperation with Pakistan. In keeping with this spirit, in April
2003, once again a hand of friendship was extended to Pakistan. Following
this, there were several significant developments, including restoration of
relations at the level of High Commissioners, restoration of communication
and transport links, and a virtual explosion in people to people contacts
between the two countries. At the same time it was made clear to Pakistan
that sustainability of the process required an end to cross border terrorism.
In the Joint Press Statement issued on 6 January 2004, President
Musharraf reassured the Indian Prime Minister Manmohan Singh that he will
not permit any territory under Pakistan's control to be used to support
terrorism in any manner. The two sides agreed to commence the process of.
the Composite Dialogue. Subsequently, in February 2004, the two sides agreed
to a schedule of meetings including eight subjects under the Composite
Dialogue.
A ceasefire along the International Border, Line of Control, and the
Actual Ground Position Line in Jammu and Kashmir, which is being observed
since 25 November 2003 has continued to hold. Though there is some d~line

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India 2005

in cross border infiltration, Pakistan is yet to take credible steps to dismantle

the infrastructure of support to terrorism.
India remains committed to build upon the confidence that is generated
by recent developmt!nts in bilateral relations. However, in order to take
forward and sustain the dialogue process, violence, terrorism and hostility
must be prevented.
India-Afghanistan ties continued to expand and strengthen during 200304. There were regular bilateral exchanges. Thf.:' government made substantial
contribution to Afghanistan's reconstruction effort, .... hieh includes a wide
range of humanitarian, financial and project assistance. India's present
commitment adds up to US$ 400 million, including one million tonnes of
wheat as Food Assistance. Of the US$ 100 million financial assistance,
US$ 85 million has already been operationalised. India also continued to
participate in various international efforts aimed at addr\..'ssing political and
reconstruction issues in Afghanistan.
Following the visit of President Seyyed Mohammad Khatami, India and
Iran agreed to impart a strategic character to their relationship on the basis
of the vision contained in the New Delhi Declaration. Regular high-level
exchanges, strategic dialogue and institutional linkages between the two
countries have led to enhanced mutual understanding between the two
countries. Fields of energy, transit, trade and economy and science and
technology are among the focused areas of bilateral cooperation.
SAARC
The 12th SAARC Summit held at Islamabad from 4-6 January 2004 was a
milestone in regional cooperation. Three important Agreements were signed
at the Summit: the SAARC Social Charter, the Additional Protocol in Terrorism
and the Framework Agreement on South Asian Free Trade Areas (SAFTA).
SOUTH-EAST ASIA AND THE PACIFIC
India continued to pursue closer relations with South East Asia in line with
the 'Look East' policy. Regular exchange of high-level visits and interactions
at regional and international fora helped in imparting added dynamism to
India's relations with these countries. Indian Prime Minister visited Thailand
from 8-12 October 2003 following his visit to Bali, Indonesia, where he
attended the Second India-ASEAN Summit. Prime Minister of Singapore,
General Secretary of the Communist Party of Vietnam, and Prime Minister
of Laos visited India during the year. The initiatives taken by India at the
Second India-ASEAN Summit confirmed its commitment to forge closer links
at the regional level. As far as the Pacific region is concerned, follOWing India's
admission as a dialogue partner of the Pacific Islands Forum (PIF), India
participated for the first time in the Post Forum Dialogue Meetings with the
PIF in Wellington in August 2003.

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425

EAST ASIA
This year saw progress in bilateral relations between India and Japan, in
pursuance of India's continuing efforts to operationalise the "India-Japan
Global Partnership in the 21st Century" agreed to between the two Prime
Ministers in August 2000. Apart from various high-level visits, including those
of the Japanese Foreign Minister and Minister of State for Defence, and India's
National Security Advisor and Minister for Disinvestment, Communications
and IT, two rounds of Foreign Office Consultations were held as well as the
second round of the Indian-Japan Comprehensive Security Dialogue. The first
Indian IT exhibition was held in Japan in June, and various events were
organised to mark the 100th anniversary of the establishment of the Indo],lpanese Association, which has a long history of promoting exchanges
bl'twE:en Indian and Japan.
On 10 December 2003, India and Republic of Korea (ROK) celebrated
the 30th anniversary of the establishment of diplomatic relations. Bilateral
rl'iatinns also progressed during 2003-04, including the Fourth India-ROK Joint
Trade Committee Meeting co-chaired by the Indian Minister for Commerce
dnd Industry, the second meeting of the India-ROK Joint Commission at the
Foreign Ministers level, and other high-level visits and functional exchanges.
Bilateral relations with Democratic People's Republic of Korea (DPRK)
continued on an even key, including commemorative activities to mark the
30th anniversary of establishment of diplomatic relations between India and
DPRK. Foreign Office Consultations were held and the Cultural Exchange
Programme (CEP) between the two countries for the period 2003-2006 was
renewed.
CENTRAL ASIA

Various high-level visits, including that of Minister of State for External Affairs
to Mongolia, and that of the Mongolian Prime Minister and Defence Minister
to India, served to give new impetus to India's relationship with Mongolia
in 2003-04.
Prime Minister's visit to Tajikistan in November 2003 was the first such
high lew I visit to independent Tajikistan. In September 2003, Prime Minister
visited Turkey, the earlier such visit being in 1988. The President of Kyrgyzstan
visited India in November 2003. These visits are witness to India's commitment
and engagement in the region. A number of other visits at political, business
and cultural levels were exchanged to accelerate the momentum of India's
relationship. India is now connected by air links with Thrkey, and with each
of the Central Asian states. All the Central Asian states also have diplomatic
missions in New Delhi now. Trade relations as also people-to-pt.'Ople contacts
hdVC shown a steady progress during the period.
rt-IE GULF, WEST ASIA AND NORTH AFRICA

Ilw Culf region constitutes an important"area in the geo-strategic matrix of

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India 2005

India since it meets sixty per cent of India's oil requirements and has a
3.5 million strong Indian Diaspora contributing to India's foreign exchange
reserve through their remittances. The political dialogue with Gulf Cooperation
Council (CeC), initiated in September 2003 at Foreign Minister's level, and
the GCC-India Industrial Conference held in Mumbai in February 2004 with
the participation of members from all the six GCC countries go a long way
in further strengthening India's long standing relations with the region.
India's engagement with the West Asia and North Africa (WANA) region
got further consolidated by several visits exchanged at Summit and other
levl)ls. India received President of Djibouti and Prime Minister of Israel.
Similarly, the Indian President and Prime Minister paid State Visits to Sudan
and Syria respectively. In addition, ministerial delegations were received from
Egypt, Tunisia, Algeria, Israel, Sudan and Palestine. Trade and economic
intt'rchanges also continued to glow.

AFRICA (SOUTH OF SAHARA)

As part of the renewed 'Focus Africa' policy, Government took fresh initiatives
to strengthen the existing links between India and sub-Saharan African
countries. There was special focus on strengthening high-level exchanges
betwet'n the sub-Saharan African countTies and India. Heads of State /
Government from a large number of African countries including Zambia,
Mauritius, Namibia, Mozambique, Lesotho, South Africa, Senegal and Rwanda
paid successful visits to India. Joint Commission Meetings at Ministerial Level
were held with countries such as Mozambique, Kenya, Nigeria, South Africa,
Tanzania and Seychldles. Meetings at Permanent Secretary level were also
held. Tht' Vice President of India paid a State Visit to Seychelles. These visits
helped get a better understanding of the pOSition of these countries on issues
such as India's candidaturE> to the permanent membership of the expanded
UN Security Council, cross border terrorism, and Jammu and Kashmir. They
also helped to strengthen economic and commercial links with African
countries. In order to foster links with the fast emerging regional organisations
in Africa, Memoranda of Understanding for Cooperation were signed between
India and regional organisations such as Southern African Development
Community (SADC), Common Market for East and Southern African and East
African Community. As part of its traditional technical and humanitarian
assistance to Africa, the Government made arrangements for donation of
nearly 100,000 tOlmes of food aid to African countries which had been
adversely affected by drought. This is the first time ever that such a large
quantity of food aid was shipped to African countries in a single calendar
year. In addition, action was initiated to donate anti-HIV / AIDS drugs to
African countries severely affected by the scourge of AIDS. This is expected
to promote Indian exports of pharmaceuticals to African countries.

EUROPE
India's engagement with the countries in Western Europe continued to be
broad-based and intensive. Bilateral political and economic interaction was

India and the World

427

marked by an unprecedented number of exchanges of visits, demonstrating

mutual desire to consolidate a dynamic, multi-faceted relationship with the
European Union and the individual countries in Western Europe. Regular
exchange of views on the challenges facing India and the European Union,
and dialogue with key strategic partners in Western Europe, against the
backdrop of current regional and international developments, led to a better
apprcciGtion of India's legitimate concerns and, at the same time, provided
an opportunity to re-focus, strengthen and re-vitalist? bilateral ties.
cl

India's strategic partnership and its multi-dimensional cooperation with

Russia continued to be consolidated during the year 2003-04. Prime Minister's
visit to Russia in May and November 2(XJ3 gave a fresh impetus to friendly
bilateral relations. The system of summit-level meetings has provided an
annual platform to discuss international and regional issues and to review
the state of bilateral relations. These summit meetings are supported by
political and official level meetings which cover the entire gamut of India's
bilateral relationship. India has one of the largest cooperation programmes
on Sciencl:' and Technology with Russia. There is a wide-ranging energy
cooperation programme. The contract for the acquisition of the aircraft carrier,
Admiral Gorshkov was signed during the visit of the Russian Defence
Minister to India in January 2004.
Bilateral ties with Central and Eastern l:uropean countries were
stn'ngthencd in the past year, especially in the spheres of economy,
scil'ncc, technology, culture and defence. The President's visit to Bulgaria in
(ktober 2003 reinforced bilateral tilo's. Visits by Heads of State / Heads of
Covernment from Poland, Hungary, Armenia and Romania during the year
Iwlped to consolidatt:' India's bilateral relations and embark on new areas of
functional cooperation.
AMERICAS
As committed by their respective leaders since thl~ir Summit Meeting of
November 2mn, India and the United States remained ~_.eply engaged in
20(H to qualitatively transform their bilateral relations in recognition of India's
status as an emerging world power and of the many common strategic
intprests that the two countries share in Asia and beyond. The two countries
constructively engaged across a full spectrum of issues: combating international
terrorism, peacekeeping, defence strategic issues, science and technology,
health, trade, space, energy and environment. The most visible symbol of this
hilateral engagement is the high frequency of bilateral visits at political and
official levels, and the existence of Bilateral Dialogue Architecture, now
comprising more than 15 institutional dialogues.
C)

During the year, significant progress in bilateral relations between India

and the US occurred in the realm of bilateral strategic dialogue on the "Quartet
Issues" comprising cooperation in civilian space programme, civilian nuclear
programme. trade in "dual use" high-technology and missile defence. During

428

India 2005

their meeting in New York in September 2002, the Prime Minister and
President Bush agreed to explore cooperation opportunities in these areas. In
this context, the two sides have established a High Technology Cooperation
Group (HTCG), the first that the United States has with any country. This
Group met in Washington DC in July 2003 and in New Delhi in November
2003. During the HTCG meetings when the two sides agreed to take
appropriate regulatory and promotional measures to stimuJrltl' India-US hightechnology commerce, including trade in dual-use goods and technologies. An
important milestone was crossed on 12-13 January 2004, when the leaders of
the two countries issued, in their respective capitals, a joint statement that
describes the next steps in the India-United States strategic partnership.
These steps include an expansion of bilateral cooperation - "Quartet Issues".
An important element emerging in this bilateral engagement with US
has been cooperation on combating international terrorism. On 16 October
2003, the United States declared Dawood Ibrahim as a Specially Designated
Global Terrorist. The designation recognises Dawood Ibrahim's underworld
and terrorists connections, his involvement in the] 993 Mumbai bombings and
his support to LeT. This subsequently led to the inclusion of his name in the
United Nations listing as well.
The United States conveyed its appreciation of India's peace initiative
towards Pakistan. While expressing hope for normalisation of relations and
eventual resumption of the India-Pakistan dialogue, the United States maintains
that it is for the two countries to resolve <111 outstanding issues bilaterally.
The United States recognises that cross-bordl'r terrorism continues, and has
repeatedly stated that it continues to press Presidt'nt Musharraf to end
infiltration and take action to dismantle terrorist camps.
India and the United States also continued their discussions on issues
of regional and international interest, including the situation in Iraq and
Afghanistan. United States expressed its understanding ot India's position
while reiterating that India remained an important strategic partner for the
United States. The two countries also maintained their dialogue on
developments in Asia and beyond, and on multilateral issucs of mutual
concern.
A procl'ss of re-t'ngagcml'nt supported by both countries marked
relations between India and Canada. Canada identified India, together with
China, Mexico and Brazil, as one of four countries offering new opportunities
for productive partnerships, as well as one of threc countries in Asia, along
with China and Japan, for developing close ties. The highlight of the year
was the visit of then Canadian Prime Minister, Jean Chretien, from 24-2!i
October 2003. A Joint Statement was released on "Partners for the 21st
Century" outlining the vision of the Prime Minister!> of both countries to
strengthen government, commercial and civil society linkages between India
and Canada. This was pwceded bv the visil of the Canadian Foreign Minister
Bill Graham on 13 Octol'cr 200?> Visits from Canada sought to establish an

India and the World

429

expanded interface in the field of industry, information and emerging

technologies and agriculture and to broaden the scope of cooperation to the
level of State Governments in India. The traditional Throne Speech by the
Governor General of Canada, Mrs. Adrienne Clakson on 2 February 2004
reiterated greater focus on "Newly Emerging Economic Giants as China, India
and Brazil". The Canadian Minister of State for New and Emerging Markets,
Mr. Gar Knutson also visited India from 25-30 January 2004 in keeping with
this priority area of focus.
LATIN AMERICA

India's relations with Latin America and the Caribbean countries were further
widened and deepened through certain important initiatives taken in recent
months including the signing of a framework agreement with the market of
Southern Cone countries (MERCOSUR), thl' Community of ANDEAN nations
(CAN), the Caribbean Community (CARICOM) and finalisation of agrt.>t'ments
with Association of Caribbean States (ACS), Association of Central American
States (SICA) and the Rio-Group Troika, with the aim of finally entering into
free trade / preferential trade agreements with countries of this region.

UNITED NATIONS AND INTERNATIONAL ORGANISATIONS

India urged the international community to focus its attention on the threat
posed by the linkages between weapons of mass destruction and terrorism
and re-introduced its resolution, which was first tabled in 2002, on the subject
in the UN. The resolution was adopted by consensus, reflecting the widespread
concern of the global community. India continued to call for verifiable, nondiscriminatory and universal nuclear disarmament. India's sland on issues
related to disarmament and international security in various multilateral and
regional forums was premised on India's national security interests and the
nation's tradition of close engagement with the international community.
Harmonisation of India's national imperatives and security obligations with
international concerns on non-proliferation and disarmament also progrt.'Ssed
steadily through bilateral, regional and multilateral dialogues on strategic
l~sues.

The First Committee of the UNGA adopted by consensus the Resolution

moved by India on the threat posed by the linkage between weapons of mass
destruction and terrorism.

THE 58TH SESSION OF GENERAL ASSEMBLY

India continued to play an active role in UN debates on major issues. As a
major troop contributor, India continued to participate in UN Peace Keeping
Operations. Prime Minister led the Indian delegation to the 58th session of
the UN General Assembly, and inter alia, stressed the necessity for reform
and restructuring of the UN. While emphasising the need for evolving suitable
decision-making mechanisms by the UN Security Council to ensure better
representation of the collective will of the international community. the Prime

430

India 2005

Minister strongly supportl'd the UN Secn'tary General's call for the reform
of the institutions and processes of the Unitl'd Nations and the urgency for
such a rl'fonn.
India continued to play a significant and constmctivl' role in the UN
activities in economic, social and developmental areas. India actively
participatl"d in thl' debates on environment and sustainable development,
Convt'ntion against Cormption, humanitarian issues and human rights issues.
'Jt'rrorism. Afghanistan, Middle East Peace Process, conflicts in Africa, were
SOIllt:' of the other issues that remained in the forefront.
During the year India continued its active role in advancing the
legitimate interests of developing countries in various international organisations
and multilateral, regional and suh-regional groupings. India also intensified
its interaction with the Association of South East Asian Nations (ASEAN);
Bangladesh, India, Myanmar, Sri Lanka, Thailand-Economic Cooperation
(BIMST-EC), which now also includes Bhutan and Nepal as full members;
Mekong-Ganga Cooperation (MGC) initiative; Indian Ocean Rim-Association
for Regional Cooperation (lOR-ARC); and Community of Eastern and Southern
Africa (COMESA).
INDIA-BRAZIL-SOUTH AFRICA (lBSA) DIALOGUE FORUM
first meeting of the Trilateral Commission of the IBSA Dialogue Forum was
held in New Delhi from 4-5 March 2004. The IBSA Dialogue Fomm was
established in June 2003, when the three foreign Ministers (India, Brazil and
South Africa) nwt ill Brasilia and adopted the Brasilia Declaration. It was the
first time that three major countries of tht' South representing three continents
carne together to promote cooperation amongst themsdvt's in diverse fields
dnd to voicL' jointly the dl'mands and concerns of the South.
FOREIGN ECONOMIC RELATIONS, TRADE AND INVESTMENT
PROMOTION
The year was marked by a number of successes in multilateral economic
diplomacy, sllch as, thl' Fr,lTn('work Agreement for Comprehensive Economic
Cooperation signl'd by tlw Il'aders of the ASEAN and India at the Second
lndia-ASEAN Summit in Bali on R October 2003. 111e Framework Agreement
envisages tlw l'stablishment of an India-ASEAN Regional Trade and Investment
Area, which includts a Free Trade Area in goods, services and investment.
Negotiations on the Free Trade Area in goods have commenced and are to
be completl'd by Jline 2005. For trade in services and investments, the
negotiations on the respective agreements are to commence in 2005 and be
concluded by 2007.
During the India-ASEAN Summit meeting in Bali, Prime Minister
proposed an India-ASEAN motor car rally, the setting up of vocational/
entrepreneurship development centres in Cambodia, Lao PDR, Myanmar and
Vietnam and developing an lndia-ASEAN Vision 2020 document.

India and the World

431

Similarly, in BIMST-EC, the high point of cooperation was the signing

of the Framework Agreement for the BIMST-EC FTA in Phuket on 8 February
2004 by all member countries except Bangladesh, which is also expected to
join the Agreement in the near future.
TECHNICAL COOPERATION
HMT (International) has completed delivery of all the machines, spare parts
and supplies to the project site for revival of Nigeria Machine Tool (NMT)
in Nigeria (Osogbo) as a G-15 project. Actual installation and on-the-job
training programmes will be undertaken as soon as NMT provides local
inputs. The project is funded through the grant of US$ Five million from India.
Another project for setting up a toxicology laboratory at the University of
Kingston, Jamaica, is currently under implementation.
Efforts to improve physical connectivity between India and Southeast
Asia are also underway. Under the MGC the establishment of a rail link

between New Delhi and Hanoi has been mooted. As a first step, the Rail India
Technical and Economic Services (RITES) Ltd. is assigned to undertake the
pre-feasibility study of laying the missing link of about 315 km between
Jiribam (India) and Kalay (Myanmar) and upgrading the existing railway
section in Myanmar from Kalay to Mandalay. India has also offered to
undertake a feasibility study on Dawei Deep Sea Port in Myanmar and the
road linkage between the Port and Kanchanaburi in Thailand.
Ministry of External Affairs attaches great importance to economic
diplomacy in this age of globalisation to protect and promote its economic
and commercial interests. It works actively with the Indian business and
chambers in this context. The Ministry has started organising a number of
events and activities to actively seek foreign investment into India. It is
projecting among global investors, businessmen, leaders, and opinion makers
the image of the new India, which is becoming an emerging econorrtic power.
POLICY PLANNING
During the year, the Policy Planning and Research Division of the Ministry
continued its interaction with several academic and non-governmental
organisations, and provided financial assistance to academic bodies and
organisations for holding seminars and undertaking research studies on
matters of foreign policy.
EXTERNAL PUBLICITY
The External Publicity Division continued its task of projecting India and its
viewpoint on major issues of foreign policy concern. The Spokesperson held
regular press briefings for Indian and foreign media. The Ministry's new
website (meaindia.nic.in), updated daily, was launched. Information showcasing
India was disseminated through films, documentaries, publications, books and
the Ministry's flagship monthly magazine "India Perspectives". Media

432

India 2005

,lrrangements were made for incoming and outgoing visits at the level of
President, Vice President, Prime Minister and External Affairs Minister.
CONSULAR SERVICES
The Ministrv continued its efforts to provide user-friendly and efficient
services in thl' .1(1 pas"'port offices in India, as well as in the consular wings
of the Missions and Posts abroad. Total nurnbt'T' of services including fresh
passports ,llld miscellaneous services rendered bv the passport offices in the
country during 20tH stood at 3.2H million from 3.01 million in 2002, an increase
of nine Pt'!' cent. A new pclssport office was opened at Surat in August 2003,
increasing the number of passport offices in the country to 30.

With a view to dl'centralise issuance of passports, District Passport Celb

(DPes) are opened in a large number of districts in several states. This scheme,
which was introduccd in 2002, accounted for almost 10 per Ctmt of the
applicatiolls, submith'd in 2()03. The figures are expected to increase in till'
coming years, dS there c1rl' plans to open more DPCs. All passport offices art'
fully computerised.
NON-RESIDENT INDIANS AND PEOPLE OF INDIAN ORIGIN
A major initiative undert,lkcn to engage with the Indian Diaspora was thl'
organiscltion of Pravasi Bhilrdtiya DivdS in New Delhi from 9-11 January 200:1.
Over 1900 overseas Indians (rom 61 countries participated in the celebrations.
In his inaugural address, the Prime Minister announced Government's
decision to pl'!'mit du,tl citizenship to the People of Indian Origin (PIOs) living
in certain countries. The 'f'ravasi Bhill'iltiya Samman' Awards were confirmed
for the first time by the Prime Minister on 9 January 2003 on 10 prominent
persons of the overseas Indiiln community in recognition of their valuable
contribution in promoting the honour dnd prestige of India and in fostering
the interests of OVl'rscas Indians.
The Bill on Dual Citizl'Ilship W,l'i passed in the Parliament in December
2003. The Second Pravasi Bhill'atiya Divas was held in New Delhi on 9-11
January 2004. Delegates from 61 countries participated in the event, and 12
eminent Peopk of Indian Origin were awarded the '!'ravasi Bharatiya
Samman' Prime Minister announced setting up of a Pravasi Bharatiya Kendra
in New Delhi and reservation of St',lts for children of NRIs and PIDs in
Educational Institutions.
FOREIGN SERVICE INSTITUTE
The Foreign Service Institute (FSI) continued in its endeavour to train foreign
diplomats, apart from training of IFS Probationers illld other Ministry of
External Affairs offici<lls. Three Professional Courses for Foreign Diplomats,
.tll 'Advanced Course un Asia for foreign Diplomats' and three separate
'Special C:ourses' for Diploflhlts from Afghanistcln, Lao PDR and Iraq were
conducted.

India and the World

433

PROPAGATION OF HINDI ABROAD

The signing of an agreement between India and Mauritius OIl 21 November

2003, during the visit of the Mauritian Prime Minister to India, on the
establishment of World Hindi Secretariat at Port Louis, was another milestone
in India's endeavour to promote and propagate Hindi. Hindi teachers were
"ppointed in 28 Missions/Posts abroad to teach Hindi to the children of
Frnbdssy and other officials. Computers in the Ministry and in Missions
abroad are made bilingual to equip them to issue bilingual documents, such
as bilateral treaties, MoUs, Credentials, Speeches of President and Prime
Minister.
CULTURAL RELATIONS

The Indian Council for Cultural Relations (lCCR), established in the year 1950,
is functioning as the cultural wing of the Ministry of External Affairs for
furthering the objectives and mandate of India's foreign policy. The ICCR's
mIt' is significant in view of the importance of "cultural diplomacy" for
strengtlwning tht:' cultural relations among the nations. The ICCR is trying
to create awareness about India and its rich cultural heritage among the people
of other countries.
INDIAN COUNCIL OF WORLD AFFAIRS

The Indian Council of World Affairs (Amendment) Act 2003 was passed on
H January 2004. In consonance with the objects of the Indian Council of World

Affairs Act, lCWA carried on its various activities by organising special

addresses, seminars and meetings on important world affairs.
HIGHLIGHTS OF THE YEAR

Pro-active Engagement with Neighbours : The signing of an agreement on

South Asian Free Trade Area (SAFTA) at the 12th SAARC Summit in
Islamabad. The historic Summit also saw the signing of the Social Charter
and the conclusion of an Additional Protocol to the SAARC Convention on
Terrorism. The Islamabad Declaration emphasises the awakening of South
Asia to the benefits of regionalism and coming together with a joint economic
tlnd social agenda to effectively help in the economic integration of the seven
countries; Achieving normalisation of relations with Pakistan, with significant
CBMs to strengthen the process of a composite di~logue that would eventually
lead to the peaCt'lui settlement of all bilateral issues; For the first time in IndiaChina relations, signing of n Joint Declaration that confirms the commitment.
of the two countries to work more closely on issues of common concern. Both
the governments have appointed Special Representatives for working out a
time bound settlt'ment of the boundary issues; Military action initiated by the
Royal Bhutanese Government at India's request, to flush out and destroy all
thl' militant camps operating from Bhutanese soil that were engaged in
insurgency in India's North-East; Establishment of an Institutional Dialogue
on key issues relating to border mcmagement with Bangladesh at the security

434

India 2005

forces level to prevent illegal immigration at the border; Signing of the BIMSTEC Framework Agreement for Free Trade Area. This would be a major step
towards greater economic linkages in Asia and a bridge connecting South Asia
with South East Asia; and the third Mekong-Ganga Cooperation (MGC)
Ministerial Meeting emphasised the need to augment India's physical and
cultural connectivity with the region. A project for the construction of a 1,360
km long Trilateral Highway from Moreh in India via Bagan in Myanmar to
Mae Sot in Thailand is being undertaken.
Diversified Global Diplomatic Interests : India was a special invitee at the
G-8 'Enlarged Dialogue' at Evian, France where India emphasised that the
Dialogue should serve as a useful forum of communication at the highest level
between the developed and the developing world; Initiation of a Strategic
Dialogue with the US on 'Quartet Issues' with special focus on civilian nuclear
activities, high-tech trade involving dual use technologies, civilian space
programme and missile defence; The first ever State Visit by an Israeli Head
of State, Mr. Ariel Sharon that saw the culmination of major agreements
between the two countries. Indo-Israeli Defence Cooperation also included the
signing of an agreement on the supply of Phalcon airborne early warning
systems to India; Indian diplomacy's concrete and unique initiative to engage
with eight oil and mineral rich Western African countries under an
institutionalised mechanism of 1echno-Economic Approach for Africa-India
(TEAM-9). This saw the unilateral pledging by India of US$ 500 million for
bilateral and regional projects in economic and social sectors; The first ever
visit of an Indian Prime Minister to Tajikistan that saw the signing of a Joint
Declaration of Friendship and Cooperation and an economic package of
US$ 40 million to Tajikistan; One of the most active players in reconstruction
work in Afghanistan, India extended an aid package of US$ 400 million along
with the refurbishing of hospitals and providing health care services, as well
as a major project involving linking of roads; The second India-ASEAN
Summit at Bali witnessed a consolidation of relations with Southeast Asia and
identification of cooperation in core areas; The Fourth India-EU Summit at
New Delhi identified areas for greater cooperation between India and Europe
in several key issues.
Economic Diplomacy: India's vision to promote South Asia as an integrated
economic region saw the culmination of the agreement on SAFTA, and the
acceptance of a proposed South Asian Economic Union and a Common
Currency by 2015; The finalisation of the Framework Agreement on Economic
Cooperation between India and ASEAN that recognises South East Asia as
India's natural trading frontier; The signing of the New Delhi Plan of Action
at the first ever meeting of the Trilateral Commission of the India-Brazil-South
Africa (IBSA) Dialogue Forum with a vision to promote South-South cooperation
as well as trilateral cooperation, in accordance with the objectives set forth
in the Brasilia Declaration; The establishment of a Liberalised Trade Regime
(LTR) with Sri Lanka under which India has also unilaterally extended a
US$ 100 million line of credit; and The conclusion of a Framework Agreement

India and the World

435

for establishing a Free Trade Arl'd with Thailand, and the commencement of
discussions for a Free Trade Area with Bangladesh.
International Security and Combating Terrorism : India's insistence on
bringing stability and normalcy in Iraq under the aegis of the United Nations
and an emphasis on preserving the territorial integrity of Iraq; Signing of the
Treaty of Amity and Cooperation (TAC) with ASEAN during the Bali Summit
demonstrating India's strong determination to establish peace and security in
the South East Asian region; Active participation in eleven out of thl.:' fifteen
ongoing UN Peace Keeping Operations around the world; A sl'ries of
successful extraditions in thl' last one year and thl' signing of bilateral
extradition treaties with many other countries; A pro-active engagement in
Central Asia both in terms of defence cooperation and energy security; and
The signing of the Additional Protocol to the SAARC Convention on "Terrorism
and similar such Conventions in various multilateral fora to curb the threat
of terrorism.
Engaging with the Diaspora : The successful celebration of the second
I'ravasi Bharatiya Divas in New Delhi from 9-11 January 2004; The granting
of dual citizenship to Persons of Indian Origin from 16 countries including
the US, UK, Australia, Canada, France, which allow dual citizenship as pef
their respedive laws; Educational facilities for the children of Indian workers
in the Gulf and South East Asia by reservation of a third of the 15 per cent
supernumerary seats in educational institutes in India. Further, children of
NRls in Gulf would not be required to pay the higher fees normally paid
by NRIs; The introduction of a Pravasi Bharatiya Bima Yojana to provide
insurance to workers in the Culf; The announcement of establishing a Pravasi
I3haratiya Kendra in New Delhi; and The recognition of 12 outstanding
eminent people of Indian origin by conferment of the Pravasi Bharatiya
Samman Awards to them.
India and the UN : An active participation in the open meetings of the
Council on key issues such as the situation in West Asia, Afghanistan,
Iraq as well as on thematic issues such as threats to international peace and
international security; India welcomed the unanimous adoption of Resolution
1511 as a positive step towards the restoration of sovereignty to the Ir.:lqi
people, although India noted that the Resolution lacked specificity regarding
the timing of the transfer; At the 58th Session of the First Committee of UNGA,
in recognition of the widely shared concern of the international community
about the heightened dangers posed by the risk of terrorists getting access
(0 wl'apons of mass destruction, India's resolution on "Measurt~s to Prevent
Terrorists from Acquiring Weapons of Mass Destruction", was adopted
unanimously; and India's election to the Commission on Human Rights for
the period 2004"()6 was a vindication of its long-standing and multifaceted
contribution to human rights within the UN system.

S~'curily

18

Industry

INOlA started her quest for industrial development after independence in

1947. ~ Industrial Policy Resolution of 1948 marked the beginning of the
evolution of the Indian Industrial Policy. The Industrial Policy Resolution of
] 956 gave the public sector strategic role in the economy. It categorised
industries which would be tht, exclusive responsibility of the State or would
progressively come under State control and others. Earmarking the preeminent position of the public sector. It envisaged private sector co-existing
with the State and thus attempted to give the policy framework flexibility.
Thp Industrial Policy initiatives undertaken by the Government since
July 1<:191 haw been designed to build on the past industrial achievements
and to acceil'rate the process of making Indian industry internationally
competitive. The thrust of these initiatives has been to increase the domestic
<lml external competition through extensive application of market mechanisms
and facilitating forging of dynamic relationships with foreign investors and
sllpplif'rs of technology. ~e process of reform has been continuous.

STRUCTURAL REFORMS
INDUSTRIAL LICENSING POLICY
With tht' introduction of the New Industrial Policy (NIP) in 1991, a substantial
programme of deregulation has been undertaken. Industrial licensing has been
.lbolished for all items except for a short list of six industries related to security,
strategic or environmental concerns.
According to the NIp, an industrial licence is required under the
Industries (Development and Regulation) Act, 1951 in the following cases:
i) when the project involves manufacture of an item which is on the list of
industries under compulsory licensing, or ii) the project attracts Iocational
restriction applicable to large cities with population of more than 10 lakh
(according to 1991 census), or iii) when an item reserved for small-scale sector
is intended .to be manufactured by an undertaking other than small-scale
industrial undertaking. In respect of projects not covered under licpnsing as
afor('said, the only requirement would be that the industrial undertakinp; shall
fill' a memorandum in the prescribed form with the Secretariat for Industrial
Assistance (SIA) in the Department of Industrial Policy and Promotion.
A significant number of industries had earlier been reserved for public
sector. Recently, a decision has been taken to open defence industry sector
to private sector with foreign direct investment permissible up to 26 per cent.
NoW, the areas reserved for the public sector are: (a) atomic energy; (6) ffi(>
substanct>s specified in the schedule to the notification of tht! Government of
India in the Department of Atomic Energy dated the 15 March 1995, and (c)
railway transport.

Industry

437

The Government continues to provide protection to the small-scale

sector, inter-alia, through the policy of reserving items for exclusive manufacture
in the small-scale sector. Industrial undertakings other than the small-scale
industrial undertakings engaged in the manufacture of items reserved for
exclusive manufacture in the small-scale sector are required to obtain an
industrial licence and undertake an export obligation of 50 per cent of the
annual production. However, the condition of licensing is not applicable to
such industrial undertakings operating under 100 per cent Export Oriented
Undertakings Schemes, the Export Processing Zone and the Special Economic
Zone Schemes. Industrial undertakings with investment in plant and machinery
up to Rs one crore qualify for the status as small-scale or ancillary industrial
undertaking from 24 December 1999. The investment limit for tiny units is
Rs 25 lakh.
FOREIGN DIRECT INVESTMENT
FDI is seen as a means to supplement domestic investment for achieving a
higher level of economic development. FOI benefits domestic industry as well
as the Indian consumer by providing opportunities for technological
upgradation, access to global managerial skills and practices, optimal utilisation
of human and natural resources, making Indian industry internationally
competitiw, opening up export markets, providing backward and forward
linkages and access to international quality goods and services.
MAJOR INITIATIVES
FDI Policy : In pursuance of the Government's commitment to further
facilitate Indian industry to engage unhindered in various activities, access
to the automatic route for FOI has been permitted, except for a small negative
list. The automatic route means that foreign investors only need to inform
the Reserve Bank of India within 30 days of issuing any shares.
LATEST REVISION OF SECTORAL GUIDELINES AND EQUITY CAP
The foreign investment in Banking Sector has been further liberalised by
allowing FOI limit in Private Sector Banks up to 74 per cent under the
automatic route including investment by FIls. The aggregate foreign investment
in a private bank from all sources will be a maximum of 74 per cent of the
paid-up capital of the bank and at all times, at least 26 per cent of tilt> paidup capital will be held by residents, except in regard to a WOS of a foreign
bank. This will also be applicable to all investments in existing private St'ctor
banks also. The permissible limits under portfolio investment schemes through
stock exchanges for FIls and NRIs will be : (i) In the case of Fils, as hitherto,
individual Fll holding is restricted to 10 per cent, aggregate limit for all FIls
(,1nnot exceed 24 per cent, which can be raised to 49 per cent by the bank
(lIncemed passing a resolution to that effect; (ii) The Fll investment limit will
mntinue to be within 49 per cent; and (iii) In case of NRIs, as hitherto,
individual holding is restricted to five per cent and aggregate limit cannot
exceed 10 per cent. However, NRI holding can be allowed up to 24 per cent

438

India 2005

,-------------------_._---_._-------------------,

PRODUCTION OF SELECTED INDUSTRIES

(LAKH TONNES)
CEMEN--T--------------------------~liJ11-9---1-234--.

762

693

1994-95 1995-96

1996-97

FERTILIZERS
113.35

111.55

1994-95 1995-96

1996-97

104.38

831

1997-98

2,701.3

2.856.3

1994-95 1995-96

1996-9/

... '--

1998-99 1999-2000 2000-01

2001-02

2002-03 2003-04'

146.28

144.4

1998-99 1999-2000 2000-01

2001-02

2002-03

3,096.3

3 ' 226 .4

1998-99 1999-2000 2000-01

2001-02

142

130.62

1997 -98

COAL
2,537.3

905

1997 -98

3,368.7

3,557.2

2002-03 2003-04'

........._---- ... __._------------_._-----------_---

CRUDE352OIL
322

1994-95 1995-96

KBK

1996-97 1997-98 199899 1999-2000 2000-01

2001-02

2002-03 2003-04

provisional

Industry

439

providing the banking company passes a special resolution to that effect in

the General Body.
However, transfer of shares under FOI scheme from residents to nonresidents will continue to require approval of FIPB under the FEMA.
Further, the foreign banks will be permitted to either have branches or
subsidiaries not both. The foreign banks regulated by a banking supervisory
authority in the home country and meeting Reserve Bank's licensing criteria
will be allowed to hold 100 per cent paid-up capital to enable them to set
up a wholly-owned subsidiary in India.
Further liberalising the FOI regime by revising the existing sectoral
guidelines and equity cap on FOI, including investment by NRls and OCBs
as under : (i) FOI up to 100 per cent permitted in printing scientific and
technical magazines, periodicals and journals subject to compliance with legal
framework and with the prior approval of the Government; (ii) FOI up to
100 per cent is permitted on automatic route on petroleum product marketing,
subjel:t to the existing sectoral policy and regulatory framework in oil
marketing sector; (iii) FOI up to 100 per cent is permitted on automatic route
in oil exploration in both small and medium size fields subject to and under
the policy of the Government on private paritcipation in : (a) exploration of
nil and (b) the discovered fields of national oil companies; (iv) FDI up to 100
per cent is permitted on automatic route for petroleum product pipelines
subject to and under the Government Policy and Regulation thereof; (v) FOI
up to 100 per cent is permitted for Natural Gas/LNG Pipelines with prior
Government approval.
,

Foreign Technology Collaborations: The policy governing the payment of

royalties under foreign technology collaboration is further liberalised by
defining that all companies, irrespective of the extent of foreign equity in the
shareholding, who have entered into foreign technology agreements may
henceforth be permitted on the automatic approval route, to make royalty
payment at 8 per cent on exports and 5 per cent on domestic sales without
<my restriction on the duration of the royalty payments. The ceiling on
payment of lump-sum fee / royalty on the automatic route would continue to
apply in all cases.
Guidelines pertaining to approval of foreign I technical collaborations
under the automatic route have further reviewed and it has been decided that
foreign financial/technical collaborators with previous ventures / tie-ups in .
India would be subject to certain guidelines viz., this would not be applicable
to those who have or had any pervious joint venture or technology transfer /
trade mark agreement in the same or allied field in India, etc.
Capitalisation of Import Payables : Issue of equity shares is allowed against
lump-sum fee, royalty and External Commercial Borrowings (ECBs) would
be adjusted in convertible foreign currency already due for payment /
repayment as per procedures. Issue of equity shares against all External

440

India 2005

Commercial Borrowings (excluding those deemed as ECBs) received in

convertible foreign currency has been permitted, subject to meeting all tax
liabilities and procedures.
Royalty on Use of Trade Marks and Brand Name : Payment of royalty
up to two per cent on exports and one per cent on domestic sales is allowed
under automatic route on use of trademarks and brand name of the foreign
collaborator without technology transfer.
Divest Conditions: FDI up to 100 per cent allowed for t'-commerce activities
to the condition that such companies would divest 26 per cent of their
equity in favour of the Indian public in five years, if these companies are
listed in other part of the world. Further, these companies would engage only
in business to business (B2B) c-commerce and not in retail trading.
~ubiect

Policy on Existing Companies : Existing companies with FDl arc eligible

for automatic route to undertake additional activities covered under automatic
routl'.
Investment by HnanciaI Institutions: International Financial Institutions like
ADB, IFC, CDC DEG, etc., elrc allowed to invest in domestic" companies
through the iHllornatic route, subject to SEBI/RBI guidelines and s(~ctor
specific caps lHl f-DI.
Financial Services : NOli-Banking Financial Companies may hold foreign
equity up t(1 100 pef cent if theSt' are holding (.-ompanies. TIll' minimum
capitalisalinJl norms for fund-based NBFCs are : (i) for FI)1 up to 51 per cent
- US$ 0.5 million to be brought upfront; (ii) for FOI ubove 51 per cent and
lip to 75 per cent-US$ 5 million to be brought upfront; and (iii) tor FDI above
75 per cent and up to Ino per cent - US $50 million out of which US $ 7.5
million to be brought upfront and the balance in 24 months.
For non-fund based activities, minimum capitalisation norm of US$ 0.5
million is applicablt> in respect of all permitted non-fund baS(ld NBFCs with
foreign investment. Foreign investors can set up 100 per cent operating
subsidiaries (without any ft'strktion on number of subsidiaries) without tht'
condition to disinvest a minimum of 25 pl~r cent of its equity to Indian entities,
subject to bringing in US$ 50 million, out of which US$ 7.5 million to be
brought upfront and the balancl' in 2t months. Joint venture operating NBFCs
that have 75 per cent or less thun 75 per cent foreign investment wiJl alS(l
be allowed to set up subsidiaries for undertaking other NBPes activities,
subject to the subsidiaries abo complying with the applicabJe minimum
capital inflow.
Special Economic Zone: Automatic Route of FDr up to 100 per cent is
allowed in all manufacturing (l(~tivities in Special Economic Zones (SEZs)
except for the following activities: i) Arms and ammunition, explosivt>s and
allied items of defence equipment, d('ft!nce aircraft and warships; ii) Atomic
substann's; iii) Narcotics and psychotropic substances and hazardous chemicals;

Industry

441

iv) Distillation and brewing of alcoholic drinks; and v) Cigarettes/ cigars and
manufactured tobacco substitutes.
Offshore Venture Capital Funds/Companies: Offshore Venture Capital
Funds/Companies arc allowed to invest in domestic venture capital
undertakings as well as other companies through the automatic route, subject
only to SEBI regulations and sector specific caps on FDI.
NRI Investment : NRI investment in foreign exchange is made fully
repatriable whereas investments made in Indian rupees through rupee account
shall remain non-rcpatriable.
Advertising Sector: FDI limit under automatic route in the advertising sector
has been raised from existing 74 per cent to 100 per cent. FDI up to 100 per
ccnt in the film sector, which is already on automatic route, now will not be
subject to conditions.
Print Media: FDI in print media sector is allowed up to 26 per cent of paidlip equity capital of Indian entities publishing periodicals and newspapers
dealing with news and current affairs. FDI is print media sector is allowed
up to 100 per cent of paid-up equity capital of Indian entities publishing of
Indian editions of foreign technical, scientific, and speciality magazines,
journals (FDI cap has been increased from 75 per cent to 100 per cent in 2(04).
Telecom Sector: FDI up to 100 per cent is allowed with some conditions
for tht' following activities in Telecom sector: i) ISPs not providing gateways
(both for satellite and submarine cables); ii) Infrastructure Providers providing
dark fibre (IP Category I); iii) Electronic Mail; and iv) Voice Mail.
FDl up to 74 per cent permitted for the following telecom services subject
to licensing and security requirements (proposals with FDI beyond 49 per cent
shall require prior Government approval) : i) Internet services providers with
gateways; ii) Radio paging; and iii) End-to-end bandwidth.
Tea Plantations: FDI up to 100 per cent in tea sector, including plantations
has been allowed with prior approval of the Government and would be
subject to the following conditions: i) Compulsory divestment of 26 per cent
pquity of the company in favour of an Indian partner/Indian public within
<l pt'riod of five years; and ii) Prior approval of the State Government
concerned in case of any future land use change..
IT Sector : Automatic Route is available to proposals in the Information
Technology sector, even when the applicant company has a previous joint
venture or technology transfer agreement in the same field.
Integrated Township : POI up to 100 per cent is permitted with prior
approval of the Government for development of integrated township, including
housing, commercial premises, hotels, resorts, dty and regional level urban
infrastructure facilities such as roads and bridges, mass rapid transit systems
and manufacture of building material in all metros~ including associated

442

India 2005

commercial development of real estate. Development of land and providing

allied infrastructure will form an integral part of township's development.
Drugs and Pharmaceuticals : FDI up to 100 per cent in drugs and
pharmaceuticals (excluding those which attract compulsory licensing or
produced by combinant DNA technology and specific cell/tissue targeted
formulations) placed on the automatic route.
Defence Industry: The defence industry sector is opened up to 100 per cent
for Indian private sector participation with FDI permitted up to 26 per cent
both subject to licensing.
Small-Scale Industries : Investment limit raised to Rs five crore for 64 SSI
reserved items by amending Industries (Development and Regulation Act,
1951. The Government have deleted 126 items reserved for exclusive
manufacture in the small-scale sector by amending Industries (Development
and Regulation) Act, 1951.
Carry-on-Business (COB) Licence : Streamlining of procedures and revision
of form for Carry-on-Business (COB) Licence.
Further Simplification-Industrial Licence : As a measure of further
simplification of procedures and to ensure speedy implementation of projects,
it has been decided that Industrial Licence will now be granted directly against
applications instead of the existing procedure of fulfilment of the prescribed
conditions, holder of Letter of Intent was required to approach SlA and the
Administrative Ministry concerned for getting the Letter of Intent converted
into Industrial Licence. However, this procedure will not apply to the
applications relating to manufacture of items reserved for exclusive production
in the 55! sector.
Deletion of Export Obligation Conditions: Industrial Iicences/Letter(s) of
Intent issued by the Secretariat for Industrial Assistance (SIA) in the post
carrying the condition of export obligation have been exempted from the
operation of this condition for items which stand deserved by an appropriate
notification.
FOREIGN INVESTMENT IMPLEMENTATION AUrnORITY
Foreign Investment Implementation Authority (FITA) was established in the
Department of Industrial Policy and Promotion, Ministry of Commerce and
Industry to facilitate qUick translation of Foreign Direct Investment (FOI)
approvals into implementation, provide a proactive one stop after care service
to foreign investors by helping them obtain necessary approvals, sort out
operational problems and meet with various Government agencies to find
solution to problems of the investors. The FIlA may co-opt other Secretaries
to the Government of India, Chief Commissioner (NRI), top functionaries of
financial institutions and professional experts from industry and commerce,
as and when necessary. The Secretariat for Industrial Assistance (SIA) in the
Department of Industrial Policy and Promotion shall function as the Secretariat
of the FIlA.

Industry

443

During the period ]999-2003, ]4 meetings of FIlA have been held. Fast
Track Committees (FfC) have been set-up in 30 Ministries/Departments for
regular review of the mega project and resolution of any difficulty.
For conducting meeting of FITA, the country has been divided into four
ngions.
FDI APPROVALS AND INFLOWS
(Rs in crore / L1S$ in million)
Yt'Jr

(lan-Dt'c)

2nnn
20DI

2002

No. of

Amounl of

Amounl of

FDI

FDI

FDI Inflows

approvals

approved

1,726

1,982

1,'166

201n

467

2004

639

(ldn-April)

Rs 37,039.45

Rs 19,341.74

(US $ !!,bI3.83)

(US $ 4,498.07)

Rs 26,R74.73

Rs 19,265.10

(LIS $ 5,972.20)

(US $ 4,281.10)

Rs 11,139.79

Rs 21,285.97

(LIS $ 2,32[).79)

(US $ 4,434.50)

Ro; 6,l142.19
(US $ 1,313.52)

R. 14,3[)[).94
(US $ 3,108.90)

Rs 2,351.36

Rs 6,512.67

(US $ 511.16)

(US $ 1,415.89)

GOVERNMENT TO BUSINESS PORTAL (e-Biz)

The Department of Industrial Policy and Promotion, Government of India has
initiated steps to establish a 'Government to Business' (G2B) Portal. The project
envisages creating a business-friendly environment in the country by providing
l'fficient, convenient, transparent and integrated electronic services to the
investors, industries and business. The portal aims to provide for approvals,
clearances and permissions, reporting, filing payments and compliances
through single electronic window right from stage of registration to the entire
life cycle of business. The vision of G2B portal involves integration of the
entire life cycle of business. The vision of G2B portal involves integration of
the entire portfolio of services offered by the Government at all three levels:
Central, State and Local. This would make a visible and positive impact on
the business environment of the country. Proposed e-Biz follows the international
model of 4-stage evolution, i.e., information, interaction, transaction and
integration of the portal initiative in relation to proviSion of electronic services.
To begin with, an initial pilot project covering six Central Ministries and
four States namely, Andhra Pradesh, Uttar Pradesh, Maharashtra and Haryana
is t'nvisaged. The project would be capable of scaling to cover new activities
and geographical areas. Department of Industrial Policy and Promotion has
entrusted the responsibilities of conceptualisation of the e-Biz pilot project to
the National Institute for Smart Government.

India 2005

444

CURRENT INDUSTRIAL PRODUCTION

:A--

As per the quick estimates of the Index of Industrial Production (lIP) with
base year 1993-94 for the month of March 2004, released by the Central
Statistical Organisation, the overall growth in the General Index during the
period April 2003 - March 2004 has been 6.9 per cent as against 5.7 per cent
during April 2002 - March 2003. The cumulative growth during April 2003
- March 2004 over the corresponding period of 2002-03 in the three sectors,
viz., mining and quarrying, manufacturing, and electricity sectors has been
5.1 per cent, 7.2 per cent and 5.0 per cent, respectively. During 2003-04, capital
goods sector posteJ a growth of 12.7 on top of 10.5 per cent increase during
the same period last year. Consumer goods sector maintained the same growth
of 7.1 per cent as in 2002-03. The consumer durables sub-sector has shown
a turnaround after witnessing negative growth during April-March 2003-04
in contrast with a decline of 6.3 per cent during April-March 2002-03. The
consumer non-durables sub-sector has retained its growth momentum. It
posted a growth of 5.7 per cent in April-March, 2003-04 on top of close to
12.0 per cent increase in the same period last year. Basic and intermediate
goods industries posted a growth of 5.4 per cent and 6.2 per cent respectively
during the April-March 2003-04 compared with a growth of 4.9 per cent and
3.9 per cent in the same period of the previous year.
Within the manufacturing sector, 12 industry groups recorded positive
growth. These are (i) Beverages, tobacco and related products, (ii) wool, silk
and man-made fibre textiles, (iii) Wood and wood products and fumiture and
fixtures, (iv) Paper and paper products and printing, publishing and allied
industries, (v) Basic chemical and chemical products (except products of
petroleum and coal), (vi) Rubber, plastic, petroleum and coal products
(vii) Non-metallic mineral products, (viii) Basic metals and alloy industries
(ix) Metal products and parts except machinery and equipment, (x) Machinery
and equipment other than transport equipment (xi) Transport equipment and
parts and (xii) Other Manufacturing Industries.
Five industry groups, namely, (i) Food Products, (ii) Cotton Textiles, (iii)
Jute and other vegetable fibre textile, (iv) Textile products and (v) Leather
and fur products have shown negative growth.
While the overall industrial growth was 6.9 per cent, six core infrastructure
sectors achieved an overall growth of 5.4 per cent during the year 2003-04.
The performance of these six infrastructure industries is given below:
Year-wise Growth Rates
S.No. Industry
Electricity

Weight

1998-99

1999-2000

10.17

6.6

7.2

3.9

3.1

3.2

5.0

2000-01 2001-02

2002-03 2003-04

Coal

3.22

-2.1

3.1

3.5

4.2

4.6

5.1

Finished Steel

5.13

1.4

15.0

6.4

3.6

10.1

6.9

Industry

445

Crude Petroleum

4.17

-3.4

-2.4

1.5

-1.2

3.2

1.0

Petroleum

2.00

5.2

25.4

20.3

3.7

4.9

8.2

Cement

1.99

5.7

11.2

-0.9

7.4

8.8

6.1

Overall

26.68

2.8

9.1

5.1

3.5

5.6

5.4

Refinery Products
h

LIGHT ENGINEERING INDUSTRY

The Light Engineering Industry is a diverse industry with a number of
distinctive sectors. The industry in this Sector ranges from low-tech items like
castings, forgings and fasteners to the highly sophisticated microprocessors
based processed control equipment and diagnostic medical instruments. This
group also includes industries like bearings, steel tyres and tubes, etc. The
products covered under the industry are largely used as inputs to the capital
goods industry.
CEMENT INDUSTRY
Cement is one of the most advanced industries in the country. After the
complete decontrol of price and distribution on March 1989 and introduction
of other policy reforms, cement industry has made rapid strides both in
capacity/production and process technology. As on 30 April 2004 there were
12h large cement plants with an installed capacity of 144.98 million tonnes
and more than 300 mini cement plants with an estimated capacity of 11.10
million tonnes per annum. The production during 2003-04 was 123.44 million
!onnes with a growth rate of 6.09 per cent.
India is producing different varieties of cement like Ordinary Portland
Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag
Cement (PBFS), Oil Well Cement, White Cement, etc. These different varieties
of cement are produced strictly under BIS specifications and the quality is
comparable with the best in the world.
The cement industry has kept pace with technological advancement
and modernisation. Export of cement and clinker was 8.99 million tonnes in
2003-04. Improvement in quality of Indian cement has found its ready markets
in Bangladesh, Indonesia, Malaysia, Nepal, Middle-East countries, Burma,
Africa and South-East Asian countries.
LEATHER INDUSTRY
Leather is one of the traditional industries of India spread over organised and
unorganised sector. The small-scale, cottage and artisan sector account for over
75 per cent of the total leather production. India has traditionally a rich
advantage in this industry both in terms of raw material and skilled
nlanpower. People employed in this sector are predominantly from the
minorities and disadvantaged sections of the society. More than 30 per cent
of the work force employed in this sector constitutes women.

446

India 2005

The first meaningful intervention by the government in leather sector

came in 1992 in thl' shape of UNDP sponsored "National Leather Development
Programme (NLDP)". During the Ninth Plan period a Tannery Modernisation
Scheme (TMS) was imp\(;!mented successfully on a pilot basis. A total number
of 109 tanneries in SSI and Non-5SI Sector were taken up for upgradation
and modernisation of technology.
The leather industry has made significant strides during the last two
decades. Export performance of this sector went up from a meagre Rs 3,036
crore during 1991-92 to Rs 8,780 crore in 2002-2003.
Realising the strength of this sector, government has provided an outlay
of Rs 400 crore for implementation of various plan leather schemes during
the Tenth Plan (2002-2007).
RUBBER GOODS
Th(' mbber goods manufacturing industry is a delicensed industry. The major
mbber goods produced by the industry are tyres and tubes of all kinds,
surgical gloves, prophylactics, conveyer and V-belts, hose pipes, sports goods,
etc. Many of the mbbcr goods like cycle tyres and tubes, canvas hoses, rubber
washers, etc., arl' reserved for exclusive manufacture in the small-scale sector.
At present, the industry has 32 tyre producing units spread in 13 states with
about 220 medium-scale units and over 5,500 units in the small-scale sector,
with an equal number in the tiny sector having an annual turnover of over
Rs 12,000 crore. It directly employs about 3.5 lakh people. Total export of
mbber goods during 2002-2003 was Rs 2,438 crOTe.
PAPER AND NEWSPRINT INDUSTRY
Tht> Indian paper industry has a vital role to play in the socio-economic
devclopnwnt of the country. The per capita consumption of paper is
considered as a bench mark of modernisation of any country. The Indian paper
industry, which is a century old, has made steady progress with an installed
capacity, at present, of nearly 6.2 million tonnes of paper and paperboard and
about 1.24 million tonnes of newsprint. The aggregate installed capacity by
the year 2010 for paper and paperboard is expected to touch 8.3 million tonnes
and 1.5 million tonnes for newsprint.
The industry in India is ranked among the 15 top global paper industries.
The industry is fragmented with installed capacity ranging from two tonnes
to 600 tonnes. Its turnover is about Rs 16,000 crote, employing nearly three
lakh people directly and 10 lakh people indirectly. The per capita consumption
of paper in India is still at 5.5 kg, which is far below the global average
(nearly 50 kg).
Recently, the Department of Industrial Policy and Promotion had
commissioned a study on 'Global Competitiveness of Indian Paper Industry'
by an agency of international repute to understand various issues. concerning

Industry

447

the paper and newsprint industry. The study has indicated inadequate
availability of good quality of cellulosic raw material and obsolete technology,
among others as the constraints for the paper industry. High cost of basic
inputs and environmental issues are the other two major issues required to
be addressed by the paper industry to become globally competitive.
SOAPS AND DETERGENTS
The soaps and detergents industry had developed both in the small-scale
sector and organised sector. Detergents and toilet soaps are delicensed. Ninety
per cent of the production of laundry soap is in the small-scale sector. Toilet
soap is, however, dominated by the large-scale units. Production of soaps and
synthetic detergents during 2003-2004, has been of the order of 5,73,239 tonnes
and detergents 7,43,211 tonnes respectively.

CENTRAL PUBLIC SECTOR ENTERPRISES

At the time of independence, India was basically an agrarian economy with
a weak industrial base, low-level of saving and investment and near absence
of infrastructure facilities. It was obvious that if the country was to speed
up its economic growth and maintain it in the long run at a steady level,
a big push was required. As such, State's intervention in all sectors of the
economy was inevitable.
TIlere has been an appreciable growth in investment in the public sector
over the years. In 1951, investment in five (CPSEs) was Rs 29 crore. This

increased to Rs 3,24,614 crore in 240 enterprises as on 31 March 2002 and

further to Rs 3,33,475 crore in 240 enterprises as on 31 March 2003. Thus
during 2002-2003, investment in public sector has increased by R.. 8,861 crore
registering an increase of 2.73 per cent. The internal resources generated by
the public sector enterprises during 2002-03 were Rs 54,160 crore. The PSEs
have also been making substantial contribution to augment the resources of
Central Government through payment of dividend, interest, corporate taxes,
excise duties, etc., thereby helping in mobilisation of funds to meet financing
needs for planned development of the country. During 2002-03 contribution
to the Central Exchequer by the PSEs through these resources amounted to
Rs 81,926 crore. The contribution of CPSEs during 2002-03 in country's total
production of lignite was 100 per cent, in coal about 95.39 per cent, in
petroleum about 100 per cent, in coal about 95.36 'per cent and in petroleum
about 80 per cent.
Besides providing direct employment to about 1.87 million people as on
3] March 2003, the PSUs incurred gross expenditure amounting to Rs 3,147
crore on township maintenance, administration and social overheads.
The performance of CPSEs has improved Significantly since 1991-92 and
has shown continuous growth. Some of the important financial parameters
from 1991-92 to 2002-03 are given in table 18.1:

India 200S

44H

TABLE ]8.1

Year

No. ()f
opprating
CPSEs

PERFORMANCE OF CENTRAL PUBLIC SECTOR

ENTERPRISES
'Iurnover/
Operating
Im'orne

I'BIT

Net
Profit

Provo Dividend C ontri):,u t ion Gross

for Tax

Payrnpnt to Central
Exchequer

Internal
Resource
Generation

19'i 1-'12

237

1,33,906

13,675

2,356

1,647

687

19,951

12,943

Jl)92-9.1

239

1A7,266

15,957

3,271

1,805

792

22,449

14,792

1993-94

240

1,58,049

18,556

4,545

2,110

1,028

22,9!!8

16,676

1994-95

241

I,R7,355

22,630

7,187

2,581

1,436

27.472

19,992

1995-%

239

2,26,919

27,5R7

9,574

4,047

2,205

30,87!!

24,19!!

19':16-97

236

2,60,735

30,91,';

10,180

5,192

2,836

39,009

25,5,';4

1997-9B

230

2,76,002

37,200

13,582

5,634

3,60'1

42,289

31,192

1998-9'1

235

3,10,17'1

39,727

13,203

6,499

4,932

46,934

31,302

1999-2000

232

3,R9,199

42,270

14,331

7,706

5,455

56,157

35,933

2000-01

234

4,58,237

48,767

15,653

9,314

8,260

61,037

37,811

2001-02

211

4,78,732

63,190

25,978

12,254

8,061'1

62,866

52,544

2002-03

227

5.44,390

73,077

32,141

17,430

13,735

81,926

54,HiO

15.65

23.72

42.23

70.24

30.32

3.0R

958.29 1899.27

310.64

318.45

Growth
in 200203
over
(-)1.73
2001-02
and over
1991-92 (-)4.22

13.71

306.55

434.3R 1264.22

(per Ct'l1t)

The improvement after liberalisation is not only in absolute amounts but

important financial ratios have also improved. The return on investment, i.e"
profit before interest and tax to capital employed has also gone up from
11.6 per cent in 1991-92 to 17.45 per cent in 2002-03 and dividend payout
from 29.2 per cent to 42_73 per cent during the same period. In 1997, the
Government had identified 11 Public Sector Enterprises as Navratnas and
.decided to give enhanced powers to the Board of Directors of these PSUs to
facilitate their becoming global players. These enterprises are BHEL, BPCL,
GAlL, HPCL, IOC, IPCL, MTNL, NTPC, ONGC, SAIL and VSNL. Two of these
namely, IPCL and VSNL have since been privatised and presently there are
only 9 Navratna PSEs. The Boards of these Navratna enterprises have been
professionalised by induction of non-official part-time professional DirectOrs.
These l'SUs have been delegated substantial enhanced autonomy and

Industry

449

operational freedom which include incurring capital expenditure, entering into

joint ventures, effecting organisational restructuring, creation and winding up
of posts below Board level, to raise capital from domestic and international
markets, to establish financial joint ventures subject to equity investments and
special limits. The 9 Navratna PSUs earned a net profit of Rs 13,985 crore
during 2002-03.
The Government have also granted financial and operational autonomy
to some of the other profit making enterprises subject to their fulfilling certain

conditions. These enterprises are categorised as Miniratnas. The enterprises

which have made profits continuously for the last three years and have earned
a net profit of Rs 30 crore or more in one of the three years, with positive
Networth are categorised as Miniratna I. Category II Miniratnas should haw
made profits for the last three years continuously and should have a positive
Networth. Both these categories of PSEs would enjoy certain autonomy like
incurring capital expenditure without Government approval up to Rs 300
LTorc or equal to their Networth whichever is, lower (for category I Miniratna
companies) and up to Rs 150 crore or up to 50 per cent of their Nctworth
whichever is lower (for category II Miniratna companies). These enterprises
can also enter into Joint Ventures subject to certain conditions, set-up
subsidiaries/ companies and overseas offices, enter into technolob'Y }Vs, etc.
As on 31 March 2003, 41 enterprises have been categorised as Miniratnas. The
Government have set-up an institutional mechanism to review the performance
of Navratna/Miniratna PSUs and to grant/ divest the status to new I existing
PSEs.
It is the constant endeavour of the Government to revive / restructure the
PSUs in order to improve their performance, productivity and profitability.
However, major emphasis had been on the sick and loss making enterprises,
which are capable of being revived. The sick industrial enterprises are referred
to Board of industrial and Financial Restructuring (BIFR) under the provision
of Sick Industrial Companies (Special Provision) Act, 1985 for formulating
appropriate revival I rehabilitation packages. As for other Joss making
enterprises, administrative Ministries/Departments in consultation with
management, workers and other expert I consultants take appropriate measures
ior restructurine of these units.

In the process of restructuring of the sick and loss making enterprises

and to improve the programme of profit making enterprises, emphasis has
been laid on reationalisation of manpower in the Central PSUs. The Government
has liberalised the Voluntary Retirement Scheme (VRS) for the employees of
CPSUs to enable the CPSUs to shed their excess manpower. Cumulatively
around 4.23 lakh employees have opted for VR from CPSUs since October
1988 till March 2002.
On the basis of the MoU performance evaluation carried for the year
2002-03 (prov.) the number of excellent rated PSEs was 45, 19 PSEs were rated
as very good, 14 PSEs as good, 17 PSEs as fair and 2 PSEs as poor.

450

India 2005

MAJOR INDUSTRIES
TEXTILES
The tt'xtile industry plays predominant presence in the Indian economy. It
contributes about 14 per cent of the value addition in the manufacturing
sector, 4 per cent to the GDP and provides employment to about 35 million
persons. It is estimated that together with allied agriculture sector, it would
provide employment to over 91 million people by the end of Tenth Plan i.e.,
2002-2007. The contribution of this industry to the gross export earnings of
the country is over 20 per cent while adding only 2-3 per cent to the gross
import bill of the country. It is the only industry, which is self-reliant, from
raw material to the highest value added products, viz., garments/ made-ups.

corrON
Cotton is one of the major crops cultivated in India and it accounts for more
than 73 per cent of the total fibre consumption in the spinning mills and more
than 58 per cent of the total fibre consumption in the textile sector. The
production of cotton has risen from 30 lakh bales in 1950-51 to an all-time
high of 177.90 lakh bales (170 kg each) in 19%-97. The area under cultivation
has risen substantially from 58.91 lakh hectares in 1950-51 to 93.87 lakh ha
in 1998-99. For the cotton season 2003-04 (October-September) the cotton
Advisory Board has estimated cotton production at 167.50 lakh bales with an
averagt' yield per hectare of 372 kg with area under cultivation at 76.57 lakh
htl (as against 58.91 Jakh ha in 1950-51). The average yieJd per hectare has
risen from 88 kg in 1950-51 to 372 kg in 2003-2004. However, it is still below
the world average of about 580 kg/hectare because 65 per cent of the area
under cotton cultivation in rainfed.

JUTE
The jute sector has been playing an important role in the economy of the
country in general and the eastern region in particular. The socio-economic
significance of the jute sector sterns not merely from the contribution it makes
to the national exchequer as earnings from exports and through tax and levies,
but also from the sizeable employment it provides in the agricultural and
industrial sectors. About 4 million farmers, most of them small and marginal,
arc engaged in the cultivation of Jute and Mesta and about 2.61 lakh workers
are employed in the jute industry. Apart from this, the jute sector also provides
indirect employment to a considerable number of people. India tops in
production of raw jute and jute goods and second in export of jute goods.
The export of jute goods increased substantially during the year 2002-03. It
increased 57 per cent in quantity terms and .62 per cent in value (Rupees)
terms in comparison to 2001-2002. It absolute terms the exports amount to
229.2 thousand metric tonne (MT) valued at Rs 916.67 crore as against 146.1
thousand MT valued at Rs 567.52 crore during the respective years.

SERICULTURE
India enjoys the distinction of being the only country producing all the five

Industry

451

known ~mercial varieties of silk, viz., Mulberry, Tropical Tasar Oak Tasar,
En an~a (of which the olden ellow muga silk bein uni e to India.
India's total silk production amounting to a u
per cent of the world
production, ranks India as the second largest producer of raw silk. Reaching
a high of 17,436 metric tonne (MT) in 2000-01, it fell due to drought to 15,700
MT in 2003-2004 comprising mulberry 88.73 per cent, eri 8.6 per cent, tasar
2 per cent and muga 0.67 per cent of the total production of raw silk.
Productivity of mulberry per hectare, however, has risen from 49.77 kg to
74 kg and it is expected that with changes in supply chain management
production in the coming years should increase. Sericulture is a labourintensive industry. It provides employment to approximately 54 lakh persons,
most of them being small and marginal farmers, or working in tiny and
household industry mainly in the hand reeling and hand weaving sections.
HANDLOOMS

The handloom sector provides employment to over 65 lakh persons engaged

in weaving and allied activities. The production of handloom fabrics registered
more than ten-fold increase from early fifties and constitutes nearly 14 per
cent of the total cloth produced in the country contributing substantially to
the export earnings. In addition to various on-going schemes and programmes,
the Government has launched Deen Dayal Hathkargha Protsahan Yojana, set
up a National Centre for Textile Design and introduced a scheme for
Reimbursement of CENVAT on Hank Yarn.
POWERLOOMS

Production of cloth as well as generation of employment have been rapidly

increasing in the powerloom sector. During 2002-2003, the production of cloth
in the decentralised powerloom sector was 25,954 million sq mt., while
employment generation was 4.23 million. The corresponding figures estimated
for 2003-2004 are 27,945 million sq mt and 4.58 million respectively. The
powerloom industry produces a wide variety of cloth, both grey as well as
processed with intricate designs. The contribution of powerloom sector to the
total doAh production of the country is to the extent of 63 per cent during
2003-04 and it contributes significantly to the export earnings of country.
HANDICRAFTS

The handicrafts sector enjoys a special significanCe in the country's economy

in terms of employment generation as well as earning of foreign exchange .
through exports. The promotion of handicrafts is the primary responsibility
of the State Governments. However, the office of the Development
COmmissioner (Handicrafts) has been implementing various developmental
schemes at the Central-level to supplement the efforts of the State in the
handicrafts sector. Exports of handicrafts including hand-knotted carpets were
of the order of Rs 12,765.18 crore during 2003-2004 representing an increase
of 16.75 per cent over the previous year. The export of handicrafts including
hand-knotted carpets during April 2004 had been worth Rs 770.64 ClOre.

452

India 2005

MAN-MADE FIBRE AND FILAMENT YARN

Tht' Industry comprises fibre and filament yam manufacturing units of

cellulosic origin. This industry has a vital role to play in the textile industry.
About 42 per cent of the raw material consumed is manufactured by the manmade fibre / yarn industry. The production of raw materials during 2002-2003
has been 14.24 lakh tonnes.
RESEARCH ASSOCIATIONS

The following four Cotton Textile Research Associations Ahmedabad Textile

Industry's Research Association, Mumbai; Bombay Textile Research Association,
Mumbai; South India Textile Research Association, Coimbatore and Northern
India Textile Research Association, Ghaziabad are engaged in research and
render consultancy services to the textile industry on various aspects of textile
technology. The Silk and Art Silk Mills Research Association, Mumbai
(SASMIRA) is engaged in research and development, provision of technical
services, testing and training facilities in the field of silk and art silk. The
Man-made Textile Research Association (MANTRA) caters to multifarious
needs of the textile and allied industry at large primarily aimed at planned
and healthy growth of the decentralised textile and allied industry at large
primarily aimed at planned and healthy growth of the decentralised textile
industry. The Indian Jute Industries Research Association, Kolkata (IJIRA) has
the objective of promoting research and other scientific work connected with
th( jute trade and industries allied with or accessory thereto. The Wool
Research Association, Thane (WRA) is engaged in various activities necessary
for the technological upgradation of the Indian Woollen Industry which
includes research and development work/special training programme,
educational activities, workshops and paper presentation at international
level.
EXPORTS

The Indian textile industry contributes substantially to India's export earnings.

At present, the exports of textiles (including handicrafts, jute, and coir)
account for about 20 per cent of total exports from India and are the largest
net foreign exchange earner for the country as the import content in textile
goods is very little as compared to other major export products. Further, the
export basket consists of wide range of items containing yam, cotton fabrics,
man-made yam and fabrics, wool and silk fabrics, made-ups and variety of
garments.
During 2oo2'()3, textile exports recorded a growth of 10 per cent as
against a decline of 10.6 per cent in previous year 2001..()2. The textile exports
during 2003-04 amounted to US$ 13.16 billion as against US$ 12.41 billion
in the previous year, with a positive growth of 6 per cent.

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

National Institute of Fashion Technology (NIFT) was set up as a societY in
1986 to cater to the growing needs of India's evolving fashion industry. The

Industry

453

Institute is headed by Director General and its regional centres are headed
by Directors. It has been awarding Diplomas in Fashion Technology and other
rdated subjects which are valued highly in the fashion industry market. The
NIFf programmes are run at seven centres at New Delhi, Bangalore, Kolkata,
Chennai, Gandhinagar. Hyderabad and Mumbai. During the last few years
NIFT have taken initiatives for formation of Fashion Designers Council of
India and formation of International Foundation of Fashion Technology
Institutes (IIFTl) with HQs at Delhi and with Secretary (Textiles) as Chairman
of its Board of Directors.
HEAVY ELEcrRICAL INDUSTRY

Industrial Units manufacturing large plant and machinery required for power
generation. transmission, and distribution are covered under the category
"1-lea~l' Electrical Industry". These include turbo-generators, boilers, various
types of turbines, transformers, sWitchgears and other such items.
Electrical equipments such as transform~rs, switchgears, etc., are used
by a number of sectors of the Indian Economy. Some major areas where these
are used are the multi-crore projects for power generation including nuclear
power stations, petrochemical complexes, chemical plants, integrated steel
plants, non-ferrous meta] units, etc. The Industry has been upgrading the
existing technology and is now capable of taking up turnkey contracts also
for export markets.
The existing installed capacity in the industry is of the order of
4,500 MW of thermal, 1,345 MW of hydro and about 250 MW of gas based
power generation equipment per annum. There also exists capability for
manufacture of equipment for nuclear power plants in the country. The
share of domestic equipment is about 66 per cent in the country's power
generation capacity.
The Heavy Electrical Industry is capable of manufacturing transmission
and distribution equipment up to 400 KV AC and high voltage DC. Steps
have also been taken to upgrade the technology to the next higher systems
voltage level of 765 KV. Large electrical motor used in Steel plants, Petrochemical
complexes and other such heavy industries are also being manufactured in
the country.
The domestic Heavy Electrical equipment manufacturers are making use
of the developments in the global market with reference to product design
and upgrading of manufacturing and testing facilities.

AUTOMOTIVE INDUSTRY
Automobile Industry was delicensed in July 1991 with the announcement of
the New Industrial Policy. The passenger CiU' was however delicensed in 1993.
At present 100 per cent. Foreign Direct Investment (POI) is permissible under
automatic route in this sector including passenger car segment. The import
of technology I technological up gradation on the royalty payment of 5 per
cent without any duration limit and lump sum payment of US$ 2 million is
also allowed under automatic route in this sector.

454

India 2005

With the removal of quantitative restrictions (QRs) with effect from

1 April 2001, the import of vehicle is allowed freely subject to certain
conditions notified by DGFT. This dispensation is also applicable for passenger
car segment. However, in order to ensure that India does not become a
dumping ground for old and used vehicles produced abroad, the custom duty
on import of second hand vehicles including passenger cars has been raised
to 105 per cent. Tht, custom duty rate on nt'w Completely Built Units (CBUs)
has also been increased to a leave of 60 per cent to allow Indian industry
to migrate to a fully competitive environment.
Current Status of Indian automobile industry and passenger car sector:
With the gradual liberalisation of the automobile sector since 1991, more and
more players have set up manufacturing facilities in India. This sector was,
before 1991, inhabited by only a few players. At present there are 15
manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers
of commercial vehicles, 14 of 2/3 wheelers and 14 of tractors besides 5
manufacturers of engil1l."S. The industry has an investment of a sum exceeding
Rs 50,000 crore. During the year 2003-04 the turnover of the automotive sector
has exceeded Rs 1,00,000 crore. The industry also offers substantial employment
potential and it provides 4.5 lakh direct employment and about one crore
indirect employment.
Installed Capacity, Production and Sale: The automobile industry including
passenger cars, over a period of time and particularly after liberalisation, has
installed a robust capacity. The installed capacity in different segments of
automobile industry is as under :
Segment
Four Wheelers
Two & Three Wheelers
Grand Total

Installed Capacity
15,90,000
79,50,000
95,40,000

The installed capacity of passenger cars of 12.37 lakh vehicles is included

in four wheelers due to broad banding in the liberalised regime. As against
this installed capacity the production of all categories of vehicles during the
last 5 years has been as follow :
Production of Vehicles
Category

1998-99

1999-00 2000-01

200102

20023

200:4-(14"

5,64,052
},05,667

8,42,437
U6,103
2,75,224
56,24,950
3,40,729

Passenger Car
Multi Utility Vehicles
Commercial Vehicles
1Wo Wheelers
Three Wheelers

3,90,709
1,13,328
1,35,891
33,74,508
2,09,033

5,77,243
1,24,307
1,73,521
37,78,011
2,05,543

1,62,508
42,71,327
2,12,748

6,08,851
1,14,479
2,03,697
50,76,221
2,76,719

Total

42,23,469

48,58,62541,59,392 53,16,302

62,19,961

72,29,443

18.60%

15.12%

Percentage
5.40%
15.00%
Figures relate to period April-March 2004

5,13,415
1,27,519
1,56,706
37,58,518
2,03,234

(-)2%

11.70%

Industry

455

Sale of Vehicles
Category

1998-99

1999-00

2000-01

2001-02

2002-3

2003-04-

Passenger Car

3,84.483

61.544

5,67,728

5,70,863

5,93,578

7,55,771

Multi Utility Vehicles

1.09.082

U8,274

1,22,832

1,04,253

1,13,620

1,44,981

Commercial Vehicles

1,29,822

1.61.407

I.36,585

1,46,671

1,90,682

2,60,345

33,03,425

36,93,541

36,34,378

42,03,725

48,12.126

53,65,013

1.89,082

1,86,850

1,81,899

2,00,276

2,31,529

2,68,702

42,21,616 46,43,422

52,25,788

59,41,535

67,94,812

Twu Wheelers

Thra' Wheelers
Total
Figure~

41,15,894

relate to period April-March 2004

After the liberalisation, the arrival of new and contemporary models

stimulated the demand for vehicles in the market, which led to the robust
growth of the industry including the passenger car sector during the initial
periods. The contribution of the Auto Industry to GDP has risen from 2.77
per cent in 1992-93 to 4.7 per cent in 2002-2003.
Automotive industry of India is now finding increasing recognition
worldwide. During the last couple of years the export in this sector has
considerably grown owing mainly to the export of cars, two/three wheelers.

STEEL
PRODUcnON

Finished Carbon Steel: Today, India is the eighth largest steel producing
country in the world. The annual growth rate of crude steel production in
2002-03, was 8 per cent and in 2003-04 was six e:r cent. The production of
finished steel during the last three years was as under:
(in million tonnes)
Yc.lT

Main Producers

Secondary Producers

Total

2UOl-2002

13.05

17.58

30.63

2002-2003

14.386

18.285

33.671

2003-2004

15.193

2UlOO

36.193

Source:

,PC

(Provisionlll)

Pig Iron : The production of pig iron in the country has also increased.
Production of pig iron during the last three years was as under:

India 2005

456

(in million tonnes)

Main Producers

Secondary Producers

Total

1.02

3.06

4.08

2002-2003

1.107

4.178

5.285

2003-2004

0.971

4.25

5.221

Year

2001-2002

Source : fPC

("Provisional)

Sponge Iron: The Sponge Iron industry had been specially promoted so as
to provide an alternative to steel melting scrap which was increasingly
becoming scarce. Today, India is the largest producer of sponge iron in the
world. The production of spoilgeTrOn-was 5.44 million tonnes, during iOO102 was 6.44 million tonnes during 2002-03 and 8.085 million tonnes during
2003-04. _ . - -

r - - - - - - . '......

Consumption: The apparent consumption of finished steel during 1999-2000

was 25.09 million tonnes. It was 26.53 million tonnes during 2000-01, 27.43
million tonnes in 2001-02 and 28.89 million tonnes during 2002-03 and 30.265
million tonnes during 2003-04.
IMPORT AND EXPORT
Imports and exports of all items of iron and steel is freely allowed. Exports
of high grade iron ore, chrome ore and manganese ore are made through
designated canalising agencies subject to the ceilings imposed by the
Government. Efforts are made to ensure adequate supplies of domestic raw
materials to meet the requirements of engineering exporters.
Imports: India has been annually importing about one to 1.5 million tonnes
of finished steel. The imports mainly include hot rolled coils, cold rolled coils
and semis. Import of finished steel during 2000-01 was about 1.42 million
tonnes which came down marginally to 1.27 million tonnes during 2001-02
and was 1.50 million tonnes during 2002-03. Import of finished steel during
2003-04 is proviSionally estimated to be 1,650 million tonnes.
Exports: During 2000-01, the export of finished steel was 2.66 million tonnes,
2.704 million tonnes during 2001-02 and 4.50 million tOMes in 2002-03. The
exports of finished steel for 2003-04 have been provisionally estimated at 5.3
million tonnes. Earlier, exports consisted mainly of plates, structurals, bars and
rods, whereas now apart from these, hot rolled coils, cold rolled coils, colour
coated sheets, GP / GC sheets, pig iron and sponge iron are also being
exported.
RESEARCH AND DEVELOPMENT
Research and Development activity in iron and steel sector is carried out
mainly by the iron and steel plants themselves, national research laboratories,
academic institutions etc. There is a significant improvement in an!as of Iron
and steel making processes, up-gradation of raw material, product development,
increase in productivity, reduction in energy consumption, etc., by the in-house

Industry

457

Rand 0 activities. However, total Rand D expenditure in iron and steel sector
in India still remains relatively low at around 0.2 per cent of the total tum
over of steel plants.
The Government decided to spend up to Rs 150 crore from the interest
accrued on Steel Development Fund (SDF) loans given to SAIL and TISCO.
Accordingly, Ministry of Steel has constituted an Empowered Committee (Eq
under the chairmanship of Secretary (Steel). The EC has approved 31 research,
projects. Of this, sixteen research projects have been completed yielding
benefits to the iron and steel industries in the country.
DUTY EXEMYfION

Duty Exemption Scheme enables duty free import of inputs required for
export production. Ministry of Steel provides the technical inputs to DGFT
for grant of advance licence and for fixation of standard input-output norms,
which play an important role in boosting exports of Iron and Steel.
Duty Entitlement Pass Book (DEPB) Scheme, under Duty Remission
Scheme, allows drawback of import charges on inputs used in export product.
The Scheme has proved to be very attractive amongst the exporters and it
played a key role in encouraging export of Iron and Steel Products. However
Government has temporarily suspended the DEPB benefits on iron, steel and
ferrolloys w.e.f. 27 March 2004 as a measure to increase iron and steel
availability in the domestic market.

FERTILIZERS
Four decades of planning and development of the fertiliser industry have
brought India to the frontline of fertilizer producing countries. India today
is the thi~rgest producer of nitrogenous fertilizers in the~. There are,
at present, 57 fertilizer units manufacturing a wide range of nitrogenous and
complex fertilizers, including 29 units producing urea and nin~units producing
am~n~_t&phate as a by-product. Besides, there are about 64 medium and
small scale units producing single s~p!:rphosphate.
The production capacity of nitrogen has increase from a modest 85,000
tonnes in 1951-52 to 119.98 lakh tonnes in terms of nitrogen as on 1 April
2004 and that of phosphatiC fertilizers from 63,000 tonnes to 54.20 lakh tonnes
of P2 0 S during the same period. Against the nominal production of 16,000
tonnes of nitrogen and 11,000 tonnes of P20S in 1951-52, the country produced
106.32 lakh tonnes of nitrogen and 35.68 lakh tonnes of P2 Os during 200304. The production target for 2003-04 has been fixed at 117.02 lakh tonnes
of nitrogen and 48.78 lakh tonnes of phosphate.
The consumption, indigenous production and imports of fertilizers in
terms of fertilizer nutrients, (NPK) during the period 1998-99 to 2()()3..2004
are given below:

458

India 2005
(lakh tonnes)

Ye.u

Coneuarptien

Production

Imports

1998-99

167.98

136.24

31.45

1999-2000

180.70

142.89

40.75

2000-01

167.02

147.05

20.91

2001-02

175.60

146.28

23.99

2002-03

160.94

144.40

16.74

2003-04

174.74

142.00

12.32

With the objective of promoting balanced application of all the three

nutrients, i.e., nitrogen, phosphorus and potash and making available fertilizers
to farmers at affordable prices, the Government provides subsidy on urea,
which is the only fertilizer at present under statutory price control and
concession on decontrolled phosphatic and potassic fertilizers (P&K). 'The
details of amount of subsidy / concession paid on urea and decontrolled P&K
fertilizers during the last five years are given in the table below:
(Rs in crore)

Period

Amount of conC't'ssion
disbursed on
I' & K fertilizers

Amount of subsidy disbursed on

Indigenous
Imported
Total
urea
urea

1999-2000

4,500.0()

8,670.00

74.07

8,744.07

2000-01

4,319.00

9,480.00

0.98

9,480.98

2001-02

4,503.52

8,044.(KI

47.34

8,091.34

2002-03

3,224.58

7,790.00

0.00

7,790.00

2003-04

3,326.CKI

8,521.00

0.00

8,521.00

2004-05

4,046.00

8,143.15

473.00

8,616.15

(BE)

PUBLIC SECTOR UNDERTAKINGS

The public sector has ~en playing a dominant role in the fertilizer industry.
nae first State-owned fertilizer unit was set up in 1951 at Sindri in Bihar which
was followed by another plant at Nangal in Punjab. With the coming up of
another fertilizer plant at Trombay, the Government had decided to bring all
the public sector fertiliZE'T units under the management of a single undertaking
and the Fertilizer Corporation of India Limited (Fa) was accordingly
incorporated in January 1961. Subsequently, another PSU, the National
Fertilizers Limited, was ('stablished on 23 August 1974. On 1 April 1978, tht~
Fertilizer Corporation of Indin and the National Fertilizers Limited were reorganised into four companies on the basis of feedstock and geographical
considerations. At present, tl1l'TC arc eight public S('(ior undertakings under

Industry

459

the administrative control of the Department of Fertilizers.

The National Fertilizers Limited (NFL) has, at present, six operating
units, viz., Calcium Ammonium Nitrate (CAN) Plant at Nangal and the Urea
Plants at Nanga}, Bhatinda, Panipat and Vijaypur (two units). The total
installed capacity of NFL is 15.66 lakh MT (LMT) of nitrogen. During 200304 the company has produced 15.11 LMT of nitrogen.
Rashtriya Chemicals and Fertilizers Limited (RCF) is operating five
fertilizer plants at Trombay set up during the period from October 1965 to
July 1982 and a large gas-based fertilizer plant at ThaI which started
commercial production in 1985. The installed capacity of the RCF plants is
9.55 LMT of nitrogen and 1.20 LMT of phosphate. During 2003-04, the
production of nitrogen and phosphate was 8.75 LMT and 0.91 LMT, respectively.
The company produces certain chemicals too.
Hindusian Fertilizer Corporation Limited (HFe) and Fertilizer
Corporation of India Limited (FCI) were declared sick in November 1992.
After considering the rehabilitation proposals of these two PSUs, the
Government has on 5 September 2002, decided to close down HFC and FCI
excepting its Jodhpur Mining Organisation which has been hived off into a
new company.
Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) has been
constituted into a new company from 1 April 2002 after hiving off th~ Namrup
units from HFC. A major revamp of the units of BVFCL has been undertaken
at an approved cost of Rs 509.40 crore. Units I and III of BVFCL have been
commissioned in March 2002 after their revamp. The commercial production
of unit III is expected to commence from October 2004 as per the revised
schedule. After revamp, the production capacity of urea of the company will
be 5.55 LMT per annum. The company has produced 2.41 LMT of nitrogen
during 2003-04.
FCIL-Aravali Gypsum and Mineral India Limited (FAGMIL) has been
incorporated on 14 February 2003 after hiving off the Jodhpur Minina
Org_'!.r.!!~ation from FCI. Apart from taking over the ]MO which is engaged
il'l-~l'psum in four djstricts of the State of Ra@~ the new
company's objectives include extending the mining activities in other minerals
available in the State of Rajasthan. During 2003-04, the production of gypsum
was 5.22 LMT.
The Fertilisers and Chemicals Travancore Limited (FACT),
UdyogamandaJ (Kerala), has three operating units, one at Udyogmandal and'
two at Cochin. Besides fertilizers, the company is engaged in the manufacture
of chemicals. With the commissioning of a caprolactam plant in October 1990,
the company has entered the field of petro-chemicals also. FACT Engineering
and Design Organisation (FEDO), a division of the company, is engaged in
deSign, engineering, procurement, supervision of construction and
commissioning of fertiliser I chemical plant. The annual installed capacity of

460

India 2005

FACT is 1.74 LMT of nitrogen and 1.26 LMT of phosphate. During

2003-04, the company has produced 1.53 LMT of nitrogen and 1.14 LMT of
phosphate.
Madras Fertilizers Limited (MFL) is a joint venture, with the Government
of India holding 58.74 per cent of the equity share capital, the National Iranian
Oil Company holding 25.44 per cent and public equity holding 15.82 per cent.
The annual installed capacity of MFL is 3.67 LMT of nitrogen and 1.43 LMT
of phosphate. The company has produced 2.53 LMT nitrogen and 0.76 LMT
of phosphat(> during 2003-04.
Pyrites, Phosphates and Chemicals Limited (PPCL) was set up in
March 1960 for (;~xploration of pyrites, deposits and production of singlesuperphosphate at AmjhoJ'(' in Bihar, exploration-cum-production mining of
pyrites deposits as well as production of Single-superphosphate at Saladipura
in Rajasthan and mining of rock phosphate from the Mussorie phosphorite
deposits. At present, production in all the units is under suspension. The
company was declared as a sick company by the BIFR in April 2000. The
Government has decided to dose the company as it has not been found to
be techno-economically viable. BIFR has decided to wound up the company
on 20 November 2002 and has refE'rred the matter to the Patna High Court
for appointment of Official Liquidator to take charge of its assets.
Projects and Development India Limited (POlL), formerly known as
Fertilizer (Planning and Development) India Limited, is engaged in design
engineering, procurement and supervision of construction/ commissioning of
fertilizer and allied chemical plants. The company has played a pioneering
role in developing the know-how for manufacture of catalysts in India. The
company had been declared a sick company by the BIFR in December 1992.
With a view to revive tht' company, the Government in April 2003 has decided
to close down its Rand D Division and the Sindri unit of the E and C Division
and to revive the E and C Division located at Noida and Baroda and the
Catalyst Division at Sindri. The rehabilitation package, which was approved
by Government of India in April 2003, has also been approved by the BIFR
on 26 March 2004 and the same is presently under implementation.
COOPERATIVE SECTOR
Indian Fanners Fertiliser Cooperative Limited (IFFCO) incorporated on 3
November 1%7 and Krishak Bharti Cooperative Limited (KRIBHCO)
incorporated on 17 April 1980 are multi-State cooperative societies under the
administrative control of the Department of Fertilizers. IFFCO has six
operating units, one each at Kalol and Kandla in Gujarat and Phulpur, Phulpur
Expansion, Aonla and Aonla Expansion in Uttar Pradesh. At present, IFFCO's
instal1t'd capacity in terms of nutrients is 20.16 LMT of nitrogen and 8.25 LMf
of phosphdh. per annum. IFFCO has produced 19.78 LMT of nitrogen
and 8.33 LMT of phosphate during 2003...()4. KRIBHCO has a gas-based
ammonia-un'a plant at Hazira in Gujarat with a capacity to produce 7.95 LMT
in terms of nitrogen per annum. It has produced 8.16 LMT of nitrogen during
2003-04.

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461

CHEMICAL INDUSTRY
The Chemical Industry plays an important role in overall economic devt'lopmcnt
of our country. It is a knowledge-based industry requiring huge capital and
power for the production. The chemical industry accounts for about ]4 pt'r
cent of the manufacturing sector and also 14 per cent in total exports of tht.,
country. For the last few years, chemical industry is showing positive balanCt.'
of trade.
The Indian Chemical Industry ranks 12th by volume in the world
production of chemicals. The industry'S current turnover is about US$ 30
billion. Its contribution to the national revenue by way of custom and exci&'
duties is about 20 per cent.
Currently, the Indian Chemical Industry is in the midst of major
resh'Ucturing and consolidation phase. With the shift in emphasis on product
innovation, brand building and environmental friendliness, this industry is
increasingly moving towards greater customer orientation.

A major portion of chemicals produced in India comprises upstream

products and intermediates, which go into a variety of downstTl'am industries
including fertilisers, pharmaceuticals, textiles and plastics. These arc essentially
commodities exhibiting a high degree of price cyclicity, depending on the
international demand supply dynamics prevailing at the time.

DYE INDUSTRY
The Dyestuff sector is one of the important segments of the chemical industry
in India, having forward and backward linkages with a variety of sectors like
tcxtiles, leather, paper, plastics, printing ink and foodstuffs. The textile
industry accounts for the largest consumption of dyestuffs at nearly 70 per
cent. From being importers and distributors in the ]950' s, it has now emerged
as a very strong industry and a major foreign exchange earnt'r. India has
emerged as a global supplier of dyestuff and dyes intermediates, particularly
for reactive, acid, vat and direct dyes. As far as global production of dyes
is concerned, India accounts_ for six per n't of the world production.

CHLOR ALKALI INDUSTRY

At present, there are 41 units manufacturing caustic soda with installed
capacity of 20.36 lakh tonnes, which are operating at overall 70 per cent
capacity utilisation. There are 6 units engaged in the manufacture of soda ash,
with installed capacity of 18.65 lakh tonne5, which are operating at BO per
cent capacity utilisation.

PESnOOES INDUSTRY
Chemical fertIlisers and pesticides played an important role in the "Green
Revolution" during the 19605 and 1970s. The consumption of pesticides in
India is low in comparison to other countries. Indian exports of agrochemicals
have shown an impressive growth over the last five years. The key export
destination markets are USA, U.K., France, Netherlands, Belgium, Spain.
South Africa, Bangladesh, Malaysia and Singap<m!.

462

India 2005

India is one of the most dynamic generic pesticide manufacturer in the

world with more than 60 technical grade pesticides being manufactured
indigenously by 125 producers consisting of large and medium scale enterprises
(including about 10 multinational companies) and more than 500 pesticide
formulators spread over the country. The exports of pesticides have touched
1<... 1,500 crore during the year 2002-03. The global market for generic
pesticides is on an increasing trend and is likely to touch $27 billion by the
year 2005.
The Government is promoting research on the use of alternative and
unharmful pesticides using neem seeds. A country programme entitled
"Dl've[opment and Production of Neem Products as Environment Friendly
Pesticides" is being undertaken by the Department of Chemicals and
Petrochemicals with the financial assistance of United Nations Development
Programme (UNDP).
{'RODUCTION OF CHEMICALS
The details of production of inorganic, organic and dyestuffs for the last two
years:
Production (in '000 metric tonnes)
itl'm

2002-03

2003-04

2004-05

Alkali Chemicals

4177.00

4403.00

4843.3

403.8

433.9

477.3

lnor~ilnic

Chemicals

1315.8

1335.4

14611.9

Dyestuffs

26.2

26.6

29.3

Pestiddes

68.9

74.5

81.9

Org.ll1ic Chemic.lis

INSTITUTE OF PESTICIDE FORMULATION TECHNOLOGY

Institute of Pesticide Formulation Technology (IPFf) is an autonomous society
set up by the Government of India with the assistance of UNDP / UNIOO in
May 1991 at Gurgaon. The objective of the Institute is to promote advancement
of Pesticide Formulation Technology in India. The Institute is actively engaged
in the areas of development of new, safer and environment-friendly pesticide
formulations, promotion and transfer of such technology to the industrial
sector, etc. IPFT has succeeded in developing many new generation pesticide
formulations, namely, Suspension Concentrates (SC), Water Dispersible
Granules (WG), Concentrated Emulsions (CW), Capsulated Suspensions (CS)
haVing controlled released characteristics, Ultra Low Volume Formulations
(ULV), Micro-Emulsions (ME) and certairl prescription formulations specifically
designed to suit the need of the users, using indigenous available raw
material. These technologies are being transferred to the Indian pesticide
industry through contract project for large-scale production and usage in the
fieJd. The Institute has also succeeded in developing a novel self-spreading

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463

oil-based formulation for bio-pesticides, namely, Bacillus thur;ng;cnsis and H.

sphaerericus.
The Institute is one of the Technical Coordination Unit of the Regional
Network on Pesticide Production and Information for Asia and Pacific
(RENPAP) of the UNOP /UNlOO, in the field of the pesticide formulation
technology development and quality assurance.
PUBLIC SECTOR UNDERTAKINGS
There are two public sector units, namely, Hindustan Organic Chemicals
Limited (HOCl) and Hindustan Insecticides Limited (HIl) in the chemicals
sector.
Hindustan Organic Chemicals Limited was incorporated in Deccmbt'T
1960 at Rasayani, Raigad district in Maharashtra, with the main objective of

manufacturing chemical intermediates required for the manufacture of drugs,

dyestuffs, rubber chemicals and laminates, etc. The company has two units
at Rasayani (Maharashtra) and Cochin (Kerala). Rasayani unit produccs
organic group of heavy chemicals and intermediates such as nitrobenzene,
hydrogen, aniline, sulphUriC acid, acetic acid, etc. Cochin unit produces
phenol, acetic acid, etc. The company has floated a subSidiary called
I findustan Fluorocarbons Limited for manufacturing polytetrafluoroethylenc
(PTFE). The production of the company during 2002-03 was 3,06,802 MT with
a tumover of Rs 400.03 crore.
Hindustan Insecticides Limited (H1l), incorporated in 1954, has thTl'e
units at Bhatinda, Udyogamandal (Kerala) and Rasayani (Maharashtra). HIL
is engaged in the manufacture of DDT, Malathion. Endosulfan, and Butachlor,
the major pesticides used in the country. The production by the company
during 2002-2003 was 14,822 MT/Kl with a turnover of Rs 145.39 crore.
PHARMA PUBLIC SECTOR UNDERTAKING
Indian Drugs and Pharmaceuticals Limited (IOPl) was incorporated on 5
April 1%1. The company has five plants including two whoUy-owned
subsidiaries one each located in Rishikesh (Uttaranchal), Hyderabad (Andhra
Pradesh), Gurgaon (Haryana), Chennai (Tamil Nadu) and Muzaffarpur
(Bihar).
IDPl has also set up three joint sector units in collaboration with til<'
r('spective State Governments for production of quality pharmaceutical
formulations. These are Rajasthan Drugs and Pharmaceuticals LimHed (RDl'l),
Jaipur; Uttar Pradesh Drugs and Pharmaceuticals Limited (UPOPL), Lucknow
and Orissa Drugs and Chemicals Limited (ODCL), Bhubaneswar. One of the'
units, i.e., UPDPL has been taken over by UP Go as per of BIFR's order dat('d
26 March 2004.

BIFR in its meeting heJd on 4 December 2003 has passed the winding
up order for the IDPL and has made a reference to Hon'bJe High Court of
Punjab and Haryana at Chandigarh. In its hearing held on 9 April 2004 the

464

India 2005

Hon'ble High Court has adjorned the proceeding sine die in vit>w of the fact
that the appeal has been filed by Government of India in AAIFR.
Hindustan Antibiotics Limited (HAL) incorporated in March 1954, was
the first public sector undertaking in the field of pharmaceuticals. The
company was set up primarily with the objective of manufacturing penicillin
and other antibiotics. It also produces streptomycin, haymycin and aureofungin.
besides formulations. HAL has three subsidiary companies, promoted in
collaboration with the respective State Governments, Karnataka Antibiotics
and Pharmaceuticals Limited (KAPL), Bangalore, Maharashtra Antibiotics and
Pharmaceuticals Limited (MAPL), Nagpur, and Manipur State Drugs and
Pharmaceuticals Limited (MSDPL), Imphal.
The five companies incurred losses ever the years, and were referred
to BIFR. The Government has since decided to close BIL, SSPL, MAPL, DDCL,
and MSDPL.

PHARMACEUTICAL POLICY
In February 2002, the Government announced the 'Pharmaceutical Policy2002'. The salient features of this Policy are : (i) Industrial licensing for all
bulk drugs cleared by Drug Controller General (India), all their intermediates
and formulations will be abolished, subject to stipulations laid down from
time to timp in the Industrial Policy, except in the cases of : (a) bulk drugs
produced by the use of recombinant DNA technology, (b) bulk drugs requiring
in-vivo use of nucleic acid as the active principles, and (c) specific celli tissue
targeted formulations; (ii) Foreign investment up to 100 per cent will be
pt'rmitted, subject to stipulations laid down from time to time in the Industrial
Policy, through the automatic route in the case of all bulk drugs cleared by
Drug Controller General (India), all their intermediates and formulations,
except those, referred to in (i) above, kept under industrial licencing; (iii)
Automatic approval for Foreign Technology Agreements will be available in
the case of all bulk drugs cleared by Drug Controller General (India), all their
intermediates and formulations, except those, referred to in (i) above, kept
under industrial licencing for which a special procedure prescribed by the
Government would be followed; (iv) measures to give impetus to R&D in
the Drug Sector are as follow: (a) In principle approval to the establishment
of the Pharmact!utical Research and Development Support Fund (PRDSF)
under the administrative control of the Department of Science and Technology,
which will also constitute a Drug Development Promotion Board (DDPB) on
the lines of the Technology Development Board to administer the utilisation
of the PRDSF, (b) A manufacturer producing a new drug patented under the
Indian Patent Act, 1970, and not produced elsewhere, if developed through
indigenous R&D, would be eligjbJe for exemption from price control in respect
of that drug for a period of 15 years from the date of the commencement
of its commercial production in the country, (c) A manufacturer producing
a drug in the country by a process developed through indigenous R&D and
patented under the Indian Patent Act, 1970 would be eligible for exemption
from price control in respect of that drug till the expiry of the patent from

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465

the date of the commencement of its commercial production in the country

by the new patented process, (d) A formulation involving a new delivery
system developed through indigenous R&D and patented under the Indian
Patent Act, 1970 for process patent for formulation involving new delivery
system would be eligible for exemption from price control in favour of the
patent holder formulator from the date of the commencement of its commercial
production in the country till the expiry of the patent; (v) The system of price
control would be operated through a single list of price controIIed drugs
selected on the basis of criteria as laid down in the 'Pharmaceutical Policy2002" and formulations based thereon with a MAPE of 100 per cent for
indigenous formulations and margin upto 50 per cent for imported formulations.
The 279 items appearing in the alphabetical list of Essential Drugs in the
National Essential Drug List (1996) of the Ministry of Health and Family
Welfare and the 173 items, which are considered important by that Ministry
from the point of view of their use in various Health Programmes, in
emergency care, etc., with the exclusion, as in the past, therefrom of sera and
vaccines, blood products, combinations, etc., would form the total basket out
of which selection of bulk drugs would be made for price regulation; (vi)
Ceiling price may be fixed for any formulation, from time to time, and it
would be obligatory for all, including small-scale units or those marketing
under generic name, to follow the price so fixed; (vii) An independent body
of experts, called the National Pharmaceutical Pricing Authority has been
entrusted with the task of price-fixation I revision and other related matters;
(viii) Government would keep a close watch on the prices of medicines which
are taken out of price control. In case of prices of these medicines rise
unreasonably, the Government would take appropriate measures including
reclamping of price control; (ix) The provision of limiting profitability, as per
the Third Schedule of the present Drugs (Prices Control) Order, 1995 would
be done away with. However, if necessary to do so in public interest, price
of any formulation including a non-Scheduled formulation would be fixed
or revised by the Government.
A Public Interest Litigation in Kamataka High Court has resulted in an
Order dated 12 November 2002 which stopped the Government from
implementing the price control regime of the Pharmaceutical Policy-2002. lbe
Government have filed a Special Leave Petition in the Supreme Court against
the order of the Kamataka High Court.
DRUGS (PRICES CONTROL) ORDER, 1995

The Drugs (Prices Control) Order, 1995 (DPC0'95) was notified by the
Government on 6 January 1995. This Order came into force in place of
DPCO'1987. The DPCO'95 has taken into account the 'Modifications in the
Drug Policy, 1986', announced by the Government in September 1994 in regard
to the price control on drugs and has been issued in exercise of the powers
conferred on the Central Government by Section 3 of the Essential Commodities
Act, 1955.
NATIONAL INSTITUTE OF PHARMACEUTICAL EDUCATION AND
RESEARCH
The National Institute of Pharmaceutical Education and Research (NlPER) has

India 2005

466

been set up by the Government as an 'Institute of National Importance'. It

is the first national level institute in pharmaceutical sciences. One of the main
objectives of the Institute is to provide human resources of very high caliber
to meet the growing needs of academia and industry under the changed
environment. The Institute is involved in new drug discovery programmes
in diseases that are relevant to the country, i.e., tuberculosis, malaria,
leischmania and diabetes. The Institute has undertaken 161 projects from
various Industry I Government agencies and Rs 5.57 crore have accrued from
these activities and has also carried out 42 new pharmaceutical formula
studies for industry and have earned a total amount of Rs 1.62 crore. The
Institute has filed 12 patents.
With financial assistance from the Department of Science and Technology,
Government of India, the Institute has established a Bio-avai]ahility Centre,
which is one of the two centres in the world approved by the World Health
Organisation (WHO) for conducting Bio-availability studies for fixed dose
combinations of anti-tubercular drugs.
The Institute has been selected as a nodal agency in the capacity building
project funded by the World Bank under the Government of India, Ministry
of Health and Family Welfare for providing training to drug regulatory
personnel, analysts, and personnel from small-scale industry. The Institute
intends to provide training to about 2000 professional within the next five
years.

PETROCHEMICALS
The production of major petrochemicals (Synthetic Fihre, Polymers, Elastomers
and Surfactant Intermediate) increased from 6,553 thousand MT in 2002-03
to 7,007 thousand MT in 2003-04, registering a growth of about 7 per cent
in 2002-03 against 5 per cent growth in 2001-02. The capacity utilisation of
these over products was 97 per cent in 2003-04 as against 91.5 per cent in
2002-03. The capacity and the production of major petrochemicals during the
years 2001-02, 2002-03 and 2003-04 are giwn below.
(figures in OOO'MT)

Products

2001-02

200l-04 (P)

2002-2003

Capacity

Production

Capacity

Production

('~parity

producti(m

Synth. Fibl'{'S

2,123

1,667

2,165

1,755

2,172

1,868

Polym('rs

4,252

3,974

4,316

4,175

4,334

4,499

Elastom.'rs

]45

79

]45

8]

]49

88

Surfactant

409

425

421

447

421

45.3

88

90

115

95

115

9'1

7,017

6,235

7,162

6,553

7,191

7,007

Performilllcc Plastics

Total Petrochemicals
(P)- Pror,i.io",,1

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467

INDUSTRY PERFORMANCE

Synthetic Fibres : In respt.'Ct of Synthetic Fibres, compnsmg acrylic fibre,

nylon filament yam, nylon industrial yarIl, polyester filament yam, polyester
staple fibre, polypropylt>ne filament yam, polypropylene staple fibre and
polyester staple fiberfill, increase from 1,755 thousand MT in 2002-03 to 1,868
thousand MT in 2003-04 registering a growth of about 6.4 per cent. Maximum
increased in production was seen in the case of polyester staple fiberfill from
30 thousand MT. in 2002-03 to 39 thousand MT in 2003-04, an increase of 30
per cent whereas in case of AF, NIT lTC, PFY and PSF this growth was of
the order of 11.4 per cent, 10 per cent, 6 per cent and 5 per cent respectively.
The capacity utilisation of these synthetic fibres was however, 86 per cent in
2003-04 as against 81 per cent in 2002-03. The imports and exports of synthetic
fibres during the year 2002-03 were of the order of 190 thousand MT and
144 thousand MT respectively.
Polymers : The production of polymers (polyethylenes, polypropylene,
polystyrene and poly vinyl chloride) increased from 4,175 thousand MT in
2002-03 to 4,499 thousand MT in 2003-04 registering a growth of about 7.8
per cent, this growth was however of the order of 5.1 per cent during the
year 2002-03 over 2001-02. The capacity utilisation of these polymers was of
the order of 103.8 per cent in the year 2003-04 as against 96.7 per cent in
the year 2002-03. The polymer imports, which were of the order of 420
thousand MT during the year 2001-02, came down to 381 thousand MT during
the year 2002-03. On the other hand, the exports of the polymers have
increased from 567 thousand MT in the year 2001-02 to 761 thousand MT
in the year 2002-03. With the increase in exports of these polymers, it clearly
indicates that the country, which was net importer till few years ago, has
become net exporter now.
Clastomers, Surfactants and Performance Plastics : The production of
elastromers which mainly comprise of styrene butadiene rubber and poly
butadiene rubber (SBl. and PBR) increased from 81 thousand MT in 200203 to 88 thousand MT in 2003-04, an increase of 8.6 per cent. With one plant
of SBR lying idle in the country the capacity utilisation of these elastomers
was just 55 per cent to 60 per cent during the year 2002-03 and 2003-04.

Surfactant Intermediates, which are generally used in the detergent

industry, comprise of Linear Alkyl Benzene and Ethylene oxide. There has
been a growth in production of these surfactants of just one per cent during
2003-04 over 2002-03 as against 5 per cent during 2002-03 over 2001-02. The
capacity utilisation of these surfactants is more than 100 per cent in both the
years i.e., 2002-03 and 2003-04. The country has exported 32 thousand MT
and 56 thousand MT of surfactant intermediates during 2001-02 and 200203 respectively.
Performance Plastics mainly comprise of Acrylonitrile Butadiene Styrene
(ABS), Styrene Acrylonitrile (SAN), Nylon-6 &t 66, Polymethyl Methacrylate
(PMMA). These are mainly tailored for specific end use application in plastic

468

India 2005

enginet.>ring industry. The overall production of these pt~rformance plastics

has increased from 95 thousand MT in 2002-03 to 99 thousand MT in 200304. The capacity utilisation of these performance plastics was however
marginally higher of 86 per cent in 2003-04 as against 82.5 per cent in
2002-03.
Originally there were two manufacturing orgnisations in the
petrochemicals sector, which were under the administrative control of
Department of Chemicals and Petrochemicals, namely, Indian Petrochemical
Corporation Ltd., (IPCL), a PSU; Petrofils Corporatives Ltd., (peL), a Society
registered under the Multi-State Cooperative Societies Act, 1984.
IPCL manufactures and markets various petrochemical products like
polymers, chemicals, fibres and fibre intermediates. With effect from 4 June
2002, the company has ceased to be a Government company after disinvestments
of equity shares to the Strategic Partner, viz., Reliance Petro Investments
Limited. PCL was incurring losses from 1994-95 onwards and Government
decided in October 2000 to wind up PCL. The Society was formally closed
from 18 April 2001 and the LiqUidator was appointed by the Government
on 11 April 2001 to complete the process of winding up of the Society. Due
to stay order issued by the Debt Recovery Tribunal (DRT) on the applications
of financial institutions/Banks, Liquidator is not in a position to proceed
further for winding up PCL. Efforts are being made to get the stay vacated.
CENTRAL INSTITUTE OF PLASTIC ENGINEERING AND TECHNOLOGY

The Central Institute of Plastic Engineering and Technology (CIPET) was

established in 1968 as an autonomous organisation. The basic objective of
CIPET is to train students in various disciplines of plastics such as mould
making, mould design.. testing and characterisation of plastics, plastic processing,
etc., for the plastic industry. The institute has 12 Extension Centres viz.,
Ahmedabad, Amritsar, Bhopal, Bhubaneswar, Chennai, Hyderabad, Imphal,
Lucknow, Mysore, Patna, Haldia and Guwahati. CIPET is providing CAD /
CAM facilities at its centres. To manufacture jigs, fixtures, cutting tools, press
tools, plastic moulds, and to provide training facility in too) manufacturing
and tool design. From the academic year 2004-04 CIPET is introducing,
M.lech., course in Plastics Technology at Chennai and Bhubaneswar. The
courSt'S at CIPET are mainly aimed at improving quality of products matching
with international standards. Each centre has its Specialised thrust area.

MINERALS
India is richly endowed with minerals. Under the Constitution. mineral rights
and the administration of mining laws are vested in the respective State
governments. The Centre, however, regulates the development of minerals
under the Mines and Minerals (Development and Regulation) Act, 1957 and
the rules and regulations framed thereunder. This statute empowers the
Central government to formulate rules for: (i) The grant, renew~ etc., of
reconnaissance permits, prospecting licences and mining leases for major

Industry

469

minerals (viz., Mineral Concession Rules, 1960), (ii) the conservation and
dt'velopment of minerals (viz., Mineral Conservation and Development Rules,
1988 for major minerals except atomic, fud and minor minerals) and Granite
Conservation and Development Rules, 1999 for granite and Marble
Development and Conservation Rules, 2002 for marble and; (iii) the modification
of old leases. The Act came into force on 1 June 195ft Amendments to this
Act wer~ made in 1972, 1986, 1994 and 1999.
MINERAL RESOURCES
Thl> Principal minerals found in the country along with their estimated
reserves are given below:
COAL AND LIGNITE

Resource-wise coal occupies the pride of place in the inventory of mineral

resources in India. Incidentally, India ranks third in the world after China and
USA in coal production. Coal occurs in rock sequences mainly of two
-g;;;logical ages, namely, Gondwana, little over 200 million years in age and
in Tertiary deposits which were found at a much later geological epOch (about
55_!!illli on JUliUS). The major resources of Gondwana coal are located in
r-oaifields occupying the Indian heartland in the states of W~~~ngal,
Jha~~hand, Orissa, Ch~~t_t!sgarh, Ma~~y~. P~a.desh, Maharashtra, Uttar Pradesh
and Andhra'1'i'adesh. Tertiary coals occur in Assam, Arunachal Pradesh.
Ml.ghalaya---;ind-Nag~land. Besides, brown coal or lignite occurs in coastal
areas of Tamil Nadu, Gujarat and inland basin of Rajasthan. The total known
gl'ological reserves of a11 types of coal in Gondwana and Tertiary coalfields
stand estimat~40.748 billion tonnes as on 1 January 2003. Resourcewise
walfields of~ contain the largest reserves though m~tly of inferior
quality. Metallurgical coal is restricted to parts of Damodar Valley Coalfields
in-wes. Bengal and lharkhand and in the Cmtral Indian Coalfields, namely,
Sohanpur, Sonhat, Jhilmill and Satpura. The rest'rves of lignite have been
l'stimated as a little over 35.36 bilJion tonnl.'5 as nn 1 January 2002 out of which
th' major contributor is the lignite basin of Tamil Nadu.
BAUXITE

The total in situ reserves are 3.076 million tonncs as on 1 April 2000. About
H4 per cent of the in situ reserve is of metallurgical grade. The conditional

It'sources of bauxitE> are about 5,99,780 tonnes. In addition, prospective

resources are placed at 90 million tonnes. ~sa, Ai..~hra Pradesh, Chhattisgarh,
Cujarat, Maharashtra and ]harkWmc:i are the principal states where bauxite
deposits are loCated. Major reserves are concentrated in the East Coast Bauxite '
d<'posits of Orissa and Andhra Pradesh.
--_.,...........,.
CHROMITE

TI1I.' total in situ reserves of chromite art" estimated at 114 million tonnes as
,>n ] April 2000. Total geological resources wet'(' estimated at 187 million
tonnes, consisting of around 114 million torou.'S in situ reserves and about 73
million toMeS as conditional resources. The largest share (about 96 per cent)

470

India 2005

in the total geological resources is accounted by Cuttak district in Orissa.

Deposits of economic significance occur in Qtiss.a. Kw:nataka, Maharashtra,
Jharkhand, Madhya Pradt.osh, Chhattisgarh, Tamil Nadu and Manipur. However,
,,:,f~~_ctory grade rt.>servt.os of chromite~_y~mt';}gre
COPPER

The total i11 situ reserves of copper ore in the country are 712.5 million tonnes,
equivalent to 9.4 million tonnes of metal content. The all-India conditional
resourCt'S of copper are 722 million tonnes, (3.16 million tonnes of copper
metal) and prospective resources arc 0.6 million tonnes of copper ore. Major
and important .coPNr ote .. .dCPQS!~L2~_. located in Singhbh um district
~!_Ish.JWd1.. Balaghat ~ct (Madya Pradesh) a~!:! Jlwojhun~ AI~
districts (Rajasthan). In addition, there are small copper ore deposits in
-"GuJarat, Karnataka, Andhra Pradesh, Uttar Pradesh, Sikkim, MeghaJaya,
Maharashtra and West BengaL
GOLD
There are three important gold fields in the country, namely, Kolar Gold Field,
Kolar district, Hutti Gold. Field in Raichur district (both in Karnataka) and
Ramgiri "Gold Fi~'fd- i~ Anantpur di~tr:ict' (A;:;dhra Pradesh). Total in situ
reserves of gold ore are estimated at 22.4 million tonnes, with 116.50 tonnes
of metaL
IRON ORE

The total in situ reserves of iron ore in the country are about 1,23,17,275
thousand tonnes of haematite and 53,95,214 thousand tonnes of magnetite.
The resources of very high grade ore are limited and are restricted mainly
in .Bailadilll sector_ of Chhattisgarb and to a lesser extent in ]el1ary-Hos~t
an'a of Karnataka and Barajamda sector in Jharkhand and Orissa. Haematite
resources are located in Orissa, Jharkhand, Chhattisgarh, Kamataka, Goa,
Maharashtra, Andhra Pradl.osh and Rajasthan. Magnetite resources are located
in Karnataka, Andhra Pradesh, Goa, Kerala, Jharkhand, Rajasthan and Tamil
Nadu.
LEAD-ZINC
Lead-Zinc resources are located in Rajasthan, West Bengal, Andhra Pradesh,
Gujarat, Madhya Pradesh, Uttar Pradesh, Orissa, Maharashtra, Meghalaya,
Tamil Nadu and Sikkim. Total in situ reserves (all grades) of lead and zinc
ores are 231 million tonnes comprising metal content of 5.1 million tonnes
of lead and 17.02 million tonnes of zinc metal.
MANGANESE

The total in situ reserves of manganese ore are 406 million tonnes out of which
104 million tonnes are proved, 135 million tonnes are probable and 167 million
tonnes are in possible categorils. ~~in reserves fall in I<amatakaJollo~ed
by Orissa, Madhya Pradesh, Maharasntra and GOa. Minor occurrences of
manganese are in Andhra Pradesh, Jharkhand, Gujarat, Rajasthan and West

Industry

471

Bengal.

NICKEL
The total estimated conditional resources of nickel ore are 188.7 million tonnes
located in Orissa (174.48 million tonnes) and Jharkhand (9 million tonnes).
TUNGSTEN

The total in situ reserves of tungsten ore have been C'Stimated at 43.15 million
tonnes or 1,32,478 tonnes of W03 content. The ~ain reserves are at Degana,
Rajasthan. It also occurs in Maharashtra, Haryana, West sengal and Andhra
Vr-iiiresn:BARYfES
The in situ reserves of barytes are 85 million tonnes. The Mangam~t deposit
occurring i@daDah)district (Andhra Pradesh) is the single largest deposit
in t!!~_.~rld.. Minor occurrences of barytes are located in Rajasthan, West
Bengal, Chhattisgarh, Madhya Pradesh, Tamil Nadu, Maharashtra, Uttar
Pradesh, Jharkhand, Himachal Pradesh and Kamataka.
DIAMOND
Diamond deposits occur in three types 0 - ~i;;gi;~uch as kimberlite
e main diamond bearing
pipes, conglomerate bed~ and alluvial grave s.
~ in India are Panna belt in Madh a Prad
Munimadugu-Banganapallc
conglomerate in umool district, Wajrakarur kimberlite pipe in Anantapur
district and the gravels of Krishna river basin in Andhra Pradesh. Reserves
have been estimated only in Panna belt and Krishna Gravels in Andhra
Prad(!sh. The total in situ reserves are about 26,43,824 carats. There are
conditional resources of 19,36,512 carat. The new kimberlite fields are
discovered recently in Raichur-Gulbarga districts of Kamataka.
DOLOMITE

Dolomite occurrences are widespread in almost all parts of the country. Thf.'
total ;11 silu reserves of aU grades of dolomite af{' 7,349 mjIJioo tonn('S. The
major share of about 90 per cent reserves is distributed in the states of Madhya
Pradesh, Chhattisgarh. Orissa, Gujarat, l<amataka, West Bengal, Uttar Pradl~sh
and Maharashtra. The reserves of BF and SMS grad<"S are large, but those
of refractory grade at 425 million tonnes constitute only 5.8 per cent of the
all India reserve.

FIRECLAY
Fireclay occurs as a bedded deposit, mostly aSS()riatl~ with coal measures
of Gondwana and Tertiary periods. Important dt'posits arc associatt'd with
Jharia and Raniganj coalfields in Jharkhand and W(;'St Benga), Korba coalfield
in Chhattisgarh and Neyv('1i Lignite field in Tamil Nadu. Notablt~ ocrun-{'OCl~S
01 fireclay not associated with coal measures are known in Gujarat, JabaJpur
n'gion of Madhya Pradesh and BeJpaha....Sundergarh areas of Orissa. The j"
situ reserves of fireclay are about 7(1] million (olmes.

472

India 2005

FLUORSPAR

Total in situ reserves of fluorspar in India are 14.15 million tonnes. Commercial
deposits of fluorspar are located in ~ Rajasthan, Madhya Pradesh and
Maharashtra.
.
_.-GYPSUM

The ill situ reserves of gypsum are estimated at 383 million tonnes. Out of
this two millions are of surgical/plaster grade. 92 million tonnes of fertiliser /
pottery grade, 76 million tonnes of cement/paint grade, 13 million tonnes of
soil reclamation grade and the rest is unclassified. The production of gypsum
is confined to Rajasthan, Tamil N~du, Ja_!E_!l!uAU1<LKa:;lunir, and ~at.
Rajasthan is thc'main-produwof gypsum followed by Jammu and Kashmir.
GRAPHITE
The in situ reserves of graphite are 16 million tonnes.~ is the major
producer of graphite. Almost the entire reserves of Tamil Nadu under proved
category are in Rama~~.~.Y!ilDl district. Deposits of commerci"al importance
are located iiCAnafi~l'Iadt'sh, Jharkhand, Gujarat, Karnataka, Kerala,
Madhya Pradesh, Maharashtra, Orissa-;- Rajasthan and Tamil ~u.
ILMENITE

The ill situ reserves of ilmenite are 374.62 million tonnes. Ilmenite occurs
mainly in beach sand deposits right from Ratnagiri (Maharashtra) to coast
in Kerala, Tamil Nadu and orissa. The mineral is also found in Andhra
Pradesh, Bihar, and West Bengal.
KAOLIN

The all India ill situ reserves of kaolin, including white clay of all categories
arc about 2,353 million tonnes. Principal producing states are Kerala, West
Bengal, Bihar, Rajasthan and Gujarat. Ball clay is mainly produced in West
Godavari district of Andhra Pradesh and Bikaner district of Rajasthan.
LIMESTONE

The total ill situ reserves of limestone of all categories and grades are placed
at 1,69,941 million tonnes. The total conditional reserves have been estimated
at 3,713 million tonnes. The major share of its production comes from Madhya
,_Pradesh, Chhattisgarh, Andhra Pradesh, Gujarat, Rajastnan~ Kamatika, Tamil
Nadu, Maharashtra, Himachal Pradesh, Orissa, Bihar, Uttaranchal and Uttar
Pradesh. The remaining part comes from Assam, Haryana, Jammu and
Kashmir, Kerala and Meghalaya.
MICA

India is the world's leading producer of sheet mica and accounts for about
60 per cent of globaCmlCa traae:-tmportanfmk~ring pegmatite ocCurs
in Andhra Pradesh, Jharkhand, Bihar, Rajasthan. The total in situ reserves of
mica in the country are placed at 59,065 tonnes. The in situ reserves of mica

Industry

473

in Andhra Pradesh are 42,626 thousand tonnes, Bihar 12,938 tonnes, }harkhand
1,494 tonnes and in Rajasthan 2,007 tonm's.
MAGNESITE

The total in situ reserves of magnesite are about 415 million tonnes of which
76 million tonnes are in the proved category. Major deposits of magnesite are
found in Uttaranchal, Tamil Nadu and Rajasthan while minor occurrences are
in Jammu and Kashmir, Kamataka, Himachal Pradesh and Kerala.
KYANITE AND SILLIMANITE

The total in situ reserves of kyanite and sillimanite in the country are 8.1
million tonnes and 58.8 million tonnes respectively. Besides, conditional
resources of 95.3 million tonnes of kijanite are also estimated. For sillimanite,
conditional resources are estimated to be 5.9 million tonnes. Kyanite deposits
arc located in Maharashtra, Kamataka, }harkhand, Rajasthan, and Andhra
Pradesh. Sillimanite resources are in Tamil Nadu, Orissa, Kerala, Andhra
Pradesh and West Bengal with minor occurrences in Assam, Jharkhand,
Kamataka, Madhya Pradesh, Maharashtra, Mcghalaya and Rajasthan.
PHOSPHATE MINERALS

Deposits of phosphorites are located in Madhya Pradesh, Rajasthan, Uttaranchal,

U.P., and Gujarat. Besides, apatite deposits of commercial importance are
reported from }harkhand, West Bengal, Andhra Pradesh, Tamil Nadu and
Rajasthan. In situ reserves of phosphorites are estimated at 193.23 million
tonncs of all grades and of apatite at 14.83 milHon tonnes.
OTHER MINERALS

Other minerals occurring in significant quantities in India are bentonite

(Rajasthan, Gujarat, Jharkhand and Jammu and Kashmir), corundum
(Karnataka, Andhra Pradesh, Rajasthan and Chhattisgarh), calcite (Andhra
Pradesh, Rajasthan, Madhya Pradesh. Tamil Nadu, Haryana, Karnataka, Uttar
Pradesh and Gujarat), fuller's earth (Rajasthan, }harkhand, Bihar, Andhra
Pradesh, Tamil Nadu, Maharashtra, West Bengal and Karnataka), garnet
(Tamil Nadu, Orissa, Andhra Pradesh, Rajasthan and Kerala), pyrites
Oharkhand, Rajasthan, Kamataka, Himachal Pradesh and Andhra Pradesh),
steatite (Rajasthan, Uttar Pradesh, Kerala, Maharashtra and Madhya Pradesh),
wollastonite (Rajasthan and Gujarat), zircon (beach sand of Kerala, Tamil
Nadu, Andhra Pradesh and Orissa) and quartz and silica minerals are
widespread and occur in nearly all states. Besides, the country has vast
resources of marble, slate and sandstone. Granite is mainly mined in Tamil
Nadu, Kamataka, Andhra Pradesh and Rajasthan; marble in Rajasthan,
Gujarat and Uttar Pradesh; slate in Chhattisgarh, Madhya Pradesh, Haryana
and Andhra Pradesh; and sandstone in Rajasthan.
MINERAL EXPLORATION AND DEVELOPMENT

of organisations are engaged in the exploration and development

of mineral resources in India. These include Geological Survey of India (GSJ),

A number

474

India 2005

Mineral Exploration Corporation Limited (MECL), Indian Bureau of Mines

(IBM) and the public sector undertakings under the administrative control
of the Ministry of Mines.
GEOLOGICAL SURVEY OF INDIA
The Geological Survey of India (GSI) is a premier national scientific survey
and research organisation and is also the principal provider of basic earth
science information to the Government, industry and general public as well
as responsive participant in international geoscientific fora. Set up in 1851,
the GSI over the years has expanded it.. role in economic and social
development of the country. The vibrant steel, coal, metals, cement and hydel
power industries, bear testimony to the GSI's relevance in the national context.
Management of risks due to natural hazards such as floods, landslides and
earthquakes, defining and delineating areas prone to environmental degradation
and providing geological inputs to optimise developments in the transport
and communication sectors have rapidly become important functions of the
survey. GSI' 5 role has also I rossed the shoreline of the country to include the
Exclusive Economic Zone (hEZ) as well as in extended continental shels in
the surrounding ocean and also in the icy continent of Antarctica for
geoscientific studies and inventvry of resources. It has grown into one of the
largest scientific organisation.. in the country with a personnel strength of
12,399 as on 31 March 2004.
The GSI's main focus is on development of minerals like gold, diamond,
base metals, coal and lignite besides ferrous and industrial refractory minerals,
etc. Creation and updating of national geoscientific information and knowledge
base through ground marine and airborne survey and concept oriented
thematic mapping/studies, Integrated Natural Resources Survey for Rural
Development (Projt..'Ct OOVEMAP), geotechnical investigations related to
water resources development, geo-environmental investigations, natural hazards
studies and disaster management including, seismotectonic and landslides
zonation studies are other areas of activity.

INDIAN BUREAU OF MINES

Indian Bureau of Mines, established on 1 March 1948 is a multi-disciplinary
scientific and technical organisation under Ministry of Mines with statutory
and developmental responsibilities for conservation and systematic exploitation
of mineral resources other than coal, petroleum and natural gas, atomic
minerals and minor minerals.
The IBM with its headquarters at Nagpur, has three Zonal Offires,
12 Regional Offices and two Sub-Regional offices spread all over the country
Apart from the Modem Mineral Processing Laboratory Pilot Plant constructed
with the UNDP assistance at Nagpur, two Regional Ore Dressing Laboratories
and Pilot Plant are in operation at Ajmer and Bangalore.
The responsibility and activities of IBM are guided by an eleven-point
charter laid down by the Government in February 2003. Thus the current

Industry

475

functions of mM include, promoting conservation of mineral resources by way

of inspection of mines; scrutiny and approval of mining plans, mining schemes
and mine closure plans; conducting environmental studies and related
activities; evolving technologies for upgradation of low-grade ores and
identifying avenues for their utilisation; Providing Technical Consultancy
Services on mining, geology, mineral processing and environment; undertaking
scientific, techno-economic research oriented studies in various aspects of
mining, geological, ore beneficiation and environmental studies; preparing
mineral maps with forest overlays and National Mineral Inventory of mineral
n.'SOurces; functioning as a data bank for mines and minerals and generating
technical and statistical publications; imparting training to scientific, technical
and other cadres of mM and also to persons from the mining industry and
other agencies for human resources development; promoting and monitoring
community development activities in the mining areas; advising the Central
and State Governments on all aspects of mineral industry, trade and
legislation.

PUBLIC SECTOR UNDERTAKINGS

MINERAL EXPLORATION CORPORATION LIMITED

The Mineral Exploration Corporation Limited (MECL) was established as

public sector undertaking by the Government in 1972 with the main objective
of systematic exploration of minerals and bridging the gap between the
discovery of mineral prospect and its eventual exploitation. Its major functions
are to plan, promote, organise and implement programmes for the exploration
of mineral resources. The Corporation has its headquarters at Nagpur. Ouring
2003-2004, MECL has established over 2,081 million tonnes of reserves for a
variety of minerals and the turnover of the company was Rs 60.10 crore.
NATIONAL ALUMINIUM COMPANY LIMITED
The National Aluminium Company Ltd., (NALC_91kJQ.Cated in Orissa and
in I~dia'~_1argest aluminium p~~~~m1!!.~. The Company was incorporated
on 7 January 1981 with its registered office at Bhubaneswar. After first phase
expansion (which is in advanced stages of ~pletion) approved by the
Government at an investment of Rs 4,200 crore, the Plant complex consists
of 4.8 Million Tonnes Per Year (MfPY) Bauxite Mine at Panchpatmali (District
Koraput), 1,575 MTPY Alumina Refinery at Oamanjodi (District Koraput), port
facilities at Visakhapatnam for import of 1,46,000 tonnes of caustic soda lye
and export of about 3,75,000 tonnes of alumina. 'The Aluminium Smelter with ,
a present capacity of 2.88,000 MTPY alongwith 8 x 120 MW Captive Power
Plant is located at Angul (District Angul). The company of Aluminium Smelter
will increase to 3,45,000 MfPY after completion.
HINDUSTAN COPPER LIMITED

The Hindustan Copper Umited (HCL), thf:.. sole producer of primary copper
in the country was incorporated on 9 Novem&i' 1967, as a public sector
enterprise under the then Ministry of Steel and Mines (Government of India)

476

India 2005

with Khetri Copper Complex as its main unit. Subsequently, Indian Copper
Corporation was nationalised dnd taken over by HCL in 1972. Today, the main
units of the Company are: (i) Khetri Copper Complex in Rajasthan, (ti) Indian
Copper Complex in Jharkhand, (iii) Malanjkhand Copper Project in Madhya
Pradesh and (iv) TaJoja Copper Project in Maharashtra. HCL produces primary
copper in the form of cdthodes, wire bars and wire rods. The Company is
also engaged in the production of gold, silver, selenium, tellurium and
manufacture of single supper phosphate sulphuric acid, copper sulphate and
nickel sulphate as by-products. The total installed capacity of HCL is 47,500
\ tpa refined copper and 60,000 tpa wirerods at Taloja. During 2003-2004 HCL
produced 28.95 lakh tonnes of ore, 38,406 tonnes of anode and 30,598 tonnes
of refined copper (cathodt).

BHARAT GOLD MINES LIMITED

The Bharat Gold Mines Limited (BGML) having registered office at Kolar Gold
Fields was incorporated as a public sector company under the Ministry of
Mines on 1 April 1972. It wa<; engaged in mining and production of gold from
its captive mines. The company was referred to the Board for Industrial and
Finandal Reconstruction (BIFR) who gave its verdict in June 2000 to wind
up BGML in public interest. The verdict of BIFR was upheld by Appellate
Authority for Industrial and Financial Reconstruction (AAIFR). However, the
company was dosed after the Ministry of Labour, accorded permission for
closure of BGML w.c.f. I March 2001, after prolonged litigation the Division
Bench of High Court of Karnataka in its order dated 26 September 2003 has
also upheld the winding up / closure orders passed by BIFR/ AAIFR and
Ministry of Labour. High Court has made certain recommendations to the
Government which are under consideration.

PUBLIC SECTOR UNDERTAKINGS SINCE PRIVATISED

BHARAT ALUMINIUM COMPANY LIMITED
The BALCO was incorporated on 27 November 1965 as the first primary
aluminium producing undertaking in the public sector. The company is
operating the Korba Aluminium Complex in Bilaspur district of Madhya
Pradesh and Bidhanbag unit to Asansol in West Bengal. The Korba Aluminium
Complex has facilities for production of two lakh tonnes of alumina per
annum and one lakh tonnes of saleable aluminium metal, i.e., rolled products,
extrutions, properzi rods and ingots. The Government has transferred 51 per
cent of its equity together with the management control in favour of M/ s
Sterlite Industries (India) Ltd., w.e.f. 2 March 2001.
HINDUSTAN ZINC LIMITED
The Hindustan Zinc Umited (HZL) was incorporated on 10 January 1966 to
take over operations of the erstwhile Metal Corporation of India Limited, to
develop mining and smelting capacities to substantially meet the domestic
demand of zinc and lead metals. The Government of India disinvested its
26 per cent equity in HZL in favour of Sterlite Opportunities and Ventures

Industry

477

Ltd., (SOVL) on 28 March 2002 and the management control of the company
has been transferred to SOVL on 11 April 2002, Subsequently SOVL acquired
20 per cent equity shares from the market through its open offer. On 11
November 2003, Government of India further off-loaded 18.92 per cent of its
equity in HZL in favour of SOVL in response to the call option exercised by
SOVL in terms of the Shareholders' Agl'l'ement. The current shareholding of
tht:, SOVL in HZL is 64.92 per cent and that of Government of India is 29.54
per cent.

The HZL with its headquarters at Udaipur operates three lead-zinc mines
with a total lead-zinc ore production capacity of 4 million tonnes per annum.
HZL also operates thl't.-'C smelters with a combined capacity of 2.30 lakh tonnes
per annum (TPA) of zinc and 36,000 tonnes of lead. HZL produced 2,25,337
tonnes of zinc and 33,704 tonnes of lead metal during 2003-2004.
MINERAL AND METAL PRODUCTION
Production of important minerals during 2001-2002 and 2002-2003 is given
below:
(Value in Rs crore)
Minerals

2001-02 (P)

Unit

Value

Qty

ALL MINERALS
Fuel
Coal
Lignite
Natural Gas (utilised)
Petroleum (crude)
METALLIC MINERALS
Bduxite

2002-03 (E)
Qty

Value
58065.92

55357.94
M.Tonnes
M.Tonnes
M.C.M

321-1
24
28037

21647.96
1695.12
8138.82

341
26
29969

M.Tonnes

32

17841.82

33

22426.23
1776.63
8709.42
18404.00

tho tonnes

8689

190.30

9777

215.65

Chromitc

tho tonnes

1549

266.0

tho tonnes

278.92

Kg.

164
2810

3066
153

497.25

Copper (Cone.)
Gold
Iron Ore

tho tonnes

86226

128.10
2496.92

Lead (Cone.)

tho tonnes

Manganese Ore
Zinc (Cone.)

tho tonnes

52
1587

64.98
213.23

tho tonnes

399

305.28

3049
96962
59

242.%
139.16
2710.44

64.11

1662

245.52

486

380.00

Other Met. Minerals

NON-MET. MINERALS
Apatite

tho tonnes

12

2.22

11

2.10

Asbestos

tho tonnes

11

1.95

14

1.69

Barytes

tho tonnes

916

35.37

675

32.50

81436

39.60

39.63
85.72

tho tonnes

3201

75.79

84407
3329

Fireclay

tho tonnes

494

5.98

463

5.09

FlUorite (Cone. )

tho tonnes

5.39

3.28

Diamond

Carats

Dolomite

478

India 2005

Fluorite (Graded)

tho tonnes

14

1.67

0.92
9.90

Gamet (Abrasive)

tho tonnes

281

8.45

443

Gypsum

tho tonnes

2859

40.14

2842

39.40

Kaolin

tho tonnes

854

SO.86

797

88.65

Laterite

tho tonnes

615

3.99

606

4.2

Limestone

M.Tonnes

131

1384.4

146

1524.94

Magnesite

tho tonnes

283

34.69

273

31.84

Mica

tonnes

2026

4.88

1217

3.08

Phosphorite

tho tonnes

1239

188.5

1197

198.82

Shale

tho tonnes

915

1.69

1344

2.71

Silica Sand

tho tonnes

1652

]8

]691

]5.7

Sillimanite

tho tonnes

15

5.43

14

4.7

Steatite

tho tonnes

579

35.27

676

33.00

Wollastonite

tho tonnes

136

9.44

173

11.89

SMALL INDUSTRIES DEVELOPMENT ORGANISATION

The Small Industries Development Organisation (5100), set up in 1954,
functions as an apex body for sustained and organised growth of SmaU-Scale
Industries (SSls). Being an apex/nodal organ, it provides a comprehensive
range of facilities and services through its network of 30 Small Industries
Service Institutes (SISIs), 28 Branch SISIs, four RegionaJ Testing Centres
(RTCs), seven Field Testing Stations (FTSs), six Process-rum-Product
Development Centres (PPDCs), 11 Tool Rooms and two Specialised Institutes
namely, Institute for Design of Electrical Measuring Instruments (IDEMI) and
Electronics Service and Training Centre (ESTC).
SMALL-SCALE SECTOR

The s;nall-scale sector has acquired a prominent place in the socio-economic

development of the country since Independence. It has contributed to the
overall growth of the Gross Domestic Product (GOP) as well as in terms of
employment and exports. As per the Third All India Census of S51s
(Registered and Unregistered units) held for the year 2001-02, there were
105.21 lakh 55I units in the country, out of which 13.75 lakh were registered
working units and 91.46 takh unregistered units. Their contribution to
production was Rs 2,82,270 crore and to employment at 249.09 lakh persons.
It is estimated that during 2003-04, the number of 551 units has increased to
115.22 lakh from 110.10 lakh in the previous year registering a growth of 4.7
per cent. The value of production at rurrent prices by the 551 units also
increased by 11.6 per cent to Rs 3,48,059 crore from Rs 3,11,993 crore during
2002-03. The sector is estimated to have grown at the rate of 7.5 per cent at
constant prices over the previous year. Employment is estimated to have
increased to 273.971akh persons from 261.381~ persons in the previous year.
551 sector has been registering a higher growth rate than the overall

Industry

479

industrial sector in the past few years consistently. It is contributing significantly

towards the economic growth of the nation with over 39 per cent of the
industrial production and nearly 34 per cent of direct exports. The sector has
emerged as an engine of growth in the new millennium. In recognition of
this role, the 55} Sector has been assigned targets of 12 per cent annual growth
in production and creation of 4.4 million additional employment opportunities
in the Tenth Five Year Plan.
The investment limit for the 551 sector continues to be R" one crore. The
Ministry of SSI has brought out a specific list of hi-tech and export-oriented
industries whose investment limit is raised upto Rs five crore to facilitate
suitable technology upgradation to enable them to maintain a competitive
edge. The exemption from excise duty for SSI sector continues to be Rs one
Cflll'e. The limit for providing guarantee cover to collateral free loans under
the Credit Guarantee Scheme has been revised to Rs 25 lakh. The Integrated
Infrastructural Development (110) Scheme has been extended to cover the
entire country with 50 per cent reservation for rural areas. The funds available
under the non-Iapsable pool for the north-east are being used for setting up
incubation centres for duster development and for the lID Scheme. 5100 has
modified the Marketing Development Assistance (MDA) programme and
introduced a 55I-MDA Scheme, providing financial assistance to units
adopting bar-coding by Mis EAN India.

Highlights of Union Budget 2004-05 : 85 items to be taken out of the SS}

Reservation List. Ceiling for loans under the Credit Linked Capital Subsidy
Scheme enhanced from Rs 40 lakh to Rs 1 crore. The rate of subsidy also raised
from 12 per cent to 15 per cent. In order to promote agro-processing industries,
deduction of 100 per cent of profits allowed for 5 years and 25 per cent of
profits for the next 5 years in the case of new agro-processing industries, set
up to process, preserve and package fruits and vegetables. Customs duty
reduced on non-alloy steel from 15 per cent to 10 per cent. Excuse Duty on
steel increased from 8 per cent to 12 per cent. Peak rate of customs duty
reduced to 15 per cent on alloy steel, copper, lead, zinc and base metals. Excise
Duty exempted on Hand tools such as spades, shovels, sickles, etc. Excise duty
on matches made in the mechanised! semi-mechanised sector enhanced from
8 per cent without Cenvat credit to 16 per cent with Cenvat credit. Mandatory
Ccnvat duty withdawn from the Handloom and Powerloom sectors. Excise
duty reduced from 16 per cent to 8 per cent on gas stoves of Retail Sale Price
(RSP) not exceeding Rs 2000 per unit; and Retail Sale Price limit for availing
excise duty exemption of footwear raised from Rs 125 to Rs 250 per pair.
Technology Upgrad4tio" in SSl Sector : The opening up of the economy
has exposed the 551 sector to global and domestic competition. With a view
to enhancing the competitiveness of this sector, the Government has taken
various measures, which include: (a) Assistance to industry associations!
voluntary agencies to set up testing centres; (b) Field Testing Stations provide
testing services and services for quality upgradation; (c) Under the Integrated
Technology Upgradation and Management Programme 59 clusters have been

480

India 2005

taken up, which include National Programme for the Development of Toy
industry, Stone industry, Lock industry, Machine Tool industry and Hand Tool
industry taken up in collaboration with UNIDO; (d) under the scheme of
promoting ISO 9000/14001 Certification, SSl units are given financial support
by way of reimbursing 75 per cent of their expenditure to obtain Certification
subject to a maximum of Rc; 75,000; (e) Under the Credit Linked Capital
Subsidy Scheme for Technoiogy Upgradation, 15 per cent capital subsidy is
admissible on the loans upto Rs one crore, advanced by Scheduled Commercial
Banks/SFCs/NSIC to SSls for technology upgradation; and (f) Setting up of
Biotech Cell in SIDO.
Credit Delivery to SSI Sector : To ensure credit delivery to the SSI sector,
the following steps have been taken by the Government: (i) The composite
loan limit has been raised from Rs 25 lakh to Rs 50 lakh; (ii) the limit of
collateral free loans has been raised from Rs 5 lakh to Rs 15 lakh and upto
Rs 25 lakh in case of 55! Units with a good track record; (iii) Laghu Udyami
Credit Card (LUCC) Scheme has been liberalised by enhancing the credit limit
from Rs 2 lakh to Rs 10 lakh, for borrowers haVing a satisfactory track record;
(iv) Incorporating credit requirement in the identified clusters in the banks
Annual Credit Plans for the year 2003-04; (v) Adequate publicity by the banks
to the various schemes facilities extended to the SSI sector like availability
of collateral-free / composite loan; (vi) As p(.>r the announcement made in the
Union Budget 2003-04, Indian Banks Association (lBA) has advised the banks
to adopt the interest rate band of two per cent above and below their Prime
Lending Rates (PLRs) for advances to SSI; and (vii) The Government
announced on 9 January 2004 creation of a Small and Medium Enterprises
(SME) Fund under SIOBI initially of Rs 10,000 crore to address inter-alia the
problem of inadequacy of financial resources at competitive rates for the small
scale sector. The Fund has been operationalised by SIOBI from 1 April 2004.
Measures for Export Promotion : Export promotion from the small scale
sector has been accorded a high priority in the India's export promotion
strategy. It includes simplification of export procedures and provides incentives
to the SS sector for higher production to maximise export earnings. Following
schemes have been formulated to help 55Is in exporting their products; (i)
Products of SSI exporters are displayed in international exhibitions and the
expenditure incurred is met by the Government; (ii) To acquaint 551 exporters
with latest packaging standards, techniques, etc. training programmes on
packaging for exports are organised in various parts of the country, in
association with the Indian Institute of Packaging; (iii) The SSI-MDA Scheme
offers funding for : Individual assistance for participation in overseas fairs
exhibitions and individual overseas study tours, or tours of individuals as
member of a trade delegation going abroad. The Scheme also offers assistance
for sector Specific market studies by Industry Association / Export Promotion
Councils/Federation of Indian Export Organisations; initiating/contesting
anti-dumping cases by 551 Associations; and 75 per cent reimbursement of
expenses incurred on adopting bar coding by EAN India up to Rs 20,000.

Industry

481

AGRO AND RURAL INDUSTRIES

Development of agro and rural industries based on local raw materials, skills
and technology has been identified as one of the most important activities
fur gainful employment in the rural non-farm sector and for overall growth
of the national economy. Various policies and programmes are being
implemented by the Government through Khadi and Village Industries
Commission (KVIC) and Coir Board, etc. For promotion of agro and rural
industrief. in rural areas and small towns.
For the development of Khadi and Village Industries (KVI) Sector, the
Government is implementing various programmes/schemes through KVle.
As a result of these efforts, production which was at the level of Rs 16.47
crore (Khadi Rs 5.54 crore and Villages Industries Rs 10.93 crore) in 1955-56,
has increased to the level of Rs 9715.91 crore (Khadi Rs 451.93 crore and V.I.
Rs. 9263.98 crore) in 2003-04. Similarly employment level has also increased
to 71.18 lakh persons (Khadi 8.61 lakh and V.I. 62.56 lakh). It is expected that
by the end of 2004-05, the production will reach at the level of 11398.06 crore
(Khadi Rs 511.61 crore and V.I. Rs 10886.45 crore) with corresponding
employment of 76.82 lakh (Khadi 8.86 lakh and V.I. 67.96 lakh).
For Setting up projects and to generate more additional employment in
rural areas as well as small towns, a Scheme namely Rural Employment
Generation Programme (REGP) is being implemented by the Government. The
programme is applicable to any industry set up in any rural areas or in towns
where population does not exceed 20,000. The benefits of the scheme are
available to all individuals, institutions / societies / trusts / limited companies
for projects upto Rs 25 lakh other than sectors included in the negative list
like meat processing, tobacco production. crop cultivation, projects that cause
environmental problems, etc. One of the objectives of this programme is to
reduce migration from rural to urban areas. The beneficiary is required to
invest his own contribution of ten per cent of the project cost (5 per cent in
the case of weaker sections). This scheme is being implemented through Public
Sector Banks, Regional Rural Banks and on a selective basic through
Cooperative Banks and Private Sector Scheduled Commercial Banks.
Since the inception of the REGP scheme in April 1995, 1,86,252 projects
have been set up and 22.73 lakh job opportunities have been generated so
far. During the year 2003-2004, 24,747 projects were set up generating 4.71
lakh employment opportunities. Special attention was given to sanctioning
projects benefiting weaker sections of the society.
In order to strengthening the KVI sector, some new initiatives have also
been taken by the Government viz., Quality Control in I<hadi, Project
Development, Design Intervention and Packaging (PRODIP), Insurance to
Khadi Artisans, Credit Flow, Rural Industries Service Centres (RISe), Brand
Promotion, Marketing Federation, Renovation and Modernisation of Bhawans
and Sales outlets, etc.
As a result of the efforts of the Govenunent for promotion of roir

482

India 2005

jndustrif'~

has retained its position as the largest roducer and su Iier

of coir an coir ET~.9ycts: The share of Indlam t e global production of coir
is~O ptrcent (in terms of fibre). Although Sri Lanka has a monopoly in the
supply of coir fibre to the world market, India continues to be the major
supplier of coir yam and coir products with a shan' of 70 per cent and 75
per cent respectively in the total global trade in those items.
The total turnOVl'r of coir and coir products is approximately Rs 1,350
crore. The total production of coir and coir products during 2003-04 was
7,59,900 MTs (P). Similarly, the consumption of coir and coir products for the
same period was 3,84,482 MTs.
Further, to provide employment opportunities to the educated unemployed
youth in urban as well as rural areas, the Government is implementing Prime
Minister's Rozgar Yojana (PMRY~cheme, educated unemployed
youth between the age group o,,~upper age limit relaxed upto
45 years for Women, SC/ST, Ex-serVIcemen and physically handicapped) who
have passed eighth standard examination and whose family income is less
than Rs 40,000 per annum are eligible to get loans for all economically viable
activities. Projects upto Rs one lakh for business sector and Rs two lakh for
other activities are covered under this scheme Eligible persons can join
together in a partnership to get assistance for projects upto Rs 10 lakh subsidy
being limited to 15 per cent of project cost subject to a ceiling of Rs 7,500
per entrepreneur. The margin money contribution from the beneficiary varies
from five per cent to 16.25 per cent of the project cost so as to make subsidy
and margin money equal to 20 per cent of project cost. Loans for projects
under industry sector are given without collateral security and for projects
under services and business sector loans upto Rs one lakh are given without
collateral security.
Since the inception of the PMRY Scheme, the disbursement of loan has
been made in 19.37 lakh cases generating about 29.05 lakh employment till
31 March 2004. For the year 2004-05, a target of 2.50 lakh cases has been fixed
generating 3.75 job opportunities under the PMRY Scheme.

19

Justice
and Law
;5).5
)":".
r:J.__)

iid~~

TJ IE Constitution of the Republic of India guarantees, besides other rights,

protection of life and personal liberty and provides adequate safeguards
against (he arbitrary deprivation thereof by the State.
Adoption of a Constitution by India in 1950 did not disturb continuity
of existing laws and unified structure of courts. Unity and uniformity of the
judicial structure were preserved by placing such areas of law as criminal law
and procedure, dvil procedure, will, succession, contract including special
form of contract, but not including contract relating to agricultural land,
regist:'ation of deeds and documents, evidence, etc., in the Concurrent List.

SOURCES OF LAW
The main sources of law in India are the Constitution, statutes (legislation),
customary law and case law. Statutes are enacted by Parliament, State
legislatures and Union Territory legislatures. Besides, there is a vast body of
laws known as subordinate legislation in tht> form of rules, regulations as well
as bye-laws made by Central/State governments and local authorities like
municipal corporations, municipalities, gram panchayats and other local
bodies. This subordinate legislation is made under the authority conferred or
delegated either by Parliament or State or Union Territory legislatures
concerned. Judicial decisions of superior courts like Supreme Court and High
Courts are important sources of law. Decisions of Supreme Court are binding
on all courts within the territory of India. Local custom') and conventions
which are not against statute, morality, etc., are also recognised and taken
into account by courts while administering justice in certain spheres.

ENACTMENT OF LAWS
Parliament is competent to make laws on matters enumerated in the Union
List. State legislatures are competent to make laws on matters enumerated
in the State List. Parliament alone has power to make laws on matters not
included in the State or Concurrent List. On matters enumerated in the
Concurrent List, laws can be made by both Parli~ment and legislatures. But
in the event of repugnancy, law made by Parliament shall prevail and law
made by State legislature, to the extent of repugnancy, be void unless the latter
law haVing been reserved for consideration of President, has received his
assent, and in that event it shall prevail in that state.

JUDICIARY
At the apex of the entire judicial system exists Supreme Court of India with
~ High Court for each state or group of states, and under High Courts, there
IS a hierarchy of subordinate courts. Panchayat courts also function in some

484

India 2005

states under various names like Nyaya Panchayat, Panchayat Adalat, Gram
Kacllel1ri, etc., to decide civil and criminal disputes of petty and local nature.
Different state laws provide for jurisdiction of these courts.
Each state is divided into judicial districts presided over by a district
and sessions judge, who is the principal civil court of original jurisdiction and
can try all offences including those punishable with death. He is the highest
judicial authority in a district. Below him, there are courts of civil jurisdiction,
known in different states as munsifs, sub-judges, civil judges and the like.
Similarly, criminal judiciary comprises chief judicial magistrate and judicial
magistrates of first and second class.
SUPREME COURT
The Supreme Court of India consists ~!~)Judges (including the~Mtice
of India). The Judges hold office until they attain the agl' of ~ars. The
Supreme Court of India has original jurisdiction in any dispute arising:
(a) between the Government of India and one or more states; or (b) between
the Government of India and any state or states on the one side and one or
more states on the other; or (c) between two Or more states.
An appeal shall H{' to the Supreme Court from any judgement, decre{'
or final order of a High Court in the territory of India, whether in a civil,
criminal or other proceeding.
As on 1 June 2004 the Members of the Supreme Court of India arc:
Shri Justice Ramesh Chandra Lahoti, Chief Justice of India, Judges:
S/Shri N. Santosh Hegde, Doraiswamy Raju, Yogesh Kumar Sabharwal,
Smt. Ruma Pal, Sam Nariman Variava, Shivaraj Virupanna Patil, K.G.
Balakrishnan, Brijesh Kumar, Bishwanath Agarwal, P. Venkataramma Reddi,
Ashok Bhan, Arijit Pasayat, Bisheshwar Prasad Singh, D.M. Charmadhikari,
Hotoi Khetoho Serna, Satya Brata Sinha, Arun Kumar, B.N. Srikrishna, A.R.
Lakshmanan, G.P. Mathur and S.H. Kapadia.
HIGH COURTS
Hig~ourt stands at the head of the State's judicial administration. There
an{2~~~ts in the country, ~ having jurisdiction over more than

one State. Among the Union Territories, Delhi alone has a High Court of its
--:-own. Other six Union Territories come under jurisdiction of ctifferent state
High Courts. Each High Court comprises a Chief Justice and such other Judges
as the President may, from time to time, appoint. The Chief Justice of a High
Court is appointed by the President in consultation with the Chief Justice of
India and the Governor of the state. The procedure for appointing of the High
Courts judges is the same except that the recommendation for the appointment
of Judges in the High Court is initiat~the Chief Justice of the High Court
ars of age. To be eligible for
concerned. They hold office up t 62
appointment as a judge, one must be a
n of India and should have held
a judicial office in India for 10 years or must have practiced as an advocate
of a High Court or two or more such courts in succession for a similar period.

485

Justice and Law

Each High Court has power to issue any person or authority and
government within its jurisdiction, direction, orders or ~i.ts, including writs
which are in the nature of habeas rurpus, mandamus, prohibition, quo
warranto and fl!!tiJ2rm:.ir for enforCement of Fundamental Rights and for any
other purpose. This power may also be exercised by any High Court
exercising jurisdiction in relation to territories within which the cause of
action, wholly or in part, arises for exercise of such power, even if the seat
of such Government or authority or residence of such person is not within
those territories. The total approved strength of judges and additional judges
in different High Courts is 711 against which 494 were in position as on
1 June 2004. Table 19.1 gives the seat and territorial jurisdiction of the High
Courts.
TABLE 19.1 : JURISDICTION AND SEAT OF HIGH COURTS
Year
Allahabad

Scat

Uttar Pradesh

Allahabad (Bench at
Lucknow)

Alldhra Pradesh

1954

Andhra Pradesh

Hydt'Tabad

Bombay

1862

Maharashtra, Goa,
Dadra and Nagar
Haveli and Daman
and Diu

Mumbai (Benches at
Nagpur. Panaji
and Aurangabad)

1862

West Bengal

Kolkata (Circuit Bench

at Port Blair)

Chhattisgarh

2000

Bilaspur

Bilaspur

Delhi

1966

Delhi

Delhi

Guwilhati'

1948

Assam, Manipur,
Meghalaya, Nagaland,
Tripura, Mizoram and
Arunachal Praaesh

Guwahati (Benches at
Kohima, Aizawl,
lmphal, Shillong, Agartaia
and ltanagar)

Cujarat

1960

Guiarat

Ahmedabad

Himachal Pradesh

1971

Himachal Pradesh

Shimla

Jammu and
Kashmir

1928

Jammu and Kashmir

Srinagar and
Jammu

Iharkhand

2000

Jharkhand

Ranchi

1884

Kamataka

Bangalore

Kcrala

1958

Kerala and Lakshadweep

Emakulam

Madhya Pradesh

1956

Madhya Pradesh

Jabalpur

Calcutta

'I

') 1866

Territorial Jurisdiction

Kamataka 2

9..

Lf

(Benches at Gwalior and Indore)

c.2.

1862

Tamil Nadu and Pondicherry

Chennai

Orissa

1948

Orissa

Cuttack

i'atna

1916

Bihar

Patna

Punjab, Haryana and

Chandigarh

Madras

Punjab and Haryana' 1966

Chandigarh

486

0:)

India 2005

Rajasthan

1949

Rajasthan

Jodhpur (Bench at Jaipur)

5ikkim

1975

Sikkim

Gangtok

Uttaranchal

2000

Uttaranchal

Nainital

1 Originally known as Assam High Court, renamcd as Guwahati High Court in 1971.
2 Originally known as Mysore High Court, renamed as Kamataka High Court in 1973.
3 Originally known as Punjab High Court, renamed as Punjab and Haryana High Court in 1966.

Each High Court has powers of superintendence over all courts within
its jurisdiction. It can call for returns from such courts, make and issue general
rules and prescribed forms to regulate their practices and proceedings and
determine the manner and form in which book entrits and accounts shall be
kept.
SUBORDINATE COURTS
The structure and functions of subordinate courts are more or less uniform
throughout the country. Designations of courts connote their functions. Thesl'
courts deal with all disputes of civil or criminal nature as per the powers
conferred on them. These courts have been derived principally from two
important codes prescribing procedures, i.e., the Code of Civil Procedure, 1908
and the Code of Criminal Procedure. 1973 and further strengthened by local
statutes. As per direction of Supreme Court in WP (Civil) 1022/1989 in the
All India Judges Association case, a uniform designation has been brought
about in the subordinate judiciary's judicial officers all over the country, viz.,
District or Additional District Judge, Civil Judge (Senior Division) and Civil
Judge Ounior Division) on the Civil Side and on criminal side, Sessions Judge,
Additional Sessions Judge, Chief Judicial Magistrate and Judicial Magistrate,
etc., as laid down in the Cr. P.c. Appropriate adjustment, if any, has been
made in existing posts by indicating their equivalent with any of these
categories by aU State Governments/UT Administrations.
Under Article 235 of the Constitution of India, the administrative control
over the members of subordinate judicial service vests with the concerned
High Court. Further in exercise of powers conferred under proviso to Article
309 read with Article 233 and 234 of the Constitution, the State Government
shall frame rules and regulations in consultation with the High Court
exerCising jurisdiction in relation to such State. The members of the State
Judicial Services are governed by these rules and regulations.

INTERNATIONAL COOPERATION IN THE FIELD OF JUSTICE

The Government of India had signed in October 2001 a Memorandum of
Understanding (MoW with the Ministry of Justice of the Russian Federation,
for cooperation in the field of justice. This MoV includes cooperation in the
field of drafting of legislation and assessment of such legislation, cooperation
between the courts/justice institutions and educational institutions imparting
law courses in both the countries, etc.

Justice and Law

487

A "Protocor concerning cooperation in the field of justice, between the

Ministry of Justice of the Republic of Turkey and the Ministry of Law, Justice
and Company Affairs, Government of India was signed on 10 April 2002 by
the Turkish Minister of Justice and the Union Law Minister of Republic of
India.
A Memorandum of Undertaking (MoW on cooperation in the field of
il1s~e between .Ministlo/-ei...f:.ow.r-..amL..!ustice of Government of India and the
::;lip!~me People's Prosecution Service.:of the People's Republic of China has
het'll signed on 23 June 2003 in Beijing during the Indian Prime Minister's

visit to China.
FAST TRACK COURTS
Fast Track Courts (FTCs) are being set up on the recommendation of the
Eleventh Finance Commission, funded by Ministry of Finance since 2001-2002.
So far Rs 359.36 crore have been released to the States under this scheme.
This year (2003-04), the Department has launched an initiative to set up 20
Fast Track Courts in Delhi and one in the Union Territory of Chandigarh.

The FTCs will take up sessions cases pending for two years or more,
and the cases of under-trials in jails. At present there are about two lakh undertrials in jails on whose maintenance the State Governments are spending about
Rs 400 crore per annum. About 18 per cent of the under-trials have been in
jail for more than one year. Such cases are likely to be disposed of by the
FTCs soon.
As on 26 August 2004, 1657 Fast Track Courts have been established
of which 1,403 are functional. These courts have disposed of 3,89,317
numbl'r of cases out of 8,00,808 cases transferred to them.

(lut

COMPUTERISATION OF CITY CIVIL COURTS

The Project involves installation of computers in court rooms (in the chamber
of Judges) and their networking. With' this arrangement the general public
will be able to file their petitions addressed to the courts through a central
filing facility. Notices and case lists would be generated by the computer and
this will facilitate the courts for disposal of cases quickly. The project is in
progress in Delhi, Chennai, Kolkata and Mumbai.
PRIORITY FOR DISPOSAL OF CASES
In order to accord due priority to elderly persons in the 60 plus age group
and offences relating to women, instructions have been issued to state
governments to dispose of such cases through the existing FTCs. The state
governments have been asked to earmark portion of their FTCs to deal
eXclUSively with cases involving senior dtizens and offences relating to
women.
fAMILY COURTS

The Family Courts Act, 1984 aims at promoting conciliation in and securing

488

India 2005

speedy settlements of disputes relating to marriage and family affairs and

related matters. It envisages that courts shall be set up in a city or town with
a population of more than 10 lakh and at such other places as the state
government may deem necessary. However, based on the recommendation
made by the Parliamentary Committee on Empowerment of Women, all the
State Governments/UT Administrations have been asked to~t one Family
ami1 Courts
Court in each District of the country. At present there are
in the country. Some of the State Governments like Kerala, UUar Pradesh,
Uttaranchal, Bihar, etc., have proposed to set-up Family Courts in eam district
of the States, Besides, necessary notifications exending the jurisdiction of the
Family Courts Act have also been issued by the Government of India in
respect of Haryana, Madhya Pradesh and the Union Territories of Andaman
and Nicobar Islands and Daman and Diu.
NATIONAL JUDICIAL ACADEMY

The National Judicial Academy has been set up by the Government of India
to provide in-service training to Judicial Officers. The Academy was registered
on 17 August 1993 under the Societies Registration Act, 1860. The Academy
is located in Bhopal with its registered office in New Delhi.
It will provide training to judicial officers of States/UTs as well as
ministerial officers working in the Supreme Court of India and the High
Courts. The Academy will also function as a Centre of excellence in the
country.
The Academy has already started training programmes in few areas.

LEGAL AID
Article 39A of the Constitution provides for free legal aid to the poor and
the weaker sections of the society. The Legal Services Authorities Act, 1987,
as amended in 1994, aims at establishing a nation-wide network for providing
free and competent legal services to the weaker sections. National Legal
Services AuthOrity (NALSA) has been set up for implementing and monitoring
legal aid programmes in the country. The Supreme Court Legal Services
Committee has been constituted under the Act. In every High Court also, the
High Court Legal Services Committees are being established to provide free
legal aid to the eligible persons in legal matters coming before the High
Courts. The Act also provides for Constitution of the State Legal Services
Authorities, District Legal Services Authorities and Taluk Legal Services
Committees.
The Central AuthOrity, constituted under Section 3 of the said Act, is
taking steps to initiate vibrant legal aid programmes such as promotion of
legaJ literacy, setting up of legal aid dinies in universities and law colleges,
training of para-legal personnel and holding of legal aid camps and Lok
Adalats. The NALSA is also formulating policies and schemes to achieve the
aims and objects of the Act.

Justice and Law

489

Under the Legal Services Authorities Act, every person whose annual
income does not exceed Rs 9,000 is eligible for free legal aid in cases coming
before High Courts and Courts subordinate thereto. In cases before the
Supreme Court, the limit has been fixed at Rs 12,000. This limit can be
enhanced by the appropriate government. Limitation as to the income does
not apply in the case of persons belonging to the scheduled castes, scheduled
tribe.'>, women, children, handicapped, etc. At the fourth Annual Meet of the
State Legal Services Authorities held under the aegis of the NALSA on 29
February 2004 and 1 March 2004 at Kolkata, it was resolved to raise the income
ceiling in terms of section 12(h) of the said Act, from Rs 25,000 to Rs 50,000
pt.'r annum in respect of cases before High Courts and Courts subordinate
thereto. The annual income limit fixed by the Central Government for cases
before the Supreme Court would remain Rs 50,000. Gujarat, U.T. of Chandigarh
imd Delhi have since raised the income ceiling to Rc; 50,000. Efforts are being
made by the State Legal Services Authorities for revision of the income ceiling
limit in their respective States.
Thl~ Non-Governmental Organisations (NGOs) are identified and
accredited by the State Legal Services Authorities. Only the accredited NGOs
arl' provided with grants by NALSA for the purpose of carrying on legal
literacy /legal awareness programmes.

The Government has sanctioned Rs five crore as grant-in-aid for NALSA

for 2004-05 for implementation of the provisions of the Act.
NALSA is also monitoring and evaluating the implementation of the
It'g,ll <lid schemes and programmes and is taking appropriate measures for

spmlJing legal literacy and legal awareness amongst the weaker sections of
the society.
ACHIEVEMENTS
Up to 31 December 2003, about 1.94 lakh I.ok Adalats wert' held in different

P,lIts of tlw country wherein about 1.59 crore cases were settled. In about 7.90

Idkh Motor Vehicles Accident Claims cases, compensation amounting to over

Rs 4,473.45 crore has been awarded. As on 31 December 2003, about 61.21
I.lkh persons were benefited through legal aid and advice programmes
throughout the country in which about 9,83,000 persons belonging to
Sd1l'dulct.l Caste and 3,37,500 pt'rsons of Schcdlll~d Tribe commentics were
bl'lll'fici.1ril'S. More than 6,70,600 wen' women and about 70,140 persons in
clistody Wl'TC ellso bl'nefited.

Under the Legnl Services Authorities Act, 19H7, the awards made by the
f 0" ildalats Me dl....'Il11'd to lw tlw derrt.'l.'s of a Civil Cuurt (llld l!Vl'ly ,lward

by I.ok /Idaillt is tilldl ,mt! binding 011 ,111 P<lTtil'S and no appl'ill lit~
COllrt 'lg,lill~t its ,1w.lI"d. Pursuant to the dl'cisinn l,lkt.'11 ill the
'\111111,11 Meets of tilt' St,lh' I.t!!~al Sl'rvin.'s Authorities. Pl'rt\l<llwnt ,1Ild
t IIl1lilllhlllS I.ok Ad"ltrt;i ,In,' hl'il1g Sl't up ill t'Vl'ry Jishkt throughout the
((fff{l("y. HfOl'ts arl' continuing fur (,~(tlblj'lhllll'l1t o( sCP,U',\tl' l.ok Ittifllais for
l\l,ld!'

hl'tlll'!' tIllY

490

India 2005

different departments of tht' State Governments and Public Sector Undertakings

and, in particular, public utilities for settling cases pertaining to such
Governmtnt / public utilities in their office premises itself.
With a view to providl' mechanism for prt'-litigation, conciliation and
settlement of disputes, the Parliament has amended the Legal Services
Authorities Act, 19H7. The amended Act stipulates the establishment of
Permanent Lok Adalats for exercising jurisdiction in respect of disputes
relating to public utility services, such as, transport service, postal,
communication, supply of power, service in hospital / dispt'nsary, insurance
service, etc. A party to a dispute with such public utility service has been
given the option to make an application to the Permanent Lok Adalat to be
establislwd under the amending Act which has been Vl'stl'd with the powers
of jurisdiction to decide the matter.
Subsequent to the coming into force of the said Amendment Act, the
States of Haryana, Jharkhand and Rajasthan and also U.T. of Chandigarh have
established Permanent Lok Adalts. Steps are being taken to establish such Lok
Adalclts ill the remaining States/U.T.
ATTORNEY-GENERAL
The Attorney-General of India is apJ>.9il)teg by the_!2.~lt and holds officl'
during the pleasure of the President. He must be a person qualified to be
appointed as a Judge of the Supreme Court. It IS the duty of the AttorneyGem'ral 10- giw advice to the Government of India upon such legal matters,
and to perform such other dutil'S of legal charackr, as may be reft'rred or
assigned to him by the President, and to discharge the functions conferred
on him by or under thl' Constitution or any nthl'r law. In the performance
of his duties, 11(' has the right of audience in all courts in India as well ib
the right to takp part in the proceedings of parliaml'nt, without the right to
vote. In the discharge of his functions, tIll' Attorney-Ceneral is assisted by
Solicitor-Ceneral and Additional Solicitors-Gt'neral.
LEGAL PROFESSION
In India, the law relating to legal _p~ is governed by the AdvOCflte"
l'fL196J and the rules fram-l'Jthereunder by the !3_,tL.cQll.ru:iLoIJiiaLfI. If
is a self-contained code of law relating to (egal practitioners and provides for
thl' constitution of Statl' Bar Councils find Bar Council of India. A p('rsnn
enrolled as ill1 advocate under the Advocatl'" Act, 1961, is entitled to practin'
law throughout the country. An advocatl' OJ) the roll of a State Bar Council
may apply for transft'r to tilL' roll (If any other Statl' B.u Council in thl'
prescribed manner. No Iwrson can lw enrolled as an advocate on the r(lll~
of more than one Stalt' Bar Council. Then' are two classes of advocatt's,
namely, senior advocalt's and other advocates. An advocate with his consent,
may be designated as a senior ad vocatl', if tlw Supreme Court or a High Court
is of the opinion that by virtlH' of his ability, ~tanding .It the Bilr or sp('cial
knowll'dge or experience in law, Ill' deserves such distinction. A senior

Justice and Law

491

advocate cannot appear without an advocate-on-record in the Supreme Court

or without some other advocate on the State Roll in any other court or tribunal.
Standards of education have bt..>en prescribed for enrolment as an advocate.
There are also rules regulating standards of professional conduct and eliquette
and other matters. State Bar Councils have disciplinary jurisdiction over
advocates whose names appear on their rolls. This is subject to right of appeal
to the Bar Council of India and a further right of appeal to the Supreme Court
pI India.
ADVOCATES' WELFARE FUND
Social security in the form of financial assistance to junior lawyers and welfare
schemes for indigent or disabled advocates, has always been a matter of
concern for the legal fraternity. Certain states enacted their own legislations
on the subject. The Parliament enacted the Advocates' Welfare Fund Act, 2001,
dpplicablc to the Union Territories and tlll' States which do not have their
own enactments on the subject, for constitution of "Advocates' Welfare Fund"
bv thl' appropriate government. This Act makes it compulsory for every
,ldvocate to affix stamps of the requisit( value on every vakalatllama filed
in any court, tribunal or other authority. Sums collected by way of sale of
"Advocates' Welfare Fund Stamps" constitute an important source of the
Advocates' Welfare Fund.
All practising advocates shall become members of the Advocates'
Welfare Fund on payment of an application fee and annual subscription. The
Fund shall vest in, and bl' held and applied by, the Trustee Committee
established by thl' appropriate government. The Fund Shall, inter alia, be used
for making ex-gratia grant to a member of the fund in case of a serious health
problem, payment of a fixed amount on cessation of practice and in case of
death of a member, to his nominee or legal heir, medical and educational
facilities for the members and their dependents, purchase of books and for
~\
common facilities for advocates.
LAW COMMISSION OF INDIA
TI}~

J7th Law Commission was reconstituted on 1 Se tember 2003 for

pt'rind of three years wi Hon'ble Justice ~. Jagannadha Rao as Chairman,
Dr. N.M. Ghatate, as Vice~Chairman and Dr. R.N. Chaturvedi as MemberSecretary. The terms of reference of the Law Commission are : (a) Review/
I~t'p(,111 of obsolete laws: (i) to identify laws which are no longer needed or
rl'levant and can be immediately repealed; (ii) to identify laws which are in
harmony with the existing climate of economic Iiberalisation which need no '
change; (iii) to identify laws which require changes or amendments and to
make suggestions for their amendment; (iv) to consider in a wider perspective
thl' suggestions for revision/ amendment given by Expert Groups in various
Ministries/Departments with a view to coordinating and hormonizing them;
(v) to consider references made to it by Ministrit.'S/Departments in respect
of legislation having bearing on the working of more than one Ministry /
Department; and (vi) to suggest suitable measures for quick redressal of

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citizens grievances in the field of law; (b) Law and Poverty: (i) to examine
the Law which affect the poor and carry out post-audit for socio-economic
legislation; and (ii) to take all such measures as may be necessary to harness
law and the legal process in thp service of the poor; (c) to keep under revil'1D
the system of judicial administration to ensure that it is responsive to the
rcasol1aNc demands of the times and ill particular to secure: (i) elimination
of delays, speedy clearance of arrears and reduction in costs so as to secure
quick and economical disposal of cases without affecting the cardinal principal
that decisions should be just and fair; (ii) simplification of procedure to reduce
and eliminate technicalities and devices for delay so that it operates not as
end in itself but as mt'ans of achieving justice; and (iii) improvements of
standards of all concerned with the administration of justice: (d) to examine
the existing laws in thl' light of Directive Principles of State Policy and to
suggest ways of improvement and reform and also to suggest such legislation
as might be necessary to implcment and Directive Principles and to attain
the objectiw set out in the Preamble to the Constitution; (e) to revise the
Central Acts of General Importance so as to simplify them and to remove
anomalies, ambiguities and inequities; (f) to recommend to the Government
measure of bringing the statute book up-to date by repealing obsolete laws
ilnd enactments or parts thereof which have outlived their utility; (g) to
consider ilnd to convey to the Government its vit'ws on any other subject
relating to law and judicial administration that may be referred to it by thl'
Gowrnment through Ministry of Law and Justin>.
Various subjects were taken up by the Commission suo motu in view
of the importance of tht' issues whik some subjects were taken up on a
reference from the Government/Suprt'me Court of India. The Commission has
so far submitted 1R9 reports.

ENFORCEMENT AGENCIES
POLlCE
The Police force ill till' l"llulltry is entrusted with the responsibility of
maintl'nanCt' of public mdl'l" .1I1d pn'\'l'ntinl1 and detection of crimE'S. Public

ordt'r and police bl'ing st.lll' subjects ulltkr the Constitution, polkl' is
maintailwd and contr(llll'd by states.
The Police torc!' in ... 1.111' i<., Imld('d by the Dirt'dor General (If l\lli(c/
Inspector CCllI'ral of Polin'. ~t.11t' is divid('d into convcnient Il'I'rilol i,d
divisions called ranges .1I1d l'.lCh poli('l' range is 1Il1Ul'r the administr;llll'l'
control of a Deputy In"'pl'clo(' Ceneral of Polin'. A I1Umbl'r of di ... lrh''
constitute the range. District polil I' i.. fllrtht'r sub-divid('d into polin' divi<.,ioll~
circles and police-stations. I.ksidl's the civil polin', statl's also maintain tlll'ir
own armed police ilnd have SI'Pill'illt' inh'lligl'IKe branchc's, crinw bnlll( Ill''''
etc. Police sct-up in big Citil'S likl' Ikllti. Kolk,ll.l, M\lInbai, Chennai, Bang,llpr(',
Hyderabad, Ahmedabad, Ntlgpur, l'IIl1l', dc, is din'ctfy undl'r a Commi';siollt'l
of Police who enjoys magisterial powl'rs. All "l'niof police posts in vari(llls
stall.'s are manned by tlK' Indian Police S('rvin! ( IPS) cadres, Tl.'(.ruitlnl'nt tIl
which is made on all-India basis.

Justice and Law

493

The Central Government maintains Central Police forces, Intelligence

Bureau (IB), Central Bureau of Investigation (CBI), Institutions for training of
police officers and forensic science institutions to assist the states in gathering
intelligence, in maintaining law and order, in investigating special crime cases
and in providing training to the senior police officers of the state governments.
CENTRAL BUREAU OF INVESTIGATION

C (!, 1 c::>(_

5: p (;.

The Central Bureau of Investigation (CBI) was created in April 1963. Prior
to that the organisation was known as Special Police Establishment created
and functioning under the Delhi Special Police Establishment Act, 1946. In
1%3, after the creation of the Central Bureau of Investigation, the functions
(If this organisation were enlarged covering besides investigation the role of
National Central Bureau for India under the International Criminal Police
Organisation (INTERPOL), as also the Cl'ntral Forensic Science Laboratory.
The CBI, through its Special Police Establishment Division, is the
principal investigating agency of the central government and is concerned
with the investigation cases of misconduct by public servants in the employment
of central government and its corporate undertakings; cases in which the
interest of the central government or any corporation or body set up and
financed by the central government are involved, cases relating to breaches
of central laws in the enforcement of which the central government is
interested; big cases of fraud, cheating and embezzlement and other cases
when committed by organised gangs or professional criminals having interstate or international ramifications. CBI indexes criminals involved in
international crimes and verifies fingerprints from various foreign national
crime bureaux. INTERPOL notices are also drculated to various enforcement
agencies in the country.
INDO-TIBETAN BORDER POLICE

The Indo-Tibetan Border Police (ITUl') was raised on 24 October 1%2 after
the Chinese aggression as an integrated intelligence / signal/pioneer /
t'ngineering/medical and guerrilla unit and was initially placed under the
IntelJigence Bureau for operational control. In 1975 the primary task of the
ITBP was re-defined as security of northern borders, to check illegal
immigration and trans-border crimes. From 1995, the ITSP began to be
inducted in a big way in counter insurgency operations in the Kashmir valley.
Commandos of ITBP are providing security cover to High Commission of
india, Colombo and a few V.l.Ps/sensitive installation protection duties. The .
task also involves providing pre-induction training to the Indian contingent
selected for the UN Peace Keeping Force. It is also recognised for
mountaineering, skiing and river-rafting activities. Officers and men of ITSP
have scaled the Mt. Everest five times making a tally of more than hundred
glorious climbs in the Himalayas, Iran, Alps and the US to its credit.
ITSP is given the responsibility of providing security / communication I
medical cover to the pilgrims during Kailash-Mansarover YatTa besides beiA8

India 2005

494

the Nodal Agency Disaster Management in the Central and Western Himalayan
Tt'gion. The ITBP has ~" including four specialist battalions, three
training institutions, seven Sl.>ctor headquarters and two IsG Zone offices.
BORDER SECURITY FORCE

Border Security Force (BSF) raised in 1965, is entrusted with the task of
maintaining permanent vigilance on India's international borders. The present
strength of BSF is 157 battalions, 20 Artillery battalions and it guards a total
of 6,385.36 km of international borders, spread over mountains, inhospitable
deserts, reverence, snow bound and marshy areas. BSF has been assigned the
roll' of promoting a sense of security amongst the peoplt living in the border
areas and preventing trans-border crimes, such as smuggling, infiltration/
exfiltration and other illegal activities.

__.------....,_____

" ~SAM RIEl ES-~

The Assam Rifles was raised as Catchar L('vy in 1835. The force has 41
battali(llls. It was primarily raised for maintenan<-'C of internal security in the
trfral areas. The Assam Rifles contribution towards assimilation of the people
;,f north-east into the national mainstream is truly monumental. The force
is fondly called "The Sentinels._Q{.kN.orth-EiiI:;;f' and~:f_riends of the Hill
People."

----

c---'_

----.. _._-_. _.-..

NATIONAL SECURITY GUARDS

The National Security Guards (NSG) has been set up in 1984 for handling
counter terrorists and counter hijacking operations including VIP security. It
is a highly trained and motivated Force for effectively dealing with terrorist
activities in the country. It also trains state police commandos to upgrade their
capability to meetJ~ terrorist threats and carry out bomb detection/ defusion
opprations. The ~\ maintains the onl National Bomb Data Centre of the
country. Tb~lt' Force has so far carried out more t an undred operations
In vari(;us parts of the country. A counter terrorist operation was carried out
by the commandos of NSG at Akshar Dham Temple, Ahmedabad in
September 2002 and they were successful eliminating the terrorists who took
refuge in the temple complex.
CENTRAL RESERVE POLICE FORCE

The Central Reserve Police Force (CRPF) is an Armed Force of the Union of
India for internal securi~~=. This Force was raised in 1939 at
Nl:'Cmuch (MP) as tht{C;ow
ati~!@'s Poljre aOCDwas renamed as the
Central Reserve Police Force in 1949.

--

At present, CRPF has a strength of 2,26,699 comprising 176 Battalions.

The Force remained committed to internal security and counter insurgencycUlll-dnti-terrorist operations in various parts of the country. This is the only
Force with ladies contingents organised in two Mahila Battalions.'

Ju:> ice and Law

495

RAPID ACfION FORCE

Rapid Action Force (RAF) is an integral part of the Central Reserve Police
Force. With 10 battalions it has bt?cn conceived in 1992 as a specially trained
and equipped anti-riot police mainly to tackle communal riots and riot-like
situations. Unlike the conventional force of law and order, the RAF in addition
to its law enforcing role has got post-riot role in rescue and relief.
CENTRAL INDUSTRIAL SECURITY FORCE
The Central Industrial Security Force (ClSF) was established in 1%9 to provide
security to industrial undertakings of tlw government. The Force numbering
over 94,56] has the responsibility to protect and safeguard the industrial
undertakings owned by the central government together with such installations
as are specified as vital by the government. CISF is presently stationed in 267
Public Sector Undertakings. Tht' security of 47 Airports and the government
buildings in Delhi has also been entrusted to the CISF. The CISF has launched
P' (\,! pA ")
st'curity consultancy services in 2001.

f:;;",

SARDAR VALLABHBHAI PATEL NATIONAL POLlCE ACADEMY

The Sardar Vallabhbhai Patel National Police Academy is the premier polin'
training institution in the country which imparts basic as well as in-servin'
training to Indian Police Service (IPS) officcrs. EstabJishpd in 1948 at Mount
~ A~u, Rajasthan, the Academy was shifted to H1de~,~~~~._i..!:!J_91'2,:",:,fhe Acadt'my
also promotes study and research on police-related topics .
SASHASTRA SEEMA

BAL(..c~ts)

Special Service Bureau (SSB) was set up in thl' t'arly ] 963 under Cabinet
Secretariat in the wake of India China conflict of 1%2 to build peopl(~s' morale
and inculcate spirit of resistance in the border population against threats of
subversion, infiltration and sabotage from across the border. It is now
under the administrative control of Ministry of 11001e Affairs with eHect from
15 January 2001 and assigned the bordt'r guarding (lsponsibilities along the
Indo-Nepal and Indo-Bhutan Bordtrs. Name of SSB has bt.'en changed as
"Sashastra Seema Bal" vide MHA ordt'r datt'd 1.5 December, 2003. For its
dedicated and distingUished service, SSB was pres('f1ted Presid<'nt's Colours
in March 2004.
CIVIL DEFENCE
Civil Defence aims at saving life, mlOlmlsmg damage to property and
maintaining continuity of industrial production in tht' event of any hostik'
attack. Central financial assistan(."l' to tIl(! states for Civil Defence measures
is confined to categorised towns only. Civil Defence is primarily organised
on voluntary basis except for a small nucleus of paid staff and t>stablishment
which is augmented during emergencies. At the moment, Civil Defence
activities are restricted to 22.5 categorised towns spread over all the States I
Union Territories. The present target of Civil Defence volunteers is 12.19 lakh
of whom 5.8 lakh have already been raised and 4.7 lakh trained.

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HOME GUARDS

Home Guards is a voluntary force, first raised in India in December 1946 to

assist the police in controUing civil disturbances and communal riots.
Subsequently, the concept of the voluntary citizen force was adopted by
several states. In the wake of the Chinese aggression in 1962, the Centre
advised the States and Union Territories to merge their existing voluntary
organisation into one uniform voluntary force known as Home Guards. The
role of Home Guards is to serve as an auxiliary to the police in any emergency
such as an air-raid, fire, cyclone, earthquake, epidemic, etc., help in maintenance
of essential services, promote communal harmony and assist the administration
in protecting the weaker section, participate in socio-economic and welfan>
activities and perform Civil Defence duties. Home Guards are of two typesrural and urban. In border states, Border Wing Home Guards Battalions have
also been raised, which serve as an auxiliary to the security forces. The total
strength of Home Guards in the country is 5,73,793 against which the raised
strength is 4,89,821 Home Guards. The organisation is spread over all States
and Union Territories except Kerala.
Expenditure on Home Guards is generally shared between the Centre
and the State Governments.
FIRE SERVICE

Fire is a State subject and fire servict.s are administered by the States/UTs.
The Ministry of Home Affairs renders technical advice to States/UTs and
Central Ministries on fire protection, fire prevention and fire legislation. As
per the statistics available, 2,029 fire stations manned by 66,152 professionals
are operating in the country with a fleet of 6,157 appliances/vehicles. For the
modernisation of fire service in the states, the Ministry of Home Affairs
arranges GIC loans through the Ministry of Finance. A sum of Rs 404.97 croft'
for GIC loan has been arranged for development of state fire services since
1980-81. In addition, Tenth Finance Commission allocated Rs 80 crore as grantin-aid for the modernisation of Fire Service in various states during the period
199.5-2000. Eleventh Finance Coimmission further allocated Rs 201 croce as
gr<mt-in-.lid for 2000-05. Training in Fire Service is conducted on two-tier
concept. The training of the firemen is conducted in State Fire Training
Ct'ntres-at present 14 in numbers. But the training of the Officers cadre is
conducted at National Fire Service College, Nagpur. National Fire Service
College, Nagpur since its inception in 1956, trained 12,666 Fire Officers
including 71 foreign trainees from 12 countries up to now.
LOK NAYAK JAYAPRAKASH NARAYAN NATIONAL INSTITUTE OF
CRIMNINOLOGY AND FORENSIC SCIENCE

The N,ltion,lI Institute of Criminology cmd Forensic Science, New Delhi, W,lS
set up in 1972. The Institute has now been renamed as Lok Nayak layaprilkc1sh
~arClyan Nation,ll InstHll!e oL1;:s.iml!!ylogy__ and...urensic ~C;e._.(LNJN

JUEice and Law

497

NICFS) in order to commemorate the occasion of birth Centenary Celebrations

of Lok Nayak Shri Jayaprakash Narayan and a Chair has also been established
in his name to carry out regular research for peaceful and humane ways of
solving crime. The Institute organises various in-service training programmes
for officers from Police, Judiciary and Correctional Administration and also
others engaged in criminal justice system and its allied fields conducting
Diploma and Certificate courses in professional subjects for forensic scientists,
undertaking research work and studies on various subjects of criminology and
forensic sci\::nces. The Institute recently got provisional affiliation from Guru
Gobind Singh Indraprashtha University, Delhi for running post-graduate
courses in MA/M.Sc. (Criminology) and M.S. (Forensic Sciences).

PERSONAL LAW
The people of India are of different religions and faiths. They are governed
by different sets of personal laws in respect of matters relating to family

affairs, i.e., marriage, divorce, succession, etc.

MARRIAGE
Law relating to marriage and/or divorce has been codified in different
enactments applicable to people of different religions. These are ;

1.

The Converts' Marriage Dissolution Act, 1866;

2.

The Indian Divorce Act, 1869;

3.

The Indian Christian Marriage Act, 1872;

4.

The Kazis Act, 1880;

5.

The Anand Marriage Act, 1909;

6.

The Indian Succession Act, 1925.

7.

The Child Marriage Restraint Act, 1929;

H.

The Parsi Marriage and Divorce Act, 1936;

9.

The Dissolution of Muslim Marriage Act, 1939;

Mart'ia~c

10.

The Special

Act, 1954;

II.

The Hindu M,lrriage Act, 1955;

12.

The Foreign Marriage Act, 1969; and

11.

The Muslim Women (protection of Rights on Divorce) Act, 1986.

The Special Marriage Act, 1954 extends to the whole of India except tht.>
of }i.lmOllI tlI\d Kashmir, but also applies to the citizens of India domiciled
ill J.HlllllU and Kashmir. Persons governed by this Act can specifically registt'r
1l1<Hri<lgc under the s,dd Act even though they are of different religious faiths.
Thl' ,\ct also provides th.lt the marri,lgc I.:elebrated under <lily other form Ci.lll
d~1) be t~gish.'red undl'r the Sped,11 Mnrridgt! Ad, if it satisfies the fC(.ll1iremtllts
,)1 th,' Act. The section 4(b)(iii) of till' Act W<l~ amended to omit tlu~ words
~)t,lte

498

India 2005

"or epilepsy". Sections 36 ~d..~e been amended to provide that an

application for alimon~ the maintenance and education of
minor children be disposed of within 60 days from the date of service of notice
on tht> respondent.
An attempt has been made to codify customary law which is prevalent
among Hindus by enacting the Hindu Marriage Act, 1955. The Hindu
Marriage Act, 1955, which extends to the whole of India, except the State of
Jammu and Kashmir, applies also to Hindus domiciled in territories to which
the Act extends and those who are outside the said territories. It applies to
Hindus (in any of its forms or developments) and also to Buddhists, Sikhs,
Jains and also those who are not Muslims, Christians, Parsis or Jews by
religion. However, the Act does not apply to members of any scheduled tribes
unless the Central Government by notification in the official Gazette otherwise
directs.
Provisions in regard to divorce are contained in section 13 of the Hindu
Marriage Act and section 27 of the Special Marriage Act. Common ground on
which divorce can be sought by a husband or a wife under these Acts fall
under these broad heads: adultery, desertion, cruelty, unsoundness of mind,
venereal disease, leprosy, mutual consent and being not heard of as alive for
seven years.
As regards thl' Christian community, provisions relating to marriage and
divorce an' contained in the Indian Christian Marriage Act, 1872 and in section
10 of the Indian Divorce Act, 1869 respectively. Under that section the husband
can seek divorce on grounds o{ adultery on the part of his wife and the wife
can seek divorct> on the b"Tound that the husband has become convert to
another religion and has gone through marriage with another woman or has
b('en guilty of (a) incestuous adultery; (b) bigamy with adultery; (c) marriagt~
with another woman with adultery; (d) rape, sodomy or bestiality; (e) adultery
coupled with stich cruelty as withmlt adultery would have entitled her to a
divorce, a mensa etoro (a syst(>m of divorce created by the Roman Catholic
Church equivalent to judicial separation on grounds of adultery, perverse
practices, cruelty, heresy and apostasy) and (f) adultery coupled with desertion
without reasonable excuse for two years or more.
In the Indian Divorce Act, 1869 comprehensive Amendments were made
through th(.> Indian Divorce (Amendment) Act, 2001 (No. 51 of 2001) to remove
discriminatory provisions against women in the matter of Divorce. Further,
sections 36 and 41 of the Act were amended by the Marriage Laws (Amendment) Act, 2001 to provide that an application for alimony pendelltc lite or tht>
maintenance and education of minor children be disposed of within 60 days
from the' date of service of notice on the respondent.
As regards Muslims, marriages are goWTOC
(! Mohammedan Law
prevalent in the country. As regards divorce, i. la/aq, Muslim wife has a
en ana traditional Jaw
much restricted right to dissolve her marriage. Um
tried to ameliorate her position by permitting her to s(~ek dissolution under the

Justice and Law

499

following forms: (a) Talaq-I-Tqfwid_This is a form of delegated divorce.

According to this, the husband delegates his right to divorce in a marriage
contract which may stipulate, inter alia, on his taking another wife, the first
wife has a right to divorce him; (b) Khula: this is a dissolution of agreement
between the parties to marriage on the wIfe's giving some consideration to the
husband for her release from marriage ties. Terms are a matter of bargain and
usually take the form of the wife giving up her !!l!1Jr or a portion of it, and
(c) Mubarat: this is divorce by mutual consent.
Further, by the Dissolution of Muslim Marriage Act, 1939, a Muslim wife
has been given the right to seek dissolution of her marriage on these grounds;
(i) whereabouts of the husband have not been known for a period of four
years; (ii) husband is not maintaining her for a period of two years;
(iii) imprisonment of husband for a period of seven years or more; (iv) failure
on the part of husband to perform his marital obligations, witL,out a reasonable cause, for a period of three years; (v) impotency of husband; (vi) two-year
long insanity; (vii) suffering from leprosy or virulent venereal .disease' (viii)
marriage took place before she attained the age of 15 years and not consummated; and (x) cruelty.
The Parsi Marriage and Divorce Act, 1936 governs the matrimonial
relations of Parsis. The word 'Parsi' is defined in the Act as a Parsi Zoroastrian. A Zoroastrian .is...il..pe,:,on who Erof~~ses ffie~oioa~ ~..IT.s.i.lm.-~
araaal significance. Every marriage as wefiS Clivorce under this Act is
required to be registered in accordance with the procedure prescribed in the
Act. However, failure to fulfil requirements un that behalf does not make
marriage invalid. The Act provides only for monogamy. By the Parsi Marriage
and Divorce (Amendment) Act, 1988, scope of certain provisions of the Parsi
Marriage and Divorce Act, 1936 have been enlarged so as to bring them in line
with the Hindu Marriage Act, 1955. Recently, sections 39 and 49 of the F'arsi
Marriage and Divorce Act, 1936 were amended by the Marriage Laws (Amendment) Act, 2001 to provide that an application for alimony 1'elldmtc lite or the
maintenance and education of minor children be dIsposed of within 60 days
from the date of service of notice on the wife or the husband as the case may
be.
As for the matrimonial laws of Jews, there is no codified law in India.
Even today, they are governed by their religious laws. Jews do not regard
marriage as a civil contract, but as a relation between two persons involving
wry sacred duties. Marriage can be dissolved through courts on grounds of .
adultery or cruelty. Marriages are monogamous.
CHILD MARRIAGE

The Child Marriage Restraint Act, 1929, from 1 October 1978, provides that
marriage age for males will be 21 years and for females 18 years.
ADOPTION

Although there is no general law of adoption, it is permitted by the Hindll

500

India 2005

Adoption and Maintenance Act, 1956 amongst Hindus and by custom amongst
a few numerically insignificant categories of persons. Since adoption is legal
affiliation of a child, it forms the subject matter of personal law. Muslims,
Christians and Pars is have no adoption laws and have to approach the court
under the Guardians and Wards Act, 1890. Muslims, Christians and Parsis can
take a child under the said Act only under foster care. Once a child under
foster care becomes major, he is free to break away all his connections. Besides,
such a child does not have the legal right of inheritance. Foreigners, who want
to adopt Indian children have to approach the court under the aforesaid Act.
Hindu law relating to adoption has been amended and codified into the
Hindu Adoptions and Maintenance Act, 1956, under which a male or female
Hindu having legal capacity, can take a son or daughter in adoption. In
dealing with the question of guardianship of a minor child, as in other spheres
of family law, there is no uniform law. Hindu law, Muslim Law and the
Guardians and Wards Act, 1890 are three distinct legal systems which art.'
prevalent. A guardian may be a natural guardian, testamentary guardian or a
guardian appOinted by the court. In deciding the question of guardianship,
two distinct things have to be taken into account - person of the minor and
his property. Often the same person is not entrusted with both.
The Hindu Minority and Guardianship Act, 1956 has codified laws of
Hindus relating to minority and guardianship. As in the case of uncodified
law, it has upheld the superior right of father. It lays down that a child is a
minor till the age of 18 years. Natural guardian for both boys and unmarried
girls is first the father and then the mother. Prior right of mother is recognised
only for the custody of children below five. In case of illegitimate children, the
mother has a better claim than the putative father. The act makes no distinction betwt.'('n the person of the minor and his property and therefore guardianship implies control over both.
Under the Muslim Law, the father enjoys a dominant position. It also
makes a distinction between guardianship and custody. For guardianship,
which has usually reference to b'llardianship of property, according to Sunrus,
the father is preferred and in his absence his executor. If not executor has been
appointed by the father, the guardianship passes on to the paternal grandfather to take over responsibility and not that of the executor. Both schools,
however, agree that father while alive is the sole guardian. Mother is not
recognised as a natural guardian even after the death of the father.
As regards rights of a natural guardian, there is no doubt that father'~
right extends both to property and person. Even when mother has the custody
of minor child, father's general right of supervision and control remains.
Father can, however, appoint mother as a testamentary guardian. Thus,
though mother may not be recognised as natural guardian, there is no
objection to her being appointt.'d under the father'S will.
Muslim law recognises that mother's right to custody of minor children
(Hizanat) is an absolute right. Even the father cannot deprive her of it.

Justice and Law

501

Misconduct is the only condition which can deprive the mother of this right.
As regards the age at which the right of mother to custody terminates, the Shia
school holds that mother's right to the Hizanat is only during the period of
rearing which ends when the child completes the age of two, whereas Hanafi
school extends the period till the minor son has reached the age of seven. In
case of girls, Shia law upholds mother's right till the girl reaches the age of
seven and Hanafi school till she attains puberty.
The general law relating to guardians and wards is contained in the
Guardians and Wards Act, 1890. It clearly lays down that father's right is
primary and no other person can be appointed unless the father is found unfit.
This Act also provides that the court must take into consideration the welfare
of the child while appointing a guardian under the Act.
MAINTENANCE
Obligation of a hushand to maintain his wife arises out of the status of the
marriage. Right to maintenance forms a part of the personal law.
Under the Code of Criminal Procedure, 1973, (2 of 1974), right of
maintenance extends not only to the wife and dependent children, but also to
indigent parents and divorced wives. Claims of the wife, etc., however,
dt')1t:'nds on the husband having sufficient means. Claim of maintenance for all
dl'pendent persons was limited to Rs 500 per month. But, this limit was
remowd by the Code of Criminal Procedure (Amendment) Act, 2001 (No. 50
of 20(1). Inclusion of the right of maintenance under the Code of Criminal
Procedure has the advantage of making the remedy both speedy and cheap.
However, divorced wives who have received money payable under the customary personal law are not t>ntitled to claim maintenance under the Code of
('riminal Procedure.
Under Hindu Law, the wife has an absolute right to claim maintenance
from her husband. But she loses her right if she deviates from the path of
._~a~tit.Y, Her right to maintenanc~ is codified in the Hi~du Adoptions and
all1tenance Act, 1956. In assessmg the amount of mamtenance, the court
t<lkes into account various factors like position and liabilities of the husband.
It <lIsa judges whether the wife is justified in living apart from husband.
Jmtifiable reasons are spelt out in the Act. Maintenance pendente lite (pending
thl' suit) and even expenses of a matrimonial su~t will be borne by either,
hu~band or wife, if the other spouse has no independent income for his or her
~lIpport. The same principle will govern payment of permanent maintenance.
Under the Muslim Law, the Muslim Women (Protection of Rights on
i)i\'orct') Act, 1986 protects rights of Muslim women who have been divorced

b\ or have obtained divorce from their husbands and provides for matters
l()llIH'ctcd therewith or incidental thereto. This Act, inter alia, provides that a
divorced Muslim woman shall be entitled to (a) reasonable and fair provision
,mel maintenance to be made and paid to her within the iddat period by her
lornll'r husband; (b) where she herself maintains children born to her before or

 502

India 2005

after her divorce, a reasonable and fair provision and maintenance to be made
dnd paid by her former husband for a period of two years from the respective
dates of birth of such childen; (c) an amount equal to the sum of mehr or
dOWl'r agreed to be paid to her at the time of her marriage or at any time
thert'after according to the Muslim Law; and (d) all property given to her
before or at the time of marriage or after her marriage by her relatives or
friends or by husband or any relatives of the husband or his friends.
In addition, the Act also provides that where a divorced Muslim woman
is ullable to maintain herself after the period of iddat, the magistrate shall
order directing such of her relatives as would be entitled to inherit her
property on her death according to the Muslim Law, and to pay such
reasonable and fair maintenal1ce to her as he may determine fit and proper,
having regard to the needs of the divorced woman, standard of life enjoyed
by ht'r during her marriage and means of such relatives, and such maintenance
shall be payable by such relatives in proportion to the size of their inheritancl'
of her property and at such periods as he may specify in his order.
Where such divorced woman has children, the magistrate shall order
only such children to pay maintenance to her, and in the event of any such
children being unable to pay such maintenance, the magistrate shall order
parents of such divornd woman to pay maintenance to her.
In the absence of such relatives or where such relatives are not in a
position to maintain her, the magistrate may direct State Wakf Board
established under Section 13 of the Wakf Act, 1995 functioning in the area
in which the woman resides, to pay such maintenann' as determined by him.

The Parsi Marriage and Divorce Act, 1936 recognises the right of wife
to maintenanct'--both alimony pendente life and permanent alimony. The
maximum amount that can be decreed by the court as alimony during the
time a matrimonial suit is pending in court, is one-fifth of tht:' husband's net
income. In fixing the quantum as permanent maintenance, the court will
determine what is just, bearing in mind thf.' ability of husband to pay, wife's
own assets and conduct of the parties. The order will remain in force as long
as wift' remains chaste and unmarried.
The Indian Divorce Act, 1869 illter alia governs maintenance rights of
a Christian wife. The provisions are the same as those under the Parsi Law
and the same considerations are applied in granting maintenance, both
alimony P('IIdt'llte lite and permanent maintenance.
SUCCESSION
The Indian Succession Act was enacted in 1925. The object of the Act was
to consolidate the large number of laws which were in existence at that time.
Laws governing slIccession to Muslims and Hindus were excluded from the
purview of the Act. While consolidating the laws in respect of succession, two
schemes, one reJating to succession to property of persons like Indian
Christians, Jews and persons married under the Special Marriage Act, 1954
and tht' otht:'r relating to succession rights of Par!iis, were adopted.

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503

In the first scheme, applying to those other than Parsis, in the case of
a person dying intestate leaving behind a widow and lineal descendants, the
widow would be entitled to a fixed share of one-third of property and lineal
descendants shall be entitled to the remaining two-third. This law was
amended subsequently with the object of improving rights of widows and
it was provided that where the intestate dies leaving behind his widow and
no lineal descendant and the net value of the estate does not excel'd Rs 5,000,
the widow would be entitled to the whole of his property. Where the net
villue of the estatt' exceeds Rs 5,000 she is entitled to charge a sum of Rs
'),000 with intl'rest at four per cent payment and in the residue, she is entitled
to lwr share. The Act imposes no restriction on the power of a person to will
away his pre/perty.
Under the second scheme, the Act provides for Parsi intestate succession.
By tIll' Indian Succession (Amendment) Act, 1991 (51 of 1991), the Act was
amended to providp equal shares for both sons and daughters in their
parental properties, irrespectiVl' of the fact that it was that of the father or
that of the mothl'T. It also enables the Parsis to bequeath their property to
rdigious or charitable purposes, etc., without any restrictions. In effect the
dmended law provides that where a Parsi dies intestate leaving behind a widow
or widower as the case may be, and children, the property shall be divided
so Ihal the widow or widower and each child receives equal share. Further,
wl1l'Tl' a Parsi dies leaving behind one or both parents in addition to children,
or widow or widower and children, the property shall be so divided that the
pafent Of each of the parents shall receive a share equal to half the share of
each child.

This Act was amended by the Indian Succession (Amendment) Act, 2002.
It was felt that section 32 of the principal Act is discriminatory to widows and
i1~ such the proviso to section 32 was omitted to remove discrimination in this
rt'gJrd. St.'ction 213 was also amended by this amending Act to make Christians
.It par with other communities.
The law relating to intestate succession among Hindus is codified in the
Hindu Succession Act, 1956 (30 of 1956). It extends to the whole of India
l'X!'l'pl the State of Jammu and Kashmir. The remarkable features of the Act
,ln' the recognition of the right of women to inherit property of an intestate
t'llually with m(~n and abolition of the life estat~ of female heirs.
A vast majority of Muslims in India follow Hanafi doctrines of Sunni
('ourts pr('sum(' tllilt Muslims art' governed by Hanafi law unless it is
t'~t'lblished to be the contrary. Though there are many features in common
ht,tw('t_)n Shia and Sunni schools, yet there are differences in some respt.>cts.
SUnni law regards Koranic verses of inheritance as an addendum to prl'lsltll1lir customary law and preserves the superior position of male agnates.
Llnlikt., Hindu and Christian laws, Muslim law restricts a person's right of
It'station. A Muslim can blqucath only onl'third of his estate. A bequest to
a stranger is valid without the consent of heirs if it does not exceed a third
1.11\'.

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of the estate, but a bequest to an heir without the consent of other heirs is
invalid. Consent of heirs to a bequest must be secured after the succession
has opened and any consent given to a bequest during the lifetime of the
testator can be retracted after his death. Shia law allows Muslims the freedom
of bequest within the disposable third.

20

Labour

LABOUR policy in India has evolved in response to specific needs of the

situation to suit the requirements of planned economic development and social
justice and has a two-fold objective, viz., maintaining industrial peace and
promoting the welfare of labour.
LABOUR REFORMS

Labour Reforms essentially means taking steps to increase production,

productivity and employment opportunities in the economy while protecting
overall interest of labour. Essentially it means skill development, retraining,
redeployment, updating knowledge base of workers-teachers, promotion of
leadership qualities, etc. Labour Reforms also includes labour law reforms.
Changes in the labour laws are also done protecting the interests of workers.
MINIMUM WAGES ACT, 1948
Tht:' Minimum Wages Act, 1948 provides for fixation, review, revision, and
enforcement of minimum wages for both the Central Government and State
Governments in respect of scheduled employments in their respective
jurisdiction. There are 45 scheduled employments in the Central sphere
whereas the number of these employments in the State sphere is 1,424.
To protect the wages against inflation, the Central Government introduced
Variable Dearness Allowance (VOA), which is linked to Consumer Price Index.
The VDA is revised every six months effective from 1 April and 1 October.
So far, 24 States / UTs have already adopted the VDA as a component of
minimum wage.
In the absence of a uniform national minimum wage, the concept of a
national floor-level minimum wage was mooted by the Central Government
in 1996 based on the recommendations of the National Commission on Rural
Labour in 1991 and subsequent increase in the price level. It has last been
revised to Rs 66 per day from 1 February 2004.
_ _ _ _ ._ _

....... .1

PAYMENT OF WAGES ACT, 1936

The Payment of Wages Act, 1936 has been enacted with a view to ensure that
wages payable to employed persons covered by the Act are disbursed by the
employers within the prescribed time limit and that no deductions other than .
those authorised by law were made. At present, the covers only those workers
whose wages are below Rs 1,600 per month. A Bill named lithe Payment of
Wages (Amendment) Bill, 2002" to inter-alill enhance the ceiling limit up to
Rs 6,500 p.m. was introduced in the Rajya Sabha on 16 May 2002 and now
comments/concurrence of various Ministries/Departments are being obtained.
PAYMENT OF BONUS ACf, 1965

The Payment of Bonus Act, 1965 provides for payment of bonus to employees

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as defined under tht' Act. According to the Act, "employee" means any person
(other than an apprentice) employed on a salary or wage not exceeding
[{s 3,500 per month in any industry to do any skilled or unskilled, manual,
supervisory, managerial, administrative, technical or clerical work for hire or
reward. However, according to Section 12 of the Act, the bonus is payable to
employees whose salary or wage exceeds Rs 2,500 per month, has to be
calculated as if his salary or wagt> were Rs 2,500 per month. The above wage
ceilings were last revised on l) July 1995 and madl' effective from 1 April 1993.
The Government formulated a proposal to amend the Act so as to revise
the eligibility limit from Rs 3,500 to Rs 5,000 per month and calculation ceiling
from Rs 2,500 to 3,500 per month. The National Commission on Labour in
its report has recommended that every employer must pay each worker his
one-month's wage as bonus before an appropriate festival, be it Diwali or
Ollam or Puja or Ramzan or Christmas. Any demand for bonus in excess of
this, upto a maximum of 20 per cent of the wages, will be subject to
negotiation. It also recommended that the present system of two wage ceilings
for reckoning entitlement and for calculation of bonus should be suitably
enhanced to Rs 7,500 and Rs 3,500 for entitlement and calculation respectively.
WAGE BOARDS

In 1950s and 60s, when the organised labour sector was at a nascent stage
without adequate unionisation or with trade unions without adequate
bargaining power, Government in appreciation of the problems which arise
in the arena of wage fixation, constituted various Wage Boards. The Wage
Boards are tripartite in character in which representatives of workers,
employers and independent members participate and finalise the
recommendations. The utility and contribution of such boards in the present
context are not beyond question. Except for Wage Boards for journalists and
non-journalists, lll'wspaper and news-agency employees, which are statutory
Wage Boards, all other Wage Boards are non-statutory in nature.
WAGE BOARD FOR NEWSPAPER EMPLOYEES

Thl' Working Journalists and Other Newspaper Employees (Conditions of

St,>rvice) and Miscellaneous Provisions Act, 1955 regulates conditions of service
of working journalists and other persons employed in newspaper
establishments. The Act provides for the setting up of Wage Boards for fixation
and revision of rates of wages in respect of working journalists, newspaper /
news-agency employees. The Wage Boards for such employees were set up
in the years 1956, 1963, 1975 and 1985.
The Government, in September 1994, again constituted two Wage
Boards-one for the working journalists and another for the non-journalist
newspaper and news-agency employees under the common Chairmanship of
retired Chief Justic~__!{aj~!l!.}~1~?!~.ana Singh. The Manisana Wage Boards
submitted their final recommendations to the Government on 25 July 2000.
The Government decided to accept the recommendations with some minor
modifications. The Government impressed upon all the States/UTs to take

Labour

507

effective measures for implementing the recommendations of the Wage

Boards. The State Governments of Assam, Andhra Pradesh, Bihar, Maharashtra,
Orissa, Uttar Pradesh, Kerala, Rajasthan, Gujarat and Karnataka constituted
State Level Monitoring Committees for implementation of the Awards. A
Central Level Monitoring Committee is also constituted under the Chairmanship
of Labour and Employment Adviser for reviewing the implemetation of the
Award.
Meanwhile, the Second National Commission on Labour (NCL) has
recommended that there is no nt.'t'd for any Wage Board, statutory or
otherwise, for fixing wage rates for workers in any industry. Keeping in view
the sensitivity of the issue, it has been decided that the matter would require
further deliberations.

CONTRACT LABOUR
The system of employing contract labour is prevalent in most industries in
different occupations including skilled and semi-skilled jobs. It is also
prevalent in agricultural and allied operations and to some extent in the
services sector. A contract labour is a person who is hired, supervised,
contracted and remunerated by a contractor, who in turn, is compensated by
the user enterprises. The concern to improve the working and living conditions
of contract resulted in the enactment of the Contract Labour (Regulation and
Abolition) Act, 1970.
The Contract Labour (Regulation and Abolition) Act, 1970 was brought
on the Statute Book to regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstances and
for matters connected therewith. The Act and the Contract Labour (Regulation
and Abolition) Central Rules, 1971 came into force on 10 February 1971. The
Act provides for the constitution of Central and State Advisory Contract
Labour Boards to advise the respective Governments on matters arising out
of the administration of the Act. The Act contains specific provisions to ensure
payment of wages and certain amenities to be provided by the contractor to
the contract labour.
The Central and State Governments are empowered to prohibit
employment of contract labour in any activity in an establishment and also
to grant exemption to establishments/contractors in the case of an emergency,
from the applicability of the provisions of the Act.
In the Central sphere, the Central Industrial Relations Machinery (CIRM) _
l'ntrusted with the responsibility of enforcing the provisions of the Act and
the rules made thereunder.
In a judgment relating to contract labour, a five judge Constitution Bench
of Supreme Court in the case of Steel Authority of India Limited Vs National
IJlliml of Waterfront Workers and Others have held that the provisions of the
Act do not, expressly or by necessary implication provide for automatic
absorption of contract labour. Consequently, the Principal Employer cannot be

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India 2005

required to order absorption of the contract labour working in the concerned

establishment.
In the wake of economic liberalisation and global competition as well
as the judgments of the courts, proposals to bring about amendments in the
Contract Labour Act are under examination of the Government.

CHILD LABOUR
ELIMINATION OF CHILD LABOUR
Strengthening of Child Labour Cell : The Child Labour Cell is entrusted
with the responsibility of formulation and implementation of policy and
programmes for tackling problems of child labour. The Cell is responsible for
funding and monitoring of the projects taken up under the scheme of National
Child Labour Projects. The Cell also renders financial assitance to voluntary
organisations of taking up action oriented projects for child labour. In addition,
the Cell monitors the enforcement of Child Labour (Prohibition and Regulation)
Act, 1986 and organises meetings of various committees, workshops, Advisory
Boards ctc.
National Child Labour Projects : One of the components of the National
Child Labour Policy, 1987, is setting up of the National Child Labour Projects
(NCLPs) in areas of high concentration of child labour for their identification,
withdrawal and rehabilitation. The package of benefits to child labour for their
rehabilitation include non-formal/formal education, vocational training,
nutrition, health care, stipend, etc. The other activities include more strict
enforcement of child labour related laws, raising awareness against the evil
of child labour and extension of welfare facilities to the child labour. So far,
150 NCLPs are set up for the rehabilitation of 2.11 lakh working children in
13 child labour endemic states. The Government has also approved the
continuation of the existing NCLPs and sanction of additional 100 NCLPs
during the Tenth Plan.
Grants-in-aid to Voluntary Agnecies : This scheme is for taking up action
oriented projects for the rehabilitation of child labour and is implementated
through NGOs and voluntary organisations. Financial assistance to the extent
of 75 per cent of the project cost is provided to the NGOs for running the
projects. The NGOs and voluntary agencies are expected to meet 25 per cent
of the project cost out of their own resources. The scheme allows for flexibility
and innovation.
Indo-US-Dol Matching Grant (INDUS Project) : The MiniStry of LabourUnited States, Department of Labour (Ministry of Labour-U5-00L) Project is
being developed as follow up of the Joint Statement in "Enhanced Indo-US
Cooperation on Elimination of Child Labour" Signed between the Ministry of
Labour and the US Department of Labour in August 2000.
The Project aims at effecting convergence with the Department of
Education to ensure complete elimination of child labour from identified

Labour

509

hazardous industries in identified districts. The project proposes to cover 20

districts in five states, namely, U.P., M.P., Tamilnadu, Maharashtra and the
NCT of Delhi. The US Departemnt of Labour would provide US $ 20 million
(US $ 13 million for the labour component and US $ seven million for the
education component) to be matched, with equal funding from the Indian
Government which will be shared between the Ministry of Labour (US $ 13
million) and Ministry of HRD (US $ 7 million). The project has been launched
on 16 February 2004. Funds were released for 13 districts for setting up of
the project office where there were no NCLPs earlier.

WOMEN LABOUR
Women constitute a significant part of the work force of India but they lag
behind men in terms of level and quality of employment. The Census of India,
199] has registered 22.73 per cent of female population as workers, 90 million
in absolute terms out of a total female popUlation of 407 million. Majority of
women workers are employed in rural areas. Amongst rural women workers,
H7 per cent are employed in agriculture as labourers and cultivators. Amongst
the women workers in urban areas, 80 per cent are employed in un organised
sectors like household industries, petty trades and services, building and
construction, etc. The employment of women in the organised sector (both
public and private sectors) as on 31 March 2001 was about 4.949 million. This
constitutes 17.8 per cent of the total organised sector employment in the
country. The distribution of women employees in major industries reveals that
community, social and personal services sectors continued to absorb the
majority of women employees. The lowest employment of women was noticed
in electricity, gas and water sectors. In factory and plantation establishments
women workers constituted. 10 per cen and 50 per cent respectively of the
total workers in 2000. In mines women workers constitute six per cent of the
total workers in 1999. The main focus of the policies of the Government with
regard to women labour has been to remove the handicaps under which they
work, to strengthen their bargaining capacity, to improve their wages and
working conditions, to enhance their skills and to open up better employment
opportunities for them.
A separate cell, namely, Women Labour Cell is functioning in the
Ministry of Labour to address these problems. The Maternity Benefit Act, 1961
and Equal Remuneration Act, 1976 are the pro~ve and anti-exploitative
legislations which are enacted to protect and safeguard the interest of women
workers at the workplaces. The Equal Remuneration Act stipulates payment .
of equal remuneration to men and women workers for same and similar
nature of work. The Act also prohibits any gender discrimination in recruitment
and service conditions.
Under the Act, a Committee has been set up to advise the Government
on providing inaeasing employment opportunities for women and generally
reviewing the steps taken for effective implementation of the Act. The State
Governments and Union Territory Administrations have also set up similar

India 2005

510

Committt.'Cs. The Central Advisory Committee at National level and the

Advisory Committees at State level functions along with competent authorities
to oversee the process of implementation of the Equal Remuneration Act, 1976.
Further, the Women Cell in the Ministry is also administering a grantin-aid scheme for the welfare of women labour. This Scheme is implemented
through voluntray organisations which are provided grants-in-aid for running
projeds for awareness generation among women workers and educating them
about their rights, women related schemes and programmes, etc. With a view
to having a more focussed approach on the subject in Tenth Plan, an enhanced
outlay of Rs 245 lakh has been earmarked for the Scheme.
The Supreme Court of India in its landmark judgement dated 13 August
1997 in the matter of Visakha and others vs the State of Rajasthan and others
laid down detailed guidelines/norms for prevention of sexual harassment of
women workers at work places. These guidelines have the force of law under
Article 141 of the Constitution.
The Government has taken a number of initiatives to give effect to the
guidelines laid down by the Supreme Court. These include circulation of the
guidelines for action. Conduct Rules applicable to Government employees and
officers of All India Services are amended to incorporate Supreme Court
guidelines. 10 make the guidelines applicable to employees in the private
sector, the Industrial Employment (Standing Orders) Act, 1946 has also been
amended accordingly.

B~~ED

LABOUR

The system of debt bondage in India is an outcome of certain categories of

indebtedness, which are prevailing for a long time involving certain
economically exploited, helpless and weaker sections of the society. This the
system originated from the uneven social structure characterised by the feudal
and semi-feudal conditions.
The issue of 'bonded labour' came to the forefront in national politics,
when it was included in the 20-Point Programme in 1975. To implement this,
the Bonded Labour System (Abolition) Ordinance was promulgated. This was
later replaced by the Bonded Labour System (Abolition) Act, 1976. It freed
unilaterally all the bonded labourers from bondage with simultaneous
liquidation of their debts.
The district and sub-divisional magistrates have been entrusted with
certain duties/ responsibilities towards implementation of statutory provisions.
The Act also provides for constitution of Vigilance Committees at the district
and sub-divisional level for implementation of the provisions of the law. The
Act provides for imprisonment up to three years and fine up to Rs 2,000 to
whoever compels any person to render any bonded labour and whoever
advances any bonded debt. Under the Bonded Labour S~tem (Abolition), Act,

Labour

511

1976 identification and release of bonded labourers and rehabilitation of frl.'ed

honded labourers is the direct responsibility of the State Governments

concerned.
~, ,

''_'

The issue of bonded labour has been discussed in the Supreme Court /
High Court in the form of Public Interest Litigations. The Supreme Court has
directed that the NationalHuman Rights Commission (NHRC) should be
involved in dealing with the issue of bonded labour.
The Centrally-sponsored Scheme was modified in May 2000. In the
modified Scheme, besides increasing the rehabilitation assistance from
Rs ] (J,OOO to Rs 20,000 per bonded labourer, provision has also been made for
giving Central grants to the States/ UTs for awareness generation, survey of
b(lnd~'d labourers and evaluatory studies. As per the modified scheme, Rs 10
lakh are provided per annum to State Government for creating awareness
generation, Rs two lakh per district for survey of bonded labourers once in
three years in a district and Rs five lakh per annum for conducting evaluatory
studies. So far 2,85,379 bonded labourers are identified of which, 2,65,416
rehabilitated through Central assistance of Rs 6,753.46 lakh.

UNORGANISED SECTOR
The term 'unorganised labour' is defined as those workers who have not been
able to organise themselves in pursuit of their common interests due to certain
mnstraints like casual nature of em!.?yment, ignorance and illit~!~cy, small
and scat:tere~ size of establi_:;hments, etc.
f') (( "
As per the survey carried out by the ,National Sample S~~y Organisation)
in the year 1999-2000, the total employment in both organised and unorganised
sectors in the country was of the order of 39.7 crore, i.e., around 2.8 crore in
the organised sector and the balance 36.9 crore in the unorganised sector. Out
of 36.9 crore workers in the unorganised sector, there are 23.7 crore workers
employed in agricultural sector, about 1.7 crore in construction work, 4.1 crore
in manufacturing, 3.7 crore in trade and 3.7 crore in transport, communication
and services. The Census 2001 has estimated the number of workers in the
country as 40.2 crore, out of which 31.3 crore are main workers and 8.9 crore
arl' margiiiaf workers.
In order to take care of the social security lind welfare of unorganised
workers, two pronged strategy, i.e., legislative measures and implementation
of welfare schemes and programmes has been fO~Wed so far. The.. legislative '.
measures include providing benefits under the Minimum W~es Act,~!
the_Workmen's Compensation.&t.,_192'~l the ,Mat ri_"li'l_~!}efit,.A~.196J.,..
B?~aed LabOur 5 stem
. 'on Act, 1976, die Contr~~~ (Regulation
an AbO 1lion ct, 1970, the Inter- ta
t Workmen (RECS) Act, 1979,
the Building and Other'COnsfruction "'Workers (RECS) 'Act, 1996, etc.
The Government has set up Welfare Funds for providing welfare
measures to the beedi, non-coal mine and cine workers. The Funds are used

512

India 2005

to provide financial assistance to these workers for education of their children,

recreation, medical and health facilities, construction of houses, etc.
A scheme for unorganised sector workers, 'the Unorganised Sector
Workers' Social Security Scheme, 2004' was launched in January 2004 in 50
districts on Pilot basis. The scheme aims at three benefits to unorganised sector
workers viz., old age pension, coverage under Universal Health Insura.t!..ce
Scheme (UHIS) and personal accident insurance cover. Employees' Provident
Fund Organisation (EPFO) is implementing the Scheme. So far around 3,500
workers have been enrolled under the Scheme.

f1 LABOUR STATISTICS
/

Labour Bureau, Chandigarh/ShimJa is engaged in collection, compilation,

analysis and dissemination of labour statistics at All-India level on different
facets of labour such as employment, wages, earnings, strikes and lockouts,
labour turnover, working and living conditions of workers, etc., both in
organised and unorganised sector of industries. It also constructs, maintains
and publishes Consumer Price Index Numbers for: i) Industrial Workers (Base
1982 '"' 100) for ii) Rural Workers (Base 1986-87... 100) and for
iii) Agricultural Labourers (Base 1986-87=1(0). The Consumer Price Index
Numbers for Industrial Workers with a new Base (2001-100) are expected to
be released in near future. Labour Bureau also compiles Retail Price Indices
of 31 essential commodities for both rural and urban Centres. It also compiles
Wage Rate Indices for 21 industries.

LABOUR RESEARCH
V. V. Giri National Labour Institute, NOIDA (Uttar Pradesh) is an autonomous
body engaged in research pertaining to labour and training of labour
administrators, trade unions, public sector managers and other government
functionaries concerned with labour.
Research occupies a primary place in the activities of the Institute. It
comprises a broad spectrum of labour related issues and problems, in both
the organised and unorganised sectors. Issues of topical concern and relevance
of policy are taken up for research. The Institute continues to place greater
emphasis on the disadvantaged such a child labour, women labour and rural
labour.
Research activities also explore the basic needs of different groups of
trainees such as trade union leaders and organisers in both organised and
unorganised sectors, managers of public and private sectors, labour
administrators and volunteers of non-governmental organisations. There are
seven centres which carry out studies on the major themes related to research.
Each centre is guided by a Research Advisory Committee, which consists of
experts in the respective areas.
The Institute completed 19 research projects in the areas of labour
market, employment and regulations, agrarian relations and rural labour,

Lahour

513

integrated labour history, child labour and prevention of HIV / AIDS in

workplace. N.R. De Research Centre on Labour Information (NRDRCLI) in the
Institute is one of the most reputed library-cum-documentation centres in the
area of labour studies in the country. Integrated Labour History Research
Programme (ILHRP) has been started in the Institute with an aim to initiate,
integrate and revive research on labour history.
The Union Minister of Labour and Employment is the President of the
Institute. The Institute has 20-member Central Council comprising
rt:'presentatives from Central Government, organisation of employers and
workers and Members of Parliament and distinguished persons who have
made noteworthy contributions in the field of labour. The Council elects the
Executive Council, which is responsible for the management of the affairs of
thl' ln~jtitute.

WORKERS' EDUCATION
The Central Board for Workers' Education (CBWE), established in 1958, is a
tripartite society and implements tht.' workers' education programmes at
national, regional and unit/ village levels. The objective of Board's training
programmes is to create awareness among all workers. The Board undertakes
training programmes, which cover workers from organised, unorganised, rural
Jnd informal sectors. Supervisory and managerial cadres are also covered
through joint education programmes.
With headquarters at Nagpur, the Board has a 49 regional and nine subregional directorates spread throughout the country. The four zonal directorates
at Delhi, Mumbai, Kolkata and Chennai monitor the activities of the regional
directorates. The Board has set up the Indian Institute of Workers Education,
an apex level training institute at Mumbai to conduct national level training
programmes.
Besides, the Board is bringing out awareness among the informal sector
workers about various welfare schemes through the newly designed labour
wl'lfare and development programmes entrusted by the Ministry of Labo,:!r
to the Board with an additional outlay of Rs two crore for the year 2004-05.

WORKERS' SAFETY
SAFElY, HEALTH AND WELFARE OF WORKERS IN FACTORIES
The Factories Act, 1948 is the principal legislation for regulating various
~spects relating to .safety, health and welfare of workers employed in factories.
This Act is a Central enactment which aims at protecting workers employed
in factories from industrial and occupational hazards. State governments and
Union Territory Administrations frame rules under the Act and enforce
PlOvisions of the Act and rules through their factory inspectorate. The
Directorate GeneraL Factory Advice Service and Labour Institute (DGFASLI),
Mumbai, renders technical advice to the States/Union Territories in regard to

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India 200:

administration and enforcement of the Factories Act. With five regional labour
institutes at Mumbai, Kolkata, Kanpur, Chennai and Faridabad under its
control, the DGFASU also undertakes support research facilities and carries
out promotional activities through education and training in matters concerning
occupational safety and health. The Directorate General also reviews the
position regarding implementation and enforcement of the Act.
Prescribing a 48 hours week for adult workers, the Factories Act forbids
employment of children under 14 years of age in any factory. Minimum
Standards of lighting, ventilation, safety and welfare services which employers
must provide in their factories have also been laid down. Factories employing
over 30 women workers are required to provide a creche for their children,
shelters, rest-rooms and lunch-rooms are required to be provided by factories
employing over 150 workers. Factories with 250 workers or more have to
appoint welfare officers. The Factories Act was amended in 1987 in order to
impose a general duty on employers to ensure health and safety of workers
and on designers, manufacturers, importers and suppliers to ensure that
articles designed, manufactured, etc., are without risk to the health and safety
of workers. A new chapter for regulating safety and health aspect in hazardous
industries was incorporated in the Act.
SAFETY IN PORTS AND DOCKS
Provisions relating to safety, health and welfare of workers employed in docks
are contained in the Dock Workers (Safety, Health and Welfare) Act, 1986 and
rules and regulations framed thereunder. The Act came into force on 15 April
1987. Enforcement of this Act in all the major ports is the responsibility of
the Ministry of Labour and this responsibility is discharged through the
DGFASU, Mumbai. The DGFASU, being the Chief Inspector of Docks, is also
entrusted with the responsibility of enforcing in major ports the Manufacture,
Storage and Import of Hazardous Chemical Rules, 1989 framed under the
Environment (Protection) Act, 1986.
SAFETY IN MINES
Provisions for safety, health and welfare of workers employed in mines are
contained in the Mines Act, 1952 and rules and regulations framed thereunder.
These provisions are enforced by the Directorate General of Mines Safety. The
Directorate General with its headquarters at Dhanbad and its zonal, regional
and sub-regional offices spread all over the mining areas in the country
undertakes its functions, inspection of mines, investigation of all fatal
accidents and also certain serious accidents depending upon the gravity of
the situation, grant of statutory permiSSion, exemptions and relaxations in
respect of various mining operations, approval of mines safety equipment,
appliances and material, conduct examinations for grant of statutory
competency certificate, safety promotional incentives including organisation
of national awards and national safety conference, etc.

NATIONAL SAFETY COUNCIL

The National Safety Council was set up in 1966 to promote safety consciousness

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among workers to prevent accidents, minimise dangers and mitigate human

suffering, arrange programmes, lectures and conferences on safety, conduct
educational campaigns to arouse consciousness among employers and workers
and collect educational and information data, etc. National Safety Day..i&
cel"~I:!.J;:~te~_~ March every year to mark _~h~"iQl.mdation day of the National
Saf~
i!fJ!..C ---,", .... ~,~O! "i),-,:~; 1-1''''' f'~-".;
AWARD
PRIME MINISTER'S SHRAM AWARDS
Prime Minister's Shram Awards are given to workmen working in the
departmental undertakings and the public sector undertakings of the Central
Government and State governments in recognition of their outstanding
contribution to production and for showing exemplary zeal and enthusiasm
in the discharge of their duties. The awards, in order of precedence, are: Shram
Ratna, Shram Bhushall, Shrum Vir/Shram Veerangna and Shram ShrilDevi.
The recognition consists of a Sanad and cash award of Rs two lakh, Rs one
lakh, Rs 60,000 and Rs 40,000 respectively. The manufacturing units in private
sector employing 500 or more workers are also brought within the ambit of
Prime Minister's Shram Awards Scheme from the year 2004 onwards.
NATIONAL SAFETY AWARDS
To give recognition to good safety performance on the part of the industrial
undertakings and to stimulate and maintain the interest of both management
and workers in accident prevention programmes, the Government instituted
in ] 965 the National Safety Awards. The scheme is applicable to factories and
docks.
The National Safety Awards for Mines were instituted in 1983. The
scheme is designated to give recognition to outstanding safety performances
of mines of national level which comes within the purview of the Mines Act,
1952. There are 32 awards (16 winners and 16 runners-up) which are given
to the management.
VISHWAKARMA AWARDS

Shram Vir Awards, now known as Vishwakarma RIlshtriya Puraskar were

instituted in 1965. These are meant for workers of factories, mines, plantations
and docks and are given to them in recognition of their meritorious
performance, which leads to high productivity or economy or higher efficiency.

EMIGRATION
The Emigration Act. 1983, which came into force with effect from 30 December
1983 regulates deployment of Indian citizens for employment abroad on
contractual basis and seeks to safeguard their interests. Under the provisions
of the Act, an employer can recruit any citizen of India for employment in
any country or place outside India either through Recruiting Agent competent

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under the Act to make such recruitment or directly in accordance with a valid
permit issued by the Central Government under the Act. The competent
authorities to grant permit for deployment of Indians abroad are the Protector
General of Emigrants (PGE) and Heads of Indians Missions abroad. Recruiting
Agents are allowed to charge upto Rs 2,000 in the of case of unskilled workers,
Rs 3,000 in the case of semi-skilled workers, Rs 5,000 in the case of skilled
workers and Rs 10,000 in the case of other categories from each emigrant as
service charges for various services rendered in connection with processing
their cases for employment abroad.
In the mid-seventies, the oil boom changed the complexion of migration.
The hike in the oil prices during 1973-74 and afterwards led to a considerable
increase in the revenue of oil producing and exporting countries in the Gulf
region. As a result, development programmes including creation of amenities
like school, hospitals, houses, etc., were taken up. This resulted in a spurt in
demand for not only highly skilled technical experts but also semi-skilled and
unskilled workers. Therefore, the major outflow of emigrant workers in the
last few years has been to the Gulf countries. During the year 2003, about 3.96
lakh workers had emigrated to Gulf countries (Bahrain, Kuwait, Saudi Arabia,
UAE and Qatar). During the year 2003, the eight Protectors of Emigrants
located in Delhi, Mumbai, Kolkata, Chennai, Thi ruvananthapu ram, Cochin,
Chandigarh and Hyderabad granted emigration clearance to 4,66,456 workers.
Then> are 17 categories of persons who are entitled to get the endorsement
of "Emigration Check Not Required" (ECNR) on their passports from the
passport office by showing proof of their eligibility. The categories are :
(i) persons going in managerial capacity in hotels, restaurants, tea-houses or
other places of public resort, etc., possessing specialised degrees in these fields;
(ii) all gazetted government servants; (iii) all income-tax payers (including
agricultural income-tax payers). In respect of their individual assessment to
Income Tax and actual payment of income-tax for last three years to be insisted
upon, and not merely payment of advance tax; (iv) all professional degree
holders, such as doctors holding M.B.B.S. degree or degrees in Ayurved or
Homoeopathy, Accredited Journalists, Engineers, Chartered Accountants,
Lecturers, Teachers, Scientists, Advocates, etc.; (v) spouses and dependents
children of category of persons listed from (i) to (iv) above; (vi) all persons
who have been staying abroad for more than three years (the period of three
years could be either in one stretch or broken) and spouse, and children of
such persons; (vii) all Indian Seafarers who hold Indian or Foreign CDCs and
are in possession of an offer of employment from shipping companies in India
or abroad and Sea-Cadets; (viii) all holders of diplomatic/official passports;
(ix) dependent children of parents whose passports are classified as ECNR (in
the case of such children, ECNR/ classification to be restricted till they attain
24 years of age); (x) persons holding permanent immigration visas, such as
in UK, USA and Australia; (xi) persons holding graduation or higher degrees;
(xii) persons holding diplomas from recognised institutions like polytechnic;
(xiii) nurses possessing qualifications recognised under the Indian Nursing

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517

Council Act, 1947; (xiv) all persons above the age of 60 years; (xv) all visitors
to Pakistan and Bangladesh; (xvi) all persons going to any country in Europe
(excluding CIS countries), North America, Australia, New Zealand or Japan;
and (xvii) Persons possessing certificates of vocational training from
Government/ Government recognised institutions.
The emigration clearance procedure has been simplified for certain
categories of workers. A worker belonging to any of the following six
categories can either approach the POEs or the passport authorities through
d registered Recruiting Agent for ECNR endorsement on his / her passport. The
six categories are supervisors (all professions), skilled workers (all professions),
semi-skilled workers (all professions), light/medium/heavy vehicle drivers,
clerical workers of all categories including stenographers, store-keepers, timekeepers, typists, etc., and cooks excluding those in domestic employment.
The pilgrim going for Haj and Umrah in Saudi Arabia and those pilgrims
travelling with the declared purpose of performing 'Ziarat' to Saudi Arabia,
Syria, Iran, Iraq, Jordan, Egypt and Sana (Yeman) are exempted from
'Emigration Check Requirement". Similarly persons going to any of the 54
countries (which have so far been notified under the Emigration Act, 1983)
for jobs or otherwise are also exempted from the requirement of obtaining
emigration clearance from the office of POEs.
The process of grant of emigration clearance has been decentralised for
the convenience of applicants. Eight offices of Protector of Emigrants. are
established at Delhi, Mumbai, Kolkata, Chennai, Thlruvananthapuram, Cochin,
Chandigarh and Hyderabad. In order to fadlitate smooth public inter face,
all POEs work six days a week.
The employment of Indian workers abroad has helped the country to
earn foreign exchange and add to its foreign exchange reserves. The Global
Development Finance Report released by the World Bank reveal that Indian
workers remitted more than US $ 10 billion in 2001. This amount constitutes
13 per cent of US $ 72.3 billion flowing into all developing countries. In 1999,
remittances from Indians abroad constituted 21 per cent of India's Export
Earnings. As per figures available, 4.66 lakh workers have emigrated for
employment during the year 2003 as compared to 3.6 lakh during the year
2002.

On the occasion of the Pravasi Bharatiya Divas on 9 January 2003, the

Prime Minister announced introdution of a compulsory Insurance Scheme for
the emigrants going abroad for employment. A compulsory Insurance Scheme
known as the Pravasi Bharatiya Bima Yojana (PBBY), 2003 was notified on
13 November 2003. This Scheme came into force on the 25 December 2003
and is applicable only to citizens of India who are required to obtain
emigration clearance.

The Act provides for legal and penal action against unscrupulous
recruiting agents. Various offences including cheating of emigrants have been

P0(-

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India 2005

made cognizable under the Act. A system of public hearing is introduced in

the office of the Protector General of Emigrants (PGE). Affected parties can
meet the PGE on any Tuesday or Friday without appointment for redressal
of their grievances. During the year 2003, about 1,445 petitions/representations
were handled at these Public Hearings and all of them have been disposed
off.

INDUSTRIAL RELATIONS
INDUSTRIAL DISPUTES ACT, 1947
The Industrial Disputes Act, 1947 basically provides for investigation and
settlement of industrial disputes. The main objectives of the Act are as follows:
promotion of measures for securing and preserving amity and good relations
between the employer and workmen; investigation and settlement of industrial
disputes between employers and employers, employers and workmen or
workmen and workmen, with a right of representation by registered trade
union or a federation or trade unions or an association of employers or a
federation of associations of employers; prevention of illegal strikes and lockouts; relief to workmen in the matter of lay-off and retrenchment; and
collective bargaining.
The special provisions relating to layoff, retrenchment and closure are
applicable to establishments employing not less than 100 workmen on an
average per working day. The Act also provides for protection in the shape
of retrenchment compensation and notice to the workmen who have completed
240 days continuous service in the establishment in the preceding 12 months
before effecting retrenchment, closure, etc.
The amendment proposals in the Industrial Disputes Act mainly are to
promote better employer-employee relationships by strengthening bipartism
among the two social partners, flexibility in the procedures and more powers
to Industrial Tribunals for better enforcement of labour laws are under
consideration.
TRADE UNIONS ACT, 1926
The Trade Unions Act, 1926 provides for registration of trade unions of
employers and workers and in certain respects, it defines the law relating to
registered trade unions. It confers legal and corporate status on registered
trade unions. The Trade Unions Act, 1926 is administered by the concerned
State Governments.
The Trade Unions Act, 1926 has been amended and following amendments
have been entorced from 9 January 2002 : No trade union of workmen shall
be registered unless at least 10 per cent or 100, whichever is less, of workmen
engaged or employed in the establishment or industry with which it is
connected are the members of such trade union on the date of making the
application for registration. In no case a union shall be registered without a
minimum strength of seven members; A registered trade union of workmen

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519

shall at all times continue to have not less than 10 per cent or 100 of the
workmen, whichever is less, subject to a minimum of seven persons engaged
or employed in the establishment or industry with which it is connected, as
its members; A provision for filing an appeal before the Industrial Tribunal/
Labour Court in case of non-registration / restoration of registration has been
provided; All office bearers of a registered trade union, except not more than
one-third of the total number of office bearers or five, whichever is less, shall
be persons actually engaged or employed in the establishment or industry
with which the trade union is connected; and Minimum rate of subscription
by members of the trade union is proposed to be revised as one rupee per
annum for rural workers, three rupees per annum for workers in other
unorganised sectors and 12 rupees per annum in all other cases.

INDUSTRIAL TRIPARTITE COMMITTEES

Several industrial tripartite committees have been constituted with a view to
promote the spirit of tripartism. These tripartite bodies aim at solving the
industry specific problems related to workers in the Cotton Textile Industry,
Electricity Generation and Distribution, Jute Industry, Road Transport and
Engineering Industry.

SOCIAL SECURITY
WORKMEN COMPENSATION ACT, 1923
A beginning was made in Social Security with the passing of the Workmen's
Compensation Act in 1923. The Act provides for payment of compensation
tll workmen and their dependents in case of injury and accident (including
certain occupational diseases) arising out of and in the course of employment
and resulting in disablement or death. The Act applies to railway servants and
persons employed in any such capacity as is specified in Schedule II of the
Act. It includes persons employed in factories, mines, plantation, mechanically
propelled vehicles, construction works and certain other hazardous occupations.
Minimum rates of compensation for permanent total disablement and death
are fixed at Rs 90,000 and Rs 80,000 respectively. Maximum amount for death
and permanent total disablement can go up to Rs 4.56 lakh and Rs 5.48 lakh
rpspectively depending on age and wages of workmen.

MATERNITY BENEFIT ACT, 1961

The Maternity Benefit Act, 1961 regulates employment of women in certain
establishments for a certain period before and after childbirth and periods for
maternity and other benefits. The Act applies to mines, factories, circus,
industry, plantation, shops and establishments employing ten or more persons,
except employees covered under the Employees State Insurance Act, 1948. The
State Governments can extend it to any other establishment or class of
establishments. There is no wage limit for coverage under the Act.

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India 2005

EMPLOYEES' STATE INSURANCE ACT, 1948

The Employees' State Insurance Act is applicable in the first instance, to nonseasonal factories using power and employing 10 or more persons and nonpower using factories employing 20 or more persons. Under the enabling
provisions contained in the Act, the Act is being extended by the State
Governments to new classes of establishments, namely, shops, hotels,
restaurants, cinemas, including preview theatres, road motor transport
undertakings and newspaper establishments employing 20 or more persons.
It covers employees drawing wages not exceeding Rs 7,500 with effect from
1 April 2004. The Act provides medical care in kind and cash benefits in the
contingency of sickness, maternity and employment injury and pension for
dependents in the event of the death of a worker because of employment
injury. Full medical care including hospitalisation is also being progressively
made available to members of the family of the insured persons. As on
31 December 2003 there were 142 ESI hospitals and 43 ESI annexes with 26,849
beds and 1,447 dispensaries under the scheme. The total number of employees
covered was about 78 lakh.
PAYMENTS OF GRATUITY ACT, 1972
The Payment of Gratuity Act, 1972 is applicable to factories, mines, oil fields,
plantations, ports, railways, motor transport undertakings, companies, shops
and other establishments. The Act provides for payment of gratuity at the rate
of 15 days' wages for each completed year of service or part thereof in excess
of six months subject to a maximum of Rs 3.50 lakh. In case of seasonal
establishments, gratuity is payable at the rate of seven days' wages for each
season. The Act does not affect the right of an employee to receive better terms
oi gratuity under any award or agreement or contract with the employer.
EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS
ACT, 1952
Retirement benefits in the form of provident fund, family pension and deposit
linked insurance are available to employees under the Employees Provident
Fund and Miscellaneous Provisions Act, 1952. As on 31 March 2003, the Act
covered 180 specified industries I classes of establishments. Coverage under
the Act is presently restricted to establishments employing 20 or more persons.
The ratl' of contribution is 12 per cent in respect of 175 industries/
establishments employing 20 or more persons. Under the Act, employers are
required to make a matching contribution.

EMPLOYEES' DEPOSIT-LINKED INSURANCE SCHEME, 1976

Another important social security measure, Employees' Deposit-Linked
Insurance Scheme, 1976 was introduced for members of the Employees'
Provident Fund and exempted Provident Fund with effect from 1 August 1976.
On the death of an employee, while in service, who is a member of the
Employees' Provident Fund or of the exempted Provident Fund, the persons
entitled to receive the provident fund accumulations would be paid an

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521

additional amound equal to the average balance in the provident fund account
of the deceased during the preceding 12 months. The maximum amount of
benefit payable under the scheme is Rs 60,000 and the employees do not have
to make any contribution to it.
EMPLOYEES' PENSION SCHEME, 1995
Employees' Pension Scheme 1995 was introduced for the industrial workers
from ]6 November 1995. Under the scheme, pension at the rate of 50 per cent
of pay is paydble to the employees on retirement / superannuation on completion
of 13 years qualifying service. A minimum 10 years service is required for
entitlement to pension. Depending upon the salary and service of the
employee at the time of death, the scheme also provides for grant of family
pl'nsion ranging from Rs 450 per month to Rs 2,500 per month. In addition,
children pension at the rate of 25 per cent of widow pension subject to a
minimum of Rs 150 per child is also payable up to two children. The scheme
is financed by diwliing the employer's share of provident fund representing
H.33 pt.'r cent of the monthly wage to the pension fund. In addition, the Central
Government also contributes to the scheme at the rate of 1.16 per cent of the
wage. The upper limit has been raised from Rs 5,000 to Rs 6,500 with effect
from 1 June 2001.

EMPLOYMENT AND TRAINING

To help the youth build their career, the Directorate General of Employment
iJnd Training (DGE&T) has evolved various training programmes. These are
formulated within the national framework as far as possible and also in
collaboration with foreign countries.
CRAFTSMEN TRAINING
Industrial Training Institutes (ITIs) were set up all over the country to impart
skills both in engineering and non-engineering trades to young men and
women in the age group of 15-25. By 31 December 2003, 4,877 such institutes
with a total capacity of about 7.10 lakh were providing training to craftsmen
in the country. The duration of the course is one or two years for engineering
trildes and one year for all non-engineering trades. Educational qualifications
for admission vary from eighth standard to twelfth standard depending upon
the trades. Some State Governments and Union Territories have introduced
training in certain trades to meet the requirements' of local industries under
the jurisdiction of state councils for vocational training.
CRAFTS INSTRUCTORS' TRAINING
Advanced Training Institutes (ATIs) at Howrah, Mumbai, Kanpur, Ludhiana
and Hyderabad and Central Training Institute for instructors at Chennai were
established in 1960s to train instructor trainees in the techniques of imparting
inuListrial skills, who in tum train and make available skilled manpower for
industry. These institutes with a seating capacity of 1,099 offer a series of oneyl'ar courses which provide comprehensive training, both in skill development

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India 2005

and principles of teaching. Refresher courses are also conducted to update and
upgrade the knowledge and skill of the instructors and keep them abreast of
technological developments in industry. Facilities for training of instructors in
some selected special tradt.'S continue to be available in farm mechanic trades
at ATI, Ludhiana and mill-right trades at ATI, Kanpur, Howrah and Ludhiana,
where seats for scheduled caste and scheduled tribe candidates are reserved
as per the Central Government norms.
ADVANCED VOCATIONAL TRAINING SCHEME
Advanced Vocational Training Scheme was launched in October 1977 for
training of highly skilled workers and technicians in a variety of advanced
and sophisticated skills not available for other vocational training programmes.
Regular full-time courses of two to 12 weeks' duration are offered under tht>
scheme in a variety of advanced skill areas. The scheme was introduced in
six advanced training institutes located at Mumbai, Kolkata, Hyderabad,
Kanpur, Ludhiana, Chennai and 16 selected industrial training institutes under
] 5 State Governments. These institutes were modernised to conduct various
advanced courses under the scheme have an annual capacity to train about
10,000 industrial workers.
WOMEN'S VOCATIONAL TRAINING PROGRAMME
Vocational Training facilities for women in the country arc organised through
a network of 218 Women Industrial Training Institutes and 582 Women Wings
and private I1'ls with a seating capacity of about 46,658 under the control of
State Governments. In 1996 National Council for Vocational Training
recommended that in general ITIs, up to 25 per cent of the sanctioned seats
may be reserved for women candidates. These seats could be filled up based
on general reservation policy of each of the State/UT, the total reservation
being limited to 50 per cent. Under the Vocational Training Programme,
managed directly by the Central Government and a National Vocational
Training Institute at Noida as an apex centre and 10 Regional Vocational
Training Institutes at Mumbai, Bangalore, Thiruvananthapuram, Kolkata,
Bissar, lura, Allahabad, Indore, Vadodara and Jaipur have been set up with
an intake capacity of 3,232 in basic, advanced and instructional skills. Besides
this, short term courses are also organised as per availability of infrastructurt>
facilities. Till October 2003 more than 36,200 women have been trained in thest>
institutes since inception.
CENTRAL INSTRUCTIONAL MEDIA INSTITUTE
The Central Instructional Media Institute (CIMI) has been set up in Chennai
to make available instructional material in the form of Media Packages (MPs)
for the use of trainers and trainees and apprentices under the Apprenticeship
Training Scheme. The Institute has developed various elements of Instructional
Media Packages (IMPs) comprising instructional materials, instructors' guide,
wall-charts, overhead text books and transparencies on technology, land
workshop calculations and science. CIM! was granted autonomy from 1 April
1999.

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FOREMEN TRAINING/SUPERVISORY TRAINING

Training programmes for supervisors / foremen for industry are organised at
two Foremen Training Institutes located at Bangalore and Jamsheclpur.
CENTRAL STAFF TRAINING AND RESEARCH INSTITUTE
The Government in collaboration with the Government of Republic of
(;ermany has set up the Central Staff Training and Research Institute, Kolkata,
in 1968. The Institute has three wings-Training, Research and Development.
The Training Wing provides training to the executives and administrators of
vocational and industrial training in the country. The Research Wing conducts
problem oriented studies on different aspects of vocational training and the
Development Wing is to develop and disseminate in.,tructional material and
aid / models for effective execution of industrial training.

APPRENTICESHIP TRAINING SCHEME

Thc Apprentices Act, 1961 makes it obligatory for employers in specified
industries to engage apprentices for undergoing Apprenticeship Training,
which varies from OJ1E' YCilT to four years. The training consists of basic
training followed by on-the-job or shop floor training in accordance with
stilndcHds prescribed by the Government in consultation with the Central
Apprenticeship Council. So far 254 industries have been specified and 153
treldes designated for trade apprentices.
The Apprenticeship Act, 1961 was amended in 1973 to bring under its
purview the training of graduate and technical (vocational) apprentices,
graduates and diploma holders in engineering and technology. The Act was
again amended in 1986 to include technical (vocational) apprentices for the
benefit of students passing out of the 10+2 vocational education stream.
103 subject fields have been designated for the category of Graduate and
lechnician apprentices and as per the category of Technician (Vocational)
apprentices, 78,461 seats are allocated for these categories.
EMPLOYMENT
Employment in the organised sector, Le., in all public-sector and nonagricultural establishments employing 10 or more persons in private sector,
decreased from 277.89 lakh in March 2001 to 272.06 lakh in March 2002, a
decrease of 0.10 per cent. The decrease in private sector employment during
2001-02 was 2.50 per cent. The primary objective of the Ninth Plan was to
generate greater productive employment in the growth prOCess itself by
concentrating on sectors, sub-sectors and technologies which are more labourintensive in regions characterised by higher rates of unemployment and
underemployment.
NATIONAL EMPLOYMENT SERVICE

Thl' National Employment Service (NES) has a network of 945 employment

exchanges/Universities Employment Information and Guidance Bureau)(

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India 2005

(UEIGBX) as on December 2003. The exchanges assist all employment seekers

including special groups like handicapped, ex-servicemen, scheduled castes
and scheduled tribes, women, etc, through placement against jobs notified by
employers. NES also carries out other functions such as vocational guidance
and employment counselling, coordination and dissemination of employment
market information and conducts studies in the field of employment and
occupational research with a view to generate data for framing employment
and manpower policies.
Under the Employment Exchanges (Compulsory Notification of Vacancies)
Act, 1959, it is obligatory for all establishments in public sector and such of
those non-agricultural establishments in private sector which employ 25 or
more workers to notify their vacancies (with certain exemptions) to Employment
Exchanges and supply periodic information as prescribed in the Act the rules
thereunder. Development of these programmes, at the national level, particularly
in the area of evolVing common policies, laying down common standards and
procedures, training of officers and evaluation of the programmes is the
responsibility of the Central Government. The day-to-day administration of
the employment exchanges on the other hand, rests with the State Governments I
UT Administrations. There are 43 spedal exchanges for phYSically handicapped.
Seventeen vocational rehabilitation centres provide a comprehenSive package
of rehabilitation services to the physically challenged.
VOCATIONAL GUIDANCE
Vocational guidance and employment counselling services are provided to
youth (applicants without any experience) and adults (with specific work
experience). Such units were functioning in 362 Employment Exchanges as on
March 2004. In addition, Employment Information and Guidance Bureaux are
functioning in 82 Universities. These units assist applicants and youth in
planning their career. A special scheme operates in 23 selected districts on a
pilot basis to motivate and guide job seekers to take up self-employment.
Sc/ST JOB SEEKERS
Coaching-cum-guidance centres for scheduled castes and scheduled tribes
provide registration guidance, pre-submission guidance, confidence-building
training, pre-recruitment training and special coaching in typing and shorthand
to job-seekers.

SECOND NATIONAL COMMISSION ON LABOUR

The Report of Second National Commission on Labour (NCL), submitted to
the Government on 29 June 2002, has made wide-ranging recommendations
on various facets of labour viz., review of laws, social security, women and
child labour, skill development, labour administration and unorgarused
sectors, etc. The Ministry has already held intensive consultations and
interactions with the workers representatives, employers' organisations, experts
and professionals, etc. The Report of the Commission has been discussed in
various fora including the Consultative Committee meetings held on 7
February 2003 and 30 April 2003, the Standing Labour Committee (SLC)

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525

meeting held on 25 July 2003 and the Indian Labour Conference (ILC) meeting
held on 16-18 October 2003. These recommendations will be kept in view
while framing the labour policy on the concerned subjects.

21

Mass Communication

IN a country like India, mass communication plays an important role in

creating people's awareness about national policies and programmes by
providing information and education, besides healthy entertainment. It helps
people to be active partners in the nation-building endeavour. The Ministry
of Information and Broadcasting is responsible for development and endeavour.
The Ministry of Information and Broadcasting is responsible for development
and regulation of information, broadcasting and film sectors in the country.
The Information Sector includes the Print Media which is regulated by the
Press Council of India, in addition, the following media units of the
Government: Press Information Bureau, Photo Division, Registrar of
Newspapers for India, Research, Reference and Training Division, Directorate
of Publications Division, Directorate of Advertising and Visual Publicity,
Directorate of Field Publicity, Song and Drama Division. The Broadcasting
sector consists of Prasar Bharati formed by an Act of 1997 by subsuming
Doordarshan and All India Radio under it. In addition, the broadcasting sector
has about 100 private channels and cable network all over the country. The
Film making is in the non-government sector. The Government presence in
this sector consists of Films Division, Directorate of Film Festivals, National
Film Development Corporation, the Central Board of Film Certification,
National Film Archives of India, and Children's Film Society. The Government
has set-up two film and television institutes, one at Pune and the other at
Kolkata.
Tht> Policy of Government has so far allowed Indian Newspapers and
Periodicals to procure material like photographs, cartoons, crossword puzzles,
articles, features, etc., from foreign publications (content provider), for
publication in Indian publications, on the basis of syndication arrangements
having prior approval of the Ministry of Information and Broadcasting. The
matter has been reviewed and in June 2003, it was decided to authorise all
registered Indian Newspapers to enter into syndication arrangements with
foreign publications, under automatic approval route subject to fulfillment of
certain guidelines.
The Information and Broadcasting sector has been undergoing major
changes largely due to technological development during the last two decades.
In the 198Os, Doordarshan started using INSAT for nation-wide transmission
of its channels and a huge network of more than 1,000 terrestrial transmitters
has been created all over the country. In the nineties, private channels and
cable network came to cover many parts of the country. Developments in the
field of Information Technology have been revolutionising information collection
and dissemination.
Convergence is yet another technological revolution profoundly
influcncil)g the media scenario. Convergence is coming about in various

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527

branches of entertainment like film, TV and music industry. Satellites and optic
fibers are being used as infrastructure for transmitting information whether for
telecommunication or for computers or for broadcasting. At the receiving end
computers and other similar gadgets are being used as tools not only for
information processing but also for receiving information and broadcast
programmes.
Th~ government has brought the "Broadcasting Services and Cable
Services", within the ambit of TRAI__AcLl9.97:_ On Telephone Regulatory
Authority of India's interim recommendation, the implementation of
Conditional Access System (CAS) has been suspended in all the four metros
in February 2004.

PRASAR BHARATI:

I_)!/j

(I

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Prasar Bharati is the public servic~.~~adci!~t~Lin the_country, with ~!I}ndia

Radio and ?oordarSllan as its two constituents. It came into existence on
23 November 1997, with a mandate to organise and conduct public broadcasting
services to inform, educate and entertain people and to ensure balanced
development of broadcasting on radio and television.
The major objectives of the Prasar Bharati Corporation as laid out in the
Prasar Bharati Act, 1990 are as follows: i) Upholding the unity and integrity
of the country and the values enshrined in the Constitution; ii) Promoting
national integration; iii) Safeguarding citizen's rights to be informed on all
matters of public interest and presenting a fair and balanced flow of
information; iv) Paying special attention to the fields of education and spread
of literacy, agriculture, rural development, health and family welfare and
science and technology; v) Creating awareness about women's issues and
taking special steps to protect the interests of children, aged and other
vulnerable sections of the society; vi) Providing adequate coverage to the
diverse cultures, sports and games and youth affairs; vii) Promoting social
justice, safeguarding the rights of working classes, minorities and tribal
communities; and viii) Expanding broadcasting facilities and promoting
research and development in broadcast technology.
The Corporation, is governed by the Prasar Bharati Board, which
comprises a Chairman, an Executive Member(also known as Chief Executive
Officer), a Member (Finance), a Member (Personnel), Six part-time Members,
a representative of the Ministry of Information and Broadcasting and Directors
Gent'ral of All India Radio and Doordarshan as ex-officio Members. The
Chairman is a part-time member with a six year tenure. The Executive
Member, the Member (Finance) and the Member (Personnel) are whole-time,
members with a six-year tenure subject to the age limit of sixty two years. The
Prasar Bharati Board meets from time to time and deliberates on important
policy issues and 'gives directions to the executive for implementation of policy
guidelines. The headquarters of Prasar Bharati is in New Delhi.

ALL INDIA RADIO

Radio Broadcasting started in India in ~ early 1920's. The first programme

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India 2005

was broadcast in 1923 by the Radio club of Bombay. This was followed by
setting up Broadcasting Service in 1927 with two privately-owned transmitters
at Bombay and Calcutta. The Government took over the transmitters in 1930
an~rted operati'ng~m under the name g_Urulian...Bn!ad~~sting Seryjce.
It was changt'd to All India Radio (AIR) in 1936 and it also came to be known
as Akashvflni
fro.Jll.. ...l.957.
..

_._

_._.----

AIR was earlier an attached office of the Central Government under tht.
Ministry of Information and Broadcasting, which has now been brought under
Prasar Bharati, an autonomous statutory Corporation set-up under the Prasar
Bharati (Broadcasting Corporation of India) Act, 1990. The primary objective
of the Corporation as set out in Section 12 of the Prasar Bharati Act is, amongst
other things, to organise and conduct pulJlic hroadcasting seroices to inform,
educate lind entertain th/' puhlic and to ensun' a balanced de'lle/opment of
broadcastillg on Radio & TV
All India Radio headed by a Director General is assisted by one Engineerin-Chief on technical matters who, in turn, is assisted by four Chief Engineers.
In respect of programmes, the Director General is assisted by six Deputy
Director Generals, whilt' on administration, he is assisted by one Dy. Director
General. In respect of news, he is assisted by a Special Director General(News),
At the zonal level, there are five offices of Chief Engineers at Chennai,
Mumbai, Kolkata, Guwahati and Delhi. These Zonal Offices are responsible
for implementation of projects of AIR. Also there are six Regional Dy. Director
Generals at Mumbai (WR J & II), Chetmai, Kolkata and North East, Lucknow
and Delhi (North Region I & II) for guiding the stations in the respective
Tt'gion on Administration, planning and preparation of programmes. The
News Services Division is headed by the Special DG(News) and the External
Services Division is headed by the Director, ESD. At the field level the AIR
stations, which are 213 in numbers, are headed by the Programme and
Engineering Offices on yearly rotational basis except the capital stations which
are headed by Programme Officers.
All India Radio has at present 213 Radio Stations. These include 114
Regional Stations, 77 Local Radio ~~;tatiOnS,'14 Relay Centres, 3 exclusive
Vividh Bharati Centres and 5 Community Radio Stations.
Transmission is being done through 147 MW, 55 SW and 138 VHF (FM)
transmitters located in different parts of the country.
The broadcast coverage of air is 91.37 per cent by Area and 99.13 per
cent by population. All India Radio also broadcasts a National Channel.
To realise its thrust in divesting information to all and sundry AIR has
evolved over the year&, a three-tier system of broadcasting namely, national,
regional and local. National Channel broadcasts national programmes. The
regional and sub-regional stations provide the second tier of broadcasting
giving programmes in the regional languages and promoting regional cultural
facets.

Mass Communication

529

Local Radio is a more recent concept of broadcasting in India. Local Radio

stations were mostly set-up at district headquarter I towns. The programmes of
the local radio are area-specific. They are flexible and spontaneous enough to
enable the stations to function as the mouthpiece of the local community. There
are also community Radio Centres set-up recently at 5 places in the NorthEast India to serve the local tribal people. The Community Radio Centres are
yet to establish themselves in full operational mode.
NEWS SERVICES DIVISION
The News Services Division (NSD) of All India Radio disseminates news and
comments to listeners in India and abroad. NSD puts out 362 (non-daily news
bulletins not included) news bulletins daily from Delhi and its 45 Regional
News Units apart from a number of newsbased programmes. Out of these,
R4 ne\,:3 bulletins are broadcast in the home services from Delhi. The Regional
News Units (RNUs) put out 220 news bulletins daily in 66 languages/ dialects
including the news bulletins broadcast on FM-Rainbow and FM-Gold channels.
The News Services Division puts out 65 news headline bulletins daily on FMRainbow Channels from Delhi, Chennai, Kolkata, Bangalore and Lucknow. In
tilt' External Services, AIR broadcasts 65 news bulletins in 26 languages
(Indian and Foreign) for a total broadcast time of about 8 hours and 58
minutl's including seven news bulletins put out from four RNUs at Mumbai,
Kolkata, Hyderabad and Chennai.
During Parliament Sessions, Commentaries in Hindi and English,
reviewing the day's proceedings in both Houses are broadcast. Similarly,
rt'views of the proceedings of the State Legislatures, when they are in Session,
arE' broadcast in the respective Regional languages.
Newsreel Programmes were started from Delhi on 10 December 1955
both in English (Radio Newsreel) and Hindi (Samachar Darshan). Some RNUs
pul nut Radio Newsreel programme in their respective languages.
The format of the news bulletins in Hindi and English in the morning
dnd afternoon has been changed to make the bulletins listener-friendly.
'Morning News' in English and 'Samachar Prabhat' in Hindi now include a
discussion on major news stories carried by the newspapers. Certain changes
have been brought about in the morning Urdu news bulletin, called
'Khabamama'. The duration of the mid-day news bulletins in English and
Hindi has been increased to half-an-hour each to introduce composite news
programmes. The programme in English called 'Mid-Day News' goes on the
air from 1400 hrs. to 1430 hrs. The programme in Hindi, called 'Dopahar
Slll1lachar' is aired from 1430 to 1500 hrs. Both these bulletins include a 'look
al the newspapers'.
AIR 'News on Phone' service from Delhi provides the latest news
highlights in Hindi and English to listeners anywhere in the world on dialling
the specified numbers. The Service has been introduced in Tamil, Telugu and
Marathi from the Regional News Units at Chennai, Hyderabad and Mumbai

530

India 2005

respectively. It has also been introduced from the Regional News Unit of AIR:
Patna in Hindi. AIR news is also available on the Website www.newsonair.com.
The bulk of AIR news comes from its own Correspondents spread all
over the country. There are 90 regular Correspondents in India and seven
abroad at Colombo, Brussels, Dhaka, Dubai, Washington, Kathmandu and
Kabul. NSD has initiated action to engage 278 additional Part-Time
Correspondents (PTCs) at various district headquarters in the country taking
the total number of PTCs to 524 for better coverage from all over the country.
The PTes arc to meet the requirement of Doordarshan News also.
During the year, NSD introduced an additional ten-minute news bulletin
in the morning in Hindi from the RNU, Patna. The Maithili news bulletin,
which was being broadcast thrice a week from AIR, Darbhanga has been made
a daily news bulletin from 16 August 2003. A weekly news bulletin at 2030
hrs. on Sunday on developments in SAARC countries has also been started
in English from 4 January 2004. The 'News-an-Phone' service has been
introduced from two more stations - from 24 June 2003 from AIR Patna and
Mumbai stations from 15 August 2003. The NSD is going to start a 24-hour
news channel in near future.
AUDIENCE RESEARCH UNIT

The Audience Research Unit (ARU) of All India Radio caters to the public
broadcasting research and feedback requirements of the entire network of
Akashvani including the commercial broadcasting service/Vividh Bharati,
News Services, FM Channels, National Channel, etc.
Audience Research provides necessary inputs in programme planning,
formation of policies and effecting qualitative improvements in programmes.
The Unit also maintains ready reference data for the use of various wings
of the Directorate and individual stations, Programme Planning and Policy
and for knowing programme ratings for the commercial advertisers that serves
the marketing needs of the organisation. ARUs are sanctioned at 38 AJR
stations each headed by ARO, who is assisted by 2 investigators. The work
is guided and co-ordinated by the Director, Audience Research Unit in the
Directorate General: All India Radio, New Delhi. At the intennediate level
there are 6 Dy. Director of AR at four metros, Allahabad and Shillong and
one Joint Director to assist the Director at the DC: AIR.
FAMILY WELFARE

All AIR stations broadcast Family Welfare programmes in the regional

languages I dialects of our country. The expenditure on these Family Welfare
units are met by the Department of Family Welfare, Ministry of Health and
Family Welfare. The programmes were broadcast in general as well as special
audience programmes like, rural, women / children and general audience
programmes etc, in various fonnats like talk, discussions, features, quiz,
jingles, spots, short stories, drama, success-stories, phone-in programmes,
etc.

Mass Communication

531

Each AIR Station broadcast once-a-week "Health Forum" programme of

] 5 minutes duration. Doctors are invited for providing information to the
listeners on common diseases and ailments. Some stations had started "Radio
lessons on AIDS" with registered listeners. Special campaigns are being
launched to make awareness in general public about the special immunisation
programmes, and various camps being organised by the Government from
time to time were given full coverage. Each year Akashvani Annual Award
i~ given to the best programme on Family Welfare.

Commissioning of new staHons: During 20032004 , a FM radio station at

Raipur (Chhattisgarh) has been commissioned on 1 January 2003. Radio
Kashmir, Jammu, has been given uplinking facility on 1 January 2003. Radio
Kashmir, Kupwara in J&K has been commissioned on 25 May 2004 as Relay
Centre.
Akaslll1ani Annual Awards: Akashvani Annual Awards-2oo3 presentation
ceremony was held on 13 March 2004 in Mumbai. Similarly Public Service
Broadcasting awards and Gandhian Philosophy Awards were presented on
12 November 2003 in Delhi.
STAFF TRAINING INSTITUTE (PROGRAMME)

Staff Training Institute (Programme) established in 1948 at Delhi as an

attached office of DG, AIR, New Delhi was declared as a subordinate office
with effect from 1 January 1990. The Institute has been imparting in-service
training to various cadres of Programme staff of All India Radio and
Administrative staff of Akashvani and Doordarshan. An STI(P) established at
Cuttack, was shifted to Bhubaneswar with effect from 1 November 2002 with
five other Regional Training Institutes (P) at Hyderabad, Shillong, Ahmedabad,
Thiruvananthapuram and Lucknow to cater to the needs of the Radio Stations
in their respective regions.
For the first time in the history of AIR, STI(P) has opened its windows
for the outside agencies. Eight 'workshops have been organised for Indian
Airlines to train its cabin crew in Voice Culture. STI(p) have also conducted
a workshop on Voice Culture for the news anchors/presenters of Doordarshan.
Prasar Bharati and IGNOV have signed a MoV for the following courses:
(i) Post Graduate Diploma in Radio Broadcasting; (ii) Post Graduate Diploma

in Audio Programme Production Prasar Bharati w<?uld earn 50 per cent of

the course fee. VANI (Voice Articulation and Nurturing Initiative) Certificate
course has been launched from 1 October 2003 for comperes, announcers and
presenters likely to be booked on assignment basis.

AIR RESOURCES
In order to tap a vast reserve of resources in its two organisations (AIR &
Doordarshan) Prasar Bharati established AIR Resources as an independent
profit centre in 2001. AIR Resources provides consultancy and turnkey
solutions in the field of Radio and TV broadcasting to government and private
organisations. It is providing turnkey solutions to IGNOU in setting-up FM

532

India 2005

Gyan-Vani stations at 40 places. Infrastructure has been provided on rent to

IGNOU Gyan-Vani Service, Music B'cast Pvt. Ltd., Lucknow and Private FM
Broadcasters in Delhi, Chennai and Kolkata. AIR Resources has also undertaken
operation and maintenance of IGNOU Gyan-Vani stations. AIR Resources has
generated a revenue of about Rs 25 crore since its inception.

DIGITAL BROADCASTING
All India Radio has undertaken a massive digitalisation programme covering
both production and transmission. The analog equipment in many radio
stations has been replaced by state-of-the-art digital equipment.
Computerised recording, editing and play back system has already been
provided at 76 AIR stations and is planned to be provided at remaining
stations. A New Broadcasting House equipped with a completely digital
studio set-up has been provided at Delhi for News, External services and Delhi
channels of AIR. In the area of Interactive Radio Service AIR has news-onphone service available on telephone number 1258 and 1259 at Delhi, Mumbai,
Chennai, Hyderabad and Patna. The service is being extended shortly to
another 11 stations. Another interactive service, Radio-on-Demand is operational
at Delhi, Kolkata, Chennai and Mumbai. AIR in collaboration with the World
Space is broadcasting clear quality programmes to the listeners in South East
Asia and South Asia.

EXTERNAL SERVICES DIVISION

As an electronic ambassador, the External Services Division (ESD) of AIR has
been a vital link between India and rest of the World, specially with those
countries where the interests of India are intertwined because of Indian
population staying in those countries. External Services Division of AIR
broadcasts in 16 foreign and 11 Indian languages for approx. 72 hours in a
day covering mOTe than 100 countries. The broadcasts follow a composite
pattern comprising of news bulletins, commentaries on Current Events,
Review of the Indian Press, etc., besides programmes on art, culture, music,
entertainment and achievements of India in different fields.
The ESD broadcasts in Arabic, Baluchi, Burmese, Chinese, Dari, French,
Indonesian, Nepali, Persian, Pushtu, Russian, Sinhala, Swahili, Thai, Tibetan
and English (GOS). And itt Indian languages ; Hindi, Tamil, Telugu, Bengali,
Gujarati, Punjabi, Sindhi, Urdu, Saraiki, Malayalam and Kannada.
SO was the proud recipient of the ABU Prize commendation for its
Documentary entitled "Bridging Distance" in the year 2003. The programme
focused on the pioneer work being done by lIT, Kanpur, in linking the villages,
which are still bereft of electricity and power, through internet on an
innovative Infothela. It also seeks to focus on remote villages in South of India
which are becoming info savvy.

NATIONAL CHANNEL
The National Channel of All India Radio, commissioned on 18 May 1988 is

Mass Communication

533

essentially a night service starting from 6.50 P.M. in the evening till 6.10 A.M.
of the following morning, covering 76 per cent of the country's population.
It provides for programmes of nation-wide intertest and relevance including
national debate on vital issues.
The spoken-word programmes are b'cast in Hindi, English and Urdu
Languages. Hourly news bulletins in Hindi and English provide latest
information to listners throughout the night besides broadcast of regional and
devotional music. 'Basti Basti Nagar Nagar' is field based featurised programme
covering places of historical, socio-cultural and tourist importance all over
India. During the holy month of Ramzan a special programme 'Sahargahi'
is also broadcast daily in tht' early morning. Whenever the parliament is in
session, National Channel broadcasts recordings of 'Question Hour' in Lok
Sabha.' Rajya Sabha.
Three 60 minutes each live phone-in programmes are also broadcast
every month. 'Hello Doctor' is related to health problems, another one is
covering general social issues and public grievances' and the third one is
purely entertainment programme based on film music. 'Sarhad', another
popular film music programme started at time of the KargH conflict is based
on messages and requests received from and for the forces guarding the
borders.

TRANSCRIPTION AND PROGRAMME EXCHANGE SERVICE

Transcription and Programme Exchange Service of All India Radio is consisting
of the Central Archives, the Transcription Unit, the Central Tape Bank and
the Foreign and Internal Programme Exchange Unit.
The Central Archives of All India Radio storing 25,000 hours of valuable
rare recordings has undertaken a CD Project to transfer all Analogue tape
flcordings into digital medium, all formats of programmes viz., Music
(Classical and Light), Spoken Word (Talks/Interviews, Features, Plays,
Commentaries, Memorial Lectures, etc.) and Speeches of Presidents and Prime
Ministers of India and other VIPs having historic and aesthetic importance.
The Transcription Unit has to compile transcripts of the recordings of the
speeches delivered by the President and Prime Minister of India for future
reference. The Programme Exchange Unit is to receive, review and redistribute
the best production among internal broadcasting network stations. Similarly,
various programmes received from foreign broadcasting organisations are
circulated among AIR stations after screening.
In order to open the gate of access for the public to archival possession
of AIR, Prasar Bharati started releasing audio CDs and audio cassettes.

CENTRAL MONITORING SERVICES

The Central Monitoring Services (CMS) has been worl~ing as an independent
media unit following its de-linking from DG,AIR (Prasar Bharati) since 1 April
2003. It is engaged in the task of monitoring news and news based
programmes of important foreign Radio and Television networks and some

India 2005

534

Indian TV Channels. The CMS brings out a daily report based on the material
monitored each day. It also brings out two weekly reports - a Weekly
Analytical Report giving an analysis of the important news of the week and
a Weekly Spedal Report on Kashmir based on the anti-India propaganda by
Pakistan's Radio and Television networks on the Kashmir Issue. These reports
are sent to senior officers in various departments/ministries of Government
of India, to keep them abreast of the latest significant and sensitive
developments. In addition to these reports eMS also sends a daily early
morning report to National Security Council Secretariat. The CMS has two
field units - one at Jammu and the other at Kolkata.
MARKETING DIVISION
In the recent years, Prasar Bharati while fulfilling its mandate as a Public
Service Broadcaster has also been making concrete efforts to augment its
revenue generation by way of considerable and aggressive marketing of its
in-house programml's and also producing customised programmes. Settingup of Marketing Divisions at Mumbai, Chennai, Bangalore, Hyderabad, Delhi
and Kolkata is a step in this direction.
Formally inaugurated on 14 April 2003, Markt:'ting Division, Delhi is
providing its client:; i1 hilssll' free and single window booking for all the
channels of All India RilLiio and Doordarshan. With AIR and Doordarshan's
vast network and f('ach M.uketing Division helps the clients reach the length
and breadth of the country
With tlll' opening up of Marketing Division, All India Radio has been
able to cross its targets by earning a revenue of Rs 141 crore during the
financial year 2003-2004.
DOORDARSHAN
Doordnrshafl (DD), the national television service of India is one of the largest
terrestrial networks in the world. Television broadcasting assumes tremendous
importance in a developing country like India, which has low literacy rate
and has varied cultures and multiple languages. The government has
recognised that the audio-visual medium is one of the most efficient and
effectivt.' ways to disseminate information and educate masses. The country
today has both the terrestrial and satellite broadcasting services.

The first telecast in India originated from a makeshift studio in the

Akashvani Bhawan, New Delhi on 15 September 1959. A 500 Watt transmitter
radiu'sof25 km around Delhi. The regular service
carried the signal
with a news bulletin became operational in 1965. After seven years, The
Second Television centre commenced service in Bombay (Mumbai). By 1975
TV service was available in Kolkata (Calcutta), Chennai (Madras), Srinagar,
Amritsar and Lucknow.

wffiUn'a

The first experiment with satellite technology in India was conducted

in 1975-76 under the programme Satellite Instructional Television Ex riment
(SITE). This was incidentally, the first a empt in the worl to use sa

.--'_

Mass Communication

535

broadcasting for social education. Colour transmission was introduced during

the Asian Games held in New Delhi in 1982, Doordarshan then proceeded
to install transmitters nationwide rapidly for terrestrial broadcasting. The year
1982 also witnessed the introduction of a regular satellite link between Delhi
and other transmitters, heralding the arrival of the National Network.
SATELLITE TELEVISION
Following the Gulf War, satellite channels began to sneak into Indian homes
with a vark>ty of news and entertainment programmes. DO responded to the
satellite 1V challenge by launching the entertainment oriented Metro Channel
in 1984 and increasing entertainment content on the National network as well.
This fuelled the purchase of 1V sets in rural areas and upgradation to colour
TV in urban areas. The initial success of the entertainment programmes on
Doordarshan had a snowball effect and software producers emerged to cater
to the programming boom almost overnight. Talent came from the film
industry, advertising world and journalism to create a huge and buoyant
entertainment industry in India, the seeds of which were sown by Doordarshan.
DOORDARSHAN TODAY
Doordarshan presently operates 25 channels. DO National and DO News are
available both through terrestrial as well as satellite mode. DO Sports, DO
Bharati, DO India (Formerly DD World), DD Gyan Oarshan and 11 regional
channels are available in the satellite mode.
Doordarshan has a three-tier programme service - National, Regional
and Local. The emphasis in the National Programmes is on events and issues
of interest to the entire nation. These programmes include news, magazine
programmes and documentaries science, art and culture, environment, social
issues, serials, music, dance, drama and feature films. The regional programmes
are beamed on DO National at specific times and also on the Regional
Language Satellite Channels, catering to the interests of a particular state, in
the language and idiom of that region. The local programmes are area specific
and cover local issues featuring local people.
DO NATIONAL
National programmes, mainly aimed at promoting national integration and
inculcating a sense of unity and fraternity are tel~cast on this channel, which
is the Number One Channel in the country in terms of absolute Viewership.
The main face of public service broadcasting, DO National blends a healthy.
mix of entertainment, information and education. The service is available in
terrestrial mode from 5.30 a.m. to 12 midnight. In the satellite mode, DO
National is available round-the-clock. All major National events like Republic
Day Parade, Independence Day Celebrations, National Award Presentation
Ceremonies, President and Prime Minister's address to the Nation, President's
address to the joint session of Parliament, important Parliamentary debates,
Railway and General Budget presentation, Question Hour in Lok Sabha and
Rajya Sabha, Election results and analysis, swearing in ceremonies, President

536

India 2005

and Prime Minister's visits abroad and visits of important foreign dignitaries
to India are covered live on DO National. Important major sports events like
Olympics, Asian Games, Cricket Test and One Day International involving
India, and other important sporting encounters are also telecast live.
DO NEWS
DD News and Current Affairs Division is the content provider to 00-1, DO
News and DO India. The Nt'ws Division puts out 10 hours 35 minutes of
live news bulletins daily in Hindi / English on DO News channel. Stock ticker,
News scroll of headlines, templates of 2-minute duration are also tei(!cast
round-the-clock by the News and Current Affairs Division on DO News
Channel. It also broadcasts two major news bulletins in English/Hindi on DOI and a regional news bulletin in the Delhi transmission on daily basis. A 10minute Urdu bulletin is broadcast daily on DO News. A special bulletin is
telecast every Sunday for hearing impaired. A 5-minute Sanskrit bulletin is
also telecast daily on DO News and also carried on DO-I. The News Division
in Delhi is supported by 24 regional news units, each of which are telecasting
at least one news bulletin daily in regional languages. Besides, special news
bulletins on Metro News, busim'ss, sports are telecast daily. Current Affairs
programmes on crime, art and culture, world, personality, health are also
broadcast every week on DO News.
DOORDARSHAN REGIONAL CHANNEL
To provide additional software in the major languages of the country, some
of which are spoken by more than 50 million people, Doordarshan has 11
regional language Satellite channels viz, DO Kashir, DO Punjabi, DO North
East, DO BangIa, DO Oriya, DO Gujarati, DO Sahyadri (Marathi), DO
Saptagiri (Telugu), DD Chandana (Kannada), DD Podhigai (Tamil), DO
Keralm (Malayalam) and 8 regional state networks such as Rajasthan, Uttar
Pradesh, Madhya Pradesh, Bihar, Haryana, Jharkhand, Chhattisgarh and
Himachal Pradesh. These regional channels broadcast a wide spectrum of
programmes covering developmental news, serials, documentaries, news and
current affairs programmes to communicate with the people in their own
language. The programmes on these channels include regional service, which
is available terrestrially in the concerrned state and additional programme
which could be received in the satellite mode. These programmes are carried
on satellite which have foot-print over the entire country and the Indian subcontinent. Tht' regional language programmes could be watched by people,
no matter where they live.
DD SPORTS
The 1982 Asian Gamt.'S hosted by India in Delhi was a turning point in the
annals of Doordarshan. During that year DD made rapid strides in its
network. DO again made history in March 1999, when the Prime Ministef
lunched an 'Indian Satellite Sports' Channel'. The original 6-hour daily
duration was increased to 12 hOUfS from 25 April 1999. From 1 June 2000

Mas" Communication

537

the channel is on air round-the-clock. Encrypted from 15 September 2000 it has

now become a free-to-air channel since 15 July 2003. It is available on PAS4 Satellite, having footprints in 34 countries of Asia, Africa and Europe. All
cricket matches organised by the Board of Control for Cricket in India (BCc!)
are shown live. Along with cricket DO Sports also promotes other sporting
activities like football, hockey, tennis, badminton, etc., with special emphasis
on promoting Indian sports like Kho Kho and Kabaddi. Doordarshan has entered
into an agreement with 16 National Sports Organisations/Federations, including
BCC!, Indiall Hockey Federation, All India Tennis Association for smooth and
planned coverage of events organised by them.
DD BHARATI

An 'Edutainment' Channel launched by Prasar Bharati on 26 January 2002,

is available on PAS - 10 (SATELLITE MODE) to cater to the needs of public

in respect of Information, Education and Entertainment in tune with Traditions,

Values and Culture of our country. The main focus of DD Bharati is on quality
Programming of Health, Children Art and Culture. It is mandatory channel
to be carried by all Cable TV operators in Hindi speaking region of the
country.
DO Bharati has a huge variety of Programmes from various sources like
DD-Archives, Central Commissioning Unit of Ooordarshan Regional Kendras,
CPC, IGNOU, IGNCA, CEC (UGC) Sahitya Akademi, K.Y. Sangathan, etc.
Live Coverage is provided for various music festivals, celebrations,
cultural functions and other events.
In the genre of health, children and art and culture DO Bharati has
recently acquired a good number of special software got made by outside
producers of repute under Commissioned Category.
DD INDIA

Doordarshan opened its windows to the world by launching its international

channel on 14 March 1995. The programming offers international viewers an
update on the Indian social, cultural, political and economic scene. The
channel carries five news bulletins, features on topical events, entertainment
programmes, feature films, music and dance, besides a feature film everyday.
In addition to English and Hindi, programmes in Urdu, Punjabi, Telugu,
Tamil, Kannada, Malayalrn, Gujarati and Marathi form an essential ingredient
of international channels. Essentially a public service broadcasting channel,
the objective of DO India is to build bridges of communication with Indians
living abroad and to show-case the real India, its culture, its values its
tradition, its modernity, its diversity, its agony and its ecstasy, to the entire
world.
GYANOARSHAN
In an endeavor to make a quality education accessible to all, Ooordarshan

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India 2005

introduced on 26 January 2002 a satellite educational channel - Gyandarshan.

Round the clock in a year the channel beams programmes acquired from UGC,
National Council for Educational Research and Training (NCERT), Central
Institute for Educational Technology (CIET), State Institute of Research and
Training (SIERT) and IGNOU.
Programmes are also aired from different fITs for the benefit of students
pursuing studies in Technology and Engineering. A unique feature of the
channel is the high degree of interactivity as through the "Phone-in"
programme students of all categories can seek clarifications.
DOORDARSHAN COMMERCIAL SERVICE
The commercial advertisements were introduced on Doordarshan from )
January 1976. Doordarshan telecasts advertisements for goods and services,
but the acceptance is governed by a comprehensive advertising code.
Advertisements for cigarettes, tobacco products, liquor, wine and other
intoxicants are not accepted. Advertisements in Hindi and English are
approved by Commercial Service, New Delhi for telecast on different channels
on Doordarshan while advertisement in regional languages are approved by
Kendra of that regional language. Bookings are normally accepted through
registered / accredited agencies. Direct bookings of Government Departments
are also accepted.
,\

DEVELOPMENT COMMUNICATION DIVISION

i)

Development Communication Division, Doordarshan established in 2001 has

given exemplary results in revenue generation, revival of in-house prodUctions,
capacity building and in establishing the commercial viability / self-sufficiency
of public service broadcasting.
Development Communication Division (OCD) is mandated to market
Doordarshan air time and production capabilities to all Government Ministries
and Public Sector Undertakings. OCD functions as a single window for
marketing and implementation of business in all DO channels and countrywide
Kendras.
NARROWCASTING
This buzzword in broadcasting of late has been to cover smaller areas with
location specific programmes whereby the intimacy between the medium and
the viewers gets stronger. In this regard Doordarshan has taken initiative of
Narrowcasting to address local specific issues related to the lifestyle of the
people residing in the coverage areas.
Narrowcasting by Doordarshan, which started in 2000, is at present
covering 12 LPTs where programmes of local genre are being telecast weekly
once/twice. The content of these programmes has been worked out by some
formative research so that it becomes meaningful for ensuring the socioeconomic development of the coverage region. A study done by the Audience
Research Unit, Doordarshan has shown that narrowcasting has been very well

Mass Communication

539

received by the people of the coverage zone and it has also helped them in
implementing some of the latest agricultural techniques imparted through
programmes.

NEW INITIATIVES
DIGITAL TERRESTRIAL TELEVISION BROADCASTING

With the setting-up of earth stations at Mumbai, Hyderabad, Bangalore, Patna,

Jalandhar, Chennai, Trivandrum, Ahmedabad, Kolkata, Bhubaneswar, Shillong
and Aizwal, 19 of the 25 Doordarshan channels are digital. Earth stations at
Guwahati, Bhopal, Jaipur, Lucknow, Shimla are in the process of digitalisation
and once this process is completed all the 25 Doordarshan satellite channels
would become digital.
The terrestrial transmission of Doordarshan is in analogue mode. The
switching from analogue to digital transmission is necessary in view of the
similar developments taking place in developed countries as also to provide
an alternative to cable network service specially in rural areas and small towns
where cable networks are not visible. Some of the digital channels can also
be used for INTERNET and e-mail through television.
During thf:' Tenth Plan period, all the sixteen major Kendras would be
fully digitalised and the remaining Kendras would be digitalised atleast to

the extent of 50 percent.

Apart from resources for Prasar Bharati to replace all analogue transmitters
by digital ones, the public will also have to acquire digital TV sets or settop boxes to be attached to the existing TV sets for receiving digital signals.
This would require substantial investment by TV homes. As it may not be
possible for most of the consumers to invest this amount, for some time, the
digital transmitters will have to function in simulcast mode i.e., relay of both
digital and analogue signals so that consumers not having digital TV sets or
set-top boxes are not deprived of Doordarshan services. This is the policy
adopted in many developed countries.
Direct-to-home broadcast: DTH TV service is a service for direct distribution
of television programmes / channels by satellite to the receiving subscriber
homes in high frequency Ku-band via a small dish and a decoder / set-top box.
It is a superior technology, which offers an alten;tative for distribution and

reception of television programmes to the programme providers as well as

to the consumers. DTH service is governed by certain safeguards which take
care of the issues concerning national security, morality and vertical monopoly
in distribution.
KU-Band 1i'~mi"lon : Unlike the C-Band transmission which requires a
large dish antenna to receive the signals, Ku-Band transmission requires a
s'l1all antenna for reception. Prasar Bharati considers Ku-Band transmission
as the most cost-effective method to cover the fringe areas and sparsely
populated regions of the country. Experimental transmission in Ku-Band has

India 2005

540

begun from a satellite uplinking facility at Todapur in South Delhi. The Tenth
Plan proposal for expansion of Ku-Band transmission includes an4tPl0unt of
Rs 500 crore.
Doordarshan Archives : With the realease of 5 video and audio CDs of its
exclusive recordings, Doordarshan Archives was formally launched on 9
January 2003. This also marked the year-long commemoration of "100 years
(If Recorded Music in India".
Doordarshan Archives is a treasure house of many memorable
performances of the great artistes who havt contributed to India's rich music
and dance heritage. This is an endeavour to bring some of the exquisite
performances of enduring beauty to reach out to a large audience.
Doordarshan Awards: Doordarshan Annual Awards Scheme came into being
with the sole purpose to promote professionalism, and competitive work
culture for in-house productions. The Annual Award Scheme has not only
given new dimension to the Doordarshan in-house production culture and
inter-Kendra competitiveness but served as a star revenue earner.
The most welcome affect of DD Annual Award Scheme has been a
sudden surge in competitiveness inside the organisation due to recognition
of excellence and its appreciation reSUlting in better in-house production of
software. These programmes are telecast on DD National, DO Bharati and
DO India.
This scheme has also given a new dimension to the inter-Kendra
competitiveness and North-East participation in a big way. The kaleidoscope
of software from all over India in its varied ethnicities and culture is
accompling the national goal of unity in diversity.

PRESS AND PRINT MEDIA

REGISTRAR OF NEWSPAPERS FOR INDIA
The Office of the Registrar of Newspapers for India (RNI) came into being
on 1 July 1956, on the recommendation of the First Press Commission in 1953
and by amending the Press and the recommendation of the First Press
Commission in 1953 and by amending the Press and Registration of Books
Act, 1867. The Registrar of Newspapers commonly known, as Press Registrar
is required, inter alia to submit an Annual Report to the Government of the
status of newspapers before 30 September every year. The period, for which
the annual statements were to be furnished, was changed from the calendar
year to financial year in 2002. Hence the Annual Report has been compiled
on financial year basis. According to the report submitted by the Press
Registrar for the year 2002-03, the total number of registered newspapers/
periodicals was 55,780 as on 31 March 2003. There were 5,966 dailies, 358
tri/bi-weeklies, 19,631 weeklies, 7,356 fortnightly, 16,109 monthlies, 3,919
quarterlies, 516 annuals and 1,925 of other periodicity.
Newspapers were registered in English, 18 principal languages listed in

Mass Communication

541

the Eighth Schedule of the Constitution and 4 dialects listed under 'other

languages'. Kashmiri is the only scheduled language that did not have a daily
newspaper. OriS~ had the distinction of publishing newspapers, etc., in the
]Rl'tinci.'!LJanguages. Delhi came next with publications in 11 out of 18
principal languages followed by Maharashtra (10), Kerala (9), Karnataka (9)
ilnd West Bengal (8). Newspapers were also registered in 82 other languages
including dialects and a few foreign languages.
The number of nl>wspapers reported published (submitted Annual
Statement) was 7,156. The total circulation of newspapers was 14,20,05,543.
The largest number of newspapers and periodicals registered in any Indian
language is in Hindi (22,067). The second largest number of newspapers and
periodicals registered in any language is in English (8,141). The State with
the largl!st number of registered newspapers is Uttar Pradesh (9,071). The State
with the second largest number of registered newspapers is Delhi (7,491).
The largest claimed circulation of important Dailies: The Hindustan
Tinll'S, English, Delhi [Printed from 8 centres] (11,12,160 copies). The Second

largest circulated Daily: The Hindu, English, Chennai [Printed from eleven
centres] (9,22,407 copies). The third largest circulated Daily: The Times of
llUiia, English, Delhi (8,20,289 copies). The largest circulated multi-edition
Daily: Dainik Bhaskar, (18 editions), Hindi (17,17,294 copies). The second
largest circulated multi-edition Daily: The Times of India (Eight editions),
English, (13,94,646 copies). The largest circulated periodical: Saras Salil,
(Fortnightly) Hindi, Delhi (10,49,362). The total circulation of newspapers
showed an increase of 23.21 per cent from 11,52,53,948 copies in 2001 to
14,20,05,543 copies in 2002-03.
TOTAL NUMBER OF REGISTERED NEWSPAPERS IN 2002"{)3.
(LANGUAGE AND PERIODICITY-WISE)
Llnguages

Dailies

[:nglish

437

Hindi

Tri/Bi- Weeklies
weeklies

37

10116

Monthlies
Fort
nightlies

Quarterlies Himonthlies/ Annuals Total

Halt'yearlies ,
etc.

7119

3255

1401

925

211

8141

4122
69

775

251

45

22067

13

10

513

205

1
25,

235
2869

2645

127

10802

3300

3
15

80
657

39

Ilengali

20
107

593

Cujarati

170

14

1197

241

754
658

72

54

15

2421

57

27

2042

0
0

12

1578

A'''amese

Kannada

396

444

315

793

Kashmiri

0
1

231

169

866

67
7

40

11

249

647

134

54

127

3138

18

76

94

23

Konkani
M'llayalam
Manipuri

16

190
7

Marathi

433

21

1473

Nepali

26

13

Oriya

80

179

100

317

51

800

India 2005

542
Punjabi

Sanskrit
Sind hi

107

15

379

105

294

36

19

956

18

18

60

13

40

11

39

10

115

Tamil

373

43

422

262

1129

40

27

II

2304

Telugu

210

293

244

671

34

18

1476

Urdu

550

21

1370

387

554

79

19

2983

Bilingual

92

21

758

426

149]

423

]80

46

3437

Multilingual

20

130

77

272

72

38

14

628

Others

57

15

85

32

131

54

15

5966

358

19631

7356 16]09

3919

1925

Total

390
516

55780

PRESS INFORMATION BUREAU

The Press Information Bureau (PIB) is the nodal agency of the Central
Government to disseminate information to the print and electronic media on
government policies, programme initiatives and achievements. The Bureau
has a total of 43 Regional and Branch Offices and Information Centres.
Information is disseminated through Press Releases, Press Notes, Feature
Articles, Backgrounders, Press Briefings, Photographs, Press Conferences,
Interviews, Database available on Bureau's website, Press tours, etc. The
information material released in English, Hindi, Urdu and 13 other regional
languages reaches about 8,400 newspapers and media organisations.
At its headquarters in Delhi, the Bureau has officers who are exclusively
attached to different Ministries and Departments to assist them in dissemination
of information and giving the feedback on the people's reaction, as reflected
in the Media towards Government policies and programmes. As part of the
Special Services, the Feedback Cell in the PIB prepares a daily digest and
special digests based on news stories editorials from national regional dailies
and periodicals. Feedback is also received regularly from the Regional and
Branch Offices. The Feature Unit of the Special Services of the Bureau provides
backgrounders, updates, features and graphiCS. These are circulated in the
national network and also sent to the Regional and Branch Offices for
translation and circulation to the local press. In addition, the Regional and
Branch offices also issue originating feature articles. Under the e-Clipping
Project, till December 2003, about 80,000 Press Oippings have been digitalised
in the Asset Management Programme 'CUMULUS'. The Press Clippings Unit
is catering to the requirements of various Ministries. A centralised press
clipping service has been started which enables cataloging of the clippings
with key words search mechanism. At present about 70,000 clippings have
been catalogued.
PIB arranges photo coverage of Government activities and the photographs
are supplied to dailies and periodicals published in English and other Indian
languages all over the country. During April 2003 to March 2004, the Bureau
covered 1,495 assignments, released 1,962 photos and distributed 1,68,616
photo prints to the Regional and Branch offices and the Press.

Ma~s

Communication

543

The PIB's home page at www.pib.nic.in makes a\'ailable publicity material

in Hindi, English and Urdu. With increasing demand an option for highresolution photographs for print media has been provided for release bye-mail.
There are now about 4,200 subscribers for PIB mail services. The website has
been re-designed from 1 December 2003 all new contents are put on dynamically
searchable mode.
PIB is connected to 29 regional centres by video conferencing system
through NIC tf) enable media persons at regional centres to participate in press
conferences in New Delhi and in other parts of the country.
PIB provides accreditation to Media representatives including foreign
media at Delhi. This facilitates them to have an easy access to information
from the Government sources. About 1,047 correspondents and 409 cameramen
arl' accredited, besides 131 technicians and 63 Editors and Media critics. PIB
also grants more than 500 temporary accreditations every year to foreign
media persons who visit India for a short period.
NEWS AGENCIES
PRESS TRUST OF INDIA

India's largest news agency, Press Trust of India (ITJ) is a non-profit sharing
cooperative owned by the country's newspapers with a mandate to provide
efficient and unbiased news to all subscribers. Founded on 27 August 1947,
I'TI began functioning from 1 February 194?
PTI offers its news services in English and Hindi languages. Bhasha is
the Hindi language news service of the agency. PTJ subscribers include SOO
newspapers in India and scores abroad. All major TV/radio channels in India
and several abroad, including BBC in London, receive PTI service.
The modes of delivery of PTI's services to the subscribers include satellite
transmission and PTI now has its own satellite delivery system through a
transponder on an INSAT satellite for reaching its services directly to
subscribers anywhere in the country. While delivery by the old land lines
continue, increasingly more and more subscribers are opting for satellite
reception. Photo service is delivered by satellite as well as accessed by dialup. PTI is on the Internet too. The agency's news ~rvices are showcased on
the agency's website http://www.ptinews.com which is also being harnessed
as a delivery mechanism.
has also tied-up with World Space for delivery
of its services by radio reception.

With a staff of about 1,300 including 350 journalists, PTI has 80 bureaux
across the country ~d foreign correspondents in major cities of the world
including Beijing, Bangkok, Colombo, Dhaka, Dubai, Islamabad, Kathmandu,
London, Moscow, New York and Washington. In addition, about 350 stringers
contribute to the news file at home while 20 part-time correspondents bring
news from I'e8t of the world.

544

India 2005

Besides the news and photo services, the other services of the agency
include mailer packages of Feature, Science service, Economic service and
Data India, and screen-based services as News-scan and Stockscan. A
television wing, PTI-TV, does features and undertakes corporate documentaries
on assignment basis.
PTI has arrangements with the Associated Press (AP) and A_gence !j:ance
for distribution of their news in India. AP's photo and
""'Ji1ternational commercial information are also distributed in the country
through IT!.
Pre~'_lAF:P)

PTI is a partner in Asia Pulse International, a Singapore-registered

company, formed by PTI and five other Asian media organisations to provide
an on-line data bank on economic developments and busim'ss opportunities
in Asian countries. PTI is also a participant in Asianet, a cooperative
arrangement among 12 Ol'WS agencies of th( Asia-Pacific region, for distribution
of corporate and government press releases.
PTI is a leading participant in thp Pool of News Agencies of the NonAligned Countries and the Organisation of Asia-Pacific News Agencies. It also
has bilateral news exchange arrangements with several news agencies
belonging to the countries of Asia, Africa, Europe and Latin America.
UNITED NEWS OF INDIA
United News of India (UNl) was incorporated under the Companies Act,
1956 on 19 December 1959 and started functioning effective from 21 March
1961.
In the past four decades, UNI has grown into a major news organisation
in India and, with its vibrant presence, provided the much-nt>eded spirit of
competition in the vital area of news gathering and dessemination. UNI's
innovative spirit was evident when it became the first news agency in India
to launch a full-fledged Hindi wire service 'UNIVARTA' in 1982 and a Photo
Service and a Graphics Service in the same decade. In the early 90s, it
launched the first-ever wire service in URDU.
The news agency today has about 779 subscribers. With 71 offices in
India and an employt>e strength of more than 1,000 persons, including 335
journalists, UNI has its own correspondents in all major cities of the country.
It also has about 320 stringers who report from important towns. This
countrywide network has enabled UN1 to provide coverage of events from
all the regions of the country. Further, UNI has Correspondents in Washington,
New York, London, Moscow, Dubai, Islamabad, Kathmandu, Colombo,
Dhaka, Singapore, Toronto (Canada), Sydney (Australia) and Bangkok
(Thailand ).
UNI distributes world news from Reuters, the world's largest information
company. Besides, it has news exchange arrangements with Xinhua of China,
RIA Novosti of Russia, UNB of Bangladesh, Anadolu of Turkey, WAM of

Mass Communication

545

the United Arab Emirates, GNA of Bahrain, KUNA of Kuwait, ONA of Oman
and QNA of Qatar.
UNI's Photo Service distributes about 70 pictures every day, including
photographs from AFP, the French News Agency. Its Graphics Service
distributes five or six graphics every day.
In the 40-0dd years of its existence, UNI has acquired an enviable
reputation for its fast and accurate coverage of news events. As part of its
modernisation clrive, 51 of its branches have been computerised and VSAT
has been installed at 44 branches. This will bring news and pictures to the
subscribers much faster. The VSAT network provides UNI with the capability
to transmit video if and when it decides to diversify into an audio-visual
media.
UNI is the first Indian news agency to deliver its entire news services
in English and Hindi as well as its Photo Service through the Internet.

Subscribers can download the stories and pictures from the UNI and
UNIVARTA websites at www.uniindia.com and www.univarta.com
respectively.
NON-ALIGNED NEWS AGENCIES

POO~A#\(AP)

The Non-aligned News Agencies Pool NANAP is an arrangement for

exchange of news among the news agencies of non-aligned countries who
were for long victims of imbalances and bias in the flow of news. The Pool
came into existence in 19Z6...with Indja as its first Chairman during 1976-79.
The Pool isa-world-wide operation embracing four-contUlents-:-Asia, Europe,
Africa and Latin America. The Pool news is exchanged in four languages English, French, Spanish and Arabic.
Pool activities are coordinated by an elected body known as the
Coordinating Committee with a Chairman as its head. The Chairmanship is
co-terminus with the tenure of the Coordinating Committee and goes by
rotation. The Chairman and members of the Coordinating Committee are
elected by a General Conference, the top decision-making organ of the Pool.
The members of the Coordinating Committee are elected on the basis of
rebional representation, continuity, active participation and rotation.

Six General Conferences, and 17 regular and one special meetings of the
Coordinating Committee hollve taken place since the inCeption of the Pool. The
last General Conference of the Pool was held in Tehran in June 1992, when
the Iranian news agency IRNA assumed the Chaii'lnanShip of the Pool from
ANGOP of Angola. The latt!st meeting of pool has been a special meeting
of the coordinating Committee held in Belgrade in September 2000 hosted
by the Yugoslav news agency, Tanjug.

The countries represented on the Coordinating Committee at present are

India, Indonesia, Vietnam, North Korea, Kuwait, Syria, Mongolia, Bahrain,
Afghanistan, Lebanon and Oman from Asia; Angola. Algeria, Burkina Paso,

546

India 2005

Congo, Ethiopia, Egypt, Ghana, Guinea-Bissau, Morocco, Mozambique, Namibia,

Senegal, Sudan, Tanzania, Tunisia and Zambia from Africa; Yugoslavia from
Europe; and Bolivia, Cuba, Ecuador, Mexico, Peru, Surinam and Venezuela from
Latin America.
India has played a vital role in the creation and expansion of the Pool,
including being its first Chairman. India News Pool Desk is operated by Press
Trust of India. The agency receives news copy from Pool Partners and in turn
contributes Indian news into the exchange arrangement on a daily basis. The
incoming news traffic from Pool member agencies into PTI is in the range
of 20,0()() to 25,000 words per day with about a tenth of the matter received
being used. PTI's contribution into the network is between 8,000 to 10,000
words per day. The news is exchanged through a network of E-mail, satellitl'
and terrestrial communication links with the news agencies of Bangladesh,
Bahrain, Cuba, Cyprus, Indonesia,Iran, Kuwait, MalaYSia, Mangolia, Morocco,
Nepal, Namibia, Pakistan, Syria, Vietnam and Zambia.
As part of tht' News Pool operation, the Indian Institute of Mass
Communication, New Delhi, which is recognised as a premier institute for
training in journalism in the Non-Aligned countries, has been offering a
regular diploma course in development journalism. The five-month twice-a
-year course is popular with journalists of both the print and the electronic
media belonging to the non-aligned countries.
PRESS COUNCIL OF INDIA
The Press Council of India has been established under an Act of Parliament
for the purpose of preserving the freedom of the press and of maintaining
and improving the standards of newspapers and news agencies in India. TIlt'
Chairman of tht' Council is by convention, a retired judge of the Supreme
Court of India. The Council has 28 members - 20 from the newspaper world,
five are Members of Parliament (three nominated by the Speaker of the Lok
Sabha and two by the Chairman of the Rajya Sabha) and of the remaining
three, one each is nominated by the Sahitya Akaderni, the Bar Council of India
and the University Grants Commission. The Council is reconstituted every
three years. The Council has its own source of revenue in that it collects levy
from the registered newspapers and news agencies. It also receives grant-inaid from the Central Government for performing its functions.
As a statutory quasi-judicial body, the mandate of the Press Coundl is
to administer ethics and to inculcate principles of self-regulation among the
Press. It also keeps under review any development likely to interfere with
the freedom of the Press. The Council discharges its functions primarily
through adjudications on complaint cases received by it, either against the
Press for violation of journalistic ethics or by the Press for interference with
its freedom, where the Council is satisfied, after inquiry, that a newspaper
or a news agency has offended against the standards of journalistic ethics or
public taste or that an editor or working journalist has committed any
professional misconduct, the Council may warn, admonish or censure them

Mass Communication

547

or disapprove of their conduct. The Council is also empowered to make such

observations as it may think fit in respect of the conduct of any authority,
including Government, for interfering with the freedom of the press. The
decisions of the Council are final and cannot be questioned in any court of
law.

Press Council Act, 1978 also empowers the Council to suo-motu initiate
inquiry on various matters that have bearing on the freedom of the Press and
its standards. In pursuance of its objectives, the Council during the period
under review took cognizance suo-motu on complaints of media's coverage
of Gujarat riots and gave out its adjudication apart from study report titled
"Media'sc:_overage of_Gujra~_ riots".
The Council also passed a resolution expressing concern over the action
by the Tamil Nadu Assembly against The Hindu and the Murasoli in privilege

motion moved against the papers and appealed to the legislature and the
Speaker of the Tamil Nadu Assembly to revoke its verdict.
The Council also prepared and advised the media to abide by the Model
C;uidelines for publishing advertisements for overseas employment in
accordance with Emigration's Act, 1983.
Keeping in view the status of the Press Council and its advisory role,
envisaged in the statute, the Press Council was also nominated by various
authorities as members on their different panels on subjects haVing ethical
dimension for the media. Thus the Press Council is nominated on the (a)
Advisory Panel of Central Board of Film Certification (CBFC); (b) Working
Group on Misleading Advertisements of Bureau of Indian Standards; (c)
Expert Committee on Gender and Media set-up by National Commission for
Women.
The Council' is represented at the Committees by its Secretary.
During 2003-2004, the Press Council of India received 870 complaints,
of which the Press filed 210 cases while 660 were against the Press. 943 cases

were already pending. Of these the Council adjudicated 279 cases. 943 cases
were closed at the threshold for lack of sufficient grounds for inquiry or the
matter having become sub-judice, etc. The Council thus disposed of 1,226
matters during 2003-2004.

National Press Day which is symbolic of free and responsible press in

India was observed by the Press Council of India on 16 November 2004 in
th(' capital.

RESEARCH, REFE~ENCE AND TRAINING DIVISION

Set-up in 1945, the Research, Reference and Training Division functions as an
information-serving agency for the Ministry of Information and Broadcasting,
Its various media units and their field offices. It serves as an information bank
as well as an information feeder service to the media units to help their
programming and publidty campaigns. It also studies trends in Mass

548

India 2005

Communication Media and maintains a reference and documentation service

on Mass Communication. The Division provides background, reference and
research material and other facilities for the use of the Ministry, its media
units and others engaged in mass communication. The Division also looks
after the training aspect of the Indian Information Service (lIS) officers in
collaboration with the Indian Institute of Mass Communication (IIMC).
Apart from its regular service the 'Diary of Events', brought out every
fortnight, the Division compiles two annual reference works, one titled
INDIA, an authentic work of reference on India, and the other, MASS MEDIA
IN INDIA, a comprehensive publication on mass communication in the
country. INDIA is simultaneously released in Hindi language under the title
- BRA RAT.
Reference Library : The Division has a well-stocked library with a largl:'
collection of documents on various subjects; bound volumes of select
periodicals and various reports of the Ministries, Committees and Commissions.
Its collection includes specialised books on subjects pertaining to journalism.
public relations, advertising and audio-visual media, all prominent
encyclopaedia series, yearbooks and contemporary articles. The library facilities
are availablel to accredited correspondents from both Indian and foreign pres~
and to Government officials.
National Documentation Centre on Mass Communication : The National
Documentation Centre on Mass Communication (NDCMC) was creatd in 1976
as a part of RR & T Division on the recommendation of an Expert Committee
set-up by the Ministry, for collecting, interpreting and disseminating information
about the events and trends in mass media through its periodical services.
The NDCMC documents all news items, articles and other information
material available on mass communication. The current activities of the Centre
range from collecting and documenting information, to dissemination, not
only for the development of cross-country mass communication but also for
participation in the international information flow.
The information collected is maintained and disseminated through
services like 'Current Awareness Service' - annotated index of select articles;
'Bibliography Service' - annotated subject index of articles' 'Bulletin on
Films' - abstract of various developments in the film industry, Reference
Information Service', 'Who's Who in Mass Media' - biographies of eminent
media personalities; 'Honours Conferred on Mass Communicators' - details
of awards conferred on Mass Communicators and 'Media Update' - diary
of national and international media events.
The NDCMC also compiles and edits a reference annual Mllss Media
in Indill. It was first published in 1978 and so far eighteen editions have been
out and the nineteenth edition is in the Press for printing. The annual containS
articles on various aspects of the mass media, information on the status of
media organisations in Central Government, States and Union Territories. It
also includes the general information on print and electronic media. The

Mass Communication

549

annual serves as a reference compendium for media practitioners, policy

makers, researchers, teachers and students of journalism.
Training : Training for the Indian Information Service (lIS) officers has been
an area deserving attention. Appreciating the need, RR&T Division has been
specially entrusted with the Training aspect of lIS officers under the Tenth
Plan Period.
The target is to train more than 75 people every year. This is an ongOing
project and it is intended to organise a number of short-term training courses
for more than 350 serving officers during the entire Plan period.
PHOTO DIVISION
Photo Division, a media unit for visual support for the varied activities of
the Government of India, is a subordinate office of the Ministry of Information
and Broadcasting and the biggest production unit of its kind in the country
in the field of photography. The Division, which was established in the early
sixties merging the photo studio of the Publication Division and the Photo
Unit of the Press Information Bureau. The Division is responsible for preparing
photographs both in Black & White and Colour for internal and external
publicity on behalf of the Government of India. During April 2003 to March
2004, the Division has covered over 4,590 Black & White and Colour
assignments of various functions/ events and supplied almost two lakh
photographs to different media units, Central/State Government agencies and
to the public.
The headquarters of the Photo Division is housed in Soochna Bhavan,
eGO Complex, Lodhi Road, New Delhi. Besides, Main Office, the Division
has also a Photo Unit/Cell functioning at Curzon Road, New Delhi, for
providing direct photographic assistance/ support to D.A.V.P. for their exhibition
purposes and also to produce the murals for the use by the Ministry of
External Affairs and the Department of Post and Telegraph, Ministry of
Communications.
During the Tenth Plan the Division has envisaged some modernisation
plans. In 2002-2003, the Division took up some structural changes in its
laboratories with advanced conventional items. It also took up the upgradation
and modification of its studio. During the plan year it has projected for the
conversion of conventional Darkrooms to Digital Darkrooms, phase-wise. It
has also proposed to change the taking of conventional photographs, phasewise, to the digital photography for the time-bound important coverage
particularly the coverage of the Prime Minister and the visiting Heads of State.
It has also proposed to modify its digitalisation of the image programme
through a pilot project for the Archiving, Cataloguing and accessing of the
images.
Photo Division provided extensive coverage of Prime Minister's visit to
Germany, Russia, France and Switzerland from 27 May to 2 June 2003 where
he participated in G-8 Summit held at Evian on France-Swiss Border as a

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special invitee. Photo Division provided an extensive coverage of Prime

Minister's visit to Turkey, USA and Switzerland from 16-28 September 2003.
During this historic visit the photographs of the Prime Minister addressing
the 5Rth UN General Assembly and his bilateral meeting with the US President
were given a wide publicity. Photo Division also provided extensive photo
coverage of Prime Minister's visit to Bali and Thailand from 6-9 October 2003
where he participated in ASEAN Summit held at Bali. Photo Division also
provided an extensive coverage of Prime Minister's visit to China, Tajikistan,
Syria and Nigeria.
The Division made an extensive coverage of the historic visit of the Prime
Minister to Isalamabad. The Division also took up the coverage of the visit
of the Deputy Prime Minister to Maldives. Digital photographs were transmitted
from all the respectivt venues of visits and a large number of pictures wefe
released to the Press for the publicity.
The Division undertook the photo coverage of various Heads of State /
Government of Foreign Countries, besides many others who visited India
during the period under report (April 2003 - March 2004). All the dignitaries
were provided with a special colour album containing the photographs of their
visit during their departure.
The Division produced a total of two lakh thirty-four thousand fiw
hundred and eighty-six photographs during the period.

National Photo Contest and Workshop : Photo Division organised a twoweek special training programme for the officers of the National Institute of
Criminology and forensic Science on Digital Photography during April-May
2003. During the last year-end the Division organised its 15th National Photo
Contest with the theme, 'Life in Mountains'. It also organised during the same
period a workshop on the Aspect of Photo Journalism and the Role of Digital
Photography for speedy communication". Photo Division organised its 16th
National Photo Contest on the theme India on the move.
II

PUBLICATIONS DIVISION
The Publications Division is a leading publishing house in the country. From
a modest beginning in 1941, the organisation has since brought out a wide
variety of books on the subjects ranging from national policies and programmes
to art, culture, history, flora and fauna, land and people, speeches and
writings, biographies, science and technology and children's literature. It has
published over 7,000 titles so far.
An important milestone of the Division is publication of the Collected
Works of Mahatma Garldhi running into hundred volumes in Hindi and
English. It consists of original writings of Gandruji including speeches and
interviews as well as letters. The Division has capsuled this huge project into
an interactive CD with Gandhiji's voice and film footage in original.

Under the "Builders of Modem India" series the Division recently

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551

printed books on the lives of the illustrious sons of India like Dr. Keshav Baliram
liegdt'U1ar, Deen Dayal Upadhyay, Birsa Munda, C. Rajagopalachari, Dr. Bidhan
Chandra Ray and Here Krishna Mahtab. Many more biographies are in the offing.
Some of the other recent publications include Tribal Women in Development,
Tilt' Story of Ayurveda, The Story of Swimming, all in English Bharatiya Mahilayen,

Nai Dishayen, livan Ki Uttpatti aur Vikas and Hindustani Shastriya Sangeet Ki
G/llmma Parampllrtl, all in Hindi.

The Division brings out 21 Journals with Yojana as a multi-lingual edition

in most of the Indian languages devoted to development and planning.
Kurukshetra in Hindi and English is on rural development while Bal Bharafi
caters to children. Aajkal is a literary and cultural magazine in Hindi and
Urdu. The Employment NewslRozgar Samachar, a weekly, published in
English, Hindi and Urdu provides information about job opportunities and
has a circulation of more than six-and-a-half lakh. The Research, Reference
and Training Division's Reference Annuals like India and Mass Media are also
published by the Division for the benefit of the students, researchers,
journalists ft al.
The Division also gives away Bharatendu Harishchandra Awards to
encourage original writings in Hindi in various disciplines of mass
communication. Awards are also given for children's literature, books on
national integration and women's issues.
AUDIO-VISUAL MEDIA

Feature films are being produced in India since 1912-13. The first in the
endeavour was Pundalik - the film made by KG. Torney and N.G. Chitre
followed by Raja Harishchandra - the film made by Dhundiraj Govind Phalke,
the pioneer of Indian film Industry. The silent film of the era got voice with
Alam Ara - a film made by Ardeshir Irani. Since then, India is leading the
world in annual output of the feature films till date.
FILMS DIVISION

The Films Division was established in 1948 to record, propagate and preserve
tIll' achievements of resurgent independent India on celluloid. It has been the
vital link between the people and the Government apart from its pioneering
role in spreading the documentary film movement in India and the world.
It is the largest national agency devoted to the production and distribution
of newsmagazines, documentaries and animation films.
Apart from its newsmagazines and documentaries, the Films Division
also produces story-based short fiction films and other educational and
motivational films both in-house and for various Ministries and Departments
of the Government of India and other State Governments. It has its own
Cartoon Film Unit based on the cell animation studio of Disney, Hollywood
giving out most delightful and educative animation films.

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552

The Films Division produces and dubs all the films in all the regional
languages of India apart from Hindi and English so as to facilitate the masses
identify themselves and find out solutions of their problems for enlisting their
active support in the nation building efforts. Films of Films Division are
distributed through ten Branch Offices located across the length and breadth
of the country at Mumbai, Kolkata, Hyderabad, Lucknow, Chennai, Madurai,
Nagpur, Thiruvananthapuram and Vijayawada. Films Division has an archive
of more than 8,000 films, newsmagazines, short fiction films, animation films
and other films on the subjects touching almost all aspects of human life.
Films Division has started organising Bombay International Film Festival,
biennially, for Documentary, Short and Animation films in 1990 known as BIFF
which later was renamed after change in the name of city of Bombay to
Mumbai as Mumbai International Film Festival.
The 8th MIFF was held successfully from 3-9 February 2004. 31 countries
participated with 257 films/video programmes and 365 films/videos were
received in National Section. The festival aimed to serve as a platform for
film makers all over the world who can meet, exchange ideas, explore the
possibility of co-production and market their films.
There were two different sections in it viz., International Film/Video
Competition and National Film/Video Competition. Outstanding films in the
two categories of competition section were selected by International Jury for
awarding Gold and Silver Conches with cash prizes amounting to Rs 26 lakh.
MIFF-2004 continued to give ~,~~ablished in 1~
to felicitate the Senior Docu_mentaq~ Film Maker from India for lifetime
ac~ieveme~t~ntFIe fieldofO:ocu~!:!)t~tY..~~witrl eIlhanced cash award of
Rs 2:STaK.1l.1I1 MTF'F-2004, KI. 'Rhandpur was conferrea upon with the Awara.

---_ -_
.......

............. _ _ . - .

All information about MIFF-2004 including entry fonn. rules

regulations was made available at Imuw.filmsdivison.org from where
participant film makers could downJoad the entry fonn. MIFF has
introduced their exclusive website : ururw.miff-india.com from where
participant film makers can submit their entry.

and
the
also
the

CENTRAL BOARD OF FILM CERTIFICATION

Films can be publicly exhibited in lndia only after they have been certified
by the Central Board of Film Certification (CBFC). The Board set-up under
the Cinematograph Act, 1952 consists of a Chairman and minimum 12 and
a maximum 26 non-official members, all appointed by the Government. The
Board functions with headquarters at Mumbai and 9 RegionaJ Offices at
Bangalore, Mumbai, Kolkata, Hyderabad, Channai, Thiruvananthapuram,
New Delhi, Cuttack and Guwahati. Films are produced in 14 main languages
and only 9 Offices are there in the country. Hence the films produced in
Gujarati, Punjabi, Rajasthani, etc., are certified mostly in Mumbai since there
are no offices in those places. The Regional Officers are assisted in the
examination of films by members of Advisory Panels, which include eminent

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553

educationists, art critics, journalists, social workers, psychologists, etc. The

Board examines films for certification in accordance with the provisions
contained in the Cinematograph Act, 1952, the Cinematograph (Certification)
Rules, 1983 and the guidelines issued by the Central Government. In 2003,
the Board certified in celluloid 877 Indian and 282 foreign feature films, 1,177
Indian and 228 foreign short films, 164 Indian video feature films, 2 Indian
video long films other than feature and 232 foreign video feature films, 920
Indian video short films and 182 foreign video short films.
The Film Certification Appellate Tribunal (FCAT) constituted in March
19H4 hears appeal against the decision of the Central Board of Film

Certification. The hearquarters of the tribunal is at New Delhi.

NATIONAL FILM DEVELOPMENT CORPORATION LIMITED

The National Film Development Corporation Limited (NFDC) was incorporated

in 1975. It got restructured in 1980 after amalgamation of Indian Motion
Pictures Export Corporation (IMPEC) and Film Finance Corporation (FFC).
The primary objective of NFDC is to foster excellence in cinema and to
develop state-of-the-art technology in audio-visual and related fields. The
main activities of the Corporation includes financing and producing of films
with creative and artistic excellence, on socially relevant themes and
experimental in form. NFDC arrange distribution and dissemination of films
through various channels. It provides essential pre-production and postproduction jnfrastructure to the film industry, keeping pace with the latest
technology. It also endeavours to promote culture and understanding of
cinema by organising Film Weeks, Indian Panorama and Film Festival in
collaboration with Film Societies, National Film Circle and other Agencies
representing Indian and Foreign Films.
NFDC encourages the concept of low-budget films which are high in
quality, content and social values. During 2003-2004 production of five films
in different languages was completed and four films were under production.
The Corporation had exported 41 films during the same period. NFDC's
Ihmm Film Centre, Kolkata provides production, post-production facilities
imd also a Video Studio called "DWANI" caters to the needs of the film
industry of eastern region. The Laser Subtitling Unit in Mumbai provides the
facilities in all the languages using latin character and also Arabic, Chinese
and Japanese. The unit also undertakes video SUbtitling in various regional
clnd foreign languages.
The Cine Artistes Welfare Fund of India set-up by NFDC, is the biggest
l'ver trust in the Indian Film Industry with a corpus fund of Rs 4.48 crore.
During the year 2003-2004 an amount of Rs 47.06 Jakh were disbursed as
pension and other financial asSistance to Cine Artistes.
DIREcrORATE OF FILM FESTIVAL
The Directorate of Film Festivals (OFF) was set-up in 1973 with the prime
Obje(iive of promoting good cinema. Since then, OFF has provided a platform

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for the best in Indian cinema by holding the National Film Awards every year.
It has also proved to be a vehicle for promoting cultural understanding and
friendship at the international level. Within the country, it has made the
newest trends in world cinema accessible to the general public.
The 34th International Film Festival of India was successfully organised
from 9-19 October 2003 in New Delhi. the Festival has a number of sections
like - Asian Competition, Cinema of the World, Foreign Retrospective, Cinema
and Literature. For the first time a Technical Retrospective was organised
which was well received among film students and technicians. A short digital
section of German Films was also organised. The festival sCR"ened a total of
170 films, representing participation from over 36 countries in a total of 254
shows.
In the Asian Competition section 11 ft'ature films were screened Golden
Peacock and a cash prize of Rs five lakh went to the Iranian Director Zeinab
Ostadali Makhmalbaf for the film "5 ill the AftmlOon" for the Best Film by
an Asian Director. The Silver Peacock and cash prize of Rs 2.5 lakh to th('
Israel Director Ra' anan Alexandraowicz for the film "James Journey to
lerulia/em" for tht' most promising Asian Director. The special Jury Award
of the Silver Peacock and cash prize of Rs 2.5 lak11 for the Indian director
Subhadro Chowdhury of the Film "Prohor".
In the main section - Cinema of the World - 59 films from 36 countries
wert' scret'ned. The opt'ning film was "Pinjar" by Chandraprakash Dwivedi
and thl' closing film was "Rabbit Proof Fence" by Phillip Noyce from
Australia. The Foreign Retrospective included a major retrospective of the
great Denmark Director Lars Von Trier and the French Producer Marin
Karmitz. Under Country Focus section, Switzerland Cinema provided a rare
opportunity to view significant and contemporary films from Switzerland.
One of the highlights of the festival was the presentation of Lifetime
Achievement Award to the noted actress/film director Liv Ullmann.
As part of the Cultural Exchange Programme, French Film Week
conSisting of 42 animation films were scn..>ened in Delhi, Kolkata and Pune.
St.'veral Film weeks were organised as part of the Cultural Exchange
Programme. Countries covered are: Gernmany, Switzerland, Kenya, Croatia,
Australia, Japan and France.
As part of the 50th edition of National Film Awards three separate juries
were constituted with prominent members from the film industry. In all there
were 30 members. A total of 234 films (feature and non-feature) were screened.
The jury recommended the selections for Indian Panorama (feature and nonfeature).
The National Film Awards function was organised on 29 December 2003
where National film Awards were presented by the Hon'ble President of India.
The Prestigious Dada Saheb Phalke Award was conferred on Sh. Dev Anand
for his outstanding contribution to the field of cinema.

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555

NATIONAL FILM ARCHIVE OF INDIA

The National Film Archive of India was established in 1964 as a media unit
under the Ministry of Information and Brodadcasting. The primary charter
of NFAI is to safeguard the heritage of Indian Cinema for posterity and act
as a centre for dissemination of a healthy film culture in the country.
Promotion of film scholarship and research on various aspects of Cinema also
form pOlrt of its objectives. Familiarsing foreign audiences with Indian Cinema
and to make it more visible across the globe is another declared function of
the Archive.
NFAI has been a member of the International Federation of Film
Archives since May 1969, which enables it to get expert advice and material
on presrrvation techniques, documentation, etc. The Archive has its own film
vaults designed according to international film preservation standards. The
construction of specialised vaults for preserving colour films is under way.
There is a well-stocked library of over 25,000 books on Cinema published
across the globe. More than 100 Indian and foreign journals on Cinema are
flwived in the library. Over 30,000 filmscripts both Indian and foreign
received from the Central Boards of Film Certification are also preserved in
the Archive.
The Research and Documentation Centre attempts to collect photographs/
stills, song-booklets, wallposters, pamphlets and other publicity material of
films certified by the various Film Certification Boards in the country. The
NfAI encourages and promotes research and academic activities on every
aspect of Cinema. It assigns monographs on eminent Indian filmmakers and
pioneering film personalities, research fellowships on themes related to Indian
cinema, and aural history recordings of senior artists and technicians. It has
published 12 such projects so far.
As a part of its activities of disseminating film culture, NFAI has a
Distribution Library of films which supplies films to film societies, educational
institutions and cultural organisations in the country . It also conducts jointscreening programmes at centres like Mumbai, Kolkata, Bangalore, Chennai,
Hyderabad, Thiruvananthapuram, Cochin, JamshedpUf, Pune and Delhi. It is
a major source of films for international film festivals in India and abroad.
NFAI has been conducting its Annual Film Appreciation Course of four
weeks duration at Pune in collaboration with Film' and Television Institute
of India for the last three decades. Participants from different professions from
all over India are exposed to the best of Indian and world Cinema. The
Archive also co-ordinates short-term courses on similar lines in collaboration
with educational institutions and cultural organisations outside Pune. The
website of NFAI can be visited at http:lnJaipune.nic.in.
CHILDREN'S FILM SOCIETY
Children's Film Society, India (CFSI) earlier known as National Centre of Films
for Children and Young people, N'CYP was established in 1955 to provide

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India 2005

value based entertainment to children through the medium of films and is

engaged in production, acquisition, distribution / exhibition and promotion of
children's films. The Head Office of th~~ is located in MumbiJi with
branch/zonal offices in New Delhi and Chennai. Films prodUced/procured
by the Society are exhibited through state / district-wise film festivals. During
the year 2003-04, 7660 shows wen' arranged covering 36.37 lakh children. CFSI
also markets its films on video cassettes and CDs. CFSI films are telecast
regularly on television channels. In 2003-04 13 Feature films were screened
on Star Gold. The films produced by CFSI are screened in various national
and international film festivals and have won many awards. CFS} participated
in as many as 31 International Children's Film Festivals during the year 200304. CFSI holds its own International Children's Film Festival every alternate
year. The 13th International Children's Film Festival was held at Hyderabad
in November 2003. 170 entries from 30 countries were received for the festivdl.
Other events like seminar on Children's Films, Quiz for school children, and
demonstration of amateur radio were also organised, as part of the 13th
International Children's Film Festival. CPSI also Conducts workshops on filmmaking, animation, etc., for children.
DIRECTORATE OF ADVERTISING AND VISUAL PUBLICITY
DAVP is the multi-media adVt'rtising agency of the Government of India. It
is the designated single window agency for publicising government policies
and programmes through various media, like newspaper advertisements,
print publicity (posters, brochures, booklets, etc.), outdoor publicity (hoarding~,
kiosks, wall-paintings, etc.), audio-visual publicity (audio-video spots, short
films, docu-dramas, jingles, sponsored programmes, etc.) and exhibitions on
themes of national importance. DAVP with its ..-headfluartero io N~.J2clhj,
has two Regional Offices at Bangalore and Guwahati. It also has 35 Field
Exhibition Units spread all over the country.

Press Advertisements : DAVP has on its panel a variety of newspapers and

periodicals for release of advertisements highlighting various programmes
and policies of Central ministries/ departml>nts and autonomous bodies.
Empanelment of publications is done as per the guidelines and procedun.'s
of th( Advertisement Policy of the Government which is revised from time
to time. The primary objective of the government in advertiSing is to seCure
the widest possible coverage of its policies, programmes or messages through
newspapers and journals, both big as well as medium and small. Over 2,5J9
publications of which 20S arc English 1,544 are Hindi and 567 are in regional
languages from all over the country are on DAVP's panel at present. As many
as 2,24,691 advertisements were released by the Directorate in the financial
year 2003-04.

Audio Visual Publicity: The Audio-Visual Cell of DAVP arranges production

and broadcast / telecast of software on developmental and social themes for
All India Radio, Doordarshan and private radio and TV channels on behalf
of different Central ministries/departments and autonomous bodies. The
audio / video programmes are produced through empaneUed executive

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557

producers. These programmes include audio and audio-video spots/jingles,

sponsored and folk music based radio programmes, promotional tele-films
which are dubbed in Hindi, English and regional languages for national
telecast / broadcast. During 2003-04, 112 radio spots / jingles, 226 video spots,
clnd 6,743 sponsored radio programmes were produced in different languages.
Print Publicity: Different kinds of publicity materials like posters, folders,
booklets, brochures, calendars, diaries, wall hangers, stickers, etc., are designed
and printed by DAVP in Hindi, English and various Indian languages to take
~l)cially relevant messages of the Government of India to the masses. During
the year 2003-04, DAVP brought out 893 publicity items in various languages.
TIll' combined print order was over worth Rs 9.69 crore.

[xhibitior.:. : Photo exhibitions are an important means of propagating

messages of national development and other issues of social relevance. DAVP
conceptualises, designs, develops and mounts exhibition material, montages
and artefacts for exhibitions on specific themes. In the year 2003-04, 589 photo
exhibitions were held all over the country, over a period of 2,144 exhibition
days.
Olltdoor Publicity: Various outdoor formats like hoardings, wall paintings,
cinema slides, computerised animation displays, kiosks, bus queue shelters,
bus-back panels, etc., are utilsed by DAVP to display messages on policies
programmes of Ministries/Departments of the Central Government. In 2003ll4, a total of 96,857 displays were executed by the Directorate.

Mass Mailing: The Mass Mailing Wing of DAVP has over 16 lakh addresses
in 564 categories to reach out to a wide spectrum of people across the country
with intended messages and information. Over 2.1 crore items were despatched
t<) various mailing addresses in the year 2003-04.
Studio: DAVP has a full-fledged Studio for designing of publicity material
required for different campaigns. The designs are prepared in-house, keeping
in mind the special pUblicity requirements of the region where the publicity
campaign is to be launched. The Studio is equipped with DTP Cell for making
dt'signs for Print Publicity, Press Advertisements, etc. Designs for outdoor
publicity through hoardings, kiosks, bus-back panels, wall-paintings, etc., are
also prepared in-house.

DIRECTORATE OF FIELD PUBLICITY

lh(' Directorate of Field Publicity is the largest rural-oriented interpersonal
communication medium in the country, which acts as two-way information
dissemination and feedback bridge between the people and the Government.
It was established in 1953, under the name "Five-year Plan Publicity
Organisation", with publicity of Five-Year Plans being its sole objective then.
In December 1959, the organisation was made much more broadbased
regarding its publicity scope, and renamed as the Directorate of Field Publicity.
However, over the years, its areas of operation, as also its aims and objectives
haw diversified. These in brief are : (a) to educate the people about the

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India 2005

fundamental national principles of secularism and democracy, (b) to generate

public opinion for the implementation of developmental programmes and
mobilise popular participation in the process of nation building and (c) to
keep the government informed of the people's reactions to its programmes
and policies, and their implementation at the field level thereby facilitating
corrective measures as and when required. The DFP resorts very largely to
inter-personal communication like group disussions, public meetings, seminars,
symposia, etc., to convey its messages to the people. Visual support is
provided in the form of films and photo exhibitions. Competitions like singing
rangoli, debates, essays, sports, etc., are also organised.
The DFP, with its headquarters at New Delhi, has 22 regional offices and
268 Field Publicity Units. During 2003-2004 (up to December 2003) the Field
Publicity Units covered prominent days and weeks, fairs and festivals. The
Units organised 28,501 film shows, 40,312 oral communication programmes,
5,621 special programmes, 21,703 photo exhibitions, 955 song & drama
programmes, and collected 2,834 public reaction reports.
SONG AND DRAMA DIVISION
Set-up in 1954 as a unit of All India Radio Song and Drama division was
given the status of an independent media unit in 1960 as a subordinate office
of the Ministry of Information and Broadcasting. It was established for tapping
the resourceful live media, particularly the traditional and the folk forms for
plan publicity. It has the advantage of instant rapport with the people and
flexibility in its forms to incorporate new ideas effectively. It utilises a wide
range of stage forms such as drama, folk and traditional plays, dance-drama,
folk recitals and puppet shows besides the Sound and Light medium to focus
the attention of the audience on important aspects of the country's life and
development in different fields.
The Division has 12 Regional Centres at Bangalore, Bhopal, Chandigarh,
Chennai, Dehradun, Delhi, Guwahati, Kolkata, Lucknow, Raipur Ranchi and
Pune. It has eleven sub-centres, located at Bhubaneswar, Darbhanga, Hyderabad,
Imphal, Jodhpur, Nainital, Pama, Shimla and Jammu, Dehradun and Raipur.
Border Publicity Scheme was introduced in song and Drama Division
in 1966 with the objective to boost the morale of the people along the sensitive
international boundaries and keep them bound to the country's unity and
integrity. The Border Publicity Centres are situated at Darbhanga, Guwahati,
Jammu, Jodhpur, Imphal, Nainital, Shimla, Dehradun and Raipur. In 1967
Armed Forces Entertainment Wing was set-up with a view to entertaining
the Jawans posted in the forward areas. Of the 9 troupes one is located at
Chennai and the rest are at headquarters Delhi. A new media, an amalgam
of Sound, Light and Live action was adopted by Song and Drama Division
in 1967 after seven years of successful trial. There are three Sound and Light
Units one each at Allahabad, Bangalore and Delhi. In 1980 the Division set
up a tribal centre at Ranchi for participation of tribals in the programme
activities for the welfare of the tribal people. The scheme covers Bihar,

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559

C:hhattisgarh, Jharkhand, Orissa and Madhya Pradesh.

Song and Drama Division puts up field programmes in coordination with
thl' sister media units of the Ministry of Information and Broadcasting, Central/
State Government Departments and voluntary organisations. The Division
works in close coordination with the Ministries of Health and Family Welfare,
Defence, Rural Development, Welfare, Human Resources Development, etc.
During 2003-04 the Division organised 28,650 programmes on the broad
national themes and Government policies. These programmes were put up
mostly in rural and semi-urban areas.

TRAINING
FILM AND TELEVISION INSTITUTE OF INDIA,/

pv

r"

(..

The FTII, Pl,!lll), is a premiere institution for imparting training in the art and
craft -;f filmmaking and television production. It conducts three-year diploma
course in film and television and one-year certificate course in television. The
f<'T11 has started a one-year certificate course in feature film screenplay writing
and also re-Iaunched a two-year diploma course in Acting from the academic
year 2004-05. This year the Institute conducted the 50th course in basic
television production and technical operations, and with this it has completed
training of five thousand trainees of Doordarshan till now. The Institute also
conducts short-term courses in various media-related professions.

The Institute regularly enters its student films in national and international
fl'stivals. One of the important annual features of the FTII is conducting of
four-week summer course in film appreciation in collaboration with National
Film Archive of India, Pune.
SATYAJIT RAY FILM AND TELEVISION INSTITUTE
SatY'!ii~ilm

and television Institute (SWl).. Kol.a4a, an autonomous

academic institution unaer ffie-"Ministry of Information and Broadcasting, was
registered in 1995 under the West Bengal Societies Registration Act, 1961. The
Institute is a National Centre offering 3-year post-graduate diploma courses
in: (i) Film Direction and Screenplay Writing; (ii) Motion Picture Photography;
(iii) Editing (Film and Video) and (iv) Sound Recording. The Institute holds
an all-India basis competitive examination each year, to select prospective
students for its different streams. Diploma Film tuled 'Sunder Jibon' won
the 50th National Film Award (Best Short Fiction Film in Non-Feature Film
St_'ction), another diploma film 'Khoj' won 8th Mumbai Film Festival Award
in the section of First Film of a Director. The films made by the students of
the Institute got invitations of many national and international film festivals
both in India and abroad. The Institute has recently started a Special training
programme for lIS Probationers.
INDIAN INSTITUTE OF MASS COMMUNICATION

The Indian Institute of Mass Communication is an autonomous centre for

advance study in mass communication, research and training. It was established

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India 2005

on 17 August 1965 in Delhi and registered under the Societies Registration Act
(XXI), 1860. The IIMC is fully funded by the Government of India through the
Ministry of Information and Broadcasting. It has branches at Dhenkanal
(Orissal_~~':!__Dimapur (Nagi)land).
.
The IIMC conducts the following major courses: (a) Foundation Course
in Communication for Indian Information Service (Group-A); (b) Postgraduate Diploma Course in Journalism (English) at New Delhi and Dhenkanal;
(c) Post-graduate Diploma Course in Journalism (Hindi); (d) Post-graduate
Diploma Course in Advertising and Public Relations; (e) Post-graduate
Diploma Course in Radio and TV Journalism; (f) Post-graduate Diploma
Course in Oriya Jouralism; and (g) Diploma Course in Development Journalism.
In addition, the Institute runs short-term academic programmes for middle
level and senior officers of the Indian Information Service and the personnel
of different media units.
Over the years a large number of research and evaluation studies have
been undertaken by lIMC covering a wide range of topics, such as Audience
Reactions, Communicator's Views, Evaluation and Impact Studies of
Communication Events and Processes, etc.

22

Planning

PLANNING in India derives its objectives and sodal premises from the
Directive Principles of State Policy enshrined in the Constitution. Public and
private sectors are viewed as complementary. The private sector covers,
besides organised industry, small-scale industries, agriculture, trade and
housing, construction and related areas. Individual efforts and private
initiatives are considered necessary and desirable in the national endeavour
for development with optimum voluntary cooperation.
The Prime Minister of India, Dr. Manmohan Singh is the Chairman of
the Planning Commission and Shri Montek Singh Ahluwalia is its Deputy
Chairman. The Members of the Planning Commission include Shri Pranab
Mukherjee, Minister of Defence; Shri Arjun Singh, Minister of Human
Resource Development; Shri Sharad Pawar, Minister for Agriculture and
Consumer Affairs, Food and Public Distribution; Shri Lalu Prasad Yadav,
Minister of Railways; Shri P. Chidambaram, Minister of Finance;
Shri Dayanidhi Maran, Minister of Communications and Information
Technology, and Shri M.V. Rajashekharan, Minister of State for Planning, as
ex-officio Member and Dr. Kirit Parikh, Prof. Abhijit Sen, Dr. V. L. Chopra_
Dr. Bhalchandra Mungekar, Dr (Ms.) Syeda Hameed, Shri B.N. Yugandhar and
Shri Anwar-ul-Hoda as full-time Members.
FIRST PLAN

Keeping in view the large-scale import of foodgrains in 1951 and inflationary

pressures on the economy, the First Plan (1951-56) accorded the highest
priority to agriculture including irrigation and power projects. About 44.6 per
cent of the total outlay of Rs 2,069 crore in the public sector (later raised to
Rs 2,378 crore) was allocated for this purpose. The Plan aimed at increasing
the rate of investment from five to about seven per cent of national income.
SECOND PLAN
The Second Five-Year Plan (1956-57 to 1960-61) soughtto promote a pattern
of development, which would ultimately lead to the establishment of a
socialistic pattern of society in India. Its main aims were (i) an increase of
25 per cent in the national income; (il) rapid industrialisation with particular
('mphasis on the development of basic and heavy industries; (iii) large
expansion of employment opportunities; and (iv) reduction of inequalities in
income and wealth and a more even distribution of economic power. The Plan
aimed at increasing the rate of investment from about seven per cent of the
national income to 11 per cent by 1960-61. It laid emphasis on industrialisation.
increased production of iron and steel. heavy chemicals including nitrogenous
fertilizers and development of heavy engineering and machine building
industry.

562

India 2005

THIRD PLAN

The Third Plan (1961-62 to 1965-66) aimed at securing a marked advance

towards self-sustaining growth. Its immediate objectives were to: (i) secure
an increase in the national income of over five per cent per annum and at
the same time ensure a pattern of investment which could sustain this rate
of growth in the subsequent Plan periods; (ii) achieve self-sufficiency in
food grains and increase agricultural production to meet the requirements of
industry and exports; (iii) expand basic industries like steel, chemicals, fuel
and power and establish machine building capacity so that the requirements
of further industrialisation could be met within a period of about 10 years
mainly from the country's own resources; (iv) utilise fully the manpower
resources of the country and ensure substantial expansion in employment
opportunities; and (v) establish progressively greater equality of opportunity
and bring about reduction in disparities of income and wealth and a more
even distribution of economic power. The Plan aimed at increasing the
national income by about 30 per cent from Rs 14,500 crore in 1960-61 to about
Rs 19,000 crore by 1965-66 (at 1960-61 prices) and per capita income by about
17 per cent from Rs 330 to Rs 386 over the same period.
ANNUAL PLANS

The situation created by the Indo-Pakistan conflict in 1965, two successive

years of severe drought, devaluation of the currency, general rise in prices
and erosion of resources available for Plan purposes delayed the finalisation
of Fourth Five Year Plan. Instead, between 1966 and 1969, three Annual Plans
were formulated within the framework of the draft outline of the Fourth Plan.
FOURTH PLAN

Tht, Fourth Plan (1969-74) aimed at accelerating the tempo of development

of reducing fluctuations in agricultural production as well as the impact of
uncertainties of foreign aid. It sought to raise the standard of living through
programmes designed to promote equality and social justice. The Plan laid
particular emphasis on improving the conditions of less privileged and weaker
sections especially through provision of employment and education. Efforts
were directed towards reduction of concentration of wealth, income and
economic power to promote equity.
The Plan aimed at increasing net domestic product (at 1968-69 factor
cost) from Rs 29,071 crore in 1969-70 to Rs 38,306 crore in 1973-74. Average
annual compound rate of growth envisaged was 5.7 per cent.

FIFI'H PLAN
The Fifth Plan (1974-79) was formulated against the backdrop of severe
inflationary pressures. The major objectives of the Plan were to achieve selfreliance and adopt measures for raising the consumption standard of people
living below the poverty line. This Plan also gave high priority to bringing

Planning

563

inflation under control and to achieVing stability in the economic situation.

It targeted an annual growth rate of 5.5 per cent in national income. Four
Annual Plans pertaining to the Fifth Plan period were completed. It was
subsequently decided to end the Fifth Plan period with the close of Annual
Plan 1978-79.
SIXTH PLAN

Removal of poverty was the foremost objective of the Sixth Plan (1980-85).
The strategy adopted was to move simultaneously towards strengthening
infrastructure for both agriculture and industry. Stress was laid on tackling
inter-related problems through a systematic approach with greater management,
efficiency and intensive monitoring in all sectors and active involvement of
people in formulating specific schemes of development at the local level and
securing their speedy and effective implementation.
The actual expenditure in the Sixth Plan stood at Rs 1,09,291.7 crore
(current price) as against the envisaged total public sector outlay of Rs 97,500
crore (1979-RO prices) accounting for a 12 per cent increase in nominal terms.
Average annual growth rate targeted for the Plan was 5.2 per cent.
SEVENTH PLAN

The Seventh Plan (1985-90) emphaSised policies and programmes, which

aimed at rapid growth in food grains production, increased employment
opportunities and productivity within the framework of basic tenets of
planning, namely, growth, modernisation, self-reliance and social justice.
Foodgrains production during the Seventh Plan grew by 3.23 per cent as
compared to a long-term growth rate of 2.68 per cent between 1967-68 and
1988-89 and growth rate of 2.55 per cent in the eighties due to overall
favourable weather conditions, implementation of various thrust programmes
and concerted efforts of the Government and the farmers. To reduce
unemployment and consequently, the incidence of poverty, special programmes
like Jawahar Rozgar Yojana were launched in addition to the existing
programmes. Due recognition was accorded to the role small scale and food
processing industries can play in this regard. The total expenditure during
the entire Seventh Plan stood at Rs 2,18,729.62 crore (current prices) as against
the envisaged total public sector outlay of Rs 1,80,000 crore, resulting in a
21.52 per cent increase in nominal terms. During tRis Plan period, the Gross
Domestic Product (GOP) grew at an average rate of 5.8 per cent exceeding
the targeted growth rate by 0.8 per cent.
ANNUAL PLANS

'The Eighth Five-Ye~r Plan (1990-95) could not take off due to the fast-changing
political situation at the Centre. The new Government, which assumed power
at the Centre in June 1991, decided that the Eighth Five-Year Plan would
commence on 1 April 1992 and that 1990-91 and 1991-92 should be treated
as separate Annual Plans. Formulated within the framework of the Approach

564

India 2005

to the Eighth Five-Year Plan (1990-95), the basic thrust of these Annual Plans
was on maximisation of employment and social transformation.
EIGHTH PLAN
The Eighth Five-Year Plan (1992-97) was launched immediately after the
initiation of structural adjustment policies and macro stabilisation policies,
which were necessitated by the worsening Balance of Payments position and
inflation pOSition during 1990-91. The various structural adjustment policies
were introduced gradually so that the economy could be pushed to a higher
growth path and improve its strength and thus prevent Balance of Payments
and inflation crisis in future. The Eighth Plan took note of some of these policy
changes, whidl were to come about due to these reforms. The Plan aimed
at an average annual growth rate of 5.6 per cent and an average industrial
growth rate of about 7.5 per cent. These growth targets were planned to be
achieved with relative price stability and substantial improvement in the
country's Balance of Payments.
Some of the salient features of economic performance during the Eighth
Five-Year Plan indicate, among other things, (a) faster economic growth,
(b) faster growth of manufacturing sector and agriculture and allied sectors,
(c) significant growth rates in exports and imports, improvement in trade and
current account deficit, and significant reduction in the Central Government's
fiscal deficit. However, a shortfall in expenditure in the Central sector due
to inadequate mobilisation of internal and extra budgetary resources by the
PSUs and various departments was witnessed. In the States sector, the reason
for shortfall was lack of mobilisation of adequate resources due to deterioration
in the balance of current revent;es, erosion in the contribution of state
electricity boards and state road transport corporations, negative opening
balance, mounting non-Plan expenditure and shortfalls in the collection of
small savings, etc.
The total expenditure during the entire Eighth Plan stood at Rs 4,95,669
crore [by taking 19%-97 (RE) as actual] at current prices as against envisaged
total public sector outlay of Rs 4,34,100 crore (1991-92 prices) resulting in a
14.2 per cent increase in nominal terms. The Eighth Plan envisaged an annual
average growth rate of 5.6 per cent. Against this an average annual growth
rate of 6.8 per cent was adlieved during this plan period.
NINTH PLAN
The Ninth Plan (1997-2002) was laundled in the fiftieth year of India's
Independence. The Plan aimed at achieving a targeted GDP growth rate of
seven per cent per annum and there was emphaSis on the seven identified
Basic Minimum Services (BMS) with additional Central Assistance earmarked
for these services with a view obtaining a complete coverage of the population
in a time-bound manner. These included provision of safe drinking water,
availability of primary health service facilities, universalisation of primary
education, public housing assistance to shelter-less poor families, nutritional

Planning

565

support to children, connectivity of all villages and habitations and streamlining

of the public distribution system with a focus on the poor. The Plan also aimed

pursuing a policy of fiscal consolidation, whereby the focus was on sharp

reduction in the revenue deficit of the Government, including Centre, States
and rsUs through a combination of improved revenue collections and control
of inessential expenditures, particularly with regard to subsidies and through
recovery of user charges and decentralisation of planning and implementation
through greater reliance on States and Panchayati Raj institutions.
at

The SpeCIfic objectives of the Ninth Plan included: (i) priority to

ahriculture and rural development with a view to generating adequate
productive employment and eradication of poverty; (ii) accelerating the
p"owth rate of the economy with stable prices; (iii) ensuring food and
nutritional security for all, particularly the vulnerable sections of society;
(il') providing the basic minimum services of safe drinking water, primary
health care facilities, universal primary education, shelter, and connectivity
to all in a timl.-bound manner; (v) containing the growth rate of popUlation;
(vi) ensuring mobilisation and participation of people at all levels;
(vii) empowerment of women and socially disadvantaged groups such as
Scheduled Castes, Scheduled Tribes and Other Backward Classes and minorities
,\~ ,1gents of socio-economic change and development; (viii) promoting and
dl'veloping people'S participatory institutions like Panchayati Raj institutions,
c(lo~1t'ratives and self-help groups; and (ix) strengthening efforts to build selfreliance.

The Ninth Plan envisaged an average target growth rate of 6.5 per cent
pl'r annum in GOP as against the growth rate of 7 per cent approved earlier
III the Approach Paper. The scaling down of the target was necessitated by
t\w changes in the national as well as global economic situation in the first
two years of Ninth Plan. Against this, the achievement in growth-rate on an
,\\'l'fage is to be 5.5 per cent per annum.
Achievements: During the period from 1950-51 to 2002-03, the national
income - Net National Product (NNP) has increased 8.7 times from Rs 1,32,367

(TOre to Rs 11,56,714 crore (at 1993.-94 prices) implying a compound growth

rdtl' of 4.2 per cent per annum. The per capita income (NNP) has increased
thrt'l' times from Rs 3,687 to Rs 10,964 (at 1993-94 prices) registering a
mrnpound growth rate of 2.1 per cent-all the aggregates measured at faetor
(()~t at 1993.-94 prices.
The following table gives the growth performance of the Indian economy
in terms of GOp, relative to the targets set in the various Plans right since
till' inception of planning in India. The economy has performed better than
thl' target in five of "the nine previous plans~ and even in the Second Plan,
tll(' gap was not large. As far as the Third and Fourth Plans are concerned,
t\ll' shortfalls were largely due to severe exogenous shocks that could not
possibly have been predicted including the drought years of 1965 and 1966
and the Indo-Pakistan War of 1%5. The Fourth Plan experienced three

566

India 2005
~~-

.,-

consecutive years of drought (1971-73) and the first ~i!~price shock of ~~.; ,
More importantly, since the Fourth Plan, the growth rate ortfle economy ad
improved steadily until the Ninth Plan, when it received a setback. Thus, the
evidence suggests that tht track record of planning in India is reasonably
good, and indeed tends to err on the side of the caution.
GROWTH PERFORMANCE IN THE FIVE-YEAR PLANS

(per cent per annum)

SI.No.

Plan

Target

Actual

1.

First Plan (1951-56)

2.1

3.60

2.

S<'cond Plan (1956-01)

4.5

4.21

3,

'l1lird Plan (1961-00)

5.6

2.72

4.

Fourth Plan (1%9-74)

5,7

2.05

5,

Fifth Plan (1974-79)

4,4

4.83

6.

Sixth Plan (1980-85)

5.2

5.54

7,

Seventh Plan (1985-90)

5.0

6.02

B.

Eighth Plan (1992-97)

5.6

6.68

y,

Ninth Plan (1997-2002)

6.5

5.5

Note: The growth targets for the first three Plans were set with respect to
National Income. In the Fourth Plan it was Net Domestic Product. In all Plans
thereafter it has been Gross Domestic Product at factor cost.
TENTH FIVE-YEAR PLAN

The Tenth Five-Year Plan (2002-07) was approved by the National Development
Council on 21 December 2002. The Plan has further developed the NOC
mandated objectives-;-oraoublmg per capita income in ten years and achieving
a growth rate of eight per cent of GDP per annum. Since economic growth
is not the only objective, the Plan aims at harneSSing the benefits of growth
to improve the quality of life of the people by setting the following key targets:
Reduction in poverty ratio from 26 per cent to 21 per cent, by 2oo7; Decadal
Population Growth to reduce from 21.3 per cent in 1991-2001 to 16.2 per cent
in 20ft-II; Growth in gainful employment to, at least, keep pace with addition
to the labour force; All children to be in school by 2003 and all children to
complete five years of schooling by 2007; Reducing gender gaps in literacy
and wage rates by 50 per cent; Literacy Rate to increase from 65 per cent
in 1999-2000, to 75 per cent in 2007; Providing potable drinking water in. all
villages; Infant Mortality Rate to be reduced from 72 in 1999-2000, to 45 in
2007; Maternal Mortality Ratio be reduced from four in 1999-2000, to two in
2007; Increase in Forest/Tree Cover from 19 per cent in 1999-2000, to 25 per
cent in 2007; and Cleaning of major polluted river stretches.

Plarming

567

The Tenth Plan has a number of new featmes, that include, among
others, the following:
Firstly, the Plan recognises the rapid growth in the labour force. At
current rates of growth and labour intensity in production, India faces the
possibility of rising unemployment, which could lead to social unrest. The
Tenth Plan therefore aims at creating 50 million job opportunities during the
period, by placing special emphasis on employment intensive sectors of
agriculture, irrigation, agro-forestry, small and medium enterprises, information
and communication technology and other services.
Secondly, the Plan addresses the issue of poverty and the unacceptably
low levels of social indicators. Although these have been the objectives in
earlier Plans, in this Plan there are specific monitorable targets, which will
need to be attained along with the growth target.
Thirdly, since national targets do not necessarily translate into balanced
regional development and the potential and constraints of each State differ
vastly, the Tenth Plan has adopted a differential development strategy. For
thl' first time statewise growth and other monitorable targets have been
worked out in consultation with the States to focus better on their own
development plans.
Another feature of this Plan is the recognition that Governance is perhaps
one of the most important factors for ensuring that the Plan is realised, as
envisaged. The Plan has laid down a list of reforms in this connection.
Finally, considering the present market-oriented economy, the Tenth Plan
has dwelt at length about the policies that would be necessary and the design
of key institutions. The Tenth Plan not only includes a carefully crafted
medium-term macro-economic policy stance, both for the Centre and the
States, but also lays out the policy and institutional reforms that are required
for each sector.
The incremental capital-output ratio (ICOR) of the economy is likely to
come down to about 3.6 as against 4.5 during the Ninth Plan. This decline
in leOR is to be achieved mainly through better utilisation of existing
capacities and suitable sectoral allocation of capital and its efficient utilisation.
The growth target, therefore, would require an investment rate of 28.4 per
cent of GOP. This requirement will be met from domestic savings of 26.8 per
cent of GOP and external savings of 1.6 per cent. The bulk of the additional
domestic savings will have to come from reduction in Government dissavings
from -4.5 (2001-02) to ~.5 per cent (2006-07)of GOP.
The Tenth Plan has identified measures to improve efficiency, unleash
entrepreneurial energy and promote rapid and sustainable growth. Agriculture
is to be the core element of the Tenth Plan. Key reforms for the agriculture
sector indude: Eliminating inter-state barriers to trade and commerce;
Essential Commodities Act to be amended; Amending Agriculture Produce
Marketing Act; Uberalising agri-trading, agri-industry and exports; Encouraging

568

India 2005

contract farming and permitting leasing in and leasing out of agriculture

lands; Replacement of various acts dealing with food by one comprehensive
'Food Act'; Permit futures trading in all commodities; Removal of restrictions
on financing of stocking and trading.
Some other key reform measures include Repeal of SICA, and
strengthening bankruptcy and foreclosure laws to facilitate transfer of assets;
Reform of labour laws; Policy reforms for village and small scale sectors to
improve credit, technology, marketing and skill availability, and phased
dereservation of small scale industries; Early enactment of Electricity Bill; Coal
Nationalisation Amendment Bill and Communication Convergence Bill, Abolish
restrictions and encourage decontrol of private road transport passenger
services and private sector participation in road maintenance; Early adoption
of a Civil Aviation Policy, establishment of a regulatory framework for the
sector and development of major airports with active private participation and
growing regional imbalances are a matter of concern and the Plan aims at
promoting balanced and equitable regional development. The Plan gives a
statewise break-up of the targets in order to provide the requisite focus. The
need for urgent policy and administrative reforms has also been recognised.
Governance is perhaps one of the most important factor., for ensuring
that the Plan is realised, as envisaged. Some steps required in this direction
are: Improved people's participation, especially through strengthening
Panchayat Raj Institutions and urban local bodies; Involvement of civil society,
especially voluntary organisations, as partners in development; Enactment of
the Right to Information Act; Civil Service reforms for improving transparency,
accountability and efficiency; security of tenure, a more equitable system of
rewards and punishments; Right sizing both the size and role of Government;
Revenue and judicial reforms and using information technology for good
governance.
AGRICULTURE

Agriculture contributes approximately one quarter of total gross domestic

product (GOP). It provides livelihood support to about two-thirds of country's
population. The Sector provides employment to 58.4 per cent of country's
work force and is the single largest private sector occupation. Agriculture
accounts for about 14.7 per cent of the total export earnings and provides
raw material to a large number of industries. Besides, the rural areas are the
biggest markets for consumer goods, including consumer durables, apart from
a major source of domestic savings. Above all, agriculture is the only source
of food security for the nation.
Foodgrains production based on second advance estimates for 2003-04
amounts to 212.20 million tonnes, comprising 197.78 million tannes of cereals
and 14.42 million tonnes of pulses. The production of food grains in 200304 marked an increase of 21.8 per cent as compared to 2002-03, which was
a bad agricultural year due to drought conditions in the country. The
production of oilseeds in 2003..{)4 has been estimated at 24.98 million tonneS,

Planning

569

which marked an increase of about 66 per cent over the production of 15.06
million tonnes in 2002-03. Sugarcane production in 2003-04, however, registered
il decline at 255.5 million tonnes as compared to 281.5 million in 2002-03.
Cotton production during the year is estimated at 12.39 million bales of 170
kg t'ach and jute and mesta at 11.59 million bales of 180 kg each. Milk
production during the year 2003-04 was provisionally estimated at 91 million
tonnes. India is the highest producer of milk in the world.
Fish production was 6.2 million tonnes in 2002-03. Horticulture production
(fruits, vegetables, spices, cashew, herbs and medicinal plants) touched a high
of about 146 million tonnes in 2001-02.
Fostering rapid and sustained agricultural growth remained a priority
agenda of the Government. In order to disseminate agricultural technologies,
priority was given for the establishment of agriculture clinics/ agri-businesses
and Krishi Vigyan Kendra (KVKs). A National Kissan Commission was also
constituted to examine various issues confronting farmers and improving their
income. A National Action Plan was also conceived with the specific objective
of increasing agricultural productivity and doubling food production by 201112. Significant agricultural marketing reforms were initiated. Kissan Call
Centres were established to enable farmers to get expert advice on agriculture
related issues and problems. Also, a Krishi Darshan TV Channel and a Krishi
Vani Radio Channel were launched with the objective of telecasting programmes
addressing area-specific issues and problems of farmers.
IRRIGATION

The country has made impressive strides in irrigation development since the
first Plan. The ultimate irrigation potential of the country is assessed as 139.88
million hectare (m.ha.). From then pre-Plan period (before 1951) potential of
22.6 m.ha., the potential created up to Ninth Plan (March 2(02) is 93.98 m.ha.,
with major and medium irrigation projects contributing 37.08 m.ha and minor
irrigation contributing 56.90 m.ha. The potential utilised up to Ninth Plan is
80.06 m.ha. The total investment in irrigation sector since First Plan to Ninth
Plan is Rs 1,55,624.97 crore. The targeted potential creation for Tenth Plan is
15.16 m.ha (9.92 m.ha under major and medium irrigation and 5.22 m.ha
under minor irrigation) with an approved outlay of Rs 92,143.42 crore.
Irrigation sub-sector outlay in Tenth Plan is 15.59 per cent of overall Plan
outlay in States sector. The future strategy in this sector is focused on
completion of ongoing minor and medium irrigation projects, bridging the
gap between the potential created and utilised and sector reforms like
Participatory Irrigation Management (PIM), Groundwater legislation,
appropriate irrigation water pricing to recover at least the Operation and
Maintenance (0 & M) cost of created irrigation assets and improving the
irrigation water use efficiency.

POWER
Under the Power sector, total installed capacity (including non-utility), which
Was only 2,301 MW in 1950, increased to 1,26,240 MW (including non~utility

570

India 2005

of 18,362 MW) by the end of March 2003. Under the rural electrification
programme, 4.'14 lakh villages had been electrified out of 5.87 lakh villages
(as per llJ91 Census) by the end of March 2004, which is 84.1 per cent.

INDUSTRY
In order to achieve doubling of per capita income over the next decade, the
Tenth Plan targets a Gross Domestic Product (GDP) growth rate of eight per
cent per annum. The corresponding growth target for the industrial sector is
1() per cent. This represents a major set-up in view of less than seven per
n'nt growth during the last decade. Presently, Indian Industry, especially the
manufacturing sector, is recording a consistently high growth record. That this
performance is with lower protection rate shows robustness of Indian Industry,
particularly automobile/auto components and pharmaceutical sub-sectors.
For sustaining the pace of growth and investment, several initiatives
have been launched for modernising/ technology upgradation, reducing
transaction cost, increased export thrust, so as to enhance its global
competitiven(:'ss and achieve balanced regional development. For example, in
the Industry and Trad(;' sectors, a number of initiatives/ schenws have bt.>en
launched in order to reduce transaction cost such as, Industrial Infrastructure
Upgradation Scheme (IIUS) and Modernisation of Patent Offices, etc., by
dt:'partnll'nt of Industrial Policy and Promotion. Further, in order to give
t:'xport thrust, Department of Commerce has launched major initiatives such
as Assistance to States for Infrastructure Development for Exports (ASIDE),
Market Access Initiatives (MAl), Special Economic Zones (SEZs) Policy,
Modernisation of Director General of Foreign Trade (DGFT), etc. For meeting
the objectives of balanced industrial development, industrial policy packages
haw been announced for special category states of Uttaranchal, Himachal
Pradesh, J & K, and North East States. Social security issues have been
addressed through insurance cover for workers in handloom, agro and rural
industrial and processed marine product sector. For specially addressing the
requirement of Textile Industry, being one of the major employment intensive
sl'ctnr, special schemes / packages were introduced such as Technology
Upgradation Funds Scheme (TUFS), which is expected to improve the access
for decentralised powerloom sector to Technology Upgradation Fund and
Textile Canter Infrastructure Development Scheme (TCIOS), which would take
care of infrastructure development aspect of textile industry.
Besides above, other major highlights in the Industry sector includes the
following: (i) Induced States in evolving Industrial Policy and Plans away
from direct subsidy and with greater emphasis on enabling investor-friendly
c1imate/ efficient infrastructure; (ii) A principled stand has been evolved with
regard to VRS, which is not funded through the Plan; (iii) Review of MOV
System for Central Public Sector Undertakings (CPSEs); (iv) Initiating Evaluation
of Growth Centre Scheme through Programme Evaluation Organisation (PEO);
(v) Setting up of an empowered NDC Sub-Committee on creating investor-

Planning

571

friendly climate; (vi) Institutionalised Quarterly Performance Review (QPR)

Mechanism resulting in more effective Planning Resource Allocation;
(vii) Experience sharing between States and replication of good ideas/best
practices; (viii) Acting as a fadlitator towards identification of frontier
technologies e.g., Nano Technology, Information and Communication
Technologies (JCT) and lean manufacturing for industrial applications; (ix)
Global Competitiveness - A new paradigm evolved in manufacturing sector
as evident from performance of manufacturing sector and exports; (x)
Formulation of National Export Insurance Account for Project Exports; and
(xi) Major intervention (Rs 1,719 crore) being evolved in the form of testing
facilities in Auto Sector.
Manufacturing Sector has a share of 79.36 per cent in the Index of
Industria! Production (lIP). During the year 2002-03, the lIP grew at the rate
of 5.8 per cent as compared to 2.1 per cent in 2001-02. The manufacturing
sector registered a growth rate of 6.0 per cent as against 2.8 per cent during
2001-02. As per the use-based classification, production of basic foods, capital
goods, intermediate goods and consumer goods exhibited higher increase
during 2002-03 as compared to 2001-02.
MINERAL SECTOR
The National Mineral Policy, 1993, aimed at attracting private investment, both
domestic and Foreign Direct Investment (FDI) along with state-of-the-art
technology. As a sequel to this the Mines and Minerals (Development and
Regulation) Act, 1957 (MMDR Act) and rules framed were amended to make
the statutory provisions at par with international best practices. The policy
changes have attracted private investment in exploration of base metals, noble
metals and gem stones. During the year 2002-03, two proposals involving FDI
to the tune of Rs 55 crore were approved through Foreign Investment
Promotion Board (FWB) route, which takes the total number of FWB approvals
to 72, indicating an expected FDI inflow of Rs 4,018 crore. Estimates of Gross
Domestic Product (GDP) at factor cost (at 1993-94 prices) indicate that Mining
and Quarrying registered a growth rate of 4.4 per cent in 2003-04 against 8.8
per cent in 2002-03.
Concept of zero based budgeting was introduced in the Annual Plan
2002-03 (the first year of the Tenth Plan) and accordingly organisations such

as Geological Survey of India (GSI) and Indian Bureau of Mines (IBM) have
categorised their activities as per zero based budgeting and the monitoring
of the schemes in terms of physical and finandal targets and achievements
is being done through Quarterly Performance Review (QPR) in the Planning
Commission.
An outlay of Rs 9,458 crore has been allocated for the Tenth Five-Year
Plan of which Rs 8,187 crore is to be financed through Internal and Extra
Budgetary Resources (IEBR) and remaining Rs 1,271 crore will be the gross
bUdgetary support.

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India 2005

EDUCATION

Education is the most crucial investment in human development. Over the

decades, considerable progress has been achieved in terms of literacy, school
enrolment, network of schools and spread of institutions of higher education
including technical education. The literacy rate has gone up from 18.3 per
cent in 1951 to 65.38 per cent in 2001. The decade of 19905 has been a
watershed for basic education as the Census 2001 showed 13.17 percentage
point increase in literacy, the highest since 1951. The Gross Enrolment Ratio
(GER) at primary level has increased from 42.6 per cent in 1950-51 to 96.3
in 2001-02. Similarly, for upper primary, it has gone up from 12.7 per cent
to 60.2 per cent for the corresponding period.
The number of primary schools had increased by more than three folds
from 2.10 lakh to about 6.5 lakh and that for upper primary schools, 15 times
from 13,600 to about two lakh. As per the Sixth All-India Educational Survey,
about three-fourth of the habitations in the country were served with primary
schools and about 93 per cent had access within a distance of one kilometn:.
This ratio in respect of some States like Tamil Nadu is as high as 99.43 per
cent. The total number of Elementary teachers increased from 6.24 lakh in
1950-51 to 33.96 lakh in 2001-02, i.e., registering an increase of more than fiw
times. The number of female teachers increased from 0.95 lakh to 12.62 lakh,
an increase of twelve times for the same period.
However, there are still some gaps. The dropout rates at elementary
levels has declined from 78.3 in 1960-61 to 54.6 in 2001-02, however, it is still
high. The quality of education too requires improvement and there are gender,
social and regional disparities. Besides, there are various systemic issues like
inadequate infrastructure, high teacher absenteeism and poor laboratory and
library facilities. The proportion of out-of-school children is still quite high.
Therefore, the Prime Minister's Special Action Plan gave emphasis to the total
eradication of illiteracy, equal access to and opportunity of education up to
the school-leaving stage, improvement in the quality of education at all levels,
and expansion and improvement of infrastructural facilities.
The thrust areas in the Ninth Five-Year Plan included Universalisation
of Elementary Education (VEE), full adult literacy, raising the quality of
education at all levels and improving learner achievement. Elementary
education was given the highest priority reiterating country's strong resolvE'
to achieve the goal of Education for All (EFA) during the Plan period. This
was sought to be achieved through several measures including amendment
to the Constitution of India making elementary education as a fundamental
right, decentralisation of planning, supervision and management of education
through local bodies, social mobilisation for adult literacy, developing a
stronger partnership with NGOs and provision of opportunities for nonformal and alternative education for out-of-school children in the most
backward areas and for unreached segments of the population. The major
initiatives taken to bring about quantitative and qualitative improvement in

Planning

573

elementary education include Operation Black Board, Non-formal Education

Programme, Teacher's Education, District Primary Education Programme
(DPEP), Nutritional Support to Children of Primary Education popularly
known as Mid-day Meal Scheme.
In this backdrop, the Tenth Plan had set the crucial Monitorable Targets
that aims at all children in school by 2003; all children to complete five years
of schooling by 2007, reduction in the gender gap in literacy by at least 50
per cent and increase in the literacy rate by 75 per cent.
The Tenth Plan strategy for achieving UEE has been designed with a
holistic approach as the existing policies and programmes are either for
specific target groups/ regions (Lok Jumbish) or aspects (Operation Blackboard,
which targeted mainly the school infrastructure). An all-comprehensive
programme, Sarva ghiksha Abhiyan (SSA), launched in 2000-01 covering the
en_tir~ country, will be the main vehicle for achieving the-goals or-UEE. The
scheme has a special focus on educational needs of girls, economically and
socially deprived segments and other children in difficult circumstances. The
programme is implemented in a mission mode with the Prime Minister
heading the National Mission for SSA.
The involvement of the community is made more systematic by
involving the Panchayati Raj Institutions (PRIs) and urban local bodies.
Further down the hierarchy, the Village Education Committees (VEC), MotherTeacher Associations (MTA) and Parent-Teacher Associations (PTA) would
have a formal role in the management of schools in the village. Efforts are
also made for the social mobilisation of local communities for adult literacy
campaigns and for the promotion of primary education. Community-ownership
of the school system is a key element in SSA.
The emphasis of the Tenth Plan is on identifying the problem areas and
designing a separate strategy for each such problem area, under the overall
umbrella of SAA. As envisaged in the National Policy on Education, the
Central government and its institutions will continue to playa major role both
for coordination and capacity building. A synergetic public-private partnership
would be built up during the Tenth Plan to achieve the objective of UEE.
The National Programme of Nutritional Support to Primary Education
(NP-NPSE) or the Mid-day Meal (MOM) Scheme, was launched on 15 "';ugust
1995 to give a boost to Universal Primary Education by increasing enrolment, .
attendance and retention and improving the nutritional status of children in
primary classes in government, local body and government-aided schools.
From October 2002, the programme has been extended to children studying
under the Education Guarantee Scheme and in other alternative learning
centres. At present, 29 States and- UTs are providing cooked meals to about
5.85 crare children accounting for 55.4 per cent of the total target group of
about 11 crore children.

574

India 2005

During 2004-05, Mid-day Meal Scheme will be introduced in aU primary

schools in the country and the expansion of the programme to upper primary
and secondary will be implemented in a phased manner. This scheme is
mostly funded by Central Government.
The National Policy on Education (NPE, 1986) as revised in 1992 was
a landmark in the field of policy on women's education in that it recognised
the need to redress traditional gender imbalances in educational access and
achievement. The subsequent Plan of Action, 1992 stated that it was
impossible to achieve UEE unless concerted efforts were made to reach out
to the girl child. Specific steps taken so far in this direction include mandatory
recruitment of at least 50 per cent female teachers under Operation BJack
Board, a separate budget for girl's centres under Non-Formal Education
Scheme, EGS schools, bridge courses, back to school camps, residential camps
for out of school girls, Lok Jumbish (Rajasthan) to bridge the gender gap in
primary education, DPEP in low female literacy districts, Mahila Sanghas
under Mahila Samakhya Scheme for women's empowerment, a Scheme of
Free Education for Girl Child at Elementary Level (a component of SSA) and
residential schools under Kasturba Gandhi Swatantrata VidyaJaya which
specifically target the girl child in educationally backward districts/blocks.
Under Adult Education, Total Literacy Campaign (TLC) is the principal
strategy adopted by the National Literacy Mission (NLM) for eradication of
illiteracy in the country. The literacy campaigns are area specific, timebound
and are developed through voluntary, cost-effective and outcome-oriented
methods. The NLM aims to provide functional literacy to persons in the age
group af 15-35 years to threshold sustainable level of 75 per cent by the year
2005. So far, out of 600 districts, 190 had been covered under TLC, 1% under
PLP and 201 under continuing education programme. As such, 587 districts
had been covered under these schemes. According to the provisional results
of Census 2001, the literacy has increased from 52.21 per cent in 1991 to 65.38
per cent in 2001. The female literacy, which was 39.29 per cent in 1991, has
increased by 14.87 percentage points to 54.16 per cent in 2001 whereas, the
male literacy rate, which was 64.13 per cent in 1991 has risen by 11.72
percentage points to 75.85 per cent in 2001. Thus, female literacy has increased
at a faster rate than that for males. Spedal emphasis has been laid by NLM
on women's participation (60 per cent) in Literacy programmes.
Secondary education serves as a bridge between elementary and higher
education and prepares young persons between the age group of 14-18 for
entry into higher education.
The number of secondary schools in India increased from 7,416 in 195051 to 1,33,492 in 2001-02. The major thrust in the Tenth Five-Year Plan thus,
is to meet the increased demand for secondary education. lhe Plan will also
focus on revision of curricula with emphasis on vocationalisation and
employment-oriented courses, expansion and diversification of the open

Planning

575

learning system, reorganisation of teacher training and greater use of new

information and communication technologies, particularly computers.
The higher education system has seen a manifold increase in the number
of universities and an increase in the number of colleges since Independence.
At the beginning of 2002-03, the total number of students enrolled in the
formal system of education in the universities and colleges has been 88.21
Iakh 11.66 lakh in university departments and 76.55 lakh in the affiliated
(ollegcs. The main objectiw in the Tenth Plan is to raise the enrolment of
tht' population in the age group (18-23) in Highl'r Education from the present
six per cent to 10 per cent by the end of tht! Plan period.
The technical and management education has made a salutary contribution
to the country's economic and industrial dl'velopment. The number of
technical institutions has shown a phenomenal increase. In 1947, therl' were
only 46 engineering colleges and 53 polytechnics with an annual intake of
6,240 students. In 2001-02 there were, 838 Engineering/ Architecture colleges
Jnd 1,160 polytechnic institutes. As a result of the initiatives taken during
successive Plan periods, and particularly because of large-scale private sector
participation, the number of All-India Council of Tedmical Education (AICTE)
approved technical and management institutions has risen to 4,791 in 200102 with a total intake of 6.7 million students.
HEALTH AND FAMILY WELFARE

Improvement in the health and nutritional status of the population has been
one of the major thrust areas for the social development programmes of the
country. Over the last five decades, India has built up a vast health
infrastructure and manpower at primary, secondary and tertiary care in
government, voluntary and private sectors. Improvement in access to health
care services combined with technological advances in the field of health has
resulted in substantial improvement in health indices of the population and
a steep decline in mortality. However, there are wide intra-regional and intrastate disparity in health service coverage.
Some of the factors responsible for the poor functional status of the
health system are: (i) Mismatch between personnel and infrastructure; (ii) Lack
of Continuing Medical Education (CME) programmes for orientation and skill
llpgradation of the personnel; (iii) Lack of appropriate functional referral
system; and (iv) Absence of well established linkages between different
components of the system.
Some of the major initiatives taken in the Health Sector are: (i) Pradhan
Mantri Swastya Suraksha Yojana (PMSSY) has been initiated with the avowed
objective of providing specialty and super-specialty medical care in the
backward States, which have high incidence of morbidity and communicable
diseases. The imbalances in the availability of tertiary care hospitals/medical
colleges is also sought to ~ mitigated by ensuring high quality services to

576

India 2005

the uncatered areas. The concomitant thrust of the programme is to enhance

the quality of medical services as well. Under the programme, 6 AIIMS-like
Institutions are proposed to be established in the States of Bihar, Chhattisgarh,
Madhya Pradesh, Orissa, Rajasthan and Uttaranchal. One Medical College
each in the States of Andhra Pradesh, Jharkhand, Jammu and Kashmir,
Tamilnadu, Uttar Pradesh and West Bengal will also be upgraded to the level
and standard of AIIMS. The proposed scheme envisages an allocation of
Rs 4,180.86 crore spread up to 2011-12; (ii) With a view to improving the
Disease Surveil1ance Programme to ensure early detection of warning signals
of impending outbreaks, a comprehensive Disease Surveillance Programme
at the district level is being launched. It would facilitate the study of the
disease patterns including new emerging diseases and would provide data
to monitor programmes of the disease control and help in optimising
allocation resources; (iii) Hospital Infection Control and Waste Management
has been incorporated as an essential component of the health delivery
systems. National Hospital Waste Management Committee has been constituted
to co-ordinate and provide policy guidelines in this regard; (iv) Empowered
Action Group (EAG) - To bolster the efforts in improving the health delivery
systems in the backward states which manifest high fertility and mortality
rates, an Empowered Action Group has been set up in the Ministry of Health
and Family Welfare. The States included under the programme are: Bihar,
Uttar Pradesh, Madhya Pradesh, Rajasthan, Orissa, Uttaranchal, Jharkhand
and Chhattisgarh. The underlying objective is to promote environment for
provision of quality services particularly in terms of demographic indices. The
main activities undertaken are: capacity building and to ensure single window
clearance point for policy decisions and provision of special assistance; and
(v) Nutrition Pilot Project: In order to reduce the magnitude of undernutrition in adolescent girls and pregnant and lactating women, a Pilot Project
has been launched in 51 districts of the country. Two backward districts in
each of the major States and most populous districts have been taken up under
this programme. The Scheme envisages provision of free-of-cost foodgrains
to the identified families. An amount of Rs 141 crore has been earmarked
under this programme in the year 2004-05.
NATIONAL POPULATION POLICY, 2000
The immediate objective espoused in the National Population Policy, 2000 is
to meet all the unmet needs for contraception and health care for women and
children. The medium-term objective is to bring the Total Fertility Rate to
population replacement level 2.1 by 2010 and the long-term goal is to achieve
a stable population by 2045.
NATIONAL COMMISSION ON POPULATION
The National Commission on Population was constituted on 11 May 2000
under the Chairmanship of the Prime Minister to provide overall guidance
for population stabilisation by promoting synergy between demographic,
educational, environmental and developmental programmes.

J'Janning

577

The National Commission on Population ha!. undertaken vnriou~

initiatives for implementing the National Population Policy such ilS review
of t1w implementation of National hlmily Welfare Programm(' ('specially in
the high fertility States, identification of high fertility districts ilnd pn'piuation
of District Action Plans, selection of Social Economic and Dl'mographic
Indicators for monitoring purpose', promotion of policy-oriented relevant
research for population stabilisation and promotion of public private partnership
in meeting the unmet m'eds of family planning services.
Stabilising populatipn is an imperative rcquiTl.'ml'nt for promoting
d(.'velopment. The main problem concl'rned in the population
stabilisation in the short-term perspectivl' is the high-levels of unmet nel'ds
fOf contraception. in high fertility Statl's of Uttar Pradesh, Bihar, Rajasthan,
Madhya Pradesh and Orissa. The focus is on developing area-specific
approach for mecting the gap in the demand for contraception in Ihest' States.
~usti\inabll'

PJ\NCHAYATI RAJ INSTITUTIONS

1 he enactment of the 73rd Constitutional Amt'ndment Act, 19<,)2 marks a new
('ril in the federal democratic set-up of the country b('~towed constit~tional
~tdtus to the Panchayati Raj Institutions (PRIs). Pursuant to t.h{' Act, barring
thl' States of Jammu and Kashmir, National Capital ll.'rritory of Delhi and
llttclJ'<1l1chal, illl the States have enacted the neccssary legislation for setting
Ill' of strong, viable and rl'spllnsibll~ panchayats at different levels in their
fl'~r1('ctive Stiltes/Union Territories. In all the States panchayats have been
mnstitutcd according to new laws except in States of Arunachal Pradl'sh, NCT
of Delhi and Pondichcrry.
The Amendment Act contains provisions for devolution of powers ,ll1d
to the panchayats both for preparation of Plans for economic
d('veIopment and social justice and for implementation, in rl'lation to 29
subjl'cts listed in the Eleventh Schedule of the Constitution. Pursuant to this,
till' States are expected to devolve administrative and financial powers
il!ongwith the functionaries in respect to these 29 subjects to the PRIs. Only
few States like Kerala, Madhya Pradesh have made considerable progress
f(;'gMding devolution of powers. Most of the States have not yet transferred
tlw reqUisite staff and funds in respect of the subjects transferred to the
prtnchayats. Recognising the need for taking concrete action to empower PRIs,
the Government has set up an "Empowered Sub~Committee of National
Development Council on Financial and Administrative Empowerment of
PRls" to look into the whole gamut of issues related to devolution of powers,
functions and financial resources to the PRIs.
r('~ponsibiliti('s

At present panchayats receive funds from three sources, namely: (i) local
body grants as recommended by the Central Finance Commission; (U) funds
for implementation of centrally-sponsored schemes; and (iii) funds released
by State Governments on the recommendations of State Finance Commissions.
Further, States are required to enact laws to enable Panchayats to raise tax
and non-tax revenue so as to make them effective institutions.

578

India 2005

Tht' State Governments are required to constitute District Planning

Committc('s (Opes) as envisaged under Constitutional 74th Amendment Act
ilt th(' distnct level to facilitate the process of decentralised planning by
consolidating the development Plans prepared by the panchayats and
municipalities for the district as a whole covering both rural and urban areas.
According to Article 243 (A) of the Constitution, the Gram Sabha may
exercise such powers and perform such functions at the village level as the
It'gislature of a State may, by law provide. Most State Acts have vested in
the Gram Sabha responsibilities and functions such as: (I) supervising an'd
monitoring the functioning of the Gram Panchayats; (ii) approval of plans and
selection. of schemes, beneficiaries and locations; and (iii) mobilisation of
voluntary labour contributions in cash or kind for community welfare
programmes and to promote unity and harmony among all sections of society.
Of late, however, as a result of several initiatives of the Central Government
in partnership with State Governments a view has emerged which favours
strengthening of Gram Sabhas as the bedrock of democracy at the grass-roots
level.
The States have been requested to take the following measures to
empower the Gram Sabha : (i) to ensure that Gram Sabha should meet at least
once in each quarter preferably on Republic Day, Labour Day, Independence
Day and Gandhi Jayanti; (ii) vest powers in Gram Sabhas giving them powers
of ownership, management and control over natural resources, as envisaged
under the P},ovision of the Panchayats (Extension to the Scheduled Areas) Act,
1996; (iii) Gram Sabhas should have full powers for determining the priorities
for various programmes; (iv) Panchayats should be made accountable to the
Gram Sabha in unequivocal terms; (v) members of Gram Sabhas be made
aware of their powers and responsibilities and steps should be taken to ensure
mass participation, particularly of SCs/STs and women; and (vi) Gram Sabha
should have the powers to evolve its own procedures to carry out social audit
of development programmes.
The provisions of the Panchayats (Extension to the Scheduled Areas) Act,
1996 extends Panchayats to the tribal areas of nine States viz, Andhra Pradesh,
Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Maharashtra, Madhya
Pradesh, Orissa and Rajasthan. It strives to enable tribal society to assume
control over their own destiny to preserve and conserve their traditional rights
over natural resources. In the light of 73rd Constitutional Amendment Act,
the District Rural Development Agencies (ORDAs) are also being restructured
to work under the overall control an,d supervision of the Zilla Parishads.
SPECIAL AREA PROGRAMMES
Multi-Level Planning: MLP Division deals with Special Area programmes,
namely, Hill Area Development Programme (including Western Ghats
Programme) and Rashtriya Sam Vlkas Yojana.

Hill Area Development Programme (including Western Ghats Prograuru:ne):

This Programme is continuing since the Fifth Five-Year Plan. The aims and

Planning

579

objectives of the programme are eco-preservation and eco-restoration. This

Programme covers North Cachar and Karbi Anglong district of Assam,
Nilgiris district of Tamil Nadu and Sadar, Kurseong and Kalimpong SubDivisions of Darjeeling District of West Bengal under Hill Area Development
Programme and 159 talukas of Western Ghats Region comprising parts of
Maharashtra (62 talukas), Kamataka (40 talukas), Kerala (29 talukas). Tamil
Nadu (25 talukas) and Goa (3 talukas) under Western Ghats Development
Programme. The Programme is fully funded by the Centre. Special Central
Assistance is provided to the State Governments implementing the Programme
in the form of 90 per cent grant and 10 per cent loan.
Rashtriya Sam Vilms Yojana : The Rashtriya Sam Vikas Yojana launched by
thl' Planning Commission during 2003-04 has three components, namely,
(i) Special Plan for Bihar; (ii) Special Plan for the KBK Districts of Orissa;
and (iii) Backward Districts Initiative. This Programme is fully funded by the
Centre and Special Central Assistance is provided to the implementing States
in the form of cent per cent grant.
Special Plan for Bihar: The Special Plan has been formulated, in consultation
with the State Government of Bihar, to bring about improvement in sectors
likE' power, road connectivity, irrigation, horticulture, forestry and watershed
development. The following projects with an estimated cost of Rs 2,531.35
crore have been identified for implementation during the Tenth Plan:
(i) Million Shallow Tubewell .Programme (Subsidy component) (Rs 578.28
crore); (ii) Strengthening of sub-transmission system (Rs 365 crore);
(iii) Restoration of Eastern Gandak Canal (Rs 294 crore); (iv) Development
of State Highways (Rs 846.29 crore); (v) Development of J:lorticulture (Subsidy
Component) Rs 36.78 crore); (vi) Integrated Watershed Development Programme
(Rs 60 crore); and (vii) Integrated Community-based Forest Management
(Rs 351 crore). The schemes will be implemented by the Agencies identified
by the Planning Commission with the State Government's concurrence. The
implementation of projects identified will be supervised and monitored by
the concerned Central Ministry which will also be responsible for ensuring
observance of due giligence with regard to technical and administrative
requirements by the Government of Bihar and the implementing agency. The
concerned Central Ministry will also recommend the release of funds to
Planning Commission after assessing the requirements based on progress of
the projects. The projects will be reviewed by the Planning Commission on
quarterly basis.
.
Special Plan for the undivided ICalahandi-Bolangir-Koraput (KBK) Districts
of Orissa: The undivided districts of Kalahandi, Bolangir and Koraput,
popularly known as KBK districts, have since been divided into eight districts,
namely, Kalahandi~ Nuapada, Bolangir, Sonepur, Koraput, Malkangiri,
N~warangpur and Rayagada. The Special Plan for the undivided KBK
~lstricts of Orissa focuses on tackling the main problems of drought proofing,
hvelihood support, connectivity, health, education, etC.
Backward Diatric:ts Initiative: The Backward Districts Initiative covers 100

India 2005
h.ll'kw,lni districts idl'ntified on thl' basis of an index of backwardness
comprising Ihn't' pMdmders with equal weights to each, namely, (i) value of
lIutput pef dgricultural worker; (ii) agriculture wage rate; and (iii) percentage
of SC 1ST J'Opuliltion of the districts. In addition, 32 districts affected by
socit't.,l extremism have also been covered. For each district, a Plan has to
be pn'parl'd and Special Central Assistance at the rate of Rs 15 crore per year
for thrl't' years will be provided for approved schemes. In the first year of
thl~ initiatiw, the State Governments were requested to prepare Plans for 66
districts. Plans for 55 districts were approved by the Empowered Committee.
Tht' thrust are,1S of the District PI,ms in respect of districts covered under
thl' Backward Districts Initiative are : (i) Irrigation, (ii) education, (iii)
agncultlire, (iv) wi:ld connectivity, and (v) livelihood support, (vi) capacity
huild ing ,lilt! training, etc.
/

SOCIAL WELFARE
TIll' Ministry of Social Justice and Empowerment in coordination with the
Planning Commission and State Governments has been working towards the
mainstreaming of the disadvantaged and marginalised section of the society.
fhe objective is to empower the target groups through their educational,
economic and social development and to bring them on par with rest of the
society.
The Social Welfare Division continued its efforts towards fulfilling the
li._nth Plan commitments of - (i) Empowering Persons with Disabilities, (locomotor, vis~aL hearing, speech and menta! disabilities); (ii) Reforming the

Socldl Deviants who come in conflict with law (juvenile delinquents/ vagrants,
drug addicts, alcoholics, sex workers, beggars, etc.); and (iii) Caring for the
Other Disadvantaged (the aged, children in distress such as Street Children,
orphcl11ed/abandoned children, etc.), through effective coordination with the
Ministry of Social Justice and Empowerment and other related Ministries and
Department/Stat( Governments/VTs to ensure the efficient implementation
of various policies and programmes for these target groups.
Person With Disabilities (PWD) are defined as those suffering from four
types of disabilities viz., Visual, loco-motor, hearing and speech and mental
disabilities. In the Ninth Plan (1992-97), the earlier paradigm shift in approach
from "welfare" to development was moved further to "empowerment" which
is more holistic by including both welfare and development perspective. The
major thrust in the Tenth Plan has been to consolidate and strengthen the
various programmes through coordinated efforts and innovative interventions
in attending to the special problems and needs of these disadvantaged groups.
One of the thrust areas during the Tenth Plan has been to prepare disabledfriendly policies to create hurdle-free environment for the person with
disabilities.
To optimise the use of available resources and achieve synergy and
convergence in functioning, the Planning Commission has taken up an indepth exercise on the rationalisation, convergence, merging and weeding out

['tanning

581

the on-going schemes in the social welfare sector being implemented by

the Ministry of Social Justice and Empowerment. The outcome of this exercise
WdS discussed m the Core Committee on Zero Based Budgeting of Central
,md Centrally-Sponsored Schemes. In accordance with the decisions of the
lOfe Committee, the 39 schemes (36 CS and three CSS) implemented during
the Ninth Plan, have rationally been reduced to only 16 schemes (15 CS +
lme C5S) and retained in the Tenth Plan.

of

There are 10 CS on going schemes for the welfare of the disabled during
the Tt'nth Plan with an outlay of Rs 1,465.40 crore.
There are five Schemes for Social Defence and other disadvantaged
group with an outlay of Rs 538.60 crore. The total outlay for the Tenth Plan
fllr Social Welfare Sector has been kept at Rs 2,004 crore.
Recognising the complementing/supporting role played by the voluntary
organisations in the welfare sector, majority of the schemes/programmes have
bel'n implemented with fult or partial involvement of the NGOs.
Tribal Development Sector: The Government continues its efforts for the
welfare and development of Scheduled Tribes, who constit~~~h~_ cent
of the total population of the country. Of these, 1.8 million belong to Primitive
Tribal Groups (PTGs).
The objective of the Tenth Plan and Annual Plan 2004-05 is for
empowering scheduled tribes through a three-pronged strategy of Social
Empowerment, Economic Empowerment and Social Justice. During the Tenth
Five- YCi\T Plan, an amount of Rs 5,754 crore was approved as plan outlay and
fur Annual Plan 2004-05, Rs 1,146 crore has been proposed.
The Tribal Sub-Plan strategy adopted during the Fifth Plan is being
implemented by the Centre as well as the State Governments through various
schemes. In addition to Special Central Assistance to Tribal Sub-Plan, Grants
clre also being provided to the State Governments to implement specific
schemes for the welfare and development of Scheduled Tribes.
The National Scheduled Tribes Finance and Development Corporation
has been set up to give focused attention to the economic development of
tribals.Rs 35.50 crore has been allocated for Annual Plan 2004-05.
Socially Disadvantaged Groups: The process of empowering the
disadvantaged groups of SCs, OBCs and Minoritie's will continue in more
intensified and effective manner in the Annual Plan 2004-05. The SCs account
for 166.58 million, representing 16.3 per cent and Minorities number about
188.9 million, representint!~.4 per cent of the c~untry's population (estima~d)
In 2001. Social Empowerment amongst the dlSadvantaged groups is bemg
carried out through reduction programmes and through removal of prevailing
inequalities, disparities besides providing access to other Basic Minimum
Services. Educational development is being carried out through the
implementation of schemes like Post and Pre-mattic Scholarships, Hostels and
allied Coaching Schemes, .

582

India 2005

Special Central Assistance (SCA) to Special Component Plan (SCP) for

SCs is being extended as 100 per cent grant to States/UTs to fill the critical
gaps and missing inputs in family oriented income generating schemes with
supporting infrastructure development having focus on BPL families. National
\\ ./ Finance an_c! ~'{~lopment Corpora_!ion.s for weaker sections have ~ set up
exclusively at the natloiiaTreveffc.lr the disadvantaged groups for micro-credit,
employment, income generating schemes and skill up-gradiation. These
include: (i) National Scheduled Caste Finance and Development Corporation;
(ii) National Safai Karamchari Finance and Development Corporation;
(iii) National Minorities Development and Finance Corporation; and (iv)
National Backward Classes Finance and Development Corporation besides the
State level Scheduled Castes Development Corporations.
URBAN DEVELOPMENT
Towns and cities act as nodal centres for services in marketing, health-care,
education, and also in opening a window to the wider world. The 74th
Constitutional Amendment, with its provisions to decentralise the responsibility
for urban management, is intended to increase the participation of the people
and accountability in administration. However, the challenge to be met in the
Tenth Plan period is to assist the elected bodies to grow organisationally to
fulfill the demands of urban residents for a quality life at par with world
standards. Substantial work has already been done to upgrade the urban
infrastructure and urban development authorities have acquired considerable,
skills in planning and executing projects. Programmes such a~ the Mega City
project for the selected cities, the Integrated Development of Small and
Medium Towns (I05MT), and the Accelerated Urban Water Supply Programme
(AUWSP) have shown varying degrees of success in meeting some of the
urban needs.
Keeping the needs of reform in the urban sector in view, a new scheme
of Additional Central Assistance in the form of incentives to States to
undertake a package of reform measures, is being implemented under the
Urban Reforms Incentive Fund. The reform measures relate to repeal of the
urban land ceiling legislation, reform of rent control, levy of user charges,
improved implementation of property tax, upgradation of musical accounting
standards, lowering of high rates of stamp duty, and computerisation of
registration of property transactions, to be followed by further measures in
land policy, municipal legislation, Simplification of building regulations, and
initiation of public private partnerships in provision of civic services. Further,
a City Challenge Fund was announced in the Union Budget 2002-03 and is
in the process of being deSigned. Similarly, a scheme of credit enhancement
and facilitation of pooling of financial needs of the smaller towns, will be taken
up under the Pooled Finance Development Fund.
Adequacy of transport network help in diversifying economic activities,
increase in production and expansion of trade and commerce, etc., thus
contributing to overall per capita GOP growth. The only major programme
in operation in this sector is the Delhi Mass Rapid Transit System with soft

Planning

583

loan assistance from IBIC. The funds are made available to the (Delhi Metro
Rail Corporation as pass-through assistance, which is included in the
budgetary resources of the Ministry of Urban Development and Poverty
Alleviation. The project is scheduled for completion in March 2006.
TELECOM SECTOR

The telcom .:;ector in India has undergone a series of structural and institutional
reforms since 1991. New Telecom Policy, 1999 has laid down the basic
framework for the future development and growth of telecom in the country.
Following this basic approach, the major objectives envisaged in the Tenth
Fi Vl'- Year Plan include : (i) Affordable and effective conununication facilities
to all citizens; (ii) Provision of universal service to all uncovered areas,
including rural areas; (iii) Building a modem and efncient teleconununications
infrastructure to meet. the convergence of telecom, IT and the media;
(iv) Transformation of the teleconununications sector to a greater competitive
environment providing equal opportunities and level playing field for all the
players; (v) Strengthening research and development efforts in the country;
(vi) Achieving efficiency and transparency in spectrum management;
(vii) Protecting the defence and security interests of the country; (viii) Enabling
lndian telecom companies to become truly global players. Towards fulfillment
of these objectives, it is envisaged to provide 650 lakh new telephone
connections during the plan period for achieving a tele-density of 9.91 by end
of March 2007. The public sector is expected to provide about 395 lakh
additional connections; the balance to be contributed by the private sector.
During 2003-04 the network grew from 546.20 lakh connections to 765.40
connections; this enabled the country to achieve a tele-density of 7.02 on allIndia basis with a high tele-density of 20.74 in the urban areas and a low
figure of 1.57 in rural areas. A net addition of 219.20 lakh new connections.
The distribution of growth of telecom services is heavily skewed in favour
of mobile telephones. Mobiles phones grew at the rate of 159.20 per cent as
against three per cent growth of the' basic services. The share of mobile
connections was about 34.17 per cent as on 31 March 2004. The same figure
works out to 40 per cent when WLL services are included. Rural connectivity
is one of the primary areas of the Tenth Plan.
Out of 6.07 lakh villages, only 5.22 lakh villages have been covered so
fM with Village Public Telephone progranune (VPT). In order to give a boost
to rural connectivity, the Government has operationalised Universal Service
Fund (USF) by making necessary amendments in Indian Telegraph Act; 1885.
Unified Acces:; Service Licence (UASL) is another major policy framework
initiated during the year.

POSTAL SECI'OR
The Department of posts is one of the largest public sector employer in the
country employing about 5.71akh persons equally divided between permanent.
employees' and extra departmental employees. The Department incurs a

584

India 2005

revenue expenditure of Rs 5,508.51 crore (2003-04 BE) with a revenue deficit

of Rs 1,308.51 crore. Plan outlay constitutes a very small fraction of the total
expenditure and was Rs 95 crore for (2002-03 RE), i.e., 1.76 per cent of the
revenue expenditure. The entire plan outlay is funded through budgetary

siippllrf. .- .. ......-.

Several measures have been introduced to optimise retailing capacity

and outreach to provide several new value-added services. Technology
upgradation and modernisation of Postal network forms the corner stone of
the plan strategy envisaged for the Tenth Plan. A comprehensive programme
of computerisation and connectivity is being undertaken at an estimated cost
of Rs 836.27 crore during the Tenth Plan.
INFORMATION TECHNOLOGY
The Indian software and services industry exported Rs 46,100 crore (US$ 9.55
billion) against a target of R., 54,000 crore in 2002-03. This segment is expected
to record a robust growth in 2003-04 with the total value touching would be
Rs 55,510 crore. The electronics and the IT hardware industry is likely to grow
by about -9 to 12 per cent during 2003-04. The fastest growing segment of
the IT industry, i.e., ITES-BrO industry is likely to grow by about 54 per cent
in 2003-04 compared to 59 per cent in 2002-03.
The contribution of IT in the export sector and for providing employment
is also very significant. The IT software and services industry is expected to
account for about 2.64 per cent of India's GDP and 21.3 per cent of exports
during 2003-04. The employment in IT industry is estimated to be about 8.14
lakh by March 2004-2.6 lakh in the software services and exports; 2.5 lakh
in ITES-BPO segment and about three lakh in the domestic software, hardware
and user organisation. The number of IT and ITES profes~ionals employed
in India is estimated at 8,13,500 by March 2004 of which 2,60,000 were in
the software services and exports industry; nearly 2,45,500 in ITES-BPO sector;
28,000 in domestic software market and over 2,80,000 in users organisations.
INFORMATION AND BROADCASTING
The activities of Information and Broadcasting (I&B) Sector cover three areas,
viz., Broadcasting (Doordarshan and All India Radio), Information and Film
Sector with the functions of each complementing the other. Many means of
communication deployed in the past to reach the large segment of the
population either became outdated or underwent radical technological changes,
and yet goals like providing the people with development information and
wholesome entertainment at a minimal cost, facilitating healthy growth and
competition within the sector remained as valid as ever. It is noteworthy that
both DD and AIR have made substantial progress in terms of geographical
and population coveragl'. This has necessitated a review of the chalJenges
facing the sector and reworking of priorities for the Tenth. .Five-Year Plan .
Some of the policy initiatives taken by the Government are, to encourage
adoption of alternative technologies that enable increased and improved
access to public and private broadcasters at affordable cost for the common

Planning

585

man and to allow setting up of Low Power Community Radio Stations in

FM mode by local communities including non-profit organisations such as
Universities, NGOs, etc., for educational, cultural and economic development
of the respective communities. Stress has been given by introducing Special
Packages to improve TV and Radio services in J and K and North-East States
induding Sikkim and Island Territories.
An outlay of Rs 5,130 crore has been approved for the 18tB sector with
a budgetrary support of Rs 2,380 crore for the Tenth Plan. The Annual Plan
(200405) outldY for the sector has been kept at Rs 955 crore with the breakup for each sector Broadcasting. Information and Film are Rs 897.10 crore,
Rs 32 crore and Rs 25.90 crore respectively, having total Budgetary support
as Rs 480 crore for the year.
TRANSPORT SECTOR

Railways and roads are the dominant means of transport carrying more than
95 pef cent of the total traffic generated in the country. The transport sector
has expanded manifolds in the first 50 years of planned development, both
in terms of spread and capacity.
Railways : The Indian Railways has completed 150 years of service to the
nation in May 2002. Railways, with a capital base of about Rs 55,000 crore
and a network of about 63,OOO-route km, is the principal mode of transpoitation
for bulk freight and long distance passenger traffic. The main thrust in the
Tenth Plan is on the capacity expansion through modernisation and
technological upgradation of railways system, improvement in quality of
service, rationalisation of tariff in order to improve the share of rail freight
traffic in the total traffic and to improve safety and reliability of railway
services.
Roads : The Tenth Plan thrust is on improving accessibility, capacity and
riding quality of roads; removing deficiencies in the existing road network;
revamping maintenance practices; augmenting resources for road development
through private sector participation and levy of user charges.
Ports : The ports act as trans-shipment point between water transport and
service transport and, therefore, playa crucial role in the transportation system
for facilitating international trade. There are 12 major ports and 184 minor /
intermediate ports along India's 5,560 km coastline. The major ports handle
about 75 per cent of the port traffic of the country and remaining 25 per cent
is handled by minor/State ports.
The thrust in the Tenth Plan is on creation of general and bulk cargo
handling facilities with focus on container traffic and improvement in the
efficiency and productivity through private sector participation by introduction
of organisational charges and rationalisation of manning scales.
Inland Water Transport (IWT) : IWT is an energy efficient, en,{ironmentally
clean and economical mode of transport. India is richly endowed with
waterways comprising river systems and canals. It is estimated that total of

586

India 2005

14,544 km of waterways could be used for passenger and cargo movement.

However, capacity of the sector is grossly under-utilised as most navigable
waterways suffer from hazards like shallow water and narrow width of
channel during dry weather, silting of river beds and erosion of banks, absence
of adequate infrastructure facilities like terminals for loading and breathing
and surface road links.
The thrust in the Tenth Plan is on development of infrastructure facilities
with a focus on North-East region and private sector participation so that there
is a gradual shift of domestic cargo from rail and road modes to inland water
transport, increasing its share from the present level of less than one per cent
to at le(\st two per cent.
Civil Aviation: Civil Aviation, the fastest mode of transport for movement
of passenger and cargo traffic, is broadly structured into three distinct
functional entities, viz., regulatory, cum-development, operational and
infrastructure. The main objective of the Civil Aviation development in the
Tenth Plan is to provide world class infrastructure facilities and efficient, safe
and reliable air services to meet domestic and intemational travel needs of
trade and tourism.
TOURISM
The Tenth Plan approach towards tourism signifies a distinct shift from the
approach adopted in earlier Plans. Apart from acknowledging the traditionally
recognised 'advantages of developing tourism for the promotion of national
integration, intemational understanding and the eaming of foreign exchange,
the Tenth Plan recognises the vast employment generating potential of tourism
and the role it can play in furthering the socio-economic objectives of the Plan.
The travel and tourism sector creates more jobs per million rupees of
investment than any other sector of the economy and is capable of providing
employment to a wide spectrum of job seekers from the unskilled to the
specialised even in the remote parts of the country.
The new tourism policy envisages a framework, which is governmentled, private-sector driven and oriented towards community welfare, with the
Govemment creating the legislative framework and basic infrastructure for
tourism development, the private sector providing the quality products and
the community prOViding active support. The new policy is being achieved
through five key strategic objectives, viz., (i) positioning tourism as a national
priority; (ii) enhancing India's competitiveness as a tourist destination;
(iii) improving and expanding product development; (iv) creation of world
class infrastructure; and (v) effective marketing plans and programmes.
VOLUNTARY SBCI'OR

After a decision of the Committee of Secretaries (COS) in 2000 to declare the

Planing Commission as the nodal agency for coordinating the interface
between the Government and voluntary sector, the Voluntary Action Cell was
established in the Planning Commission.

Planning

587

As the nodal agency, the first task assigned to the Planning Commission
is to create an exhaustive database of VO /NGOs in consultation with the
concerned Central Ministries and Departments. Information on about 16,000
VOs/NGOs, as 31 May 2004, who have received grants from different
Ministries/Departments is available on the website of Planning Commission.
In addition, Planning Commission is concerned with broad policy issues
relating to voluntary sector. A Steering Committee on Voluntary Sector was
set up for the Tenth Five-Year Plan (2002-07) on 5 February 2001. Based on
the recommendations of the Steering Group on Voluntary sector in Nation
Building held in April 2002, a set of Guidelines of facilitating a role for NGOs
were prepared. These Guidelines have been issued to the State Governments
and concerned Central Ministries/Departments.
There is a Joint Machinery OM) on Collaborative Relationship between
VOs and Government set up in 1994, under the Chairmanship of Deputy
Chairman, Planning Commission. The JM had been reconstituted in 2003, to
ex'pand representation. On the recommendation of the JM, a Draft National
Policy on Voluntary Sector has been prepared. Comments on the revised Draft
Policy are being elicited from the concerned quarters, before finalising the
Draft Policy.
ENVIRONMENT AND FoREsTS
A National Action Plan for Operationalising Clean Development Mechanism
(COM) in India has been prepared under the aegis of the Planning Commission.
The Report encourages Indian Industries to reduce the Green House Gas
(GHG) Emissions and' thereby earn Certified Emissions Reductions (CERs),
which can be traded in an international market. The developed countries
would purchase these CERs from the developing ones to meet their GHG
mitigation targets by 2008-12 (first cOJpmitment period).

Cleaning of major rivers by 2007 is one of the monitorable targets under

Tenth Plan. With a view to improve the water quality I;>f major rivers in the
country under National River Conservation Plan (NRCP) various activities are
being undertaken during Tenth Plan. NRCP presently, includes river pollution
abatement works in 157 towns along 31 polluted stretches of rivers spread
over 18 states. About 2,780 million litres per day (MLD) of sewage treatment
capacity has been sanctioned so far against the target of 5,435 MLD and the
STP capacity created till date is 1,045 MLD.
'
The target of increasing the existing 23.03 per cent tree/forest cover of
the country to 25 per cent is another monitorable target in the Tenth Five Year
Plan. This task is to be performed through National Afforestation Programme
(NAP) of the MiniStry of Environment and Forests by creation of 750 Forest
Development Agencies covering all the Forest/Wildlife Divisions in the
country. During the first two years of the Plan period, 416 afforestation projects
Were sancRoned involving an area of 6.43. lakh hectares.
For ensuring improvement and sustainability of forests integration of

588

India 2005

forest produce with rural employment through value addition of bamboo ha!>
been mooted under the proposed National Mission on Bamboo Technology
and Trade Development. Agriculture Ministry will play the nodal role in its
implementation.
As recommended by the Committee on Development of Bio-fueb
constituted in the Planning Commission, steps are being taken for strengthening
of ongoing programme of blending of ethanol with gasoline and launching
of a National Mission on Bio-Diesel. The Ministry of Ruraf Development hi\~
been advised to play the nodal role in the implementation of the propost'd
Mission. The Mission will address the problems of Energy Security, Employment
Generation, Poverty Alleviation, Clean Environment and Greening of
Wastelands through plantation of Jatr()pha Curcas as basic raw material for
production of Bio-diesel for blending with petro-diesel thereby saving preciolls
fort'ign exchange too.
PEO
Programme Evaluation Organisation (PEO) undertakes evaluation of select('d
programmes/schemes under implementation, as per requirements of thl'
Planning Commission and Ministries/Departments of GOVl'rnment of India
The evaluation studies are designed to assess the performance, process of
implementation, effectiveness of the delivery system and impact of programml:'s.
PEO also provides technical guidance and assistance to various Ministries in
f'vallhlting the on-going programmes. It also shares its .experience in
dtvelopment evaluation with various govenlment agencies through training
programmes, seminars, scrutiny of research proposals and other modes of
interactions. PEO has so far conducted 188 studies/activities, and ther(' arl'
17, ongoing studies.

PROGRAMME IMPLEMENTATION
MONITORING OF INFRASTRUCTURE SECTORS
The Infrastructure and Project Monitoring Division (IPMD) in the Ministry
of Statistics and Programme Implementation monitors the performance of
country's eleven key infrastructure sectors, namely, Power, Coal, Steel,
Railways, Shipping and Ports, Telecommunications, Cement, Fertilisers,
Pt:'troleum, Road and Civil Aviation. It prepares and submits monthly Review
Reports and Capsule reports on the performance of infrastructure sectors,
inter-alia, to the Prime Minister's Office and the Cabinet Secretariat. The
growth rate in respect of each infrastructure sector since 1997-98 and the
production/achievement during 2003-04 is given in the table 22.1
MONITORING OF TWENTY-POINT PROGRAMME
The Twenty-Point Programme (TPP) was conceived for coordinated and
intensive monitoring of a number of schemes implemented by the Central
Government and the State Governments with the objective of improving the

I'tanning

589

quality of life of the people, especially those living below the poverty-line.
H W,)S meant to givC' a thrust to schemes rplating to poverty alleviation,
l'lllplllvmcnt generation in rural arCilS, housing, education, f"mily welf"rc and
Ill'illth, protection of environment and many other sci1<.'ll1es having a bearing
(\11 till' quality of life in the rural an'"s. The programme was initi"ted in the
\'l',\I" JY75 and restructllrl'd in 19R2 and again in 1980.
The present programn1l', known as TPP-86, comprises 119 items, out of
which S4 arl' monitored on the basis of evaluatory criteria ilnd 65 against pr(',!'l f)llvsic.ll tdfgE'tS. ()f tlw 1,lter, 20 important it('m~ have bl'('n sl'lf.'ch'd for
1l1l1!lit(lring on " monthly hilSi~. The tiUgets are fjx!'d by tl1' i\(hnini~trativp
Mil\l"lries at tlU' Cf'ntre in nmsultcitillll with tht' Stale Covt'rnmlmts/Union
"'" dories on tlw basis of budgetary outlays. Whill' ~(lnw of the sdwmcs i\fl'
Cl'lltf,)lly-sponsoreti, requiring contribution from the Siale Governments, thcft,
.trl .1 h'w, which are fund('d iully by the Central ";l)Vl'rnment.
MONITORING DESIGN AT THE CENTRE
/\ I lilt' (. "cntral Government ]('vl'l, tl1' progress is mOllilort'd ilnd revit'wed both
b\ Ihe Departments/Ministries concerned and the l\1inl~lry of Statistics and
]'rogr,llnm(' Implementation (MOSPl). While thl' administrative Mi.nistries
monitor thl' spec}fic sdu~m('s tlw)' iue responsible fo[, this Ministry monitors
llw whole gamut of the schemes included in the l'rogr<lrnnll'.

Thl' Ministry brings out Monthly and Yearly Progr(,ss I~l'port on til!'
implementation of the programme. The pl~rformanCl' of the 20 crucial items
(It tl1l' Twenty-Point Progr",nmt' monitorl'd on monthly basis for t1w ICl~t three
\'('ar~, i.e., 2001-02, 2002-03 ilnd 2003-04 is given in tilblt' 22.2.

MEMBER OF PARLIAMENT LOCAL AREA DEVELOPMENT

SCHEME
The Members of Parliament an.' often "pproaciwd by their constituents for
lilking up sm,,11 developn1l'ntill works of capitill 1l<ltLIrl' in their respective
constituencies. The nped was fell for a l11l'chanism to r('spolla to stich requests.
Thl' Ml'mber of Parliament Local Area Devdopment Scheme (MPLADS) was
accordingly announced in the Parliament on 23 Dt'cember 1993.
The scheme was initially administered by the Ministry of Rural
DI'VPJopment. The subject was latN on transferred to the then Department
of Programme Implementation, Ministry of Planning and Programnw
Implementation (now known as Ministry of St"tistics and Programme
Implementation) in October 1994.
The Scheme is governed by a set 0f Guidelin(;~s. The Guidelines hav('

bl'pn revised from time to time based on suggestions rc~eived. Under the
SCheme, each Member of Parliament may suggest to the HCCld of the District.
works to the tune of Rs two crore per year to bl' taken lip in his/h('f
constituency. Elected Members of Rajya Sabha may sdect works for

590

India 2005

....

M
....

.....

..... oU')..,.o

..,.

CON
C..g

r-.:M .....
NoO 00

....

'-OOfl")01""'t

~r;4'7~O

r-.:

.,...,.

t')

-DU')

~~

.C

~ ~

...

.....

...

c:i

- ap

ori

........

Planning

591

........

''>C

r-:....

'0

..r
....
....

....

00

....

, ....

....

~
....

'N
II')

c:

;:::J

c 0.

._

&,2

II'i

....

II')

8....

542

India 2005

impkml.'nti\tion anywhl'rt' in the State from which they are elected. Nominated
Members of tht' Lok Sabha and Rajya Sabha may select works for
irnpll'm'ntation anywlwre in the country.
Sonw of the salient features of the Scheme Mt' : (a) The works under
thl' Scheme shall be d('velopmental in nature, for creation of durable assets,
bil~('d on the locally felt needs; (b) Each work suggested undl'r the scheme
~hl)lIJd not, normally cost more than Rs 25 lakh; (c) MPLADS funds can be
"hdrl'd with funds from other sources providl'd tlMt such sharing of fund"
lI.',lds to "ompll'tion of the work imd is with reference to cle.uly idt'ntifiabie
I'M! ()f tilt' work; (d) MPs can contribute MPI.ADS funds outside their
colbtltuency /Stat!.' for rt'habilitation works, pl'nnissible in the Cuiddines in
tIlt' e\"l'nt of natural calelmity of rare severity for an amount up to Rs 25 Ielkh
for (,dch "alamity; (e) Public utility works of rt'gisll'rcd Societies/Trusts subj('c!
to ("('rtdin conditions Idid down in the guiddllll'~ Me also pl'rmi~"iblf';
(f) l.'l'rt,lin work!- MI' not pl'rmittl'd under tht, scJWIll!' SlIch as officl' buildings,
1'1In'h,lsl' pf invl'ntory or stock of dlly type, f('p,lir., ilnd mdinh'nill1Ct' w(lrk~
Mid l'f('iI!i(l11 of elSsl'ls for individuill bendih.
The SChl'flll' hdS melde a good impact in catering to the devdopl1lent,t1
of the people. A variety of works have come up for thl' bl'lwfit 01 gt'rwr.li
public elt large. rh('s(' include construction of school buildings. librdl'll'"
pJ'(l\'i~,i()n of drinking Wdtl'f faciliti('~ including wdter tank('f;;. C(lll"trudioll (It
f(l.ld,>. bridges, sporb st,ldid, cOlnmunity centres, Crell1<ltllriil. puhl., toild,
dl\lin'i, footpaths, bus ~tnps dlHI provision of dectricity, inst.llJatipn "I
l'l1111pute[S in (;ovl'rnment dnd Covemml'nt aided 5chools/ C(lllt'gl's/ educ.lt 'I ,I
il1<;titutillns for till' bl'nl'iit of students community.
11l'('cl"

I.

I,

A st.ttl'ment showing the funds released by Covernment und,'r lilt

SCht'IlIl', cost of works sanctioned by the I'espl'divl' District Ht'<lds ,1IIli thl'
l'''pt'nditufl' incurnd lip to JI M<lCch 200.t towards tl", irnplt'llIl'ntdttr,l)'1 ("
\...orks rl'comnll'ntied by Mrs of Lok S"b11cl elnd J{,ljYd Sclbhd, St.llt' W 1';(' I
~;i\'t'n ill Table 22.3.

~Ianning

593

TABLE 22.3 : SUMMARY STATEMENT FOR RELEASE/EXPENOITURE

UNDER MPLADS OF LOK SABHA & RAJYA SABHA MPS
(AS ON 31 MARCH 2003)
(Rs in lalc.h)

.;1

NaillI' of State/UT

No

Release
by G.O.!

Amount
sanctioned

Sanction
over Releas<'

Exp"llliiture U tilisa tion

over Releast
incurrt'd

Nominated

13,600

12,464.4

':11.7%

lO,619})

78.1%

Andhra Pradesh

82,695

111,112.0

':III. lUlu

6(,.700.0

!lO.7"\'

Arunachal

4,215

422!1.7

100.3%

3MI!I.9

'JO.h4~~.

.j

A,sam

28,555

26,944.11

94.4'Yo

23.217,7

111,3 ....

<_;O~

77,235
3,615

73,783.1
3,616.1

95.5%
100.00;.

60,151.1
2,912.4

7 4 0,n/
Sll.h";,

7. GUJ<lrat

4':1,335

46,11':18.11

95.1%

37,126.'1

75.:~t}'"

H. Hary<lIM

20,525

20,155.4

9!1.2%

18,103.9

HII.2",i.

':1,335

8,200.6

87.8%

7,557.4

111.0%

r .."desh

S Bihar
h.

Himachal Pradesh

III J & K

10,650

9,899.6

93.0%

66695

62.b';I"

54,000

.0;1,874.2

96.1%

n,1l70.<J

81.2')"

12 K.'r,ll,1

38,4'15

38,033.2

97.5%

26,762.4

6N.6(~~)

1.1

55,860

53,445.2

95.7%

46,757.9

83.TX,

89,875

87,956.6

74.6/0

4146.2

97.9%
98.4 u/"

67,018.0

4,215

3,h28.7

8(J.]'\(,

III "'I"gh,llaYd

3,915

3,540.5

90.4%

3,526.5

'10.1%

17

2,1110

2,7711.7

911.9%

2,778.7

'111.'1')'0

2,710

2,610.0

%.3%

2,610.0

96.3%
67.6%

11

K~rniltilkil

M,ldhY,1 Pradesh

II \1.lil,lr,lshtra
I; M,II11l'lIr

t\ 1llllr.un

I H ,""Ig.llilnd
1'1

( )n\.i~(l

41,700

39,153.7

93.9%

211,186.6

~o

[\IIII,ln

25,605

24,508.5

95.7%

19,759.2

77,2~{)

~I

[<,lJrlslh,lIl

411,12<;

46,654.2

96.9%

41,053.9

115.3%

2~

~Ikklm

2,Il10

2,1128.7

l00.7'l'.

2,512.6

119.4%

21

lamJi N<ldu

78,535

77,172.6

98.3%

70,110.8

89.3"10'

cI

Iripllrit

4,115

3,9110.1

96.7%

2,'H5.6

70.9'r"

1,52,670

1,44,317.'1

1,14.5%

1,23,325.4

110.11%

71,6115

611,251.6

95.2%

49,3,6Q.8

1i!!.9%

" & N Islallds

1,205

1,223.8

101.6%

872.7

72.4%

Ch.lndigarh

1.205

1,131.6

9:1,9%

773,6

64,2%

7!) [) & N II<lvl'li

1.405

1,433.6

102.()%

1,132. t

80.6%
100.2'%,

_)';

l'lt.u I'rade~h

2h

W('st Beng<ll

'."

!H

'111

D,ll1lall & Dill

\J

D('lhi

3] Lllc.sIMdw('t.'p
\1

1,405

1,407.3

100.2%

1,407.3

11,995

11,4](1.7

95.2'Yo

8,656.2

72.2%

l.205

1,223.2

101.5%

1377.7

12.8%

I.. 'lid i('herry

2,IUO

2,938.3

104.6%

2,255.9

110.3%

Chlldltisgilrh

20,165

19,257.0

95.5%

17,49{).7

86.7%

15

lJU.u.lnchal

9,425

8,596.5

91,.2%

7,109.3

75.4%

1(,

IhMlc.hal\d

21,575

19,897.9

92.2%

15,630.3

72.4;',

10,49,780 10,07,081.2

95.9%

8,27,270.2

78.8%

Total

23 Rural Development
OWING to the realisation, that economic development and commendabll'
advances made by the nation in diverse fields would in reality be meaningless,
if they fail to translate into better and dignified life for the majority living in
rural India, the focus has shifted towards development in rural areas over the
past few years, so that the nation is able to realise its potential and SeCure
a rightful place in the comity of nations as 'proud and prosperous India'.
The Ministry of Rural Development is implementing a number of
programmes aimed at sustainable development of rural areas with a focus on
weaker and vulnerable section. In order to catalyse development in rural
areas, top priority has been accorded to Rural Development,. not only in terms
of allocation of funds and resources but also through introduction of new
programmes and restructuring of the existing ones. Development should be
participatory, tapping the local talent and resources in order to be sustainable.
Stress is being given to make the Gram Sabha the pilIar of Panchayati Raj
Institutions as an effective unit of local self-government and im effective and
vibrant forum for decentralised planning and' ilnplunentation of rural
development programmes.
To ensure sustainable development ot rural areas, the allocations tor
rural development was increased substantially. As against ~ budgetary
allocation of Rs 12,265 crore during 2001-02 the allocations in the year 2002-03
were Rs 13,670 crore, which was further enhanced to Rs 14,070 crore for the
year 2003-2004 and to Rs 15,998 crore for the current Financial year, 2004-05.
Anti-Poverty Programmes are a dominant feature of government initiatives
in the rural areas. The Programmes were reviewed and strengthened in
successive years in order to sharpen their focus on reduction of rural poverty.
The results achieved are worth noting. In percentage terms, rural poverty has
reduced from 56.44 per cent of the country's population in 1973-74 to 37.27
in 1993-94 and again to 27.09 per cent in 1999-2000. However, the cause for
concern is that the estimated number of rural poor is still about 19.30 crore
which has led to further review and restructuring of the anti-poverty
programmes. The Swarnjayanti Gram Swarojgar Yojana (SGSY) is .the result
of such latest review and restructuring of Programmes. Launched on 1 April
1999, the SGSY is different from the earlier programmes in terms of strategy
-envisaged for implementation and has been conceived as a holistic Programme
of Self Employment, viz., organisation of rural poor into Self-Help Gr~ups and
their capacity building, training, planning fot activity clusters, infrastructure
build up, technology and marketing support.
Gainful employment, food security and strengthening of infrastructure
in rural areas is a must for national renewal for a resurgent India. On
25 September 2001, the Sampoorna Grameen Rozgar Yojana was launched to

Rural Development

595

attain these objectives. The Scheme envisages an annual expenditure of

Rs 10,000 crore. Under the Scheme, 50 lakh tonnes of foodgrain amounting
to Rs 5,700 crore (at economic cost) are to be provided every year to the States/
UTs free of cost. About Rs 5,000 crore is to be utilised to meet the cash
component of wage and material costs. About 100 crore man days of
employment is likely to be generated every year, besides creation of durable
assets in rural areas as per the felt needs of Gram Panchayats. In order to
ensure people's participation; the Programme would be implemented through
PRIs.
Notwithstanding the efforts made over the years at the state and central
levels through different Programmes, about 40 per cent of habitations are still
without road connectivity. Even where the connectivity has been provided, the
roilds constructed are not all-weather roads. There is close link between rural
connectivity and growth, be it in the area of trade, employment, education,
or hcalthcare. Keeping this in view the Government launched a major
initiative - Pradhan Mantri Gram Sadak Yojana on 25 December 2000 with
the objective of providing connectivity to all unconnected habitations with the
population of more than 1,000 within three years and similar such villages
with a population of 500 by the year 2007 through good all-weather roads.
Considerable success has been achieved in meeting the drinking water
needs of the rural population. With an investment of more than Rs 45,000 crore
on rural drinking water supply by central and state Governments since
Independence, 94.37 per cent partially covered. The Programme has been
revamped to usher reforms by institutionalising community participation in
rural water supply sector with a view to gradually replace the governmentoriented, centralised, supply-driven and non-people participating Rural Water
Supply Programme by people oriented, decentralised, demand driven and
community based Rural Water Supply Programme.
Since land is a critically important national resource among the natural
resources, the effic!ent management of which is vital for economic growth and
development of rural areas. Around 20 per cent (63.85 million hectare) of the
(uuntry's geographical area is wastelands/degraded land. To meet the
imperative need to put in place an integrated mechanism capable of responding
effectively to the challenges of managing country's scarce land resources, a
separate Department of Land Resources came into being in April 1999 under
the Ministry of Rural Development. All the land-based Area Development
Programmes are being implemented through the Watershed Development
Approach since April 1995, in accordance with the recommendations of the
Hanumantha Rao Committee..
Empowerment has to be an essential ingredient in planning and
implementation of the Programmes. Accordingly, under the programmes of
~he Ministry, a predominant role for Panchayati Raj InstitUtions, ,(PRJs) jn their
Implementation has been envisaged through a fout-pronged strategy viz"
i) Enhancing the level of .awareness about the Schemes; ii) Promoting

India 2005
transparency in the implementation of programmes; iii) Encouraging people's
partnership; anli iv) Ensuring accountability Isocial audit.

PRADHAN MANTRI GRAM SADAK YOJANA

The I'radhan Mantri Gram Sadak Yojana (PMGSY), a 100 pl'r lmt CentrallysponsofPd sc}wme was launched on 25 December 2000. The prime objectivl'
ort11l; 'P"fvfLSY is to provide connectivity, by way of an all-\wathcr roads In
the unconnected habitations in the rural areas in such a way that habitations
with il population of 1,000 persons and abovE' are cOVl'rt'd in thrl'{' y{'ars (20()()2(10:1) (lnd all unconnected habitations with a population of 500 pl'rsons and
abow by tlw end of the Tenth Plan, i.c., 2007. In respect of the Hill States
(North-Fast, Sikkim, Himachal Pradesh, Jammu and Kashmir, Uttaranchal),
Tribcll and Desert Areas, the objectivp would be to COIUwct habitations with
.1 popul<ltion of 250 persons and above.
As on 1 April 2000, about 8.25 lakh habitations in th(' country, about 3.30
lakh habitations were not connected by all-weather roads. The PMGSY seeks
tn provide connectivity to about 1.70 lakh unconnt'cted habitiltions besides
up gradation of some existing rural roads to prescribed standards by thl' end
of tlw Tenth Plclll. According to estimates based on a survey, ilbout 3.70 lilkh
kih)flwtl>r~ of roads will be constructed under the programme. The total cost
of the construction and upgradation of othf'r rural roads is likply to be of the
ordl'r of Rs 1,30,000 crore. About 35,000 roads estimated to cost Rs 14,377 cron'
have b('('n cleared up to the end of March 2004 and 20,651 road works have
since b(;,l'n completed. The remaining works an' in various stilges of execution.
A cumuliltivc expenditure of R5 6,559 cron! was incurred till March 2004.

RURAL WATER SUPPLY PROGRAMME

Drinking water facilities to rural habitations art' provided under state-sector
programme. The Central Government endeavours to supplement the efforl!>
of tl'lt' states by providing assistance under the Centrally-sponsored Accelerated
Rural Watpr Supply Programme. Powers have been delegated to the states to
plan, sanction and implement the rural water supply schem!'s.
The GOVl'rnment enVisages provision of safe drinking water to all rural
habitations. Th(' strategy to achieve the objective revolves around the following
issues to ilccelerate the coverage of remaining "not covered and partially
covpred" habitations with safe drinking water systems; to tackle the problem
of water quality in affected habitations and to institutionalise water quality
monitoring and surveillance systems and; to promote sustainability both of
systems and sources, to ensure continuous supply of safe drinking water in
"covered" habitations.
An investment of more than Rs 45,000 crore has been made in the water
supply sector so far. Status of coverage of rural habitations, as per information
received from states till 28 May 2004 is 5,936 not covered and 71,463 partially
covered rural habitations. Ouring 2oo3...().4, as per information received up to

Rural Development

597

28 May 2004, 3,716 not covered and 30,540 partially covered habitations have
heen covered with drinking water facilities. Ninety-nine per cent of rural
habitations have access to drinking water facility.

The Government has revamped the Rural Water Supply Programme,

which, inter-alia, envisages institutionalisation of community-based rur,,1
water supply systems by incorporating the following basic principles for
t'I1suring people's partiCipation: (i) adoption of demand-driven, responsive
and adaptC'ble approach ,)f villages to ensure thpir full participation in thl'
project in the choice of scheme design, control of finances and managenwnt
arrangements; (ii) shifting the role of Government from direct service delivt'fy
t(l that of facilitator; and (iii) partial cost sharing l'ither in cash or kind or both
and 100 per cent responsibility of operation and maintenance by end-ust'fs.
Sixty-seven districts all over the country have been identified for implementing
thl' reform projects on a pilot basis. The reform initiative launched has now
~caled to Swajaldhara to cover the entire country.
CENTRAL RURAL SANITATION PROGRAMME
Rural Sanitation is a statl:' subject. The efforts of the states an' supplemented
by the Central Government through technical and financial assistance under

the Central Rural Sanitation Programme (CRSP).

The Programme was launched in 1986 with the objective of improving
Ih(> quality of life of rural people and providing privacy and dignity to women.
The concept of sanitation was expanded in 1993 to include personal hygiene,
home sanitation, safe water, and disposal of garbage, human excreta and
wastewater. The components of the Programme included construction of
individual sanitary toilets for households below poverty-line (8Pt), conversion
(If dry latrines to water-pour flush toilets, construction of village sanitary
complexes for women, setting up of sanitary marts and production centres,
mtensive campaign for creating awareness and health education, etc.
Keeping in view toe experiences of the central and state governments,
NCOs and other implementing agencies and the recommendations of the
~l'cond National Seminar on Rural Sanitation, the strategy for the Ninth Five
Year Plan was revised and the programme was restructured from 1 April 1999.
The restructured programme moves away from the principle of state-wise
allocation of funds, primarily based on poverty criteria, to a demand driven
approach in a phased manner. Total Sanitation Campaign (TSC) was introduced
and the allocation-based programme was phased out ~l Marcb..2002. TSC
is community-led and people-centred. There was a snift from a high subsidy
to a low subsidy regime. The TSC approach emphasist!d awareness-building
component and meets the demand through alternate delivery mechanism.
School sanitation has been introduced as a major component to encourage
Wider acceptance of sanitation among rural masses. The States/UTs are
required to formulate project proposals under the TSC in order to claim central
government assistance.

598

India 2005

Under the TSC, so far 398 projects in 29 States/UTs have been sanctioned
with the total project outlay of about Rs 3,744.24 crore. The central, state and
beneficiary / panchayat contributions are about Rs 2,213.81 crore, Rs 826 crore
and Rs 703 crore respectively. The components sanctioned in the 398 projects
are (a) construction of 323 lakh individual household latrines; (b) 3,53,041 lakH
toilets for schools; (c) 25,236 community sanitary complexes; (d) 59,562 toilets
for Balwadis/ Anganwadis and (e) 2,942 Rural Sanitary Marts/Production
Centres. Besides, funds have been earmarked for start-up activities, Information,
Education and Communication (lEC) and Administrative charges.
The total number of household toilets constructed up to 2003-04 are
80,87,130 (provisional).

RURAL HOUSING
To meet the shortage of housing in rural areas, the Indira Awaas Yojana (lAY)
was launched. in May_19~~ as a sub-scheme of Jawahar Rozgar Yojana ORY).
It is being implemented as ~-n-inaepenaent scheme siflce 1 January 1996. The
Indira Awaas Yojana aims at providing assistance to rural people below the
poverty-line ....elonging to Scheduled Castes/Scheduled Tribes, freed bonded
labourers and non-Scheduled Castes/Scheduled Tribes cat~gories in construction
of dwelling units and upgradation of existing unserviceable kutcha houses by
providing grants-in-aid. From 1995-1996, the lAY benefits have been extended
to widows or n~t-of kin of de_~ence Ee!sonnel killed in action. Benefits have
alsObeen extended to ex-servicemen and retired members of the paramilitary
forces aS'long as they fulfill the normal eligibility conditions of the lAY. Three
per cent of funds are reserved for the disabled persons living below the
poverty line in rural areas.
The District Panchayat/District Rural Development Agency (DRDA) on
the basis of allocations made and targets fixed decide the number of houses
to the constructed/upgraded Panchayat-wise under lAY, during a particular
financial year. Accordingly, the targets are intimated to the Gram Panchayat
concerned. Thereafter, the Gram Sabha selects the beneficiaries from the list
of eligible BPL households, restricting this number to the target allotted as per
the Programme Guidelines. Selection by the Gram Sabha is final. No approval
by a higher body is required. Zilla Parishads/DRDAs and Block Development
Offices are informed accordingly to provide assistance to selected beneficiaries.
Under the Scheme, allotment of the house is done in the name of the
female members of the households or in the joint names of husband and wife.
A minimum of 60 per cent of funds is to be utilised for construction of houses
for the SC/ST. Sanitary latrines and smokeless chulhas should also be
provided to beneficiaries. Selection of construction technology, materials and
design is left entirely to the choice of beneficiaries. The ceiling on assistance
for construction of new houses has been increased from Rs 20,000 to Rs 27,500
per unit for the plain areas and from Rs 22,000 to Rs 27,500 per unit for the
hilly / difficult areas from 1 April 2004. The upper limit in respect of conversion
of kutcha houses into semi-pucca houses (up gradation) and subsidy under

Rural Development

599

(fcdit-cum-subsidy Scheme has increased from, Rs 10,000 to Rs 12,500 per

unit. Upto 20 per cent of the lAY funds are allocated for upgradation and
<i~sistance under credit-cum-subsidy scheme. A household having annual
income of Rs 32,000 is eligible to get loan up to Rs 50,000 under credit-cum~ubsjdy Scheme.
Under the Indira Awaas Yojana, since its inception and up to March 2004
about 114.78 houses have been constructed with an expenditure of about
Rs 20,023 crore.
SWARNJAYANTl GRAM SWAROZGAR YOJANA
Thl' Swamjayanti Gram Swarozgar Yojana (SGSY) has been launched as an

integrated programme for self-employment of the rural poor, on 1 April 1999.

TIll' objective of the scheme is to bring the assisted poor families above the
poverty line by organising them into Self-Help Groups (SHGs) through the
process of social mobilisation, training, capacity building and provision of
Il1come generating assets through a mix of bank credit and Government
subsidy. The scheme emphasises on process approach and building the
capacity of the rural poor. Therefore it provides {or involvement of NGOs/
CBOslindividuals/banks as facilitators/Self-Help Promoti11g Institutions in
nurturing and developing SIiGs. The scheme provides for the cost of social
intermediation and skill development training based on the local requirement.
The focus of the programme is on establishing a large number of microcnt('rprises in rural areas based on the ability of the poor and potential of
l\1Ch area, both land-based and otherwise, for a sustainable income genelation.
Du(' ('mphasis is bein'g laid on different components such as capacity building
of the poor, skill development, training, credit training, technology transfer,
marketing and infrastructure. The subsidy allowed under SGSY is 30 per cent
[If the total project cost, subject to a ceiling of Rs 7,500 (for SCs/STs and
disabled persons subsidy limit is 50 per cent of the project cost subject to
cl'iling of Rs 10,000). For Self-Help Groups (SHGs), subsidy would be 50 per
Cl'nt of the project cost subject to a ceiling of Rs 1.25 lakh or per capita subsidy
of Rs 10,000, whichever is less. There is no monetary ceiling on subsidy for
minor. irrigation projects for SHGs as well as individual swarozgaris.
The SGSY has special focus on the vulnerable groups among the rural
poor. Accordingly, the SCs/S1S would account for at least 50 per cent of the
Swarozgaris, women for 40 per cent and the disabled for three per cent. The
SC;SY seeks to promote multiple credit rather than a one-time credit injection.
The SHGs may consist of 10-20 members and in case of minor irrigation
and in case of disabled persons and in case of people living in difficult areas,
i.e., hilly, desert and sparsely populated areas, this number may be a minimum
of five. The Self-Help Groups should also be drawn from the BPL lis.t approved
by the Gram Sabha. The SHGs broadly go through three stages of evolution
such as group formation, capital formation through the revolVing fund and
skill development and taking up of economic activity for income generation.

600

India 2005

Selection could be made up to 10 key activities per bl(x:k based on local

resources, occupational skills of the people and availability of market so that
the Swarozgaris can draw suitable incomes from their investment. The SGSY
emphasises on duster approach, i.e., each block should concentrate on
four to five selected key activities and attend to all aspects of these activities,
so that the Swarozgaris can draw sustainable incomes from their investment.
The SGSY lays special emphasis on development of Swarozgaris through well
designed training courses tailored to the activities selected and the requirement
of each Swarozgari.
The SGSY is being implemented through the District Rural Development
Agencies (ORDAs), with the active involvement of Panchayati Raj Institutions
(PRIs), Banks and the NGOs. It is financed on 75:25 cost-sharing basis between
thl' centre and the state.
Since, the inception of the programme 19.69 lakh Self-Help Groups have
been formed covering 45.67 lakh swarozgaris. These include 20.13 lakh
m('mbers of tht' SHGs and 25.54 lakh individual Swarozgaris who have been
a!>sistl'd with a total investment of Rs 9,385.11 crore. Out of the toti'll
Swar07.garis assisted SCs/STs were 45.69 per cent and women 52.80 per cent.
During 2004-2005 the Central allocation for the scheme is Rs 1.000 crore.
SAMPOORNA

GRA~EEN

ROZGAR YOJANA

Tlw Sampoorna Grameen Rozgar Yojana (SGRY) was launched on

25 _Sl~E!l'l:n~er_ 2!101 .. ~Y__E.lergin& the on-going schemes of EAS nd the JGSY
with tbe (lbj~'ctiv(' of providing additional wage employment in the rural Meas
,b ,lb;o iood 'iecurily, alongside the creation of durable community assets in
thl' rural areas. The programme is st'lf-targeting in nature with S~1('cial
emphasis on women, scheduled castes, schl'duled tribps and parents of
children withdrawn from hazardous occupations. While prt'ference will be
given to BPL families for providing wage employment Undl'T SGRY, poor
families above the poverty line can also be offered employment under thl'
programme. The annual outlay is Rs 10,000 crore which includes 50 lelkh
tormes on foodgrains. The cash component is shared between the centre and
the states in the ratio of 75:25. Foodgrains are provided free of cost to the
Stall's/UTs. The payment of food grains is made directly to fCI elt economic
cost by the centre. However, the cost of the transportation of foodgrains from
the FCI god own to the work-site IPDS and its distribution are the responsibility
of the state governments. Minimum wages are paid to the workers through
a mix of minimum five kg of food grains and at least 25 per cent in cash.
The programme is implemented by all the three tiers of PRIs. Each level
of Panchayat is an independent unit for formulation of Action Plan and
executing the scheme. The resources are distributed among District Panchayat,
Intermediate Panchayats and the Gram Panchayats in the ratio of 20:30:50.
The Gram Panchayats can take up any work with the approval of the
Gram Sabha as per their felt need and within available funds. Fifty per cent
of the funds earmarked to the Gram Panchayats are to be utilised for
infrastructure development works in SC/ST localities. 22.5 per cent resources

Rural Development

601

must be spent on individual beneficiary schemes meant for SCs/STs out of

liBel Parishad and Panchayat Samiti's share of resources. Contractors are not
Iwrmitted to be engaged for execution of any of the works and no middlemen/
mtl'rmediate agencies can be employed for executing works under the scheme.
Thp programme is regularly monitored. The programme would also be
l'valuated through impact studies conducted by reputed institutions and
organisations sponsored by the central/state government.
CAPART
In order to encourage, promote and assist voluntary action in rural development
with focus on injecting new technology inputs for enhancement of rural

prosperity, the government set up the Council for Advancement of People's

Action and Rural Technology (C~~!.\13n l!'.}?86.
CAPART has nine Regional Committces/Centres at Jaipur, Lucknow,
Ahmedabad, Bhubaneswar, Patna, Chandigarh, Hyderabad, Guwahati and
Dh'lfwad. The Regional Committees are empowered to sanction project
proposals to voluntary agencies up to an outlay of Rs 20 lakh in their
rt'sp,'ctivc regions. Since inception and up to June 2003, CAPART has
~ilnclioned 21,621 projects involving (In amount of Rs 701.63 crore and has
r('il-ased Rs 545.85 crore.

WATERSHED DEVELOPMENT PROGRAMMES

The Dcpartment of Land Resources is implementing three area based
\\ ,Itl'rshed programmes for development of wastelands/ degraded lands
JI,mwly Drought Prone Areas Programmes (DPAP), Desert Development
I'rllgrilmme (DDP) and Integrated Wastelands Development Programmc
(lWD!'). OPAP was launched in 1973-74 to taclde the special problems faced
by those areas that are constanti'y affected by drought conditions. Presently,
lJ72 blocks of 182 districts in 16 states are covered under the Programmes.
DDl' was launched in 1977-78 to mitigate the adverse effects of desertification.
l'rt'sentiy, 235 blocks of 40 districts in seven states are covered under the
programme. IWDP has been tmder implementation since 1989-90. The projects
under the IWDP are generally sanctioned in areas that are not covered under
lJDP or DPAP.
Since 1 April 1995, the three programmes are being implemented on the
brlsis of a Common Guidelines for Watershed Development. Details of projects
S(\llctioned and funds released from 1995~6 to 2003-2004 are as under:
'!"

Name~
Schem

DPAP

No. of Projects
sanctioned

Area covered
(in lakh ha.)

Total funds released by

the Centre
(Rs in crore)

18803

94.01

1442.21

DDP

9876

49.38

1085.82

IWDP

662

50.79

977.49

194.18

3505.52

Grand Total

602

India 2005

The Cost norm for all the three schemes is Rs 6,000 per ha. Under DPAP
and DDP, it is shared between the centre and states in the ratio of 75:25. In
case of IWDp, the cost sharing between the centre and states is in the ratio
of 11:1.

Funds are released in seven installments - six instalments at the rate of

15 per cent and the last instalment at the rate of 10 per cent. The first
instalment is released along with the initial sanction-order and subsequent
instalments on receipt of reports of utilisation of 50 per cent o~ the available
funds as well as the following documents: (a) Quarterly Progress Reports;
(b) Utilisation Certificates; (c) The audited statement of Accounts for the
previous year; and (d) Evidence of satisfactory completion of institutional
arrangements.
Implementation: Projects are implemented by District Rural Development
Agencies/Zilla Parishad (DRDAs/ZPs) through Project Implementing Agencies
(PIAs); PIAs could be a Line Department (of the state government), Panchayati
Raj Institutions or a reputed NGO; One PIA normally handles 10-12 watershed
projects covering an area of about 5,000-6,000 hectares; The PIA is required
to maintain a technical team of 4 experts called Watershed Development Team
(WDT); and Individual projects (500 hectares) are planned and executed by
the local people living in the watershed area called the Watershed Association
(IWA) through an elected body called Watershed Committee (WC).
HARIYALI
Department of Land Resources launched a new initiative called, Hariyali with
the objective of empowering PRI's both financially and administratively in
implementation of Watershed Development Programmes. Under this initiative,
all ongoing area development programmes namely, Integrated Wastelands
Development Programme (IWDP), Drought Prone Areas Programme (DPAP)
and Desert Development Programme (DDP) would be implemented through
the PRls. New projects under the ongoing area development programmes shall
be implemented in accordance with the guidelines for Hariyali from 1 April
2003. Projects sanctioned prior to this date shall continue to be implemented
as per the Watershed Development Guidelines of 2001.
In the new arrangement, the Gram Panchayats shall implement the
projects under the overall supervision and guidance of Project Implementation
Agencies (PIAs). An intermediate Panchayat may be the PIA for all the projects
sanctioned to a particular Block/Taluka. In case, these Panchayats are not
adequately empowered, then the Zilla Panchayat can either act as PIA itself
or may appoint a suitable Line Department like Agriculture, Forestry/Social
Forestry, Soil Conservation, etc., or an Agency of the State Government/
University /Institute as PIA. Failing these options, the ZP /DRDA may
consider appointing a reputed Non-Government Organisation (NGO) in the
district with adequate experience and expertise in the implementation of
watershed projects or related area development works as the PIA after
thoroughly examining their credentials.

Hural Development

603

The Project Implementation Agency (PIA) will provide necessary technical

guidance to the Gram Panchayat for preparation of development plans for
the watershed through Participatory Rural Appraisal (PRA) exercise, undertake
community organisation and training for the village communities, supervise
watershed development activities, inspect and authenticate project accounts,
encourage adoption of low-cost technologies and build upon indigenous
technical knowledge, monitor and review the overall project implementation
and set up institutional arrangements for post-project operation and
maintenanc"i! and further development of the assets created during the project
period
LAND REFORMS
Two Centrally Sponsored Schemes viz, (i) Computerisation of Land Records
(eLR) and (ii) Strengthening of Revenue Administration and Updating of
l.and Records (SRA&ULR) are implemented by this Division.
COMPUTERISATION OF LAND RECORDS
The Centrally Sponsored Scheme on Computerisation of Land Records (CLR)
was started in 1988-89 with 100 per cent financial assistance as a pilot project
in eight districts, viz., Rangareddy (A.P.), Sonitpur (Assam), Singhbhum
(Bihar) Gandhinagar (Gujarat), Morena (M.P.) Wardha (Maharashtra),
Mayurbhanj (Orissa) and Dungarpur (Rajasthan) to remove the problems
inherent in the manual systems of maintenance and updating of Land Records
and to meet the requirements of various groups of users. It was decided that
efforts should be made to computerise Core data contained in land records,
so as to assist development planning and to make records accessible to
peoples/planners and administrators.
During the Eighth Five Year Plan, the Scheme was approved as a
separate Centrally Sponsored Scheme on Computerisation of Land Records.
Th(' total expenditure under the Scheme during the Eighth plan period was
Rs 59.42 crore.
During the Ninth Five Year Plan, the Ministry of Rural Development
released a sum of Rs 169.13 crore for covering 259 more districts under the
Scheme. At present, the Scheme is being implemented in 582 districts of the
cllllntry leaving those districts where there are no land records. A decision
has been taken during 1997-98 for operationalisation of the Scheme at the
tehsil/taluk level for facilitating delivery of computerised land records to
llSPTS and public at large. Under this programme, 'funds are released to the
state governments for purchase of hardware; software and other peripherals.
3,142 tehsil/taluks have been covered under the programme. Since inception
of the Scheme, this Ministry has released Rs 300.51 crore till 31 March 2004.
The utilisation of funds reported by the States/Urs is Rs 203.01 crore, which
is approximately 68 per cent of the total funds released.

STRENGTHENING OF REVENUE ADMINISTRATION AND UPDATING

OF LAND RECORDS
With a vielV to assist the States/UTs in the task of updating of land .records,

604

India 2005

a Centrally Sponsored Scheme for Strengthening of R~venue Administration

and Updating of Land Records (SRA & ULR) was started in 1987. Initially,
the Scheme was approved for the states of Bihar and Orissa in 1987-88 and
extt.>nded to other States/UTs during 1989-90. The Scheme is being implemented
by tht State Governments through their Revenue/Land Reforms Departments.
It is financed by the centre and the state on 50:50 fund sharing basis. However,
Union Territories are provided full Central Assistance.
Under the Scheme, financial assistance is given for purchase of Modern
Survey Equiprnents like Clobal Positioning System (GPS), EDM, Total Stations,
Tht'odolites, Work Stations, Aerial Survey, Office equipments like Photocopiers,
Laminating Machines, Binding Machines and basic facilities to improve work
efficiency of lower staff of the Revenue Departments, construction of officecum-residence of Patwaries, construction/repair/renovation of Training
Institutes and equipments for training, etc. Financial as.sistance of Rs 265.97
crore has been provided to the State Governments/UTs up to 31 March 2004
towards Central share under the Scheme. The utilisation of the funds reported
by the States/UTs is Rs 170.31 crore, which is approximately 64 per cent of
the total funds released.
Monitoring and Evaluation: The Government lays great emphasis on
monitoring and evaluation of all rural development programmes being
implemented in various States/UTs. The Monitoring mechanism includps,
intN-alia, the Performance Review Committee, the Area Officer Scheme,
P~'riodic Progress Reports, Audit and Utilisation Certificates, Video Conferencmg
and Field Visits. The government conducts quick evaluation/concurrent
evaluation of all major programmes. States/UTs have been advised to
reconstitute Vigilance and Monitoring Committee at state and district-levels
to monitor the implementation of programmes and introduce greater
transparency in the same. These Committees, inter-alia, include MPs/MLA.
representatives of Panchayat Raj Institutions and NGOs.
In order to strengthen the monitoring mechanism, the Government has
prepared a panel of National Level Monitors by involving ex-servicemen and
retired civil servants to monitor and furnish periodic reports on the
implementation of programmes in selected districts.
A system of District Level Monitoring also has been put in place in
selected districts of the country through independent locally based institutions
for physical verification of assets created under various rural development
programmes and ensuring transparency in programme implementation.

24 Scientific and Technological

Developments
[!\;l)IA hd~ it long and distinguishl'd tradition in sci<!nc(.' and k'chnolo)!;y from
till ,1I1Ci(,111 tillle~ to great achievements during thi~ century; tlw liltter 11i\lf
prior to indl'pL'ndellcL' has been r('tatpei largl'ly to pure resccHch. A t the tiIlH'
l,t Intil'p{'ndence, India's scipntific ,md technological infrastructllrt W,IO' l1eitlwr
,trOll)?, nor org,lIIhl'd as compared to tlw developed world. In Ilw past four
dl'c'''lk~, an infra5truC'ture and Glpability largely Cl)mnH'n~Ur,lh' with IlWl'Iing
n,ltilln,\1 lH'l'lb has bPL'!1 CTPcltpd minimising lndiil's dl'IWndencl' nil olh.'r
C"lll1tri{',,,, TIll'rl' i5 now a reservoir of expertise well acquainted with tlw most
11llldert1 cldvcllKl'S in basic and applied ,Ht'ilS that is equipped to 1ll,lke choJ(p~
bd\\'l'L'l1 available tl'chnologies, to ilbsurb n'Miily new technobgil's and
pro\'idl' iI frilllwwnrk for future national developnwnt.

SCIENCE AND TECHNOLOGY INFRASTRUCTURE

Scientific and technolllgkal activities in India are corril'd out undl'r ,1 wide
"d up consisting of Central Covprnment, Stotl' Covcrnmcnts, hight'r educational
,,{'etor, public and privatl' Sl'ctOf industry and non-profit institutions/
associations. These institutional structures, with their n'seclfch labor(ltorie", Me
till' main contributors to research and development bl'ing CMI i('d \lut in the
cuuntry. Notable among thest' Me, till' Council of Scil'ntific ,lIld Industrial
RL'SL'MCh (CSIR), Indian Council of Agricultural Research (leAR), Indian
Council of Medical Research (ICMR). In .1lldition, tlwn' Me many dl'pdftmental
j"boratoril's of various departm('nts/l1linistrie~, viz .. Dl'l'artnll'nt of Atomic
I-.nergy, Department of Electronics, Department of SPilCl', IJt'partnwnt of
Oceall Development, Defence ReseHfch and Development Org,lI1isation,
~llIlIstry of Environment and Forests, Ministry of Non-Convl'ntwllal Energy
Sources and the Ministry of Science and Technology. Purther, tlll'r(' are over
1,200 in-house res(;'arch and dt:'veiopment units in industrial undertaking"
supporting research ll1 their respective industries. Many Indian Uni\'l'rsities
and Deemed Universities such as IlTs also undertake substanti(ll rbl',1t'ct"t and
dl'velopment work.

SCIENCE AND TECHNOLOGY POLICY 2003

In order to build a blue print for future programmes of Science and
ll'chnology and to give a direction to the initiatives to be lIndertakl'r\, the
(;overnmcnt announced the Science and Tedu1010gy Policy 2003. The policy
olltlines the approach to Science and Technology governance, optimal
utilisation of existing physical and knowledge resources, development of
innovative technologies, systems and technologies for mitigation and

management of natural hazards, generation and management of intellectual

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IndiCl 2005

property and creCltion of awarenesS amongst general maSSl'S about the use
and benefits of science and technology.
PROGRAMMES
TECHNOLOGY

OF

THE

DEPARTMENT

OF

SCIENCE

AND

The Department of Science and Technology was set-up in May 1971 with the
objectivl' of promoting research in the new ar('as and to play the role of a
nodal department for organising, coordinating and promoting scil'nC'l' and
t('chnology activities in the country. Over th(' Yl'ars, tlw Department has
evolved policy statements and guidelines, provided mechanisms for coordination in the areas of science and tl'chnology in which a number of
institutions have interests and capabilities, supported grants-in-aid to scientific
institutions and professional bodies.
RESEARCH AND DEVELOPMENT PROGRAMMES
The Department hilS bccn playing a crucial role in identifying and promoting
front-line and priority areas on Research Clnd Development (R&D) in various
disciplines of science and engineering. This support is provided through
Science and Engineering Research Council (SERC) - illl advisory body
consisting of eminent scientists and technologists drawn from aCildemic
institutions like I1Ts, 1Iniversities, national laboratories and ind~lstry. The
Council through its advisory committees, assists thl' Departn1l'nt not only in
pecr reviewing the proposals but also identifies newer and inter-disciplinary
,1rt'<1S of R&D for concerted cfforts. The Council, with the help of the advisory
committecs, also monitors progress of individual projects sponsored in various
disciplines along with monitoring the progress of co-ordinated and concertecl
efforts. Every year around 1,000 project proposals arc received for consideration
in the Department, most of which fall in the category of basic sciences ilnd
engineering research.
Some of the new projects supported relate to Theoretical Studies on NonAccelerated Particle Physics; Dynamic Physics; Cavity QUED; ProtE'in
Chemistry; Solid State and Surface Chemistry; Preparation and Dcnsification
of Aluminium Nitride Powder; Plasma based Ion lmplantiltion for Surface
Engineering of Titanium Alloys; Ionospherl~ and Thermosphere Studies;
Photochemistry in Jet Cooled Clusters; Indian Solar Terrestrial Energy
Programme; All India Coordinated Programmes on lonospherl' Thermosphere
Study (AICPITS-II), etc.
Assessing the importance of the emerging, highly interdisciplinary field
of Nano-science and Technology, a national programme titled "Nanomateriais
Science and Technology Initiative (NSIT)" has been started. The programme
focuses at overall research and development in nanoscience and technology
with vigour so that India can become a significant player in the area and
contribute to the development of new technologies.
.
On the occasion of the 50th anniversary of India's Independence, the

~(it..'ntific

and Technological Developments

607

C;u\'ernment launched Swarllajayanti Fellowships for enabling outstanding

v(lung scientists to attain world class levels in science. Tlw Fellowships arc
(IF'l'Il to Indian scientists in the age group of 30-40 years, with a proven
"tp,lbiJity for outstandi.ng research work exploring new frontiers in their field
of specialisation.

INFRASTRUCTURE DEVELOPMENT
The Department through its various programmes has been playing a catalytic

[(,k' in supporting the setting-up of new R&D facilities along with the
m(ldernisation of til(' existing ones. 'Intensification of Research in High Priority

Arl'(ls'- IRHPA has helped in strengthening the infrastructure and research

C,IP,lbilities in selected areas of science and engineering. Under this programme,
units 1 core groups and NCltional ReseClrch Facilities Clre established around
,111 outstanding scientist to act as a focal point to nucleate research activity
111 these areas.
In order to provide and improve basic infrastructure in ClcCldemic sector
research and teaching a scheme, viz., Fund for Improvement of S&T
!lltrdstructure in Universities and Higher Educational Institutions (FIST) was
initiated during the Ninth Five Year Plan. Under this programme support is
provided for upgradation of laboratories by providing equipment, computer
Ill'tworking, library facilities, etc. The programme identities active university 1
(lciHiemic departments for support through a peer review mechanism including
llll-site visits.

lllr

HUMAN RESOURCE DEVELOPMENT

The Dep<lftment also supports different programmes aimed at identlfying new
t<'llent and proViding them with financial assistance in the form of fellowships
for pursuing research in front-line Clreas of science and technology. Also, for
til(' researchers, the Department supports training programmes, summer
~('hools and contact programmes. The programmes supported are: BOYSCAST
fellowships, SERC student fellowships, etc. Fellowships arc Cllso awarded to
undergraduate students to get first hand exposure of research in leading
rl'Sl'clfch laboratories. To involve young scientists (below 35 years) in national
S& T development process and to provide opportunities to them for pursuing
exciting and innovative research ideas an exclusive scheme, viz., Opportunities
tor Young Scientists (OYS) is being implemented by the Department.
In order to motivate bright young minds at their secondClry schooll
('olk'ge levels, and to encourage them to stick on to a career in science, a new
scheme called Kishore Vagyanik Protsahan Yojana has been initiated. Talent
would be scouted through a competitive mechanism at school level and
s('holClrs would be selected for an attractive fellowship/scholarship until they
pass their Masters Degree in Science. Further, in order to generate trained
manpower in selected areas of science and technology, training Cburses,
SUlnmer/winter schools were organised in theoretical chemistry, earth science,
astronomy and astrophysics, lasers, optics, atomic and molecular physics.

60R

India 2005

WOnH'fl Scientists Scheme WilS launched during the yl'ilf 2002 by thl'
lkpartmC'nt of Science and Tl'chnology. TIll' scheme provides support to
wom,u1 scientists, with or without a bre<lk in carcer, to pursue scienCt' in all
its aspects and encouragl' them to continu(' in the scipntific profession <Inti
dlsn tn contrihutl' toward!> application of science <lnd technology to soci('t,,1
d('\I'lopm('nt.

TECHNOLOGY DEVELOPMENT AND RELATED PROGRAMMES

The Department has bl't'n catalytic in identifying, formulating ,md implenwnting
a numlwr of technology developnwnt programmes. It has sl't up an ilutonomous
body - T('dy:,oloJ:?y Information Fon'c,1sting <lnd 1\~':-.~.:'~_I~!~__~.0l!}ciL (TIPAC).
Th(' m,lin ()bj.(::ct.i.Y.~~!z_2L~ includl' gemriltion of Technology Forecasting
ilnd Tl'chn(';logy Assessmcnt and Techno Market Survey (TMS) documents
ilnd enabling a Technology Information System. Tll:AC hilS brought out mort'
th,ll1 2i'l() specialised reports covering most of thl' sector,> of l'conomic
rl'I('\'ance, ranging from Agricultmt to Ad\'anccd St'nS(lr~ dnd from materi<lb
tn biotc'chnology. These reports hilVl' also focused on tIl(' upcoming ilnd
frontier tl'chnologies like tran1>genic seeds, biochip~, T~- DNA products,
transgl'nic animal models etc. TIFAC has illso brought out ,\ sl'ries of reports
giving il Comprehensive picture of Scienct' and Technology in India covcring
16 ,In'as of scientific research carried (lut in India in last 50 years.
TIFAC carried out a long term Technology Vision (Forecasting) l>xerci~l'
known ilS 'T ':'.~'!1!101gID'_ Y!sion for India up t(~}020', covering 17 ~ctors. and
brought out 25 volumes of reports. It was decidpci t(l integratt' tlw
n'comrnendation of these reports in Plan projects of different sectors.
Subsequpntly tlw follow up actions emerged on limited scale t()warct~
dl'monstration projects of technology for wider replication in six identified
sectors namely: Agriculture and Agro F(\od Sector, Road Construction and
1 ransporliltion Equipment, Upgradation of Textile Machinery /Tl'xtile Industry,
Health Carl' Services and Herbal/Natural Products, UpgrCldcltlOn of Science,
l':ngineering Technical and Professional Institutions relevant to Industry
(Mission Reach), and Targeted Programmes in other important ilfeas like
Hydro~l'n Energy, Electric Power, Rural Connectivity, SMEs, etc
Mission REACH has been launched by TlFAC with the objective of
upgrildll1g a few selected science and enginl:'ering collegl's so t1~ to create
Centres of Relevance and Excellence (CORE) in achieving IWW heights in
selected cit'partments at par with the world's best.
A~ Patent Facilitatinj;_S:~e (PFC) has been sl't up in T1PAC with the
objectives of introducing patent information as a vital input in the process
of promotion of R&D programmes, provide patenting facilities for scientists/
teclulOlogists of the country on a sustained basls, kl>ep a watch on developments
in the areas of intellectual property rights, create awareness and understanding
relating to patents and undertake studies and analysis of policy related to
TRIPS Agreement and other agreements under World Trade Organisation, etC.
The website www.illdianpatents.org.in provides comprehensive details of the
services and facilities provided by the PFC.

609

Scientific and Technological Developments

To promote innovation among entrepreneurs, a new golden jubilee

initiative called "Technopreneur Promotion Progra~ (TEPP)" .has been
initiated. The main thrust of TEPP ii,.JD..ialLthe._yast untapped innovative
potenti~!._QLthe Indian innovatol];_The support is provided to projects of
individual innovators towards scaling-up the idea/invention/know-how /
designs to working models/prototypes/pilot plants. Besides the financial
support, the endeavour is to link and couple them to the most appropriate
existing R&D facilities and expertise; assist them in patent search/filing of
patents; interface for typing-up with financial institutions for commercial
exploitation, etc.
The Department of Science and Technology under its scheme on "Drugs
and Pharmaceuticals Research' supports collaborative Research and
Development projects jointly submitted by drug companies and the academics
national R&D institutes. The programme aims towards the development of
new drugs and cleaner processing technologies for known drugs/key
intermediates for drugs. The programme covers all systems of medicine Allopathic, Ayurvedic, Homeopathic, Siddha and Unani. In addition to this,
National Facilities essential to undertake R&D have also been set up under
this programme. The programme has resulted in filing of 12 patents in India
and abroad.

TECHNOLOGY DEVELOPMENT BOARD

(, D

r~)

The Technology Development Board was constituted in September 1926. The

Board provides financial assistance to industrial concems and other agencies
for attempting development and commercial application of indigenous
technology or adapting imported technology for wider domestic application.
The areas that got financial assistance from the Board were health and
medicine, engineering and electronics, chemicals and lubricants, agriculture
and biotechnology, information technology, road/air transport, energy and
waste utilisation, and telecommunication. The technology providers include
national laboratories, academic institutions and recognised in-house R&D
units in the industry. Some of the products successfully produced and
marketed include first genetically engineen::s;\ hepatitis B vaccine.iJ?io-fertilizer
from f!\aize waist, gluten wifuthe brand ~ame Suryambtj D~~~o Butanol,
an important substitute drug intermedU\te in the manufacture of antituberculosis drug; Cefixime-an orally active fourth generation Cephalosporin
antibiotic; recombinant hepatitis B vaccine; CAL reagent for detection of
bacterial endotoxin; carding machines for textile mills; Nicotinamide;
Underenoic Acid from castor oil; and fuel pellets from municipal garbage,
etc.
TDB instituted a 'Nationa} Award For Succe55ful Commercialisation Of
Indigenous Technology' by an industrial concern to be given away on the
Tec.~ology Day,ie.,_ll May every year c~cing from 1999. The National
Awara coriSISts of tw~ c~pon~~=. (i) to the industrial concern that
successfully commerdaliSei the indigenous technology and (ii) to the developer /
provider of such technology. Each component carries a cash award of Rs 2

610

India 2005

I"kh to be given to an 551 unit which has successfully commercialised a

technology based product.
NATIONAL ACCREDITATION BOARD
CALIDRATION LADORATORIES (V'-)ll "'- L )

POR TESTING

AND

National Accreditation Board for Testing and Calibration Laboratories (NABL)

has been registered as a society o~g August 1998 under Societies Registration
Act. NABL continued its actiVity of according accreditation to testing and
calibration laboratories after thorough assessment by the experts. NABL has
received international recognition based on International Peer Review and as
a result NABL emerged as cl signatory to Asia Pacific Laboratory Accreditation
Cooperation (APLAC), Mutual Recognition Agreements (MRA) as well as
Signatory to International Laboratory Accreditation Cooperation (ILAC)
Agreements during the year 2000. This will enable mutual acceptance of test
results and measurement data across the frontiers of the countries especially
amongst the APLAC/M[{A/ILAC arrangement partners.
NABL has also initiated laboratory accreditation in new areas such as
clinical laboratories and food testing laboratories which are relevant to the
needs of the society. NAB. has published a directory of accredited calibration
lclboratorles which finds extensive applications in industries.
5&1 PROGRAMMES POR SOCIO-ECONOMIC DEVELOPMENT
The Department of Science and Technology is also devoted to evolving and
implementing specific programmes to promote applications of 5&:T to
improve thl' quality of life especially for the disadvantaged sections of the
society. The areas in which significant achievements have been made are:
setting-up of two Technology Parks for women; low cost housing and
s,mit,ltion; integratt.'d I.md water and cover management; eco-restoration and
sustajllclble lise of biomass in the hilly region; artisanal pottery; artisanal
blacksmiths; artisanal leather tanning; training of agricultural labour (SC
youth) in the use of modern agricultural appliances for improved agricultural
productivity; farm oriented low-cost technology for utilisation of AzoJJa as
bioft.'rtilizer; developing livelUlood base for tribells in Melghat region through
wcltershcd development, etc. Some of the tangible benefits of such programmes
h,we bel'n the generation of appropriate rural tt.>chnologies, redUCing drudgery,
gt.'llerating employment, improving health, and conserving environment. For
socio-economic development of the northeastern states including Sikkim,
steps have been initiated to involve State S&:T councils, NGOs and S&:T
personnel. A number of projects are being supported both in farming and
non-farming sectors after identifying specific areas.
National Science and Technology Entrepreneurship OevelopmCl\t Board
(NSTEDB), established in January 1982 has been implementing several
schemes and programmes o1t"promotion of entrepreneurship and creation of
sustainable employment through the application of 5&:1. 5&T persons are
being trained under Entrepreneurship Development Progralnmes (EDPs) and
Technology based EDPs to equip them to set up their own ventures. n,e Board

Scientific and Technological Developments

611

has also been organising skill development training programnlt's in various

skill areas tor providing sustainable jobs/self-employment opportunities tu
unemployed youth.
Science and Technology Entrepreneurship Parks (STEPs) have been set
up in and around different Science and Technology institutions in the country
in order to provide facilities to existing as well as start-up entrepreneurs on
technology development, testing and calibration, documentation and
computation, training, etc. A scheme for establishment of Technology Business
Incubators (TUis) has been launched in 2000-2001 to promote the growth of
tt'chnology based entl'rprises and to foster faster commercialisation of R&D
results. TBIs are being established in and around academic and R&D
institutions in the country. Entrepreneurship Development Cells (EDCs) have
been established in academic institutions for creating facilities for the
promo(ion of entrepreneurship and other avenues of self/wage employment
ilmong qualified S&T personnel. Science and Technology Entrepreneurship
Dl'veiopll1l'nt (STED) projects are in operation in backward districts. STED
projects aim at establishment of miClO-enterprises in the district of its
oper<\tion. Pm thOSl' unable to join regular Entrepreneurship Development
Programmes (EDPs), Open Learning Programmes in Entrepreneurship (OLPE)
was initi"ted in 1994-95 in collaboration with Entreprelll'Urship Dtvelopment
Institute of India (EDII), Ahmedabad. The Board has launched a comprehensive
website www.tec.:llI10-pn'llt'ur.llt't. The website gives detailed information on
sl~veral aspects of entrepreneurship development.

NATURAL RESOURCES DATA MANAGEMENT SYSTEMS

The Natural Resources I).\t" Management progrclllHuc is being implcmented
to up~rade the existing dat,1 management methodologies at the district level
to facilitate decision making process with regard to local are" management
and development. Launched ill 1982-83, the programme involves sever,ll R&D
institutes of national repute, universities and non-governmental agl'!lCies in
<1 consortium mode. As a pMt of this programlllc, spatial ellld non-spatial
d,\tabases are being generated c\lld updated at the stelte and district GIS
centres. Different modules of Geo-Referenced Area Managenwnt (GRAM)
software package arc being developed to assist the information processing
nt'cds of the district and sub-district level planning. The programme also
envis"ses to develop and delllonstrellt.' the lise of GIS technology through
specific decision support systems for the idl'ntified SL'Ch..lfS vi?., water
conservation, land use planning, elll?rgy l1ldndgement cllld infrastructure
development. Scvcr,ll R&D projl'cts in tllt! areas of land and \Vdt(.'i" m,\lMgeOient,
study of l,mdslides and hydrology of small wat<'rshcds were .11s(l supported.

STATE S&tT COUNCILS

rtw [)l'partmcnt of Science and Technology has been 0lwl..lting C1 scheme

(.'ntitled 'Assistance (or Development of State Councils on &:il'ncc i\nd
Tl'chnology' since 1980. The main objective of the scht:nw is to ,'ssis! States
,Ind Union Territories in settingup of State Councils on Sl'il!llCC and

612

India 2005

Technology which in turn could help the states in formulation, planning,

coordination and promotion of Science and Technology activities within their
areas. The State Councils on Science and Technology have been set-up in all
States and UIs. ThE State Councils have now reached a phase of programme
basl'd S&T cooperation to address location specific and region specific
problems. Steps were initiated to formulate studies on health care, traditional
artisanship, agricultural practices, etc., to identify and plan S&T intervention.
Steps were also initiated to help the State Councils to encourage replication
of successful technologies developed by them.
SCIENCE COMMUNICATION AND POPULARISATION
The National Council for Science and Technology Communication (NeSTC)
has been engaged in science and technology communication/popularisation
and inculcation of scientific temper among the people. The emphasis has been
on the development, adaptation, promotion and use of different communication
technologies and h.chniques utilising various media-traditional and nontraditional. The activities undertaken centered around few natural phenomena
and specific events utilising these for Sand T Communication.
The National Children's Science Congress is an important activity
involving children in the age group of 10-17 years from all over the country.
The programme is envisaged to encourage the students to rclate the learning
of science to the environment around, to their immediate social and physical
environment and provide them a forum to interact with scientists to quench
their curiosity and thirst for creativity. In this programme, children in teams
of five each on an average, take up scientific projects related to local issues
and work under the guidance of teachers/science activists, and report their
findings at school/block, district, state and national level congress.
Bibliographies of popular science books in different Indian languages
published during last 150 years have been compiled. To create awareness on
issues of environment and sustainable development several resource persons
haw been trained to organise activities for coordinators of school science clubs
and activities of S&T based voluntary organisations.
. by the
Year 2004 has been declared as the year of Scientific Awarent'Ss
Government. Vigyall Rail, s..~ientific latllas, interaction of scientists with
common man--afeSOine'of the activities being taken up to celebrate the year
of scientific awareness.
VIGYAN PRASAR

Vigyilll Prasar was established in 1989 to take up large scale science

popularisation programmes. It has been striving hard to reach out to masses
through the mass media. Besides, efforts are underway to put together a
network of Science Clubs for spreading scientific awareness and promoting
use of SCIentific methodology in practical lives.

Scientific and Technological Developments

613

S&T RESOURCES INFORMATION

The Department of Science and Technology makes available on a continuous
basis information on resources both manpower and financial resources
devoted to science and technology activities. The directory of R&D institutions
in India being brought out regularly covers names and addresses of R&D
institutions under Central government, State governments, in-house R&D
units of public sector and private sector industries, universities including
deemed universities and institutes of national importance, and scientific and
industrial organisations in the private sector.
The database on extramural research and development projects funded
by different Central government agencies is being maintained and updated

regularly. The data is being utilised to compile the Directory of Extramural

Research Projects.
INTERNATIONAL CO-OPERATION
International science and technology cooperation is realised at three levels,
viz. bilateral cooperation with developed and developing cOll)tries, regional
cooperation such as with SAARC, ASEAN and BIMST countries; and
multilateral cooperation through NAM Science and Technology Centre,
COST ED, UNESCO, etc. India has got bilateral science and technology
cooperation with 56 countries of the world. Suitable mechanisms have been
I'stc1blished with conclusion and implementation of programmes of cooperation
with Bangladesh, Belarus, Brazil, Bulgaria, China, Cuba, Egypt, France,
(;(~rmany, Hungary, Indonesia, Iran, Israel, Italy, Japan, Kazakhastan, Malaysia,
Mexico, Myanmar, Poland, Republic of Korea, Romania, Russian Federation,
Singapore, Sri Lanka, South Africa, Tunisia, Ukraine, UK, USA, Uzbekistan
and Vietnam.
An Integrated long term programme of cooperation in science and
technology between India and Russia is the major interaction instrument
between the two countries. Indo-French Centre for Promotion of Advanced
Research (IFCPAR) is one more initiative between India and France for
promotion of collaborative research in advanced areas of fundamental and
c1pplied science and technology. A major bilateral programme in the form of
Indo-US Science and Technology Forum has been launched. A new project
bused personnel exchange programme with German Academic Exchange
Service (DAAD) is being implemented.
Indian scientists have conducted experiments in the fields of
crystallography, condensed matter physics, high energy scattering, solid x-ray
spectroscopy, nuclear resonant scattering, magnetic Compton studies, etc., and
rt'ceived advanced training and international research facilities under various
international science and technology cooperation programmes.
Under international Science and Technology cooperation programme the
following Joint R&D Centres have been established; Indo-Russian Research
Centre in Advanced Computing at Moscow; International Advanced Research
Centre for Powder Metallurgy (ARC-I) at Hyderabadi Indo-Uzbek Centre for

614

lndiil 2005

Medicill Appliciltions of Low-Level Lilsers for treiltment of Tuberculosis ilnd

Allied Diseas('s at New Delhi.
A number of collilborative nationill progrilmmes, viz., design and
development of INDUS-I ilnd INDUS-II synchrotron radiation sources at
Indore with Russian collaboration; characterisation of Ladakh (Handle) lift,
for installation of the 2-m telescope and setting up of 14 GH,OP computer
at Indian Institute of Astrophysics, Bangalore for N-Body simuitiltions with
Japill1eSe experts; Dev(>lopment of gamma ray telescope at MOllnt Abu with
Russian collaboration; a plant for production of 100 million dost's of oral polio
vaccine (OrV) at Bulandshahar with Russian collaboration; ilnd slIperconducting
cyclotron and cryogenics ilt VECC, Kolkata have been established.
METEOROLOGICAL SERVICES
The India Meteorological Department (IMD) was established in 1875. It is the
National Metc>orological Servicc and the principal Government agency in all
matters relating to met('orology, seismology ilnd allied subjects. Tlw Depilrtment
has units all over the country engaged in collecting meteorologicil! and
seismological data besides providing various meteorological services. Its mil in
objective is to provide meteorological informCltion for wei1ther sensitive
activities like aviation, shipping, agriculture, irrigation, off-shore oil exploratioJl
and industries. The Department also issues warnings against severe wt'ather
phenomenil like cyclones, dust-storms, heavy rains, cold and heal waves that
caus(' destruction of life and property. Besides, it also provides climatologicClI
informiltion, records earthquakes and promotes research in meteorology. The
Department mClintains an extensiVf.' network of modern observatories Clod
communication links all over the country. Observations received through high
power radars and weather satellites are extensively used these days for
analysis and prediction of weather.
India launched il geostationary meteorological satellite METSA T in
September 2002, and re-named it KALPANA-l. KALPANA-l transmits cloud
imageries in illl the three bands of Very High Resolution Rildiometer (VHRR)
payload, i.e. Visible (VIS) Infrared (IR) and Wilter Vapour (WV) bands.
Another geostationary (multipurpose) satellite INSAT-3A was launched in
April, 2003. INSAT-3A is transmitting cloud imageries from both VHRR and
CCO payloads. VHRR trilnsmit cloud imageries with one km resolution in
Visible, eight km (('solution in Infrared and Water Vapour bands. CeD
payloild transmits in Visible, Near Infrared and Shortwave Infrared bilods
with 1 km resolution in each channel.
The IMD maintains 51 scismolo~cal observatories under the national
network to monitor the seismic activity in and ilroundthc country. Of these,
twenty-four seismological observatories were upgraded with state-of-the-art
digital broadband seismograph systems and modem communiciltion facilities.
A Central Receiving Station (CRS) and a Nationitl Seismological Oatit Base
Centre (NSDC) have been estitblished at New Delhi to receive, analyses and
systematically archive the seismic data. In operational mode, and center is
responsibll' for quick determination of earthquake parameters and dissemination

Scientific and Technological Developments

615

to various user agencies. Recently, a 16-elem{'nt VSAT based digital telemetry

seismograph station network with a central receiving station at New Delhi,
was established in and around Delhi for clos{' monitoring of seismicity of the
frgion. The upgraded network has generated excellent digital data sets for
sC'veral regional earthquakes in the region, thus enabling us to b{'tter
understand the earthquake processes in the inter-and intra-plate tectonic
fegimes and refine the crust and upper mantlc structure.
IMD continues to participate in multi-disciplinary scientific cruises of
Ocean Research Vessel in the Arabian Sea, Bay of Bengal and Indian Ocean,
etc. during pre-monsoon, monsoon and post-monsoon periods. These cruises
ilfe planned to collect meteorological data over the adjoining sea areas for
the study of various aspects of monsoon circulation and other important
weather :,ystems affecting the country and also to validate satellite data of
m('teorological parameters on board the Indian Remote Sensing Satellit{'
(IRS P3) as and when required.
The first operational Long-Range forecast of seasonal southwest monsoon
falnfall (June-September) of India was issued by IMD in 1986. IMD has
developed n{'w Long range forecast models which are being introduced from
2003.

The Crop Yield Formulation Unit of the Department has developed

statistical models using correlation and regression techniques to forecast crop
yield on operational basis for 26 sub-divisions growing Kharif rice and for
1(, sub-divisions growing wheat. Based on these m0dels, pre-harvest monthly
crop yield forecast for KharH rice are being prepared for every year from
August to December and for wheat from January to May.
IMD has also installed 250 cyclone Warning Dissemination Systems
(CWDS). This is unique in the world and helps in direct broadcast of Cyclone
warning to the public in general and coastal authorities in particular.
Currently 100 more digital Cyclone Warning Dissemination Systems (OCWDS)
afe being installed along Andhra Coast. IMD publishes its quarterly journal
_MbUSAM, annual publications of Indian Astronomical, Ephemeris, Rashtriya
Panchang in 13 languages and Sunrise, Sunset, Moonrise and Moonset tables
are brought out by the Positional Astronomy Cen~"_Ko~

The National Centre for Medium Range Weather. Forecasting (NCMRWP)

was established in 1988, for providing the medium range (three to ten days
in C1dvance) weather forecasts to the Indian farmers- The Centre has been
providing medium range forecasts by using global numerical model and
agrometeorological advisories (AAS) to the farmers in various agro-climatic
zones of the country through its field units. These units are located at State
Agricultural Universities and ICAR research Institutes. The state-of-art
numerical models are being used at NCMRWF for generation of weather
forecasts over the entire globe using mathematical model with initial condition
generated after assimilation of global observations. At present, the forecasts

616

India 2005

are produced for a 150 km resolution grid that would soon be changed to
a higher resolution of 75 km grid or less.
Apart from the farming community, NCMRWF is also providing the
forecast products to India Meteorological Department, Indian Air Force,
Indian Navy, Snow and Avalanche Studies Establishment and the nongovernmental organisations. In addition, forecasts of vertical profiles of wind
are provided for launch of space vehicles. NCRMWF products were utilized
during various field experiments of National importance conducted over
Indian Seas viz., INDOEX (Indian Ocean Experiment) and BOBMEX (Bay of
Bengal Monsoon Experiment).
SURVEY OF INDIA
Survey of India (SO!), the national survey and mapping organisation under
the Ministry of Science and Technology was set up in 1767. In its assigned
role as the National Principal Mapping Agency, Survey of India bears a special
responsibility to ensure that the country's domain is explored and mapped
suitably to provide base maps for expeditious and integrated development
and ensure that all resources contribute their full measure to the progress,
prosperity and security of India. The primary responsibility of SOl is to
maintain topographical map coverage on 1:250 K, 1:50K and 1:25K scales. The
topographical map coverage on 1:250 K and 1:50 K scales covering the entire
country have been completed and the map sheets are being updated at regular
intervals to depict latest spatial information. Surveys on 1:25 K scale are being
taken up as national requirement keeping in view the priorities indicated by
the Central/State governments and other user agencies.
Besides, being grouped under "Scientific Surveys" in Government of
India Business rule 1971, it has also been called upon extensively to deploy
its expertise in the field of geodetic and geophysical surveys, study of
seismicity and seismotectonics, glaciology, participation in Indian Scientific
Expedition to Antarctica and projects related to digital cartography; and
digital photogrammetry etc. to provide basic data to keep pace with Science
and Technology Development. SOl has undertaken creation of Digital
Cartogrphic Data Base of Topographical maps on various scales. The digital
data is being used by various agencies for planning and GIS applic~tions. It
also undertakes large-scale surveys for various developmental projects including
hydro-electric, command area, canal area, cantonment area schemes, etc.
The Department's responsibility is to fix the external boundary of India,
their depiction on maps published in the country and also advise on the
demarcation of inter-State boundaries. It also provides support to neighboring
countries, like Nigeria, Afghanistan, Kenya, Iraq, Nepal, Sri Lanka, Zimblibwe,
Indonesia, Bhutan, Mauritius, etc. in the field of survey education, transfer
of technology and various other surveying technologies under bUateral
arrangements.
The Great Trigonometrical Survey Triangulation Network of India and
adjacent countries was started in the year 1802. Survey of India celebrated

Scientific and Technological Developments

617

200 Years of the 'Great Are'-the greatest measurement of the earth ever
undertaken, initiate..d 200 years ago, is con.!!~~~~ _t.Q-j'_~. gne of Jh!Lp'0st.

stupendous works in the history of sciel)S~. The 'Gr~c' exhibition wa~

organised in U.K. in 2003 and pictorial publication and films specially made
on Great Arc and the Surveying Traditions of Survey of India were released
on this occasion.
NA TIONAL ATLAS AND THEMATIC MAPPING ORGANISATION
While Survey of India meets the national needs in cartography, some
specialised thematic maps required to meet the needs of the specific users
are taken care of by the National Atlas and Thematic Mapping Organisation
(NATMO), operating under the Department. It also concentrates its attention
111 il number of areas to integrate resource maps with other relevant socio('conomie data and represent them in spiltial forms, useful for developmental
planning. NATMO is trying to develop the new technology of reverse printing
for NATMO maps on experimental basis. It is also trying to introduce the
technique of using metallic colours in map printing. These facilities are also
being modernised.
AUTONOMOUS SCIENTIFIC INSTITUTIONS
The Department of Science and Technology provides grants-in-aid to the

following 18 autonomous scientific research institutions engaged in frontier

<1rl'tlS of research in basic and applied sciences : (i) Bose Institute, Kolkata
is devoted to fundamental and applied research in physical and life sciences;
(ii) Agharkar Research Institute, Pune-research in basic and applied aspects
in the fields of biological sciences; (iii) Shri Chitra Tirunal Institute for Medical
Sciences and Technology, Thiruvananthapuram-developing biomedical
~~ngineering and teclmology; prOViding and demonstrating high standards of
piltient care in advanced medical specialities and developing post-graduate
training programme of the highest quality in these fields; (iv) Indian
Association for the Cultivation of Sciences, Kolkata-studies on solid state
physics, material sciences, theoretical physics, spectroscopy, energy research,
cemistry including biological chemistry, polymer science, etc.; (v) Indian
Institute of Tropical Meteorology, Pune-functions as a national centre for basic
and applied research in tropical meteorology; (vi) Indian Institute of
Astrophysics, Bangalore-research in emerging as. well as interdisciplinary
areas of astrophysics and heavenly bodies, and development of instruments
used in astrophysical studies; (vii) Jawaharlal Nehru Centre for Advanced
Scientific Research, Bangalore-research in frontier areas of chemistry, physics
of materials, computational fluid dynamicS, geodynamics, condensed matter
theory, animal behaViour, genetics, etc.; (viii) Raman Research Institute,
Bilngalore-research in basic sciences such as astronomy, astrophysicS, liquid
crystals, etc; (ix) S.N. Bose National Centre for Basic Sciences, Kolkatapromoting advanced studies in selected branches of bask sdences; (x) Birbal
Shahni Institute of Palaebotany, Luc:know-research in the area of palaeobotany,

618

India 2005

its relevance in modem context, (xi) Indian Institute of Geomagnetism,

Mumbai-observing and understanding some of the physical processes taking
place in the innermost crusts of the earth as well as phenomena occurring
on the sun and in near earth and interplanetary space; (xii) Wadia Institute
of Himalayan Geology, Dehradun-basic research in areas of biostratigraphy,
petrology and geochemistry, sedimentology, tectonics and environmental
geology to understand geodynamics of the Himalayan region; (xiii) International
Advanced Research Centre for Powder Metallurgy and New Materials,
Hyderabad-the development of high performance materials, and processes;
(xiv) Technology Information Forecasting and Assessment Council, New
Delhi; (xv) Vigyan Prasar, New Delhi; (xvi) National Accreditation Board for
Testing and Calibration Laboratories, New Delhi; (xvii) Centre for Liquid
Crystal Research, Bangalore and State Observatory, Nainital.
The DST also extends financial and Administrative support to the
following academies and professional bodies which are engaged in the
promotion of Sand T in the country through the involvement of scientists
and engineers; (i) Indian Academy of Sciences, Bangalore; (ii) Indian Nation"l
Science Academy, New Delhi, (iii) Indian National Academy of Engineering,
New Delhi; (iv) National Academy of Sciences, Allilhabad; and (v) Indian
Science Congress Association, Kolkata.

DEPARTMENT OF SCmNTIFIC AND INDUSTRIAL RESEARCH

The Department of Scientific and Industrial Research (DSIR), a department
under the Ministry of Science and Technology operates a scheme - Technology
Promotion, Development and Utilisation (TPDU) Programme and is the
administrative department for Council of Scientific and Industrial Research
(CSJI~) and two public enterprises, viz., National Research Development
Corporation (NRDC) and Central Electronics Ltd. (CEL).

TECHNOLOGY PROMOTION, DEVELOPMENT AND UTILISATION

(TPDU) PROGRAMME
In the tenth plan scheme-TPDU Programme was evolved after merging the
ninth plan schemes on Research and Development by industry (ROn,
Programme Aimed at Technological Self Reliance (PASTER) and Scheme to
Enhance the Efficacy of Transfer of Technology (SEETOT) including Asian and
Pacific Centre for transfer of Technology (APCTT).
The TPDU Programme essentially endeavours to encourage industry to
incrl'ase their share in country's R&D expenditure, support a larger cross
section of small and medium industrial units to develop state-of-the-art
globally competitive technologies of high commercial potential, catalyze faster
commercialisation of labscale R&D, enhance the share of technology intensive
exports to overall exports, strengthen industrial consultancy and technology
management capabilities and establish user friendly information network to
facilitate scientific and industrial research in the country.
TPDU comprises six component programmes, viz., Industrial R&D
Promotion Programme; Technology Development and Innovation Programme;

Scientific and Technological Developments

619

Technology Management Programme; International Technology Transfer

i'rogr(lmme; Consultancy Promotion Programme; and Industrial R&D and
7echnology Information Facilitation Programme.
NATIONAL RESEARCH DEVELOPMENT CORPORATION
The N(ltional Research Development Corporation (NRDC) was established in
1YS3 as a commercial company for promotion of inventive activity in the
country and translating Research and Development (R&D) results into
marketable indllstrial products, processes and services. The Corporation, a
public sector enterprise plays a catalytic role in commercial applications of
indigenous and forl?ign R&D results by transfer of technology from laboratories
1<) industries.

NRDC is a one stop provider of comprehensive business services,

dt'\'oted to satisfying the needs of the technology supplier on the one hand
ilnd the technology recipient on the other hand. NRDC works in close
conjunction with over 200 Indian R&D institutions/universities and has
licensed ov~!r 2,000 technologies for commercial exploitation, of which nearly
1,000 are in production in India and abroad.
NRDC also guides and assists the entrepreneurs in realising their
technical busin'ss plans. The portfolio of activities include: arranging financial
assistanr:e for development of technologies in priority areas; providing IPR
protection and IPR consultancy services; carrying out market surveys;
preparation of project reports/business plans; arranging turnkey projects
abroad-based on Indian technologies; licensing foreign know-how to Indian
dipnts; assisting export marketing of products of licensee companies, etc.
CENTRAL ELECTRONICS LIMITED
The Central Electronics Ltd., (CEL) holds a unique position among public

sector enterprises in electronics with emphasis on indigenous technology

specifically in the area of renewable energy products through the Solar
l'hotovoltaic route the strategically critical military components and subsystems.
The company is operating in three thrust areas. One thrust area is in
thl' PV related renewable energy products, which have been certified by the

EUropean Commission. PV products manufactured by the company have the

potential to address the high demand in the European market in addition to
thilt in the domestic market.
The second thrust area is in the field of railway signaling products. The
LOmpany has successfully designed and developed signaling equipment as per
European standards for deployment in the Indian Railway Network.
The third thrust area is in militarily strategiC components and subsystems for Phased Array Readers. The Phased Array Radars are deployable
not only in the Akash Missile Programme, but also as Weapon Locating
Radars.

620

((lSI f\ )

India 2005

COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH

The Council of Scientific and Industrial Research, a premier autonomous R&D
organisation with its 38 laboratories and 47 regional centres undertakes
research and development activities covering the entire canvas of S&T in thp
civilian sector through its R&D activities, CSIR is creating maj~r and
innovative knowledge networks across and beyond CSIR laboratories.
In the Field of Aerospace Science and Technology: NAL's Light Transport

Aircraft-SARAS-completed a significant milestone as it was rolled out last

year. The OGCA gave clearance to the flight trials of the aircraft. The maiden
test flight of SAJ~S took place on 29 May 2004; Hardware for mesoscall'
modeling for-rrions~on relatea-predictions--aeveto-p-ed; Improved software for
Pressure Sensitive Paint (PSP) data processing has also been developed; Shape
Memory Allow (SMAs) developed for aerospace applications; Civil aircraft
avionics and staff warning systems have been developed and installed;
Automatic visual range assessor installed at Cochin.
In the field of Biological Science and Technology : Bacterial Leaf Blight
(BLB) resistant ~~m~~o!1~J:!!l.!i. and Trigw;;.". Rice lines havebeci1developed
through the appliCahon btONA Market echnology by Centre for Cellular

and MOlecular Biology (CCMB), in partnership with other institutes. These

varieties have shown excellent resistance of BLB under greenhouse conditions
under limited field trials. NBRI has developed transgenic cotton cultivars cell
lines and successfully synthesised the genes. This is the first agronomiCally
valuable transgenic technology developed in India that has been accepted in
seed industry for commercialisation; A unique web enabled software (PLHOST)
has been developed and commercialised. It enables genomewide comparison
of several thousand proteins of one genome with all the other proteins of
various other !~~()~~s. ,
In the field 01 Chemical Science and Technology: CSMCRI has successfully

developed Thin Film Composite (TFC) reverse osmosis (RO) high flux
membrane in-house. The indigenously developed membrane is suitable for
treatment of tertiary treated sewage water. One million litres/day capacity
plant has been commissioned at Chennai Petroleum Corporation Ltd., (CPCL),
Chennai. The use of this new membrane, which is non-biodegradable, and
which has the ability to work over a wide pH range, would greatly reduce
capital investment and operating cost. NCL has made a major contribution
by designing novel structures like stacked sheets by using new channel guest
system. This novel contribution has found a place on the cover page of
prestigious Journal of Organic Chemistry. CSMCRI has installed 1,200 litre!
hr brackrish water desalination plant in Kisari village of Rajasthan. CSMCRI
has established a model cultivation for lathropa &as from which biodiesel
of international specification can be produced. Recovery of Sulphate of Potash
(SOP) fertilizer integrated with production of high purity magnesia fr0111
better sources in Greater Rann of Kutch. Synthetic, peptide-based nanotubes
that have a wide range of futuristic applications have been developed. This

Scientific and Technological Developments

621

class of compounds could be used for delivering DNA material for gene
therapy and also making biochemical sensors. Nanotubes would help in
developing a new generation of "molecular machines" and would benefit
polymer, materials and electronics industries.
IWW

In the field of Earth Science and Technology : Regions of thick segments

in three blocks holding promise of hydrocarbon deposits have been demarcated
in the Narmada Cambay regions on the basis of Magnetotelluric investigations
and also integration or-other geophysical data. Molecular characterisation of
orgill1ir matter of sediments has been carried out which, provides a clue to
the nature and source of the hydrocarbons present and also the processes in
pl,jY that lead to maturation of organic matter. An extraordin~ fluorescent
biomolecll_L~_!rom sea cucumber has been discovered and patented. They are
1M superior in quality and stable more than a year even at room temperature.
A one dimensional multilayered soil hydrology model has been investigated
ilnd the effects of some of the key vegetation and surface processes on soil
m(listure dynamics have been quantified. Effect of initial soil moisture
condition and groundwater flux on evaporation processes is also investigated.
In the field of Engineering Science and Technology : Detection of gaseous

-=--

1l10is!J.:lrc in ppm V level is very important in certain industries. A device has

been developeato detect moisture in the range of 0-1000 ppmV based on

mino and nano-porous alumina sensors. A portable, field operable, hand-held
NJ JD system has been developed, which uses the Harmonic Radar principle
c-it;":iili the security professionals in the search of concealed electronic devices
ilnd other similar items such as timers or remote control receivers for
dl'lonation of explosive dormant and non-operational devices. A pneumatically
drivl'n Anaesthesia Ventilator has been developed, which delivers breaths to
iupply a specific volume of breathing gas to a patient at a desired breathing
ratl', It also maintains required duration for inspiration and expiration.
F.ll'ctrlln Gun (2 numbers) for Micro-TWT has been designed, fabricated and
iL'"tl'd to get the correct information of beam waist and throw for electron
~un trajectory. Also an in-house developed package 'MAGFLD' for Periodic
I'prrnanent Magnet (PPM) System design for Micro-TWT with experimentally
meilsured values has been validated. A Fluidized Bed Separator has been
ctl'Vl'loped for separation of cenospheres in the area of mineral processing,
An indigenous CeTV nuclear camera has been fabricated and supplied
complete optical system to be used for remote viewing of the interior of the
reactor coolant tubes.
In the field of Food Science and Technology: Various malto-oligosaccharides
have been prepared for use as fat substitutes. Ragi malt ex amylases having
high specific activity to be utilised in both bread making and brewing
Industries as cost-effective substitutes for barley malts, has been developed.
It Was demonstrated that dietary fibres and its fermentation production
butyric acid were beneficial in improving diabetic status and minimising the
complications of diabetic nephropathy state with particular emphasis on
hl'parin sulfate. In order to obtain an oU combination, which not only provides

622

India 2005

health benefits but also, suitable for use in frying dishes, combinations of oils
were prepared. Combination of palm oil or mustard oil along with rice bran
oil and sesame oil provided a stable frying oil. Combination of groundnut
oil with rice bran oil or red palm oil provided good rheological stability. An
on-line fruit sorting system has been developed for sorting and grading of
fruits, apples in particular. Technology has been developed for production
of phycocyanin from Spirulina, cultivated in clean water system. Spinllina
biOlffiiSS1SProcessed for obtaining a phycocyan rich aqueous fraction which
is later subjected to aqueous two phase extraction method to separate the
contaminant such as chlorophyll. A process has been developed for the
production of egg yolk antibodies of consistent quality, easy to produce and
non-invasive for an insect specific protein.
In the field of Health Care Science and Technology : Technology for the

commercial manufacture of CONSAP, a vaginal contraceptivE' cream from

Silpindas ll1ukoJ'Osil has been licensed to Mis Hindustan Latex Limited.
Bacopa extract (Promind) has been licensed to Mis Lumen Marketing
Company and the product has been marketed by them as Memory Power
and Memory Perfect. Also, double blind clinical trials for CT-l
(antihyperglyccmic) art' continuing. Permission has been obtain{~d from
DCG(l) to conduct clinical trials of (X and ~ arteether (anti malarial). Por the
first time CCMB scientists have discovered that interfering RNA can convert
l'lIchromatin into heterochromatin, both components of chromosomes. This
Celll, sometimes, result in virtually stopping the gene expression. It has been
shown, for the first time, that cholesterol depletion from macrophage plasma
membranes using methyl-~-cydodextrin results in a significant reduction in
the extent of leishmania I infection. Analysis of Mycobacterium tuberculosis
genome by CDRI lead to the idl~ntification of two genes, Gly AI and GlyA2
proposed to be putativegenes encoding for Serine hydroxylamines transferase
(SIIMT).
Cn the field of Housing and Construction Technology : A technology for
the bulk utilisation of Marble Slurry Dust (MSD) in roads, embankments and
mass concrete work has been developed. A road stretch based on the
technology WelS constructed in Rajsth,m using MSD. Natural Fibre Composite
Dour Shutters have been developed and technology for production has been
lict'nsl'd to a private industry; Mechanized casting of reinforced concrete cored
units for roof/floor has bt.!cn developed; Fibre optic sensors applied for health
monitoring of civil engineering structures; A sclwme has been prepared for
reduction, due to the tilted ghU':ing, in transmitted direct solar radiation
through the ghMing irrespective of the direction the gl'lZing faces to. The
benefit ,lcCl"ucd is maximum for glazing oriented towcuds E, W, SE and SW
directions for buildings located at lc\titudes higher than the tropic of cancer.
In the field of Materials Science and TCI.:hnology : A biometric reactur has
been designed and fabricated tll be inst,llled as a payload on the first flight
of recoverelblc space c,'psule being pl,Ulned in 2005 by Indian Sp<lCe Research

Scientific and Technological Developments

623

Organisation (ISRO); An idea of underpinning has been conceived to facilitate

safe and optimal underground extraction of dean coal from thick and
contiguous seams/sections in presence of weak and laminated parting inbetween; an inorganic composition has been developed for grouting the roof
bolts which provide reliable anchorage by preventing bed separation due to
bonding between the strata and the bolt. The composition contains all the
requisite key features like instant grip, high, early and ultimate strength, nonflammable, non-corrosive, non-allergic, and has good sheet-life and performance
of anchorage.
NEW MILLENNIUM INDIAN TECHNOLOGY LEADERSHIP INACTIVE
CSIR has launched new scheme, New Millennium Indian Technology
Leadership Initiative (NMITLI), which provides support to various projects
being jointly carried out by Industry, both public and private, and R&D
institutes. The on-going projects cover diverse areas. Notable ones are from
liquid crystals to decentralised power packs; functionalisation of alkane to
advanced nano-materials and composites; defunctionalisation of carbohydrates
to biodegradable plastics; and new targets and markers for cancer to advanced
drug delivery systems. As a result of this, an oral herbal formulation for the
treatment of psoriasis has been developed jointly witl1 M/s Lupin Laboratories
and an Investigational New Drug (IND) application has been filed for the
first time in the country. A simple and cost-effective office-computing
platform, Sof Comp, has been successfully completed and is now ready fol'
soft-launch.
Human Resource Development: CSIR is committed to the development and
nurturing of highly qualified S&T manpower at the national level in the <lge
group of 16 to 65. It hels the mandate to find new mechanisms to pWlllote
development of human resource in basic sciences. It also promotes, guides
and co-ordinates scientific and industrialt'esearch through funding of research
projects at the national level. Pew of the activities are Award of Shanti SWclrup
Bhatnagar Prizes (SSB); YOU1\g Scientist Awards (YSA); Selection of Junior
Research Pellows (JRP) through National Eligibility Test (NET); Selection of
Senior Research Fellows (SRP), SRF Extended and Research Associates (RA);
Selection of Senior Research Associates (SRA); Funding of Extra Mural
Research (EMR) schemes at universities/R&D organisations; Visiting
Assodateship Scheme; TravellConference/Symposiuln grants; CSIR
Programme on Youth for Leadership in Science (CPYLS); Selec~ion of Shynma
Prasad Mukherjee Fellows (SPMF).

InteUectual Property Management : CSIR is pioneer and pace setter in IP

Managemel\t in the country and has been on the forefront of creaHI\g IPR
for its outputs since its inception. CSIR continued its efforts for enhancing
the value and volume of [Po As a result CSIR contiJ,ut.'Ci to maintain its
domiJ,ant position in IP arena by filing 469 foreign and 405 Indian pfttent
applications during 200304.

624

India 2005

ATOMIC ENERGY
The Department of Atomic Energy (DAB), established on 3 August 1954, has
been engaged in the development of nuclear power technology, application
of radiation technologies in the field of agriculture, medicine, industry, and
basic research.
An integrated group of organisations, the Department comprises five
Research Centres, three Industrial Organisations, four Public Sector
Undertakings, and three Service Organisations. It has two Boards for promoting
and funding extra-mural research in nuclear and allied fields, and mathematics.
It also supports seven institutes of international repute engaged in
research in basic sciences, astronomy, astrophysics, cancer research and
education, etc., and a Society that provides educational facilities to the
children of DAE employees.

NUCLEAR POWER PROGRAMME

The DA~~ been pursuing a 3-stage Nuclear Power Programme as follows:
(a) The ~ first stage comprises setting up of pressurised heavy water
reactors (PHWRs) and assocaited fuel cycle facilities. (b) The second stage
envisages setting up of fast breeder reactors (F~Rs) backedby reprocessing
plantsand plutonium-based fuel fabrication plants. (c) The third stage will be
based on the thorium-233 cycle. Uranium-233 is obtained by irradiation of
thorium.
The Nuclear Power Corporation of India Ltd., (NPCIL), a public sector
undertaking of DAE, is responsible for the design, construction and operation
of nuclear power reactors. The company operates 14 (2 Boiling Water Reactors
and 12 Pressurised Heavy Water Reactors) reactors with a total capacity of
2,770 MWe. It is constructing 6 PHWRs and 2 light water reactors.
The Indira Gandhi Centre for Atomic Research (IGCAR) is engaged in
the design and development of liqUid sodium cooled fast breeder reactors,
to meet the growing demand for electricity. IGCAR has successfully developed
the FBR technology and completed design of a 500 MWe Prototype FastBreeder
Reactor (PFBR). A new company BHAVINI has been formed for implementing
the project. The new company relieson IGCAR for expertise in technology,
and on NPGIL for expertise in project management.
The ongoing development of 300 MWe Advanced ..H.~~vy Water Reactor
(AHWR) at BARC aims at developing expertise for thorium utiliSiffon'Artd
demonstrating advanced safety concepts. Thorium based systems such as
AHWR can be set up on commercial scale only after a large capacity based
on fast breeder reactors is built up.

NUCLEAR POWER PROGRAMME : STAGB-I

PRESSURISBD HEAVY WATER REACTORS
The Indian NJ,lclear Power Programme took off in the sixties. PHWR was the
reactor of choice for the first stage of the programme. However, to gain

625

Scientific and Technological Developments

operational experience, initially an ntomk power station consisting of two

boiling water reactors (BWR), was set up at Tarapur, Maharasthra. This was
a collaborative venture with the General Electric of USA. The station,
commissioned in 1969, is still in operation.
The first two PHWRs, built at Rawatbhata, Rajasthan, had commenced
commercial production in 1972 and 1980. These reactors were built partly with
the Canadian collaboration. Subsequently, the R&D endeavour of DAE
organisatinos, with the support of the Indian industry, led to the indigenisation
of PHWR which was marked with the successful commissioning of two 220
MWe reactors at Kalpakkam nenr Chennai, Tamil Nndu in the years 1984 and
1986. Later, the design of the 220 MWe PHWR WnS standardised nnd two
reactors of this design were commissioined at Nnrora, Uttar Pradesh in 1989
and 1991. The design standardisation has marketdly reduced gestation period
of new reactors.
The indigenous technology of PHWR reached commercial maturity with
the commisSioning of two 220MWe PHWRs at Kakrapar in 1992 and 1995.
In the years 1999 and 2000, two state-of-the-art 220MWe PHWRs came online,
each at Kaiga (Karnataka) and Rawatbhata (Rajasthan).

,.--

The growing experience of NPCIL in nuclear technology, has resulted

in improving performance of its nuclear power plants.
The electricity generation has risen from 3,000 million units in the year
1981-82 to 17,861 million units for the year 2003-04.
-

---

To provide a parallel stream for faster growth of nuclear power, India

had entered into an agreement with the Russian Federation for setting up an
atomic power station comprising two pressurised water reactors of 1,000 MWe
capacity each, at Kudankulam (Tamil Nadu). Construction of these reactors
ahd begun on 31 March 2002.
DAE has an ambitious nuclear power programme aiming at achieving
an installed nuclear power capacity of 20,000 MWe by the year 2020.
NUCELAR FUEL CYCLE
The Nuclear Power Programme has a number of ancillary operations which
form Nuclear Fuel Cycle. The Front-End of the Cycle includes mineral
exploration, mining, and processing of ore, and fabrication of fuel. The BackEnd of the Cycle covers reprocessing of spent uranium fuel, and management
of nucelar waste.
.
India has acquired comprehensive capability in the' PHWR design,
construction and operation of assocated plants/facilites covering the entire
nuclear fuel cycle of the nuclear power programme based on pressurised
heavy water reactors. This includes production of heavy water.
The DAE organisations contributing to the Front-End of the Nuclear Fuel
Cycle Programme are the Atomic Minerals Directorate for Research and
Exploration (AMD), Hyder.bad, Uranium Corporation
of __
India
(UCIl),
.....__-_.
._.. Ltd.,
.."
.. , . _----~-

.--.~

626

India 2005

Jaduguda (Jharkhand), Nuclear Fuel Complex (NFC), Hyderabad, and Heavy

Water Board (HWB)-Mumbai. BARC and [GCAR administer the Back End of
the Cycle.

Front End Fuel Cycle: The operations under the Front-Fuel Cycle range from
mining, milling and processing of ore, and fabrication of fuel. In addition,
heavy water prodcution is also an ancillary programme ot PHWR pogramme.
Heavy Water Production : H~avy Water is used as m~e!ator and c~l~~_t_
in PHWR. The Heavy Water Board (HWB) of DA~ responSiEle for bUlldtng
and operating heavy water plclnts in the country. The Board has seven heavy
water plants in the country. The performance and safety record of all the
operating Heavy Water Plants (HWPs) has been excellent. Besides meeting
domestic needs of heavy water, the Board has exported heavy water.
The Board is engaged in its energy conservation programme to further
r('ducl' specific energy consumption per kilogramme of heavy water pl'Oducted.
Recognising the efforts put in by the Board in the field of energy conservation
clnd energy management, the Bureau of Energy Efficiency of the Ministry of
Power, assigned to the Board a lead role to carry out energy management
cmd conservation for fertilizer, petroleuOl and chlor alkali sector industries to
clchiev(' the national goal of energy conservation.

Heavy Water Upgrading: For upgrClding the degraded heavy water from
research reactors, a heavy water upgrading facility was set up at Trombay
in 1962. Through continuing research, BARC has developed heavy water
upgrading technology for USt' on cllmmcrcial scale. The technology employs
indigenously developed tower internals in vacuum distillation columns. Based
on this technology, at present 23 upgrading final enrichment towers are in
operation at various sites and. many more are under construction.

Survey and Exploration: The Atomic Minerals Directorate for Exploration

and Research (AMD) is engaged in survey, exploration and evaluation of
resources of uranium, thorium, niobium, tantalum, beryllium, zirconium,
lithuium, ytrium, and rare earth clements required for the indigenous atomic
cnl>rgy programme, and geological studies related to the selection of nuclear
power plant sites and repositories for the disposal of nuclear wastes.
Survey and exploration activities had commenced in 1949. The AMD
issues the monazite test certificate to the exporters of beach sands minerals,
which is mandatory for exporting the mineral consignments, as they are
associated with monazite, a prescribed substance defined under the Atomic
Energy Act.

Mining and Ore Processing: The exploratory efforts of AMD have led to
the opening of uranium mines at Jaduguda, Bhatin and Narwapahar, all in
Singbhum (East), Jharkhand state. These mines, being operated by the
Uranium Corporation of India Ltd., (UeIL), publiC sector undertaking of DAE,
have been meeting the needs of the Indian Nuclear Power Programme. A new
mine has been commissioned at Turamdih in Singbhum during the year 2003.

Scientific and Technological Developments

627

To meet the projected demand of the nuclear power programme, UCIl

has taken up the work to develop mines at Banduhurang and Bagjata (both
in ]harkhand), Lambapur (Andhra Pradesh) and Domiasiat (Meghalaya). DAE
is also working to exploitother secondary resources.
UCIl operates a Uranium Mill for processing of uranium Of(~S to produce
uranium concentrates, known as yellow cake, which is further sent to NFC
for fuel fabrication. In additon, magnetite present in the uranium ore is
recovered as a by product in the uranium process plant.
The Research and development in the field of ore processing and
uranium metal production is done at Trombay. An uranium metal production
facility for production of uranium ingot operates at Trombay.

Nuclear Fuel Fabrication : Nuclear fuel fabrication for power reactors and
research reactors is done respectively at the Nuclear Fuel Complex (NFC).
Hyderabad, and BARe. In the development of new fuels, BARC and IGCAR
are engaged.
The Indian PHWR uses natural uranium-based fuel. The indigt'nou:-.
effort of conversion of yellow cake to fuel grade uranium and fabricntillll "f
fuel elements for power reactors, had achieved a major milestone, with: w
fabrication of the first fuel element at Trombay in 1959.
Recently NFC has successfully initiated fabrication campaign of 37
element fuel bundl('s for the forthcoming 540 MWe PHWR unit at Tarapur
(Tarapur-4).
At BAlK a wide variety of fuels have been developed lmd fabricated
on industrial scale. For fabrication of indigenous mixed oxide (MOX) fuel
assemblies for boiling water reactors at TAPS, the Advanced Fuel Fabriacation
Pacility (AFFF) was set up by BARC at Tarapur. The MOX fuel produced here
has given satisfactory performance.

Back-End of Nuclear Fuel Cycle: The Back-End of the Nuclear Fuel Cycle
comprises fuel reprocessing and nuclear waste management.
Fuel Reprocessing : The Indian nuclear power generation programme is
based on a closed-cycle approach that involves reprocessing of spent fuel and
recycling of Plutonium and Uranium-233 for power generation.
DAE, from the inception of its nuclear power programme, had commenced
development of fuel reprocessing technology. Now it has a Pilot Plant for fuel
rf.>procssing at Trombay and industrial scale plants at Tarapur and Kalapakkam.
The plant at Trombay processes spent fuel from research while the other two
plants process spent fuel from power reactors.

Nucelar Waste Management: The radioactive wastes generated at various

stages of nuclear fuel cycle are categorised as low, intermediate and high level
wastes. The plants for management of all types of radioactive wastes have
been in operation at many nuclear facilities. The low and medium level liquid
radioactive wastes are treated in eco-friendly ways using various processes.

628

India 2005

The high level wastes, generated in very small quantities, are fixed in
class matrix. Vitrification, a complex technology possessed by a few nations
only, has been successfully developed at Trombay. Based on this technology,
two Waste Immobilisation Plants (WIPs) have been operating at Tarapur and
Trombay. A facility for the immobilization of waste in cement matrix has been
commissioned at Kalpakkam. BARC is constructing an Advanced Vitrification
System at Tarapur for high level waste immobilisation based on Joule Melter
Technology.
Vitrified waste is stored in a specially designed solid storage surveillance
facility for about 30 years prior to its disposal in deep geological formation.
The first such facility has been in operation at Tarapur since 1999. l;or final
disposal of immobilised high-level radioactive wastes, a programme of siting
a repository in suitable deep geological formations is being pursued.
R&D SUPPORT TO NUCLEAR POWER
The programmes relating to nuclear power and the nuclear fuel cycle have
been built on the multidisciplinary R&D infrastructure of the Department. The
research and development relating to PHWR programme encompasses
practically all the aspects of design, manufacture, construction, commissioning,
operation and maintenance of power plants. The thrust on indigenisation of
equipment and components has led to the development of tedmologies for
operation and maintenance of power reactors. The technologies that emerged
from the research and development include automation, monitoring, inspection,
and repair systems, equipment and gadgets. Special Purpose Machines have
been designed, developed and successfully used for carrying out in-situ
precision machining and cutting operations for the upgradation!maintenance
of reactors. A number of state-of-the-art instrumentation and control systems
for reactors and heavy water plants have been developed at BARC and
IGCAR. R&D has contributed immensely to the plant life management. The
strong R&D base has led to a number of successes.
Robotics is one of the major thrust area of R&D programme both at
BARC and IGCAR. The Bilateral Master SltlVe Servo Manipulators,
manufactured under collaboration between BARC and HMT, Bangalore, have
undergone field trials. A five-degree-of-freedom Robot for deployment in
radioactive chemical laboratories, a six-degree-of-freedom Robot and a mobile
Robot have been developed at Trombay. At IGCAR, for automation of nondestructive evaluation, various devices have been developed. These include
a Mobile Scanner (MOBSCAN), a Remotely Operated Power Manipulator
(ROPMAN), and a Robot for capping and decappft1g bottles. Various tools
and equipment developed by BARC helped in impr~ving the safe operating
life of coolant channels from seven to more than nine effective full power
years.
The 2 MW in-pile loop in Dhruva Reactor installed for nuclear fuel
studies is a major stride. A remotely Operated Hydraulic Trolley and
Manipulator (ROHYI'AM) developed for handling of nuclear power plant
emergencies, successfully completed its test run. To meet the stringent quality

Scientific and Technological Developments

629

needs of the nuclear programme, several non-destructive testing techniques

Clnd equipment have been developed by BARC and IGCAR.

Electronics and Instrumentation: To meet the hi-tech instrumentation needs

of the nucelar technology, a strong R&D base was created in electronics and
instrumentation, first at TIFR and later at BARe. The knowhow and the
products developed at Trombay in the area of electronics had led to the setting
of the Electronics Corporation of India Ltd., (ECIl.) at Hyderabad in 1967.
TIll' company pioneered the electronics and computer revolution in India.
During seventies and t'ighties, Ecrl had led the television revolution in the
country by bringing out indigenous black & white and colour television sets
and also rural rebroadcast systems.
ECn I, through its software expertise, has contributed to automation in
the banking sector, control room and dial-lOO automation for the police,
message switching systems for defence and telecom sectors, management
information systems for the ports, municipal corporations and market yards
and others. The company has provided countrywide SPC telex networks,
message switching networks and maintenance systems for telephone exchanges,
and contributed to the technology solutions, in the areas of command, control,
communications, computers and information/intelligence systems. Nuclear
and thermal power plants, steel plants and process industries are equipped
with ECIt's control systems developed through in-house R&D.
NUCLEAR POWER PROGRAMME-STAGE-ll
FAST REACTOR PROGRAMME
The second stage of nuclear power generation envisages setting up of fast
breedl'r reactors (FBRs) backed by reprocessing plants and plutonium-based
fucl fabrication plants. These fast breeder systems produce more fuel than
what they consume. FBRs can increase fuel utilisation by about sixty times
of what is possible with PHWRs. Thus PBRs generate electricity and build
up fuel inventory. They match our needs as multiplication of fissile inventory
is needed to established a large power generation with thorium in the third
stage of DAE's programme.
The Indira Gandhi Centre for Atomic Research (IGeAR) of DAE, had
started breeder programme with the setting of a Fast Breeder Test Reactor
(l~BTR) at Kalpakkam in October 1985. This reactor, operating with indigenously
developed mixed uranium pititonium carbide fuel has achieved its technology
objectives.
The eleventh irradiation campaign with 38 plutonium-uranium carbide
fuel sub-assemblies was completed in December 2003. The reactor operated
at a power level of 17.4 MWt and the turbo-generator was connected to the
grid, feeding 1.8 million units of electricity. The fuel has reached a burn up
of 1.23,000 megawatt day per tonne (MWd/t), that is more than four times
the originally designed value.
Based on till' experience gained with this reactor arid with active

India 2005

6JO

cooperation of academia and industry, IGCAR has completed detailed design

and technology development of the 500 MWe Prototype Fast Breeder Reactor.
The Cabinet Committee on Economic Affairs, Government oilndia, has
accorded its administrative approval and financial sanction in September 2003,
for the construction of PFBR, after various statutory cleilfances. A new
company "Bharatiya Nabhikira Vidyut Niam. Limited (BHAVINI)" hils lwen
formed inOct~ber--"2003-'-(or' 'takjng~;P"th'~ construction activities. Site
excavation for the project jiQ, lhe pJOjul has been completf.'d and till' first pour
of concrete is expected to commence shortly.
The thrust of the R&D programme at IGCAR is oriented towilrds the
design validation of PFBR in the first instance; and subsequently, the design
optimisation for future FBRs. to reduce the cost.

Fast Reactor Fuel Fabrication: The Mark-I mixed carbide fuel core, with
high plutonium content. has been develope-cCfor-the"first'time in the world.
Fabrication of Mark-II core is progressing at Trombay. A number of PFBR
MOX fuel elements for marking experimental PFBR subassembly, for irridation
in FBTR, have been fabricated by BARe. An PFBR test subassembly was loaded
into FBTR in July 2003 and it has reached a bum lip of 25.700 MWd/t.

Fast Reactor Fuel Reprocessing : For reprocessing of FHTR fuel, the Lead
Mini Cell, has been commissioned at Kalpakkam. IT is aimed at lstablishing
the fast reactor reprocessing process flow sheet. For reproc('ssing of fu('l from
fast breeders, JGCAR is setting up the Fast Reactor Fuel Reprocessing Plant
(FRFRP). A comprehensive procedure has also been evolved at the centre for
the recovery of uranium and plutonium and separation of til(' radioactive
fission products from the spent fuel solutions.
Fast Reactor Technology Development: Under the technology development
programme, IGCAR is pursuing engineering related research and dew)opm('nt
such as, thermal hydraulic and structural mechanics studics, devdopmt'nt of
components such as control and safety rod drive mechrll1ism ilnd variolls test
facilities such as Sodium Water Reaction Test Facility, and Steam Generator
Test Facility. The Boron Plant is opeating at Kalpakkam ilchil'ving 78 per cent
Boron-l0 enrichment.
NUCLEAR

~OWER

PROGRAMME-STAGE-II

THORIUM BASED REACTORS

Thorium utilisation is thc long-term core objective of til(' Indian Nude"r
Powl'r Programme for providing t'nl'rgy security on sustainable basis. The
third stage of the Indian Nuclear power Progmmme is thus bas<!d on th(>
Thorium-Vranitlm-21~ cycle.
A small beginning has already bl't'n made by introducing thorium in a
limih.>d way, in rl'as('arch reactors and in pressurised hl'i1VY ~at('r rl'actors.
The r('search reactor KAMINl, operating lIpto a nominal power of ~OkW
for neutron radiography of variuos matl'rials, at Kalpakkam, uses Uranium-

Scil'ntific and Technological Developments

631

233 fuel which is derived from thorium. This fuel is bred, reprocessed and
fabricated indigenously.
BARC is engaged in developing 300MWe Advanced Heavy Water
Rellctor (AHWR). This R&D endeavour aims at developing expertise for
thorium utilisation and demonstrating advanced safety concepts. The design
of this reactor incorporates several advanced safety features. The engineering
development activities related to AHWR are continuing at Trombay. Mixed
Thoria-Uraia and Thoria-Plutonia are the candidate fuels for the AHWR. The
fuel pellets have been successfully fabricated by the conventional powder
metallurgy route.
A Compact High Temperature Reactor (CHTR), with 100kW thermal
power rating, being developed at BARC, will address specific application
areas, such as electricity generation in remote places, production of alternative
transportation fuel such as hydrogen, and refinement of low-grade coal and
oil deposits to recover fossil fluid fuel.
For breeding fissile Uranium-233 from Thorium, development of
Accelerator Driven Sub-Critical Systems (ADS) for nuclear reactor is the latest
addition to the Indian nuclear progrmame. This endeavour offers the promise
of shorter doubling time of fuel inventory with Thorium-Uranium-233
systems, and incineration of long lived actinides and fission products, thereby
reducing the technical complexities of geological repositories for storage of
long-life high-level radioactive wastes. Significant progress has been made in
detailed analysis of this complex system. ADS can provide a strong technology
base for large scale thorium utilisation. As a first step towards realisation of
ADS, DAE has launched development of proton injector. To carry out
experimental studies on sub-critical assemblies, a 14 MeV neutron geneator
has also been upgraded with a higher current ion source.
In the Thorium Fuel Cycle activities, separation of Uranium-2.~3 is a vital
link. For the separation of Uranium-233 from irradiated Thorium fuel on a
plant scale, a Uranium-Thoruim Separation Facility is in operation at Trombay.

SAFETY AND ENVIRONMENT

The safety operations through the entire nuclear fuel cycle, from prC1Specting
and mining of ores to management of waste, encompass aU aspects of safety
like radiological safety, industrial safety, occupational health, fire safety and
environmental protection.

In all the nuclear installations, care is also taken to -protect operating

personnel, public and the environment. An independent body, the Atomic
Energy Regulatory Board (AERB) monitors safety. The safety standards
formulated by AERB are at par with those recommended by the international
bodies such as the International Atomic Energy Agency (IAEA) Md the
International Commission on Radiological Protection (ICRP).
Safety surveillance inspections are regularly carried out and
comprehensive Emergency Preparedness and Response Plans to handle

632

India 2005

postulated emergency scenarios are in action at the DAE facilities. BARC and
the laboratories accredited by it, conduct countrywide personnel monitoring
in about 3,000 industrial, medical, research and DAE organisations which
bent'fit over 30,000 radiation workers annually. Environmental radiation
monitoring and environmental survelliance are the regular features of the
environment protection programme of DAE.
At different sites, the Environment Survey Labs (ESLs) of BARC
continuously monitor environemnt, and collect site related meteorological
data. Sophisticated weather monitoringt SODAR, systems are operational at
Kaiga, Kalpakkam, Tarapur and Trombay. IREMON,a nationwide network of
environmental radiation monitoring stations detects radiation releases.
Interfaced with global positioning system, a Compact Aerial Radiation
Monitoring System (CARMS) for estimation of large area contamination using
unmanned aerial vehicle, is also in opration at Trombay.
DAE is committed to not only preserving the environment but also to
its further enrichment. All the operating nuclear power plants and heavy
water plants now haw the ISO environment certificate. To edcuate the public
living around nuclear power plants, public awareness programmes by DAE
organisations are organisedon a regular basis.

Environment Friendly Technologies : DAE is a pioneer in conducting

comprehensive thermal ecology studies in India. The flue gas conditioning
technology developed by Heavy Water Board is now helping to reduce fly
ash emission from thermal boilers. The Nisarga-Runa technology developed
at BARC is helping to convert biodegradable solid waste into useful manure
and methane. A number of such plants have been set up at various places.
The Sewage Sludge Hygenisation plant (SHRI) at Vadodara continued to
provide dried hygeinised sludge for use by farmers.
RADIATION TECHNOLOGIES AND APPLICATIONS
The DAE's programme relating to radiation technologies and applications,
covers building and operation of research reactors for production of
radioisotopes, building of other sources of radiation such as accelerators and
lasers, and developing and deploying radiation technology applications in the
field of medicine, agriculture and industry.
Research Reactors: The research reactor programme of DAE provides R&D
support to nuclear power programme, produces radioisotopes for use in
healthcare, agriculture, industry and research and provides manpower training.
The research reactors set up by DAE so far, have been Apsara (1 MW,
Fuel: Enriched Uranium-Aluminium alloy), CIRUS (40MW, Fuel: Natural
Uranium), Zerlina (zero energy, Natural Uranium), Pumima I-III (Fuel:
Plutonium/Uranium-233), Dhruva (lOOMW, Fuel: Natural Uranium) at
Trombay (Maharashtra), and Kamini (30kW, Fuel: Uranium-233-AI alloy) and
..F~.D.r.ee~ Test Bea~ (40MW, Fuel: Uranium-plutonium carbide) at
Kalpakkam (Tamil Nadu). Of these research reactors, Zerlina was
decommissioned in 1984, and Pumima series made way for KamiN.

Scientific and Technological Developments

633

Dhruva, CIRUS and Apsara are used for producing radioisotopes besides
their use in research and development relating to nuclear technologies and
materials, applied and basic research, and training. Kamini is used mainly
for radiography of various materials, and FBTR is the test bed for the
development of fuel, blanket and structural materials for fast breeder reactor
programme.
The new ventures include the development of a Critical Facility at
Trombay for reactor physics experiments relating to AHWR and 540 MWe
PHWR, and a 20MWt Multi Purpose Research Reactor - a pool type reactor
that will use low enriched uranium fuel.
Radioisotope Production and Processing: India is a leading producer of
radioisotopes in the world. Radioisotopes are produced in the research
reactors at Trombay, atomic power reactors of NPCIL and the cyclotron of
VECC at Kolkata.
The radioisotopes produced at Trombay and at the nuclear power station
of NPCIL, are processed by BRIT. These products include radiopharmaceuticals,
labelled compounds, radiochemicals, radiobiomolecules, radiosources and a
number of devices using radioisotopes. The radioisotope based products and
services are now commercially available through BRIT.
'+-~

APPLICATIONS OF RADIO-ISOTOPES

'1' The radioisotopes produced at Trombay find wide applications in the fields
of agriculture and food, mediciJ~hcare, industry and research. These

applications have led to establishing following programmes in the country:

Nuclear Agriculture : The Nuclear Agriculture Programme of the DAE
focuses on the use of radiation technology for the development of high
yielding crop seeds, radiation processing of food items, fertilizer and pesticide
related studies, and other areas. These technologies are benefiting Indian
farmers and traders.
Crop Improvement : For decades, BARC, in collaboration with agricultural
universities, has been engaged in research and development in the field of
crop improvement. This Centre has successfully developed and released 24
high yielding crop varieties for commercial cultivation. These varieties
include !Q..&gundnut, t,.g eulse and 2 mustard varieties, and one variety each
an~:t.til;:e...
,of
........jute
. "....... .....-'.
~--

"

During the year 2003-2004, the share of Trombay groundnut varieties

in national breeder seed indent was 28 per cent and that of black gram was
40 per cent. BARC has successfully developed green manure crop - Sesbania
rostrata.. Use of this variety is highly cost-effective for small farmers.

In tissue culture, tissues are grown artificially in a special sterile culture

medium. BARC has developed a tissue culture based protocol for rapid
multiplication of some commercial cultivars of banana. This technology has
been transferred to the Maharashtra State Seeds Corporation. Using

India 2005

634

micropropagation technology, the BARC has standardised large-scale

multiplication of pineapple. Micropropagation protocol has also been
standardized in three varieties of sugarcane. The Centre has made good
progress in developing hardened plants for ~cacia Victori~ - a plant suitable
for desert area. Here several insect p'he~!!l'?~~s_ ~!!ye been synthesised and
techniques for determinahon-oTiiutri'eil'ts in soils have been developed...............'.To ensure that technologies developed by the DAE organisations are
widely deployed, DAE has set up an interface with Ministry of Agriculture.
Food Processing : The Department has set up plants for demonstration of
high and low dose applications of radiation. These are Radiation Processing
Plants set up by BRIT at Navi Mumbai for high dose radiation processing
of spices, an<L~RUSHAK (Krushi Utpad~~ ,_s._~~!'.~~bin_Kendra~ set up by
BARe at Lasalgaon- nea'f-NasniK, for 'Tow dose applications of radiation for
food preservation. This plant processes onion, pulses, rawa and turmeric.
A major thrust is being given to setting up of new radiation processing
plants for medical, food related and allied products. BRIT has also developed
an install-and operate type irradiator for radiation processing of food, which
is undergoing evaluation tests.
DAE is working with the Ministry of Health for notifying items for
radiation processing for approval of additional items and other related issues.
Nuclear Medicine and Healthcare : Radioisotopes and their formulations
find wide applications in diagnosis, therapy and healthcare. BARC and BRIT
are the main centres of this activity.
BARC has successfully developed radiation-processed hydrogel for
treating bum, wounds and leprosy; Holmium-l66-Hydroxy Apatite (HoHa)
iUld Samarium-153-Hydroxy Apatite (SmHa) radiopharmaceuticals for
treatment of arthritis, and radiolabeling of phosphonates with Luthinium-l77
for internalised radiotherapy.
At BARC, Ce!b,lIn~.l37_..bi\$~d brachytherapy sources are routinely
produced. For treatment of cancer of eye, radiation sources of extremely tiny
size - of the size of rice grain-containing 2-3 milli curie of Iodine-125, have
been produced here. This miniature source was tried for the first time for
treatment of eye cancer at Sankara Netralaya, Chennai.
To provide a low cost alternative teletherapy unit for the expensive
teletherapy unit being imported, a cobalt-60 Teletherapy Machine has been
developed at BARe. The machine is much cheaper than the imported one
of similar class. Another salient development is the digitAl medicftl imftging
system based on a Charge Coupled Device (COD). Tuberculosis is a major
health prOblem in India. For detection of the disease infection, BARC has
developed a sera-diagnostic test-kit. X-ray imaging using a three dimensional
c01'\e~beam tomography, is another important development at BARC.

-.- ----

BARC's Radiation Medicine Centre (RMC) in MglDbai is involved in

..

---'.----....-

.. ----_.,._.-.~...' ...

Scientific and Technological Developments

635

research and development in nuclear medicine and allied sciences. The centre
offers diagnostic and therapeutic sf'rvices using radioisotopes, and promotes
human resource development in nuclear medicine. It is a regional referral
Cl~ntre of the World Health Organisation, and the International Atomic Energy
-_"."',.".,' ,,',.,,'".. ". ""'"''""''''''''"'''''
(IAEA).
Radioimmunoassays (RIA) and related procedures are used for the
measurements of hormones, enzymes, certain serum proteins, and others.
RMe is a major provider of RIA services in the country, to thyroid patients.
For diagnosis of diseases such as canser, cardiac and neurological disorders,
speC'ial radiOisotopes of very short life are reqllired.~ this' need, BARC
has established a medical cyclotron at RMC. This ~ is coupled to a
positron emission tomography (PET) scanner for radioimaging.
Por the radiodiagnosis needs in the eastern part of the country, the
Regional Radiation Medicine Centre (RRMC) is operating at Kolkata. The
Centre carries out nuclear imaging and hormone estimations.
BRIT processes and formulates radioisotopes produced in the research
l"l'actors Dhruva and Apsara at Trombay and also in the power reactors of
NPCJL for applications in agriculture, healthcare, and supporting research in
lift sciences and bio sciences. BRIT also mllnufactures radilltion technology
based equipment, and provides radiation processing services to medical sector.
A number of patients are treated for thyroid disorders and thyroid cancer
using radioiodine products supplied by BRIT. In addition, radiopharmaceutical
products of phospohorus-32 and samarium-153 are used for treatment of bone
cancer and pain palliation in severe cases.
Radioimmunoassay (RIA) is a versatile in-vitro technique for the
measurement of hormones, vitamins, dnlgs and other substances present in
biological fluids. Another tecJmique known as immunoradiometric assay
(IRMA) is also used for such estimations. The newly developed T3/T4
magnetic particle based RIA kits have been introduced in the market for
thyroid hormone investigations. BRIT's regional centres at Bangalore and
Delhi process ready-to-use Technetium-99m radiopharmaceuticals for use in
hospitals of their regions.
Radiochemicals are lIsed as tracers for studying mechanisms of chemical
reactions, leakage and flow rat<.> measurements in pipelines and sediment
studies. BRIT produces a l'luml')cr of radiochemicals to facilitate such studies.

Water Management: B
cd a number' of desalination
t<.>chnologies basl'd on mlllti-st~.8!~!!_a~.~M_~!2: ~~~~ion, re~rse os~
(RO) and low temperature ('vaporahon -mE). SOlg these tcClliiologle5,
desalination plants have been developed for providing potable water in rural
Mens and on ships, and wat~r for industrial uses.
To utilise low prc.>ssurc steam and waste heat from nuclear l'('actors,
BARC is setting up a 6,300 cubic metre/day combined MSF-RO Nuclear
Desalination Demonstration Plant (NDDP) at Kalpakkam, Tamil Nadu. The
plant will utilise seawater, steROl and power from Madras Atomic Power

636

India 2005

Station (MAPS) for achieving cost-effective desalination of sea water. The 1800
cubic metre/day desalination stream of the plant, which is based on reverse
osmosis (RO) process, has been commissioned. It is now producing potable
water from seawater. The MSF based stream is under construction.
Industrial applications of Radioisotopes: The studies conducted by BARC
have immensely contributed to the detection and recharge conditions of
groundwater bodies. Some of these include evaluation of the groundwater
recharge conditions in the Deland:f\l_rJ.li~ctor of coastal Oriss"" determination
of the origin of thermal waters in the geothermal areas in MC1dhya Pradl>sh,
Uttar Pradesh and Himalayas, and establishment of the ancient course of the
legendary 'Saraswati' river in Western Rajasthan.
Major activities relating to hydrology cover evaluation of recharge
measures at coastal fresh groundwater system of Thiruvadanai, Tamil Nadu;
sustainability of deep groundwaters at Kuttanad, Kerala; detection of fluoride
contamination in ground waters of Karnataka; solution of leakage/seepage
problems of a few dams in Kerala and Rajasthan; origin of groundwater along
paleo-channels in Jaisalmer district, Western Rajasthan, and seepage and
source of salinity in the Indira Gandhi Nagar Pariyojana Command Area,
Hanumangarh, Rajasthan.
Studies conducted by BARC on sediment transport at almost all the
major ports have resulted in increasing the intervals between dpsilting
campaigns which saved huge cost of desilting operations. Studies on bed load
transport at Kolkata and Karwar ports have helped in port-expansion
programmes. A nucleonic suspended sediment concentration gauge developed
at Trombay, has proved to be a useful tool of the dredging operation in ports.
BARC's expertise in gamma scanning is being used by the major
petrochemical industries for troubleshooting in process equipment, detecting
leaks in buried pipelines, industrial process control, etc. Other noteworthy
studies carried out by BARC include detection of leakage points in 350 km
long natural gas pipeline of the Gas Authority of India, and gamma scanning
of distillation and dega::;ser columns for Mumbai and Baroda based companies.
BARC's radio tracing expertise is being used by the industrial units in
many diverse ways. Gamma scanning is an indispensable non-destructive
technique for solving online problems in industrial process columns. Using
this technique, BARC has successfully conducted investigations on a
depropaniser column of the Reliance Industries Ltd., Hazira, Gujarat, and
carried out shielding integrity tests for different DAB facilities. Gamma
scanning technology developed at Trombay, is used for troubleshooting and
process optimisation in a number of process industries in the country. This
has resulted in minimising production losses, which could be of the order
of several crore of rupees per day for such big units.
Beam Technologies: DAE is engaged in the development of radiation
technologies and services. Laser systems and Electron Beam Accelerators are
the areas where India is one of the front runners. The DAE's research
organisations viz., Centre for Advanced Technology (CAT) in Indore, Madhya

Scientific and Technological Developments

637

Pradesh and Bhabha Atomic Research Centre (BARC) in Mumbai, are engaged
in the development of applications in the areas of Laser systems, Electron
Beam processes and devices, and Plasma devices.
High Power Pulsed Electron Accelerators: High power pulsed electron
accelerators are used for producing Flash X Rays (FXR) and High Power
Microwaves (HPM). These accelerators have very many applications in the
industry, nuclear power sector and the strategic areas. BARC has been
developing two types of accelerator in this category, namely, single and
repetitive shot types.
High Power Electron Beam Units for Thermal Processing: BARC has
developed a number of High Power Electron Beam (EB) machines for
evaporation, melting and welding of reactive and refractory metals and their
compounds. Coating units have been developed for production of hard and
corrosion resistant coatings as well as optical coatings on various surfaces.
Laser Systems and Applications: BARC has developed many laser based
devices which include a laser based projectile speed-measuring instrument
commissioned at the Defence Metallurgical Research Laboratory (DMRL),
Hyderabad, and Surface Profilometer for measuring roughness. For
measurement of the equation-of-state-of-materials, various shock diagnostic
systems are being set up at Trombay.
Plasma Devices and Systems: BARC has developed a large number of
atmospheric plasma torches and processing systems. The high power plasma
torches (40 - 300 kW) operating in transferred and nontransferred arc mode
have been used for cutting, melting, spraying and other high enthalpy
applications. Few notable examples are the joint work with Department of
Space culminating in establishment of a plasma jet assisted thermal protection
materials testing system at Thiuvananthapuram, underwater plasma cutting
systems and plasma assisted aerosol generator for BARe. On surface
engineering, Plasma spray systems have been extensively used to develop
special purpose thermal barrier, chemical barrier and bio-ceramic coatings that
have drastically improved system performance. Low pressure surface coatings
of 1-2 micron have also been developed using microwave plasma. ,
Fusion and Other Plasma Technologies : Th~1.n!tj~lasma Research...
(IPR)~b~d olm-.A4.ityaThkamak for the studies on h!s!'! temperature
magneticaycollfined plasmas. Studies conducted on th~have had
important implications on the nature of particle transport.
To address physics and technology issues related to advanced Tokamak
configurations, SST-I, one of the world's first Superconducting Steady State
Tokamaks with elongated diverter plasmas and 1,000 second operation
~ability, is being set up at IPR.
'/ BASIC RESEARCH

The research centres of DAE are engaged in basic research in the areas relevant
to the programmes they are pursuing. In addition, the autonomous resea~
institutes, supported by grant-in-air by DAE, are the centres of excellence U\

India 2005

638

basic research that ranges from mathematics to computers, physics to

astronomy, and biology to cancers.

Mathematics and Computation: TIFR pursues academic programmes in

algebra, algebraic geometry, Lie group, egodic theory, number theory,
combinatories and topology at Mumbai and applications of mathematics at
Bangalore; the Harish Chandra Research Institute, Allahabad, carries out
research in advanced fields of mathematics and theoretical physics including
astrophysics, high-energy physics, condensed matter physics and mathematical
physics, and the Institute of Mathematical Sciences at Chennai, Tamil Nadu
is engaged in the research in the fields of Theoretical Physics, Mathematics
and Computer Science.
In its effort to develop teraflop parallel super-computers with more than
1,000 processors, BARC achieved a very significant milestone by commissioning
a supercomputer with 128 processors, giving a computational speed of :160
Gigaflops. More than 15 different models of Anupam series of supercomputers
have been developed since 1991. So far, 37 supercomputers have been
commissioned at leading R&D and educational institutes in the country.

Physics: The Institute of Physics, Bhubaneswar conducts research in condensed

matter and high energy, nuclear, atomic and accelerator based physics and
other related subjects. One of the main experimental facilities at the Institute
is the Ion Beam Accelerator. The research facilities set up ht'l'c arc used by
the researchers from within the Institute as well as from other research
institutes and universities in India.
At the Harish-Chandra Research Institute, the research in physics covers
the work on understanding the ground state of open string theories, which
possess tachyons. Supergravity solutions with a positive cosmological constant
are the other major areas of studies.
oj'

Seismic Studies: BARC monitors seismic activities at Garibidanur in Karnataka,

Delhi and Trombay seismic stations. In addition to routine seismic analysis,
research is also carried out in surface wave studies, development of analysis
software and in other front line areas.
Superconductivity: The field of superconductivity holds big promise for the
future. BARC has completed a test facility to characterise samples of
superconducting cables at liquid helium temperature. IGCAR is also working
towards the development of SQUID based systems for material technology
including non-destructive testing.
Astronomy: In the field of radioastronomy, a Radiotelescop' Array, set up
in the Nilgiri Hills near Ootacamund, Tamil Nadu, has been in use for
decades. It is used in the studies of distant extragalactic radio-sources and
interplanetary objects.
At Narayangaon, near Pune, Maharashtra, the Giant Metre Wave Radio10 opefclftOo,
fathoming the universe. Set up by TIFR, the telescope, is a frontline research
facility in radioastronomy and is world's most powerful radiotelescope in its
Tel~~~.op~ ,(GMRT) with 30 gigantic parabolic dtS11es, has been

Scientific and Technological Developments

639

range. GMRT is now a full fledged international observational facility for

radioastronomy below 1.4 GHz. A number of national and international users
carried out research in astronomy, on this telescope.
Another internati
nomy-research facility GRACE is being
set up by BARC a Mow'lt bu Rajasthan. GRACE comprises four
radiotelescopes, namely, e ACTIC, MACE, BEST and MYSTIQUE. TACTIC
(Tera-electron-Volt Atmospheric Cerenkov Tdescope with Imaging Camera),
the first-ever Indian imaging gamma-ray telescope, has been commissioned
at MT. Abu, Rajasthan. It is used for high-senSitivity observations of cosmic
gamma ray sources above 1 TeV energy.
Chemistry: BARC provides state-of-the-art analytical and chemistry related
services to nuclear power plants, research reactors and heavy water plants,
and carries out research in the frontier areas of chemistry.
It also offers specialised analytical chemistry services to various user
organisations within DAE and outside. The type of samples analysed cover
a wide spectrum of materials such as metals and alloys, organic and
organometallic compounds, inorganic compounds, rocks and minerals, nuclear
and strategic materials, high purity materials, environmental and biological
materials and others.

BARC's Centre for Compositional Characterisation of Materials (CCCM)

in Hydcrabad provides high quality analytical services to various departmental,
governmental and private institutions.
Biology: At Trombay, the research in bio-sciences is directed towards evolving
high yielding food crops, delaying or preventing post-harvest losses by
increasing shelf-life, developing modalities for low dose cancer radiotherapy
and employing molecular and isotope techniques in basic biology for disei\se
diagnosis and finger printing of individuals and population.

The National Centre for Biolo' Sciences of TIFR at Ban&al~J:~J2=..

working 01'\ ne~ilL!h~ fron me .~~~!.,~Lm.Qde,m.bioloS<- .
The Saha Institute of Nuclear Physics, I<olkata is engaged in research
elUcidating the structure function correlation of biomolecules at the cellular
and molecular level.
RESEARCH EDUCATION LINKAGE
DAE supports synergistic interaction amongst the national laboratories and
the University systems through a number of mechanism such as utilisation
of DAE's research facilities through Inter-University Consortium, funding of
extra-mural research, grant-in-l\id to institutes of national eminence, and
others.
UGC-DAE Consortium for Scientific Research: DAE and the University
Grants Commission (UGC) had signed a MoU (memorandum of understanding)
in 1989 for setting up I~ter-~niVersi!Y Consortium of DAE Facilities (IUCknown as UGC-DAE Consortium for
DAEF) at Indore. The Consor

um;now

640

India 2005

Scientific Research, functions under the control of UGc. The scope of

cooperation between UGC and DAE has been broadened to include all
programmes pursued by DAE in the aren of physical, chemical, life and
engineering sciences.
Funding of Extra-Mural Research: DAE encourages and promotes scientific
resenrch in universities, institutes and laboratories in the aren of relevance
to the Department. This is done through the Board of Research in Nuclear
Sciences (BRNS) and the National Board for Higher Mathematics (NBHM)
both nt Mumbai.
BRNS is an advisory body of the DAE to recommend financinl assistance
to universities, aCndemic institutions and national lnboratories. It supports
high quality R&D projects and lays emphnsis on collaborntive progrnmmes
nmongst DAE organisntions and the organisations outside the Department,
nnd provides financial nssistance to orgnnise symposin/conferences/workshops
on topics of relevance to DAE programmes.
BRNS awards Dr. KS. Krishnan Research Associateships to attract highly
talented young scientists and technologists. Its DAE-BRNS Senior Scientists
Scheme aims at utilising the expertise of active retired scientists/engineers
who were involved in high qunlity research in the units of DAE or any
National Lnboratory or Universities/Institute, and who after retirement, are
keen to cnrry out R&D in the field of their choice and of interest to DAE.
It offers Homi Bhabha Chair to honour distinguished scientists. BRNS also
encourages visiting scientist programmes for promoting active interaction with
senior level scientists.
BRNS has also introduced "DAE Science Research Council (DAE-SRC)
Award" that aims to setup frontier area research units around individuals.
DAE, through the National Board for Higher Mathematics (NBHM) is
engaged in promoting excellence in higher mathematics, education and
research in the country. In collaboration with the International Mathematical
Union, NBHM has also initiated schemes for making mathematical literature
accessible through electronic-communication.
Grant-in-Aid to institutions and cancer hospitals: DAE provides grant-inaid to seven institutes of national eminence engaged in basic and applied
research ranging from natural sciences, mathematics and astronomy to fusion
research. The Department also supports a society which manages education
for the children of DAE employees.
DAE also provides funds to cancer hospitals in the country to support
small projects and purchase of radiation related equipment for cancer
treatment. DAE has also initiated out-reach efforts in cancer care programme
that include, creation of better network between cancer institutions in the
country focussing on research and development, training and preparation of
protocols for treatment as well as incentive for indigenlsation of radiation
related equipment for cancer treatment.

Scientific and Technological Developments

641

International Research Collaboration: Under a cooperation agreement,

signed in March 1996, DAE, through its units, is required to develop and
supply some of the sophisticated components of Large Hadron Collider
(LHC), a particle accelerator under construction by European Centre for
Nuclear Research (CERN) at Geneva, Switzerland.
Under the collaboration, the first shipment of 190 precision magnet
positioning system jacks and the 1000th superconducting correction magnet
made by CAT for the LHC was also sent to CERN in 2003. Contributions
of DAE and other organisations in India to the activities of CERN have earned
the "Observer" status for India at CERN.
BARe's participation in the STAR experiment at the Relativistic Heavy
Ion Collider (RHIC) in the Brookhaven National Laboratory of United States,
the Large Hadron Collider and its experiments CMS and ALlCE under
construction at CERN, participation on Indian scientists in several synchrotron
and other facilities in several laboratories abroad has earned considerable
respect for Indian capabilities.
BARC participated in an IAEA sponsored international effort for
searching of Sr-90 "orphan sources" at Georgia. Aerial Gamma Spectrometry
System (AGSS), developed by BARC, was deployed in the search op(>rations.
The technical superiority of this system in detecting the orphan sources and
the expertise of BARC staff in locating the same and training of the staff of
Nuclear Radiation and Safety Services (NRSS), Ministry of Environment,
Georgia in the operation of the AGSS system, were highly appreciated by both
the Government of Georgia and IAEA
Intellectual Property Protection: To protect the intellectual property created
during the process of research and development in the R&D organisations
of DAE, an Intellectual Property Rights Cell of DAE works as a nodal agency
for all the lPR related matters including filing of patents within India and
abroad. So far, DAE has filed 137 patent applications out of which 50 have
been granted and of which 33 have been in force.
International Relations: A designated member of the Board of Governors
of the International Atomic Energy Agency (IAEA) since its inception, India
has been taking active part in policy management and programme of the
agency. India officers training facilities, fellowships, scientific visits, etc., to
foreign scientists and provides the serviees of its scientists for expert
assignments to other countries both through lABA and to coun~ries with which
we have entered into bilateral agreements for cooperation in the field of
peaceful uses of atomic energy.

INDIAN SPACE PROGRAMME

In the mere half a century of its existence as an independent country, India has
an impressive array of achievements in the scientific and technological fields.
Nowhere is this more apparent than in the arena of spRee. Despite being a
developing economy with its attendant problems, India has effectively

642

India 2005

developed space technology, applied it successfully for its rapid development

and today is offering a variety of spi\ce services globi\Uy.
During the formative decade of 1960s, space research WilS conducted by
India mainly with the help of sounding rockets. The Indian Space Research
Organisation (ISRO) was formed in 1969. Space research activities were
provided an additional fillip with the formation of the Space Commission and
the Ot'piutment of Space by the Government of India in 1972. And, ISRO was
brought under the Department of Space.
In the history of tlw Indian programme, 70s were the era of
experimentation during which experimental satellite programmes like
Alyabh_!tc1, ~ilra, Roi1ini and ~pcle were conducted. The success of those
programmes led to the era of opemtionalisation in 80s during which
operational satellite programmes like INSAT and IRS came into being. Tod'!,Y,
INSAT and IRS are the major programmes o..L!2.!3S? _t .I,d 'Sf ,1\1 ,~ c\~y.,6.
For launching its spacecraft indigenously, Indiil is having a robust launch
vehicle programme which has matuH'd to the state of offering launch services
to the outside world.
Fruitful cooperation with other space faring nations, international bodies
and the developing world is one of the main characteristics of Indian space
programme. Antrix, the commercial arm of ISRO is marketing India's space
services globally.
The significant milestones of the Indian Space Progrr1mme during tlw
year 2003-2004 arc the successful launches of GSLV and PSLV. On 8 May 2003,
the second launch of Geosynch ..onous Satellite Launch Vehicle (GSLV) from
Satish Dhawan Space Centre (SDSC) SHAR, Sriharikota sllccessfully placed
the 1,825 kg GSAT-2 in a Geosynchronous Transfer Orbit (;TO). India is
among the six nations of the world to possess the capability to launch si\tellitcs
into GTO. The eighth launch of Polar Satellite Launch Vehicle (PSLV) from
SDSC SHAR on 17 October 2003 successfully placed the 1,360 kg RESOURCES
AT -1 (IRS-P6) in its intended polar Sun Synchronous Orbit (550) of 820 km
height. During 2003-2004, INSAT -3A and INSAT -3E, the two satellites of
INSA T-3 series were successfully launched and operationalised.
INSAT SYSTEM
The Indian Nationi\l Satellite (INSA T) system is one of the largest domestic
communication satellite systems in the Asia-Pacific region, In the 1980s, it
initiated a major revolution in India's communications sector and sustained
the same later. The satellites of INSAT system which are in service today are
INSAT-2E, INSAT-3A, INSAT-3B, INSAT-3C, INSAT-3E, l<ALPANA-1 and
GSAT-2. The system provides a total of about 130 transponders in the C,
Extended C and Ku-bands. Being a multipurpose satellite system, INSA T
provides services to telecommunications, television broadcasting, weather
forecasting, disaster warning and search and rescue fields.
INSAT system serves many important sectors of the Indian economy.

Scientific and Technological Developments

643

Foremost amongst them is Telecommunications sector wherein INSAT is

providing Mobile Satellite Service besides providing VSAT services. Today,
about 37,000 VSATs are in operation.
.
Similarly, Television broadcasting and redistribution have been immensely
benefited by INSA T. About 900 :niltion people in India have access to TV
through nearly 1,400 terrestrral--;'ebroadcast transmitters. In addition to this,
social development through exclusive channels for training and developmental
education has become a reality today through INSAT. And, a tele-medicine
network to take super speciality medical services to the remote and rural
population hels become possible.
INSAT system has also provided meteorological services through Very
High Resolutioll Radiometer and CCD cameras on some of its spacecraft. This
apMt, cyclone monitoring through meteorological imaging and issue of
wilrnings on impending cyclones through disaster warning receivers hilS been
opercltionalised. For this, 250 receivers hilve been instil lIed along the east and
west coast of India.
INDIAN REMOTE SENSING SATELLITE SYSTEM
Today. India hatt the largest ,constelliltion of Remote SenSing Satellites which
providing services both at the nahonal and global levels. From the Indian
Remote Sensing Satellites (IRS). data is available in a variety of spatial
r(,solutions starting from 360 meters and highest resolution being 5.8 meters.
Besides. the state of the art cameras of IRS spacecraft take the pictures of the
EMth in several spectral bands. In future, ISRO intends to launch IRS
spilcccraft with better spatial resolution and capable of imaging in more
spectral bands. RESOURCES AT-l was launched by PSLV on 17 October 2003.
It carries a unique combination of three cameras with different spatial
resolutions. The satellites of IRS system which are in service today Clre IRS-Ie.
IRS-ID, IRS-P3. OCEANSAT-I, Technology Experimental Satellite (TES) and
RESOURCESAT -1. The upcoming Remote Sensing Sa tellites ilre the Cu'tosa t1, Olrtosat-2 and RISAT (Radar Imaging Satellite).

arc

Imagery sent by IRS spacecraft is being put to a variety of uses in India

with agricultural crop acreilge and yield estimation being one of th(.' most
important uses. Besides. such imagery is being used for ground. and surface
water harvesting, monitoring of reservoirs and irrigation command areas to
optimise water use. Forest survey ilnd management and wastelilnd. identification
and recovery are other allied uses in this regard. This apart, IRS imagery has
been used for mineral prospecting and forecasting of potential fishing zones.

LAUNCH VBHlCLES
After successfully testing the first indigenous launch vehicle SL V-:~ in 1980,
ISRO built the next generation Augmented Satellite h'1unch Vehicle (ASLV).
OUf Launch Vehicle programme had it giant leap with the successful launch
of J.RS..P2 spacecraft onboard the Polar Satellite Launch Vehicle (PSIS) in
October 1994. On 18 April 2001, India successfully launched its G.~osyn<:hronous
Satellite Launch Vehicle (CSLV).

644

India 2005

POLAR SATELLITE LAUNCH VEHICLE (PSLV)

The four stage PSLV is capable of launching up to 1,400 kg satellites into an
800 km polar orbit. It has provision to launch payloads from 100 kg
microsatellites or mini or small satellites in different combinations. It can also
launch one ton class payloads into Geosynchronous Transfer Orbit (GTO). So
far, it has performed eight missions with seven consecutive successes.
GEOSYNCHRONOUS SATELLITE LAUNCH VEHICLE (GSLV)
GSL V was successful on its very first test flight. After its successful second
flight on 8 May 2003, it was commissioned. GSLV is capable of launching 2,000
kg class satellites into Geosynchronous Transfer Orbit (GTO). The indigenous
cryogenic engine to be used in the thrid stage of GSLV was successfully tested
during the year for a duration of 1,000 seconds thus proving its endurance for
the actual flight conditions, GSLV-Mk III, a new version of GSLV and capable
of launching spacecraft weighing up to four tonnes to GTO is under
development.
LAUNCH INFRASTRUCTURE
An elaborate launch infrastructure exists at the Satish Dhawan Space Centre
(SDSC) SHAR, Sriharikota Island on the East Coast of India which is about 100
km from Chennai. Full fledged facilities for satellite integration, assembly and
launch exist here. Sriharikota also houses a telemetry, tracking and Command
network for tracking satellites and monitoring them.
SPACE SCIENCE
India has a vibrant space science programme covering astronomy, astrophysics,
planetary and space science, earth science and theoretical physics. As part of
that programme, ground facilities like astronomical observatories, Giant Meter
Wave Telescope, Mesosphere-Stratosphere-Troposphere Radar facility, etc.,
have been built. And, Balloons, sounding rockets and satellite platforms are'
used for flying scientific instruments. India has participated in many
international scientific campaigns like MONEX, IGBP, STEP, INOOEX, etc.
ASTROSA T, a multispectral high-energy astronomical space observation
satellite is to be launched by 2007-08. The Government of India has approved
Chandrayaan-l, India's first scientific mission to Moon. The PSLV will launch
Chandrayaan-1 spacecraft by 2008.
SPACE-INDUSTRY CO-OPERATION
One of the important features of the Indian Space Programme since its
inception has been the cooperative approach with the Indian industries. The
Department of Space (DOS) has established linkages with more than SOO
industries in small, medium and large scale sectors, either through procurement
contracts, know-how transfers or provision of technical consultancy. Because
of its association with the space programme, the space industry is now capable
of meeting the challenges, in tenns of adopting advanced technologies or
handling complex manufacturing jobs.

Scientific and Technological Developments

645

INTERFACE WITH ACADEMIC AND R AND D INSTITUTIONS

ISRO has an active programme to interact with academic and research
institutions all over the country for the benefit of the space programme. In this
regard, the Sponsored Research Programme (RESPOND) is an important
component of DOS. Under RESPOND, DOS supports research and educational
activities at universities, individual colleges, and at the Indian Institutes of
Technology as well as other research institutions. During the year 2003-04, 39
new projects were initiated at 28 academic institutions comprising 14
universities, 3 colleges and 10 research institutions. In addition to research
projects, DOS supported 56 conferences, symposiums and publication activities
in the areas of importance to ISRO, besides providing support to ISROinstitutional chairs at reputed institutions.
INTERNATIONAL COOPERAnON
From the days of its inception, ISRO has had a very good record of
international cooperation. It has a Memorandum of Understanding with 25
countries/space agencies. A UN sponsored Centre for Space Science and
Technology Education (CSSTE) set up in India has trained more than 400
personnel of the Asia-Pacific region. In addition, ISRO provides training in
space applications to personnel of developing countries through its Sharing of
Experience in Space (SHARES) programme.
ISRO has launched scientific payloads of other space agencies like
Modular Opto-electronic Scanner of DLR, Germany which was flown on IRC:;P3 spacecraft and the data is being shared by scientists of DLR, India and t~ e
US. It has a cooperative agreement with NASA/NOAA for the reception of
meteorological data from INSAT spacecraft by those agencies.

Megha- Tropiques is a joint satellite mission of ISRO and French Spa~e

Agency CNES for atmospheric studies. The satellite will be built by CNES and
ISRO will contributing to the development of the payload and launching tbe
satellite.
India has also set up three local User Terminals and Mission Control
Centre for the international COSPAS/SARSAT programme for providing
distress alert and position location service. Search and Rescue Transponders
are included in some of the INSA T spacecraft.
India is a signatory to th~ International Charter on Disaster Management
and is proViding remote sensing data for the same.

ANTRlX
ANTRIX, the commercial arm of ISRO, is a single window agency for
marketing Indwvaace capabili!~~: It is playing a key role in the world~ide
avci1nrbmty of 'IRS ata ffirougn Space Imaging, USA. ANTRIX also prOVides
IRS Specific data processing equipment.

It offers launch services using India's PSLV. Two German, one Korean
and one Belgian satellite have already been successfully launched by PSLV.

646

India 2005

Through ANTRIX, Telemetry, Tracking and Command support from the

Indian ground stations arc offered. Similarly, lease of transponders from
INSA T system is possible. In this regard, 11 transponders have already been
leased to INTELSAT. Customers for the spacecraft components offered by
ANTRIX include world's leading spacecraft manufacturers.
Thus, in addition to developing spacecrilft ilnd launch vehicle technologies
indigenously, Indiil has also been successful in the application of satellite
technology to benefit its national economy. At the same time, India has also
been sharing space-based information with the international community and
providing commercial space services globally.

ELECTRONICS AND IT
The software and services industry continues to playa dominant role in the
overall growth of the Indian industry. The total value of software and services
export is estimated at Rs 55,510 crore (US$ 12.5 billion) in 2003-04, an increase
of 20.4 per cent in rupee terms and 30 per cent in dollar terms over the
previous year.
The Indian IT Enabled Services - Business Process Outsourcing (ITESBPO) sector has emerged as a key driver of growth for the Indian software and
services industry. The ITES-BPO industry is estimated to have grown by about
54 per cent with export revenue of $ 3.6 billion during 2003-04. The ITES-BPO
industry continues its upward growth spiral on service lin~ke customer
care,
HR, administration
and billing _._.....
and payment
_:;~~
-_.-- fina1:t.e, ,.._, .... -......
"'-'_,-,-'

_-_.,_.

India has become one of the most preferred destinations for sourcing
software and IT enabled services. In compilTison to other low cost locations,
India ranks high in several critical parameters, such as, level of government
support, quality of the labour pool, English language skills, cost advantage,
project management skills, entrepreneurial culture, strong customer
relationships and exposure to new technologies. India's strength has been
enhanced by the industry's strong focus on quality software and processes.
Indian IT software and services industry is expected b? account for about
2.64 per cent of India's GOP and 21.3 per cent of exports during 2003-04 and
is projected to grow to 7 per cent of India's GOP and 35 per cent of exports
by 2008. An export potential of $57-65 billion for the software and services
sector is realisable by 2008. This would amount to a 6 per cent share of the
global market. The ITES-BPO sector export is likely to reach US $ 21-24 billion
by 2008.
The number of professionals employed in India by IT and ITES sectors is
estimated at 813,500 as of March 2004. This work force comprises 260,000
professionals in the IT software and services export industry; nearly 245,500 in
ITES-BPO sector; 28,000 in the domestic software market and over 280,000 in
user organisations.

PRODUCTION PROFILE
The production of the Indian electronics and IT industry is estimated at

Scientific and Technological Developments

647

Rs 1,14,650 crore during 2003-04, as compared to Rs 97,000 crore during the

year 2002-03, a growth of 18.2 per cent. The software and services industry
continued to show a robust growth and the total value of software and
services export is estimated at Rs 55,510 crore (U5$ 12.5 billion) in 2003-04, an
increase of 20.4 per cent in Rupee terms and 30 per cent in dollar terms.
Consumer electronics sector is estimated to achieve a production level of
Rs 15,200 crore curing 2003-04, as compared to Rs 13,800 crore in the year
2002-03, thus achieving a growth rate of 10 per cent. The fast growing
segments during the year were colour TV, DVD players, homl! theatre
systems. The colour TV production has shot up to 8.9 million wlits during the
year 2003-04. VCD/MP3 player sales have witnessed impressive growth and
have been of the order of 7 million units.
Indian colour TV picture tube manufacturers have made huge investments
for manufacture of pure flat picture tubes. The production of CPTs has

increased to over 87 lakh during the year 2003.

The sflle of personal computers is likely to touch 30 lakh numbers during
the year 2003-04. The production in computer, communication and
instrumentation industry is not matching growth in dt'mand. The
communication find stmtegic electronics sector is showing a growth of about
10 per cent. Prices of colour TV and computers have also come down in
consonance with the worldwide trend.

MAJOR INITIATIVES IN INFORMATION TECHNOLOGY SECTOR

E-Governnance : One of the areas in which Information and Communication
Technologies (lCT) is having a profound impact is the way Gov"ernmt'nts
function and the manner in which government services are made available to
citizens. This has hAd a revolutionary impact on citizen's lives through the
computt'risAtion of the Railways Reservation System at the nationallevc1, and
through projects like e-Scvil and Bhoomi at the State level. Considering the
potential benefits which can accrue to the drizens of this country through the
use of ICT, the government has approved the National e-Governance Action
Plan. The plan envisages formulation of certain core policies and strategies to
ensure a coordinated approach, creation of Core Infrastructure required for
the long-term growth of e-Government services and implementation of a
number of identified Mission Mode Projects to bring about a citi7.en-centric
and business-centric environment within the government. The initiative also
envisages provision of necessary guidance and assistance to the State
Governments for implementing in parallel, a set of projects of national
priority, as well as a set of integrated services projects, which would help
bring these various initiatives onto a common platform for delivery of services
in an integrated manner to citizens and businesses. The Government has
accordingly identified 22 Mission Mode Projects which would be taken up on
a pr~ority basis by the concerned Line Ministries/Departments and the State
Governments.

COllUl'lunity Infonnation Centres: Based on the experience of the Community

Information Centres (CICs) in North-Eastern States, it has been decided to set

648

India 2005

up 139 CICs in all the Block Headquarters of Jammu and Kashmir at an outlay
of over Rs 40 crore. In the first phase of the scheme, 60 CICs will be made
operational by October 2004.
Rural Connectivity: An integrated approach for universal rural connectivity
is being worked out by dovetailing the initiatives of Community Information
Centres, Public Tele-information Centres (PTICs) of the Universal Service
Obligation Fund (USO) and the scheme for Providing Urban Amenities in
Rural Areas (PURA).
Indian Computer Emergency Response Team: Internet has emerged as the
preferred medium of communication. This open system of sharing information
needs a secure environment that prevents prowlers from taking away or
compromising digital assets. It is essential to raise the confidence level of our
own public so that they can use the network with absolute faith for commercc,
communication, entertainment, software development and governnance and
csnure the safety of the government network. The Indian Computer Emergency
Response Team (CERT) has been set up at Delhi with a mirror location at
8angalore to ensure that India's IT assets are appropriately and adequately
protected.
High performance Computing : C-DAC has established a Terascale
Supercomputing Facility (CTSF) at its Knowlege Park at Bangalore using an
indigenously developed high performance interconnect switch and system
software tools to extract maximum performance from the supercomputing
duster of nodes. The applications, which run on this system, are in the areas
of Weather Forecasting, Seismic Data Processing, Evolutionary Computing,
Structural Mechanics, Computational Fluid Dynamics and Bioinformatics.
This system, PARAM Padma, figures at serial number 171 in the list of
World's Top 500 supercomputers, announced by the International Consortium
of Top 500 Supercomputers at the International Supercomputing Conference
(ISC-2003) held at Heidelburg, Germany.
Braille Transcription : A computerized Braille transcription an.d embossing
system has been developed. This system operates in English and all major
Indian languages and enables blind persons to read the files from a computer,
using an indigenously developed Tactile Braille Reader.
Task Force on Human Resource Development in IT : A Task Force on
human resource development in IT was constituted in August 2003 to prepare
a long-term strategy for significantly increasing the number of trained IT
professionals in the country. The Task Force finalised its key findings and
recommendations and submitted its report to the Department in December
2003.
On-line Election Results, Budget and Examination Results : On-line
transmission of Election results for the States are being facilitated through
NICNET. The election feedback from the NIC was used by Doordarshan and
other channels for providing live transmission of election results to the
viewers. On-line transmission of the Union Railway Budget and the Genral
Budget Was facilitated through NICNET all over the country and was widely

Scientific and Technological Developments

649

used by the media, industry and other agencies. NIC also published the results
of various examinations on its web server (http://results.nic.in). The network
also provided the facility of downloading admit cards for certain examinations
directly from the net.

Appendix I
ELECTRONICS PRODUCTION
(Rs in crore)
Item

1998-99

1999-2000

2000-01

2001-02

1 Consumer EIL'Ctronics

9,200

11,200

11,950

12,700

13,8(){)

15,200

2 Industrial Electronics

3,300

3,750

4,000

4,500

5,550

6,100

3. Computers

2,300

2,500

3.4UO

3,550

4,250

6,800

4,400

4,{)()()

4,500

4.500

4,800

5,351l

5. Strategic Electronics

1,300

1,450

1.750

1.800

2,500

2,750

6. Components

4,750

5,200

5,500

5,700

6.600

7,600

Sub-Total

25,250

28,100

31,100

32,750

37,500

43,800

10,940

17,150

28,350

36,500

46,100

55,500

4,950

7,200

9.400

10,874

13,400

15,350

41,140

52,450

68,850

80,124

97,000 114,650

2002-03 2003-04'

4. Communications &
Broad Eqpt.

7. Software for Exports

8. Domestic Software

Total
Estimated

Appendix II
ELECTRONICS EXPORTS
(Rs in crore)

Item
1. Electronics Hardware

2. Computer Software

Total

1998QQ

19992000

2000-01

2001"()2

2002-03 2003..Q4

1.800

1,400

4,788

5,800

5,600

6,000

10,940

17,150

28,350

36,500

46,100

55,SOU

12,740

18.550

33,138

42,300

51,700

61,500

E.'1timated

/"'6C~AN

DEVELOPMENT

India with a coastline of over 7,500 km length and about 2.02 sq. km area
within the Exclusive Economic Zone offers immense scope for exploration and

650

India 2005

exploitation of the living and non-living resources. The vastness, complexity

and uncertainty of the ocean environment calls for a coordiMted, centralised
and highly sophisticated development response. Keeping this in view, under
the special initiative taken by the then Prime Minister, Late Mrs. Indira
Gandhi, Department of Ocean Development (DOD) was created in July 1981
as a nodal and independent department under the direct charge of PM for
organising, coordinating and promoting ocean development activities.
Immediately after the formation of the Departml\nt, Ocean Policy Statement
was prepafl~d and brought out in 1982. The sCllient features of the Policy
StCltcment and thrust areas include: Exploratory survey, assessment and
sustainable utilisation/harnessing of the ocean resources including living,
non-living and renewable sources of ocean energy; Technological advnnces
geilred to the utilisation and preservation of the mruine environment;
Development of technology relating to inslrumenttltion, diving systems,
position fixing, materials development, oceanic data collecting devices,
submersibles, etc; Developmental activities related to integrated coastal and
marine area management, coastal community development, etc., with direct
application to the welfare of the SOCiety; Establishment of an ocean related
information system using indigenous and foreign sources; International cooperation in Ocean Science and Technology; Development of technologies
relating to seabed mining, extractive metallurgy and conducting Environmental
Impilct Assessment studies; Contribution townrds front ranking research in
polar sciE.'nces; and Basic and applied research in Ocean Science and
Technology, Human Resource Management, creation of Centres of Excellence
in academic institutions and public awareness on the potential and lIses of
ocean.
The underlying philosophy of the programmes and activities undertaken
by DOD is one of sustainable and environment friendly exploration and
utilisation of marine living and non-living resources for the socio-economic
benefit of the country. This is addressed through a wide range of ~ubjects
and activities, viz., Polymetallic Nodules Programme, Integrated Coastal and
Marine Area Management, Ocean Observation and Information Services,
Assessment of the Marine Living Resources, etc. Some of the major
accomplishments of the Department include :
Generation and dissemination of Integrated Potential Fishing Zone (PFZ)
advisories to the fishermen communities in all the coastal states and islands;
Deployment of Data Buoys and Argo floats along the coastal and offshore
waters of India for collection and dissemination and oceanographic data on
real time basis; Indigenous development of Data Buoys; Leadership in
implementing the Indian Ocean Component of the Global Ocean Observing
Systems; Development and testing of Remotely Operable Vehicle at 200 m
water depth; Marine Archaeological finds in the Gulf of Cambay by the
scientists of National Institute of Ocean Technology; Establishment of Ocean
Science and Technology Cells at Universities covering 8 different priority areas
for human resource development and capacity building; Development and
successful testing of the Integrated Shallow Bed Mining System at a depth

Scientific and Technological Developments

651

of 410 m off Chennai coast as a prelude to development of deep-sea mining

system for operation at 6,000 m water depth; Establishment of National Centre
for Antarctic and Ocean Research (NCAOR) in Goa and Indian National
Centre for Ocean Information Services (INCOIS), Hyderabad, as autonomous
societies under DOD, for carrying out and implementing programmes in the
re<llm of Polar Science and Ocean Observation and Information Services,
respectively; Completion and commissioning of the new campus in a record
time of 18 months for National Institute of Ocean Technology at Chennai and
NCAOR in Goa; Launching of the Indian Antarctic Expedition from Cape
Town in South Africa as the base, resulting in substantial saving in time and
cost, besides pursuing closer cooperation between India and South Africa and
other countries using South Africa as base, in the area of Polar science;
Implement<ltion of multi-disCiplinary and multi-institutional programmes for
Assessment of Marine Living Resources beyond 70 m depth in the Indian EEZ
through the Centre for Marine Living Resources and Ecology; Establishment
of a 500 kg/day semi-continuous demonstration plant for extraction of metal
from polymetallic nodules; Implementation of an Integrated Coastal and
Marine Area Management (ICMAM) programme in Capacity Building by
establishing an ICMAM Project Directorate, at Chennai; Design and fabrication
of a floating 1 MW Ocean Thermal Energy Conversion plant by National
Institute of Ocean Technology (NIOT); Design, development and installation
of indigenously built Acoustic Tide Gauges in different coastal regions of India
and Vietnam; Production of prototype transducers for underwater instruments;
Development of a technology for enhancement of marine living resources
through flattening of lobsters and mud crab as a part of the Island
Development programme; Initiation of a prbgramme for taking up bathymetric
i.U1d seismic survey for delineation of India's continental shelf, etc; Institution
of Occan Award and Antarctic Awards in recognition of contributions of
Indian Scientists and ~.anOgraPhers; As.seSSin g the health of coastal marine
environment through Coastal Ocean Mon~~!u.2."~,nd2~~dicti~~~em
(COMAPS) programme; amxpr6ral16iroraeveloping arugs fr"oI;the marine
-faUna and flora.
The Department has 5 major institutional set up to address the Ocean
related programmes, viz., National Institute of Ocean Technology at Chennai,
National Centre for Antarctic and Ocean Research at Goa, Indian National
Centre for Ocean and Information Services at Hyderabad, Project Directorate,
Integrated Coastal and Marine Area Management (ICMAM) at Chennai and
Centre for Marine Living Resources and Ecology at KoehL.
The Vision Statement highlighting the Perspective Plan 2015 of the
Department of Ocean Development waS formulated in the year 2002 stipulating
the Vision, the Mission, the Mandate and the Priority Areas, to be pursued
by the Department over the next decade. A~cordingly, a number of new
initiatives have been introduced during the Tenth Five Year Plan period,
which inter alia include Gas Hydrate Exploration and Technology Development
for Assessment, Comprehensive Swath Bathymetric Survey of Indian EEZ.

652

India 2005

Geophysical study of Lakshmi Basin, etc. Further, the major programmes of

the Department being implemented during the tenth plan are also oriented
towards fulfillment of the vision in long term perspective.
ANTARCTIC EXPEDmON AND POLAR SCIENCE
The Antarctic Research programme, which was initiated in 1981, has taken
the shape of a major national programme that has a distipct multi-institutional
and multi-disciplinary approach. So far 23 scientific expeditions have been
launched on a regular basis. In addition, two expeditions to the Southern
Oceans for carrying out research in the thrust areas of polar science, viz.,
Weddel Sea Expedition and Krill Expeadition for assessment of Krill Resources
i.i1An"tiuctlc"wateis, were alsoUfldertaken. The Indian station Maitri situated
in the Central Droning Maud land of east Antarctica has provided a platform
to more than 1,500 personnel drawn from about 50 national laboratories,
institutes and universities to conduct experiments in all major disciplines of
polar sciences. This is an outstanding example of networking national facilities
and expertise.
From 1999 onwards the Indian Scientific Expeditions to Antarctica are
launched from Cape Town, South Africa, resulting in mutual scientific/
logistics advantages.
Scientific experiments being carried out at Antarctica are in the field of
Measurements of Greenhouse gases, Tele Seismic studies, Permanent GPS
Tracking at Maitri, Study of Crack propagation on Ice Sheet, Communication
at Maitri, and Polar Logistics.
OCEAN OBSERVATIONS AND INFORMATION SERVICES
Climate variability in the recent past has caused a great deal of impact on
the weather pattern resulting in droughts, floods, and extreme heat events
in various parts of the world. The understanding of climate variability is an
impt!rative need for India as monsoon plays an important role in the economy.
Although, the oceans play an important role in the climate change, the
symbiotic connection between ocean and atmosphere particularly in terms of
exchange of heat and mass is not well understood. Recognising the importance
of information and knowledge of the seas, an integrated programme on Ocean
.Qtl~~~~.nd InforDl.Ati.QJl....~rvices is being implemented targetingar
(i) development of a wide range of ocean-atmospheric and coastal models,
(ii) generation of algorithms for retrieval of satellite parameters,
(iii) augmentation of ocean observations including in-situ and satellite
measurements, and (iv) operationalisation of ocean advisory services. The
OOIS consists of four major components, viz., Ocean Observing System, Ocean
Information Services, Ocean Modelling and Dynamics (INOOMOD) and
Satellite Coastal Oceanographic Research (SATCORE). The details of
achievement under each component of OOIS programme are as follows.
Ocean Observing System (005): The Global Ocean Observing System
(GOOS) of the Intergovernmental Oceanographic Commission, co-sponsored

Scientific and Technological Developments

653

by WMO, UNEP and ICSU, is an internationally organised system for

gathering, coordinating, quality control and distribution of marine and
oceanographic data and derived products of common worldwide importance
and utility as defined by the requirements of the broadest possible spectrum
of user groups. It is recognised that one of the most important means of
implementation of GOOS is through the development of regional alliances,
which are able to focus on issues of common national or regional interest.
Under the National Data Buoy Programme (NDBP) being ~plemented by
the National Institute of Ocean Technology (NIOT), 20 moored data buoys
were deployed in the Indian seas both in shallow and deep waters to cater
to the needs of real-time data in respect of India Meteorological Department,
Coast Guard and supply of data to a variety of applications like port activities,
harbour loffshore-structure development, satellite data validation,
environmental monitoring, climate studies, etc. The data buoys are now being
developed indigenously to meet the requirement of additional buoys. Besides,
India is coordinating the International ARGO Project of the Indian Ocean that
would provide periodic profiles of temperature and salinity of the upper
ocean up to a depth of 2,000 metres to understand the structure and dynamics
of the upper ocean that influence climate. India has assumed the leadership
in the region and is responsible for deployment of ARGOs in the entire Indian
Ocean. A Regional ARGO data Centre has also been established at INCOIS,
Hyderabad for archival and dissemination of ARGO data. The OOS of India
is designed to establish a variety of state-of-the-art technology buoys.
India has led the establishment of a regional alliance - IOGooS (Indian
Ocean component of Global Ocean Observing System) and achieved the
leadership in Indian Ocean for ocean observations. This is a major milestone
towards understanding the oceanic processes of the Indian Ocean and their
application for the benefit of all people in the region. IOGOOS is intended
to elevate the Indian Ocean from one of the least studied to one of the most
studied of the world's major oceans, with a real emphasis on the link between
societal and scientific issues. India is Vice-Chairperson of Inter-Governmental
OceanographiC Commission. India is an elected chairman of IOGOOS and is
responsible for the implementation of IOGOOS through networking of data
buoys. All other Indian Ocean rim countries are members of IOGOOS. The
IOGOOS Secretariat has been established at INCOIS, Hyderabad. So far India
has deployed 50 Agro floats out of a planrn:!d 150 floats during the Tenth
Plan period.
Ocean Information Services (015): Under the programme on Ocean
Information Services, near real-time data and data products such as Sea
Surface Temperature (SST) and Potential Fishing Zone (PFZ) advisories,
upwelling zones, maps, eddies, chlorophyll, suspended sediment load, etc.,
consultancy services to the Central Government, States, corporate sector
industries, are being made available to the user agencies under one roof. The
concerted efforts of our Scientists from Ocean Development, Space and
Fishery Science over the last five years have culminAted in a unique service
to provide reliable and timely potential fishing z.one advisories using satellite
data to the fishing community of the entire coastline of the country in a

654

India 2005

mission mode. Potential Fishing Zone (PFZ) Advisories are disseminated

thrice a week to over 200 nodes located in various states. A dynamic website
has also been established at INCOrS for dissemination o'f a vdriety of
Clpplication (www.INCOIS.gov.in).
Ocean Dynamics and Modelling and Satellite Coastal and Oceanographic
Research (INOOMOD &: SATCORE): During thp Tenth l;ive Year Plan,
INDOMOD and SATCORE and Ocean Obscrv"tions programmes have been
integrated in a focused WHy towards development of models. Accordingly,
sdcctive deployment of drifting buoys, current meter arrays and Expendable
Bathythermograph (XBT) surveys are planned for generation of smfHc\'
oceanographic and meteorological data. These observations art.' intended
primarily for validation of ocean atmospheric models.
Und!:'r the project on INDOMOD, several models hitv' been d'velopt'd
for study of open and coastal ocean processes and coupled OCl'rUl-at01ospheric
processes. The primary applications of thest' models Me prediction of
monsoon variability, storm surgf's associated with cyclones, waves, biological
productivity and coastal proces..,es.
Undl'r the progrc\mnw on Satellite Coastal emd OCl,.,nographic RescMch,
cU1d software nrc developed for atmosphl'l'ic corrcction of OCt'ell)
Colour Munitor (OCM) delta, biogeochemicnl parameters, OCM delta processing,
etc. and vrlHdcHion of experinwnts. A dyn<llllic web site of tht' Indicln National
Centre for Ocean Information Services (INCOIS) with Wd) CIS and query
facility was developed and implemented for Ocean State Forecast. Sume of
the ocean atmosphere models dpveloped undpr this proi('ct~"ve already bl't'n
implemented for generation of OSl'o
al~orithm"

MARINE NON-LIVING RESOURCES

The Polymetallic Nodules (PMN) Programme is a nation"l pl'Ogrclmme aimed
towrUds refinement in assessment of nodules in the 75,000 sq kill area retained
by India in the Central Indian Ocean Basin (ClOB) and development of
technologies for mining and extraction of metals from nodels. India as the
first registered "Pioneer Investor" has to undertake different developmental
activities for exploring and exploitation of polymetallic nodules towards
fulfillment of the obligations relating to development and transfer of technology
and training in the use of technology, etc. Ever since India attained this status
in 1987, efforts were on survey and exploration, technology development for
mining of nodules, extractive metallurgy and EIA studies. This programme
consists of four major components viz., Survey and exploration of nodule in
the crOB; Environmental Impact Assessment Study at the mine site;
Development of technologies for mining of nodules and extraction of metals.
Deep-sea technology and ocean mining group in the National Institute
of Ocean Technology (NIOT) is responsible for the development of technology
for mining of polymetallic nodules from the seabed and other underwater
components. As a part of technology development for underwater mining,

Scientific and Technological Developments

655

a shallow bed mining system was designed, developed and tested at 410 m
water depth successfully and a mining system capable of operating at 6,000
m depth with a mining capacity of 25,000 tonnes nodules per year was
designed under joint collaborative effort with University of Siegen, Germany.
In relation to metallurgy, a semi-continuous demonstration pilot plant
to process 500 kg per day of polymetallic nodules to validate the process
pclckage developed for extraction of l'netal values from nodules at Hindustan
Zinc Limited. (HZL), Udaipur was commissioned in March, 2003 and
campaigns to validate process routes (Ire continuing. The Department collected
about 120 tonnes of nodules from Central Indian Ocean Basin (ClOB), which
will be consumed for the metallurgical demonstration campaigns. The data
generated during the demonstration campaigns will be used for evaluation
and validation of process package already developed. R&D activities for
efficiency optimisation for extraction of metal, viz., Cu, NC Co and Mn were
continued. Regional Research Laboratory (RRL), Bhubaneswar and Hindllstan
Zinc Limited (HZL), Udaipur are pursuing the R&D efforts for optimising
the metal recovery/processing steps.
A Remotely Operable Vehicle (ROV) has been successfully developed
by Central Mechanical Engineering Research Institute, Durgapur (CMERl) as
" pelrt of the Polymetallic Nodule (PMN) Programme of the Department of
Ocean Development (OOD). The ROV is cilpable of performing underwater
survey operations at 200 metres water d'pth and could be operated at it
maximum of 2 knots speed. It can carry a maximum payload of 60 kg. The
ROY was successfully tested at about 200 m water depth off Chennai C(),lst
using thl:' vessel A.A. Sideronko during August 2001 jointly by CMERI and
NfOT. Design improvements on the umbilical assembly and underwater
camera to obtain better picture quality are being made, based on the results
obtained from the last sea trials.
MARINE LIVING RESOURCES
Assessment of Marine Living Resources: The programme on Assessment
of Marine Living Resources was initiated during 1997 and thE' Centre for
Marine Living Resources and Ecology, Kochi is implementing the programme.
It t>lwisages evaluation of existing information on marine living resources,
correlating it with the influence of physico-chemical parameters on the biota,
identifying the ~aps and formulating future strategies for sustainable
exploitation of marine living resources in the EEZ. Fisheries and Oceanographic
Research Vessel Sagar Sampilda is undertaking the studies in the Indian
Exclusive Economic Zone. The studies pertain to the assessment of
environmental parameters, primary and secondary productivity, physical
oceanographic studies including the variation of mixed layers, ('hemical
oceanographic studies pertaining to dissolved oxygen, surface temperature the
thickness of the oxygen minimum layer, nitrate level, nutrient values,
phosphates, silicate and nitrates, primary productivity studies on surface and
column primary production and chlorophyll, upwelling, investigation on toxic
algal bloom including blue green algae, secondary production studies on

656

India 2005

biomass, distribution pattern of species at different depths, in the EEZ were

carried out on seasonal basis. Studies on deep scattering layers, resource
assessment and biology of deep-sea fishes in the continental slope and harvest
technology and catch composition studies using different trawling techniques
including the gear selectivity studies, and benthic productivity studies,
including the investigations on sediment texture were also carried out.
Besides, studies on bioluminescence of plankton, screening of antifouling
compound, plankton biodiversity, Black lip pearl oyster farming including
near shore dynamiC are being carried out under the programme through
CMLRE, Kochi.
Drugs from Sea: The National Project on Drugs from Sea is a multiinstitutional project aiming at developing potential drugs and chemicals from
the marine flora and fauna. Organisms possessing anti-diabetic, anti-diarrheal,
anti-fungal, anti-cholesterol, anti-bacterial and spermicidal activities have been
identified. The regulatory pharmacology and toxicology of the anti-diabetic
lead and anti-cholesterol molecule have reached advance stages of product
~
development. The clinical trial for an anti-diabetic compound has been
: ; commenced. Another compound for anti-hyperlipidaemic activity is being
tested for safe toxicity studies in monkeys. More exploratory work to identify
~ organisms, which show bioactive potential is being undertaken.

'/~/'

MARINE ENVIRONMENT AND COASTAL ZONE

t-"

V Coastal Ocean Monitoring and Prediction System Programme (COMAPS) :

"(: The objectives of the COMAPS programme are to assess the health of our
seas on a long-term basis and to facilitate the pollution control authorities
to plan strategies required for management of pollution related issues like
prescription of appropriate disposal standards as per the assimilation capacity
of the receiving water bodies, water quality criteria, etc. This is being
implemented since the year 1990-91. The COMAPS programme has been in
operation at 82 locations for systematic collection of data and analysis with
respect to 25 parameters relating to physical, chemical and biological
including microbiological characteristics of water and sediments. The study
also envisages concentration of heavy metals and pesticide residues. Besides,
models are being developed for the evaluation of assimilative capacities of
coastal marine areas for contaminant introduction and to enable the Pollution
Control Boards to evolve a mechanism for mitigating the adverse impact of
pollution on marine environment. Development of GIS based data base for
marine pollutants have been undertaken and inter-calibration exercises are
also carried out with a view to ensure the data quality.
COASTAL RESEARCH VFSSELS
The Vessel Management Cell (VMC) of National Institute of Ocean Technology
operates, maintains and manages the two coastal research vessels, namely,
Sagar Purvi and Sagar Paschimi. These vessels are being used for pollution
monitoring under Coastal Ocean Monitoring and Prediction System (COMAPS),
data buoy programme and also for Integrated Coastal and Marine Area

Sril'ntific and TpchnnlnglCill })p\'plopnwllls

,1

Mcll1rlgl.'ment programnws. Further, thesl' v('ssC'ls ilft' Iwing utilised h" u\'cr
15 institutions along the west and east coast of Indiil hv p'i'f('ctivelv lltilisin\!
lh(' ship times for varinus programmes.
INTEGRATED COASTAL AND MARINE AREA MANAGEMENT
Tlw Integrated Coastal and Marirw Area ManagmwlIt IICMAM) projl'd IS
lwm~ impleml>ntt~d from 1YCJ7-9R onwards. This Pmit'd has two major
,'omponents, viz., Cilpacity Building and Developmenl of infrastructun' ",r
R&D and training. Tlw Capacity Building com plllwm , hrlS four !l1dj"r
adivities, briC'fly dl'scrilwd belm\' :
Dev(~lopment of GIS basf'd information system for 11 critical habitats: I"

thc statlls ot soow ul Ihc critical coastill hilhitats like corill rt'pb,
m,lngrUVl's etc., dnd to suggest !-.uitrlhlp mnnrlg!'J1ll'llt plans for protection.
consc'J'\'alion rlnd njstori'llioll, Uc\"(?lopment of Information Sysj{'m using l;JS
\\'a~ I'lken up during the Ninl'th plan period. J.)('v(opml>nt of CIS basvd
lI1formatiun system lor 11 habitat~ namely. Gulf of Khambat. Karwar islands.
Gulf of Kutch. Cochin islands, Sunderbans, Malvan, Kadmat island, Gulf of
Mannar, Pichilvaram, Coringa and Gahirmiltha was abo taken up. Thl'
dpplication of CIS as " tool for ilsst'ssing the status of thp critical hahltats,
'iuch as mi'lngroves, coral rl,ds, sea grass beds, \,vctlands and other COilSlill
t'Co-system~, has revl'illed that more than the nalum) causes, the human
perturbation has rt'sulted in Sl'\'erc damage to thest> ,co-systems. Based on
the extensive studies carried out by the Project Directorate (PD). ]CMAM on
Development of GIS based Information System for Ibest' critical habitills. a
number of suggestions/ rcnJmmenda.tions havl' been madt' to the coastal states
for conservation and mrlnagement of these critical habitats. based on
sustainability prinCiples.
,1"M.'S!'.

Development of Guidelines for Environmental Impact Assessment:

Guidelines have been developed for conductinp, Environmental Impact
Assessment studies in the Ports and Harbours and Marine transportiltion
sectors, tourism related ilctivities in the coastal marine areas. waste disposal
from domestic and industrial sources including discharge of waste through
pipelint.>s, etc.
Development of model ICMAM plans for Chennai, Goa and GuJI of Kutch:
The draft lCMAM plan for Chennai has been finalised based upon the
comments received from varioiJs stakeholders of the report, A Decision
Support System (DSS) was developed to address the cross-sectoral issues like
accretion/erosion, pollution, tourism and human settlements by selecting
Ecology, Environment and Economy as the criteria. Various options of the
interventions such as provision of training jetties to keep open thl" tidal inlets.
beach nourishment to protect the coast from erosion and effluent treatment
to improve the water quality, were analysed using DSS. The design. structure
and basic requirement of DSS including Activity, Impact, Entity and Attribute
(AIEA) inputs were finalised towards the preparation of ModellCMAM Plan
for Goa and Gulf of Katchchh. Further, a prototype Decision Support System

658

India 2005

(DSS) for Chennai was developed as a standalone package in Windows

environment. This package contains a powerful user interface and thus
facilitates the decision-makers to identify the various coastal activities and
their cross impacts on ecology, economy and society and evaluates best
strategies in a digital framework in a user-friendly environment.
Marine Eco-toxicology and R&D activities were undertaken during the
Tenth five-year plan period. The main aim of this study is to develop specific
habitat/water quality criteria to facilitate better management of marine and
associated ecosystems in view of growing problems like pollution and waste
disposal etc., so that the levels prescribed for vilrious chemical clements in
this criteria/standard can be properly assess('d for their suitability for coastal
waters and specific ecosystems like corals, mangroves, etc. As a part of Ecotoxicological studies, to assess the toxic effects of pollutants and their tolerance
levels in marine organisms during the Tenth Five Year Plan period, involving
various universities and research institutes, a Trace MetallaborC\tory was setlip, aiming at delineating the toxic effects of metals and their threshold limits
on various marine organisms. This infrastructure will serve as a National
Facility.
The PD-ICMAM is now equipped with State-of-the-Art computing
facility and training facility to house cl long-term training programme for
utilising the capacity built under the Capacity Building programme. The
trelining is provided to the coastal states in the development of ICMAM Plans
and use of GIS in the management of critical habitats. Further R&D activities
include determination of Best Designated Use Classification of Coastal Waters,
Coastal Habitat Studies, Shoreline Management and Satellite Based R&D
Programme.
MARINE RESEARCH AND CAPACITY BUILDING
The Department of Ocean Development (000) lays special emphasis on
encouraging basic and applied research in ocedl'\ related. subjects with focus
on c\ssisting the Universities and building lip a skilled human resource base
in Mc\rine Sciences. The objective of this programme is to encourage research
in newly emerging and front line areas of Marine Geology and Geophysics,
Marine Biology, Marine Ecology, Exploration and Exploitation of Marine
Resources, Coastal Engineering, etc, with a view to crt.'ating infrastructure
facilities in Universities and to inculcate scientific temper among the people
in relation to marine science and technology.
Presently, about 100 research and development projects are being
supported in the interdiSCiplinary field of Marine Science and Technology.
This includes projects being supported under the Ocean Science and Technology
Cells set up in the chosen priority areas viz., Marine Microbiology at Goa
University, Marine Geology and Geophysics at Mangalore University, Beach
Placers at Madras University, Coastal Marine Culture Systems at Andhra
University, Marine Biology at Annamalai University, Marine Benthos at
Cochin University of Science and Technology, Marine Coastal Ecology of West

Scientific and Technological Developments

659

Coast at Bhavnagar University, Marine Coastal Ecology of East Coast at

Berhampur University and Ocean Engineering and Underwater Robotics at
UT, Kharagpur. In addition, projects in the field of biodiversity, biostratigraphy,
ridge geology, polar sciences, gravimetry and climatology are also being
supported outside the OSTC system.
COASTAL COMMUNITY PROGRAMMES
Island Development: The emphasis of this programme is on building up
of infrastructure and expertise in Ocean Science and Technology for Islands
through development and transfer of technology in the area of marine living
resources, which will bring in socio-economic benefits to the island community.
Several experiments have been carried out under the programme being
implemented by National Institute of Ocean Technology in the following
areas: (a) Fattening of spiny lobsters and mud crabs; (b) Biochemical analysis
of lobsters and live feeds; (c) Water quality and disease management;
(d) Spawning and larval rearing; and (e) Survey of lobster resources in Gulf
of M,mnar and Andaman Islands. Various infrastructure facilities were also
developed at the Andaman and Nicobar C('ntre for Ocean Science and
Technology, National Institute of Ocean Technology, Port Blair.
MARINE ARCHAEOLOGICAL FINDINGS IN THE GULF OF CAMBAY
Detailed underwater surveys carried out in the Gulf of Cambay, about 20 km
west of Hazira, brought to light, the presence of a submerged palaeochannel
traceable to a length of 9 km. Associated with this on either side are basement
like features found in a grid pattern at water depths of 20-40 m. Sub-surface
sampling revealed stone artifacts, potsherds, hearth pieces, animal bones and
human teeth embedded in fluvial sands and silts. A carbonised wooden log
was found and dated to around 9,500 years Be by 14C method at laboratories
in India and abroad. Marine magnetic survey carried out does not indicate
the presence of any major metallic debris/objects. This appears to be one of
the early records of prehistoric human activity of early Holocene age in the
marine environment of India.
Under a national programme involvi.ng over a dozen laboratories and
institutions, detailed surveys sampling, mapping and analysing is in progress.
T.L. dating of pottery is consistent with 14C results. Submergence of structures
in Cambay appears to be a. combination of sea-level rise and tectonic
disturbance. The existence of Cambay in the north-west and Poomphur in the
south-east - both existing some 7,500 BC, opens many vistas of prehistory.
INTBRNATIONAL PROGRAMMES
Law of the Sea : The Department of Ocean Development is the nodal agency
for implementation of the provisions of United Nations Convention of the Law
of the Sea (UNCLOS), in India. UNCLOS is an important instrument, which
establishes the framework and mechanisms for management of oceans. India
ratified the Convention in June 1995. With coming into force of United Nations
Convention on Law of the Sea, the institutions such as International Seabed

660

lndiil 2005'

Authority (ISBA) and Commission on the Limits of Contincntill Shelf (eLC'S)

came into existence. India has been re-elected in the Commission on thl' Limits
of Continental Shplf for thl' second term for iI period of 5 years in the year
2002. India is l'll'cted on illl tht' institutions t'stablished under United Nations
Convention on I.aw of the Sea. viz., lnternationill Seabed Authority, Commission
on Limits of Continental Shelf and International Tribunal on Law of the Sea.
lndiel regulelrly participates in the meetings of ISBA, ctCS (\nd ellso in the
meeting of States Parties on Law of the Sea (5I'L05) and continues to play
the key role in decision making in matters on Law of the Sea.
Delineation of Outer Limits of Continental Shelf: According to the
provisions of United Nations Convention on Law of the Sea (UNCLOS), the
coastal State that intends to delineate the outer limits of the continental shelf
beyond 200 nautical miles is required to submit particulars of sllch limits along
with supporting scientific and technical data. Thl' UNCLOS came into force
in November 1994 and India ratified it in June 1995. If delineation is properly
undertaken, India would be in a position to claim substantial area beyond
the EEZ. Thl' claims are now required to be submitted by May 2009 and would
be examined by the Commission on the Limits of Continental Shelf (CLCS).
National Centre for Antarctic and Ocean R('search (NCAOR) at Goa, an
autonomous body under the DOD, is coordinating this national endeavour
with active co-operation and participation of all national institutions.
Inter-governmental Oceanographic Commission: Established in 1960 under
UNESCO, the Inter-governmental Oceanographic Commission (IOC) is
promoting global co-operation in marine scientific investigations, ocean
services and capacity building in developing countries through the concerted
efforts of all the 127 member states. India through its continued participation
in Icx.~()()S, is contributing to the growth of oceanographic research and
services.
COMNAP /SCALOP / ATCM Meetings: After becoming a member of the
Antarctic Treaty, India continues to participate in the meeting of the Council
of Managers of National Antarctic Programme (COMNAP) and Standing
Committee of Antarctic and Logistic Operations (SCALOP), Antarctic Treaty
Consultative Meeting (ATCM) and Commission for the Conservation of
Antarctic Marine Living Resources (CCAMLR).
Bilateral Programmes: India signed bilateral agreements with several countries
including Russia, China, Portugal and Mauritius in the last 5 years and has
successfully implemented collaborative programmes in Myanmar, Mauritius,
and Seychelles in the field of Ocean Science and Technology.

NEW INITIATIVES DURING TENTH PLAN

Comprehensive Swath Bathymetric Survey of entire Indian EEZ : The area
of our Exclusive Economic Zone is over 2 million sq. km. abound with various
living and non-living resources. This new programme entails scientific
mapping of this area to have an inventory of potential resources and to

Scientific and Technological Developments

661

identify the causes of hazards. The study would help to develop innovative
concepts on submarim' fans ahd their role on accumu)iltion of hydrocarbons,
submarine canyons and their role in transport and distribution on pollutants,
isl,"lds -- undl>l'standing of submarine landslides and stability of coastlines,
s('llinll'ntaI'Y processes - effect on fisheries and biogeochemical cycling,
sediment failure along slopes and their effects on communication cable links
across tIll' seafloor, tectonics of margins, ptc.
Gas Hydrates Exploration and Technology ~velopment: With everint:rcasing gap between demand and indigenous production of natural gas
,md tlw huge import bill incurred by India, it is necessary to look for
altt'rn"tiw resources, viz., Gas Hydrates. Gas hydr<ltes <lre ice like crystalline
iKClIllllll<ltions formed mainly from methane and water. Gas hydrates are
st,1bk, in ~wrmafl'ost rt'gions and in low temperature - high pressure regimes
of the continental margins. Considering the immense potentia) of Gas
Hyctrf1tes in relation to providing total energy security to our nation, a new
programme on "Studies on Gas Hydrates Exploration" is being taken up in
the h'nth plan for implementation. The programme consists of both scientific
,md technology development for gas hydrades. The Department, in association
with CSIR and other laboratories, is focusing on scientific research with special
crnph,lslS on resource extent evaluiltion and environmental impacts and
dt'Vl'lopnwnt of technology for dl'tpction clOd qualification of gas hydrates in
sed 1!1ll'1l ts
Geophysical Study of Laxmi Basin: Buried beneath the Indus Fan sediments,
the l.axmi Ridge is a prominent bathymetric feature off the northeastern
Arabi,\n Sea. The nature of the basement flooring the Laxmi Ri~
(l"s-i;-'-r~;;s i\n enigma. The major rei\son for this ongOing debilte is the
lack of comprehensive gcophysici\l/~eologici\1 di\ta prohibiting the decisive
study of the region. To establish conclusively the ntltul'e of basement in the
Llxmi Basin as wd\ as in the area to its north and south, dl't"iled geophysical
surveys along ti1' entire West COilst margin upwards of the northel'11 extremity
of the Chagos - Laccadive ridge are necessary. Tht' necess,uy activities in this
regard are continuing.
Acqui.sition of New Research Vessel: The Department's foclIs in the next

5 years will be to develop sustainable technology for the exploitation of

v,U'ious non-living resources and i\ suitable platform is required for technology
sl'rvices and de;nonstration programme. Accordingly, a progri\mme for
i\cquisition of a new multipurpose vessel for tt.'<.:hnology servkes and
dl'monstratJon has been initiated. This vessel will also augllwnt the capacity
nl'('d of thl) marilll' living and non-living resources programme of the
Dl'p<l rtmt'n t.

AUTONOMOUS INSTITUTIONS UNDER THE DEPARTMENT

National Institute Of Ocean Technology (NIOT): National Institute of

Ocean Technology (NIOT) at Chennai was established by the Ucpartment of
Ocean Developlnent (000), Government of India as an autonom.lllS institute,

662

India 2005

in association with lIT-Madras, Chennai during November 1993 with the main
aim of developing and promoting technology for specific purposes in ocean
n'lated areas. The multifarious activities of NIOT are carried out as in-house
technology development programmes and field demonstration projects. NIOT
is illso implementing two major operational programmes on behalf on DOD,
namely, th(' National Data Buoy Programme and operation of Research
Vessels for pollution monitoring. The various technology groups form the core
strength of NIOT.

National Centre for Antarctic and Ocean Research (NCAOR): In order

to consolidate tlw gains accrued from the Antarctic expeditions and to
stimulatl' research in the frontier area of polar science, the National Centre
for Antarctic and Ocean Research (NCAOR), Vasco, Goa; (formerly Antarctic
Study Centre), has been established as an autonomous society of the
Department of Ocean Development with effect from 25 May 1998. The
mandate of the NCAOR is, to plan, promote, co-ordinate and execute polar
science and logistic activities of the country in order to ensure a perc('ptiblt'
and influentiill presence of India in Antarctica and uphold our interests in
th> global framework of nations in thl' southern continent and the surrounding
OCl'ilnS. In addition, NCAOR is also dealing with the project on Delint'ation
of Outer Limits of Continental Shelf and management of Oceanographic
Rl'sl.'arch Vessel Sagar Kanya.
Indian National Centre for Indian Ocean Information Services (INCOIS) :
The Indian National Centre for Ocean Information Services (INCOlS) WoS Sl't
lip at Hyderabad in February 1999 as an autonomous body of the Department
for generation and dissemination of user oriented data products, on operiltinnal
basis. rNeOrS is responsible for (i) providing potentiill fishing zonl' advisory
to all mmitime states and islands of India, (ii) establishing state-of-the-art IT
infrClstructure for the OCl'cH1ic realm, (iii) implementing ARGO programme,
Indian Ocean Dynamics ilnd Modelling Project (INDO MOD), Satellite Coastal
and Oceanographic Research Proj(.'ct (SA TCORE) and Ocean Observing
Systems (such as Drifting Buoys, Current Meter Arrays ilnd Expendabll'
Bathythermograph and SCi) Truth Validation Campaigns) with activl'
participation from a network of premier institutions, (iv) managing a Iwtwork
of Marine Data Centres, and (v) l'stablishing an Ocean Information Bank and
web based services.

BIOTECHNOLOGY
Scientific and technological progress in biotechnology is continuing ill a fast
pace world over including India, in order to understand ,md unravel th('
complex life procl'sses and address issues cOI1('('rning human kind. Its impact
is illready being felt in agriculture, healthcarc, cnvironment, industry, etc.
Work on transgenics coupled with prospecting for new gen(~s from our rich
biodiversity, is poised to pay rich dividends in terms of improved production
and enhanced nutritive quality of our food, fruit and vegetable crops and in
reducing post-harvest losses. Animal health and productivity, including

Scientific and Technological Developments

663

marine bioresources, is another area in which the gains could be maximised

through biotechnology. New generation vaccines, diagnostic kits and
therapeutics are likely to lead to a major shift in healthcilre stmtegy for
prevention, early detection and treatment of diseases that impose the highest
burden. Of late, stem cl,ll l'csearch has added a new dimension with their
enormous potential for application in cancer, auto-immune deficiencies,
cardio-vascular and neurological disorders just to name a few. n,e Department
of Biotechnology has taken significant strides in developing and fostering
human resource, in setting up state-of-the-art infrastructure, support to R&D
and encouraging the industry.
HUMAN RESOURCES DEVELOPMENT
M.Sc. courses in general biotechnology and specialised areas have been
supported in Universities, IITs and other institutions. An M.Tech course in
pharmaceutical biotechnology; 2yr-M.Sc course in general biotechnology; two
year M.Sc. course in Industria; Biotechnology were started this year. Four new
courses (M.Sc. in Neuroscience, M.Sc. General Biotechnology, M.Tech Industrial
Biotechnology and Masters in Veterinary Animal Biotechnology) were initiated.
A new DBT -Ph.D. fellowship struchtred as per guidelines of DST /CSIR has
been launched. Besides, a new doctoral and post,doctoral biotecimology
fellowship scheme for students of Third World ACi\demy of Sciences has also
been initiated.
BIOTECH FACILITIES AND PROGRAMME SUPPORT
The department established five new facilities (NMr facility at lICB, Kolkata;
.'I~~.!,sgenic green hQu~~~~(\iill!\_:}}!.f~~m~i~~~gt'...~h at TNAU, Coimbatore
and VAS, Bangalore; Drosophila Stock Centre at the University of Calcutta.
Kolkata;and Biomedical Research Facility at Sanjay Gandhi Post-Graduate
Institute of Medical Sciences, Lucknow) this year. ~ ~tate-of-the-art Isotoee
Radio M'S1i SiedfWlleter installe", at the !.!ni.wsity of Agricultural Sciences.
Ba'ngalore is fully operational and has been used by 24 institutions/
universities/industries.
BIOINFORMATICS
The Bioinformatics (BTISnet) network of this department is today recognised
as one of the major distributed scientific networks in the world dedicated to
provide the-state-of-the-art infrastructure, education, manpower and tools in
bioinformatics. India has emerged as a key international player in the field
of bioinformatics; enabling greater access to the wealth of information and
catalyze the country's attainment of lead position in medical, agricultural,
animal and environmental biotechnology.
Five existing distributed information centres are being upgraded into
five advanced research and training centres as Centres of Excellence (COE).
Thete wpuld undertake, besides research and training, development of new
softwares.

India 200."
AGRICULTURAL BIOTECHNOLOGY
A mutative

trans~enic

nct:' line has been obtell11ed with the co-bombardment

of tour genes. A lr'r~t' number of cotton transgenics have bl'tm developed with

Crv lAc gt'lW agrlinst Hw boll worm Helicoverp" armigc>ril. Work has been
initi<ltl'd on wl1('rlt varit'tie..; with durablt' dual l'esi<;tance to both leaf and stripl'
I'll ,!

BlOHiRTILIZERS
Illtl'grdtl'd nutncnt mandl-;t'lIll'nt packages for certain plantation crops are
being dl'veioped. TI1(' ndwork projed on development of superior nitrogen
ftxlng nrgemism5 and tltosp th(1t mobilise nutrients from soil more efficiently
helS continued at 12 p,lrticip,lting centres. Certain genes involved in minere,1
phosph<ltt' globalisC1tioll h,,\'l' nt'l'n cloned and are being transferred and
spl'cit,,, of biotl'rtiiJ7e1' potenh,tl.

RIOLOGICAL CONTROL
Sl'VerelJ Cost-effective, commercially viable mass production technologi('s of
biocontrol agcnts/biopesticidcs helVE' bet'n dt'veloped, st<lndardisl'd and some
eVl'n transferred to industry. Field efficacy of variolls canoidat(' biocontrol
agents has been estclblished through IMge scalp demonstration tri<lls. So far.
em area of 1,40,000 ha has b{'l'n LOvcr{,d bcnefiting 65,000 farmers. The
ctepeutment has play{'o a key role in addressing several issues rdated to
registrCltion and commerclalisation of biopesticides including strecunlil1lng and
simplification of the existing guidelines tor data g('neration includinl;
toxicological data and for all the potential biopesticides developed through
R& [) cffort.
NA TIONAL BIORESOURCE DEVELOPMENT
The National UlOresourcc Dcvdopm(!nt BOMd (NBDB) has continut'd ib
support to resource and. region-specific progrilmmes as well as to those on
creation of awareness. The work on d
QPJlu:.nL of Butterfly Park i,t
I3angalore has started. Wor was consolidated on the preparation of digitized
i'I1V(I"['\10i"i'es"'Or"medrClhal and other economically important plant, animal,
marine and microbial resources. In the digitized inventory of economically
important plants, the data has been compiled with the help of 40 coordinating
scientists from all over the country about 2,200 species of plants in a relational
delta base system. These inventories would serve as a ready reckoner for
establishing the IPR rights and for resolving the conflicts related to the patent
applications. A unique CD named Sasya Sahyadri, which offers first ever data
on the taxonomy and distribution of all the known plants of Western Ghats
at a resolution of 10 x 10 Km has been prepared. In the coordinated research
project on 'Prospecting for Natural Dyes', culture protocols for Dunaliella
salina and D. bardawil in open tanks at different scales (500-2000 lit res) have
been developed to produce high quality and stable ~-carotene. In the
coordinated research project on 'Botanical, Pesticides', 390 plant/plant part

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:'ucntiiv.: and Tt!chnoiogical Develupmenb

665

samples have been collected, extracted and screened out of which 83 samples
haw showed positive results. A major initiative was launched fol' functional
genomics with special emphasis on problems related to the sug.ucane crop.
A project on development of a novel chemo-enzymatic technology for food
cmd fibre from guar and Cassia tOl'a gums and another on lac have been
initiated. The llioresollfce Development Unit set up at the Institute of
Himah,ycu, Oioresource Technology, Palampur has started the process of
inventoris2Ition of plant resources in the Western Himillaya. Work on
c..h~veloping iI database on plants present in different localities in Zone-IV,
which represents the dry tempcrCltl' region of Himachal Pradesh ha~ recently
concluded. A database has also been generated on thl' microbial c1t1d
mushroom resources from the cold deserts of Kinnaur, Lahalll-Spiti. Bharmollr
and Pangi, inhabited by tribals. The work also included. stud}' on folk
knowledge and. USE' of micro-organisms. Under the integrated project on
"Con.,ervation, inventorisation and enhancement of coastal bioresollrcc5:'
pxercises were conducted for sllstClinable management and effective utilisation
of bioresources 10 seven selected coastal locations. A wen equipped and tuHy
flll'llished biotechnol()gy complex has been established in the old Campus of
the c'B. Pant Institute of Himalayan Environment and Development at KosiKatclrmal, Almora, which hCls a rural flavour and local cultural sett1l1g.
Va('dtion-trainmg programmes for educating school children on thE' importance
and sustainable utilisation of bioresources has bl'en conducted at five place<;
Training to rural and tribal youth tmd out-of-school children has bCt'n
provided at Wayanad, Kerala. A number of children have been educah'd on
tlw importance of conservation and sllstainable utilisatIOn of bioresourcl's. l\
plant biodiversity register is "Iso being prepared which includes d.ocumentation
of more than 20 wild food species lIsed by the tribal communities.

MEDICINAL AND AROMA TIC PLANTS

Multi-locational field trials of test tube - raised elite patchouli plantlets have
been initiated in five states. Four fast growing cell lines capable of synthesising
polophyllotoxin devoid of a-peltatins have been established from PodophyJlum
iWXCclndl'llm. Thirty lead molecule including 12 anti-cancerolls, three antidilibetic and 15 having immunomodulatory properties have been identified
after screening of fifty medicinal plants llsing in vitro bioscreens. Bench scal~'
processes have been developed for dihydro artemesinin (anti-malaria) from
Artemesia annua, camptothecin (anti cancer) from Not/lclpodites foetiri.l,
fraction (anti hetotoxic) from Cleome v;,<;cose, diacetyl baccatin (anti cancer)
from Taxus WalJiclliana and hepatoprotectiw compound from Syllblllll
llla";anum, A Memorandum of Understanding (MoU) has been signed with
two industries for converting some of the identified leads into drugs. Efforts
have beem made for developing a herbal formulation from the lead. extract
showing inhibitory effect on HIV-l reverse transcriptase under in vitro
condition. Genes responsible for the presence of ajmalcine and serpE'rtine in
high concentrations in specific organs of CatllifrantJls roseus have been
identified.

660

India 2005 '

PLANT BIOTECHNOLOGY

During the year, R&D projects were supported for improvement of forest
trees, horticulture and plantation crops. Tissue culture protocol standardisation,
characterisation of genetic diversity, tree improvement through breeding,
molecular biology tools for transformation of disease and quality traits,
improvement of self life, molecular cataloguing and development of molecular
markers for specific traits were some of the identified priority areas where
research activities continued. The main thrust of the activities at the regional
hardening units continued towards production of large quantities of elite
planting material, dissemination of technology to the users and protocol
refinement.
Studies have been supported for development of transgenic banana with
increased shelf life. Full length ACC oxidase gene from banana cv. Robusta
and Ney Proovan has been isolated through RACE-PCR and registered in
Gene Bank of NCBI and the accession numbers obtained.
BIOPROSPECTING

Under bioprospecting programme, vegetation mapping and landscape level

biodiversity characterisation has been taken up for Central India, Eastern
Ghats and mangrove, landscapes of East Coast. A number genes have been
isolated from A vicennia marina and transferred to crops like rice. Homogygous
pure lines of transgenic rice have been identified and are being analysed for
the integration of the genes. This has been recommended by RCGM for limited
field trail. Many other genes and bioactive molecules have also been identified
and are being taken for product development. A programme has been
initiated for prospecting novel genes, biomolecules and enzymes from aU the
bioresources including higher plants, microbes, fungi and lichens. The thrust
is on different agroclimatic regions including hot spots, temperate, coastal and
desert (both arid and cold) regions.
ANIMAL BIOTECHNOLOGY

Leads have been obtained in research on transgenics, animal Health care,

animal byproducts, etc., during this period. Cloned miceand buffalo embryos
have been developed by nuclear transfer using somatic cells. A recombinant
antigen based ELISA kit has been developed to detect bovine viral diarrhoea
vinu; antibodies in the sera of cattle and buffaloes. In the first phase of buffalo
genomics programme being implemented in six centres, short term projects
have been taken up with an emphasis on identification of specific genes
controlling the traits of economic importance.
AQUACULTURE AND MARINE BIOTECHNOLOGY

During the year, apart from the work on diagnostics and vaccine development
in aquaculture, aspects on cell lines development, immune-stimulants, Antibacterial and anti-cancerous agents from marine sources were pursued.

Scientific and Technological Developments

667

Projects were funded in the areas, viz., isolation and identification of antiwhite spot syndrome virus molecule from marine biota.
SERI-BIOTECHNOLOGY

An International Consortium of Lepidopteran Genome projects has been

formed by eight countries for cooperation and coordination of the efforts on
lepidopteran genomics. As a part of Indian initiative, a collaborative project
has been launched to develop EST data base on mulberry and non-mulberry
silkworms. For the first time transformed mulberry plants have been oroduced
using Agrobacterium tumefadens, with marker genes. This will now be used
to develop transgenic mulberry with desirable agronomic traits. Efforts have
been initiated to develop framework of molecular linkage map in mulberry.
ENVIRONMENTAL BIOTECHNOLOGY

The major focus during the year has been on application of biotechnology
for industrial effluent treatment; restoration of degraded ecosystems,
wastelands, and mine spoil dumps; demonstration of the technology at the
site of the user industry; flOd conservation and characterisation of biodiversity
using molecular tools. Programmes on animal diversity characterisation,
distillery and tatU1ery effluent treatment as well as restoration of water bodies
h,lVe also been successful. Thrust areas in enviornmental biotechnology have
been prioritised.
MEDICAL BIOTECHNOLOGY

A multi-institutional programme on oral cancer using seventeen non-marketshas

becm completed and data have been analysed. Work on hereditary, breast
and ovarian cancer has resulted in the identification of some novel mutations.
The sixteen genetic diagnosis-cum-counselling units established earlier have
prOVided gt'netic diagnosis and counselling to about 20,400 affected families;
more than 4.500 tribal population got benefited from these units.

The Programme on Functional Genomics implemented at Institute of

Gl'nomics and Integrated Biology (earlier Centre for Biotechnology), Delhi has
mC\de significant achievements in three areas, i.e., spinocerebellar ataxia,
schi70phrenia bipolar disorders and asthma. During the year, multi-centric
and multi-institutional progril.mmes have been generated on whole genome
s(,'quencing of microorganisms, mosquito genome, cancer genomics, etc. Under
microbial genomics, several population spl'cific SNPs and SNP haplotypes in
some of the genes from Schizophrenia and Parkinson's (PO) patients have
been obtained.
MISSION-MODE PROGRAMMES
DUT has successfully completed mission-mode programme on new generation
vaccines, herbal product 'development, establishment of mirror sites for
genomic database. Besides, there are two other mission-mode projects on
biofuels and bioenergy and food and nutritional security.

India 2005
During the second phase of its activity, the Nationctl jai Vigyan Mission
on the Development of New Generation Vaccine has continued to pursue the
d('vt.'lopment of six candidClte vaccines, i.e., cholera, rabies, m(llclria, J(\P,\l1l'S~'
encephalities, tuberculosis and Hrv I AIDS. Cholera vaccine candidate VI\. 1.3
hcls (limost completed phClse lId clinical trial .. , Site preparation tor p11ilSl' III
are continuing at Kolkata. The technology for Jap;ll1('S(' enc<'phalilities tissue
culture based vaccine h,15 been transferred to the industry whilt' a second
based vaccine is being standarised. Two candidate TB vaccines bast'd on DNA
approach in priml' boost strategv Me undergoing animal toxicological studie~,

BIOTECHNOLOGY FOR SOCIETAL DEVELOPMENT

'1 he UepclI'tlllent ha~ paid SPt'Chll attl'ntion to tlw application of research
results dnd leads for the welfare of the society. Demonstration rInd trrlining
programme on proven and field tested technology werE' funded, Thest'
pwgrc1mmes could help in incredsing the skills cmd II1CO!llt' of tlw SC/ST
people through biotechnology pwducts and pron'ss development, which h(1\'(:'
pxtl'nlied thl' benefits to improve their health status, ilVl'nue" for livelihood
and ~lIppll'll\Cllting thp f(lrnily income, I\.round 65,000 people htl\,p been
lwndited through the implementiltion of projects on ('Ultiv,ltlOI1 of arolll.ltic
dnd medicinal plants. mushroom and Spimlin,l; biologic"I ('ontwl of pli1l1t
~w<;ts "nd liisPilsl's; verll1iculture and vl'rmicnmposting' bintl'rtili7l'1'''
Clqlli-lCltlture; floriculture; poultry farming: hUlI1,1Il hl,,,lthccII'l' clIld ~l',lWt'l'd
cultivation, etc. Programmes on tnllshro'"11 Sp ..1WI1 protilll'linn i1l1,j
delllonstration, integrated fish-cum-duck aquatal'ming, IInpwvpment lIf
livl'stock thmugh crossbred dnd hormone therapy ,md l1lolf'nd"" ('P,df'miolog~
,lnd counselling for alcoholism in Nitgiri tribals h,l\'e been funded lIndl'r SC /
ST I'rogrrlmme. Vnrious universities, public fundl'd institutions, Krishi Vigv,u1
Kl'ntircls, NGOs, voluntary and non-governn1l'nt,ll orgClnisdtions ilI'l' involv('d
ill tilt' implementation of the projects by proViding h,mds on trdinin~, field
dl'lllonstr,ltiol'ls dnd cfl.'ating aWMcncss amongst tIlt' tclrgct poPUI"tion,
!\I('W illiti"ti\'e~. tor women included ,1 sl'ri-bioh'ch ('ompll'x ,11 Mysor(
,1I1d " l'lJlllprl'llt.'nsive tn~inll1g programnw 011 aqud('ultllrt', fish food pnKPssing
,md rl'lated aspects at Bengre fishing vill,,~(' near l'vIilngalon- The Gold""
jubill'(' Biotechnology Park for women elt Clwnne1i has madt. imprcssivt'
progress with st.'vt>ral entrepreneurs now gl.'ltll1~ sh'rldy income. A few hdV('
,llstl exported their pr()dud~.

FOOD BIOTECHNOLOGY
Two commen.:ialtscd food biotechnol ' . VIZ" Imge-sc,llt' production 01
oystcr mushrooms (100 kg/day) and }lrulincl p :tuction (50kg/d,lY) rt'c('ived
awards on the Technology Day ,lwar s.
mu Iplex PCR protocol has been
standarised for detection of barnase and barstal' genes, Cross validation ot
the PCR kits developed for rapid detection of food-borne pathogens has
reached its final phase. EUSA kits developed for detection of Aflatoxin B1
by two institutions through DBT support are being corss validated in raw
and processed foods. Process has been standardised to obtain nutraceutical-

Scit'ntific and Technological Developments

669

enriched oils by judicious blending of oils, which were modified using lipases
crltalysed inter-esterfication reactions. A multi-institutional network project
ha:" been supported for development of nutraceuticals from indigenous edible
mushrooms/and herbs through brainstorming sessions. new areas have been
identified to generate proposals in the areaof biofortification and to develop
molecular markers in nutritional deficiency. Strengthening of food biotechnology
n'search and training has resultl~d in the up-gradation of sev('ral institutions.
MICROBIAL AND INDUSTRIAL BIOTECHNOLOGY
The Technology for the production of cellulase free thermotolerant and
alkalostable xyhmase from Streptomyces violaceoruber has been standardised
and the enzyme application in puip bleaching process has been proved in
the reduction of hypochlorite consumption by 20 per cent at lab scale level.
The cellulase production from an A..!kalother'!25!E.!.~ilic; th_ermrD1onp:apa,ra. sp.
has been optimised. The utility of flinga} aTf<iUine protease developed through
R&D efforts has been successfully demonstrated in pre-tanning operatio~s,
namely, de-hairing, soaking and bating of goat-skins and cow-hides, in leather
making. A novel bio-physico technology of electro-coagulation and flotation
for removal or impurities including suspended solids, detergents, toxic metal
ions and pathogenic bacteria which is much faster and effective than
conventional methods has been standardised and demonstrated to the
personnel from local tanneries.
A novel bioreactor for biological treatment of wastewaters at much high
loading rates compared to existing reactors has been fabricated and successfully
deomonstrated for COD reduction in simulated effluent as well as actual
effluent from a dairy. Carrier based bioinoculants useful in agrifarming in
colder regions of hilly areas a!ld bacterial packages for growth improvement
in tea have been developed in different studies. The strip bi\sed cholesterol
biosensor has been designed and clinical validation studies are being
conducted. A complete software implementing the nonlinear geometric
controller for industrial bioprocesses has been developed and proven
mathematically.

BASIC BIOTEHCNOLOGY
Studies carried out at Centre for DNA Fingerprinting and Diagnostics (CDFD),
Hyderabad revealed that nucl~ar import property of Vpx is critical for the
optimal virus replication in non-dividing cells such as macrophages. It was
demonstrated at Jawaharlal Nehru University GNU) that the presence of
counter .ions in the molecular environment is critical for maintaining a
minimum 3D structure of hyaluronic acid-bidning protein I, HABPl.
Crystallisation studies of plant viruses carried out at Indian Institute of Science
(lISe), Bangalore revealed that non-structural proteins of PVBV express in low
yields and have proved difficult to keep in a soluble form. It was demonstrated
at Bose Institute, I<olkata that the N-terminal cytoplasmic domain of band 3
is a substrate of the apoptosis executioner caspase 3. Scientists at University
of Hyderabad investigated the thermal collissions due to collective motional

670

India 2005,

mode of a subglobal structural unit of ferrocytochrome c under conditions

of progressively increasing protein instability induced by guanidine
hydrochloride. Scientists at JNCASR solved the Crystal structure of P.
falciparaum AdSS. It was shown at IISc that simultaneous expression M.
tuberculosis EFG (MtuEFG) with MtuRRF is required to carry out ribosome
recycling and provided the first genetic evidence for a functional interaction
between RRF and EFG. A systematic mutational analysis of conserved amino
acids was carried out at Bose Institute, Kolkata to identify whether such
essential residues are involved in functioning of DrrAB. A novel series of
phenomenally simple and yet highly efficient non-glycerol based cationic
tmnsfection lipids were designed and synthesised for use in non-viral gene
therapy at IICT, Hyderabad. Vallabhabhai Patel Chest Institute, Delhi reported
Polyphenolic peracetates (PA) as the potent enchancers of intracellular NOS.
Studies at JISc, Bangalore indicated that glycodelin A can induce stress on
T cells which is sensed by the mitochondria leading to apoptosis pathway.
In the areil of nanobiotechnology, ten proposals have been funded.

BIOSAFETY
The Review Committee on Genetic Manipulation (RCGM) has made several
recommendations within the framework of the Environment (Protection) Act,
1989 and the "Rules"-1989, on applications submitted by public-funded. as
well as private institutions and also on the policy / regul<ltory matters
pertaining to biosafety, in introduction of recombinant DNA therapeutics and
transgenic crops. RCGM has approved conduct of field trials on several
transgenic crops and conduct of pre-clinical studies on re(.'ombinant DNA
therapeutics.

BIOTECH PARKS
A biotechnology park was set up at Lucknow with industrial modules, a biobusiness centre and training activities. The park was registered as a society
in February 2003 under the U.P. Societies Registration Act, 1860.

lNTERNAnONAL COLLABORATION
During the year, international collaboration has emerged as a major strength
of the department, with an increasing number of countries in developing
bililteral agreements with India. A Memorandum of Understanding (MOU)
was signed with Mongolia. MOUs for Denmark and South Africa have already
been approved by both the countries with necessary clearances obtained.
Follow up action was taken on the agreements signed with Mauritium,
Singapore and Syra. The Syrian National Centre of Biotechnology was set up
in Damascus in collaboration with the department and a Centre for
Bioinformatics Network has been proposed at Mauritius. Bilateral agreements
and collaborations were pursued-'with Germany, France, Nepal, Sir Lanka,
Sweden, UK and USA. Interactions have been made with Belarus, Canada,
Hungary, Iran and Ireland.

Scientific and Technological Developments

671

AUTONOMOUS INSTITUTIONS

There are seven autonomous institutions under the department. Their

performance in terms of the quality of science, service provided, product
development, filing of patents, publication record and other parameters, has
been outstanding. These are: (i) National Institute of Immunology, New Delhi
(ii) National Centre for Cell Sciences, Pune (iii) Centre for DNA Fingerprinting
and Diagnostics, Hyderabad (iv) National Brain Research Centre, Manesar
(v) National Centre for Plant Genome Research, New Delhi (vi) Institute of
Bioresources and Sustainable Development, lmphal and (vii) Institute of Life
Sciences, Bhubaneswar. Besides these, the department is also responsible for
the International Centre for Genetic Engineering and Biotechnology, New
Delhi. Bharat Immunologicals and Biologicals Corporation Limited, r
Bulandshaher was set up as public sector company to manufacture oral polio /c~
vaccine. During 2003-04 it has formulated 70 million doses of vaccipe

--_._---

25

Transport

A well-knit and coordinated ..;\".;tl'm of transport plays an unpmtant roil' in til('

~usti1ined economic growth of iI country. The present trilJ1Spnrt system of the
country comprises several modes of transport lI1duding raJI, road, coastai
shipping, air transport, etc. Iransport has recorded d substantial grmvth over
the wars both in spread of network and in output. The Ministry of Sur ian'
Transport is responsible for the formation and implementC'ltioJ1 of poli( it's clnd
programmes for the development ot various modes of transport ..,ave the
railways and the civil aviation.

RAILWAYS
Railways provide the principal mode 01 transportatIOn tor tn:'ight iUld
passengers. They bnng togtther people from the farthest corners of the
country and make possiblP the' conduct of hliSirl('ss, sightseeing, pilgrimagl'
and education. Indian Railwavs have bl:'l'n a great integrating force for over
150 years. TIley have bound the economic life of the country and helped in
accelerating the development of industry and agriculture. From a very modest
beginning in 185.3, when tllP iirst tmin st('amed off from Mumbai to Thane,
i1 distance of >~4 km, Indian Railway" have grown into a vast network of 6,906
t>talions spread over a route-length of 63,122 km with a fleet of 7,681
locomotives, 39,852 passenger serVIce vehIcles, 4,904 other coaching vehicles
and 2,14,760 wagons as on 31 March 2003. The growth of Indian Railways over
the years is phenomenal.. They have played a vital role in the economic
industrial and social development of the country. The network runs multigauge
operations extending over 63,122-route kilometre. The gauge-wise route and
track lengths of the system a~ on 31 March 2003 were as under:
Gauge

Roull.'

Running

Tolal

km

TraLk
km

Trark

km

I3roilU Gauge (1.676 mm)

45,622

64,461

H7,81!'-J

Melre Gauge (l.OOO mm)

14,364

14,R59

17,848

3,136

3,172

3,484

63,140

82,492

1,09,221

Narrow Gauge (762 mm and 610 mm)

Total

About 26 per cent of the route-kilometer and 36 per cent of running track
kilometre and 36 per cent of total track kilometer is electrified. The network
is divided into nine zones and further sub-divided into divisions as on
31 March 2002. Subsequently, the network has been' further sub-divided into

Transport

673

a total of 16 zones. Divisions are the basic operating units. The 16 zones and
their respective headquarters are given below:
Zonal Railways

Headquarters

Central Railway

Mumbal CST '

Eastern Railway
Northl'rn Railway

Knlkata '
New Delhi'

North Eastern Railway

Gorakhpur

Northeast Frontier Railway

Maligann (Guwahati)

,If

r'" -, .1

Southern Railway

Chennai

South Central Railway

Sel'underabad

South Eastern Railway

Kolkata

Wes\l'rn R.1i1way

Church Gate, Mumbai

East Central Railway

Hajipur

East Coast Railway

Dhllbilneshwar -' '

North Central Railway

Allahabad . ;

North Western Railway

South East Central Railway

Jaipur " j.'" /" ,'I

.jl(' ,i1?'~'
Dilaspur' .

South Western Railway

Hubli

Wl'st Central Railway

Jabalpur t ,',

J 1\'...

"I . I

,j.

Indian Railways are now reorganised into 1... zones. Two new Railway
zones, viz., East Central Railway, Hajipur and North Western Railway, Jaipur
became functional on 1 October 2002. Five more new zones viz., East Coast
Railway, Bhubaneswar, North Central Railway, Allahabad, South East Central
Railway, Bilaspur, South Western Railway, Hubli and West Central Railway,
Jabalpur became functional on 1 April 2003. Along with the reorganisation of
the zones, eight new Railway Divisions viz., Agra on North Central Railway,
Ahcmdabad on Western Railway, Guntur and Nanded on South Central
Railway, Pune on Central Railway, Raipur OT! S()uth East Central Railway,
Ranchi on South Eastern Railway and Rangiya on Northeast Frontier Railway
became operational on 1 April 2003.
Cooperation between public and Railway administration is secured
through various committees including Zonal Railway Users' Consultative
Committees and Divisional Railway Users' Consultative Committees. The
rolling stock fleet of Indian Railways in service as on 31 March 2003 comprised
52 steam, 4,699 diesel and 2,930 eit>rtric locomotives. Currently, the Railways
arc in the process of inducting new designs of fuel-efficient' locomotives of
higher horse power, high-spced coaches and modem bogies for freight traffic.
Modem signalling like panel intcr-Iocking, route relay inter-locking, centralised
traffic control, automatic signalling and multi-aspect colour light Signalling,
are being progressively introduced. Indian Railways have made impressive
progress regarding indigenous production of rolling stock and variety of other
equipment over the years and are now self-sufficient in most of the items.
The main objectives of railways planning have been to develop the

674

India 2005

transport infrastructure to carry the projected quantum of traffic and meet the
developmental needs of the economy. Since the inception of the planned era
in 1950-51, Indian Railways have implemented nine five-year plans, apart
from annual plans in some years. During the Plans, emphasis was laid on a
comprehensive programme of system modernisation. With capacity being
stretched to the full, investment of cost-effective technological changes have
become inescapable in order to meet the ever-increasing demand for rail
transport. Along with the major thrust directed towards rehabilitation of
assets, technological changes and upgradation of standards have been initiated
in important areas of track, locomotives, passenger coaches, wagon bogie
designs, signalling and telecommunication. Progress of Railway traffic and
inputs is shown in table 25.1

PUBLIC UNDERTAKINGS
Then' ar nin undertakings under the administrative control of the Ministry
of Railw' s'viZ., 1 ",al
dia Technical and Economic Services. Limited
(RITES);(ii) Indian Railway Construction (!IKON) International Limited; (iii)
Indian Railway Finance Corporation Limitl\d (IRFC); (iv) Container Corporation
of India Limited (CONCOR); (v) Konkan Railway Corporation Limited
(KRCl). (vi) Indian Railway Catering and Tourism Corporation Ltd. (IRCTC),
(vii) Railtel Corporation of India Ltd.(Rail 1el), (viii) Mumbai Rail Vikas
Nigam Ltd. (MRVNl), and (ix) Rail Vikas Nigam Ltd. (RVNL). Centre for
Railway Information System (CRIS) was set up as a H'gistered society to
design and implement various railway computerisation projects.

RESEARCH AND DEVELOPMENT

The Research, Design and Standards Organisation (RDSO) at lucknow is the
R&D wing of Indian Railways. It functions as a consultant to the Indian
Railways in technical matters. It also provides consultancy to other organisations
connected with railway manufacture and design.

RAILWAY FINANCE
Since 1924-25, railway finances remain separated from general revenues. They
haw their own funds and accounts and the Railway Budget is presented
separately in Parliament. However, the Railways contribute to the general
revenue a dividend on the capital invested. Quantum of contribution is
reviewed periodically by a Parliamentary Convention Committee.

ROLLING STOCK
Over the years Indian Railways have made concerted efforts to achieve selfsufficiency in production of rolling stock in the country. Locomotives are built
in Chittaranjan Locomotive Works (CLW), Chittaranjan, Diesel locomotives
Works (DLW), Varanasi and BHEL, Bhopal, a public sector company which has
developed capability to manufacture electric locomotives for the Indian
Railways. In 2001-2002, CLW manufactured 82 broad-gauge electric locomotives
and DLW produced 102 broad-gauge diesel locomotives (including eight locos
for export). The Railways at Patiala have set up Diesel Component Works
(DCW) for manufacturing and repairs of components of diesel locos and sub-

Transport

675

..-,

'"

Lr,

"',
"'.

o
.,.
~.

-i

r~

or,

676

India 2005

assemblies. The project has attained the rated capacity for manufacture of
components of diesel engines, its repairs and rebuilding of diesel locomotives.
The bulk of passenger coaches are manufactured in Integral Coach Factory
(ICF), Perumbur, Chennai and Rail Coach Factory (RCF), Kapurthala. In
addition to ICP and Rep, there are two more units in public sector, viz.,
Mis Jessops, Kolkata and Bharat Earth Movers Limited (BEML), Bangalore,
which also manufacture coaches and electrical multiple units. A Rail Whe.d
Pactory has been set up at Bangalore to cut down imports in trus field.
----~---

PASSENGER TRAFFIC
Passengers originating had risen from 1,284 million in 1950-51 to 4,971 million
in 2002-2003 and passenger kilometre from 66.52 billion in 1950-51 to 515
billion in 2002-2003. Despite constraint of resources, the Railways have been
able to cope with increasing demand of passenger traffic. Railways are the
premier mode of passenger transport both for long distance and suburban
traffic.
FREIGHT TRAFFIC
Rapid progress in industrial and agricultural sectors has generated a higher
level of demand for rail transport, particularly in core sectors like coal, iron
and sted ores, petroleum products and essential commodities such as food
grains, fertilizers, cement, sugar, salt, edible oils, etc. Revenue freight traffic
increased from 73.2 million tonnes in 1950-51 to 518.7 million tonnes in 20022003. Transport effort measured in terms of net tonne kilometers (NTkm)
increased from 38 billion in 1950-51 to 353.19 billion in 2002-2003. Some of the
measures taken for improvement are: (i) line capacity augmentation on certain
critical sectors and modernisation of signalling system; (ii) measures such as
unit train operation for bulk commodities like coal; (iii) increase in rollerbearing equipped wagons; (iv) increase in trailing loads to 4,500 tonnes; (v)
operation'UNI-GAUGE' on Indian Railways; (vi) strengthening the track
structure by providing heavier and stronger rails and concrete sleepers; and
(vii) production of prototype cIectric locomotive of 5000 HP for freight
operation by Chittaranjan Locomotive Works. (c L ..._, ')

ROADS
India has ~e of the larg~~.~ road networks in the world, aggregating to about
...l.2.L.million kilometers at present. The country's road network consists of
National Highways, State Highways, Major/Other District Roads and
Village/Rural Roads. Of these, the National Highways and the State Highways
together account for 1,95,000 kilometers length. Though, the National Highways,
which is the responsibility of the Central Government, has 65,569 km length
and comprises only two per cent of the total length of roads, but carries over
40 per cent of the total traffic across the length and breadth of the country.
The number of vehicles have been growing at a rapid pace of 12 per cent per
annum over the last few years and traffic on the roads is growing at 7-10 per
cent per annum. The share of road in total traffic has been growing from
12 per cent of freight traffic and 31.6 per cent of passenger traffic in 19S()"S1
to a projected 65 per cent of freight traffic and 85 per cent of passenger traffic

Transport

'677

by the end of the Tenth Plan period, The rapid expansion and strengthening
of the road network, therefore, is imperative, both to provide for present and
future traffic and for improved accessibility to the hinterland.
The Ninth Plan (1997-2002) laid emphasis on coordinated and balanced
development of road network in. the country. During this period, the
Government also embarked on a massive National Highways Development
Programme (NHDP), which has made substantial progress. During the Tenth
Plan (2002-2007), Road Development is considered an integral part of the total
transport system of the country with emphasis on strengthening three
functional groups, the Primary System (National Highways and Expressways),
Secondary System (State Highways and Major District Roads) and Rural
Roads. During the Tenth Plan the completion of the NHDP as well as removal
of deficiencies in the existing National Highway Network are envisaged for
faster movement and safer travel over long distances and also to give a boost
to the economy.
The Tenth Plan outlay for the Central Sector Roads Programme is
Rs 59,700 crore (which includes Rs 500 crore for Roads of Inter-State and
economic importance). The gross budgetary support is Rs 34,790 crore and the
share of Internal and Extra Budgetary Resources in financing the plans
estimated at Rs 24,700 crore. The outlay envisaged for th~' Roads and Bridges
in the Plan of States/Union Territories is around Rs 50,321 crore.

NATIONAL HIGHWAYS
The Central Government is responsible for the National Highways system. The
total length of the network, as of today, is 65,569 km.
In order to give a boost to the economic d~'velopment of the country, the
Government has embarked upon a massive National Highways Development
Project (NHDP) in the country. The NHDP is the largest highway project ever
undertaken in the country. Under this project being implemented by National
Highways Authority of India (NHAI), about 14,279 km length of National
Highways are proposed to be upgraded to four or six lane at a total estimated
cost of Rs. 64,639 crore (in two Phases, i.e., Phase-l and Phase-II).
NHDP has the following two components:
(i)

Golden Quadrilateral (GQ) comprising, National Highways connecting

four metro cities viz., Delhi, Mumbai, Chennai and Kolkata. Total length
of GQ is 5,846 km. The entire GQ will be completed by December 2005
except ~llahabad Bye.ss, which will be completed b~ December 2006.

(ii)

North-South and East-West Corridors comprising the National Highways

connecting Srinagar to Kanyakumari including Koehi-Salem spur and
Silchar to Porbandar is about 7,300 km. The North-South and East-West
Corridors is targeted for completion by December 2007.

With a view to strengthen the infrastructure network of the country, the

National Highways Authority of India is also implementing four laning of
361 km for connectivity to 10 major ports of the country. The work related to
development of connectivity to Kandla Port has been completed. The works

678

India 2005 .

related to development of connectivity to Mormugao, Jawaharlal Nehru Port

- Package - I (NH - 4B & NH - 4), Visakhapatnam Port, Haldia Port, Tuticorin
Port, Paradip Port and Cochin Port are in progress. Contract has been awarded
for Civil Work for Jawaharlal Nehru Port - Package - II (SH-54, Amaramarg
and Panvel Creek Bridge), New Mangalore Port and Chennai and Ennore Port.
Apart from capacity augmentation by four/six laning of National
Highways under NHDP, the Government has also undertaken the programme
for Improvement of Riding Quality of National Highways since 1999. At that
time it was assessed that about 33,000 km of National Highways (the then
balance length apart from NHDP) needed improvement of riding quality. Up
to March 2004, estimates for about entire length of National Highways have
been sanctioned for improvement of riding quality and periodic renewaL
Apart from IRQP other works like widening and strengthening, construction
of bypasses and rehabilitation/construction of bridges, etc., have also been
undertaken for the stretches not covered under NHDP.
Projects on road development have been taken up in variolts parts of the
country with the assistance of World Bank, Asian Development Bank(ADB)
and JcIJ2an Bank for International Cooperation (JRIC) also. Six projt'cts in
Punjab, Haryana, Orissa, West Bengal, MadHya Pradesh and Maharashtra
weTl' completed in June 2001 from World Bank Credit/Loan Assistance of
US $306 million. Five projects taken up under the JBlC loan assistance for
36,915 million~ have already been completed. l~urther, the NHAI have five
projects in the States of Haryana, Rajasthan, West Bengal, Jharkhand and
Andhra Pradesh under the loan assistance of US $ 245 million from ADB,
which have been completed in June 2002. Two loans of US $ 180 million and
US$240 million have also been tied up from ADB for Surat-Manor Toll Way
Project in GujarClt/Maharashtra and Western Transport Corridor Development
Project in Karnataka respectively. In addition, three loans of US $ 516 million
(for World Bank-lll Projects), US $ 589 million (for Grand Trunk Road
Improvement Project) and US $ 240 million (for Allahabad Bypass Project)
have also been tied up from tht, World Bank for development of NH 2 in Uttar
Pradesh, Bihar and Jharkhand and the works are in progress. Four-Ianing of
stretches of East-West Corridor of the NHDP has been taken tip under loan
ClssistClnce of ADB of US $ 320 million.
With Cl view to further augment flow of funds to the sector and to
encourage Private Sector participation in Road Development, Government has
already announced several incentives such as tax exemptions, duty free import
of road building equipments and machinery. 37 projects valued about Rs 4,974
crore have been planned on Build, Operate and Transfer (BOT) basis (Toll
based projects).
,-_...
------

_. -- -The --major bottleneck to Private Sector participation is recognised as huge

upfront capital investment and high risks of revenue collection, which

sometimes deter the investors to invest in this sector. To address these issues,
apart from giving several incentives, the Government has decided to offer
some projects on annuity mode. Eight numbers of projects valued about
Rs 2,354 crore have already been awarded on annuity mode and are in

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progress. The NHAI has also formed Special Purpose Vehicles (SPV) for
funding road projects. SPY's are separate legal entities formed under the
Companies Act, 1956. It involves little cash support from NHAI in the form
of equity / debt; rest of funds come from Ports/Financial Institutions/beneficiary
organisations in the form of equity / debt. The amount spent on development
of roads/highway is to be recovered in prescribed concession period by way
of collection of toll fee by the SPY. Four projects on Spy funding have already
been completed. At present 7 projects valued about Rs 1,426 crore have been
awarded on Spy funding basis and are in progress.
Phase III of NHDP : Four laning and upgradation of additional 10,000 km
of National Highways on BOT basis.
As announced by the Prime Minister of India on Independence Day 2003,
four laning and up gradation of additional 10,000 km of National Highways
will link all state capitals, which are away from NHDP by four-lane highway.
This will especiilUy benefit the North-Eastern states.
Identification of these stretches is proposed on the following principles:
(i) Corridors hilving high density of tmffic (HOC); (ii) Connectivity of State
capitals with NHQP; and (iii) Connectivity of centres of tourist and economic
importance with NHDP
The implementation of entire 10,000 km of National Highways under this
scheme has been entrusted to NHAI. As of now, lengths of 5,931 km have been
identified for implementation of four-Ianing on BOT basis by NHAI. Out of
this, one contract amounting to Rs 127.60 crore on Pune-Khed section (30km)
of NH-SO in Maharashtra has been awarded in August 2003 and work is in
progress. Bids have been invited for another seven projects of 622 km total
length in five states for a total cost of Rs 2,948 crore. The finalisation of balance
length of National Highways under this scheme is under consideration.
STATE SECTOR ROADS
Since the State Highways and District and Rural Roads are under the
responsibility of respective State Governments, these are developed and
maintained by various agencies in States and Union Territories. Roads are also
being developed in rural area under Pradhan Mantri Gram Sadak Yojana
(PMGSY). The objective of the PMGSY is to link all villages with a population
of more than 500 with all-weather roads by the year 2007. The States are also
assisted through financial assistance from the Central Road Fund. This fund
has been given a statutory status by Central Road Fund Act enacted in
(....Pf.-.
December 2000.
Further, to promote inter-state facilities and also to assist the State
Governments in their economic development through construction of roads
and bridges, Central Government provides 100 per cent grant for inter-state
connectivity and 50 per cent grant for projects of economic importance from

CRF.

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BORDER ROAD ORGANISATION

Raised in May 1960 for development of roads of strategic importance in the
northern and north-eastern border areas, the Border Roads Organisation (BRO)
has completed 44 years of dedicated service to the nation. Today, the BRO is
a premier construction agency not only of roads but also of airfields, bridges,
buildings, hospitals and schools.
Since inception and up to March 2004, it has completed over 31,934 km
of formation works, surfaced 38,783 km of roads, executed Rs 3,474 crore
worth of permanent works and constructed permanent bridges totaling a
length of 20,095 running metres. In addition to the national highways and
permanent bridge works, the BRO is also doing commendable work in the
field of snow clearance on 64 roads for a length of 2,618 km in high altitudl'
areas both during summer and winter. The BRO was also engaged for
construction of airfields, building complexes, prestigious accommodation
projects and allied hydroelectric projects.
A prestigious project of development of the 160 km-long Tamu-KalemyoKalewa road in Myanmar to intermediate lane width specification was taken
up in 1997 and was completed and handed over to Myanmar PWD in
February 2001. The BRO has since been entrusted with its maintenance also.
Currently BRO is executing works in various States including, inter-alia,
the following: Four-laning of the stretch of NH-1A from Pathankot to Srinagar
as part of the country's North South Expressway under the NHDP; nine km
long Rohtang Tunnel, related access roads to its portals and a 292 km long
alternate route to Leh whose work commencement was inaugurated by the
then Prime Minister in May 2002; works on development and maintenance of
stretches of different National Highways and Bypasses. Besides the above, the
BRO has also been actively engaged in construction of roads for the NorthEastern Council (NEC) for improving inter-state connectivity and the
infrastructure. Up to March 2004, it has completed formation of 3,127 km
(cumulative) and surfacing of 2,738 km for the NEe. Another important work
of the BRO is the construction of Indo-Bangladesh Border (IBB) Roads and
fencing the border (Phase-I). The Ministry of Home Affairs has sponsored the
construction of roads and fencing along the borders with Bangladesh. The BRO
was entrusted with the work. The entire fencing of 198 km and 910 km of
roads has been completed. In addition to this, 526 km of road construction and
1,049 km of fencing have been entrusted to BRO, as Phase-II of this IBB
programme, with a proposed date of completion of 2006.
In addition to the above BRO is also executing following important
Agency Work: 1. Maharashtra Government Works: The constnlction of 842 km
long road network in the Naxalite prone districts of Gadchroli and Bhandara
in Maharashtra State are in advance stage of progress. These works are under
execution by Project Hirak. 2. Ministry of External Affairs works in Bhutan:
The BRO, through CZro~ect !'an!ii'is constructing and maintaining a large
road infrastructure an executing other prestigious projects in Bhutan.
3. Ministry of Defence Works: The construction of internal and approach roads

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681

for the Key Location Plan (KLP) for the Army Cantonment at Bhaderwah,
entrusted by MOD to the BRO in December 1998 is under execution by
_:'Project Beacon". 4. Projects funded by D'OONER through Non-Lapsable Pool
of Central Resources for the North East: The Planning Commission has
entrusted certain road construction projects to the BRO in some of the
backward districts of states of Nagaland, Assam, Tripura and Manipur, in
keeping with the PM's vision of an improved quality of life in these districts
by making available a dedicated road infrastructure development programme
through a committed organisation like BRO, with dedicated budgetary
support from the Non-Lapsable ,001 of central resources for the North-East
and Sikkim.
\

N;.. f;

SHIPPING

Shipping plays an important role in the transport sector of India's economy.

Approximately, 90 per cent of the country's trade volume (77 per cent in terms
of value) ~moved by sea. India has the largest merchant shipping fleet among
the developing countries and ranks 17th amongst the countries with the
largest cargo carrying fleet with 7.74 million G T and the average of the fleet
being 16 years. Indian maritime sector facilitates not only transportation of
national and international cargoes but also provides a variety of other services
such as cargo handling services, shipbuilding and ship repairing, freight
forwarding, light house facilities and training of marine personnel, etc. As on
31 July 2004 India had a total 659 ships with 7.74 million G T and 12.84 million
DWT.
The salient features of India's shipping policy are the promotion of
national shipping to increase self-reliance in the carriage of the country's
overseas trade and protection of stakeholders' interest in EXIM trade. India's
national flag-ships provide an essential means of transport for crude oil and
petroleum product imports. National shipping makes significant contribution
to the foreign exchange earnings of the country. The forex earnings/savings
of Indian ships by way of gross freight and charter hire earnings during the
year 2001-2002 have achieved a new record at over Rs 7,782.81 crore as against
Rs 7,186.98 crore during 2000-2001, which shows an increase of over 3.98 per
cent.
Indian Fleet: India's shipping fleet as on 31 July 2004, consist of 211 overseas
vessels with 6.60 million GRT and 11.39 million DWT and 441 coastal vessels
with 0.80 million GRT and 0.8,6 million DWT. There has been slight increase
in the tonnage during the year 2003-Cl104.
Indian shipping tonnage, which was only 1.92 lakh 'GRT on the eve
of independence, now stands at 7.74 million GRT. The tonnage position as on
31 March 2003 was 617 ships with 6.17 million GRT and 10.06 million OWT.
There has been an increase of 5.85 per cent in the total CRT between the year
2002-2003 and 2003-2004.
During 2001-2002, the total quantity of overseas cargo handled at various
Indian ports was to the tune of 274.76 M.T. It is reported that the share of
overseas cargo carried by Indian flag vessels varied in respect of different

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India 2005

categories of cargo. The country's overseas cargo carried by this fleet during
the period was only around 17 per cent out of this coastal cargo represented
about 108 MT, comprising mainly of coal, crude oil and petroleum products.
The share of Indian flag vessels in carrying costal cargo during 2001-2002 was
about 86 per cent. It is estimated that the present fleet strength is not adequate
to support the trade flow in the shipping sector. Therefore, there is an
imperative need for augmenting the tonnage capacity in the coastal sector to
meet the projection, which was fixed at 356 MT for 2001-2002, 537 MT for
2005-2006 and 1273 MT during 2020.
Coastal Shipping: Coastal shipping is an energy efficient, environmentalfriendly and economical mode of transport in the Indian transport network
and a crucial component for the development of domestic industry and trade.
India, with her 7,516.6 km long coastline studded with 13 major ports and 184
non-major ports providing congenial and favourable conditions for the
development of this alternate mode of transport.
India's Coastal Shipping Tonnage as on 31 July 2004 was 441 vessels
with 0.80 million GRT and 0.86 million DWT. Action plan for the development
of coastal shipping is already on the anvil with the Central Government. With
a view to promote coastal shipping and sailing vessel industry, the home trade
vessels and sailing vessels have been exempted from the payment of
lighthouse dues under the provisions of the Lighthouse Act, 1927. Meanwhile,
a study has already been completed by the Tata Consultancy Services (TCS)
to assess the potential of coastal shipping and the role of minor ports keeping
in view the feasibility of routes and the supporting environment needed for
its development. Its report has also been accepted in principle, by Central
Government.
AIDS to Navigation : Since Independence, India has made rapid growth in
Aids to Marine Navigation. From 17 Lighthouses prior to Independence, the
prescnt strength of Aids to Navigation consists of 164 Lighthouses, one
Lightship, nine Radio Beacons, six Loran 'C' Chain Stations, 30 Racons, 21
Decp Sea Lighted Buoys and 22 installations under Differential Global
Positioning System (DGPS). To cater to the needs of light stations in the islands
and for maintaining the buoys, the Directorate General of Lighthouses and
Lightships is maintaining three launches, one mechanised boat and two large
ocean going vessels, M.V. Sagardecp-II and M.V. Pradeep. A major scheme
titled Coastal Vessel Traffic Service in the Gulf of Kachchh has been sanctioned
in January 2002 at an estimated cost of Rs 165 crore. The project i!> likely to
be completed within four years from the date of sanction and will provide
efficient navigational services in this area.

Maritime 1J:aining : The Director General of Shipping is responSible for

creation of the trained manpower required for the merchant navy fleet of the
country. This national obligation is being met through the Government
training institutes and a number of other approved training institutes in
private sector. The importance of the organised training was recognised in the
year 1927 when the Training Ship "Dufferin" was established.

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683

The four training institutes, which were established by the Government

are: Training Ship 'Chanakya' conducts (i) Three-year B.Sc. degree course in
Nautical Sciences under the University of Mumbai, and (ii) Pre-Sea training
course for Deck Cadets. Marine Engineering and Research Institute (MERI),
Kolkata, conducts four-years degree course in Marine Engineering under
Jadhavpur University. Marine Engineering and Research Institute (MERI),
Mumbai, - conducts (i) one-year training in Marine Engineering course for
graduate Mechanical Engineers and (ii) Three-year B.Sc. degree course in
Maritime Sciences (polyvalent degree) w1der the UniverSity of Mumbai. LBS
College of Advance Maritime Studies and Research, Mumbai, conducts almost
36 post-sea training courses for serving Marine Officers.
In addition to the above, there are more than 130 training institutes in
the private sector approved by tl1' Director General of Shipping, imparting
pre-sea and post-sea training in various disciplines.
In the wake of coming into force of the STCW 95 and the Regulations
thereunder stipulated by the International Maritime Organisation in 1997, the
m(lritime training in India has undergone (I se(l change. New courses are being
introduced. In order to meet the competition prevailing elsewhere in the
world, the training requires to satisfy the international standards stipulated
under STCW 95. With this in view, the Governmpnt (IS a first step towards the

formation of a Maritime University has formed the Indian Institute

of
Maritime Studies and registtred under the Societies' Registration Act, 1860
and has brought all the four Government Training Institutes under its control.
The Government is considering the formation of a full-fledged Maritime
University as well.
North South Transport Corridor: An inter-governmental Agreement on
International 'North South' Transport Corridor amongst the Government of
Republic of India, Russian Federation and Islamic Republic of Iran was signed
on 12 September 2000 in St. Petersburg. The agreement, ratified by all the
Parties, came into force on 16 May 2002. The Agreement will be valid for a
period of 10 years. The provisions of this Agreement will regulate international
transport and transit of goods and passengers through the national territories
of the parties to this agreement carried out by all modes of transport or
through combined transport along the routes determined by the Competent
Authorities of the respective parties. The new route would result in savings
on time and costs for the con<;erned countries.
To regulate the issues relating to implementation and aI?plication of the
provisions of this Agreement, a Coordination Council of the International
'North-South' Transport Corridor has since been established. The Council
adopted the Statute of the Coordiwltion Council of 'North-South' Transport
Corridor in its first meeting and also recommended setting up of two Expert
Groups on (i) Commercial and Operational Matters; and (ii) Documentation,
Customs and Related Issues to consider and recommend solutions to the issues
relating to commercial and operational matters and documentation, customs
matters and related issues.

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India 2005

SHIPPING CORPORATION OF INDIA LIMITED

The Shipping Corporation of India Ltd (SCI) was formed on 2 October 1961.
The present authorised capital of the Company is Rs 450 crore and paid up
capital is Rs 282.30 crore. The status of SCI has been changed from a private
limited comp~ to Public limited from 18 September 1992. The SCI has been
conferrect'M!_I\iRCl~ status by the Government of India on 24 February 2000.
At present, the Government is holding 80.1?..g.~nt of the share capital and
the balance is held by financial institutiOns, public and others (NRIs, Corporate
Bodies, etc.).
The share of SCI in total Indian tonnage in terms of GT is about 39 per
cent and in DWT terms about 40 per cent. The SCI's present fleet stands at
86 vessels aggregating about 2.7 million GT (4.6 million DWT) comprising of
general cargo vessels, cellular container vessels, crude oil tankers (including
combination carriers), product tankers, bulk carriers, LPG/ Ammonia carriers,
acid carriers, passenger vessels and offshore supply vessels. The SCI provided
the services for Liner and Passenger Services, Bulk Carrier and Tanker Service
and Offshore services and specialised services, etc.
LNG has been identified as the future fuel for India's power plants and
as a feedstock for Chemical/Petrochemical industry. The SCI has identified
carriage of Liquified Natural Gas (LNG) as one of its thrust and growth area
and has its presence in the Petronet LNG project.
Two JYC~. have been formed a Q viz., India LNG Transport Co. No.1
and No.z-ttd., for construction, ownefship and operation of two LNG tankers
which are on time charter to Petronet LNG Ltd., for a period of about 24 years.
The SCI and Mitsui OSK Line (MOL) have a 29.08 per cent stake each in the
consortium amounting to an equity participation of US $ 27.626 million each
with the remaining 41.84 being shared by NYK (17.89 per cent) and Kline
(8.95 per cent) and Qatar Shipping Co. (15 per cent). The TIme Charter
Agreement provides for transfer of know-how to SCI within five years of
registration of the tankers after which SCI would manage the operations of
the tankers and its shareholding would go up to 42.5 per cent. The Agreement
also provides that the tankers' flag be changed to Indian flag subject to zero
level of tax for LNG tankers declared by the Government of India based on
tonnage tax regime applied in other countries. This is required to be done
within one year of such notification, provided the transfer of know-how has
taken place. The first ship (Disha) was delivered on 9 January 2004 while the
second ship (Raahee) on contractual basis would be delivered on 16 December
2004. The first LNG cargo for the project was carried in January 2004 by the
first tanker which operates regulatly between Ras Laffan, Qatar and Dahej
Terminal of Petronet LNG Ltd.
The SCI also mans and manages 40 vessels aggregating to 0.12 million
GT (0.06 million DWT) on behalf of Andaman and Nicobar Islands
Administration, Union Territory of Lakshadweep Administration, Oil and
Natural Gas Corporation, Geological Survey of India (Ministry of Steel and
Mines) and Department of Ocean Development. Besides, SCI also operates

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685

vessels on bare boat lease and charler as required from time to time to cater
to the national need.
The SCI has maintained a consistent track record of profitability and
dividend. The turnover for the financial year 2003-04 was Rs 2,443.4 crore and
the net profit after tax was Rs 626.99 crore. The Company had also paid a
dividend of 170 per cent for the year 2003-04. The SCI is a pioneer in India
with regard to : a) STS operations for crude, POL and dry bulk cargoes;
b) Cryogenic operations (LNG/LPG); c) Joint ventures and other type of
collaborations jn shipping; and d) shipping consii~ service.
The training of personnel acquired a new dimension with the setting up
of a Maritime Training Institute (MTI) at Pow ai, Mumbai. The MTI has
exlensive modern training facilities so as to ensure that the skill and expertise
of the SCI personnel is at international levels. Since June 1988, all the SCI inhouse courses are being conducted at the MTl. It is recognised as a branch
of the World Maritime University, Malmo (Sweden) for conducting International
Maritime Organisation (IMO) seminars and short specialised courses in India
for the countries of South East Asia and Pacific region. MTl is also recognised
as an UNCTAD training centre for shipping management courses. MTI has
been awarded the coveted Golden Peacock Award for excellence in Training.

COCHIN SHIPYARD LIMITED

Cochin Shipyard Limited (CSL) was incorporated on 29 March 1972 as a
Company fully owned by the Government. The Yard is designed to construct
ships of size upto 1,10,000 DWT and repair ships up to 1,25,000 DWT. The
Yard has constructed and delivered nine large ships (five Bulk Carriers and
four Crude Oil Tankers). Recently, the Yard has delivered the Cargo Launch
Vessel, the first export order to its owner National Petroleum Construction
Company, Abu Dhabi in time. It has also constructed 36 vessels. At present,
the Yard has orders for nine Tug Boats from M/s A.A. Turki Corporation for
Trading and Contracting, Saudi Arabia and six Bulk Carriers of 30,000 DWT
each from Mis. Clipper Group Management Ltd., Bahamas. Letter of Intent
for construction of Air-Defence Ships (ADS) for Indian Navy has also been
received. The Yard has so far repaired more than 1,000 ships of various types.
The Ship-repair turnover for the year 2003-04 was Rs 180 crore. Cochin
Shipyard is the only Shipyard with ISO-9001 accreditation for shipbuilding,
ship-repair and marine engineering training.

HINDUSTAN SHIPYARD LIMITED

Hindustan Shipyard Limited (HSL), Visakhapatnam was set-up in 1941 in the
private sector and was taken over by the Government in 1952. In 1962, the
shipyard became a central public sector enterprise. The shipbuilding capacity
of the yard is 3.5 pioneer class vess~ls of 21,500 DWT each. The maximum size
of the vessel that could be built is 50,000 DWT. The yard has slipways, covered
building dock, wet basin and outfit jetty. HSL is the first shipbuilding yard
in the country which was awarded 150:9001 certification by Uoyds Register
of Quality Assurance, London for international standard of quality assuran~e.
For ship repairs, the yard has facilities such as modern dry dock, wet basm,

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India 200s

repair shops, etc., and it can undertake repairs of submarine, tankers and ships
up to 70,000 DWT. HSL has an exclusive offshore platform construction yard
capable of constructing two platforms per annum. Other infrastructure
facilities include engineering shops, cranes and load-out facilities. HSL has so
far constructed and delivered 123 vessels of various types. The present order
book position of the yard is of the value of around Rs 21,855.53 lakh. HSL has
ohtained a Letter of Intent for two 30,000 DWT Dry Bulk Carriers from
Mis Goodearth Maritime Limited, Chennai.
HOOGHLY DOCK AND PORT ENGINEERS LIMITED
Hooghly Dock and Port Engineers Limited (HDPEL), Kolkata became a
Central Public Sector Undertaking in 1984. The Company has twu working
units in Howrah District of West Bengal, one at Salkia and another at
Nazirgunge. The installed capacity in shipbuilding is 1,100 tonnes per annum
and in ship repairs 125 ships per annum. Apart from a dry dock and a jetty,
it has six shipways . The yard is capable of constructing various types of ships
(including passenger ships) and other vessels such as dredgers, tugs, floating
dry docks, fishing trawlers, supply-cum-support vessels, multi-purpose harbour
vl'sscls, light house tt'nder vessels, barges mooring launches, etc. and
undertaking repairs of different types of vessels. HDPEL presently has orders
for construction of one 400-Passcnger-cum-l00 tonne Cargo Vessel of A&N
Island Administration, 20-tonne Multipurpose Tug of DCI, two 300 tonne
General Cargo Vessels of IWAI, 300 MT Oil Tanker Cargo Vessel of IWAI, 300
MT Container Cargo Vessel of IWAI and Surface Dredger of IWAI, etc.
INLAND WATER TRANSPORT
India has got about 14,500 km of navigable waterways which comprise of
rivers, canals, backwaters, creeks, etc. About 18 million tonnes of cargo is
being moved annually by Inland Water Transport (IWT), a fuel-efficient and
environment-friendly mode. Its operations are currently restricted to a few
stretches in the Ganga-Bhagirathi-Hooghly Rivers, the Brahmaputra, the Barak
River, the rivers in Goa, the backwaters in Kerala and the deltaic regions of
the Godavari-Krishna rivers. Besides the organised operations by mechanised
vessels, country boats of various capacities also operate in various rivers and
canals.
INLAND WATERWAYS AUTHORITY OF INDIA
The Inland Waterways Authority of India (IWAI) came into existence on 27
October 1986 for development and regulation of inland waterways in the
country. The Authority undertakes various schemes for development of IWT
related infrastructure on National Waterways. The head office of the Authority
is located at Noida. The Authority also has its regional offices at Patna,
Kolkata, Guwahati and Koehi and sub-offices at Allahabad, Varanasi, Bhagalpur,
Farakka and Kollam.
National Waterways: The Ganga between Allahabad - Haldia (1620 km) the
Sadiya-Dhubri stretch of river Brahmaputra (891 km) and the KollamKottapuram stretch of West Coast Canal along with Champakara and

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687

Udyogmandal Canals (205 km) in Kerala have so far been declared as National
Waterways and are being developed for navigation by Inland Waterways
Authority of India.

Inland Vessel Building Subsidy Scheme : In order to reduce the capital

burden on the IWT operators, and to enhance their profitability, an inland
vessel building subsidy scheme has been introduced from 1 April 2002. The
subsidy would be applicable to both cargo and passenger inland vessels meant
for operation in National Waterways, Sunderbans waterways or IndoBangladesh Protocol routes, and would be 30 per cent of the ex-factory price
of the inland vessel. It will be available for vessels acquired by an Indian IWT
entrepreneur from a shipyard in India.
External Funding: A Technical Assistance (TA) grant of US $ 1.125 million
has been approved by ADB. Under this TA, the ADB appointed a Canadian
Consultant for updating the studies and preparation of projects of prospective
ADB funding. The study progressed during 2003-04 and phase-I of the study
has been completed.
Centrally Sponsored Scheme : Under the revised Centrally-Sponsored
Scheme, 100 per cent grant is now available for the projects of north-eastern
states including Sikkim and 90 per cent grant for other States. During 200304, Central assistance amounting to Rs 9.85 crore was given to the States.
National Inland Navigation Institute: An institute of national importance,
viz, National Inland Navigation Institute (NINI), Patna, became functional
with effect from February 2004. This is the first institute of its kind in the
country.
Central Inland Water Transport Corporation : The Central Inland Water
Transport Corporation (CIWTC) with its headquarters at Kolkata was set up
as a public undertaking in May 1967. The CIWTC is mainly engaged in
transportation of goods by inland waterways in the Ganga-BhagirathiHooghly, Sunderbans and the Brahmaputra rivers. They are operating regular
cargo services between Kolkata and Pandu (near Guwahati), between Kolkata
and Karimganj (Assam), Kolkata-Bangladesh and between Haldia and Patna.
Protocol on Inland Water Transit and Trade: The Indo-Bangladesh Protocol
on Inland Water Transit and Trade which came into operation in November
1972 has been renewed from time to time. This protocol was last renewed on
28 October 1999. The term of th~ Protocol is being extended from time to time.
This Protocol facilitates operation of both Indian and Bangladesh vessels on
the following inter-country and transit routes. 1. Kolkata-Pandu, 2. KolkataKarimganj, 3. Rajshahi-Dhulian, 4. Pandu-Karimganj.
CHARTERING
The Ch~rtering Wing (TRANSCHART) of the Ministry of Shipping is
responsible to monitor the existing poliCY of Government for finalisation of all
import contracts on FOB (Free on Board)/FAS (Free Alongside Ship) basis in
respect of Government owned I controlled cargo on behalf of Central
Government Departments and State Government Departments, Public Sector

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India 2005

Undertakings under them. The shipping arrangements under FOB imports are
centralised in the Chartering Wing of Ministry of Shipping. The services of the
Chartering Wing is also available to the private sector.
During the year 2003-04 Chartering Wing made the shipping arrangements
for ocean transportation of 643.88 lakh MT of Government cargo mainly crude
oil/petroleum products, coking coal and fertilizers, etc.) as against the 512.25
lakh MT during the year 2002-03, i.e., an increase of about 25 per cent.

PORTS
India has about 5,600 km of main coastline serviced by 12 major ports and
about 185 other ports. The major ports are under the purview of the Central
Government, while other ports (popularly termed as minor/intermediate
ports) come under the jurisdiction of the respective State Governments.
Mumbai, Jawaharlal Nehru at Nhava Sheva, Kandla, Mormugao, New
Mangalore and Cochin on the west coast and Kolkata/Haldia, Paradip,
Visakhapatnam, Chennai, Ennore and Tuticorin on east coast are the major
ports.
The capacity of Indian ports increased from 20 million tonnl'S (MT) of
cargo handling in 1951 to 390 MT as on 31 March 2004. At the beginning of
the Tenth Plan, the capacity of major ports was about 344 MT. It is proposed
to be increased to 470 MT by the end of the Tenth Plan. Since 2001-02, the
aggregate capacity in the major ports is in excess of the traffic handled.
Consequently, capacity is no longer a constraint in major ports. As a result,
there has been a substantial improvement in their efficiency as borne out by
the reduction in waiting time for the ships.
The number of cargo vessels handled at major ports is about 16,000 per
annum. The aggregate cargo handled at major ports during 2003-04 was
approximately 345 million tonnes. The traffic handled by major ports pertain
to liquid cargo (39 per cent) followed by dry cargo (40 per cent) and the
remaining to general cargo. Container traffic handled at ports is fast increasing
and around 3.90 million TEUs were handled in 2003-04 at all major ports.
About 70 per cent of the cargo handled normally at these ports is for overseas
trade, of which around 40 per cent constitute exports.
PRIVATE SECTOR PARTICIPATION IN PORTS
In order to improve efficiency, productivity and quality of services as well as
to bring in competitiveness in port services, the port sector has been thrown,
open to private sector participation. This is in consonance with the general
policy of liberalisation/ globalisation of economy of the Government.
Various areas of port functioning, such as leasing out existing assets of
the port, construction/creation of additional assets, leasing of equipment for
port handling and leasing of floating crafts from the private sector, pilotage
and captive facilities for port based industries have been identified for
participation/investment by the private sector.
Joint-venture formations between major port and foreign port, between

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major port and minor port(s) without tender, as well as between major port
and company(ies) following tender route are permitted by the Government.
The measure is aimed at facilitating port trusts to attract new technology,
introduce better managerial process, expedite implementation of schemes,
foster strategic alliance with minor ports for creation of optimal port
infrastructure and enhance confidence of private sector in funding ports. So
far, 13 private sector projects have been operationalised having an investment
of Rs 2,453 crore and capacity addition of 45 MTPA. There are 24 other projects
having investment of Rs 5,407 crore and capacity addition of around 84 MTPA
under various stages of evaluation and implementation.
TENTH FIVE YEAR PLAN FOR THE PORT SECTOR
During the Tenth Five Year Plan 2002-07, it is proposed to enhance capacity
and improve productivity in major ports with focus on measures aimed at
modernisation, rendering cost-effective services, enhancement of service
quality, commercialisation through corporatisation and increased private
sector participation. The Tenth Plan outlay for the Ports Sector is Rs. 5,418
crore for schemes/projects to be implemented from public funds. In addition,
schemes/projects, at an estimated cost of Rs. 17,257 crore are also expected
to be taken up for execution through private sector investment.
So far 13 Private Sector Projects have been operationalsed having an
investment of Rs 2,453 crore and capacity addition of 45 MTPA. There are 24
other projects having investment of Rs 5,407 crore and capacity addition of 84
MTPA which are under various stages of evaluation and implementation.
'/

'I'

CIVIL AVIATION
ORGANISATION
The Civil Aviation sector has three main functional divisions-regulatory,
infrastructural and operational. On the operational side, Indian Airlines,
Alliance Air (subsidiary of Indian Airlines), private scheduled airlines and air
taxis provide domestic air services while Air India provides International air
services. Pawan Hans renamed Pawan Hans Helicopters Ltd., provides
helicopter services to ONGe in its offshore operations and to inaccessible areas
and difficult terrains. Indian Airlines operations also extend to the neighboring
countries, South East Asia and Middle East. Recently, two private scheduled
airlines i.e., M/s Sahara Airlines and Jet Airways have been permitted to
operate to Sri Lanka and Nepal. India has been a member of International
Civil Aviation Organisation (ICAO) and is also on the Cound~ of ICAO since
its inception.
The Government has ended the monopoly of Indian Airlines and Air
India on the scheduled operations by repealing the Air Corporation Act, 1953.
There are at present four private scheduled airlines operating on the domestic
network rendering the passengers a wide choice of flights. Apart from this,
at present 37 companies are holding nonscheduled air taxi operators permit.
The policy on domestic air transport service was approved in April 1997
according to which barriers to entry and exit from this sector have been

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India 2005

removed; choice of aircraft type and size has been left to the operator, entry
of serious entrepreneurs only has been ensured, and equity from foreign
airlines, directly or indirectly, in this sector has been prohibited. The existing
policy on air taxi services providing for a route dispersal plan to ensure
operation of a minimum number of services in the North-Eastern Region,
Andaman and Nicobar Islands, Lakshadweep and Jammu and Kashmir has
been retained. An exercise has been undertaken to formulate a new civil
aviation policy which gives more emphasis to privatisation in civil aviation
sector.
MINISTRY OF CIVIL AVIATION
The Ministry of Civil Aviation is responsible for the formulation of national
policies and programmes for development and regulation of civil aviation and
for devising and implementing schemes for orderly growth and expansion
of civil air transport. Its functions also extend to overseeing the provision of
airport facilities, air traffic services, aviation safety and security and carriage
of passengers and goods by air. The Ministry is also administratively
responsible for Commission of Railway Safety, a statutory body set up under
the Railway's Act. Detailed information on the Ministry and all organisations/
undertakings under its administrative control are available on Ministry's
website (www.civilaviation.nic.in).
CARGO
In order to help the Indian exporters and make their exports more competitive,
the Government had introduced in April 1999 an 'open sky policy' for cargo.
Under this policy foreign airlines or association of exporters can bring any
freighters to the country for upliftment of cargo. The Government has also
permitted market forces to determine cargo tariff, with lATA rates as the floor
rates.
AIR SERVICES
As on 31 May 2004, India has bilateral Air Services Agreement with 100
countries. During the period under reference, Private Domestic Scheduled
Operators (POSO) were permitted to commence operations to SAARC
countries.
TOURIST CHARI'ER FLIGHTS
The Tourist charter guidelines have been further liberalised. Now Indian
Passport holders are also permitted to travel by tourist charter fights under
Inclusive Tourist Package (ITP). The ITP charter flights can operate to any
airport in India without any limitations on frequency of flights or size of the
aircraft provided customs and immigration facilities are available. The ITP
charter flights from India taking outbound tourists are also now permitted,
provided the tour operator organising the outbound chartcr will have to
organise inbound charters with 2:1 tourist ratio between inbound and
outbound operations. The provision of minimum amount to be spent by the

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foreign tourist has been abolished. During the year 2003-04, 536 tourist charter
flights were operated bringing 1,23,134 tourists in India.

DIRECTORATE GENERAL OF CIVIL AVIATION

The Directorate General of Civil Aviation (DGCA) is the regulatory body in
the field of civil aviation. It is responsible for (i) Regulation of air transport
services to/from and within India in accordance with the provisions of the
Aircraft Rules, 1937; (ii) licensing of pilots, aircraft maintenance engineers and
monitoring of flight crew standards; (iii) registration of civil aircraft; (iv) coordination of the work relating to International Civil Aviation Organisation;
(v) investigation of minor air accidents and incidents and rendering technical
assistance to the Courts/Committees of Inquiry appointed by the Government;
(vi) supervision of training activities of Flying/Gliding Clubs; (vii) licensing
of aerodromes and air carriers; (viii) rendering advice to the Government on
matters pertaining to air transport including bilateral air services agreements
with foreign countries; (ix) development of light aircraft, gliders and winches;
(x) laying down airworthiness to such aircraft; (xi) processing amendments
to the Aircraft Act, 1934 and the Aircraft Rules 1937, and other Acts relating
to aviation, with a view to implementing in India the provisions of the Chicago
Convention of Annexes thereto and other international conventions relating
to aviation; and (xii) type certification of aircraft.

RESEARCH AND DEVELOPMENT

Research and Development Directorate of DGCA is responsible for: (1) Type
certification of civil aircraft, engines, propellers and type approval of
instruments, avionics and equipment; (2) approval of modifications and repair
scheme of civil aircraft; (3) development testing of indigenous aircraft
materials, parts and equipments; (4) Scientific laboratory investigation of inservice failed aircraft/power plant/structural parts and components;
(5) airworthiness cum operational monitoring of recording of cockpit voice
recorders and flight data recorders of aircraft operated by various operators
and providing assistance to inquiry commissions on accidents to decode the
recorders to establish cause of accident; (6) quality control monitoring and
testing of fuel/oil samples including those from aircraft used by VIP;
(7) economics of aircraft operation and performance evaluation; (8) development
of airworthiness/design codes/CARs, etc.; (9) approval of design organisations
involved in designing aircraft/components and their renewals; (10) human
resource development on airworthiness engineering.

BUREAU OF CIVIL AVIATION SECURITY

The Bureau of Civil Aviation Security (BCAS) is headed by an Indian Police
Service Officer of the rank of Director General of Police, designated as
Commissioner of Security, Civil Aviation (COSCA). The BCAS has its
headquarters in New Delhi and four Regional Offices loca~ed in Delhi,
Kolkata, Mumbai and Chennai airports, each under a ReglOnal Deputy
Commissioner of Security (CA).
The Commissioner of Security (Civil Aviation), BCAS, has been designated
as the Appropriate Authority for Civil Aviation Security in India. Thus, the

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India 2005

Commissioner of Security (Civil Aviation) defines and allocates the tasks for
implementation of the National Civil Aviation Security Programme amongst
agencies in the country, airport administration and others concerned. Requisite
mechanism has been established for coordinating activities among different
agencies entrusted with looking after various aspects of the National Civil
Aviation Security, so that the aim of aviation security to safeguard Civil
Aviation operations against acts of unlawful interference is achieved.
The BCAS is also responsible for issue of Airport Entry Permit (AEP)
to the personnel of organisations like Airlines, AAI, Airport Security Units/
ASG, etc., who have certain duties to perform at the airports.
The National Civil Aviation Security Training Programme is approved
by Government and being implemented by all agencies concerned to have
aviation staff better trained. The Bureau has a Training-cum-Demonstration
Centre, equipped with the latest audio-visual training aids, at its New Delhi
headquarters, where trainings on Aviation Security (AYSEC) are organised for
the staff of airport operators, airlines operators, air taxi operators and Airport
Security Units/Aviation Security Group (ASG) of CISF, Police officers of the
rank of Sub-Inspectors and above.
AIRPORTS AUTHORITY OF INDIA
The Airports Authority of India (AAI) was formed on 1 April 1995 and is
responsible for: (i) providing safe, efficient Air Traffic Services, communication
and Navigational Aids at airports, (ii) plan, develop, construct and maintain
runway, taxiways, apron, terminal building, etc., (iii) provide Air Safety
Services and (iv) arrange search and rescue facilities in coordination with other
agencies and other functions as described in the AAI Act. The Authority
manages 126 airports including 11 international, 86 domestic airports and 29
civil enclaves at defence airfields. It controls and manages the entire Indian
space extending beyond the territorial limits of the country, as accepted by
the International Civil Aviation Organisation (lCAO).
The Authority has a Civil Aviation Training College at Allahabad for
imparting training on various operational areas like Air Traffic Control,
Radars, Communication, etc. The authority maintains the National Institute
of Aviation Management and Research (NIAMAR) at Delhi for imparting
various aviation management training programmes and refresher courses. In
addition there is a Fire Service Training School at Narayanpur near Kolkata
and the Fire Training Centre at New Delhi for imparting training on fire
fighting rescue services.

AIRPORTS RESTRUCTURING
The Government has approved the restructuring of Delhi and Mumbai
airports by adopting the Joint Venture route.

Bangalore International Airport : A greenfield airport of Devanahalli near

Bangalore is being implemented on build, own and operate (BOO) basis with
public private participation.
Hyderabad International Airport: The Government of Andhra Pradesh have

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693

se~ected a con.sortium led by M/ s GMR Infrastructure limited with Malaysian

AIrport Holdmg Berhard (MAHB) as the Developer for greenfield airport at
Shamshabad near Hyderabad.

AIR INDIA
Air India owns a fleet ot 18 aircraft consisting of four B747-200, two 8747300 (Combi), six B747-400 and eight A310-300. In addition, Air India has
inducted one B747-400 and eleven A310-300 aircraft on dry lease basis, taking
the total number of aircraft in Air India's fleet to 32.
Air India operates 189 flights per week serving 41 stations (28 international
and 13 domestic). Under various code share, block space agreements, joint
venture and free flow, Air India also serves a total of 22 international
destinations which include 12 destinations serviced by Air India with its own
flights. Ouring 2003-04, Air India carried approx. 3.8 million passengers on
its scheduled flights.

Presently Air India has two subsidiary companies viz., Hotl"l Corporation
of India (HCI) Ltd., and Air India Charters Ltd., (AICl). Air India has recently
formed the followin~ two subsidiary companies which will be operationalised
soon : (i) Air India Air Transport Services Ltd., (AIATSl)-in order to bring
the ramp and ground handling activities under one agency, to reduce cost
platform and to offer competitive rates to other airlines wi~h a view to
furthering the ground handling business of Air India. (ii) Air India Engineering
Services Ltd., (AIESl)-to carry out engineering and other allied activities for
Air India as well as for third parties/airlines.
Air India has recently decided to establish a low Cost Carrier (leC)
under the aegis of Air India Charters Ltd., to operate on the Gulf and Middle
East (except Saudi Arabia for the time being) and S.E.Asia with a view to
face the competition from other low cost carriers in the market.

INDIAN AIRUNES
Indian Airlines is the major domestic air carrier of the countr . Indian Airlines
operates to 58 domestic stations with 1 s w 0 y-owne subsi_q~~!~nce
Air. Indian Airlines aTso operate~Jnteroa..tiQri.~C~.!at!.Q.l}~Jndian Airlines
has a fleet of 62 aircraft.;:-4 A-300s, 41 A-320s, 11 B-737s, 4 ATR and 2Domier
indud~g aIrcraft taken on lease. All B-737 and ATRs are operated by Alliance
Air.
PAWAN HANS HEUCOPTERS LIMITED
Since inception in 1985 the Pawan Hans Helicopters Ltd., (PHHl) has
operated number of helicopters by offering wide range of services to its clients
through a well balanced fleet of 31 helicopters consisting of Robinson (R-44),
Be1l206L4, Bell 407, Dauphin SA 365N, Dauphin AS365 N3 and Mi-l72. The
fleet strength would be enhanced with acquisition of two new Dauphin AS
365N3 helicopters on order. Its corporate office is located at Delh~ with
Regional Offices at Delhi and Mumbai.

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India 2005

Pawan Hans is a leader in providing offshore helicopter support in India.

Its helicopters fly under variety of conditions for carrying out ONGC tasks
at Bombay High and Hardy Exploration at Chennai. The company has a strong
presence in the North East having its helicopters deployed in the States of
Arunachal Pradesh, Meghalaya, Sikkim and Tripura. Regular passenger
services are being run under the aegis of these State Governments. A helicopter
has also been provided to Ministry of Home Affairs in North East for VIP
transportation.
The company has provided a helicopter each to Andaman and Nicobar
and Lakshadweep Islands for inter-Island helicopter services. It also meets the
requirements of Government of Punjab (VIP transportation) and PSUs such
as NHPC for carrying men and material for their project sites. Its helicopters
also carry out the tedious job of oil and gas pipeline surveillance for Oil India
and GAIL. During the season (May-June and Sept-Oct) the company also
operates regular passenger flights to Kedarnath Shrine from Augustmuni.
PHHL is an approved Maintenance Centre to carry out servicing of
Dauphin series helicopters and is part of Eurocopter Network of Authorised
Maintenance Centre (AMC) worldwide to carry out the above servicing in
India and other South East Asian Countries.
INDIRA GANDHI RASHTRIYA URAN AKADEMI
Indira Gandhi Rashtriya Uran Akademi located at Fursatganj (UP) is an
autonomous body under the Ministry of Civil Aviation. The Akademi was
established to provide an opportunity to trained pilots to achieve higher
standards in flying and ground training. The Akademi is equipped with
modern and sophisticated trainer aircraft, flight simulators, computer based
training system (CBT), own ATC, runway and airspace. Flying training is
conducted on Trinidad TB-20 single engine and King Air C-90A twin-engine
turbo prop executive class aircraft, fitted with modem instruments and
avionics. Commercial Pilots Licence courses with multi-engine sophisticated
aircraft endorsement and Instrument Rating are conducted on a regular basis.
The Akademi had trained 396 Fixed Wing Pilots and 20 Rotary pilots of Indian
and Foreign origin till now. Refresher training on simulators has also been
imparted to 146 individuals. It has trained 154 non-institutional pilots on
multi-engine endorsement.
IGRUA, pioneered the B.Sc. (Aviation) course for the first time in India
concurrently running with Commercial Pilots Licence (CPL) Course.

TOURISM
Tourism has emerged as an instrument for employment generation, poverty
alleviation and sustainable human development. Ouring 2002"()3, direct
employment in the tourism sector was estimated to be 20.44 million. Tourism
also promotes national integration and international understanding and gives
support to local handicrafts and cultural activities. Its conbibution to generation
of employment is very high.

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Tourism in India has grown substantially over the last three decades.
Foreign tourist arrivals in India recorded an increase of 15.3 per cent during
the year 2003 as compared to the year 2002. India's share in the world tourism
market during the year 2003 was 0.40 per cent. Foreign exchange earnings
during the year 2003 was Rs 16,429 crore. During the year 2003 about 308
million domestic tourist visits were made.

ORGANISATION
The organisations involved in the development of tourism at the Centre are
Department of Tourism, Indian Institute of Tourism and Travel Management,
National Council for Hotel Management and Catering Technology, India
Tourism Development Corporation Limited, Indian Institute of Skiing and
Mountaineering and National Institute of Water Sports.
The Department of Tourism is responsible for formulation and
implementation of policies and programmes for the development of tourism
within the country and for attracting foreign tourists to India by way of
developing tourism infrastructure, publicity and promotion, dissemination of
information, co-ordination and supervision of activities of various segments
of industry such as hotels, travel agencies, tour operators, etc. There are 21
field offices of the Department of Tourism in India and 13 in other countries
to undertake both developmental and promotional activities.

INDlA TOURISM DEVELOPMENT CORPORATION LIMITED

India Tourism Development Corporation Limited (ITOC) came into existence
in October 1966 with the sole objective of developing and expanding tourism
infrastructure in the country and thereby promoting India as a tourist
destination. Working on the philosophy of public sector, ITOC succeeded in
achieving its objectives by promoting the largest hotel chain in India and
providing all tourist servicps, i.e., Accommodation, Catering, Transport, inhouse Travel Agency, Duty Free Shopping, Entertainment, Publicity, etc.,
under a single window. It also offers consultancy services from concept to
commissioning in the tourism field both for private as well as public sector.
In pursuance of the disinvestment policy of the Government, 18 hotels
have so far been disillvested and five hotels are in the process of being
disinvested. Keeping in view the changed scenario, the Corporation has
SUitably been restructured so that it continues to fulfil its original mandate for
tourism development in the country. Besides consolidating and expanding its
eXisting business areas, ITOC has made diversification into new avenues!
innovative services like full-fledged Money Changer Services, Indian School
of Hospitality, Consultancy Services, etc. ITDC's present net work consists of
eight Ashok Group of Hotels, six Joint Venture Hotels, two Restaurants
(including One Airport Restaurant), 12 Transport Units and a travel agency,
one Tourist Service Station, 37 Duty Free Shops at International as well as
Domestic Custom Airports, one Tax Free Outlet, one Sound and Light Show
and four Catering Outlets. Besides, ITDC is also managing a hotel at Bharatpur
and a Tourist Complex at Kosi.

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India 2005

In order to achieve its original mandate of tourism development, lTOe

is entering into Memorandum of Understanding with various State
Governments/ State Tourism Corporations with a view to providing them
services in the field of development of projects/tourist sites, production of
collaterals, mounting of sound and light shows, marketing of accommodation
units providing training, etc.
ITDC today offers world class duty free shopping facilities to international
travellers at its 38 outlets, earning crucial foreign exchange for the country.
Keeping with the international trends, the concept of open walk-in-shops has
been adopted. Selling prices of merchandise have been rationalised leading
to a very competitive and almost cheapest duty free shopping in the region.
Brand expansion has been initiated to include world-class brands in all the
categories of merchandise.

in order to give fillip to the Domestic tourists, various packages are

being offered induding Ashok Family Package, Senior Citizen package,
Student Package, the Distinctly (dis)abled Package apart from offering special
packages during off season.
Ashok Travels and Tours (ATT) handles Domestic/international ticketing,
hotel reservation, conducted coach tour packages, transportation, Full Fledged
Mom~y Changing Operations, Event Management and Custom made itineraries.
With a view to ensure direct interaction with Foreign Tour Operators to
promote various services, ITDC participated in WTM held in London, ITB
Berlin, NATAS Trtavel Fair at Singapore, TAAI Annual Convention at Genting
(Malaysia) and MITT 2004 at Moscow
Ashok Institute of Hospitality and Tourism Management (AIH&TM) of
ITDC has been associated with the pioneering efforts in human resource
development for more than three decades. It is a major education provider
in the area of tourism and hospitality management. AIH & TM on its own
has initiated to conduct 18 months Craft/Certificate courses in the field of
culinary art, besides providing training to management trainess/ apprentices
and organising Executive Development programmes for the officials of ITDC.
The AIH &
is providing training consultancy through organising training
programmes for outside agencies and by providing hotel operation inputs to
the students of Air Hostess Academy at ITOC Delhi based hotels.

HOTEL MANAGEMENT AND FOOD CRAFT INSTITUTES

The Department of Tourism has accorded high priority to the development
of man-power to meet the growing needs of hotels, restaurants and other
hospitality based industries. For this purpose, 21 Institutes of Hotel
Management and Catering Technology and nine Food Crafts Institutes have
been set up in the country. These Institutes conduct Degree courses in the
fields of Hotel Management, Catering Technology and Applied Nutrition and
craft courses in food and beverage services, accommodation operation,
dietetics and hospital food service, food production and patisserie, house

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keeping, front office, etc. Food craft Institutes conduct craft courses for
duration ranging from six months to one year for operational staff.
INDIAN INSTITUTE OF TOURISM AND TRAVEL MANAGEMENT

The Indian Institute of Tourism and Travel Management (I1TTM) is an

autonomous body set up to provide education in Tourism and Travel
Management and to meet the demands of professionally trained personnel in
the tourism industry. The Institute also organises executive development
programme, seminars and workshops relating to tourism and travel
management. The Institute has also assisted several universities in running
courses at the post-graduate level.
NATIONAL INSTITUTE OF WATER SPORTS, GOA

The Department of Tourism set up the National Institute of Water Sports

(NIWS) as a training-cum-resource centre for the Water Sports Tourism
Industry at Goa. The National Institute of Water Sports conducts and facilitates
courses in various activities like sailing, scuba diving, skiing, etc. institute has
developed a special training programme for life guard of Water Park Industry.
The Institutes acts as nodal centres for water sports-oriented tourism activities
in the country.
HOTEL ACCOMMODATION

The hotel sector forms one of the most important segments of the tourism
industry with high potential for employment generation and foreign exchange
earnings. To give impetus to t~s sector, the government provides tax benefits
and other incentives. The Industrial Policy has now placed hotels and tourism
related activities as a priority industry. Foreign investment and collaborations
are now facilitated under the new economic policy. Automatic approval is
available for foreign direct investment up to 100 per cent, in hotel and tourism
sector.
CLASSIFICATION OF HOTELS UNDER THE STAR SYSTEM

The Department of Tourism classifies functioning hotels under the star system
into various categories from one to five-star deluxe and Heritage (Heritage,
Classic, Grand and Heritage Renaissance) and Apartment Hotels from three
star to five star deluxe. The Department also reclassifies these hotels after
every five years to ensure that requisite standards are maintained by them.
HERITAGE HOTElS

A Special category for classification of heritage hotels has been introduced to

cover functioning hotels in palaces, havelies, castles, forts and residences built
prior to 1950. As the traditional structure reflects the ambience and lifestyle
of the bygone era and is immensely popular with the tourists, the scheme is
aimed to bring such properties into the approved sector and this ensures that
such properties, landmarks of India's heritage are not lost due to decay and
disuse.

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India 2005

TRAVEL TRADE
The Department of Tourism extends support to the travel trade both national
and international and co-ordinates with various Central Departments and
State Governments. It also interacts with travel trade associations like Travel
Agents Association of India (TAAI), Indian Association of Tour Operators
(lATa), Indian Tourist Transport Operators Association, (ITTA), etc., and other
agencies like India Convention Promotion Bureau, Pacific Asia Travel
Association (PATA), etc.
The Department has a voluntary scheme of granting recognition to
Tour Operators, Travel Agents, Tourist Transport Operators, Adventure Tour
Operators with a view to encourage quality, standard, and service in the
respective categories to promote tourism in the country. The Travel Trade
Division also deals with all matters pertaining to the regulation and training
of tourist guides at Regional level.
CELEBRATION OF VARIOUS TOURISM EVENTS

A number of events have been organised for spreading awareness about India
for both, international and domestic tourists which include:- Bhramaputra
Darshan at Passi Ghat; Bauddha Mahotsava in Arunachal Pradesh, Jammu
and Kashmir as well as at Keylong,Himachal Pradesh, Sikkim and Orissa;
Sindhu Darshan at Leh; Mega folk festival "Virasa[" in Dehradun, (Uttaranchal);
Paragliding competition at Himachal Pradesh; World Tourism Day Celebration
on 27 September 2003 at Purana Quila, Delhi; Participation in the India
International Trade Fair at Pragati Maidan, New Delhi from 14 to 27
November 2003; National Tourism Day on 25 January 2004; Participation in
various events, fairs and festivals abroad, more important ones being WTM,
London and ITB Berlin.
NEW NATIONAL TOURISM POLICY 2002

A National Tourism Policy-2oo2 has been announced by the Government

which, apart from others, attempts to position India as a global brand to take
advantage of the burgeoning global travel and trade and the vast untapped
potential of India as a destination.
TOURISM IN 10TH FIVE YEAR PLAN

In order to further accelerate the development of tourism in the country, the

thrusts during the 10th Five Year Plan would be to:- Position tourism as a
major engine of economic growth; Harness the direct and multiplier effects
of tourism for employment generation, economic development and provide
impetus to rural tourism; Provide a major thrust to domestic tourism which
will act as a spring board for growth and expansion of international tourism;
Position India as a global brand to take advantage of the burgeoning global
travel and trade and the vast untapped potential of India as a destination;
Acknowledge the critical role of private sector with government working as
an active facilitator and catalyst; Create and develop integrated tourism
circuits based on India's unique civilisation, heritage and culture in partnership
with states, private sector and other agencies; and Ensure that the tourist to
India gets physically invigorated, mentally rejuvenated, culturally enriched,
spiritually elevated and "feels India within him".

26

Water Resources

WATER is a prime natural resource, a basic human need and a precious

national asset. Optimum development and efficient utilisation of water
resources, therefore, assumes great significance.
The Ministry of Water Resources lays down policies and programmes
for development and regulation of the country's water resources. It covers
sectoral planning, coordination, policy guidelines, technical examination and
t('chno-economic appraisal of projects, providing Central assistance to specific
projects, facilitation of external assistance and assistance in the resolution of
inter-state water disputes, policy formulation, planning and guidance in
respect of minor irrigation, comm,llld ,\I'e{) development and development of
ground water resources, etc.
The National Water Policy lays emphasis on integrated water resources
development and manC1gement for optimal and sustainable utilisation of the
available surface and groundwater. Creation of well-developed information
sysh'm, water conservation. and demand management have been recognised
in the Policy. Drinking water has been accorded the ~riority in allocation
of watl'r for diverse us('s. It integratps quantity and quaTIry aspects as well
as environmental considt'fations for water through adequate institutional
arrangements. The involvement of beneficiaries and stakeholders in the project
planning and participatory approach in water resources management have
bccn focused i.n the policy. The policy also envisages private sector participation
for providing facilities in water resources sector. Resettlement and rehabilitation
aspects of project affected persons have been emphasised in the policy. The
policy also recognised adequate training and research in water resources
s('ctor.

WATER RESOURCES POTENTIAL

The average annual water availability of the country is assessed a~ 1869 billio~_
cubic metres (BCM). Of this, total utilisable water resource is assessed as 1122
BeM, surface water 690 BCM and ground water as 432 BCM. The per capita
availability of water at national level has reduced from about ?,177
{cubi.c
metres) in 1951 to the estimated level of 1,820 m 3 in 2001 with variation in
water availability in different river basins.

m:.

IRRIGATION POTENTIAL
Expansion of Irrigation facilities, along with consolidation of the existing
systems, has been the main part of the strategy for increasing produc~itln of
food grains. With sustained and systematic development of irrigation, the
irrigation potential through major, medium and minor irrigation projects has
increased from 22.6 million hectare (mha) in 1951, when the process of
planning began in India, to about 93.95 mha at the end of ~inth pl~. Planwise irrigation potential created and utilised through maJor, medIUm and
minor irrigation projects in the country is given in table 26.1.

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700

TABLE 26.1 : PLAN-WISE POSITION OF IRRIGATION POTENTIAL

Plan Period

Potential
created
(Mha)

Potential
utilised
(Mha)

Pre-Plan period

22.60

22.60

First Plan (1951-56)

26.26

25.04

Second Plan (1956-61)

29.0H

27.BO

Third Plan (1961-66)

33.57

32.17

Annuill Plans (1966-69)

37.10

35.75

Fourth Plan (1969-74)

44.20

42.19

Fifth Plan (1974-78)

52.02

48.46

Annual Plans (1978-80)

56.61

52.64

Sixth Plan (1980-85)

65.22

5".B2

Seventh Plan (19B5-90)

76.53

68.51}

Annual Plans (1990-92)

B1.09

72.86

Eighth Plan (1992-97)

86.26

77.24

93.95(p)

80.06(p)

Ninth Plan (1997-2002)

MAJOR AND MEDIUM IRRIGATION PROJECTS

Irrigation Projects with a Culturable Command Area (CCA) between 2,000
and 10,000 hectares are classified as medium projects and those with CCA
of more than 10,000 hectares as major projects. The expenditure incurred on
major and medium projects and the irrigation potential created during the
various plan periods are given in table 26.2. At the beginning of the Tenth
Plan, there were 162 major projects with a spillover cost of Rs 1,40,%8.79 crore,
221 medium projects with a spillover cost of Rs 12,786 crore, and 85 Extension,
Renovation and Modernisation projects, with a spillover cost of Rs 21,256.50
crore.

Water Resources

701

TABLE 26.2 : MAJOR AND MEDIUM IRRIGATION PROJECTS

(EXPENDITURE INCURRED AND POTENTIAL CREATED)
Period

Outlay/
expenditure
(Rs crore)

Potential
created
(mha)

Cumulative
(mha)

Not available

9.70

9.70

First Plan (19.51-56)

376

2.50

12.20

Second Plan (1956-61)

3!lO

2.13

14.33

Third Plan (1961-66)

576

2.24

16.57

Annual Plans (1966-69)

43U

1.53

lIUO

Fourth Plan (1969-74)

1,242

2.60

20.70

Fifth Plan (1974-78)

2,51h

4.02

24.72

Annual Plans (1978-80)

2,07'J

1.89

26.61

Sixth Plan (1980-85)

7,369

1.09

27.70

Seventh Plan (191!5-90)

11,107

2.22

29.92

Annual Plans (1990-92)

5,459

0.82

30.74

Eighth Plan (1992-97)

21,669

2.22

32.96

Ninth Plan (1997-2002)

42,968

4.1O(p)

37.06(p)

Tenth Plan outlay (2002-2007)

71,213

9.92 (Target)

46.98

Pre-Plan pf.>riod

ACCELERATED IRRIGATION BENEFITS PROGRAMME

The Accelerated Irrigation Benefits Programme (AlBP) was launched during

1996-97 to give loan assistance to the states to help them complete some of
the incomplete major/medium irrigation projects which were in an advanced
stage of completion. The Surface Minor Irrigation Schemes of North-Eastern
States, Hilly States of Sikkim, Uttaranchal, Jammu and Kashmir, Himachal
Pradesh and KBI< Districts of Orissa have also been provided Central Loan
Assistance (CLA) under this programme since 1999-2000. The state governments
have been provided an amount of Rs 14,670 crore as eLA under AIBP since
inception of this programme up to March 2004 for 181 major/medium and
3,810 surface minor irrigation schemes. After commencement of this programme
28 major/medium and 2,174 surface minor irrigation schemes have been
completed. A Statement giving state-wise details of eLA released under AlBP
during 1996-97 to 2003-04 is given in table 26.3.

702
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Water Resources

703

HYDROLOGY PROJECT

The Hydrology Project Phase-I was implemented with International

Development Association (World Bank) assistance of SDR 75.1 million under
a credit agreement with Government of India. The credit effectiveness of the
project began on 20 December 1995 and the extended closing date was 31
December 2003. The Government of Netherlands provided a grant-in-aid of
Euro 14.64 million in the form of technical assistance under a bilateral IndoDutch agreement.
The Project was implemented by nine states viz., Andhra Pradesh,
Chattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra,
Orissa and Tamil Nadu and six Central agencies. The project enabled
establishment of a functional hydrological Information System (HIS) and an
improved institutional capacity of implementing agencies to build, operate
and utilise the HIS to the benefit of different user groups. The development
of data bases would support major aspects of National Water Policy,
particularly with regard to water allocation and planning and management
of water resources development at the nationaL state, basin and project level.
To realise the objective, the hydrology project supports ;- Upgrading and
expanding physical infrastructure for all aspects of data, viz., collection,
collation, processing, storage and dissemination; Provision of equipment and
material; Institutional strengthening including technical assistance and training;
and New buildings, laboratories, computer hardware and incremental operating
and maintenance costs.
The reimbursement received up to 6 May 2004 is 71.80 million SDR out
of total credit of 75.1 million SDR which is about 96 per cent.
WATER QUALITY ASSESSMENT AUTHORITY

The problem of pollution of national water resources has become a matter

of serious concern in India. To address the situation the Ministry of
Environment and Forests (MOEF) issued notification on 22 June 2001 to
constitute the "Water Quality Assessment Authority (WQAA)" with effect from
29 May 2ool.
The Ministry of Water Resources is assisting the WQAA in carrying out
and coordinating its functions. The Ministry of Environment and Forests, has
requested Chief Secretaries of all the States/UTs in the country to constitute
the State Level Water Quality Review Committee (WQRC) to improve coordination amongst the Central and State agencies in the respective States/
UTs, assess the quality of water bodies and identify areas requiring immediate
actions for the quality of the Water Resources. So far, WQRCs have been
constituted in 31 States/VTs.
The Ministry of Environment and Forests has constituted Expert Group
on Water Quality Monitoring Systems with a view to unifying and streamlining
the widely varying Water Quality Monitoring Systems being following at
present by various Central and State agencies. The Expert Group has
submitted the report after reviewing the present status of Surface Water and
Ground Water Monitoring Programmes of the concerned Central and State

704

India 2005

agencies and the report has been discussed by WQAA. The report will be
circulated to all states for implementing its recommendations.
COMMAND AREA DEVELOPMENT PROGRAMME
The Centrally-sponsored Command Area Development (CAD) Programme
was launched in 1974-75, with the main objectives of improving the utilisation
of created irrigation potential and optimising agriculture production and
productivity from irrigated lands on a sustainable basis, by integrating all
functions related with irrigated agriculture through a multi-disciplinary team
under an Area Development Authority.
The existing programme was initiated with 60 major and medium
irrigation projects. So far 310 irrigation projects with a Culturable Command
Area (CCA) of about 28.45 m/ha spread over 28 States and two Union
Territories have been included under the programme, out of which 133
projects are ongoing.
The programme involves execution of On Farm Development (OFD)
works, like construction of field channels and field drains, land-Iev~pin~d
shaping and conjunctive use of surface water and groundwater. 1iErab d'JI
or a rotational system of distribution of irrigation water is undertaken in order
To--en5Ure"equitable and timely supply of water to the farmers' fields. Adaptive
trials/demonstrations and training of farmers and functionaries of implementing
departments are encouraged to disseminate the technical know-how among
the farmers for establishing appropriate cropping pattern, improved farming
practices and maintaining soil health. Under the CAD Programme, farmers
are being encouraged and motivated to form Water Users' Associations
(WUAs), which would take up operation and maintenance of the system,
collect irrigation charges and take up equitable water distribution.

an

Based on suggestions received from beneficiaries and implementing

agencies and recommendations of the Working Groups of the Planning
Commission on 'Command Area Development Programme' and 'Private/
Beneficiary participation in the irrigation management' for Tenth plan, the
CAD Programme is being restructured and renamed as ""Command Area
Development and Water Management (CADWM) Scheme" during 2004-07,
i.e., remaining three years of Tenth Plan.
The National Water Policy 2002 stresses participatory approach in water
resources management. It has been recognised that participation of beneficiaries
will help greatly for the optimal upkeep of irrigation system and utilisation
of irrigation water. The participation of farmers in the management of
irrigation would give responsibility for operation and maintenance and
collection of water charges from the areas under the jurisdiction of the Water
Users' Association. To encourage the formation and functioning of Farmer's
Associations, a one time functional grant of Rs 600 per ha. to be shared by
Centre, State and farmers at the rate of Rs 270:270:60 respectively is being
provided, under the restructured programme.
The evaluation made in the past has revealed that the CAD Programme
made a positive impact on various important indicators, like increase in the

Water Resources

705

irrigated area, productivity and production, irrigation efficiency, etc. Despite

best efforts for efficient irrigation water management, the problem of
waterlogging has surfaced in many irrigated Commands. The Ministry of
Water Resources has, therefore, introduced a component of Reclamation of
water-logged areas under the Centrally Sponsored Command Area
Development Programme with effect from 1 April 1996. Under this component
441 schemes of nine states namely Bihar, Gujarat, Madhya Pradesh, Jammu
and Kashmir, Kamataka, Kerala, Maharashtra, Orissa and Uttar Pradesh have
been approved till now at an estimated cost of Rs 44.45 crore for reclamation
of 57,123 ha. of water logged area. Out of this, an area of about 39,083 ha.
has been reported to be reclaimed by these states i.tpto December 2003.
MINOR IRRIGATION
All Ground Water and Surface Water Schemes having a Culturable Command
Area (CCA) up to 2,000 ha. individually are classified as Minor Irrigation
Schemes. The development of ground Water is mostly done through individual
and cooperative efforts of the farmers, with the help of institutional finance
and through own savings. Surface Minor Irrigation Schemes are generally
funded from the Public Sector outlay. Irrigation Potential created and utilised
under Minor Irrigation during the various plan periods is given in table 26.4.
TABLE 26.4 : IRRIGATION POTENTIAL CREATED AND UTILISED
UNDER MINOR IRRIGATION
Period

Potential
created
(mha)

Potential
utilised
(mha)

Up 10 1951 (Pre-Plan Period)

12,90

12.90

First Plan

14,06

14.06

Second Plan

14,75

14.75

Third Plan

17.00

17.00

Annual Plans (1966-69)

19.00

19,00

Fourth Plan

23.50

23.50

Fifth Plan

27.30

27.30

Annual Plans (1978-80)

30.00

30.00

Sixth Plan

37.52

35.25

Seventh Plan

46.61

43.12

Annual Plans (1990-92)

50.35

46.54

Eighth Plan

53,31

48.77

Ninth

56,90

49,05

Plan (1997-2002)

The Ministry of Water Reso~rc~s has be.en imp~em~nting ~ Centrally,:

Sponsored Plan Scheme "Rationahsahon of Mmor Imgahon Statistics (RMIS)
since the Seventh Five Year Plan. Under the RMIS scheme the first Census
of Minor Irrigation Projects with reference year 1986-87 was conducted in all

706

India

2~

the States/ UTs except Rajasthan and the Census Report was published in
November 1993. The second Census of Minor Irrigation Projects was conducted
with reference year 1993-94 and the Census Report was published in March
2001. The second Census Report provides detailed information giving Districtwise information on construction of Minor Irrigation Schemes of each type
over the years, distribution according to ownership, distribution according to
the holding size distribution according to social status, distribution of schemes
by its types, distribution of schemes by its status, distribution of schemes
according to finance source, schemes according to water distribution system
adopted, schemes according to water lifting device, schemes according to
horse power, schemes in the command of major/medium projects, average
pumping hours, average length of water conveyance channel, culturable
command area, potential created, potential utilised, irrigation through
supplementary sources and schemes according to the constraints. The data
contained in the Second MI Census report has been put on internet and the
same is also available in Compact Disk (CD).
At present the third Census of Minor Irrigation Projects with reference
year 2000-01 is in progress in all the States! UTs except the UTs of Daman
and Diu and Lakshadweep. Thirty one States/UTs have completed the
fieldwork relating to ceniUS and computerised the Census data. So far the
Census data in respect of nine States/UTs have been finalised. The scrutiny
of data in respect of remaining states is in progress.
For giving impetus to development of Minor Irrigation in the States
where there are limited avenues of development of major and medium
irrigation projects, Ministry of Water Resources is providing Central Loan
Assistance CLA) to the , .
Stat North-Eastern
, Hilly
Stat~~__aud
~i, Bolangir! Korapyl (KIU<') Districts of Orissa ,under
AGjelerated Irrigation Benefits Programme (AIBP) for completing ongoing as
well as new Minor Irrigation Projects.
Since 1999-2000, Central Loan Assistance of Rs 322.54 crore has been
released to these states for completion of more than 3,810 Minor Irrigation
Projects, creating an additional Irrigation potential of 2.62 lakh ha. A potential
of 70,H60 ha. has been created from 2,172 schemes completed till March 2004.
FLOOD MANAGEMENT
The National Programme of Flood Management was launched in 1954. Of the
country's total geographical area of 329 mha (million ha.) 40 mha is prone
to floods, out of which 32 million ha. can be provided with reasonable degree
of protection. Till March 2002 on area of 16,435 mha. has been provided with
Cl reasonable degree of protection against flood by construction of embankments,
drainage channels, town protection works and by raising villages.
Although Flood Management is a state subject, the Union Government
prOVides Central Assistance to the flood-prone states for a few specified
schemes, which are tcdmical and promotional in nature. The Central
Governrnent, provides special assistance to the border States and NorthEastern States for taking up some special priority works.

Water Resources

707

In order to mitigate the damages from floods, a nation-wide Flood

Forecasting and Warning System has been established by the Central Water
Commission on inter-state river basins. Flood forecasts are issued through 166
Stations, out of which 139 arc river level forecasting Stations and 27 arc inflow
for('casting stations on major dams/barrages, throughout the country. Forecasts
,\buut water level in rivers likely to be attained as a result of floods and
volume of inflow into reservoirs are formulated and disseminated to various
cldministrative authorities of Central Government, State Government and
District Administration, media and other users. With reliable advance
infonndtion/warning about impending floods, loss of human lives and
immovable properties and human miseries can be reduced to a considNable
extent. The above measures provide imnwnse benefits to the authorities of
concerned dams and barrages for systematic operation of the reservoirs for
optimum utilisation of water resources and for the control of floods.
RIVER WATER DISPUTES
The m,\jor rivers of the cowltry are mostly inter-state rivers There has he<.>n

increasing demand for water in all sectors, sometimes leading to inter-state

disputes about the shiUing of water of these rivcrs Efforts arc made to I"l'solve
disputes through negotiations amongst the basin States with the assistance
llf the Central Govcrnnll'nt. Adjudication thmu~h the appointment of water
disputes tribunals is also resorted to as and when warrantl'd.
So far the following tribwlals have been appointed to resolve inter-state
water disputes (i) the Godavari Water Disputes Tribunal; (il) the Krishna Water
Disputes Tribunal; (iii) the Narmada Water Disputes Tribunal; (iv) tlw Ravi
imd Beas Waters Tribtll1ll1; (v) the Cauvery Wat<.>r Disputes Tribunal; and (vi)
New Krishna Welter Disputes Tribunal. The first three Tribunals hilVl' given
their final reports.
Cauvery Water Disputes Tribunal has given its interim order in June 1991
and the final order is awaited. The Ravi and Beas Waters Tribunal, which was
constituted in April 1986, submitted its report in January 19R7. A furthl'r
reference was made to the Tribunal comprising of a suo-motu rdefcnce hy
the Central Government and referenc<.>s received from the Govl'rnllll'nts of
Punj<lb, Haryana and Rajastiltll1 seeking explc\1hltiun/ guidancc on certain
points in the report. further report of the Tribunal is awaited. TIll' Nl'w
Krishna Water Disputes Tribunal was set up on 2 April 2004.
Central Government has also received request from the state of Goa in
August 2002 for the constitution of Tribunal for adjudication of. water disputes
rdating to Madei inter-state river ammlg the statl's of Goa, Karnatak" and
Mi\btH'ashtra. Subsequently, Chief Minister of Goa in June 2003 expressed the
dl'sin> of his state to settle the disputes through negotiations.
GROUND WATER DEVELOPMENT
['he Ce1\tral Ground Water Board is vested with the n~sponsibi1ity of assessing
~rnllnd w,lter potential of the country through hydrogeological surveys,
explol'ntiol\, evaluation and monitoring of ground water regime. The total.

708

India 200s

replenishable groundwater in India is estimated to be about 431.89 billion

cubic metres (BCM). About 70.93 BCM of groundwater is reserved for
domestic and industrial uses and 360.81 BCM is available for irrigation.
According to an estimate, 31.92 per cent of available groundwater resources
have so far been developed.
Out of 7,928 assessment units like blocks/talukas/mandals/watersheds
in the country, 673 have been categorised as "Overexploited", i.e, the stage
of groundwater development exceeds the annual replenshable rechargt' and
425 are 'Dark', i.e., the stage of ground water development is more than 85
per cent.
The Central Ground Water Authority has been constituted for the
purpose of regulation and control, management and development of
groundwater in the country and to issue necessary regulatory directions for
this purposes. Central Ground Water Authority has so far notified 11 areas
for regulation of groundwater development and management. In addition 32
areas have been notified for registration of ground water abstraction structures
in the country.
NATIONAL WATER BOARD
The Government constituted a National Water Board in September 1990 under
the Chairmanship of Secretary, Ministry of Water Resources to review the
progress achieved in implementation of the National Water Policy and to
report the progress to the National Water Resources Council (NWRC) from
time to time. The Board has held eleven regular and one special meeting so
far.
NATIONAL WATER RESOURCES COUNCIL
The National Water Resources Council was set up by the Government in
March 1983. The Prime Minister is the Chairman, Union Minister of Water
Resources is the Vice-Chairman and Minister of State for Water Resources,
concerned Union Ministers/Ministers of State, Chief Ministers of all States
and Lieutenant Governors/Administrators of the Union Territories are the
Members. Secretary, Ministry of Water Resources is the Secretary of the
Council. Five meetings of the Council have been held so far.

INTERNATIONAL COOPERATION
INDIA~BHUTAN

COOPERATION

A Joint Expert Team (JET) consisting of officials from Government of India

and Royal Government of Bhutan is functioning since 1979 to review the
progress and other requirements of the "Comprehensive Scheme for
Establishment to Hydro-meteorological and Flood Forecasting Network on
rivers common to India and Bhutan." The network consists of 35 hydrometeorological/meteorological stations located in Bhutan, which is being
maintained by Royal Government of Bhutan (RGoB). the data received from
these stations are utilised in India by Central Water Commission for
formulating the flood forecasts. The JET which meets at regular intervals every

Water Resources

709

year alternatively in India and Bhutan has to far held 19 meetings. The scheme
is fully funded by India.
A Joint Team of Experts (JTE) for matter relating to problem of floods
created by rivers originating from Bhutan has also been set up.
INDlA-BANGLADESH COOPERATION
An Indo-Bangladesh Joint Rivers Commission (JRC) is functioning since 1972
with a view to maintain liaison in order to ensure the most effective joint
efforts in maximising the benefits from common river systems. The Commission
is headed by Water Resources Ministers of both the countries.
The signing of the Treaty between the Governments of India and
Government of Bangladesh on the Ganga water sharing at Farakka on 12
December 1996 ushered a new era of cooperation in water resources sector
between the two countries. As a follow-up a Joint Committee consisting of
equal number of representatives from both the countries was constituted for
implementing the arrangements contained in the treaty, including setting up
of joint teams at Farakka in India and Hardingc Bridge in Bangladesh to
measure and record the flows for the purpose of monitoring the sharing of
waters. Secretary-level and Minister-level contacts through the Joint Rivers
Commission (JRC) are also made from time to time between both the
Governments.
Since the signing of this Treaty in December 1996, sharing of the lean
season (January to May) flow of Ganga Waters at Farakka during 1997 to 2004
has been carried out to the satisfaction of both the countries.
Discussions are also continuing between India and Bangladesh for
sharing of the waters of Teesta river. For this purpose, a Joint Committee of
Experts has been constituted to discuss and finalise the Terms of Reference
for the Joint Scientific Study to assess the availability and requirements of
Waters of Teesta and also an Interim Agreement for sharing of the lean season
Teesta flows between the two countries.
Existing system of transmission of flood forecasting data on major rivers,
like Ganga, Teesta, Brahmaputra and Barak during the monsoon season from
India to Bangladesh is continuing. The transmission of flood forcasting
information from India during the monsoon, which is being supplied free of
cost, has enabled the Civil and Military authorities in Bangladesh to shift the
population affected by flood to safer places.

INDIA-CHINA COOPERATION
A Memorandum of Understanding (MoU) has been signed between India and
China in 2002 for provision of hydrological information, namely, rainfall,
water level, discharge and other relevant information on Yalu!8ngbu /
BrMmaputra_river in respect of three stations, namely, Nugesha, Yangcun and
Nuxia in flood season by China to India from 1 June to 15 October ,every
year. As a follow-up of this MoU, an Implementation Plan has also been ~i~d
between the Implementing Agency, namely, the Central Water Comnusslon,

710

India 2005

Ministry of Water Resources of India and the Bureau of Hydrology and Water
Resources, Tibet Autonomous Region of the People's Republic of China, The
Chinese side has started transmitting data to India for the above mentioned
three stations since June 2002. The information as received from China is
useful for making advance forecasts for floods in Brahmaputra river in India,
The Government has also taken up the matter with the Chines{'
authorities for the establishment of additional hydrological stations on
Langquinzangbu (Sutlej) and Palongzangbu (Tributary of Yaluzangbu, i.e.,
Brahmaputra). During the visit of Prime Minister of India to China in June
2003, the matter was again raised by the Indian side to which the Chinese
side conveyed that they would consider the request and would make plans
for mapping the relevant hydrological stations.
INDIA-NEPAL COOPERATION
The Union Government is having continuous dialogue with HMG/Nepal at
various levels for cooperation in the field relating to Water Resources
Dev{'lopment.
In order to have interaction at higher level pertaining to the cooperation
in the field of Water Resources, including implementation of various agreements
and understandings, a Nepal-I~ Joint Committee on Water ResOllrn's
(JCWR) headed by Water Resources Secretaries of both the countries is
functioning with the mandate to act as an Umbrella Committee of all
committees and groups.
A Treaty on Integrated Development of Mahakali River had been signed
between the Government of India and Government of Nepal in February 1996
which came into force in~97 (Mahakali Treaty). Pancheshwtll'
Multipurpose Project on rive~ which is known as river ~ in India
is the centrepiece of Mahakali Treaty. India-Nepal Joint Group of Experts UGE)
has been overseeing the physical and financial progress with respect ill
finalisation of Joint Detailed Project Report of Pancheshwllr Multipurpose
Project. All the related field investigations have been completed and Detailed
Project Report is to be finalised after resolving the pending issues, which (\fe
under discussion with Nepal. Besides other, the project will have power and
irrigation benefits.
Agreement has also reached with Nepal to take up the joint field
investigations, studies and preparation of Detailed Project Report of Saptil
Kosi High Dam Multipurpose Project and Sun Kosi Storage-cum-Diversion
Scheme. An outlay of Rs 30 crore has been kept in the Tenth Plan for this
work. The Joint Project Office has been opened on 17 August 2004 in Nepal
for undertaking the above work.
For dealing with the problems of inadvertent inundation caused by tlw
construction of various works on the border rivers between India and Nepal,
a Standing Committee on Inundation Problems (SClP) between India and
Nepal is also functioning since 1986 with a view to identify the problem areas
and suggest possible solutioins on a continuing basis.

Water Resources

711

INDUS WATERS TREATY

Under the Indus Waters Treaty 1960, India and Pakistan have created two
permanent posts of Commissioner for Indus Waters, one each In India and
Pakistan, who are the representatives of the respective Governments for all
mi\tters arising out of the Treaty and serve as the regulM channel of
communication in regard to implementation of the Treaty. The two
Commissioners together form the Permanent Indus Commission which holds
periodical meetings and also undertake tours to inspect projects/works in
India and Pakistan.
UPPER YAMUNA RIVER BOARD
Yamuna water dispute regarding allocation of utilisable surface flow of
Yamuna among the co-basin states up to Okhla was resolved by way of a
MoU signed by the Chief Ministers of Himachal Pradesh, Haryana, Uttar
Pradesh, Rajasthan and National Capital Territory of Delhi on 12 May 1994.
As per the provisions in the MoU, the Upper Yamuna River Board (UYRB)
with its headquarters in the National Capital Region was constituted. Upper
Yamuna Review Committee (UYRC) was also constituted, for supl'rvising the
,working of the UYRB to ensure implementation of the MoV regarding
allocation of surface flow of Yamuna and to issue directions, as deemed
necessary, for proper development and management of the uppl'r reaches of
the Yamuna River Basin up to Okhla. Uttaranchal has also lWl.'n made Member
of Upper Yamuna River Board and Upper Yamuna Review Committee.
EXTERNAL ASSISTANCE
The extension of irrigation to the various regions of the country is a national
priority. The Ministry assists the state governments in tying up external
assistance from different funding agencies to bridge the resource gap for
harnessing their irrigation potential.
International support for development of country's water r('sources
comes from multilateral agencies like the World Bank, Asian Development
Bank and European Union and from the countries such as Japan, Germany,
etc. The World Bank assistance in the water resources sector is up to 70 per
cent. At present, there are 16 ongoing projects with external assistance from
the World Bank, European Union and other funding agencies/ countries, in
various states. External assistance amounting to Rs 919.20 crore was rcceiv('d
during 2003-2004.

\t~ENTRAL ORGANISATIONS
CENTRAL WATER COMMISSION
The Central Water Commission is a premier technical organisation in the
country in the field of Water Resources since 1945. The Commission is chargl"d
with the general responsibilities of initiatin~ coodinating and furthering, in
consultation with the state governments concerned, schemes for control,
conservation and utilisation of water resources throughout the country, for
purpose of Flood Control, Irrigation, Navigation, Drinking Water Supply and

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India 200!;

Water Power Development. It also undertakes the investigations, construction

and execution of any such schemes as required.
The

ewe

is headed by a Chairman, who also holds the status of ex-

offico Secretary to Government of India. It has three technical wings, namely,

(i) Design and Research, (ii) Water Planning and Projects and (iii) River
Management. Each of the wings is headed by an engineering officer
designated as Member, with the ex-officio status of Additional Secretay to
Government of india. The wings consist of organisations headed by the Chief
Engineers, and these organisations are made up of Directorates, each headed
by a Director. Altogether there are 32 organisations and 146 Directorates
Circles.
Thirteen regional organisations of CWC are functioning at Bangalore,
Bhopal, Bhubaneswar, Chandigarh, Coirnbatore, Delhi, Hyderabad, Lucknow,
Nagpur, Patna, Shillong, Siliguri and Vadodara, each headed by a Chief
Engineer. These organisations closely interact with the states and are entrusted
with monitoring of medium and major projects, appraisal of medium projects,
flood forecasting and hydrological observations. More and more activities like
monitoring of command area development, minor irrigation and other water
management activities are now being taken up by these organisations.
BROAD FUNCTIONS OF CWC
The CWC is charged with the general responsibility of initiating, coordinating
and furthering, in consultation with the state governments concerned, schemes
for the control, conservation and utilisation of water resources throughout the
country for the purpose of flood management, irrigation, navigation, drinking
water supply and water power generation. The Commission, if so required,
also undertakes the construction and execution of any such scheme. Following
are the functions of CWC : To make all necessary investigations and surveys
and, when so required, to prepare schemes and designs for the development
of river valleys in respect of power generation, irrigation by gravity flow or
lift, navigation, flood management, environmental management, rehabilitation
and resettlement, soil conservation, anti-waterlogging measures, reclamation
of alkaline and saline soils, drainage and other related facilities, such as
malaria control, recreation, fish culture and drinking water supply; to
undertake construction work of any river valley development scheme on
behalf of the Government of India or State Governments concerned; to advise
and assist, when so required, the state governments (Commissions, Corporations
or Boards that may be set up) in the investigation, surveys and preparation
of river valley and power development schemes for particular areas and
regions; to advise the Government of India in respect of Water Resources
Development, rights and disputes between states which affect any scheme for
the conservation and utilisation of water in the interests of the concerned states
and any matter that may be referred to the Commission ID connection with
river valley development; to advise the Central Government and State
Government on the basin-wise development of water resources; to advise the
Government of India in regard to all matters relating to the Inter-State water
disputes; to advise the Government of India in regard to the settlement of

Water Resources

713

priorities for plants, materials and foreign exchange as among various river
valley development schemes and monitoring of projects; to collect, coordinate
the collection of, analyse and publish the data relating to water ways, tidal
rivers, rainfall, runoff, temperature, ground water resources, silting of reservoirs,
behaviour of hydraulic structures, environmental aspects etc. and to act as
the Central Bureau of Information in respect of these matters; to collect,
maintain and publish statistical data relating to water resources and its
utilisation, including quality of water, throughout India and to act as the
Central Bureau of Information relating to water resources; to initiate schemes
and arrange for the trainings of Indian engineers in India and abroad in all
aspects of river valley development and also coordinate the training activities
in the state government institutions; to standardise instruments, methods of
observation and record, materials and construction, design and operation of
irrigation projects; to initiate studies on socio-agro-economic and ecological
aspects of irrigation projects for the sustained development of irrigation; to
conduct and cordinate research on the various aspects of river valley
development schemes such as flood management, irrigation, navigalion, water
power development etc., and the connected structural and design features;
to promote modem data collection techniques such as remote sensing satellite
technology for water resources development and flood forecasting and
development of computer softwares; to conduct studies on dam safety aspects
for the existing and future dams and standardise the instruments for the dam
safety measures; to initiate studies on morphological features, river bank
erosion/coastal erosion problems and advise the central and state government
on all such matters; to conduct experiments and research, and to carry out
such other activities that will promote economic and optimum utilisation of
water resources; and to promote and create mass awareness in the progress
and achievement made by the country in water resources development.
CENfRAL SOIL AND MATERIALS RESEARCH STATION
The Central Soil and Materials Research Station (CSMRS), New Delhi is a
premier National Institute of the country, devoted to research and investigations,
primarily in geotechnical engineering, construction materials and concrete
technology. In addition to water resources sector, involving hydroelectric and
irrigation projects, CSMRS has been undertaking the challenging works
pertaining to nuclear and super-thermal power projects, and other construction
works. The Research Station also functions as consultant in the following areas
of its specialisation for projects and organisations in India and neighbouring
countries such as Nepal, Bhutan and Afghanistan: Soil Mechanics and
Foundation Engineering; Soil Dynamics; Rock fill Technology; Geotextile and
Grout Technology, Drilling Technology, Engineering Geophysics; Rock
Engineering; Construction Materials and Concrete Technology; Geotechnical
Instrumentation; and Chemical aspects of Water and Engineering Materials.

In addltion to providing inputs to the designers for major projects,

Research Station's expertise is utilised in all types of challenging situations
pertaining to hydroelectric projects of the country - be that quality assurance
of prestigious projects like Tehri Hydroelectric Project, Uttaranchal, or

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lndia2005

assessment of safety for dams in distress such as Rihand Hydroelectric Project,

V.P., or engin<>ering assessment for building hydroelectric projects on

challenging weak rocks such as Subansiri (Lower) Project, Assam. Training

of field personnel in core areas is another important activity.
CSMRS is also deeply involved in geotechnical investigations pertaining
to prestigious River Linking Project, having Himalayan and Peninsular
components. In this connection it provides full support to National Water and
Dl'velopment Authority (NWDA). This Research Station has MoV with
IGNOV study centre and is at present executing CSMRS-NGI Institutional
Cooperation Programme in the field of investigation of "Geological Hazards
in Dam Reservoir for Safety of Downstream Structures".
CENTRAL WATER AND POWER RESEARCH STATION
The Central Water and Power Research Station (CWPRS), Khadakwasla, Pune,
is the centre of excellence in hydraulic research at the national level. From
it's beginning in 1916 as an institution dealing with the twin problems of
irrigation and drainage, the institution has grown to a hydraulic institution
of international standing. CWPRS undertakes basic and applied research in
hydraulic, geotechnical engineering and the allied subjects of hydrology and
water resources analysis; and is in the forefront in the use of complex physical
and mathematical modelling techniques in solving diverse water resources
issues related to riverine and coastal environment. As the regional laboratory
of ESCAP since 1971, CWPRS has offered its services to a number of projects
in the neighbourhood as well as countries in the Middle-East and Africa.
The major diSciplines/laboratories of CWPRS are: Hydrology and Water
Resources Analysis, River Engineering, Reservoir and Appurtenant Structures,
Coastal and Offshore Engineering, Ship Hydrodynamics, Hydraulic Machinery,
Earth Sciences, Mathematical Modelling, Foundations and Structures and
Instrumentation and Control Engineering. About 50 divisions, associated with
these disciplines are engaged in research.
CENTRAL GROUND WATER BOARD
The Central Ground Water Board was constituted as the national apex
organisation in 1970. The main activities of the Board include macro-level
hydrogeological investigations, deep exploratory drilling coupled with remote
sensing studies, geophysical studies and pumping tests to study the subsurface
hydrogeological features and nation-wide monitoring of the behaviour of
water table and water quality through a network of 14,739 hydrograph
stations. This includes a total of 2,239 purpose-built piezometers procured
under Hydrology Project. 1,,200 piezometers are fitted with Digital Water
Level Recorder (DWLR) to get continuous ground water levels at desired
intervals. The data generated from these investigations provide a scientific
base for preparation of ground water development schemes by the state
governments. In areas having problem of ground water pollution, seawater
ingress, groundwater depletion, etc., special studies are undertaken to assess

Watl~r

Resources

715

the magnitude of the problem and suggest remedial measures. Besides

advising the States on planning, financing and administration of groundwater
development schemes, the Board undertakes research and development
schemes, water balance studies, conjunctive use studies and artificial recharge
studies. The Board also organises training of personnel of different disciplines
from related central and state government, organisations.
The Central Ground Water Board carries out exploratory drilling aided
by geophysical and remote sensing studies to decipher the potentiality of
various geological formations. The Board has drilled 10,585 exploratory wells
till 31 March 2004 out of which 8,104 were successful. Of the successful
exploratory wells, 7,588 wells have been offered to the state governments. The
Cl'ntri'll Ground Water Board has earmarked substantial number of rigs for
construction of tubewells to assist the state governments for mitigating the
drinking water problems in the drought-affected areas of the country.
To meet the two-fold challenge of increased water demands and reduced
availability of fresh water in the country, the Central Ground Water Board
has promoted the practice of artificially recharging ground-water including
rain water harvesting. During the Ninth Plan, the Central Ground Water Board
implemented a Central Sector Scheme on "Study of Recharge to' Ground
Water" under which 165 recharge projects in various hydrogeological conditions
spreading over 27 States! UTs were taken up for implementation out of which
142 projects have been completed so far and remaining 23 projects are under
progress. The projects implemented by the Board has resulted in rise in
groundwater levels, reduction in pumping lifts, leading to saving of energy
and adding to the pool of water resources in benefited areas.
The Central Ground Water Board also provides technical know-how for
construction of rainwater harvesting structures in various parts of the country
free of cost. To create awareness, the Board has got incorporated a chapter
on Water Resources in NCERT textbook, which has been modified to include
"Artificial Recharge and Rain Water Harvesting".
The Board regularly publishes scientific reports and maps. Recently, the
Board has published Hydrogeological Map of India, Master Plan on Artificial
Recharge to Groundwater, Guidelines on Artificial Recharge to Groundwater,
etc. The Board prepared user-friendly "Groundwater Maps" of 500 districts.
The Central Ground Water Authority organises mass awareness
programmes at different locations of the country on Rain Water Harvesting
and Artificial Recharge of Groundwater 'involving Central/State/NGO's!
VO's' resident welfare organisations, educational institutions, industries and
individuals. Material on 'Rain Watpr Harvesting' to augment groundwater has
been integrated into Vidya Vahini Portal.
FARAKXA BARRAGE PROJECT
The Farakka Barrage Project, Farakka is designed to serve the need of
preservation and maintenance of Kolkata Port by improving the regime and
navigability of the Bhagirathi-Hooghly river system. The river Bhagirathi, the

716

India 2005

Feeder Canal and Navigation Lock at Farakka form part of the HaldiaAllahabad Inland waterway. The principal components of the project are :
(a) 2,245 metre-long barrage across the Ganga with a rail-cum-road bridge,
necessary river training works, and a head Regulator on the right side;
(b) a 213 metre-long barrage across the river Bhagirathi at Jangipur; (c) feeder
canal of 1,113 cubic metres per second (cumec) or (40,000 cusec) carrying
capacity and 38.38 km long, taking off from the head Regulator on the right
of the Farakka Barrage; and (d) navigation works such as locks, lock channels,
shelter basins, navigation lights and other infrastructure.
The Government have decided that the Farakka Barrage Hydro-Electric
Project will be executed by the Ministry of Power through the National HydroElectric Power Corporation Limited.
SARDAR SAROVAR CONSTRUCTION ADVISORY COMMITTEE
The Sardar Sarovar Construction Advisory Committee (SSCAC) located at
Vadodara, was constituted in 1980 as per the directive of the Narmada Water
Disputes 'Ihbunal (NWDT) for scrutiny of estimates, technical features, design
and to monitor the progress of the construction activity to ensure efficient
economical and timely execution of Unit-I (Dam and Appurtenant Works) and
Unit-III (Hydro-Power Complex) of the Sardar Sarovar Project (SSP). The
Secretary, Ministry of Water Resources, is the Chairman of the Committee.
Officers of the departments like Irrigation, Power, Revenue, Welfare etc. of
the four party states concerned with the construction of the project, along with
their counterparts from the Government of India and the Narmada Control
Authority are Members of the Committee.
BANSAGAR CONTROL BOARD
The Bansagar Control Board was constituted by the Central Government in
consultation with the governments of Madhya Pradesh, Bihar and Uttar
Pradesh with a view to ensure efficient, economical and early execution of
the Bansagar Dam on Sone river, including all connected works in Madhya
Pradesh but excluding the canal systems. The headquarters of the Board is
at Rewa (Madhya Pradesh). The Union Minister of Water Resources is the
Chairman of the Board. The day-tn-day activities of the Board are managed
by the Executive Committee of the Board under the Chairmanship of
Chairman, Central Water Commission. The funds for the project are borne
by the beneficiary states of Madhya Pradesh, Uttar Pradesh and Bihar in the
ratio of 2:1:1.
The latest revised estimated cost of the Dam Project is Rs 1,054.96 crore
at 1998 price level. The total expenditure up to March 2004 is Rs 908.81 crore.
The dam is scheduled for completion with gates by June 2005.
GANGA FLOOD CONTROL COMMISSION
The Ganga Flood Control Commission with its headquarter at Patna, was
established in 1972. It serves as the Secretariat and executive limb of Ganga
Flood Control Board which is headed by Union Minister for Water. Resources
and has as it members, the Union Ministers for Finance, Railways, Surface

Water Resources

717

Transport and Agriculture or their representatives, Union Minister of State

for Water Resources, the Chief Ministers of the basin states or their
representatives and Member, Planning Commission. The Commission is
headed by a Chairman who is assisted by two full-time Members.
The main functions of the Commission includes preparation and updating
of a comprehensive plan for flood management, techno-economic appraisal
of flood management schemes, assessment of adequacy of waterways under
road and rail bridges, monitoring and performance evaluation of flood
management schemes, and participation in international and national
committees set up by the Government of India on Ganga basin states
pertaining to the subject of flood management.

PUBLIC SECTOR UNDERTAKINGS

WATER AND POWER CONSULTANCY SERVICES (INDIA) LIMITED
The Water and Power Consultancy Services (India) Limited (WAPCOS), a Mini
Ratna-II public sector undertaking under the Ministry of Water Resources
provides integrated technical consultancy services in the water and power
sectors in India and abroad. It was established in 1969. Its registered office
is in New Delhi. Besides the traditional specialisations like irrigation and
drainage, flood control and reclamation, WAPCOS' specialisation covers
disciplines like water supply and sanitation (rural and urban), groundwater
exploration and development, hydro/thermal power generation, transmission
and distribution, integrated agricultural development, ports and harbours,
environmental engineering, dam safety and surveillance, etc. WAPCOS has
been operating in over 35 developing countries.

NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED

The National Projects Construction Corporation Limited (NPCC Ltd), a
Government of India enterprise, was established in 1957, for developing
infrastructure in the core sectors of irrigation and water resources, power and
heavy industry. Its registered office is in New Delhi. The Corporation has
successfully associated itself with completion of over 125 National Projects
valued at over Rs 2,500 crore, most of them in remote and hazardous locations
spread over the whole country. Besides completion of projects in India, the
Corporation has also successfully executed several overseas projects.

OTHER ORGANISATIONS
NARMADA CONTROL AUTHORITY
The Central Government framed the Narmada Water Scheme, which, among
other things, constituted Narmada Control Authority and a Review Committee
in 1980 for implementation of the decisions and directions of the Narmada
Water Disputes Tribunal. The Narmada Control Authority, a high powered
inter-state body, is headed by Secretary, Ministry of Water Resources,
Government of India, as the Chairman with Secretaries of the Union Ministries
of Power Environment and Forests, Social Justice and Empowerment, Tribal
Affairs, Chief Secretaries of the four party States, one Executive Member and

718

India 2006

three full time Members appointed by the Central Government and four parttiml' Mambers in-charge of department of Irrigation/Power/State Electricaly
l3aords appointed by the party states. The Review Committee of Narmada
Control Authority (RCNCA), headed by the Union Minister of Water Resources,
comprises of Union Minister for Environment and Forests and Chief Ministers
of the party states as members. The Secretary, Ministry of Water Resources,
covl?rnment of India is the convener of the RCNCA. The Review Committee
may~ mo~r on the application of any party state, or Secretary to the
coverl ment of India, Ministry of Environment and Forests, review any
decision of the Authority.
TUNGABHADRA BOARD
The Tungabhadra Board was constituted for the completion of the Tungabhadra
Project ,md for its operation dnd maintl'nance. The Board is responsible for
the common portion of the Tungabhadra Project. The Krishna Water Disputes
Tribunal has made specific provision in the Award for the use of Tungabhadra
wdter by the states of Kdrnataka and Andhra Pradesh. The responsibility for
carrying out this specific provision relating to the use of Tungabhadra waters
h,lS been entrusted to the Tungabhadra Board by the Tribunal. The Board is
rq.;ul.lting the water for irrigation, hydropower generation and other uses on
tlw right b,mk.
At present, the Board consists of a Chairman appointed by the Government
of InLiiil, one Member from Government of India and two Members from
conn:rned stiltes, one each representing Andhra Pradesh and Karnataka, all
working part-time in the Tuogabhadra Board. An officer of Central Government
appointed as the Secretary of the Board is the Chid Executive of the Board.
The funds for the functioning of the Board arc provided by the two state
governments.
BETWA RIVER BOARD
The I3ctwa River Board was constituted by the Ministry of Water Resources,
for efficient, economical and early exa:ution of the Rajghat Dam Project, a
joint venture of Madhya Pradesh and Uttar Pradesh. The headquarters of the
Hoard is at Jhansi (Uttar Pradesh). The Union Minister for Water Resources
is the Chairman of the Board. The activities of the Board arc managed by
the l':xecutive Committee of the Board under the Chairmanship of the
Chairman, Central Watt.'r Commission. The funds for construction of the
Rajghat lJam and Power House Projects and for meeting the expenses of the
office of the Hoard arc borne by the states of Madhya Pradesh and Uttar
Pradesh in equal proportions.
The Rajghat Dam and Rajghat Hydro-elcctric Projects are inter-state
projects of Madhya Pradesh and Uttar Pradesh. The estimated cost of the
Rajghat Dam is Rs 300.60 crOfC (cit 2000 price level) and that of the powerhouse
Rs 139.74 croce (at 1997 prke level). The total expenditure incurred on the
project is Rs 253.1 crore up to December 2003. The Rajghat Dam is almost
complete. All the three units of Rajghat Hydro-electric Project have been

Water Resources

719

synchronised during 1999 and 953 lakh units of power was generated during
2003-04.

NATIONAL INSTITUTE OF HYDROLOGY

The National Institute of Hydrology (NIH), functioning since 1978, is
conducting basic, applied and strategic research in thc field of hydrology and
water resources development.
The objectives of the Institute are: (a) To undertake, aid, promote and
coordinate basic, applied and strategic research on all aspects of hydrology,
contributing a sustainable water resources development in thc country; (b)
To act as a repository of knowledge and information in hydrology, and
dissemination of the same in the country; (c) To act as a centre of excellence
for transfer of technology, human resource development and institutional
development in specialised areas of hydrology; (d) To conduct user-defined,
demand-driven research through consultancy in the field of hydrology; and
(e) To cooperate and collaborate with relevant national and international
organisations in achieving the above objectives.
There are four regional Centres located at Belgaum, Jammu, Kakinada
and Sagar, and two Centres for Flood Mimagement Studies at Guwahati and
Patna.
The institute is focussing studies and research on the following thrust
areas during the Tenth Plan period: Water Related Disasters; Groundwater;
Water Resources Planning and Mcmagcment; Snow and Glacier; Prediction in
Un-gauged Basins; Water Quality; Hydrology of Arid and Semi-arid zones;
Reservoir Sedimentation; Watershed Hydrology. The Institute is recognised by
several IITs, lISe, Universities and other academic organisations for carrying
out research work leading to the award of postgraduate and Ph.D. degrees
in hydrology and related subjects.
The Institute has developed capabilities for undertaking sponsored and
consultancy research in the areas, which include : (i) Snow and Glacier
hydrology; (ti) integrated hydrological studies of watersheds; (iii) Remote
Sensing and GIS applications for various hydrological studies; (iv) Isotope
applications for dating of ground water and sediments, identification of
recharge zones for ground water recharge and study of surface water--ground
water interaction; and (v) Hydrological studies of lakes induding eutrufication
and rejuvenation.
The institute has completed 52 sponsored research prqj('cts to solve
strategic problems.

BRAHMAPUTRA BOARD
The Brahmaputra Board was constituted in December 1981 for planning and
implementation of measures for the management of floods and bank erosion
in the Brahmaputra Valley. The major activities of the Board are preparation
of Master Plans and investigation of projects in the Brahmaputra and Barak
basin. execution of schemes/projects and preparation of Detailed Project

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India 2095

Reports in the North-Eastern Region. The Board has already completed and
Gowrnment of India has approved the Master Plan ParH and, Part-II
pertaining to Brahmaputra River (Main Stem) and Barak River and its
tributaries. Out of the 49 identified Master Plans under Part-III, which includes
tributaries of the Brahmaputra and Barak and the rivers of Tripura, 27 have
been approved by Government of India and the rest are under various stages
of preparation by Brahmaputra Board. The Board has already taken over the
construction of Pagladiya Dam Project approved at an estimated cost of Rs
542.90 crore. The revised cost of Rs 1069.40 crore is under process for approval.
The Board has also taken up execution of Harrang Drainage Development
Scheme during Ninth Plan period, Avulsion of Brahmaputra at DhollaHathighulli and few anti-erosion and drainage development schemes in the
N.E. Region, which also include immediate anti-erosion measures for protection
of Majuli Island in Assam during Tenth Plan.

NATIONAL WATER DEVELOPMENT AGENCY

Suggestions for a National Water Grid envisaging interlinking of rivers with
a view to transferring surplus water available in some regions to water deficit
areas have been made from time to time. The Government prepared a National
PE:'rspective Plan (NPP) for Water Resources Development in August 1980
which comprises two components, viz., Peninsular Rivers Development
Component and Himalayan Rivers Development Component. The NPP
envisages interlinkages between various Peninsular rivers and Himalayan
rivers for transfer of water from water surplus basins for optimum utilisation
of water resources. The Government established the National Water
Development Agency (NWDA) in July 1980 to firm up these proposals. A total
of 30 water transfer links, 16 under peninsular components and 14 under
Himalayan components have been identified by the Agency for preparation
of feasibility rt'ports.
Under the Peninsular Component, the Agency has already completed
data collection and water balance studies of 137 basins/sub-basins and at 52
identified diversion points, toposheet studies of 58 identified storages and 18
toposheet studies of link alignments, and prepared pre-feasibllity reports of
17 water transfer links. Presently, the work of field surveys and investigations
for preparation of feasibility reports of link schemes is on hand. Feasibility
reports of nine links have already been completed, and feasibility report of
the remaining links will be completed by December 2005.
The Himalayan Rivers Development Component envisages construction
of storage reservoirs on the principal tributaries of Ganga and Brahmaputra
in India, Nepal and Bhutan alongwith interlinking canal systems to transfer
surplus flows of the eastern tributaries of the Ganga to the west, apart from
linking of the main Brahmaputra and its tributaries with the Ganga and the
Ganga with the Mahanadi. The Himalayan Rivers Development Component
shall provide additional irrigation and generation of hydropower, besides
providing substantial flood control in the Ganga and Brahmaputra basins. It
would also prOVide the necessary discharge for augmentation of flows at

Water Resources

721

Farakka to flush Kolkata Port and enhancc thc inlilnd navigation facilities
across the country.
The Himalayan Component is basl'd on multi-purpose !'Itoragcs giving,
benefits of hydropowN and flood control, lwsides diwrting watl'r to
downstream links. International co-ope1'illion would be re'luin'd to enable the
implementation of this componmt.
Under the Himalayan Component, NWDA has aln'ady completed water
balance studies at 19 diversion points, topoShPl't sturlies of 16 storag(' site's
and 19 link alignments and prepared pn'-fl'asibility rcports of 14 proposed
water transfer links. Thc fl'asibility report for two links have already been
completed and for remaining 12 links the J'l'port will bl' complt't('d by
December 2005.
The implementation of the int('r-basin wat('r transit'r link schemes can
be t(lke'n up in a phased mannl'r depl'nding on tl1' prioriti('s of thl'
Government and availability of funds. But before Ihis, cprlain other steps, viz.,
negotiations and agreements amongst the statl's involved in interbasin
transfer, preparation of Detailed Project I{eports (DI'Rs), techno-{'conomic
appraisal of DPRs and investment clearanc{' of t1w schemc's, funding
arrangements and fixing of agencies for execution, ctc., would be necessary.
In order to expedite the proccss of arriving at cons('nS\lS amongst the Stat{'s,
a Group headed by Chairman, Central Water Commission has been formed,
so that the work of preparation of Detailed Project Rt>ports could be started.
This Group is expected to work independl.'ntly and on a continuous basis.
The implementation of the ,;boVl' programme of intl'rbasin wilter transfer
is ('xpected to provide additional irrigation bendit of 35 Mha which will be
(lver and above the ultimate irrigation potential of about ]40 mha envisaged
from major, medium and minor irrigation projects and would generate 34
million KW of hydropower, apart from the benefits of flood control, navigation,
water supply, fisheries, salinity, pollution control, de
The Union Government has set up a Task Force under the Chairmanship
of Suresh Prabhu, M.E.. on Interlinking of Rivers on 13 December
2. Shri
Prabhu has since resigned from the Chairmanship and now r. c.c. pa e ,
Vice-Chairman, Task Force-Interlinking of Rivers (TF-ILR) has
over e
charge of Chairman, Task Force-Interlinking of It1Vefs. Jfie Task Force was
to prepare Action Plan-I by 30 April 2003 giving the outline of the time
schedules for the completion of 'the feasibility studies, detail('d project reports,
estimated cost, implementation schedule, concrete benefits and advantages of
the project, etc. It was to suggest an alternative option for funding and
('xecution of the project as also the suggested methods for cost recovery by
July 2003 in Action Plan-II. Task Force submitted the Action Plan I on 30 April
2003 giving an outline of the time schedules for the rnmpletion of the
feasibility studies, detailed project reports, estimated cost, implementation
schedule, concrete benE.'fits and advantages of the project, etc. Task
Force-Interlinking of Rivers submitted detailed document on Action Plan II
in April 2004.

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India 200S

The UPA Government has taken a realistic view of this important and
beneficial project by stating "The UPA Government will make a comprehensive
assessment of the feasibility of linking the rivers of the country starting with
the southern rivers. This assessment will be done in a fully consultative
manner. It will also explore the feasibility of linking sub-basins of rivers in
states like Bihar."

27

Welfare

INDIA is a welfare state, committed to the welfare and development of its

people in general and of vulnerable sections in particular. The Preamble,
Directive Principles of State Policy, Fundamental Rights and specific sections,
namely, Articles 38, 39 and 46 in the Constitution of India, stand testinwny
to the commitment of the State to its people.
In order to empower the weaker and socio-economically deprived
sections of the society, the Ministry of Welfare constituted on 25 September
1985 was renamed as the Ministry of Social Justice and Empowerment on
25 May 1998. The development of the Scheduled Tribes is now being looked
after by the Ministry of Tribal Affairs which was created on 13 October 1999.
The areas which are of concern to the Ministry of Social Justice and
Empowerment af(~ also those where a major role is played by the State
Governments. Thus, the responsibility for implementation of the schemes is
shared between the Central and State Governments. The Central Government
is responsible for formulating the related policies and programmes besides
coordinating and promoting implementation of services by States.
WELFARE OF SCHEDULED CASTES
The Scheduled Cilstes (SCs) are specified in accordance with Article 341 of
the Constitution. According to 1991 census, the population of scheduled castes
was 13.82 crore constituting 16.48 per cent of the country's total population
of 84.63 crore. While the Constitution has prescribed certain protective
meilsures and safeguards for these classes, successive Five-Year Plans have
regarded their progress as major objective of niltional policy.
NATIONAL COMMISSION FOR SCs AND STs
By virtue of the Constitution (Sixty-fift~Amendment) Act, 1990, the Special
Officer'S post under Article 338 of the Constitution has been substituted by
the National Commission for Scheduled Castes and Scheduled Tribes. The
Commission has a Chairperson, a Vice-Chairperson and five other members
to be appointed by the President. It shall be the duty of the Commission:
(a) to investigate and monitor alf matters relating to the safeguards provided
for the scheduled castes and scheduled tribes under the Constitution or under
any other law; (b) to enquire into specific complaints with respect to the
d('privation of rights and safeguards of the scheduled castes and tribes;
(c) to participate and advise on the plaruting process of socio-econornic
development of the scheduled castes and scheduled tribes; and to evaluate
the progress of their development wlder the Union and any state; (d) to
presl.'nt to the President annually, and at such other times as the Commission
Inay deem fit, reports upon the working of these safeguards; (e) to make in
Such reports I tc<:ommendations as to the measureS that should be taken by

724

India 2005

thE:' Union or and state for the effective implementation of those safeguards
and other measures for the protE:'ction, welfare and socia-economic developnwnt
of the scheduled castes and sclwduled tribes; and (f) to discharge such other
fUllctions in relation to the protection, weifar(' and development and
advrlJl("emcnt of the scheduled ("ilstes and scheduled tribes as the President
may, subject to the provisions of any law made by Parliament, by rull', sp{cify.
The President shall cause all such reports to be laid before eilch HOUSl'
of Parliament along with a memorandum explaining the action taken or
proposed to be taken on the recommendations relating to the Union and the
reasons for the non-acceptance, if any, on any of such recommendations.
Where any such report or any part thereof, relates to any I11i1tter with which
any statl' government is concenwd, a copy of such report shi\l1 be forwarded
to the Governor of the state who shall cause it to be laid befOrE' the legislaturp
of the state.
The Commission shall, while investigating and monitoring any matter
relating to safeguards provided for scheduled castes and scheduled tribes
under the Constitution or any other law for the time being in force or lIndp),
any order of the Government, have all powers of a civil court trying (I suit
and in particuli'lf in respect of the following matters, namely: (a) summoning
and enforcing attendance of any person from any part of India ilnd examining
him on oath; (b) requiring the discovery and production of any docum(.'nt;
(c) receiving evidence on affidavits; (d) requisitioning any public record or
copy thereof from any court or office; (e) issuing summons for the examination
of witnesses and documents; and (f) any other matter which the President
may be rule, determine.
The Union and every State government sh'lll consult the Commission
on all major policy matters affecting scheduled castes and scheduled tribes.

NATIONAL COMMISSION FOR SAFAI I<ARAMCHARIS

The National Commission for Safai Karamcharis (NCSK) was first constituted
on 12 August 1994 under the provision of the National Commission for Safai
Karamcharis Act, 1993. The tenure of the Commission has been extended uplo
31 December 2007 through Resolution of Government of India. The aim of
the Commission is to promote safeguard the interest and rights of Safai
Karamcharis. The composition of National Commission for Safai Karamcharis
is one Chairperson and four
mbers (including a lady Member). The
National Commission ha inter alia een empowered to investigate specific
grievances and matters re atmg to implementation of programmes and
schl'mes for welfare of Safai Karamcharis. The commission is required to be'
consulted on all major policy matters affecting Safai Karamcharis.

LEGISLATION AGAINST UNTOUCHABILITY

For enlarging the scope and making penal provisions more stringent, th(,
Untouchability (Offences) Act, 1955 has been comprehensively amended and
renamed as the Protection of Civil Rights (peR) Act, 1955 which came into

Welfare

725

force from 19 November 1976. This Act provides for penalties for preventing

allY person on grounds of untouchability, from enjoying the rights accruing

on account of abolition of untouchability. Enhanced penalties/punishments
h,we been provided for subsequent offences.
The PCR Act, 1955 is administered by State governments. Provisions for
legal aid to scheduled castes in cases relating to untouchability have been
m,lde by 22 States/UTs. Special cells/squads have been created by 20 states
for initiating and exercising supervision over prosecution for contravention
of the provisions of the PCR Act. Nineteen StCltes, VTs have set-up committees
at vcUious levels to make periodical review of the problems of untouchability
and Cc1ses related to it and also suggest measures for effective implementation
of the PCR Act. Matching central assistance is provided to the States on centpercent hasis of VTs for impll'mentation of th!' PCR Act. Twenty-two special
l1l11bik, cuurts have been set LIp in untouchability-prone districts of Amihra
Pradesh, for expeditious disposal of sllch Cdses. Necessary guidelines and
instructions are issued to States from time to time for effective implC'mentation
of the provisions of thl' peR Act.
MEASURES TO CHECK ATROCITIES AGAINST SCs AND STs
Scheduled Castes clnd Scheduled Tribes (Prevention of Atrocities) Act, 1989,
which camt into force on 30 jilnuary t 990, specifies offences, which arc
considered as atcocitil's, and provides for deterrent punishments for commission
of the same. Comprehensive Rules were also framed under the SCs and the
STs (POA) Act in 1995, which Clmong other things provide for relief ami
rehabilitation of tht' affected p('rsol1s. It also l'lwisages prcwntivl' measures,
and States have to evolve schemes, iIlnong others, for ('c(}I1Omic and social
r('habilitation of stich victims. All States and union Territories t'xcept Arunachal
Pradesh and Nag,llclnd have specified special cOllrts for triaillf offences under
this Act. Exclllsive s}){'ciill courts have been sl't up in Andhrcl Prcldesh, Madhya
Pradesh, Rajc\stlhuI, (;ujarat, Kamataka, Iiunil Nadu and Uttar Pradesh.
Under the Centrally-sponsort'd SdWllH' for Il11plement,ltion of the Act,
Statl' Governments c11'l' funded on 50:50 basi.:; and. Union Tl~rritories are given
cent-percent assi~tilnc('.

PARLIAMENTARY C<.lMMITTEE
The Government h.ttl Sl~t up three PMliill111'ntilrY Committees, first in 1966,
sl'cond in 1971 and third iil 1973 and fourth in 2004 to examine the
illlplt'mentation of thl' Constitutional safegllards for welfa,re of scheduled
vastl's and scheduled tribl's. The Conunitlt:,l' has since been con!"tituted as a
Stcll\(.iing Committee of I'.lrliament on Sod,ll Justice and Empowerment.

EDUCATIONAL DEVELOPMENT
Pl(E-MATRIC SCHOJ,ARSIJIP FOR CHILDREN
This Scheme was introdlll'l'd in 1977-78. UnLier the scheme, the children of
famlh~s engagt!d in uncll,<lJ\ occupations slich as scaVl'nging, flying and

726

India 2005

tanning are assisted to pursue education up to matriculation level. The

scholarship is provided through State Governments and Union Territory
Administrations. Central assistance is provided to the State Governments on
50:50 basis and to the Union Territory Administrations on 100 per cent basis
over and above their committed liability. There is no income ceiling prescribed
under the scheme. The scheme provides scholarship of Rc; 40 per month in
class I to V, Rs 60 per month in class VI to VIII and Rs 75 per month in class
IX to X in respect of day scholars, for hostellers Rs 300 per month in class
III to Vlll and Rs 375 per month in class IX to X. The duration of scholarship
in an academic year is ten months. The day scholars and hostellers are eligible
for an ad hoc grant of Rs 550 and Rs 600 per student per annum respectively.
POST MATRIC SCHOLARSHIP FOR SCHEDULED CASTES/SCHEDULED
TRIBES STUDENTS
The Scheme of Post Matric Scholarship commenced during 1944-45. The
scheme enables a considerable number of Scheduled Caste students to obtaiJl
post-secondary and higher level of education resulting in their overall
educational and economic development. The Scheme provides for 100 per cent
Central Assistance to the State Governments and UT Administrations over
and above the respective committed liability of the State/Ur. The committed
liability of the North Eastern States has, however, been dispensed with. During
the year 2003-04 an amount of Rs 264.99 crore has been releas(.'d to th(' States/
VTs for covering over 20 lakh students.
The scheme has been revised from 1 April 2003. The modifications
include enhancement of rate of maintenance allowance for various cat('goril's
of courses, enhancement of other allowance such as study tour charges, thesis
typing/printing charges and book grant, revision of income ceiling to Rs one
lakh per annum for eligibility and merger of Book Bank Scheme with the
scheme.
COACHING AND ALLIED SCHEME
A scheme for providing coaching facilities to SC students through pn'examination training centres, to help them compet(' in various competitive
examinations having all-India recruitment character such as Civil Services
Examination (Prelim & Main), Entrance Examinations for Professional Courses,
Subordinate Services and Lowpr Services, Banking Recruitment Service and
Railwily Board, etc., has bt'eI1 implemented since Sixth Plan onward. Similar
schemes were also being impll'mented to provide coachmg filcilities to
students from the minority community and backward classes. With a view
to assist th(.' students belonging to the weaker sections in a better mantwr
and to facilitate implementation and monitoring, the existing schemes of
similar natme have been amalgamated. Apart from amalgamation, certllin
modifications in tilt' existing schemes have been ll1ilde to makl' Illt' scheme
more (ffective and result oriented. The reviewed schem(' which canll' into
effect from September 2001 is to be implemented by institutions of repute,
both Public and Private, which are running coaching courses and have

Welfare

727

achieved distinction. They are required to show results in terms of performance

of the candidates coached and even a system of reward has been built-in for
institutions achieving higher results. The selected institutions are paid on tIl(>
basis of course and number of students per course. The funding pattern is
90:10 basis with Central Government bearing 90 per cent of the expenditure
incase of courses run by NGOs, Universities and institutions running coaching
programmes. In case of institutions run by State Government, funding pattern
is on 50:50 basis, while in case of UTs, it is 100 per cent. During the year
2003-04, Rs 3.92 crore was released.

NATIONAL OVERSEAS SCHOLARSHIP

Under this scheme assistance is provided to meritorious Scheduled Castes
students for pursuing higher studies of Masters level courses, Ph.D., and PostDoctoral research programmes abroad in specified fields of Engineering,
Technology and Science only. Rate of maintenance allowance was enhanced
to US$ 8,200 and Pound Sterling 5,200 per annum per candidate. The
contingency allowance for books/essential apparatus/study tour/typing and
binding of thesis, etc., was also revised to US$ 550 and Pound Sterling 400
per iUUlum for candidates in UK. The scheme provides for pilssage visa fee,
equipnwnt allowance, incidentill expenses charged by institution as pN actual
and insurance premia, etc. The awardees are permitted to undertake research/
teaching assistantship. Financial assistance under the schemc is provided for
(\ maximum period of three years for Ph.D., and for three yems for Masters
programme. Students whose family is exceeds Rs 18,000 per month arc not
eligible for assistance and only one child of the same parents/guardians is
l'ligibl(' to get bendit under the scheme. The prospl'ctive award('e should not
be more than 35 years of age.

UPGRADATION OF MERIT FOR SC

The objectiv(' of the Schcm' is to upgrad(' the merit of Scheduled Caste
studl..'nts by providing them with facilities for all-round development through
education in residentiill schools. 100 per cent Centrill Assistance is released
10 Stales/UTs for arranging r{'mediill and special coaching for Scheduled
Castes and Scheduled Tribes students studying in classes IX to XII. While
rem('dial coaching aims at removing deficiencies in school subjects, special
coaching is provided with a view to preparing students for competitive
examin('ltions for entry into professional courses like engineering, medicine,
etc. Under this scheme, coaching is provided in linguistic skills, science and
mathematics. The number of awards in respect of eileh State/UT is predetern1ined under the Scl1l'Dle, but ('ilch State/UT will have a minimum of
five ilwards. A package grant of Rs 15,000 per ~~iU per student is gi.ven.
Students with disabilities will be eligible for ildciltlOl1al grants as prOVIded
for in the Scheme. During 2003-04, illl amount of Rs 1.85 crore was released
for this purpose.

HOSTELS FOR SC BOYS AND GIRLS

The mail, objective of the Scheme of Hostels {or Scheduled Castes Bo~s al~d
Girls is to provide hostel facilities to Scheduled Caste students studY1l1g

728

India 2005

middle, high and secondary schools; colleges and universities for enabling
them to pursue their studies in educational centres. Under this scheme
financial assistance is provided to the State Governments on 50:50 matching
share b<1sis (100 per cent to UTs) for the construction of hostel buildings for
up to lOO inmates, construction of boundary walls, two room set for hostel
warden and one room set for chowkidar. NGOs are given Central Assistance
for expansion of existing hostels on 45 per cent Central share, 45 per cent
State shan' and 10 per cent own contribution. A few rooms of the hostels are
to be constructed in accordance with barrier free designs and facilities like
ramps should be incorporated in the design so as to enable the disabled
studlnts to reside in them comfortably. Land has to be provided free of cost
by the Stdte/UT or belldiciilCY institution. During 2003-04, an amount of
Rs 55.75 crore was released for this purpose.
DR. AMBEDKAR FOUNDATION
The Found,ltion was set up on 24 March 1992 and has been entrusted with
the responsibility to manage, administer and carryon the scheme and
Programmes identified during the centenary celebration of Bharat Ratna Baba
Saheh Dr. B.R. AmbedkM. These are (i) Dr. Ambedkar National Public Library
in Delhi; (ii) Dr. Ambedkar Chairs in universities/Institute for research on the
thoughts c\l\d ideals of Baba Saheb; (iii) The Ambcdkar National Award for
social undl'rstclnding and uplift of weaker sections; (iv) Dr. Ambedkar
Internationrll AWc1rd for Social change, harmony, equity, justice and human
dignity for the exploited and the under privileged; (v) Publication of the
collected works of Baba Saheb Dr. Ambedkar in Hindi and other Indian
languages; (vi) Putting lip Memoricll for Dr. Arnbedkar at Alipur Road, Delhi;
<md (vii) various activities like orgclflising seminars, conferences, workshops,
exhibitions ilnd melas on Dr. Ambedkar's life ilnd mission. During 2002-04
Dr. Ambedkar Ndtional Scholarship Scheme for Meritorious Students belonging
to SC/ST was launched with the objective of recognising, promoting and
assisting meritorious students belonging to weaker sections for pursuing
high('r studies. Scholarship amounting to Rs 45.30 Jakh were distributed to
250 students during the hlst year.

SPECIAL CENTRAL ASSISTANCE

This Central scheme is the most important programme of the Ministry of
Social Justice and Empowerment for the alleviation of poverty among
scheduled castes people. The undlrlying objective behind Special CentrclJ
Assistance (SeA which provide~ cent-percent grant to States and Union
Territories as all additive to their speCitll component plans, is that it would
be used to give an added thrust to the development programmes for below
poverty line population of SCs. With rl'k'C('ncc to their ocl'llpational pattern
and the need for increasing the productivity of and income from their limited
resources by taking up family-oriented schemes for them. The SCA is used
to fill the critical gaps and vital missing inputs in family-oriented incomegenerating schemes so as to make the sclll~rnes more meaningful and effective.
This scheme was started in 1979-80 with a token provision of Rs five crore.

Welfare

729

The State governments and Union Territory administrations are required to

disburse Special Central Assistance to various sectors and agencies including
Scheduled Castes Development Corporations (SCDSs), which are involved in
the implementation of economic development programmes for scheduled
cases. State Governments/UT Administrations are required to prepare projects
covering activities which are technically feasible and commercially viable by
dovetailing subsidy upto a ceiling of Rs 10,000 and balance as loan from
NSFDC/Banks.
NATIONAL SCHEME OF LIBERATION AND REHABILITATION OF
SCAVENGERS
National Scheme of Liberation and Rehabilitation of Scavengers and their
dependents assists the scavengers towards their rehabilitation in alternate
occupations. The scheme was launched in M,uch 1992, whereby 100 per cent
Central assistance is provided for training of scavengers. Towards their
rehabilitation, the unit project cost is lip to Rs 50,000, which is financed by
w,'y of subsidy upto Rs 10,000. l5 ~)l'r cent margin money loan is shared
betwt'l'n the Central Government and State Governments in the ratio of 49:51
and the rest through bank loan. The conn'pt of sanitary marts was suggested
to States by forming viable groups of scavengers. The sanitary marts have
provided entrepreneurial opportunities to scavengers and are now functioning
profitably in the States of Andhrcl Pradesh, Chhattisgarh, Gujarat, Kflrnataka,
Maharashtra, Madhya Pmdesh, Orissa, Rajasthan, Uttar Pradesh and West
Bengal. The scheme has been trclilsferred to Ministry of Urban Development
and Poverty Alleviation.
STATE SCHEDULED CASTES DEVELOPMENT CORPORATION
The scheme for assistance to the state-level Scheduled Castes Development
Corporation (SCDCs) was introduced in 1978-79 to uplift the SC/ST population
living below the poverty line. At presl'nt SCDCs are functioning in 26 States/
Union Territories. The Centre contributes 49 per cent to the authorised share
capital of the SCDC against the 51 per cent contributed by the State
government. In 2003-2004, an amolmt of R.. 48.13 crore was released as
Government of India's contribution. A budget provision of Rs 49 crore has
been made for the year 2004-2005.
NATIONAL SCHEDULED CASTE FINANCE AND DEVELOPMENT
CORPORATION
The National Scheduled Caste Finance and Development Corporation (NSFDC)
was set-up by the Government of India on 8 February 1999 with the objective
of providing concessional finance for employment generation to the members
of Scheduled Castes living below the poverty line (Le., Rs 40,000 in rural areas
and Rs 55,000 in urban areas), skill development through training,
entrepreneurial development and innovative projects for the Scheduled Castes
peoples. The corporation has ,misted 59,826 beoeficiaries during the year

2003-Q4.

730

India 2005

In order to boost the coverage of Scheduled Caste Women, the Corporation

launched a new scheme namely, Mahila Samridhi Yojana (MSY) during the
year 2003-04 for providing loans up to Rs 25,000 per unit at the rate of four
per cent interest for Women beneficiaries. The Government of India has made
available Rs 324.20 crore to the Corporation as paid-up capital against the
authorised share capital of Rs 1,000 crore as on date. A budget provision of
Rs 15.10 crore has been made for the year 2004-2005.
NATIONAL SAFAI KARAMCHARIS FINANCE AND DEVELOPMENT
CORPORATION
National Safai Karamcharis Finance and Development Corporation (NSKFDC)
was set-up by the Government of India on 24 January 1997 exclusively for
the socin-economic upliftment of the Safai Karamcharis/Scav,engers and their
dependants by providing loans at concessional rates of interest for taking up
any income generating schemes/self-employment ventures, education loans
to students for professional or technical education of graduation-level and
above and trainings in skill and entrepreneurial development. The corporation
has covered 6,870 beneficiaries during the year 2003-04.
The Government of India has made available Rs 111.75 crore to the
Corporation as paid-up capital against the authorised share capital of Rs 200
crore as on date. A budget provision of Rs 20 crore has been made for the
year 2004-2005.
VOLUNTARY ORGANISATIONS
A number of voluntary organisations also receive funds from the Ministry
under the scheme. "Grant-in-aid to voluntary organisations working for SCs".
Among these, the organisations of all India character are: Harijan Sevak
5angh, Delhi; Ramakrishna Mission, Narendrapur; Ramakrishna Mission,
Puri, 5ilchar and Purulia; and Servants of Society, Pune in Maharashtra. The
Covernment also provides grants-in-aid to voluntary organisations of local
charactl~r working among-scheduled castes. During 2003-04, 365 voluntary
organisations were given grant-in-aid to the tune of Rs 24 crore.

DEVELOPMENT OF SCHEDULED TRIBES

The Ministry of Tribal Affairs was constituted in October 1999 to provide more
focused attention towards development of Scheduled Tribes. Carved out of
the Ministry of Social Justice and Empowerment, the Ministry of Tribal Affairs
is the nodal Ministry for overall policy, planning and coordination of
programmes and schemes for the development of Scheduled Tribes.
A majority of Scheduled Tribes continues to live below the poverty line
have poor literacy rates, suffer from malnutrition and disease and is
vulnerable to displacement. In general, populations in remote and low-density
areas do not have adequate access to affordable health care services, coupled
with high infant, child, and maternal mortality. In other words, they remain
one of the major under-served population groups in the coverage of
reproductive and child health services.

Welfare

731

A plethora of campaigns to promote education over since Independence

have failed to close the disparity in the literacy rate among Scheduled Tribes
hovering around 29 per cent as against the national rate of 52 per cent (1991
Census). The ST female literacy rate is only 18 per cent compared to the
national female literacy rate of 39 per cent. Alienation from the society, lack
of adequate infrastructure like schools, hostels and teachers, abject poverty
and apathy towards irrelevant curriculum have stood in the way of tribes
people getting formal education.
Proportion and number of tribal people in the states vary greatly. While
some of the States have as high as 95 per cent of its population as tribal
(Mizoram) there is none in Punjab, Haryana and UT of Chandigarh. Under
Tribal Sub-plan, the tribal areas in the country have been delineated. There
are now 194 integrated tribal development projects/agencies (ITDPs/ITDAs)
in the country in which lives more than 50 per cent of the total ST population
of the country. During the Sixth Plan, pockets outside ITDP areas, having a
total population of 10,000 with at least 5,000 scheduled tribes were covered
under the Tribal Sub-Plan under Modified Area Development Approach
(MADA). So far, 252 MADA pockets have been identified in the country. In
addition, 79 clusters with a total population of 5,000 having 50 per cent
scheduled tribes have been identified. There are 50 districts in the country
where tribal people constitute 20 per cent or more of the total population.
SPECIAL CENTRAL ASSISTANCE
The innovative strategy of the Tribal Sub-Plan (TSP) for STs was launched
during 1974. This special strategy was expected to ensure that all the general
development sectors, both at.fhe Central and State levels, earmark funds for
STs in proportion to their population so that adequate benefits from all the
concerned sectors flow to this disadvantaged group. In support of this special
strategy the Government of India has also been extending Special Central
Assistance (SCA) to the States and the UTs, as an additive to fill up the gaps,
especially in the family based income-generating programmes. As a result,
there has been a substantial increase in the flow of funds for the development
of STs besides enlargement of the share of benefits for STs under all the
development programmes.
Special Central Assistance is provided by the Ministry of Tribal Affairs
to 21 Tribal Sub-Plan State' Governments and two V.T. Administrations
including North Eastern States of Assam, Manipur and Tripura. However,
from 2003-04 the Ministry of Home Affairs is releasing the funds under SCA
to TSP meant for the UTs. The SCA is to be utilised in conjunction with the
TSP flow with a view to meeting the gaps, which are not otherwise taken
care of by the State Plan. The objective and scope of SCA to TSP which was
originally meant for filling up of the critical gaps in the family-based incomegeneration activities of the TSP, will now be expandt>d to cover the employmentcum-income generation activities and the infrastructure incidental thereto
which may not only be family-based, but also run by the Self-Help Groups
(SHGs)/Community. The ultimate objective of extending SCA to TSP is to

732

India 200S

boost the demand based income-generation programmes and thus raise the
economic and social status of tribals in sectors of agriculture, horticulture, land
reforms, watl'rshed development/ soil and moisture conservation, animal
husbandry, ecology and environment, development of forests/forest villages,
developmlnt of entrepreneurship and SSI and tribal women. Durin~
2003-04 an ilmount of Rs 461.30 crore was released to the States/UTs.

GRANTS UNDER ARTICLE 275 (1)

Tlw Constitution of India provides for assured special financial assistance
under its Arhd(' 275 (1) for promoting the welfare of STs and for raising tIll'
11'vl'I of admini-;tration of the Scheduled Areas to that of the rest of the State.
The ~linistry of Tribal Affairs releases grants to 21 Tribal Sub-Plan (TSP) and
four Tribal majority States under First Proviso to Article 275 (1) of the
Con .. titution to meet the cost of such projects for TribalLJevelopment as may
lw llndt'rtakl'n by till' Statl.' Government with the approval of Covernment
of Indid, tor reli .. in~ till' level of administration of the Scheduled Areas therein
to tll.lt of the rest of till' State. Funds are now being released against specific
inl r,lstrudurl' projech like roads, bridges, solelr dectrific,ltion, construction of
schonl, hostd build ill)..;, irrigation facilities, etc. During 2()(),1-04, Rs 252.70 crore
hilve bt'l'n pl'{lvidt'd to the States for infrastructure projects.
SillCl' 1997 -lJ8, ,I part of funds under Article 275( l) of ttll' Constitution
is also rl'l("lsed for settillg lip "Eklavya Model Residential Schools" to provide
quality l~dllcClti()n tn the tribal students. This will enable tlw tribal children
to dvail of till' fdcility of reservation in higher and professional l~ducationell
courses as well as in higher l(.'wls of jobs in the Govl'l'nment and Public Sl'ctor
undertakings. An "lllount of Rs 15.41 Cl'ore has been provided to the
State Governllll'nt for setting lip of Eklavya Model Residential &:hool., during
200:1-04.

SCHEME FOR PRIMITIVE TRIBAL GROUPS

BaSl'd on the pre-agriculturel! levt'i of technology, low level of litt:'rtlcy,
declining or stelgn<lllt population, 7") tribal communities in 15 States/Ul's, hclVl'
bl'l'n identified and categorised as Primitive Tribal Groups. A Central Sedor
Sdll'nw has been introduced for tlil-round development of these groups fWIII
IlJ98-99 under which fintllK'icll assistance is made av.liltlble to Integrated Trill'li
Ul'veiopment Projects, Tribal Research 1nstitutes i1l1d Non-Govemmented
Organisations for undertaking projects/ ,1Ctivities not covered by nny of till'
l'xisting schemes. Financitll assistance to the tW1e of Rs 16.13 crore has bt:'!'11
sanctioned under the schenll' during 200.1-04.

TRIBAL RESEARCH INSTITUTES

There arc fifteen Tribal Research Institutes (TRls) one each in Andhra Pradesh,
Ass(ll11, Bihar, Gujarat, Kemla, MadhYil Pradesh, MalMl'ashtra, Orissa, Rajasthan,
T,lmil N,1du, West Bengal, Uttar Prddeslt, Manipul~ Tl'ipura and Andaman and
Nicobelr Islands. The Ministry funded till' t~stablishlllcnt of the Tribal Research
Instituk tlt Po!'t Blair, Andaman and NkobM Islands, during 2002-03. These

WelfClre

733

Institutes provide plCllming inputs to the StClte Governments, conduct reseClrch

and evaluation studies, collect data, is involved in codifying of customary law
and conduct training, seminars and workshops. Some of thest' Institutes also
house museums for exhibiting tribal artifacts. During 2003-04, Rs 2.53 crore
was released to the State Governments/UT Administrations to support these
Institute!'>.
HOSTELS FOR ST GIRLS AND BOYS
Tribal children are deprived of education as the hamlets and villages they
reside in do not have such facilities. The Girls' hostels scheme was started
in the Third Five Year Plan with the aim of providing residential facilities
to tribal girls in pmsuit of education away from home. Central assistance of
50 per Ct~nt cost of construction to the States and 100 per cent to the Union
Tt.'rritorie~ is provided under the schenw. The Boys' Hostels scheme was
started in 1989-90 under the same path~rn as the Girls' Hostels. During 200304, an amount of Rs 18.15 crore was released for construction of 298 boys'
and 171 girls' hostcl&.
ASHRAM SCHOOLS IN TSP AREAS
This Centrally-sponsored scheme was started in 1990-91 to provide central
assistance to the States and Union Territories on 50 per cent and 100 per cent
basis respectively. During 2003-04, Rs 6.47 crore was sanctioned and released
for construction of 315 Ashram schools under the scheme.
VOCATIONAL TRAINING TO PROMOTE ENTREPRENEURSHIP
This schcnw under the Central Sector, introduced in 1992-93, aims at
developing the skills of the tribal youth in order to gain employment/self
employment opportunities. The scheme envisages setting up of vocational
training centres (VTCs). During 2003-04, an amount of Rs 5.18 crore was
released for 50 vocational training centres run by Non-Governmental
Organisations and 150 vocational training centres run by State Governments.
EDUCATION OF GIRLS IN LOW LITERACY POCKETS
This Scheme was launched in 1993-94 with the objective of raising theIiteracy
It.'vcl of tribal females ir\ 48 identified tribal districts in eight States with female
literacy below two per cent. This scheme was revised in July 1998 and now
covers 136 districts having female literacy of less than 10 per cent in 14 States.
The scheme envisages setting up of residential educational complex as from
first to fifth standard. The scheme is implemented through the voluntary
organisations and State Governments/UTs. During 2003-04, an amount of
Rs 5.73 crore was released for 183 complexes.

VILLAGE GRAIN BANK SCHEME

A Central Sector Scheme of Grain Banks in tribal villages was launched in
1996-97. The scheme was started on a pilot basis in selected areas out of the

734

In4ia2OO5

areas identified by CPC for preventive measures against deaths of children

in remote and backward tribal areas by providing a safeguard against fall
in nutritional standards of Scheduled Tribes living in remote rural areas. The
Ministry releases the funds through the Tribal Cooperative Marketing
Development Federation of India (TRIFED), which is the channelising agency
under the scheme. An amount of Rs 1.07 crore was released during 2003-04
under the scheme. Since inception, 1,483 Grain Banks have been set up in
the country. The existing Village Grain Bank is being revised with a broader
coverage of endemic drought prone areas and tribal areas.

GRANTS-IN-AID TO VOLUNTARY ORGANISATIONS

The Ministry gives grant-in-aid to voluntary organisations working for the
welfare of the scheduled tribes for projects like residential schools, hostels,
medical units, computer training units, shorthand and typing training unit,
balwadis/creches (in areas not covered by the ICDS programme), libraries and
audio-visual units. The grant is generally restricted to 90 per cent of the
approved total cost of the project and the balance 10 per cent is borne by
the grantee organisations. During 2003-04, an amount of Rs 26.46 crore was
released to 288 NGOs for implementation of approximately 900 projects.

POST-MATRIC SCHOLARSHIPS
The scheme was introduced in 1944 for providing financial assistance to SCI
ST students pursuing post-matriculation recognised courses including
professional, technical as well as non-professional and non-technical courses.
The scheme is implemented by State Governments and UT administrations
which receive 100 per cent financial assistance over and above the committed
liability. Rs 64.30 crore were released during 2003-04 benefiting an estimated
27 lakh ST students so far.

OTHER EDUCATIONAL SCHEMES

The Ministry of Tribal Affairs is also the implementing agency in respect of
National Overseas Scholarship for higher studies abroad, book bank, coaching
and allied areas and upgradation of merit for the benefit of ST students.

GRANT-IN-AID FOR MINOR FOREST PRODUCE OPERATIONS

This central Sector Scheme makes cent per cent grants available to the State
Tribal Development Cooperative Corporations (STDCCs), Forest Development
Corporations (FDCs), and Minor Forest Product (Trading and Development)
Federations (MFPTDFs) 'for taking up minor forest produce (MFP) operations,
a mainstay in tribal economy. Under this scheme grants can be utilised by
the States for (i) strengthening the share capital base of STOCCs for increasing
the volume of procurement of MFPSi (ii) construction of scientific warehouses;
(iii) establishing process industries for value addition to MFP items; and
(iv) research and development activities by the Corporations. An amount of
Rs 4.50 crore was released to different State Corporations during 2003-04.

Welfare

73S

AUTONOMOUS ORGANISATIONS
TRIBAL COOPERATIVE MARKETING DEVELOPMENT FEDERATION
OF INDIA LIMITED
Tribal Cooperative Marketing Development Federation of India Limited
(TRIFED) was set-up by the Government of India in 1987, with the prime
objective of providing marketing assistance and remunerative prices to ST
Communities for their minor forest produce and surplus agricultural produce
and to wean them away from exploitative private tradl~rs and middlemen.
The federation is a national level cooperative apex body.
NATIONAL SCHEDULED TRIBES FINANCE DEVELOPMENT
CORPORATION
The Government of India set up the National Scheduled Tribes Finance
Development Corporation (NSTFDC) in April 2001 by bifurcating the National
Scheduled Castes and Scheduled Tribes Financial Development Corporation.
NSTFDC is a Government of India undertaking with an authorised share
capital of Rs 500 crore.
The Corporation extends financial assistance to Scheduled Tribes at
concessional rate for income generating schemes costing up to 10 lakh per
unit, provides grants for skill development programme for STs and fill the
critical gaps by providing backward and forward linkages for activities
undertaken by the target group. Members of the Scheduled Tribes whose
annual family income does not exceed double the poverty-line income limit,
are eligible for financial assistance in the fields of agriculture and allied
activities, manufacturing and service sector activities.
A new scheme Adivasi Mahila Sashaktikaran Yojana has been introduced
from the year 2002-03. Scheduled Tribe women below the poverty line are
to be assisted for small economic activities to augment their income with a
loan of up to Rs 50,000 at an interest rate of four per cent annum. This scheme
is expected to benefit a large number of ST families living below the poverty
line.
MAJOR ACHIEVEMENTS
The Ministry of Tribal Affairs has taken some key initiatives since its creation
in 1999. A National Commission for Scheduled Areas and Sc!'teduled Tribes
was set-up as per provisions of Article 330 (1) of the Constitution of India
to report on the administration of the Scheduled Areas and the welfare of
the Scheduled Tribes in the States. This has been set-up after a gap of 40 years
(Dhebar Commission, the first one, was set-up in 1961).
A separate National Commission for the Scheduled Tribes has been setup with five Members by bifurcating the erstwhile joint National Commission
for Scheduled Castes and Scheduled Tribes.

736

India 20.0;;

Scheduled Af(~as have been notified for the newly created States of
Jharkhand, Chhattisgarh and Madhya Pradesh with its new boundaries.
Dtt(> to implementation of the provisions of the Panchayats (Extension
to Sch('duled Areas) Act, 1996 (PESA Act), STs have been politically empowered
in the nine major States-Andhra Pradesh, Jharkhand, Gujarat, Madhya
Pradesh, Chhattisgarh, Mahrashtra, Orissa, Rajasthan and Himachal Prildesh.
It implies that a total of 2,40,000 seats have been reserved for the Scheduled
Tribes in the three tier Panchayati Raj Institutions (PRls). At present 2,22,600
tribals have been elected.

~e objec~i~e

of exhibiting the contr~bution ~

the Ministry produced a feature fIlm . ua
premil'red in the presence of the former Prime Minister.

.) t, triba~ leader
, which was

IrS

Nearly 200 documentaries on various tribes of th(' country have been

produced or are under production. Every Friday at 9.30 A.M., one documentary
is telecast in a programme on DD-I titled "Janjatiya Darpan".
Increased allocation of funds for various schemes/programmes for tribal
dpvelopment from Rs. 692.75 crore in 1999-2000 to Rs 810 crore in 2000-01.,
Rs 1,040 crore in 2001-02, Rs 1,090 crore in 2002-03 and Rs 1,087 crore in 200304, representing an increase of about 56.91 per cent over the year 1999-2000.
Releases during the current year were more than 99 per cent of the RE. The
Rudgd allocation for 2004-05 is Rs 1,146 crore.
A lWW Scheduled Tribes Finance and Development Corporation
(NSTFDC) was set up with an authorised share capital of Rs 500 crore, as
an ap('x institution for financing economically viable projects for Scheduled
Tribes. Since its inception on 10 April 2001, loans to the tune of Rs 60.24 crore
in 2001-02, and Rs 98.98 crore in 2002-03 were released to tribal enterprises.
Besides, financial assistance of Rs three crore was sanctioned to TRIFED for
providing marketing support to Minor Forest Produce (MFP) and Surplus
Agricultural Produce (SAP) that is expected to benefit 2,90,430 STs. The
Corporation disbursed Rs 27.50 crore, during the year 2001-02 and Rs 42.16
crore during the year 2002-03. The amount disbursed during 2003-04 was
}{s 35.72 crore. Further, Rs 2.65 lakh was released as grants during this period
for imparting training to the target group in the State of Orissa.
A new scheme titled "Adjvasi Mahila Sashaktikaran Yoian~" was
launched through NSTFOC for extending financial assistance up to Rs 50,000
to the eligible Scheduled Tribe women at a more subsidised interest rate, a
maximum up to four per cent.
The Parliament passed the Scheduled Castes and Scheduled Tribes Order
(Amendment) Act, 2002. This Act provides for inclusion/exclusion/modification
of 270 communities in the lists of Schedules Tribes. Revision on such a scale
has been undertaken after more than 25 years.
The Ministry adopted a project approach for funding projects under
Article 275(1) of the Constitution for selecting schemes based on more
integrated and holistic planning.

Welfare

737

Allocation for grants under Article 275(1) of the Constitution increased

from Rs 200 crore to Rs 300 crore.
Funds were provided to State Governments for construction/improvement
of about 1,900 kID of roads in tribal areas, 250 staff quarters for schools, 312
school and hostel buildings, 2,100 class rooms, 126 community centres, and
also for drinking water facility, rural electrification, culverts/causeways, rural
irrigation projects and astro-turf grounds.
Released grants for construction of 88 Eklavya Model Residential
Schools, thereby creating 36,960 seats from Class VI to XII for imparting
quality education to ST students and at the same time providing employment
for around 1,230 teachers.
Provided Post-Matrie Scholarships for pursuing Post-Matriculation courses
including professional, technical and non-professional/non-technical courses
benefiting more than 27 lakh students about 5.5 lakh students per annum).
The scheme has been revised and rates of scholarship have been increased
from 1 April 2003
Sanctioned construction of 298 boys' and 171 girls' hostels having 18,471
and 20,010 seats respectively and created employment for around 2,345
persons.
The ministry has sanctioned construction of 315 Ashram Schools having
24,300 seats and employment opportunities for 3,150 persons in the last four
years.
For promoting education among tribal girls exclusively in 74 districts
having female literacy rate below 10 per cent as per 1991 census, 183
Educational Complexes have been set up. In these complexes over 20,000 girls
are enrolled annually. These educational complexes provide employment to
approximately 915 teaching and same number of non-teaching personnel.
Increase in the level of Special Central Assistance (SeA) to the Tribal
Sub Plan (1'SP) from Rs 400 crore in the year 1999-2000 to Rs 500 crore in
the year 2001-02 and to Rs 500 crore in the year 2002-03 and Ro; 497 crore
in the year 2003-04, represent an increase of 24.25 per cent over the year
1999-2000.
Provided special assistance to the tune of Rs 163.36 crore for the
development of infrastructure in the three newly created States of Chhattisgarh,
Iharkhand and Uttaranchal.
A new Scheme titled "Exchange of Visits by Tribals" was launched for
providing wider exposure and experience sharing to the tribals by visits to
the more developed areas of the country.
As many as 225 NGOs were extended finandal assistance worth Rs 17.84
crore by the Ministry during 1999-00. During 2000-01, the number of NGOs
funded and amount of funds released to 275 NGOs and Rs 23.86 crore. During

,
India 2005

738

2001-02, the amount of funds released was Rs 28,976 crore to 155 NGOs.
During 2002-03, 392 NGOs were funded and funds amounting to Rs 30.38
crore were released. During 2003-04, Rs 26.46 crore grant was released to 288
NGOs. To bring transparency in sanction of projects to non governmental
organisations, the Ministry has constituted a Project Screening Committee with
members drawn from other Ministries and also from leading personalities
actively involved in the field of social welfare. The committee is empowered
to recommend deserving proposals for consideration of sanction.
The number of projects under the scheme being implemented through
NCOs has increased to more than 900 from 306 projects sanctioned during
1999-2000. Through the NGO run projects of the Ministry: (a) Over 0.25 lakh
tribal students are availing the benefits of free education from 106 Residential
School, 56 Non-Residential School and 95 hostels annually. Approximately
1,115 teaching and over 2,000 non-teaching personnel are employed in such
schools and hostels. (b) Over 1,000 tribal students are receiving computer
education through Computer Training Centres. These Computer Centres are
providing employment to approximately 90 computer trained personnel and
90 other supporting staff. (c) 50 Vocational Training Centres (VTCs) have been
set up through NGOs to train approximately 5,000 tribals in various trades
having local employment potential. These VTCs provide employment to
approximately 300 training personnel of different trades and 200 supporting
staff. This is in addition to 150 VTCs sanctioned to the State Governments,
which provide training to 9,000 ST youths, and provides employment to 15,000
people. (d) More than 25,000 tribal patients are being treated through 28
hospitals and 90 mobile dispensaries set up with the grants of the Ministry
annually. These hospitals and mobile dispensaries are providing employment
to approximately 250 doctors, 1,000 para medical personnel and approximately
750 other supporting staff. (e) Besides the above, approximately 1.5 lakh tribes
are availing the benefits of other programmes like mobile library, typing and
shorthand training centres, rural night schools, training in agriculture and
allied subjects, etc., and in running these programmes approximately 1,000
personnel are engaged.
In order to secure higher earnings and generate employment opportunity
to the tribals, the tribal Cooperative Marketing and Development Federation
of India (TRIFED) procures and markets minor forest produce and surplus
agriculture produce. Procurements of goods worth Rs 76.67 crore in 1999-2000,
Rs 83.40 crore in 2000-01, Rs 41.04 crore in 2001-02 and Rs 25.03 crore in 200203 was made in tribal areas.

An informative and detailed, bilingual website of the Ministry was

launched on 21 August 2002.
Financial assistance of Rs seven crore was provided for protection and
conservation of archaeologically important sites of martyrdom of tribal
leaders.

..

The Ministry has also tied-up with bilateral and multilateral agencies
for international cooperation in the field of tribal development. A few projects
are under implementation.

Welfare

739

The Government is according priority for the development of Scheduled

Tribes. As announced by the former Prime Minister on Independence Day,
2003, the Ministry of Tribal Affairs will launch new Developmental and
welfare initiatives for the Scheduled Tribes. These will include construction
of hostels for boys and girls in all districts, which have a significant tribal
popUlation; measures to promote tribal culture; steps to honour legendary
tribal leaders and construction of an Adivasi Bhawan in New Delhi.
I

)WELFARE OF OTHER BACKWARD CLASSES

The Constitution of India beneficially recognises the existence of a category
of India's people called the "Socially and Educationally Backward Classes"
or backward classes other than SCs and STs. Recognising the relative
backwardness of these weaker sections, the Constitution guarantees equality
before law through Article 14 and enjoins the State to make special provisions
for their advancement through Article 15(4). It also empowers the State to
make provisions for reservation in appointments or posts in favour of any
backward classes of citizens through Article 16(4) that in the opinion of the
State, is not adequately represented in services under the State. The Government
has taken various steps fOI the socio-economic empowerment of the backward
classes through implementation of schemes for educational development and
concessional financial assistance for supporting economic activities.
NATIONAL COMMISSION FOR BACKWARD CLASSES
The National Commission for Backward Classes (NCBC) Act, 1993 was
enacted on the direction of the Supreme Court to set up a permanent body
for entertaining, examining and advising the Government on requests for
inclusion and complaints of over-inclusion and under-inclusion in the lists of
Other Backward Classes (OBCs) of citizens. As per the provision of the Act,
the advice tendered by the Commission shall ordinarily be binding upon the
Government.
EDUCATIONAL DEVELOPMENT
The Government has launched the following Schemes in the year 1998-99 for
the welfare of OBCs:
Pre-matric Scholarship: Scholarships will be sanctioned to students whose
parents' / guardians' income does not exceed Rs 44,500 per annum. The
scholarships are given to the students in class I or any-subsequent class of
per-matric stage who are day-scholars and class III or any s~bsequent class
of pre-matrie stage who are hostellers. The scholarship will be applicable to
the institutions recognised by the concerned State Government/UTs. The
Central Assistance will be 50 per rent. An amount of Rs 17 crore was released
under the scheme to States of Andhra Pradesh, Assam, Gujarat, Karnataka,
Rajasthan, Tripura and Uttar Pradesh during 2003-04 covering 15,95,736
beneficiaries.
POit-Matric Scholanhips: The scheme provides financial assistance to the
OBC _udents at post-matriculation/post-secondary stage to enable them to

740

India 200s

complete their education. Hundred per cent Central assistance for the
scholarship is provided to the State Government/UTs to which the applicant
belongs. Students whose parents' / guardians' income does not exceed
Rs 44,500 per annum are entitled for scholarships. An amount of Rs 23.99
crore was released under the scheme to Assam, Andhra, Goa, Gujarat,
Karnataka, Orissa, Rajasthan, Tripura, Uttaranchal and Uttar Pradesh in 200304 covering 2,34,589 OBC students.
Hostels for OBC Boys and Girls: The hostels under the scheme will be
constructed in States/UTs having a large OBC population but inadequate
hostel facilities. The hostels will be constructed for middle, secondary, college
and university level students. At least one-third of the hostels to be set-up
will be exclusively for girls. Five per cent of the total seats will be reserved
for disabled students. The scheme would, however, not cover students
belonging to the creamy layer. Central assistance for construction will be 50
per cent and the remaining cost will be borne by the concerned State
Government. Hundred per cent Central assistance will be given to the Central
Government institutions and UTs setting up such hostels. The expenditure on
procurement of land, staffing and other maintenance shall be borne by the
State Government/UT concerned. An amount of Rs 10.20 crore was released
under the scheme to Andhra Pradesh, Assam, Jammu and Kashmir, Karnataka,
Orissa, Sikkim, Tamil Nadu and Uttar Pradesh in 2003-04 for construction of
60 hostels benefiting 4,061 OBC students.
Assistance to Voluntary Organisations for Welfare of OBCs: The scheme
involves the voluntary sector to improve educational and socio-economic
conditions of the OBCs to get them gainfully employed. Assistance will be
given to establish centres and develop services, which equip the OBCs to start
income generating activities., An amount of Rs 4.47 crore was released under
the scheme to 212 projects run by Non-Government Organisation in 2003-04
covering 10,156 beneficiaries.

ECONOMIC DEVELOPMENT
NATIONAL BACKWARD CLASSES FINANCE AND DEVELOPMENT
CORPORATION
The National Backward Classes Finance and Development Corporation
(NBCFDC) has the objective of providing concessional finance to the members
of the backward classes with annual income less then double the poverty line,
(Rs 40,000 p.a. in rural areas Rs 55,000 p.a. in urban areas) for their socioeconomic development by extending them loans for income generating
schemes. The Corporation undertakes to provide additional channel of finance
to backward classes for economically and financially viable schemes and
projects; and upgrade the technological and entrepreneurial skills of individuals
or groups belonging to Backward Classes. NBCFDC assists a wide range of
income generating activities which include agricultural and allied activities,
artisan and traditional occupations, technical trades, self-employment, smallscale and tiny industry, small business, transport services, etc.

Welfare

741

The Corporation has disbursed Rs 898.58 core till 2003-04 for 5,48,042
beneficiaries. The Government of India has made available Rs 402.40 crore
to the Corporation as paid-up capital towards the authorised share capital
of Rs 700 core as on date. A budget provision of Rs nine crore has been made
for the year 2004-2005.

WELFARE OF MINORITIES
The Government has notified five communities namely, Muslims, Sikhs,
Christians, Buddhists and Zoroastrians as minorities at the national level. As
per Census of India 2001, a minorities group constitutes 18.50 per cent of the
total population of the country. The constitution of India protects the interests
of minorities and recognises their rights to conserve their languages, scripts
or culture and establish and administer educational institutions of their choice.
To l~valuate the working of the various safeguards in the Constitution
for the protection of religious minorities and to make recommendations to
ensure effective implementation and enforcement of all the safeguards and
laws, a Minorities Commission was set up in January 1978. The Commission
reviews the implementation of policies of the Union and the State governments
towards minorities and submits annual reports to the Government. The
National Commission for Minorities Act, 1992 has been passed by the
Parliament. Under this Act, the National Commission for Minorities has bel'n
constituted on 17 May 1993 with statutory status replacing the erstwhile
Commission. The Commission has a Chairperson, a Vice-Chairperson and five
members to be nominated by the Central government from amongst persons
of eminence, ability and integrity. The National Commission has been
reconstituted with effect from 21 January 2000.
The Commissioner for Linguistic Minorities appointed under Article
350-B of the Constitution inwstigates all matters relating to the safeguards
provided for linguistic minorities. He looks into representations and complaints
received from various associations and individuals belonging to linguistiC
minorities. The Commissioner's headquarter is at Allahabad, with regional
offices at Kalkata, Belgaum and Chennai. So far 36 reports of the Commission
have been laid before the Parlinment.
The 1S-Point Programme for Welfare of Minorities is based on three
pronged approach, namely (i) t.o tackle the situation arising out of communal
riots and also to prevent communal riots; (ii) ensuring adequate representation
of the minority communities in employment under the Central and State
governments as well as Public Sector Undertakings; and (iii) other measures
aimed at socio-economic development of Minorities. The programme is being
implemented by the State Governments and Union Territories and the
concerned Central Ministries/Departments. Action is being taken to recast the
ongoing IS-Point Programme so as to make it a more effective instrument
for the welfare of minorities.
For improving the employability of minorities in public ~m~loyment ~nd
increasing their intake in professional courses, a pre-exammatlon coachmg

.'

742

India 2005

scheme is being implemented by the Ministry of Social Justice and

Empowerment since 1992-93.
NATIONAL MINORITIES
CORPORATION

DEVELOPMENT

AND

FINANCE

The Government has set up a National Minorit:~s Development and Finance

Corporation with an authorised share capital of Rs 500 crore. The Corporation
would provide economic and developmental activities for the benefit of
backward sections among the minorities, preference being given to occupational
groups and women among minorities. The Government of India has raised
the level of its contribution from Rs 125 crore to Rs 300 crore subject to prorata contribution from the State governments/UT Administrations towards
the share capital of the Corporation. Under State Channelising Agency
programme by 31 August 2004, NMDFC has given financial assistance to
1,45,443 beneficiaries spread over 24 States and 3 Union Territories with an
amount of Rs 551.05 crore. NGO progmmme is being implemented by
NMDFC since 1998-99. Till 31 August 2004, a total disbursement to the tune
of Rs 15.20 crore has been made under the micro financing scheme for 65,329
beneficiaries.
WAKFS
~ are

a permanent dedication of movable or immovable pro~rt!.~ for

purposes recognised by the Muslim-Law as religious, pious or
aritable.
-Aj:.;a-rf-fr~~n1-;eligious '"aspect-:--thew"'Fs are also instruments of social and
economic upliftment. Better management of these institutions and fuller
realisation of their objectives contribute to development and progress of the
society. These relate to legislation to strengthen the effectiveness of the Wakf
law ensuring early completion of survey of Wakf properties by the State
Governments.

THE WAKF ACT, 1995

Administration of Central Legislation for Wakfs is the responsibility of the
Ministry of Social Justice and Empowerment. In order to further strengthen
the administration of Wakfs a fresh piece of legislation was passed by
Parliament and enacted during 1995. This is known as the Wakf Act, 1995.
With its enforcement in the country from 1 January 1995 the earlier Central
Laws on Wakf, namely, the Wakf Act, 1954 and the WakE (Amendment) Act,
1984, stand repealed. The new Waf( Act, 1995 extends to the whole of the
country except the State of Jammu and Kashmir. It envisages a decentralised
set-u~d also provides for democratisation of the Wakf Boards. While
(Muta
(Manager) of each individual Wakf retains his autonomy in the
discharge of his responsibilities, general superintendence of all WakEs in a state
vests in the Wakf Board, set up by each State Government which has to ensure
that the Wakfs are properly maintained and administered and that their
income is duly appointed to objectives for which such Walds were created.
Overall supervision of the WakE Boards vests in the concerned State government,

Welfare

743

which apart from appointing members of the Board and its Chief Executive
Officer (Secretary), also receives the annual budget of the Board and appoints
auditors for auditing its accounts. It also has powers to issue directions to
the Board and, in certain cases, supersede it. The Central government has
powers to coordinate the functions of the Central Wakf Council and the State
WatL-,Boards in so far as these relate to secular activities of the Wakfs. The
Central Government has power to coordinate the functions of the Central
Wakf Council and the Sates Wakf Boards in so far as these relate to secular
activities of the Wakfs. The Central Government is advised on matters relating
to administration of Wakf and working of Wakf Bords in the country by a
statutory body known as Central Wakf Council which is headed by the Union
Minister in charge of the subject of Wakf. It was constituted on 26 June 1997
and again on 1 May 2003 with 19 members under the provision of the Wakf
Act, 1995. The Ministry of Social Justin' and Empowerment released a grantin-aid of Rs 158 lakh during the financial year 2003-04 to the Central Wakf
Council for the development of the Urban Wakf Properties under Non-Plan.
For the year 2004-05, the budget estimate for this scheme is also Rs 170 lakh.
The Central Wakf Council further advance the loan to the Wakf Properties
as recommended by the State Wakf Boards. The Central Wakf Council also
runs some Educational Schemes like scholarship to poor students, Technical/
Professional Diploma Courses, grant for I.T.ls and financial assistance for
Vocational Training Centres and others.
DURGAH KHWAJA SAHEB
The internationally ~ Wakf, namely, Durgah of Hazarat Khwaja
Moinuddin Chisti a~is governed by the Durgah Khwaja Saheb Act,
1955. This endowment is managed by a Centrally appointed com~own
as Durga Committee which is assistl'd by an officer known a~ The
Committee has its own funds and, among other things, looks after the welfare
of devotees visiting the Durgah. It runs two dispensaries and has constructed
a multi-storied guest-house complex to provide accommodation at economical
rates to pilgrims. Up to October 2001, an amount of Rs 10.07 crore was
received by way of donations, contributions and rent from Durgah Guest
House. The Durgah Committee approved a budget of Rs 2.02 crore towards
expenditure on upkeep and maintenance of Durgah Sharif during 2001-02.
MAULANA AZAD EDUCATION FOUNDATION
Maulana Azad Education Foundation has been set up as a society with the
objective of promoting education amongst the educationi'llly backward sections
of the society minorities in particular and others in gener~ GOie:sent
is giving grants-in-aid to the Foundation for building u.p ~ pus dU
for
financing its different activities. Presently, the Fou~dahon has' a .corpus fund
of Rs 70.01 ClOre. Since its inception, the FoundatIon has sanctioned grantin-aid amounting to Rs 68.99 crore to 520 NGOs/Local Bodies all over the
country. During the year 2003-04, the Foundation has sanctioned grant-in-aid
of Rs 3,81,SO,000 for 46 NGOs/Local Bodies.

744

India 2005

RESERVATION IN SERVICES

Reservation is given to Scheduled Castes (SCs), Scheduled Tribes (STs) and

Other Backward Classes (OBCs) in services under the control of Government.
Reservation is also provided to persons with disabilities and ex-servicemen
in certain categories of posts. The quantum of reservation for SCs, STs, and
OBCs in direct recru~t t on all-India basis by open competition is 15 per
cent, 7.5 per cent an 27. per cent respectively. In direct recruitment on aHIndia basis otherwise t an by open competition, reservation is 16.66 per cent
for SCs, 7.5 per cent for STs and 25.84 per cent for OBCs. In case of promotion
SCs and STs get reservation at the rate of 15 per cent and 7.5 per cent
respectively. There is no reservation for OBCs is case of promotion. Three per
cent of vacancies are kept reserved for persons with disabilities. Ten per cent
of the vacancies in the posts of the level of Assistant Commandant in all paramilitary forces, 10 per cent of the vacancies in Group-C posts and 20 per cent
of the vacancies in Group-D posts are reserved for the ex-servicemen. While
reservation for SCs, STs and OBCs is vertical, reservation for persons with
disabilities and ex-servicemen is horizontal.
Article 341 and 342 of the Constitution define as to who would be the
SCs and the STs with respect of any State or Union Territory. The Government
has prepared a list of OBCs. The inter-state area restrictions have been
imposed so that the people belonging to the specific community residing in
it specific area which has been assessed to qualify for SC, ST and OBC status
only benefit from the facilities provided for them. Definition of 'ex-servicemen'
for the purpose of getting reservation in services is contained in Ex-servicemen
(Re-employment in Civil Services and Posts) Rules, 1979 and conditions for
reservation to persons with disabilities are given under the Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full Participation)
Act, 1995.
To ensure that reserved vacancies are filled by candidates belonging to
appropriate category, certain relaxations and concessions like relaxation in
upper age-limit, etc., are provided. Liaison officers have been appointed for
SCs/STs and OBCs in each Ministry/Department to ensure proper
implementation of reservation policy for them.
The representation of SCs/STs in Central Government services as on
1 January 2002 is given below:
Group

lota!

SC

Per cent

99,099

10,983

11.09

3,928

3.97

l,87,O33

26,336

14.08

7,811

4.18

21.41.879

3,45,358

16.12

1,27,074

5.93

9,53,300

1,91,356

20.07

67,949

7.13

(Excluding
Sweepers)

!'iT

Per cent

Welfare

745

Sweepers

1,18,601

77,354

65.22

7,361

6.21

Tot,,1
(Excluding
Swt'epers)

33,!H,221

5,74,033

16.98

2,06,752

6.11

liltal

34,99,822

6,51,387

18.61

2,14,113

6.12

(Including

Swecpl'rs)

The Scheme of reservation is being followed by public sector undertakings

including nationalised public sector Banks. State governments have also
provided for reservation of posts for SCs, STs and OBCs, etc., and have taken
steps to increase their representation in State services. Reservation in State
government services, however, is under the exclusive jurisdiction of respective
State governments.

rcJ\.)Y

WELFARE OF PERSONS WITH DISABILITIES

According to the survey c(\fried out by th(. National Sample Survey Organisation
in the year 2002 the estimated number of persons with disabilities is 1.85 crore
which constitute 1.8 per cent of the population. Estimates by different types
of disabilities are : (i) Locomotor-l06.34 lakh; (ii) Hearing-30.62 lakh; (iii)
Specch-21.55 lakh; (iv) Blindness-20.13 lakh; (v) Low Vision-8.13 lakh; and (vi)
Mental Retardation-9.95 lakh.
According to the results of Census-20m there are 2.19 crore persons with
disabilities which constitute 2.13 per cent of population.

PERSONS WITH DISABILITIES ACT, 1995

A comprehensive law, namely, the Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full Participation) Act, 1995 has been
enacted and enforced in February 1996. The law deals with both prevention
and promotion aspects of the rehabilitation such as education, employment
and vocational training, creation of barrier-free environment, provision of
rehabilitation services for persons with disabilities, institutional services and
supportive social security measures like unemployment allowance and
grievance redressa) machinery both at the Central and State-Level.

NATIONAL INSTITUTES
In order to effectively deal with the multi-dimensional problem of the disabled
population, the following National Institutes/ apex level Institutes have been
set-up in each major area of disability: (i) National Institute for the Visually
Handicapped, Dehradun, (ii) National Institute for the OrthopaedicallyHandicapped, Kolkata, (iii) Ali Yavar Jung National Institute for the Hearing
Handi.capped, Mumbai, (iv) National Institute for the Mentally Handicapped,
Secunderabadi (v) National Institute for Rehabilitation Training and Research,
Cuttack, (vi) Institute for Physically Handicapped, New Delhi.

746

India 2005

NATIONAL TRUST FOR THE WELFARE OF PERSONS WITH AUTISM,

CEREBRAL PALSY AND MENTAL RETARDATION AND MULTIPLE
DISABILITIES
The National Trust is a statutory body under the Ministry of Social Justice
and Empowerment, set-up under "The National Trust for the Welfare of
Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disabilities Act, 1999". The basic objectives of the Trust are to enable and
empower persons with these disabilities to live independently and to protect
their interest through guardianship.

REHABILITATION COUNCIL OF INDIA

The Rehabilitation council is a statutory body under the Rehabilitation Council
of India Act, 1992. The Council is responsible for regulating training policies
and programmes for various categories of professionals in the area 0:
disability. Its functions include (i) standardisation of training courses at
different levels (ii) regularisation of standards of training in all the training
institutions, throughout the country (iii) recognition of institutions/universities
for their training courses within and outside the country on a reciprocal basis
and (iY) maintenance of a Central Rehabilitation Register for prof('ssional
processing the recognised gualifications in the area of rehabilitation.

OFFICE THE CHIEF COMMISSIONER FOR PERSONS WITH DISABILITIES

The Chief Commissioner is an important statutory functionary, appointed
under Section 57 of the Persons with Disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1995. The functions and duties
of the Chief Commissioner include coordinating the work of State
Commissioners for persons with disabilities, monitoring utilisation of funds
disbursed by the Central Government, taking steps to safeguard rights and
facilities made clVailable to persons with disabilities and also to look into
complaints with respect to deprivation of rights of persons with disabilities.

ARTIFICIAL LIMBS MANUFACTURING CORPORATION OF INDIA

The Artificial Limbs Manufacturing Corporation of India /(AlIMCO), Kanpur
was registered under Section 25 of the Companies Act, 1956 on 25 November
1972 as a Government company. The products manufactured by the Corporation
conform to lSI standards approved by the Bureau of Indian Standards.
Marketing of products is done through Regional Marketing Centres at Kolkata,
Mumbai, Chennai, Bhubaneswar apd Delhi and also through National
Institute~, voluntary organisations, 'tri'dividuals, etc. It has been given ISO
9001:2000 certificate.

COMPOSITE REGIONAL CENTRES AND REGIONAL REHABILITATION

CENTRE
Five Composite Regional Centres (CRs) for the Persons with Disabilities have
been established at Srinagar, Lucknow, Bhopal, Sundernagar and Guwahati.
The centres conduct training programmes to generate profeSSionals in the field

Welfare

747

of rehabilitation as well as provide rehabilitation services to the disabled. Four

Regional Rehabilitation Centres for Spinal Injuries and other Orthopaedic
Disabilities at Mohali, Cuttack, Jabalpur and Bareilly are providing services
for basic management and follow-up of the spinally injured so as to make
the affected persons functionally independent.

NATIONAL HANDICAPPED FINANCE AND DEVELOPMENT

CORPORATION
The National Handicapped Finance and Development Corporation (NHFDC)
is an apex-level financial institution for routing funds through the channelising
agencies authorised by the State Govemments/UT Administrations and
through Non-Government Organisations for the economic empowerment of
the persons with disabilities through financing self-employment ventures. It
also extends loans for pursuing education at graduate and higher levels.
Besides, it assists in the upgradation of technical and entrepreneurial skills
to enable beneficiaries to manage their production units efficiently.

SPECIAL EMPLOYMENT EXCHANGES

The basic objective of this scheme is to help the persons with disabilities ;n
getting gainful employment either through Spt.'Cial Cells in normal Employment
Exchange or Special Employment Exchanges for the persons with disabilities.
The financial assistance from the Central Government is 100 per cent in the
case of Special Cells and 80 per cent in the case of Special Employment
Exchanges.

DEENDAYAL DISABLED REHABILITATION SCHEME

The Ministry is implementing the Deendayal Disabled Rehabilitation Scheme
formerly known as the "Scheme to Promote Voluntary Action for persons with
disabilities". Under this scheme, assistance is extended to NGOs for undcttaking
activities for welfare of persons with disabilities such as special schools,
vocational training centres, community based rehabilitation programmes, etc.
This Ministry facilitates delivery of various rehabilitation services to persons
with disabilities by public institutions and voluntary organisations by affording
financial assistance and technical and administrative support under the
scheme to enlarge the scope of vocational and professional opportunities,
income generation through gainful occupation and promotes formal as well
as non-formal employment a~d placement opportunities. Under this scheme
Rs 71.06 crore were released to over 650 NGOs in 2003-04. More than 350
special schools and 140 vocational training centres are being run under this
scheme. Funding of District Disabled Rehabilitation Centres which have
completed 3 years ot operation has also been brought under the ambit of this
scheme tor the year 2004-05.

SCHEME OF ASSISTANCE TO DISABLED PERSONS FOR PURCHASE/

FITTING OF AIDS AND APPLIANCES
The objective of the Scheme is to assist needy and disabled persons in

748

India 2005
,

procuring-durable, sophisticated and scientifically manufactured, standard

aids and appliances that can promote their physical, social and psychological
rehabilitation by reducing the impact of disability and enhancing their
economic potential. The scheme is implemented through agencies like
voluntary organisations, National Institutes under the Ministry, ALIMCO, Zila
Pachayats, ORDAs, etc. The implementing agencies are provided grant-in-aid
for purchase, fabrication and distribution of aids and appliances. The scheme
also includes under its ambit medical/surgical correction and intervention that
may be essential prior to fitment of aids and appliances.
Under the ADIP Scheme, 100 per cent financial assistance is provided
to the implementing agencies. Only those aids and appliances that do not cost
less than Rs 50 and more than 6,000 are covered under thl~ scheme. However,
for students with disabilities the limit is Rs 8,000 during their study up to
12th standard. Aids and appliances an! provided free-of-cost if the income
of the disabled beneficiary or his guardian is up to Rs 5,000 p.m. and 50 per
cent of the cost is recovered if the income of the beneficiary is between
Rs 5,000 to Rs 8,000 p.m.
NATIONAL PROGRAMME FOR REHABILITATION OF PERSONS WITH
DISABILITIES
To provide rehabilitation services and referral advice to persons with
disabilities and their families living in rural and remote areas, the Nation,,1
Progrilmnw for Rehabilitation of Persons with Disabilities has been formulated.
Through the scheme, it is envisaged to provide rehabilitation services from
the grassroots level and upwards. 82 districts have been selected throughout
the country for implementing the scheme. This Scheme has been transferred
to the States form 2002-03 since it is State Sector Scheme.

SOCIAL DEFENCE AND CHILD WELFARE

INTEGRATED SCHEME OF STREET CHILDREN
A large number of street children suffer destitution, neglect, abuse and
exploitiltion due to circumstances beyond their control. Due to a variety of
reasons, basic urban services do not reach in an effective and integrated
manner. A revised programme known as An Integrated Programme for Street
Children" is in operation since 1998-99. A wide range of initiatives relating
to street children can be supported including those relating to shelter,
nutrition, health CMe, sanitation and hygiene, safe drinking water, education,
recreational facilities and protection against abuse and exploitation.
II

Voluntary organisations engaged in the welfare and development of

street children were being provided to the extent of 90 per cent of cost of
each project by the Government of India with the remaining 10 per cent being
met by the voluntary organisation. The expenditure incurred during 2003-04
was Rs 9.90 crare.

Welfare

749

PROGRAMME FOR JUVENILE JUSTICE

The Juvenile Justice (Care and Protection of Children) Act, 2000 (an amendment
of the Juvenile Justice Act, 1986) is the primary law relating to juveniles in
conflict with law and children in need of care and protection. The Ministry
provides assistance to State Governments/UT Administrations for establishment
and maintenance of observation homes and juveniles in conflict with law. The
expenditure incurred under this programme during 2003-04 was Rs 16.39
crore.

PROGRAMMES FOR CARE OF OLDER PERSONS

Demographic ageing is a global phenomenon. With a comparatively young
population, India is still poised to become home to be second largest number
of older persons in the world. The population of the elderly is at present
estimated at 7.6 crorc. Project studies indicate that the number of 60+ in India
will increase to 10 crore in 2013 and to 19.8 crore in 2030. Tlw profile of the
elderly population in India indicates that: (a) a majority 80 per cent of them
are in till' rural areas, thus making service delivery a challenge, (b) feminisation
of thl' elderly population (By the year 2016, 51 per cent of the elderly
population would be women), (c) increase in the number of the older-old
(persons above 80 years) and (d) a large percentage (30 pcr cent) of the elderly
an' below poverty line.

NATIONAL POLICY FOR OLDER PERSONS

The National Policy for Older Persons (NPOP) was announced in January 1999
with the primary objective, viz., to encourage individuals to make provision
for their own as well as their spouse's old age; to encourage families to take
care of their older family members; to enable and support voluntary and nongovernmental organisation to supplement the care provided by the family;
to provide care and protection to the vulnerable elderly people, to provide
health care facility to the elderly; to promote research and training facilities
to train geriatric care givers and organisers of services for the elderly; and
create awareness regarding elderly persons to develop themselves into fully
independent citizens.
The Government has constituted a National Council for Older Persons
(NCOI') to advise and aid the Government on developing policies and
programmes for older persons. It provides feedback to the Government on
the implementation of the National Policy on Older Persons and the specific
initiatives for older persons. The NCOP is the highest body to advise and
coordinate with the Government in the formulation and implementation of
policy and programme for the welfare of the aged.

INTEGRATED PROGRAMME FOR OLDER PERSONS

The Integrated Programme for Older Persons is being continued into the 10th
Plan period. Under this scheme, financial assistance up to 90 per cent of the
project cost is provided to NGOs for establishing and maintaining old age

750

India 2005

homE's, day-care centres, mobile medicare units and to provide non-institutional

servicE's to older persons. The scheme has been made flexible so as to meet
the diverse needs of older persons including reinforcement and strengthening
of the family, awareness generation on issues pertaining to older persons,
popularisation of the concept of the life-long preparation of old age,
facilitating productive ageing, etc. About 736 old age homes/day-care centres/
mobile medicare units are operational under the scheme.
SCHEME OF ASSISTANCE TO PANCHAYATI RAJ INSTITUTIONS/
VOLUNTARY ORGANISATIONS/SELF-HELP GROUPS FOR
CONSTRUCTION OF OLD AGE HOMES/MULTI-SERVICE FOR OLDER
PERSONS
Under the scheme, 22 voluntary organisations were assisted for construction
of Old Age Homes/Multi-Service Centres for Older Persons.
PREVENTION AND REHABILITATION OF DRUG ADDICTS/
ALCOHOLICS
The Ministry has been implementing the Scheme for Prevention of Alcoholism
and Substance (Drugs Abuse since the year 1985-86. Under the Scheme, grantin-aid to the extent of 90 per cent (95 per cent in the North East States, J&K
and Sikkim) of the expenditure is provided. The Ministry is assisting 361
voluntary organisations for maintaining 444 centres all over the country. An
amount of Rs 22.65 crore was spent under the scheme in the year 2003-04.
ASSISTANCE TO VOLUNTARY ORGANISATIONS FOR SOCIAL
DEFENCE SERVICES
rt provides for undertaking programmes for the rehabilitation of various social
segments at risk not currently covered under the existing schemes of the
Ministry. In particular the scheme provides for Pilot Projects in unchartered
areas in which the Ministry may like to formulate independent programmes
in duE' course. A number of programmes are being supported for rehabilitation
of children of sex workers. Initiatives have also been taken to support projects
for rehabilitation of widows and for providing counselling and support to
traumatised children and women particularly those who have been victims
of physical violence and sexual abuse. The expenditure incurred during 200304 is Rs 2.50 crore.

WOMEN AND CHILD DEVELOPMENT

The Department of Women and Child Development was set-up in 1985 as
a part of the Ministry of Human Resource Development to give the muchneeded impetus to the holistic development of women and children. In its
capacity as the nodal agency looking after the development of women and
children, the Department formulates plans, policies and programmes, enacts
and amends legislation affecting women and children and guides and
coordinates the efforts of both governmental and non-governmental
organisations working in the field of women and child development. Apart

Welfare

751

from this, the Department implements certain innovative programmes for

women and children. These programmes are in the areas of training and
capacity building, employment and income generation, welfare and support
services, and awareness generation and gender sensitisation. The ultimate
objective of all these programmes is to make women independent and selfreliant and to ensure that children grow and live in a healthy and secure
environment.
The Department has under its aegis one statutory body and three
autonomous organisations, viz., (a) Statutory Body: National Commission for
Women; (b) Autonomous Organisations: (1) National Institute of Public
Cooperation and Child Development (NIPCCD); (2) Central Social Welfare
Board (CSWB); and (3) Rashtriya Mahila Kosh (RMK).
While the NIPCCD and RMK are registered under the Societies
Registration Act, 1860, the CSWB is a charitable company registered under
Section 25 of the Companies Act, 1956. The National Commission for Women
has been set-up under the National Commission for Women Act, 1990.
The Food and Nutrition Board was transferred to the Department of
Women and Child Development from the Ministry of Food on 1 April 1993
in pursuance of the National Nutrition Policy. As per the directives of the
Prim!! Minister, a National Nutrition Mission has been set up and notified
on 31 July 2003 with a view to address issues relating to nutrition in a
comprehensive manner.
The Department is in charge of the administration of the following five
Acts in addition to international cooperation in the field of women and child
development such as UNICEF and UNIFEM:
(a)

The Immoral Traffic (Prevention) Act, 1956 (as amended up to 1986)

(b)

The Indecent Representation of Women (Prevention) Act, 1986 (60

of 1986)

(c)

The Dowry Prohibition Act, 1961 as amended up to 1986

(d)

The Commission of Sati (Prevention) Act, 1987 (3 of 1988)

(e)

Infant Milk Substitutes, Feeding Bottles and Infant Food (Regulation

of Production, Supply and Distribution) Act, 1992 (41 of 1992).

CHILD DEVELOPMENT
India has around 157.87 million children below the age of six years as per
2001 Census. They constitute about 15.42 per cent of the total population of
the country. For their holistic development, the following plan programmes
are being implemented by the Department:

Intepated Child Development Services (~): The Integrated Child

Development Services (ICDS) was launched in ~ as a Centrally.~ponsored
Scheme with the following objectives: (a) To unprove the nutnbonal and

752

India 2005
(

health status of children below the age of six years and pregnant and lactating
mothers; (b) To lay the foundation for the proper psychological, physical and
social development of the child; (c) To reduce the incidents of mortality,
morbidity, malnutrition and school drop-outs; (d) To achieve effective
coordination of policy and implementation among various departments to
promote child development; (e) To enhance the capability of the mother to
look i\fter the health and nutritional needs of the child through proper health
and nutrition education.
The Scheme provides for a package of services to children below 6 years
and pregnant women including lactating mothers, comprising: (i)
Supplementary nutrition, (ii) Immunisation, (iii) Health check-up, (iv) Referral
services, (v) Pre-school non-formal education, and (vi) Nutrition and Health
education.
The Scheme guidelines envisage one rural/urban project for one lakh
population and one tribal project for 35,000 population, with one Anganwadi
Centre for thousand population in rural/urban projects and for 700 population
in tribal projects.
Launched in 1975 on an experimental basis in 33 Projects (Blocks), the
Scheme was gradually expanded to 5,652 Projects, out of which 5,262 Projects
were operational i\S on 31 March 2004.
Services under the ICDS scheme are presently being made available to
about 378.16 lakh beneficiaries comprising of about 315.25 lakh children (06 years) and 62.9] lakh pregnant and lactating mothers through a network
of 6.41 lakh Anganwadi Centres.
The Anganwadi Workers/Helpers: Anganwadi Workers and helpers are the
grassroot level functionaries at village level for delivery of services under
central and state government schemes. Taking into account the significant
services provided by these workers, honoraria being paid to Anganwadi
Workers and Helpers was doubled from 1 April 2002. At present Anganwadi
Workers arc paid an honorarium ranging from Rs 938 to Rs 1,063 per month
depending, on their qualifications and experience. Anganwadi Helpers are
paid at the rate of Rs 500 per month. An insurance scheme for the benefit
of these workers, known as Anganwadi Karyakarta Bima Yojana is being
law1ched w.e.f. 2004-05.
UDISHA

Udisha is a World Bank assisted country-wide training programme for ICDS

functionaries. It has three main components, namely, (i) Regular Training
(wherein basic on-the-job training is provided) (2) Other Training (wherein
innovative and area-specific trainings are provided) and (3) Information,
Education and Communication (IEC). Training has been provided to about
5 lakh functionaries w1der the programme besides refresher training to about
230 lakh personnel.

Welfare

753

KISHORI SHAKTI YOJANA

Recognising that adolescence is a crucial phase in the life of a woman, Kishori
Shakti Yojana (KSY) has been devised as a special intervention scheme for
adolescent girls (11-18 years) using lCDS infrastructure with content enrichment.
The scheme aims at the holistic development of adolescent girls and prepares
them as aware and empowered women for future. It strengthen the training
component particularly in vocational aspects aimed at enhancement of selfperception and skills through convergence with programmes of similar nature
covering education, rural development, employment and health sectors. The
ultimate aim is breaking inter-generational lifecycJe of nutritional and gender
disadvantagl' by creating a supportive environml>nt for self development. The
scheme is currently being implemented in 2000 ICDS blocks in the country.
CRECHES/DAY CARE CENTRES
The Scheme for running Creches/Day care centres for children of working
and ailing mothers was started in 1975 as a Central Scheme in pursuance of
the National Policy for Children adopted in 1974. The Scheme aims to provide
day care services to children (0-5 years) of parents whose monthly income
does not exceed Rs 1,800 per month and are mainly casual, migrant,
agricultural and construction workers. The children whose mothers are
incapacitated due to sickness/ communicable diseases are also eligible to avail
of the benefits under the scheme. The services provided under the scheme
include sleeping and day care facilities, supplementary nutrition, immunisation,
medicines and recreation. The Scheme is being implemented through the
Central Social Welfare Board and two other national level voluntary
organisations namely, Indian Council for Child Welfare and Bhartiya Adimjati
Sevak Sangh all over the country. The scheme supports 12,470 creches
covering 3.11 lakh children.
National Creche Fund: In order to meet the growing requirement for creches,
a National Creche Fund with a corpus of Rs 19.90 core was set-up in the year
1993-94. Assistance under the scheme is made available to registered voluntary
organisations/Mahila Mandals to convert existing Anganwadi Centres into
Anganwadi-cum-Creche Centres out of the interest ensured from corpus fund.
The scheme supports 4,286 general creches and 599 Anganwadi-cum-creche
centres benefiting about 1.22 lakh children.
National Charter for Childret:t: The National Charter for Children is a policy
document adopted by the government highlighting the roles and responsibilities
of the government and the community towards the children and the duties
of children towards their families, society and the country. It has been notified
in the Official Gazette of India on 9 February 2004.

INDO-UNICEF COOPERATION
India is a partner with UNICEF in the implementation of childrelated
strategies and programmes since the signing of the Basic Agreement betwee~
the Govemment of India and UNICEF on 10 May 1949 as amended on 5 April

754

India 2005

1978. On 10 May 2002, the United Nations General Assembly Special Session
(UNGASS) adopted an ambitious agenda tor children for the current decade
titled "A World Pit for Children" (WFFC). This document (A World Fit for
Children) acknowledges the Convention on the Rights of the Child and its
optional Protocols as a comprehensive set of international standards for the
protection and well-being of children.
India has ratified the Convention on the Rights of the Child (CRe) in
December 1992 and endorsed the Plan of Action adopted in "A World Fit
for Children" at UNGASS, 2002. Since many of the commitments under the
aDoV(' agreements are in consonance with the National Policy for Children
(1<,)74), the National Plan of Action for Children (NPAC, 1992) and the
principles outlinpd in the Tl'nth Five Year Plan, the Government of India have
enlPred into an agreement with UNICEF to implement their country programnw
through a Master Plan of Operation (MPO). An MPO for the period 19992002 has already been implemented. Another MPO covering the period 200307 was signed on 13 January 2003 with the following priorities: (i) Reduction
in Infant Mortality Rate (IMR) and Material Mortality Rate (MMR) through
appropriate interVl'ntions in health, nutrition, safe water, sanitation and
hygierw, and. special care for girls and women; (ii) Reduction in child malnutrition (lnd incidencl' of low birth weight to improve proper early childhood
dl'vl>lopment and improvement in caring practices; (iii) Ensuring quality
pkmentary education for all children; iv) EnhanCing child protection
including progressive elimination of child labour, prevention of child sexual
"buse and child trafficking; and (v) Protecting children and adolescent from
HIY IAIDS.
The Master Plan of Operations 2003-07 is in operntion in the States of
Andhra Pradesh, Assctln, Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka,
Madhya l'radt~sh, Maharashtra, Orissa Rajasthan, Tamilnadu, Uttar Pradesh,
West Bengal, Kerala and Uttaranchal with the involvement of other Ministries
Clnd Dep~rtments in the Government of India for which the Department of
Women and Child Development is the nodal administrative wing.
WOMEN'S DEVELOPMENT
Women, who number 498.7 million according to 2001 census, represent 48.2
per cent of country's population of 1,027.01 million. For their socio-economic
upliftment and empowerment, the following programmes are being
implemented by thl' Department.
EMPLOYMENT AND TRAINING
STEP: Support to Training and Employment Programme for Women (STEP)
was launched as a Central Sector Scheme in 1986-87. It aims at making a
significant impact on women in traditional sectors by upgrading skills and
providing employment on project basis by mobilising them into viable groups,
arranging for marketing linkages, support services and access to credit. The
Scheme covers eight traditional sectors of employment such as Agriculture,
Animal Husbandry, Dairying, Fisheries, Handlooms, Handicrafts, Khadi and

Welfare

755

Village Industries and Sericulture. The scheme Lo; being implemented through
Public Sector Organisations, State Corporations, ORDAS, Cooperatives,
Federations and registered Voluntary Organisations which have been in
existence for a minimum period of three years. Under the scheme, 90 per cent
of the project costs are borne by the Union Government with the balance 10
per cent being borne by the implementing agencies. During the year 200304, 11 projects were sanctioned to benefit ] 6,350 women in 6 states.

Swawalamban: Swawlamban Programme, previously known as NORAD/

Women's Economic Programme, was latffiched in 1982-1983 with assisltmce
from the Norwegian Agency for Development Cooperation (NORAD). The
objective of the programme is to provide training and skills to women to
facilitate them to obtain employment or self-employml'nt on a sustainable
basis. The target groups under the scheme ar~ the poor and needy women,
women from weaker sections of the society, such as Scheduled Castes and
Scheduled Tribes, etc.
Financial assistance under the programme is provided to Women's
Development Corporations, Public Sector Corporations, autonomous bodies
and voluntary organisations, to train poor women, mostly in non-traditionill
trades and to ensun' their employment in these areas. Some of the trades,
where trainings are imparted, include Computer programming, Medical
Transcription, Electronics, Watch Assembling Radio & Television Repairs,
Garment Making, Handloom WeaVing, Secretarial Practice, Community Heillth
Work, and Embroidery. Financial assistance is also provided to the grantee
organisations for hiring of training-cum-production sheds, training cost,
machinery and equipments, stipend to trainees and remuneration for the
trainers. The upper ceiling for assistance under this scheme is Rs 8,000 per
beneficiary.
Since 1996-1997, the assistance by NORAD has been supplemented with
domestic resources. The Government of India has decided to discontinue
receiving aid from small bilateral donors including Norway in terms of the
new aid policy. Further, Embassy of Norway has also informed of its intention
not to sign any agreement for new projects with the Government. The NORAD
assistance, therefore, will not be available hereafter.
During the year 2003-04, 463 proposals were approved to benefit 71,240
women in 15 states.

Swayamsidha: Swayamsidha is an integrated project for the development and

empowerment of women. It is based on the formation of women into SelfHelp Groups (SHS) with emphasis on converging services, developing access
to micro credit and promoting micro enterprises. The long-term objective of
the scheme is to achieve all-round empowerment of women, especially,
socially and economically, by ensuring their direct access to, and control over,
resources through a sustained process of mobilisation and convergence of all
ongoing sectoral programmes. So far 52,016 SHGs have been formed under
650 blocks sanctioned under the programme.

756

India 2005,

Swa-Shakti: The Rural Women's Development Project, known at the SwaShakti Project, is jointly supported by the World Bank and the International
Fund for Agricultural Development (IFAD). The project aims at enhancing
women's access to resources for better quality of life through use of drudgery
and time reduction devices, health, literacy and confidence enhancement and
increasing their control over income through involvement in skill development
and income generating activities.

The project is being implemented as a Centrally Sponsored Scheme in

the States of Bihar, Haryana, Gujarat, Karnataka, Madhya Pradesh, Uttar
Pradesh, Jharkhand, Chhattisgarh and Uttaranchal through Women
Development Corporations/Societies. So far 17,647 Self-Help Groups (SHGs)
have been formed under the project against the target of 16,000 SHGs
envisaged under the project.
Condensed Courses of Education of Women: The Scheme of Condensed
Courses of Education implemented through the Central Social Welfare Board
aims at facilitating social and economic empowerment of women and
providing them with education and relevant skills. The scheme is specially
designed to help dropouts and failed candidates to complete their school
education. Women of the age of 15 years and above are the targeted
beneficiaries under the Scheme. During the yeM 2003-04, 392 courses were
sanctioned to benefit 10,100 women.

Working Women's Hostel: The scheme of assistance for construction or

expansion of hostel buildings for working women with day care centres for
children is being implemented since 1972. Under this Scheme, financial
assistance is provided to non-governmental organisations, cooperative bodies
and other agencies engaged in the field of women's social welfare, women's
education, public sector undertakings, women's development corporations,
local bodies, universities, state governments, etc., for construction of buildings
for Working Women's Hostels. This scheme envisages provision of safe and
affordable accommodation to working women (single working women,
women working at places away from their home-towns, working but husband
out of town, widows, divorcees, separated women, etc.) and women being
trained for employment and girl students studying in post-school professional
courses. Trainees are permitted to stay for a period up to one year and girl
students for a period up to five years, but with the condition that first
preference would be given to working women. It is also stipulated in the
scheme guidelines that the category of women who are being trained for
employment and girl students should not be exceed 30 per cent of the total
number of women in a hostel. During the year 2003-04, an amount of Rs 6.86
crore was sanctioned under this Scheme to benefit 1,188 women through 13
new hostels.
Swadhar: This scheme was launched by the Department during the year 2001-

2002 as a central sector scheme for the benefit of women in difficult

circumstances, such as destitute widows deserted by their families in religious
places like Vrindavan and Kashi; women prisoners released from jail and

Welfare

757

without family support; women survivors of natural disasters who have been
rendered homeless and arf' without any social and economic support;
trafficked women/girls rescued or runaway from brothels or other places or
victims of sexual crimes, who are disowned by family or who do not want
to go back to their respective families for various reasons; women victims of
terrorist violence who are without any family support and without any
economic means for survival; mentally disordered women who are without
any support of family or relatives, etc.
The package of services made available under the Scheme include
provision for food, clothing, shelter, health care and counselling; social and
economic rehabilitation through education, awareness generation, skill
upgradation and behavioral training. Helpline and other services are also
made available to the women in distress under the above categories.
The project is implemented through women and child development
departments of State governments, social welfare boards, women development
corporations, urban bodies, ctc., provided they have the needed experience
and expertise in the rehabilitation of such women on a project to project basis.
An amount of Rs 1.10 crore was released under the scheme during the year
200::\-04 to benefit 400 women.

Short Stay Homes: The Scheme of Short Stay Homes was launched by the
Department of Women and Child Development in 1969 to provide temporary
shelter lip to a period of three years to women and girls either exposed to
moral danger or victims of family discord. During this period, the inmates
in the Short Stay Homes are provided with maintenance services, medical
treatment, counselling, vocational training, referral rehabilitative and followup services, This scheme was entrusted to the CSWB for implementation with
effect from the year 1999-2000. An amount of Rs 1,507.06 lakh was released
under the scheme during the year 2003-04 for maintenance of 341 Short Stay
Homes in the country.
Family Counselling Centres: The objective of Family Counselling Centres
is to provide preventive and rehabilitative services to women and children
who are victims of atrocities and family mal-adjustments. The Family
Counselling Centre (FCC) scheme is being implemented through Central
Social Welfare Board (SCWB) since 1984 through voluntary organisations.
Family Counselling Centres are also being run for special categories of clients
such as at Police headguarters( Mahila Jails, Rape Crisis Intervention Centres
and Pre-Marital Counselling Centres. Under the FCC scheme a maximum of
Rs one lakh per centre per annum is given for continuation of existing Family
Counselling Centres while Rs 1.5 lakh is given for new Family Counselling
Centres.
Manvi Sanrakshan Abhiyan: In order to combat the evil of female foeticide,
leading to adverse sex ratio in several parts of the country, a nation-wide
campaign known as Manvi Sanrakshan Abltiyan has been launched through
the Central Social Welfare Board.

7.58

India 2005

National Policy on Empowerment of Women: The objective of the National

Policy for Empowerment of Women adopted by the governmt '1t on 20 March
2001 is to bring about the advancement, development and empowerment of
women and to eliminate all forms of discrimination against women and to
ensure their active participation in all spheres of life and activitil's. A National
Plan of Action to translate this policy into achievable goals is under
preparation.

AUTONOMOUS ORGANISATIONS
THE NATIONAL COMMISSION FOR WOMEN
As mt.'ntioned earlier, it is a statutory body constituted under the National
Commission for Women Act, 1990. It reviews proviSion relating to safeguClrds
for women under the Constitution as well as under other laws. It takes lip
petitions from women for redressal of their grievances, and does promotional
research for the advancement of women. The Members of the Commission
inspect jails, remand homes, etc. The Commission is actively contributing to
increase awareness generation by organising conferences/meetings, etc., on
subject and issues relating to women. It is also conducting "Parivarik Mahila
Adalats" wherein a number of family and civil disputes involving women
(lfe resol ved.

RASHTRIYA MAHILA KOSH

The objective of this institution set-up on 30 March 1993 under Societies
Registration Act, 1860 is to facilitate credit support to poor women for their
socio-economic upliftment. The support is extended through NGOs, Women
Development Corporations, Women Co-operative Societies, Self Help Groups
(SHGs) and suitable State Government agencies. RMK was given, a one-time
corpus fund of Rs 31 crore which has since been raised to Rs 100 crore with
effect from 12 December 2001.

NATIONAL INSTITUTE OF PUBLIC COOPERATION AND CHILD

DEVELOPMENT
The Objectives of this autonomous institute are to develop and promote
voluntary action in social development, take a comprehensive view of child
development and develop and promote programmes in pursuance of the
national policy for Children, develop measures for coordination of governmental
and voluntary action in social development; and evolve framework and
perspective for organising children's progammes through governmental and
voluntary efforts. The Institute with its headquarters at Delhi functions
through six Division, namely, Public Co-operation; Child Development;
Women's Development; Training, Monitoring and Evaluation; and Common
Services. The Institute has four regional centres at Guwahati, Bangaiore,
Lucknow and Indore.

CENTRAL SOCIAL WELFARE BOARD

Set-up in August 1953, the growth of the Board is synonymous with the

Welfare

759

development of voluntary agencies in India. The programmes implemented

by the Board include socio-economic programme for needy / destitute women,
vocational training courses for women and girls, awareness generation
projects for rural and poor women, Family Counselling Centres/Voluntary
Action Bureau, Holiday Camps for Children, welfare extension projects in
boarder areas and Balwadi, Creches and Hostels for Working Women.

AWARDS
The Department has instituted certain awards to encourage talents of high
order among women as indicated below:

Stree Shakti Puraskar: Instituted in the year 1999, these awards are given
in the name of five illustrious daughters of India-Kannagi, Mata Jijabai, Devi
Ahilya Bai Holkar, Rani Laxmibai of Jhansi and Rani Gaindiliu. Presented
alU1ually on the International Women's Day falling on 8 January these awards
carry a cash prize of rupees one lakh and a citation in scroll for outstanding
contribution in any of the following fields:
-

Support and rehabilitation of women and children in difficult

circumstances like destitute, disabled, aged and infirmed, victims
of atrocities and conflicts, etc.

>

Education and tmining

;.,.

Promoting self-help groups

>

Support to women in agriculture and rural industry, including

promotion of technology to reduce drudgery

Environmental protection

>

Health, including propagation of indigenous systems of medicine

>

Creating awareness and consciousness on women's issues through

arts and media induding community based programmes.

Dr. Durgabai Deshmukh Award on Women's Development: Instituted in

the name of Dr. Durgabai Deshmukh, the founder Chairperson of the Central
Social Welfare Board, in the 50th year of India's Independence, this award
is presented annually to an organisation that has made outstanding and/or
innovative contribution to WOml'l1'S welfare and empowerment and has at
least five years' working experience in the field. The award carries a cash
prize of Rs five lakh a citation and a shawl.

PENSION AND PENSIONERS' WELFARE

The Department of Pension and Pensioners' Welfare is the nodal agency of
the Government of India for formulation of a general policy on pension and
other retirement benefits, as also for redressal of grievances on retirement
benefits. A number of steps have been taken in the last few years for
streamlining the pension administration system. In pursuance of the
recommendation of the Fifth Central Pay Commission the rates of pension,
family pension, etc., have been revised as under:

760

India 2005

(i) Minimum pension/family pension has been fixed at Rs 1,275 per

month subject to condition that the actual amount of pension/family pension
should not be less than 50 per cent and 30 per cent respectively of the
minimum of revised scale of pay of the post from which the pensioner has
retired; (ii) The commutation may be allowed up to 40 per cent of pension;
(iii) The ceiling of gratuity has been raised to Rs 3.5 lakh; (iv) The definition
of the family has been broadened to include parents, for entitlement to family
pension with effect from 1 January 1998; (v) The ceiling of amount payable
under the deposit linked Insurance Scheme has been enhanced from Rs 30,000
to Rs 60,000; (vi) A fixed medical allowance of Rs 100 per month has been
sanctioned to all Central Government Pensioners who are residing in areas
not covered by the Central Government Health Scheme; (vii) CPF retirees of
the period from 18 November 1960 to 31 December 1985 who have completed
20 years of service prior to superannuation have been allowed ex-gratia at
the rate of Rs 600 per month with effect from 1 November 1997; (viii) In
pursuance of observations made by the Parliamentary Standing Committee
of Ministry of Home Affairs in para 61 of its 44th Report, detailed instructions
have been issued for timely payment of pension and retirement dues to the
retiring employees of Union Government. The a.M. also makes a provision
for fixing responsibility for recovery of penal interest paid on delayed amount
of gratuity to the retiring employees from the salary of concerned dealing
official/supervisor and Head of Office in proportion; (ix) Employed family
pensioners have been allowed Dearness Relief (D.R.) on their family pension
Welfare with effect from 18 July 1997. In the case of re-employed pensions
D.R. on pension is payable only if pay on re-employment has been fixed at
the minimum of the scale of re-employed post, and (x) Central Government
servants who had drawn lump sum payment on absorption in PSUs/
Autonomous Bodies are entitled to restoration of 1/3rd commuted portion
of pension duly revised as per Supreme Court judgment dated '15 December
1995. D.R. was also allowed on this restored and consolidated amount of
pension. As a result of Supreme Court judgement dated 26 April 2000 the
D.R. has now been allowed on full pension instead of 1/3rd commuted
portion of pension. The Government have decided to issue identity Cards to
all civilian Central Government pensioners. (xi) From 1 January 1996 all
penSioners are allowed 100 per cent neutralisation against the enhancing price
rise. Orders to this effect are issued twice a year effective from 1 January and
1 July. (xii) From 1 January 1996 DA admissible on the date of retirement/
death of the Government employee shall be treated as emoluments for the
purpose of gratuity. (xiii) The Government set-up a High-Level Expert Group
in 2001 to review the pension system. The Group in its Report submitted in
2002 recommended, inter alia, a two~tier hybrid pension scheme with a
mandatory first tier and voluntary second tier. Taking into consideration the
recommendations of the Group, Government announced in the Budget 2003
2004 to introduce a comprehensive pension scheme. Pursuant to the
announcement, Department of Economic Affairs notified on 22 December 2003
new restructured defined contribution pension system for new entrants to the
Central Government service, in the first stage, replacing the existing defined
benefit pension system. The New Pension Scheme has become operative from

Welfare

761

1 January 2004 and shall apply to Central Government servants appointed

on/after 1 January 2004. (xiv) With the introduction of New Pension Scheme
from 1 January 2004, amendments to CCS (Pension) Rules, 1972 and CCS
(Commutation of Pension) Rules, 1981 have been made that these rules shall
apply to Government servants appointed on or before 31 December 2003. (xv)
Consequent to introduction of New Pension Scheme with effect from 1 January
2004, necessary amendments in GPF, CPF and EOP Rules have been made
to the effect that these rules will not be applicable to Central Government
servants appointed on or after 1 January 2004. (xvi) Boy Service rendered in
Armed Forces before attaining age of 18 years will now be counted for civil
pension in the case of re-employed military pensioners. Necessary amendment
to this effect has been made in Rule 13 and 19 of CCS (Pension) Rules, 1962.
(xvii) A Clarification has been issued that physically or mentally disabled
children of CPF /SRPF retirees shall be entitled to the benefit of ex-gratia
payment for life on the same conditions as prescribed for such children of
Government servants under Rule 54 of CCS (Pension) Rules, 1972 and
corresponding rules applicable to Railways employees. (xviii) From 1 April
2004, Dearness Relief equal to 50 per cent of basic pension/family pension
has been converted into Dearness Pension/dearness family pension.
Consequently Dearness Relief from 1 April 2004 would be payable on basic
pension/family pension and on dearness pension/dearness family pension.

28

Youth Affairs and Sports

YOUTH constitute nearly 40 per cent of India's population. It is, therefore,

nl'cl'ssary not only to make this vibrant and strong resource' of the country
beneficiaries of, but also, valuable partners in the process of our plalming and
development. In order that young men and women are able to contribute
towards national development in a significant way, it is important that they
should b(. able to effectively participate in the process of decision-making.
Towads this end, the Ministry of Youth Affairs and Sports ha~ recently
announced a National Youth Policy so as to keep pace with the fast changing
socio-economic scenario and also to address the emerging concerns of the
youth. A National Commission for Youth has also been set up to recommend
to th(' Government measures to tackle effectively the problems faced by thl:
youth of India, with particular focus on unemployment. Two new schemes
viz., Finarcial Assistance for the Development and Empowerment of
Adolescent ... and Scheme for Establishment of National/State Youth Centres
are proposed to be implemented during the 10th Plan. Out of these, th('
scheme for adolescents has been approved and is under implementation.

YOUTH SERVICES
NATIONAL YOUTH POLICY
The first National Youth Policy was formulated and laid in Parliament in 1988.
A need was felt to revise the existing National Youth Policy, as a result of
rapid socio-cconomic transformation in the country. The new National Youth
Policy, 2003 formulated by the Ministry of Youth Affairs and Sports, i~
designed to galvanize the youth to rise up to the new challenges, keeping
in vi('w the global scenario, and aims at motivating them to be active partners
in national development.
The a~ group of the Youth, as per the National Youth Policy, 2003, is
to 35 yea~ The New Policy recognises four thrust areas viz., (i) Youth
Empowerment; (ii) Gender Justice; (iii) Inter-Sectoral Approach; and
(iv) Information and Resl'arch Network. The Policy includes eight Key Sectors
of youth development and identifies five priority groups of young people.
It provides implementation mechanism through which various youth
devdopment programmes and activities will be undertaken with actiw
involvement of the State Governments and Union Ministries and Department~.
A Neltional Plan of Action for implementing National Youth Policy is under
preparation in consultation with various stake holders. A Convergence
approach is being followed to improve the outreach of various developmental
schemes in rural areas.

SCOUTING AND GUIDING

Scouting and Guiding is an international educational movement aimed at
developing the character of boys and girls. It inculcates in them a spirit of
patriotism, sympathy for others and social service. Bharat Scouts and G\lides

Youth Affairs and Sports

763

and Hindustan Scouts and Guides mainly promote these activities in India.
The Ministry of Youth Affairs and Sports extends financial assistance. Both
these institutions have an enrolment of about 60 lakh students all over the
country. The activities include adult literacy, tree plantation, community
service, leprosy awareness, promotion of hygiene and sanitation, etc.

SCHEME FOR PROMOTION OF ADVENTURE

The objective of this scheme is to create and foster amongst the youth a spirit
of risk-taking, co-operative teamwork, capacity for ready and prompt response
to challenging situations and of endurance. It also provides first generation
learners and young people, both in urban and rural areas, with particular
thrust on non-student youth in rural areas, an opportunity to inculcate a sense
of adventure. The scheme also intends to create and strengthen institutional
structures to support adventure programmes.

NATIONAL ADVENTURE AWARDS

Under the Scheme of Promotion of Adventure, the National Adventure
Awards, now renamed as Tenzing Norgay National Adventure Awards, are
given as the highest national recognition of outstanding achievements in the
field of adventure activities on land, sea and air. A provision has also been
made for a lifetime achievement in these categories.

PROMOTION OF NATIONAL INTEGRATION

The Scheme for Promotion of National Integration aims at providing financial
assistance for youth programmes fostering national integration and communal
harmony. National Integration Camps, Youth Leadership Camps and InterState Youth Exchange Programmes are the main programmes under the
scheme.
YOUTH FESTIVAL
Every year, beginning from 12 January which coincides with the birth
anniversary of Swami Vivekananda, a 5-day long National Youth Festival
is held at a chosen place in which over 2,500 youth from different States/
UTs participate. The last Festival was held at Jamshedpur Uharkhand}. The
next youth festival is proposed to be held in Andhra Pradesh.
NATIONAL YOUTH AWARDS
National Youth Awards are given away every year to young people (25 in
number) and to one Voluntary Organisation for their excellent work in the
field of social development.
NATIONAL SERVICE SCHEME
National Service Scheme, popularly known as NS5, was launched in 1969,
with its primary focus on the development of the personality of students
through community service. Today, NSS has over 22 lakh student volunteers
on its rolls spread over 176 universities, and 39 Senior Secondary Councils.
So far, more than 2.69 crore students have benefited from NSS activities as
NSS volunteers. Due to its overwhelming popularity and demand, the scheme
was extended to the students of +2 level in selected institutions/organisations
in the year 2001-02.

764

India 2005

The National Service Scheme has two types of programmes, viz.,

"Regular Activities" and "Special Camping Programme" undertaken by its
volwlteers. Under Regular Activities, students are expected to work as
volunteers for two years, rendering community service for a minimum of 120
hours per annum. The activities include constructive work in adopted villages
and slums, blood donation, adult and non-formal education, health, nutrition,
family welfare, AIDS awareness campaigns, tree plantation, improvement of
campuses, etc. Under Special Camping Programme, a camp of 10 days'
duration is conducted every year in the adopted areas on a specific theme
like "Youth for Rural Reconstruction" "Youth for Development", "Youth for
Mass Literacy", "Youth for Social Harmony", "Youth for Healthy Society",
"Youth for Hariyali" and "Youth for Swachhta", etc. The theme for the year
2004-05 is "Nadiyon Main Bahe Jaldhara Yeh Hai Sankalp Haman},"
NATIONAL COMMISSION FOR YOUTH
A National Commission for Youth was set up on 15 March 2002. The
Commission comprising of a Chairman, 5 members and one member-Secretary
will study the areas of concern for the youth of the country with particular
focus on the problem of youth unemployment, suggest better implementation
and convergence of the existing youth-related schemes by various agencies,
recommending new programmes and policies for the benefit of the youth and,
finally, suggest measures for the implementation of the Plan of Action of tilt'
new National Youth Policy. The Commission has adopted its report in its 24th
meeting held on 5 July 2004. The process of its winding up is under progress.
The term of the Commission came to an end on 30 September 2004.
NEHRU YUV A KENDRA SANGATHAN
Nehru Yuva Kendra Sangathan (NYKS) is an autonomous organisation of the
Ministry of Youth Affairs and Sports. NYKS has its offices in 500 districts
of the country. It has become one of the largest grass-root level organisations
in the world, catering to the needs of more than eight million non-student
rural youth enrolled through two lakh village-based Youth Clubs. These Youth
Clubs work in the areas covering education and training, awareness generation,
skill development and self-employment, entrepreneurial development, thrift
and co-operation, besides development of the body through sports and
adventure and mind through sustained exposure to new ideas and development
strategies. For implementation of the programmes, every district NYK has a
network of trained cadre of District Youth Coordinators, National Service
Volunteers and Youth Leaders. The strength of NYKS is its vast network of
Youth Clubs at grassroots level.
NYKS accomplishes its task through two categories of programmes, i.e.,
'Regular Programmes' such as Youth Club Development, Vocational Training,
Work Camp, Awareness Generation, Cultural Programme, Sports Promotion,
Adventure Promotion, Seminars and Workshops and Celebration of National
and International Days/Weeks and 'Schemes' entrusted to it by the Ministry
for implementation, viz., National Service Volunteers, Financial Assistance to
Youth Clubs, Awards to outstanding Youth Clubs at District, State and
National level and Youth Development Centre. The NYKS has also been

Youth Affairs and Sports

765

implementing projects entrusted to it by various Ministries/Departments of

the Government of India, besides international agencies.
NATIONAL SERVICE VOLUNTEER SCHEME
The objective of the scheme is to provide opportunities to students, generally
speaking, those who have completed their graduation, to involve themselves,
on a voluntary basis, in nation-building activities for a specific period on a
whole-time basis. Any person who has completed his/her first degree course
and is below 25 years of age may get himself / herself enrolled as a National
Service Volunteer for one/two years. The requirement of age and educational
qualification is relaxable in case of SC /ST and women volunteers. Each of
the volunteers enrolled under the scheme is paid a stipend of Rs 1,000 per
month which includes traveling allowance. They also get a contingency grant
of Rs 100 per year. The number of National Service Volunteers Sanctioned
is 5,300. Beneficiaries, apart from the NYKS, include the National Service
Scheme.
NATIONAL RECONSTRUCTION CORPS
Recognising the need to provide the youth with avenues for creative and
constructive work to utilise their boundless energy, to introduce a new
dimension and direction to various development programmes and to bring
about a meaningful socio-economic transformation of our society and nation,
Government of India latffiched the National Reconstruction Corps Scheme
(NRC) on 30 June 1999 as a pilot project in the Central Sector. The schem'
aims at harnessing the vital youth energy in constructive channels on a
!lu!ltnincd bn!lil;.
The NRC volunteers act as catalysts of change spending a year in the
service of the community and the nation. The volunteers are paid an
honorarium of Rs 1,000 per month and they work on programml's and projects
of various Departments/ Agencies of Central/State Governments and even of
voluntary organisations.
'This scheme was operated for a period of 2 years on pilot basis.
Evaluation study of the organisation by 5 NGOs is positive. The scheme is
being reviewed and revamped in consultation with Ministry of Finance and
Planning Commission,

FINANCIAL ASSISTANCE TO RURAL YOUTH CLUBS/SPORTS

CLUBS/EVALUATION
This scheme has the following four components:
Awards to Outstanding Youth Clubs: With a view to recogmslllg the
contribution of Youth Clubs and motivating them for more active participation
in nation-building endeavour, this scheme was introduced during 1992-93.
The Scheme is being implemented through the Nehru Yuva Kendra Sangathan.
The scheme operates on a three-tier level, Le., District, State and
National. At the district level, the winner receives an award of R.. 10,000 and
<It the State level Rs 25,000. At the National level, there are three awards of

766

India 2005

R~ one lakh, Rs 50,000 and Rs 25,000. The prize money is to be used for
implementing community based projects.

Financial Assistance to Sports Clubs: With the aim to promote Nodal

Voluntary Sports Clubs/Sports Centres, one in each Block, in a phased
manner, the Ministry of Youth Affairs and Sports grants assistance for nonconsLimabll' sports equipment with one-time grant up to Rs 30,000 per club.
In the case of tribal blocks, financial assistance up to Rs 45,000 may be given.
This amount is to be supplemented by the clubs through their own resources
or hy voluntary contribution from the public or through State Governments.
Selection of the Club is made in accordance with the criteria laid down in
the scheme.
Financial Assistance to Youth Clubs: The principal objective of this scheme
is to encourage' and assist newly established Youth Clubs so that they can
effectively take part in nation-building activities. It is also to prom()t~'
organised youth club movement across the country with due recognition to
the youth in their society. Under this scheme, financial assistance of Rs 10,000
per youth club in normal areas and Rs 15,000 per youth club in tribal areas
is given to those Youth Clubs who are registered under the Societies
R'gistration Act, 1860 or corresponding State Act.
Scheme of Youth Development Centres: In order to give a fillip to the
participation of rural youth in development activities, a new scheme for
setting up of Youth Development Centres for a group of 10 villages each was
introduced during 1994-95. However, initially the centre may cover more than
10 villages. The centres are to serve as the focal point for information
dissemination and resource centres for the youth.
One-time financial assistance to the extent of not more than Rs 30,000
is given to each centn' to cater to the requirement of basic iurnituH',
equipment, radio and TV /VCP. Each centre is to be managed by a youth
committee drawn from the youth of the constituent villages.
A dt,>cision has been taken to upgrade 500 Youth Development Centres
as Rural Information Technology Centres during the Tenth Plan. During this
year 66 YDCs have been upgraded.
As a result of follow-up action on zero-based budgeting, it was decided
to m('rgl~ the Youth Development Centres Scheme with the Scheme of
Financial Assistance to Rural Youth and Evaluation. The budget under the
schem(' was clubbed with the budget under the scheme of Financial Assistance
to Rural Youth and Sports Clubs. These Schemes Well' merged during the
year 2002-2003.

SCHEME FOR WELFARE AND DEVELOPMENT OF ADOLESCENTS

The Government of India has, for the first time recognised the adolescents
as a distinct segment of youth. pop'.dation with different type of problems.
Recognising the distinct problems faced by this segment of the youth, the
Planning Commissiun constituted a working group on the Welfare and
Development of Adolescents which recommended that the subject of adolescents

Youth Affairs and Sports

767

should be dealt with in the Ministry of Youth Affairs and Sports as the Nodal
Ministry. The scheme has recently been approved by Ministry at an outlay
of Rs 47 crore for the remaining Plan period.
SCHEME OF FINANCIAL ASSISTANCE FOR PROMOTION OF YOUTH
ACTIVITIES AND TRAINING
The Scheme of Financial Assistance for Promotion of Youth Activities and
Training has the following sub-components; (i) Vocational Training;
(ii) Entrepreneurship Dt'velopment; and (iii) Exhibition.
The Objectives of Vocational Training Programme are to develop
leadership qualities among the youth through vocational training, so that
youth can act as the focal point of dissemination of knowledge in their own
area of activity; to develop among the non-student rural youth such attitudes
and skills as will enable them to function better as productive citizens; to
prevent migration of the mral youth to cities by enabling them to realise that
agriculture and other rural occupations are as rewarding as those in the urban
areas; to create new skills among rural youth through which villages can
become self-reliant; to inspire youth to set-up their own training centres in
their areas; and to inspire prospective young entrepreneurs to learn modern
techniques/ methods in training and entreprt'neurship skills.
Objectives of Entrepreneurship DevelopmE.'nt Programme are to promote
among the youth an understanding of the processes of entrepreneurship
development; to equip the youth with the skills in designing and planning
projects for enterprise development; to enable them to set-lip and successfully
run micro-enterprises of their own in conformity with local skills and demands
for goods and services; and to help the unemploYE.'d youth with management
skills.
Objectives of Exhibition Programme are to project and recognise the
activities and contributions made by the youth in various field!- of national
deVelopment; so that youth having regard to thE.'ir preferenct's and needs, may
choose from among various options when tJ1'y wish to fulfil their intellectual
urges and aspirations; to promote a spirit of secularism and national
integration, unity in diversity, pride in Indianness among tht youth of
different parts of the country and to induce a sense of communal harmony,
to enable the youth to receive education and knowledge about Indian culture,
freedom struggle, the Constitution of India, Five-Year Plans, Panchayati Raj,
the schemes for weaker sections, protection of environment, population
stabilisation and the latest developments taking place in the field of art,
culture, education, agriculture, industry, science and technology; and to
provide an outlet to the youth to display their skills and creativity in various
fields.
Eligibility: Under the Scheme, State/Union Territory Administrations;
Recognised Educational Institutions and Polytechnics including Universities;
Regional Centres of NSS and Colleges having NSS units; Nehru Yuva
Kendras; Bharat Scouts and Guides; Panchayati Raj Institutions, and nongovernmental voluntary organisations (NGOs), public trusts and non-profit

768

India 2005

making societies registered under the Societies Registration Act, 1860 or any
corresponding State Act who have completed at least three years on the date
of application will be eligible to apply for financial assistance.

RAJIV GANDHI NATIONAL INSTITUTE OF YOUTH DEVELOPMENT

The Rajiv Gandhi National Institute of Youth Development (RGNIYD)
set-up at Sriperumbudur (Tamil Nadu) functions as an autonomous body for
coordinating and monitoring youth-related activities in the country. The
Institute is to function as: (i) a research agency and think-tank for youth
programmes, policies and implementation strategies; (ii) develop multifaceted
programmes for youth; (iii) function as an institute for advanced studies in
tIll' field of youth; (iv) function as a centre for documentation, information
and publication pertaining to youth development; and (v) work as a Resourn'
Centre.

YOUTH HOSTELS
Youth Hostels arc built to promote youth travel to enable the young people
expNience the rich cultural heritage of the country. TIle construction of Youth
Hostels has been conceived as a joint venture of the Central and State
Governments. While the Central government bears the cost nf construction,
thl' State Government provides developed land free-nf-cost with water,
cll'ctricity and approach roads. Youth Hostels, after completion, are handed
over to the state governments for management. So far, 6S Youth Hostels have
bt~cn constructed and 24 are under construction.

SPORTS
NATIONAL SPORTS POLICY
The National Sports Policy was initially formulated in 1984. In order to broadbase sports and to promote excellence, Government has fonnulated a New
National Sports Policy, 2001. Tht~ salient features of the New National Sports
Policy are (i) Broad-basing of Sports and achievement of excellence; (ii) Upgradation and development of infrastructure; (iii) Support to the National
Sports Federations and other appropriate bodies; (iv) Strengthening of
scientific and coaching support to sports; (v) Incentives to sports persons;
(vi) Enhanced participation of women, scheduled tribes and rural youth;
(vii) Involvement of the Corporate Sector in sports promotion; and
(viii) Promote sports mindedness among the public at large.

SPORTS AUTHORITY OF INDIA

Sports Authority of India (SAl) was established by the Government of India
in January 1984 as a registered society primarily to ensure effective maintenance
and optimum utilisation of the various sports infrastructure that were built
in Delhi during Asiad, 1982. It is now the nodal agency in the country for
broad-basing sports and for training of sports persons to achieve excellence
in national and international sports, the Society for National Institute of
Physical Education & Sports (SNIPES) was merged with SAl with effect from
1 May 1987. Subsequently Netaji Subhash National Institute of Sports
, (NSNIS), Patiala and its allied centres at Bangalore, Kolkata and Gandhinagar

Youth Affairs and Sports

769

and Lakshmibai National Colleges of Physical Education at

TIliruvananthapuram came under Sports Authority of India (SAl). It has now
six regional centres at Bangalore, Gandhinagar, Kolkata, Chandigarh, Bhopal
and Imphal. Sports infrastructure is being created at Sonepat and the Northern
Regional Centre would be shifted from Chandigarh to Sonepat. SAl has one
sub-centre at Guwahati. SAl also operates a High Altitude Training Centre
(HATC) at Shillaroo (HP).
SAl operates various schemes at sub-junior, junior and senior level,
namely, National Sports Talent Contest (NSTC), Army Boys Sports Company
(ABSC), SAl Training Centres (STC) and Special Area Games (SAG) to achieve
excellence at national and international level. SAl has also set-up Centres
of Excellence (COE) for elite sportspersons at each of its Regional Centres and
one at National Institute of Sports, Patiala and Sports College, Lucknow. There
are 99 NSTC adopted Schools including 16 Akharas, 24 Navodaya Vidyalayas
and 27 Schools for promotion of Indigenous Games and Martial Arts.
Equipment support has also been provided to 29 Akharas. There are 8 ABSC,
17 SAG Cehtres including 2 Associated Centres, 58 STCs and 8 Centres of
Excellence. Navodaya Vidyalayas have been adopted to give impetus to sports
in rural and semi-urban areas and to have balanced approach. This mammoth
effort involves widespread talent scouting including from rural, coastal and
tribal areas and training of selected individuals by providing all vital inputs.
The National Coaching Scheme of SAl provides coaches for training of
sportspersons to the State/UT Sports Councils at their State and District
Coaching Centres, SAl Schemes, National Coaching Camps and for conducting
Academic Courses in Sports Coaching at NIS, Pahala. The Lakshmibai
National College of Physical Education (LNCPR) is the apex Institute for
conducting research and offering academic courses in Physical Education. In
addition, SAl also implements a number of Central Government Schemes to
encourage sportspersons by providing them scholarships. SAl also implements
sports schemes for women and the North-East besides promoting rural sports.
LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
The Lakshmibai National Institute of Physical Education was established
initially as a College on 17 August 1957, the centenary year of the first war
of India's Independence. The Institute is located at Gwalior, where Rani
Lakshmibai of Jhansi had laid down her life for the country's freedom
struggle. In recognition of the service rendered by the Institute in the field
of physical education and sports, it has been upgraded to a 'Deemed
University' status in 1995. The Institute is fully-funded by the Government
of India.
.
The Institute offers the following full-time courses: (1) Bachelor of
Physical Education (BPE) (3 years degree course); (2) Master of Physical
Education (MPE) (2 years course); (3) MPE (Summer Course) (3 years course)
for in-service teachers; and (4) M. Phil in Physical Education (1 year course).
The Institute also conducts in-service training programmes in physical
education for ex-army personnel, refresher/orientation course for physical
education teachers in universities, colleges and schools. The Institute attracts
students from abroad also.

770

India 2005

GRANTS FOR CREATION OF SPORTS INFRASTRUCTURE

The Central Government supplements the efforts of the State Governments,
State Sports Councils, etc., for improving and creating infrastructure facilities
for sports. Grants are given for construction of stadia, swimming pools,
gymnasia, sports complexes, etc. Mostly, financial assistance is given on a
sharing basis of 50:50 between the Centre and State/Union Territories. For
Special Category States, hilly/tribal areas, the central contribution is 75 per
cent subject to a maximum of a certain specified ceiling. State JUT
Administrations are also eligible for assistance up to Rs five lakh for
construction/ improvement of certain facilities in their schools. Under the
Scheme of "Grants to Rural Schools" which is a sub-scheme of the main sports
infrastructure scheme, grants up to a maximum ceiling limit of Rc; 1.50 lakh
is provided to the schools situated in the rural areas for the development of
playfield and purchase of sports equipment.
Grants for Synthetic Tracks I Artificial Surfaces: The Central Government
gives grants for laying of synthetic athletic tracks and artificial surfaces for
hockey. Accordingly the Central assistance up to Rs one crore or 50 per cent
of the estimated cost, whichever is less, is provided for laying or replacement
of the hockey surfaces and athletic tracks only.
Promotion of Sports in the Universities/Colleges: Under the Scheme of
Grants for Promotion of Sports in University and CoUeges, assistance is
provided to the Universities / Colleges for development of playgrounds,
construction of indoor stadium / facilities in the ratio of 75:25 in the case
of universities / colleges situated in special category states and in the ratio
of 50:50 to all other States, subject to a certain ceiling. Assistance is also given
for purchase of sports equipment up to a maximum ceiling of Rs 3 lakh. The
Association of Indian Universities is also provided assistance for holding
coaching / training camps of sports persons, inter-university tournaments and
participation in foreign tournaments.

SCHEME RELATING TO AWARDS

The scheme has the following three components under which awards are
given to outstanding sportspersons for winning medals in international sports
events.
Rajiv Gandhi Khel Ratna Award: The scheme was launched in the year
1991-92 for honouring the outstanding sportsperson in a year for his/her
achievement in sports. The award is given in the form of a cash award of
Rs 5 lakh, scroll of honour and a plaque.
Special Awards to winners in international .ports events and their
coaches: This scheme was introduced in the year 1986 to encourage and
motivate outstanding sportspersons for even higher achievement and to
attract the younger generation to take sports as a career. The scheme has
recently been reviewed and revised. From the year 2004, special awards at
the (ollowing revised rates will be given to sportspersons and their coaches
for winning laurels in different competitions.

Youth Affairs and Sports

Name of Championship/Game

771
Gold Medal
First Position

Silver Medal
Second Position

Bronze Medal
Third Position

Rs. 30 lakhs

Rs. 18 lakhs

Rs. 12 lakhs

Official World Cups/Asian

C.uncs/Commonwealth Games

Rs. 10 lakhs

Rs.

5 lakhs

Rs.

Asian and Commonwealth

Championships

Rs.

Rs.

2 lakhs

Rs. 1.5 lakhs

ror Winning
Olympics Games

:I lakhs

3 lakhs

MAULANA ABUL KALAM AZAD (MAKA) TROPHY

Inter-University tournaments are an integral and important part of games and
sports in universities and colleges. The top overall performing university in
tlw Inter-University Tournaments is given the Maulana Abul Kalam Azad
(MAKA) Trophy, which is a rolling trophy. A small replica of the MAKA
Trophy is also awarded for retention by the University. In addition, the
university also gets a cash prize of Rs two lakh. The second and third best
universities also receive cash awards amounting to Rs one lakh and Rs 50
thousand respectively.
SCHEME RELATING TO INCENTIVES FOR PROMOTION OF SPORTS
ACTIVITIES
The Scheme has the following five sub-components:
Sports Fund for Pension to Meritorious Sportspersons: This scheme was
launched in the year 1994 under this scheme pension is given to a meritorious
sportsperson after helshe attain the age of 30 years for his/her lifetime. The
scheme is being operated through Life Insurance Corpomtion of India. The
scheme has recently been revised by enhancing tht~ rates of pensions. Besides,
new categories of pension have also been added to the scheme. Pensions will
now be given at the following rates:
(a)

Medallists at the Olympic Games

Rs 5,000 p.m.

(b)

Gold medallists at the World Cups/

World Championships in Olympic
and Asian Games diSciplines

Rs 4,000 p.m.

(c)

Silver and Bronze medallists of the

World Cups/World Championships
in Olympic and Asian Games disciplines

Rs 3,500 p.m.

(d)

Gold medallists of the Asian/

Commonwealth Games

Rs 3,500 p.m.

(e)

Silver and Bronze medallists of Asian/

Commonwealth Games

Rs 3,000 p.m.

(f)

Gold Medallists of Para - Olympic Games

Rs 2,500 p.m.

(g)

Silver medallists of Para - Olympic Games

Rs 2,000 p.m.

India 2005

772

(h)

Bronze medallists of Para - Olympic Games

Rs 1,500 p.m.

At present, 257 sportspersons are receiving pension under this scheme.

Promotion of Sports and Games in Schools: The Scheme was introduced
in 1986 with a view to raising the standard of sports at the school level and
to encourage participation in inter-school competitions. Under this scheme,
financial grant was given @ Rs 50,000 per district and Rs two lakh per state
to the Directorates of Sports of State/UT governments for holding district and
State level inner-school tournaments. The State performing the best at the
national level tournaments was given an award of Rs one lakh along with
a rolling trophy. The scheme was operated directly through the State/UT
Governments. The scheme has recently been revised enhancing the ratc!> of
grants-in-aid to Rs 75,000 per district and Rs three lakh per State for organising
inter-school sports tournaments. At the national level, the Sports Authority
of India will be given assistance @ Rs two lakh per discipline for conduct
of national level tournaments. The revised scheme will now be implemented
through the Sports Authority of India.
Rural Sports Programme: Rural Sports Programme was launched in 1Y7071 with a view to broad-basing games and sports and tapping the hidden
talent in rural areas. The scheme has two sub-components, viz., organisation
of rural sports tournaments and organisation of a Sports Festival for the North
Eastern Region. The scheme has recently been revised enhancing the grantsin-aid under various components/items of the scheme.
Sports Scholarship Scheme: Sports Scholarship Scheme was launched in the
year 1970-71 with a view to assisting talented boys and girls for their
outstanding performances. The Scheme aims at aSSisting sports persons so that
they can have nutritious diet, sports equipment support and be able to pursuf..'
sport:; as a career.
The scheme has recently been revised with th{' following enhancement
in the rates of scholarships: (i) State level Championship (Category - I), @
Rs 550 per month i.e., Rs 6,600 per annum (12 months); (ii) National level
Scholarship (Category - II) @ Rs 700 per month i.t,., Rs 8,400 per annum (12
months); (iii) University/College level Scholarship (Category - III) @ Rs 850
per month, i.e., Rs 10,200 per annum (12 months); (iv) Scholarship for senior
women champions, @ Rs 1,500 per month, i.e., Rs 18,000 pel' annum;
(v) Scholarship for women doing diploma @ Rs 7,500 per course; and
(vi) Scholarship for women doing M.Phil/Ph.O. @ Rs 10,000 per annum.

NATIONAL WELFARE FUND FOR SPORTSPERSONS

The National Welfare Fund for sports persons was set lip in March 1982
primarily to assist outstanding sportspersons of yesteryears, living in indigent
circumstances. This financial support is given in the form of pension up to
Rs 2,500 per month. Lump-sum grants up to Rs 40,000 are also given for
medical treatment. Sporlspersons who suffer from grievous and fatal injury
in the course of participation in sports events during training are also helped.
At present, 55 sportspersons are receiving pension under the scheme. During
the year 2003-04 an amount of Rs 25 lakh has been spent.

Youth Affairs and Sports

773

NATIONAL SPORTS CHAMPIONSHIP FOR WOMEN

The scheme started in 1975, aims at promoting sports amongst women. Under
the scheme, national level competitions are preceded by holding of lower level
competitions (Block, District and State level) for which States/UTs are
provided financial assistance as per norms. The scheme is implemented
through the Sports Authority of India. During the year 2003-04 an amount
of Rs 36 lakh was sanctioned to SAl for this purpose.
DHYAN CHAND AWARD FOR LIFE-TIME ACHIEVEMENTS IN SPORTS
AND GAMES

Dhyan Chand Award for lifetime achievements in sports and games instituted
in thl' year 2002 is given to honour those sportspersons who have contributed
to sports by their performance and continue to contribute to promotion of
sports even after their retirement from active sporting career. The award
carries a cash of Rs 1.50 lakh, a plaque and a scroll of honour. Three awards
are given every year.
SCHEME RELATING TO TALENT SEARCH AND TRAINING

Under the Scheme, selected sportspersons who have equalled or excelled the
existing national record or are Gold medallists of last National Championship
or are medallists of Asian/Commonwealth/ Afro-Asian Games/Olympic
Games/World Championship in the relevant category diSCiplines are provided
a package of assistance up to Rs five lakh per year for coaching, equipment,
participation in national and international tournaments, etc., on a long-term
basis. The coaches, sports scientists and other sports persons are also assisted
for up-gradation of their skills and aSSisting the promising sports persons for
achieving excellence at international level.
GRANTS TO NATIONAL SPORTS FEDERATIONS

This Ministry gives financial assistance to 64 recognised National Sports

Federations for conducting National Sports Championships at Sub-Junior,
Junior and Senior level @ Rs six lakh, Rs four lakh and Rs two lakh
respectively. Financial assistance is also given to NSFs of priority and general
category Sports disciplines for participation in International Sports
Tournaments/Championships, holding of International tournaments in India,
procuring sports equipment, coaching/training under national foreign coaches,
etc.
NATIONAL SPORTS DEVELOPMENT FUND

A National Sports Development Fund has been set-up to mooilise financial

resources from Government, corporate and private sector as well as individuals
for promotion of Sports. The Ministry has made initial contribution of Rs two
crore as seed money during 1998-99. Further Government contribution is on
matching basis to the contribution received from other sources. During
2003-04 contribution of Rs 19,46,050 was received from various sources.

ARJUNA AWARDS
The Arjuna Award was instituted in 1961. The Government has recently

774

India 2005

revised the Scheme of Arjuna Awards for outstanding performance in sport~

and games. According to this, to be eligible for the Award, a sports person
should have had not only good performance consistently for the previous
three years at the international level with excellence for the year for which
the Award is recommended but also should have shown qualities oj
leadership, sportsmanship and a sense of discipline. The Awardee is giVl'J1
a statuette, a scroll of honour, ceremonial dress and a cash award of Rs three
lakh.
From the year 2001, the award will be given only in disciplines falling
under the following categories: (1) Olympic Games/ Asian Games/
Commonwealth Games/World Cup/World Championship disciplines and
cricket; (2) Indigenous Games; (3) Sports for Physically challenged.
DRONACHARYA AWARD
The Dronacharya Award, instituted in 1985, honours eminent Coaches who
have successfully trained sportspersons or teams and enabled them to achieve
outstanding results in international competitions. The awardees is given ,1
statuette of Guru Dronacharya, a scroll of honour, ceremonial dress and il
cash prize of Rs three lakh.
INTERNATIONAL COOPERATION
Commonwealth Youth Programme (CYP): The Commonwealth Youth
Programme came into being in 1974 with the purpose of promoting the
development of young men and women in the Commonwealth countries. lb
main objectives are to encourage and support participation of youth in the
process of national development; to give recognition to the contribution made
by youth in economic, social and cultural development; to promote productive
activity in order to eliminate unemployment and to provide opportunities for
international understanding among youth. The headquarters of CYP is at the
Commonwealth Secretariat, London and one of its four Regional Centres is
in Chandigarh for the Asia Region. The member countries finance the
programmes. India's contribution to CYP during 2003-2004 was Rs 78.93 lakh
Exchange of Delegations of Youth at International Level: The international
exchange of youth delegation has been conceived as an effective instrument
for promoting exchange of ideas amongst the youth of different countries and
to develop better relations with other countries. Under this programme, youlh
delegations are exchanged with foreign countries for participation in variolls
youth programmes, meeting, seminars, conferences, etc.
United Nations Volunteer Programme: The United Nations VoluntcL'l'
(UNV) Programme was created by the United Nations General Assembly in
1970 with the objective of providing developing countries with an additional
source of qualified and trained manpower at low-cost and opportunity In
young professionals from all nations to take part in development activities
world-wide. There are numerous fields of activity in which UNDP taps talent
from developing and industrialised countries for assignment of UNVs in the
fields of agriculture, health, civil aviation, rural water supply, meteorology,
road construction, communications, etc.

Youth Affairs and Sports

775

The Ministry of Youth Affairs and Sports is the national focal point for
the UNV scheme. Assignments are made according to the requirements of
various developing countries. Besides specific demands for which special
efforts are made, as aspiring volunteer can apply through this Ministry for
an assignment anytime during the year through a prescribed proforma for
his/her name being placed on the roster of UNDP. No formal pay and
allowances are given to the UNVs but, instead, they are paid a Monthly Living
Allowance ranging from $ 635 to $ 2200 depending on the marital status of
the applicant, local conditions of the host country, number of dependents
(Up to two), etc. During the year 2003-04, the Ministry has forwarded to
UNDP completed applications of 52 persons.
As in the earlier years, the Ministry has contributed US $ 15,000 during
2003-04 for this programme.
SPORTS ACHIEVEMENTS
India's performance in the Athens Olympic Games (13-29 August 2004) has
been satisfactory. Major RV.S. Rathore won an individual Silver Medal in
Double Trap (Men's Shooting). In addition, two other shooters, Ms Suma
Shirur and Abhinav Bindra reached the finals and fini..o:;hed eighth and seventh
respectively. The Indian women's 4x400 metres relay team broke the existing
national record to reach the finals. Ms Anju Bobby George also broke her own
national record to finish sixth in the long jump for women. Sh KM. Binu also
broke the national record in men's 400 metres race to reach the semi-finals.
The Indian duo of Leander Paes and Mahesh Bhupati reached the semi-finals
in tennis but narrowly lost the bronze medal play-off. In weightlifting, Ms
Kunjarani Devi secred the 4th position in her weight category.
Major sporting events held during the year and performance of Indian
teams: (a) the 9th SAF Games were held at Islamabad, Pakistan from 29
March-7 April 2004; (b) Indian Sr. Men's team participated in Rashid
International Volleyball Tournament held at Dubai from 30 July-6August 2004
and won a bronze medal; (c) Indian Swimming team participated in the 6th
Asia-Pacific Water Polo Tournament held from 12-16 August 2004 and secured
third position.

29 States and Union Territories

ANDHRA PRADESH
Areil

2,75,069 sq km

Population

7,61,11,243

Capital

Hyderabad

Principal Languages

Telugu and Urdu

HISTORY AND GEOGRAPHY

The earliest mention of the Andhras is said to be in Aitereya BrilllmilI1d (2000
BC). It indicates that the Andhras, originaUy an Aryan race living in north
India migrated to south of the Vindhyas and later mixed with non-Aryans.
Regular history of Andhra Desd, according to historians, begins with 236 BC,
the year of Ashoka's death. During the following centuries, Sataval1<lIlilS,
Sakas, Iksh vak 115, Eastern Chalukyas, Kakatiyas ruled the Telugu country.
Other dynasties that ruled over the area in succession were the kingdoms of
Vijayanagar and Qutub Shahi followed by Mir Qumruddin and his successors,
known as the Nizams. Gradually, from the 17th century onwards, the British
annexed territories of the Nizam and constituted the single province of
Madras. After Independence, Telugll-speaking areas were separated from the
composite Madras Presidency and a new Andhra State came into being on
1 October 1953. With the passing of the States Reorganisation Act, 1956, there
was a merger of Hyderabad State and Andhra State, and consequently Andhra
Pradesh came into being on 1 November 1956.
Andhra Pradesh is bound on the north by Orissa and Chhattisgarh,
on the west by Maharashtra and Karnataka, on the south by Tamil Nadu and
on the east by the Bay of Bengal with a coastline of 974 km.
AGRICULTURE
Agriculture is the main occupation of about 62 per cent of the people in
Andhra Pradesh. Rice is a major food crop and staple food of the State
contributing about 77 per cent of the foodgrain production. Other important
crops are jowar, bajra, maize, ragi, small millets, pulses, castor, tobacco, cotton
and sugarcane. Forests cover 23 per cent of the State's area. Important forest
products are teak, eucalyptus, cashew, casurina, bamboo, softwood, etc.
IRRIGATION
Important irrigation schemes implemented in the State are Godavari Delta
System, Krishna Delta System, Nagarjunasagar project, Pennar Delta System,
Tungabhadra Project H.L.e. (Stage-I), Tungabhadra Low-level Canal, KurnoolCuddapah Canal, Kadam Project, Rajolibanda Diversion Scheme, Nizam Sagar
and Potharlanka. Other important projects under implementation are

States and Union Territories

777

Vamsadhara Project Stage-I and II, Chagalnadu L.I. Scheme, Yeleru Reservoir
Project, Tarakarama Krishnaveni L.1. Scheme, Veligonda Project, Somasila
Project, Telugu Ganga Project, T.B.P.H.L.C. Stage-II, Pulivendla Branch Canal,
K.C. Canal Modernisation Scheme, S.RB.C., S.L.n.c. (AMR Project), S.R.S.P.
Stage-l & II, Flood Flow Canal from S.RS.P., Jurala Project, RD.S. Link Canal,
Bhima L.1. Scheme, T.B.P.H.L.C. Stage-I Modernisation, Guru Raghavendra
Swamy L.I. Scheme and Singur Project. The expenditure for the ongoing
projects during 2001-02 was 771 crore and the budget allotment for the year
2003-04 is 1,102 crore. Net area irrigated through all irrigation sources during
2000-01 was 45.28 lakh hectares.
Andhra Pradesh is the first state to involve the farmers in the management
of irrigation sources. There were 9,922 water user associiltions i\l1d 163
distributary committees formed. Rs 142.90 crore were allotted to these
associations duirng 2002-03 to make them functional and economically viable.
POWER
Important power projects in the State are: the Nagarjunasagar and Neelam
Sanjiva Reddy Sagar (Srisaiiam Hydel Project), Upper SHeru, Lower Sileru,
Tungabhadra H ydel Projects and Nellore, Ramagundam, Kothagudem,
Vijayawada and Muddanur thermal power projects. The Srisailam Hydro
Electric Project with an installed capacity of 770 MW and the Nagarjunasagar
Complex with 960 MW are the principal sources of hydel generation.
Vijayawada Thermal Power Station with an installed capacity of 1,260 MW
and Kothagudem Thermal Power Station with an installed capacity of
1,180 MW are the main sources of thermal power generation. The 1,000 MW
coal-based Simhadri Thermal Power Station aims at supplying the entire
energy generated to the State.

INDUSTRY AND MINERALS

There are several major industries in operation around Hyderabad and
Visakhapatnam. They manufacture machine tools, synthetic drugs,
pharmaceuticals, heavy electrical machinery, fertilizers, electronic equipments,
aeronautical parts, cement and cement products, chemicals, asbestos, glass and
watches. Andhra Pradesh has the largest deposits of quality chrysolite
asbestos in the country. Other important minerals found in the state are
copper ore, manganese, mica, coal and limestone. The Singareni Coal Mines
supply coal to the entire south Indii\.
There were 3,111 large and medium scale industries in the State with

a total investment of Rs 43,317 crore, providing employment to 8,02,878

persons as on 31 March 2002. Besides, there were 3,29,444. tiny and small
scale industries with credit assistance of Rs 2,707.53 crore employing 28,09,468
persons.
TECHNOLOGY
The State government is also promoting Indian Institute of Information
Technology (II1T) at Hyderabad. lIlT offers 4-year UG and 2/3 year PG
programmes. IBM, Oracle, Signal Tree, Satyam and Motorola have established
their corporate schools.

778

India 2OQ5

TRANSPORT
RO<1ds

National Highways passing through Andhra Pradesh constitute 4,104 km.

There are 60,453 km of state highways and 1,03,814 km of PanchayMi Raj roads
in the State as on March 2002.
Rai/ways

Of the railways route covering 5,085 km in Andhra Pradesh, 4,362 km is

broad-gauge, 686 km is metre-gauge and 37 km is narrow gauge.
Aviation

Important airports in the State are located at Hyderabad, Tirupathi and

Visakhapatnam. International flights are operated from Hyderabad.
Ports

Visakhaptnam is a major port in the State. Minor ports are located at

Kakinada, Machilipatnam, Bheemunipatnam, Krishnapatnam, Vadarevu and
Kalingapatnam.
TOURIST CENTRES
Charminar, Salarjung Museum, Golconda Fort in Hyderabad, Thousand Pillar
Temple and Fort in Warangal, Sri Lakshmi Narasimha Swamy Temple at
YadClgirigutta, Buddha Stupa at Nagarjunakonda and Nagarjuna Sagar, Sri
Venkateswara Temple at Timmala-Tirupathi, Sri Mallikarjunaswamy Temple
at Srisailcun, Kanaka Durga Temple at Vijayawada, Sri Satyanarayana Swamy
Temple at Annavaram, Sri Yaraha Narasimha Swamy Temple at Simhachalam,
Sri Sita Rama Temple at Bhadrachalam, Araku Yalley, Horsley Hills, Nelapattu,
etc., are the major tourist attractions in Andhra Pradesh. Thirty;-three lifesize statues of eminent Telugu personalities of the State were erected on
Tankbund of Hussainsagar lake in Hyderabad. A giant statue of Lord Buddha
of a height of about 60 feet has been erected on the Gibraltar rock in the
Hussainsagar lake which separates Hyderabad and Secunderabad cities.

GOVERNMENT
: Sushil Shinde
Chief Minister: Y. S. Rajasekhar Reddy

: KR. SUluh Reddy

Speilker

Chief Sccretilry

: S. Anwar

Chief Justice

: Devendra Gupta

Jurisdiction of High Court : Andhra Pradesh

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No.

District

Area
In 000' sq km

Population

Headquarters

2001 1

1.
2.
3,

Adilabad

16.1

24,89.312

Adilabad

AnlUlthapur

19.1

Chittoor

Chlttoor

4.

Cuddllpah

15.2
15.4

36,39,304
37,37,437
25,92,048

Cuddllpllh

Anallthapur

States and Union Territories

779

5,

East Godavari

10,8

48,97,777

Kakinada

6,

Guntur

11,4

44,55,445

Guntur

7.

Hyd,r.1bad

0.2
l1.R

9,

Karimnagar
Khill11mam

38,26,094
35,00,1176

Hyderilbad

R.
10,

Krishna

16,0
8,7

11,

KUTllool

17.7

12,

Millldboobllagar

n,

Mldak
Nalgonda

18.4
9.7
14,2

25,69,15R

41,81,071

Nellure

13.1

35,24,073
35,09,182
26,63,783
32,45,400
26,65,009

Ib,

Prakasam

17.6

30,54,921

17,

Nizilmabad

18,
1'1,

Ranga Reddy
Srikakulam

8.0
7.5

20,

Visakhapatnam

21.
22,

Vizianilgaram

5.8
11,2
(,,5

23,39,459
35,87'!:!,!1
25,31,752

Warangal

23.

West Godavilri

14,
15,

Kilrilllnagar
KhalTI III a III
Machilipatnam
Klimool
Milhabuobl\ilgar
Sangareddy
Nalgonlia
Nellore
Ongoh
Nizal11i1bild
Hyderabild
Srikakulam

12.9

311,16,820
22,43,354
32,41,864

Visakhapatnam
Viziilnagaram
Warangill

7.7

37,99,213

Eillru

Provisional

ARUNACHAL PRADESH

Clpitill

: lO,Y6,7lJ2 (as per 2001 Prov, figure)

83,743 sq km

POpUl.lti()1l

ltallagar

Principii] Langllilges : MonpiI, Miji, Aka, Sherdukpen, Nyishi,

Apiltilni, T.Igin, Hill Mid, Adi, DigaNMismi, Idu-Mishmi, Khamh, Mijll-Mishmi,
Noell', l~lngsa ,lIld Wanchu.

HISTORY AND GEOGRAPHY

Arunachal Pradesh, the erstwhile North-East Frontier Agency shares
international boundaries with Bhutan, Tibet, China and Myanmar to the west,
north-east, north and east respectively, and the state boundaries with Assam
and Nagaland. The terrain consists of submontane and mountainous ranges,
sloping down to the plains of Assam, divided into valleys by the rivers
Kameng, Subansiri, Siang, Lohit and Tirap.
There are practically no'records relating to the history of this area, except
some oral literature and a number of historical ruins fOW1d mainly in the
foothills. Subsequent explorations and excavations have identified the ruins
as dating approximately from the early Christian era. The historical evidence
indicates that not only was the area well known, but the people living here
had close relations with the rest of the country.
Modem history of Arunachal Pradesh, begins with the inception of
British rule in Assam after the treaty of Yandaboo concluded on
24 February 1826.

780

India 2005

Before 1962 the area was popularly known as the North East Frontier
Agency (NEFA), and was constitutionally a part of Assam. Because of its
strategic importance, however, it was administered by the Ministry of External
Affairs until 1965 and subsequently by the Ministry of Home Affairs, through
the Governor of Assam. In 1972 it was constituted as a Union Territory and
renamed Arunachal Pradesh. On 20 February 1987, it became the 24th state
of the Indian Union.

AGRICULTURE AND HORTICULTURE

Agriculture is the mainstay of the people of Arunachal Prad()sh and h<ld
mainly depended on jJwm cultivation. Encouragement is being given to the
cultivation of cash crops like potatoes and horticulture crops like apples,
oranges and pineapples.

INDUSTRIES AND MINERALS

For conservation and explorations of vast minerals the Arunachal Pradesh
Mineral Development and Trading Corporation Limited (APMOTCL) was set
up in 1991. Namchik-Namphuk coal fields are taken up by ArMOTeL.
To provide training to craftsmen in different trades there are two
Industrial Training Institutes at Roing and Daporijo. At present there are 88
crafts and weaving centres, 18 medium scale industries, 5,224 registered SS!
units besides one mini-cement plant, a fruit processing plant and a citronella
oil distillery.

IRRIGATION AND POWER

A total area of 87,578 hectares has been irrigated since inception till 199899. The installed capacity of the State is about 30,735 MW. As many as 2,597
villages have been electrified out of 3,649 villages in the State.

TRANSPORT

Roads: Arunachal Pradesh has 330 km of national highway.

FESTIVALS
Some of the important festivals of the State are: Mopin and Solung of the
Adis, Lossar of the Monpas and Boori-boot of the Hill Miris, Sherdukpens,
Dree of the Apatanis, Si-Donyi of the Tagins, Reh of the ldu-Mishmis, Nyokllnl
of the Nishs, etc. Animal sacrifice is a common ritual in most festivals.

TOURIST CENTRES
Places of tourist interest are : Tawang, Dirang, Bomdila, Tipi, Itanagar
Malinithan, Likabali, Pasighat, Along, Tezu, Miao, Roing, Daporijo
Namdapha, Bhismaknagar, Parashurarn Kund and Khonsa.

States and Union Territories

781

GOVERNMENT
Govenlor

V.c. Panoey

Chief Secretary

Ashok Kumar

C/li('( Minister:

Gegong Apong

Jurisdiction of

Falls under Guwahati

High Court

High Court

Speaker

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S .No. District

Area (sq km)

Population

Headquarters

1.

Tawang

2,172

2.

West Kameng

7,422

74,595

Bomdila

3.

East Kamcng

4,134

57,065

Seppa

4.

Papum-Pare

2,875

1,21,750

Yupia

5.

Lower Subansiri

10,135

97,6)4

Ziro

6.

Upper Subansiri

7,032

54,995

Daporijo

7.

West Siang

8,325

1,03,575

8.

East Siang

4,005

87,430

Pasighat

9.

Upper Siang

34,705

Tawang

Along

6,188

33,146

Yingkiong

Dibang Valley

13,021}

57,543

Anini

11.

Lohit

11,402

1,43,478

Tezu

12.

Changlang

4,662

1,24,994

Changlang

13.

Tirap

2,302

1,00,227

Khonsa

14.

Kurung-Kume),

NA

NA

10.

Laaying-Yangte

ASSAM
Are"

: 71'1,438 s'1 km

Pop"/ation

2,66,38,407

Capital

: Dispur

Principill Lil/lguilge

Assamese

HISTORY AND GEOGRAPHY

The word' Assam' as interpreted by some scholars is derived from the Sanskrit
word Asoma meaning peerless or unparalleled. But the widely accepted
opinion of the academic circles today is that the term has come from the
original name of the Ahoms, who ruled the land for about six hundred years
prior to its annexation by the British. The races like Austric. Mongolian,
Dravidian and Aryan that came to this land long-long ago have contributed
to its composite culture. Thus Assam has a rich legacy of culture and
civilization.
Assam was known as Pragjyotisha or the place of eastern astronomy
during the epic period and later named as Kamrupa. The earliest epigraphic
reference to the kingdom of Kamrupa is found in the Allahabad pillar

782

India 2005

mscription of king Samudragupta. Kamrupa is mentioned as a Pratyantil or

frontier state outside the Gupta empire but with friendly and subordinate
relation to it Hiuen Sang, the Chinese scholar pilgrim who visited Kamrupa
in about 743 AD on an invitation of its monarch, Kumar Bhaskar Varman,
left a record of the kingdom he called Kamolupa. Kamrupa also figured in
the writings of the Arabian historian Alberuni in the eleventh century. Thus,
from the epic period down to the twelfth century AD, the eastern frontier
kingdom was known as Pragjyotisha and Kamrupa and kings called themselves
'Lords of Pragjyotisha'.
The advent of the Ahoms across the eastern hills in 1228 AD was the
turning-point in Assam history. They ruled Assam nearly for six centuries.
The Burmese entered through the eastern borders and overran the territory
at a time when court intrigues and dissensions were sapping thE' vitality of
the Ahom royalty. It became a British protectorate in 1826 when the Burmese
ceded Assam to the British under the provision of the Treaty of Yandilho.
Assam is the sentinel of north-east India and gateway to the NorthEastern States. The State is close to India's international borders with
Bangladesh and Bhutan. Assam is surrounded by Bhutan and Arunachal
Pradesh on the north, Manipur, Nagaland and An.1llachal Pradesh on the east
and Meghillaya, Tripura and Mizoram on the south.
AGRICULTURE

Assam is an agricultural State. Agriculture occupies an important plan in

the economy of the State. The principal food crop is rice. The cash crops ,\n'
jute, tea, cotton, oilseeds, sugarcane, potato, etc. Noteworthy horticulture
items are orange, banana, pineapple, arecanut, coconut, guava, mango,
jclckiruit and citrus fruits. The State has an estimated 39.44 lakh hectares gross
cropped area of which net area sown is about 27.01 Jakh hectares.
FORFSTS

Assam is known for her rich forest wealth. The total area undcr forcsts was
20.24 lakh hectares at the end of March 1999, (lut of which, area under
reserved forests was 17.42 lakh hectares. This constituted 22.21 per cent of
the total forest area.
WILD LIFE
The State has five National Parks and eleven wildlife snnctuaries. The
Kaziranga National Park and the Manas Tiger Project (National Park) Me
internationally famous for one horned Rhino and Royal Bengal Tiger
respectively.

INDUSTRY
Of agriculture-based industries, tea occupies an important place. There arc
six industrial growth Centres in the State and two such Centres are being
set up at Balipara and Matia. Presently four oil refineries have been working

States and Union Territories

783

in the State including the one at Digboi. Construction of the Export Promotion
Industrial Park (EPIP) at Amingaon near Guwahati is nearing completion. A
Software Technology Park will be constructed at Borjhar near Guwahati. A
Central Institute for Plastic Engineering Technology (CIPET) has been
established at Amingaon near Guwahati. Assam has always enjoyed the
highest reputation for her arts and crafts associated with her cottage
industries. Cottage industries include handloom, sericulture, cane and bamboo
articles, carpentry, brass and bell-metal crafts. Assam produces varieties of
silk, Endi, Muga, Tassar, etc., Muga silk is produced only in Assam in the
world.

IRRIGATION AND POWER

Irrigation potential created up to 1999-2000 was about 8.98 lakh hectares of
which the Irrigation Deparatment had covered an area of 4.95 lakh hectares.
The major power stations are Chandrapur Thermal Project, Namrup
Thermal Project and a few Mobile Gas Turbine Units along with a mini hydroelectric project. Revitalising the Thermal Power Station of Bongaigaon and
completing the Karbi-Langpi Project will boost the power supply in the State.
Approval has been received for Tipaimukh Dam Project.

TRANSPORT
Roads

The total length of roads in the State was 34,000 km which includes 2,038
km of National Highways. The construction of 160 km of barbed wire fencing
and 27 km of the border road along the Indo-Bangladesh International have
been completed.
Railways

The length of railway tract in Assam is 2,391.76 km comprising 1,061.29 km

under broad-gauge and 1,330.47 km under meter-gauge lines. The extension
of broad-gauge line from Guwahati to Dibrugarh has been completed and
the Naranarayana Setu, the third bridge over the Brahmaputra at JogighopaPancharatna was opened in 1998.
Aviation
The regular civil air services are operating from Lokopriya Gopinath Bordoloi
Airport (Guwahati), 5810mbari (Tezpur), Mohanbari (Dibrugarh), Kumbhirgram
(Silchar), Rawriah Uorhat) and Silonibari (North Lakhimpur).

FESTIVAlS
Assam has an exclusive range of colourful festivals. Bmu is the chief festival
celebrated on the three occasions. Rongali Bmu or Bohag Bmu marks the
advent of the cropping season and. it also ushers in the Assamese New Year.
Bhogalj Bmu or Magh Bmu is the harvest festival and Kati Bmu or Kongilli
Bmu coming in autumn is a simple affair.
Religion accounts for a large variety oLfestivals. Vaishnavites observe

India 2005

784

birth and death anniversaries of prominent Vaishnava saints through day-long

singing of hymns and staging of Bhaonas (theatrical performances in traditional
style). Ambubachi in Kamakhya shrine, Sivaratri Mela at Umananda and
other places near Siva temples, Durga Puja, Diwali, Dol-latra, Id, Christmas,
Ashokastami Mela, Rash Mela, Parasuram Mela are other religious festivals.

TOURISM
Important places of tourism in and around Guwahati are Kamakhya temple,
Umananda (Peacock Island), Navagraha (temple of nine planets), Basistha
Ashram, Dolgobinda, Gandhi Mandap, State Zoo, State Museum, Sukreswar
temple, Gita Mandir, Madan Kamdev temple, a magnificent archaeological
place of interest, and Saraighat bridge.
Other places of tourist interest in the State are: Kaziranga National Park
(famous for one horned rhino), Manas Tiger Project, Pobi-tora and Orang
(Wildlife sanctuaries), Sibsagar (Shiv Temple-Rangghar-Karengghar), Tezpur
(Bhairavi temple and scenic beauty), Bhalukpung (Angling), Haflong (health
resort with Jatinga hills), Majuli (largest river island in the world), Chand ubi
lake (picnic spot), Hajo (meeting point of Buddhism, Hinduism and Islam),
Batadrava (birth place of great Vaishnava saint Sankaradeva) and Sualkuchi
(famolls for silk industry).

GOVERNMENT
G(wemor

: L.t. Gen. (Retd.)

Ajai Singh

Chief Milllst!'f : Tilnm Gogoi

Chief SeCll'tilry :
Chief Justice

: Prilhibi Majhi

J.P.

Rajkhowa

: D. Biswas

Jurisdiction {If : All North-Eastern States

Guwilhilti Hig/l
COllrt

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No.

District

1.

Dhubri

Area (sq km)

2.838

Population (in lakh)'

16.35

District
Headquarters
Dhubri

2.

Kokriljhar

3.129

9.30

Kokrajhar

Bongiligiloll

2,510

9.06

Bongaigilon

4.

Goalpara

1,824

8.22

G(lalp"ra

5.

l3i1rpt'la

3,245

16.42

Bllrpetil

6.

Nalbilri

2,257

11.38

Nalbari

7.

KilInrup

4,345

25.]5

Guwahftli

8.

Darrang

3,481

15.04

MangaJdoi

9.

Sonilpur

5.324

16.78

10.

Lakhimpur

2,277

8.89

Tezpur
North Lakhimpur

States and Union Territories

785

11.

Dhemaji

3,217

5.119

Dhemaji

12.

Morigaon

1,704

7.76

Morigaon

13.

Nagaon

3,831

23.15

Nagaon

14.

Golaghat

3,502

9.46

Golaghat

15.

Jorhat

2,8!i1

10.lJ<l

Jorh .. t

16.

Sibsagar

2,668

10.53

Sibsagar

17.

Dibrugarh

3,381

11.72

Dibnlgarh

18.

Tiru;ukia

Tinsukia

19.

Karbi-Anglong

20.

3,790

11.50

10.434

IU2

Diphu

North Cachar Hills

4,888

1.86

Haflong

21.

Karimganj

1,809

lll.O4

Karimganj

22.

Hailakandi

1,327

5.43

Hailakandi

23.

Cachar

3,786

14.42

Silchar

Provisional

BIHAR
Area

94,163 sq km

Populalioll

8,28,78,796

CllpilRl

Patna

Principal Language:

Hindi

HISTORY AND GEOGRAPHY

Bihar finds mention in the Vedas, f'urallils, epics, etc., and was the main scene
of activities of Buddha, and 24 Jain Tirthankars. Great rulers of the State before
the Christian era were Bimbisar, Udayin, who founded the city of Pataliputra.
Chandragupta Maurya and Emperor Ashoka and Maurya dynasty, the Sungs
and the Kanvas. Then came the Kushan rulers followed by Chandragupta
Vikramaditya of the Gupta dynasty. Muslim rulers made in-roads into the
territory during medieval period. The first conqueror of Bihar was Mohammedbin-Bakhtiar Khalji. The Tughluqs and then the Mughals followed the !<haljis.
One of the major states of the Indian Union, Bihar is bounded on the
north by Nepal, on the east by West Bengal, on west by Uttar Pradesh and
on the south by Jharkhand. Bihar has a number of rivers, the most important
of which is the Ganga. The other rivers are the Sone, Poonpoon, Falgu,
Karmanasa, Durgawati, Kosi, Gandak, Ghaghara, etc.
AGRICULTURE
Bihar has a total geographical area of about 93.60 lakh hectare, out of which
only 56.03 lakh hectare is the net cultivated area and gross cultivated area
being 79.46 lakh hectare. About 33.51 lakh hectare net area arid 43.86 bikh
hectare gross area receive irrigation from different sources. Principal food
crops are paddy, wheat, maize and pulses. Main cash crops are sugarcane,

786

India 2005

potato, tobacco, oilseeds, onion, chillies, jute and mesta. Bihar has notified
forest area of 6,764.14 sq km, which is 7.1 per cent of its geographical area.

INDUSTRIES
Major Industries are: Railway Wagon Plants of Bharat Wagon Limited at
Muzaffarpur and Mokamah; Oil Refinery of Indian Oil Corporation at
Barauni; Fertilizer Manufacturing Plant of Hindustan Fertilizer Corporation
Limited (HPCL) at Barauni and Pyrites Phosphates & Chemicals Limited
(PPCL) at Amjhor; Cotton Spinning Mills at Siwan, Pandaul, Bhagalpur,
Mokamah and Gaya; 13 sugar mills in private sector and 15 in the public
sector located in south and north Bihar with a total crushing capacity of 45,000
TPD. In addition, distilleries at Gopalganj, West Champaran, Bhagalpur and
Riga (in Sitamarhi district); Finished Leather Industry in West Champaran,
Muzaffarpur and Barauni; Jute Mills at Katihar and Samastipur; Medicine
Manufacturing Unit at Hajipur; Food Processing Units as also Vanaspati
Manufacturing Units at Aurangabad and Patna; besides Kalyanpur Cement
Limited at Banjari, are notable in the industrial map of Bihar.

IRRIGATION
Bihar has an irrigation potential of 102.50 lakh hectare. Out of this, 53.53 lakh
hectares is to be created through major and medium irrigation schemes and
48.97 lakh hectares through minor irrigation schemes. Uptil now irrigation
potential of 26.80 lakh hectares through major and medium irrigtion and 22.51
lakh hectares through minor irrigation has been created.

TRANSPORT
Roads
Up to March 2001, Bihar had 13,412.80 km of pucca roads including 2,461.73
km of national highways and 10,951.07 km of state highways and major
district roads.

Railways
Bihar has a fairly good railway network. Communication in north Bihar is
difficult as there is only one railway bridge at Mokamah. A few railway routes
cOMecting important places like Muzaffarpur-Samastipur-Barauni-I<atihar
and Muzaffarpur-Chapra-Siwan have been converted into broad gauge. The
main rail junctions are at Patna, Gaya, Muzaffarpur, I<atihar and
Samastipur, etc.

Aviation
There is an illternational airport at Patna, besides landing grounds in aU major
districts of the State.
TOURIST CENTRES
Important places of tourist interest are Rajgir, Nalanda, Vaishali, Pawapuri
(where Lord Mahavira breathed his last and attained Nirvana), Bodh Gaya,

States and Union Territories

787

Vikramshila (ruins of Buddhist University of higher learning), Gaya, Patna

(ancient city of Patliputra), Sasaram (tomb of Shershah Suri) and Madhubani
(known for famous Madhubani Paintings).

GOVERNMENT
G(lvemor

Bula Singh

Chief Secretary

K.A.H. Subrllmaniam

C1lie( Minister

Mrs Rabri Devi

Chief Justice

Nagendra Rai

Speaker

SadlltlAnd Singh

Jurisdiction of
High Court

Bihar

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No.

District

Area (in sq km)

Population

Headquarters

1.

Arllrill

2,796.8

21,24.831

Araria

2.

Aurangabad

3,389.2

20,04,960

Aurangablld

3.

8egusarai

1,889.1

23,42,989

Degusarai

4.

Bhagalpur

2,501.9

24.:m,331

Bhagalpur

5.

Banka

3.020.2

16,08,778

Banka

6.

Bhojpur

2,337.0

22.33.415

Arrah

7.

Buxar

1,633.6

14,03,462

Buxar

8.

Kaimur (Bhabhua)

1,840.3

12.84.575

Bhabhua

'I.

Darbhanga

2.502.0

32,85,473

Oarbhanga

HI.

East Champa ran

4,154.8

39.33.636

Motihari

n.

Caya

4,941.0

34,64.983

Gaya

12.

Gopalganj

2.009.2

21,49,343

Gopalganj

13.

JahAnabad

1,569.3

15,11,406

Jahanabad

14.

Jamui

2.996.5

13,97,474

Jamui

15.

SahArsa

1,195.6

15,06,418

Saharsa

16.

KatlhAr

3.009.9

23,89,533

Katihar

17.

I<ha.gllria

1,485.8

12,76,677

Khagaria

18.

Kiwnganj

1.938.5

12,94.063

Kishangllnj

19.

Madhepurll

1,797.4

15,24,596

Mcldhepura

20.

Madhubani

3,477.8

35,70,651

Madhubani

21.

Munger

11,35,499

Munger

22.

Lakhisarai

23.

Shelkhpura

24.

Muuffarpur

3,302.2

3,122.7

8,01,173

Lakhisarai

5,25,137

Sheikhpura

31,43.836

Muuffarpur

788

India 2Q05

25.

Nalanda

2,361.7

23,68,327

Biharsharif

26.

Nawada

2,497.5

18,!19,425

Nawada

27.

Patna

3.130.1

47,09,851

P,ltna

28.

PUnlf.'<1

3,202.3

25,40,771l

Pllrllt'a

29.

Rohtas

3,838.2

24,48,762

SaSMillll

30.

Samastipur

2,578.7

34,13,413

Samilstipur

31.

Saran

2,624.1

32,51,474

Chapril

32.

Sitalharhi

2,627.7

26,(>9,887

Sitamarhi

33.

Shf.'ohar

34.

Siw<111

35.

5,14,288

Siwohitr

2,213

27,OS,840

Siwitll

Supilul

2,984.9

17,45,069

Supaul

36.

Vaishali

1,995.3

27,12,389

Hilzipur

37.

West Champariln

4,249.9

30,43,044

Bettiilh

CHHATTISGARH
Areil

1,36,034 sq km

PopuliltillJJ

2,07,95,956 (Census 20(1)

Capital

Raipur

f'rincip,i/ Langll.WI

Hindi

HISTORY AND GEOGRAPHY

Chhattisgarh, carved out of Madhya Pradesh came into being on 1 Novt:mber
2000 as the 26th State of the Union. It fulfills the long-cherished demand of the
tribal people. In ancient times the region was known as Dakshin-Kausal. This
finds mention in Ramayana and Mahabharata also. Between tlw sixth and
twelfth centuries Sarabhpurias, Panduavanshi, Somvanshi, Kalchuri and
Nagvanshi rulers dominated this region. Kalchuris ruled in Chhattisgarh from
980 to 1791 AD. With the advent of Britishers in 1854, Raipur gained prominence
instead of capital Ratanpur. In 1904 Sambalpur was transferred to Orissa and
estates of Sarguja were transferred from Bengal to Chhattisgarh.
Chhattisgarh is bounded by southern Jharkhand and Orissa in the east.
Madhya Pradesh and Maharashtra in the west, Uttar Pradesh and western
Jharkhand in the north and Andhra Pradesh in the south. Areawise Chhattisgarh
is the ninth largest state and population-wise it is seventeenth state of tht'
nation.
AGRICULTURE
Agriculture and allied activities account for nearly 80 per cent ':>f the work
force in the state. Out of the geographical area 13,787 thousand hectares, gross
cropped area is 4,799 thousand hectares, which constitutes about 35 per cent
of the total geographical area. Kharil is the main cropping season which
accounts for about 4,640 thousand hectares. Rice is the predominant crop of
the state; other important crops are Maize, Wheat, Niger, Groundnut ano

States and Union Territories

789

Pulses. The state has one of the biggest collection of Rice Germplasm, which
has approximately 21,000 entries. Horticulture crops Me grown in an arca of
about 123 thousand hectares. States innovative, "Rajiv Kisan Mitan" programme
for encollraging famlers, to move away from unviable varieties of paddy to
commercially viable varieties of paddy and other crops is launched just two
years ago and now over 5.18 lakh hectares of land is under this diversification
programme.
rorest occupies about 6,247 thousand hectares which constitutes about 45
pl'f cent of the ttjtal geographical area. The state has constituted 3 national
parks and 10 wild life sanctuaries to conserv(' wild life in general and
endangered species in particular.
INDUSTRY
Chhattisgarh is generously bestowed with natural resources like forests,
minerals and surface water. Till yesteryears-the State has undergone a
radical change ilnd is thriving with industrial activities now. Chhattisgarh is
producing approximately 20 per cent of steel and 15 per cent in the country.
Many Government of India undertakings like Bhilai Steel Plant, National
Mineral Dt!veloprnent Corporation, South-Eastern Coal Ficld Limited, NTPC
imd a number of large cement plants by groups like ACe, Cujarat Ambuja,
Grasirn, L&T, CCI and La-farge of hancc and many steel projects (sponge
iron/ pig iron route) ill private sector are also under different stages of
implementation. There are approximately 130 steel re-rolling mills, a number
of mllli steel plants, ferro-alloy units, steel/cast iron casting units, enginl'ering
and f,tbrication units apart from huge number of agro based and food
processing, chemical, plastic, constructions material, forest produce based
units.
Strategically located in central India, Chhilttisgarh is able to supply
power to units for all the time. There art.' hugc co(\l reserves (87 per cent of
India) in the state, offering clWilP pith('ild power generation opportunities and
has potential to produce up to 50,000 MW of power. NTPC is now installing
,1 new power gener,ltioll lInit, IMgest (vcr. by it in Dilaspur District. NTPC has
started construction on its 2,6.tO MW Super Thermal plant in Sipat and another
600 MW pltlnt in Korba. Government of Cujarat is putting lip a 500 MW
)?;cncration plMlt in Korbil. St'v('ral other states arc also interested in installing
plants here. Private sector MODs for more th,\11 1,500 MW and more projl~cts
drc in the pipeline. Chhattis~arh State Industrial Developm~nt Corp. Ltd.,
Raipur has developed, 111aintilined and is managing approximately an area of
3,112 hectares of industrial land. More than 830 industries with investment of
more than Rs 16,510 million providing direct employment of 25,000 persons
have already been setup on the land developed by this corpofdtion. One steel
plant in Nagarnar, JClgdalpur (13(15ta1') in collaboration with NMDC is coming
up on the basis of ROInclt-Process. Rani Durgavati Industrial Area-Anjani
Pendra Road, Cycle Complex-Siltara is established in Raipur District

790

India 2005

Development of food park and Agro Park is in progress. LT. Park has been
established by CHiPS, Apparel Park is also proposed in the state. Integrated
infrastructure development centres are proposed at Birkoni, District
Mahasamund and village Hathneora, Distt. ]anjgir Champa, Process of
identification of land in all districts for upgradation of existing industrial areas
and establishment of new industrial areas is under progress.
Chhattisgarh Government has enacted a special law "Chhattisgarh
investment Promotion Act, 2002". This lays down statutory time limits for all
clecmmccs, to be given by a Single Point-of-investor Conti1ct. Pacilitation
services for the investor and time bound approvals are thus guaranteed by law
in Chhattisgarh. The policy based on good governance and good infrastructure
have attracted entrepreneurs ilnd all the MOUs worth Rs 60,000 crore are
taking place, to establish various industries, would also substantiate the thrust
on value addition.
INFORMATION TECHNOLOGY
E-Governance in Chhattisgarh is oriented towards ensuring people, access to
government, this makes the government even more responsive and transparent.
CHiPs (Chhattisgarh lnfotech and biotech Promotion Society) was setup with
a high powered governing council under tlw Chief Minister's chairpersonship,
to act as a prime mover for IT and Biotechnology in the state. Schemes worth
over Rs 50 crore are under implementation. The largest secondary schoolll'vel
IT programme "Indira Soochna Shakti" is achieving its target. All citizen
services of e-governance are under one umbrella project called CHOlCl:
(Chhattisgarh Online Information for Citizen Empowerment). BHUIYAN
programme (Bhuiyan means land in Chhattisgarhi) under CHOICE is ,1
networked land records service ilccessible from "virtual" Tehsil offices, within
easy reach of villagers on an anytime-anywhere basis.
MINERAL RESOURCES
Chhattisgarh hosts a wide variety of minerals found in igneous, scdimt'ntMY
and metamorphic terrains. Large deposits of coal, iron ore, Limestone, H(luxitp,
Dolomite and Tin ore are located in several parts of t}w stilh.'. Lilll'ly,
Diamondiferous Kimberlites identified in Raipur district arc likely to yield
substantial quantity of Diamonds. Ml'dium to small deposits of gold, bClSl'
metals, quartzitc, soap stone, Statite, Fluroite, Corrundum, Grilphite, Lepidolite,
Amhlygonite of workilble size arc' also Iik(~ly to graduatl' to the category of
large deposits after prospecting. Twenty per cent of the country's stl'cl and
cement is produced in thl~ State. It is the only tin-ofe> producing state in 111<'
country. The mineral resources have immense potential for large investment in
mining, setting of milwral based industries and generating employment
Chhattisg;uh is nestling atop the world's largest Kimberlite Mea. Eight bfock~
have been demarcated for diamond exploration. Apart from diamond, fOlIi
blocks of gold exploration and five blocks for base metal investigation haw
been demarcated.

States and Union Territories

791

Recently the Government of Chhattisgarh has constituted a mineral

development fund. Five per cent of the total mineral revenue collected in
preceeding year will be ear-marked towards the fund and this amount will be
used for the overall development in mineral sector as well as technical
updation. The mineral depOSits of the state have contributed 5.5236 billion
rupees (95.4 million US$) during 2002-2003, while the value of mineral
produced during the year 2002-2003 has reached 41 billion rupees.
IRRIGATION AND POWER
When the state came into being, the total irrigation capacity was 13.28 lakh
hectares (as on 1 November 2000). After that 1.25 lakh hectare additional
capacity was created within 2 years and nine months, by mobilising resources
of various departments and public participation, construction of 50,000 debris
on the farmer's land, a total of 5 lakh hectare additional capacity had been
created. Major completed projects are Tandula, Kadar and Pairy. Hasdev,
Mahanadi Reservoir Proj('ct, Sondhur and Jonk are major projects under
construction. 30 medium projects were completed and six projects are under
construction. 2,017 minor projects were completed and 416 are under
construction.
The total capacity of State Electricity Board is 1,381.05 MW, out of this
the thermal power share is 1,260 MW and rest is hyde! power. The state
government has introduced a very pro-active power policy under which the
public sector represented by the Chhattisgarh state electricity board as well as
the private sector have well definc.>d roles to play. Prior to the formation of the
state only about Rs 15 crore, annually, were spent on upgradation of
infrastructure but after its formation the annual investment rose up to Rs 397
crore. The board is investing in modernisation, strengthening transmission and
distribution networks and creating more generating capacities. The Board
itself is adding 500 MW installed generating capacity (i.e., 2 X 250 MW unit)
in Korba. The private sector has been encouraged to setup gentrating capacities
and to make third party sales outside the state. Korba based National Thermal
Power Corporation's capacity is 2,000 MW and a new unit of the plant is being
established at Bilaspur. Around 93 per cent of 19,720 inhabited villages of
Chhattisgarh have been electrified.
TRANSPORT

ROiIds

The total length of the roads in the State is 35,388.54 kIn. T~e length of the
national highways are 1,827.30 km, state highways are 3,611 kIn, district roads
are 2,118 kIn and rural roads are of 27,566 kIn.
Two north-south and four east-west road corridors are being constructed
in the state for better connectivity having total length of 2,976 km.

Railways
Raipur, 8ilaspur, Ourg, Rajnandgaon, Raigarh and Korba are important railway

792

India 2005

stations. Total railways route length is 1,053 km. New railway zone in Bilaspur
has started functioning from 1 April 2003.
Airlines

Raipur is connected with New Delhi. Nagpur, Mumbai and Bhubaneswar by

daily flights. Bilaspur. Bhilai. Raigarh, Jagdalpur. Ambikapur. Korba,
Jashpurnagar and Rajnandgaon are having airstrips.
FESTIVALS
Chhattisgarh is famolls for its festivals. Pola, Nawakhai, Dussehara, Deepawali,
Holi, Govardhan Pooja are celebrated with gaiety and festivity.
TOURIST CENTRES
Chhattisgarh situated in the heart of India, is endowed with rich cultura:
heritage and attractive natural diversity. The State is full of ancient monuments,
rare wildlife, carved temples, Buddhist sites, palaces, water-falls, caves, rock
paintings, and hill plateaus. Chhattisgarh offers the tourists" A Destination
with a Difference". Bastar, with its unique cultural and ecological identity, will
come as a breath of fresh air. Chitrakote Falls, a spot where the river Indravati
has an abrupt fall of 96 ft, which are like horse shoe curve, are often compared
to the Niagra falls. Tirathgarh Falls, the picturesque waterfall of Kanger river
cascades down from a height of 100 ft in the form of steps. Other important
destinations arc the Keshkal valley, Kangerghat National Park, Kailash caves
and Kutumbsar caves which are rich in natural beauty. In Bilaspur, Mahamaya
temple at Ratanpur, Khutaghat waterfall, Dindneswari Devi temple of Mallahar
and the Achanakmar sanctuary, Udanti sanctuary near Raipur, Pali and
Kendai waterfall of Korba district are important places of tourist interest. The
Sabari temple of Kharod Janjgir Champa, Nar Narayan temple of Sivarinarayan,
Vishnu temple of Janjgir are important religious places. The tourism policy is
focused on creating a unique image for the State and to position it as an
attractive destination for both domestic as well as foreign tourists. Some major
objectives of this policy are: To promote economically, culturally and ecologically
sustainable tourism in the State. Encourage and promote private sector initiatives
in developing tourism-related infrastructure. Limit the rok~ of Government to
that of facilitator and provider of public goods. Increase the contribution of
tourism to the economic development of interrelated sectors. The state has set
up a State Tourism Promoting Board as the nodal agency for translation of the
policy into action for the sustained development of the sector.

GOVERNMENT
GOl'I.'I'IIor

Krishna Mohan Seth

ChieF 1llSliee

Justice N.H.A. Kurangi1

C/tief Minister

Dr. Rilllliln Singh

Chief Secretary

A.K. Vijay Vergta

SpmkL'r

Prem Prakash

Jurisdicti(lll of
High Court

Chhllttisgarh

States and Union Territories

793

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No.

District

Area (in sq km)

Population

Headquarters

Bastar

17,016

13,02,253

Jagdalpur

2.

Bilaspur

8,56'1

19,93,042

Bilaspur

3.

Durg

8,702

28,01,757

Durg

4.

Raigarh

6,528

12,65,084

Raigarh

5.

Raipur

13,445

30,l19,042

Raipur

6.

Rajnandgaon

!!,023

12,81,811

Rajnandgaon

7.

Sarguja

16,034

19,70,661

Ambikapur

~.

Koriil

5,978

5,85,455

Bilikunthpur

9.

Jashpur

6,457

7,39,780

Jashpur

10.

Janjgir-Champ~

4,467

13,16,140

Janjgir

11

Korbil

5,76'1

10,12,121

Korb<l

12.

Kilnk'r

6.434

6,51,333

Kanker

13.

Dilntewara

15,610

7,1'),065

Danlewar<l

14.

Milhilsamunrl

4,963

8,60,176

Mil ha sa n 1lllld

15.

Dhamatilri

4,081

7,03,561}

Dhamtari

16.

Kabirrlham (Kilwilrdha) 3,'158

5,84,667

Kabirdham (Kawardha)

GOA
An.-.I

3,702 sq km

PopulatjoJl

CilPI til I

Panaji

Principal Languclg's : Konkani ilnd Marathi

13,43,998

HISTORY AND GEOGRAPHY

Goa, known in the bygone days as Gomanchala, Gopakapattam, Gopakapuri,

Govapuri, Gomantak, etc., abounds in a rich historical heritage. Early history
of Goa is obscure. In the first century of the Christian era, Goa was a part
of the Satavahana empire, followed by the Kadamba, the Rashtrakutas of
Malkhed, the Chalukyas and the Silharas. The empire of the Yadavas by the
end of the 14th century was displaced by the Khiljis of Delhi and thus Muslim
rule came to Goa. After the discovery of the sea route to India by Vasco-daGama in 1498, many Portuguese expeditions came to India. In 1510, Alfonso
de Albuquerque with the help of the emperor of Vijayanagar attacked and
captured Goa. With the arrival of the Jesuit priest Francis Xavier in 1542
proselytisation began in Goa. However, the Portuguese continued to rule over
the territory except for an interlude during the latter half of the 17th century
when Shivaji conquered a few areas in and around Goa. Even after India's
independence, Goa continued. to be in the hands of the Portuguese. However,

794

India 2005

they could not fulfil the aspirations of the Goan people and ultimately on
19 December 1961, Goa was liberated and made a composite union territory
with Daman and Diu. On 30 May 1987 Goa was conferred statehood and
Daman and Diu was made a separate union territory.
Goa is situated on the western coast of the Indian Peninsula. On its north
runs the Terekhol river which separates Goa from Maharashtra and on the
south lies North Canara district of Karnataka. On the east lie the Western
Ghats and in the west the Arabian Sea. Panaji, Margao, Vasco, Mapusa and
Ponda are the main towns of Goa.
AGRICULTURE
Rice is the main food crop. Pulses, ragi and other food crops are also grown.
Main cash crops are coconut, cashewnut, arecanut, sugarcane and fruits like
pineapple, mango and banana. The State has a rich forest cover of more than
1,424 sq km.
IRRIGATION AND POWER
With the commissioning of dams like Selaulim and Anjw'\em and other minor
irrigation projects, area under irrigation is rising steadily. Work on THari dam
has also been taken up. Total irrigation potential created by these projects
is 43,000 hectares. All villages have been electrified leading to cent per cent
coverage.
INDUSTRY AND MINERALS
The State has 5,765 small-scale industrial units with a total investment of
Rs 219.09 crore and employment opportunities for 39,432 persons, in large
and medium sector, 140 units with an investment of Rs 1,555.65 crore
employing 18,923 persons. There are 16 industrial estates besides a new
electronic city coming up in the State. Mineral products are ferro-manganese,
bauxite and iron ore contributing substantially to the economy of the State
through exports.
TRANSPORT
l~oads

Of the motorable roads, national highway constitutes 224 km, state highways
232 km and district roads 815 km.

Railways
Goa is linked with Mumbai, Mangalore and Thiruvananthapuram through the
Konkan Railway, which has introduced several fast trains on these lines. Vasco
cia Gama is connected with Bangalore and Belgaum on the South Central
Railway, pesently for goods traffic only.

Aviation
Mumbai, Delhi, Thiruvananthapuram, Cochin, Chennai, Agati and Bangalore
are linked with Dabolim through regular Airlines services.

States and Union Territories

795

Ports
Mormugao is the major port in the State. Mormugao handles cargo vessels.
Minor ports are located CIt Panaji, Tiracol, Chapora Betul and Talpona, out
of which Panaji is the main operative port. One offshore berth at Panaji has
been commissioned recently.
TOURIST CENTRES
Important tourist centres are Colva, CalClngute, Vagator, Baga, Harmal,
Anjuna and Miramar beaches; Basilica of Bom Jesus and Se Cathedral
churches at Old Goa; Kavlem, Mardol, Mangl1eshi, Bandora temples; Aguada,
Terekhol, Chapora and Cabo de Rama Forts; Dl1dhsagar and Harvalem
Waterfalls and Mayem Lake Resort. The Stat' has rich wildlife sanctuaries,
viz., Bondla, Cotigao, Molem and Dr Salim Ali Bird Sanctuary at Chorao
cov('ring an area of 354 sq km.

GOVERNMENT
Governor

S. C. ]ilmeer

Chief Seclltilry: 0.5. Negi

Chit'{ Minister

MilnohiH Pilrrikilr

Juri.~dicti()11

High Court

(,f : falls under r.l1lc1ji

Bt.'nch of Mumbili High Court

BiSWilS Siltilrkilr

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Area (sq kill)

Population

Headquarterfl

(1991 Census)

North GOil

1,7311

6.64,1\04

Pilnilji

South GOil

1,%('

5,04,989

Margao

GUJARAT
Al'('il

1,%,U24 sq km

POpuliltioll

50(171017

Cll'ltill

G'1Ildhll1~gar

PI'JIlci/MI Language'

GIII~rah

HISTORY AND GEOGRAPHY

The history of Gujorat goes back to 2000 Be. It is believed that Lord KrIshna
left Mathurll to settle on the west coast of Saurashtra which later came to
be known as Dwarka, the gateway. Later, it saw various kingdoms: Mauryas,
Guptas, Pratiharas ilnd others. It was with Chalukya (Solankis) that Gujarat;
witnessed progress and prosperity. In spite of the plunderings of Mahmud
Ghazni, the Chalukya kings were able to maintain generfll prosperity and
well-being of the State. After this gloriOUS respite, Gujarat fflced troubled times
under the Muslims, Marathas and the British rule. Before Independence, the
present territories of Gujarat used to be in two parts the British and the

796

India

2()S

Princely territories. With the re-organisation of the States, the Union of tht,
States of Saurashtra and the Union Territory of Kachchh along with the former
British Gujarat, became a part of the biggest bilingual State of Bombay. TIl('
present State of Gujarat came into being on May, 1960. It is situated on the
west coast of India. The state is bounded by the Arabian Sea on the west,
Pakistan and Rajasthan in the north and north-east respectively, Madhya
Pradesh in the south-east and Maharashtra in the south.
AGRICULTURE
Gujarat is the main producer of tobacco, cotton and groundnut in the country
and provides inputs for important industries like textiles, oil and soap. Other
important cash crops are teak, khair, sadad, haldariyo and manual bamboos.
INDUSTRY
Tht' industrial structure in the State has been gradually diversifying with tl1l;>
development of industries like chemicals, petrochemicals, fertilizers,
engineering, electronics, etc. The number of registered working factories in
the State were 19,696 at the end of 2002 with the average daily employment
to 8.40 lakh. The number of Small Scale Industrial units in the State was 2.En
lakh at the end of September 2003. Gujarat Industrial Development Corporation
(GIDC) has been assigned the role of developing industrial estates with
infrastructure facilities. At the end of December 2003 GIDC had set up 241
industrial estates.
IRRIGATION AND POWER
fhe total irrigation potential through surface water as well oS ground water
has bt'en assessed at 64.88 lakh hectares including 18.45 lakh hectares through
Sardilf Sarovar (Narmada) Project. The total irrigation potential cre,lted up
to June 2003 is worked out to be 37.35 lakh hectares. The maximum utilisation
has been estimated at 35.15 lakh hectares up to June 2003.
The total installed capacity for the state including central sector project
has increased to 8,606 MW as on 31 March 2003. Out of 18,028 villages, all
feasible 17,940 villages have been electrified in the State.
TRANSPORT

The total length of road (except municipal roads) was 74,075 km by the end
of 2002-03. The length of surfaced roads was 70,743 km at the end of 200203.

Aviation
The main airport of Gujarat at Ahmedabad is connected with Mumbai, Delhi
and other cities by daily services. Ahmedabad airport has now got the status
of an International Airport. Other airports are Vadodara, Bhavnagar, Bhuj,
Surat, Jamnagar, Kandla, Keshod, Porbandar and Rajkot.

States and Union Territories

797

Forts
Gujarat has 40 ports of which Kandla is a major one. The intermediate and
minor ports of Gujarat handled a total cargo of 841.25 lakh tonnes whereas
Kandla port handled cargo of 406.33 lakh tonnes during 2002-03.
FESTIVALS

Tarnetar fair is held at village Tametar in the honour of Lord Shiva on the
4th, 5th and 6th days of the bright half of the month of Bhadrapada (August/
September). Madhavrai fair at Madhavpur near Porbandar is, held to celebrate
the marriage by elopement of Lord Krishna and Rukmani, on the ninth day
of the bright half of the month of Chaitra (MarchI April). Ambaji fair dedicated
to Amba, mother goddness is held in Banaskantha district. The biggest annual
fair, Janmashtami the birthday of Lord Krishna is celebrated at Dwarka and
Dakar with great enthusiasm. Other festivals are Makar-Sankranti, Navratri,
Dangi darbar, Shamlaji fair, Bhavnath fair, etc.
.
TOURIST CENTRES
Religious spots like Dwarka, Somnath, Palitana, Pavagadh, Ambaji,
(Bhadreshwar, Shamlaji, Taranga and Girnar; Porbandar, birth place of
Mahatma Gandhi, places of memorable monuments of architectural and,
archaeological surprises like Patan, Siddhpur Ghurnli, Dabhoi, Vadnagar,
Modhera, Lothal and Ahmedabad; beautiful beaches like Ahmadpur-Mandvi,
Chorwad, Ubharat and Tithal; the hill station Saputara; lion sanctuary of Gir
Forest and wild ass sanctuary in Kachchh area are major tourist attractions
in the State.

GOVERNMENT
Govemor

Naval Kishore Sharma

Chief Secretilry

P. K. Laheri

Chief Minister;

Narendra Modi

Chief Justice

Bhavani Sinh

Speaker

Mangalbhai Patel

Jurisdiction of High Court

Gujarat

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Area (sq km)

Population
(2001 Census)

Headquilfters

Ahmedabad

8,087

58,16,519

Ahmedabad

Amreli

7;397

13,93,918

Amreli

Anand

2,941

18.56,872

Anand

10,757

25,04,214

Palanpur

Bharuch

6,527

13,70,656

Bharuch

Bhavnagar

9,981

24,69,630

Bhavnagar

Dahod

3,646

16,35,374

Dahod

Dang

1,764

1,86,712

Ahwa

Banaskantha

798

India 2005
.,

Gandhinagar

2,163

13,34,455

Gandhinagar

Jamnagar

14,125

19,04,278

Jamnagar

jllnagadh

8,846

24,48,173

}unilgadh

Kheda

4,219

20,23,354

Nadiad

Kuchchh

45,652

15,26,321

Bhuj

Mehsilna

4,384

18,37,892

Mehsana

Narmada

2,755

5,14,404

Rajpipla

Navsari

2,209

12,29,463

Navsari

Panchmllhlll

5,220

20,25,277

Godhara

Patan

5,730

l1,82,70<j

Patan

Porbandar

2,298

5,36,835

Rajkot

1,203

25,71,931

Rajkot

Sabarkantha

7,390

20,83,416

HimatnagaT

Sural

7,657

49,96,391

SUfll1

10,489

15,15,148

SlIrendranilg<lr

Vadodara

7,549

36.41,802

Vadodllrll

Valsad

3.035

14,10,553

Vilisad

SlIl'Imdnmagar

Porbilndar

HARYANA
AI~iI

44.212 sq kill

Populiltion

2,10,82,989

Capit.11

Chandigarh

Prillcipal Languilge

Hindi

HISTORY AND GEOGRAPHY

Haryana has a proud history going back to the Vedic Age. The state was the
home of the legendary Bharata dynasty, which has given the name Bharat
to India. Haryana finds mention in the great epic of Mahabharata. Kurukshetra,
the scene of the epic battle between the Kauravas and the Pandavas, is situated
in Haryana. The state continued to playa leading part in the history of India
till the advent of the Muslims and the rise of Delhi as the imperial capital
of India. Thereafter, Haryana functioned as an adjunct to Delhi and practically
remained anonymous till the First War of India's Independence in 1857. When
the rebellion was crushed and the British administration was re-established,
the Nawabs of Jhajjar and Bahadurgarh, Raja of BaUabgarh and Rao Tula Ram
of Rewari of the Haryana region were deprived of their territories. Their
territories were either merged with the British territories or handed over to
the rulers of Patiala, Nabha and Jind. Haryana thus became a part of the

States and Union Territories

799

Punjab province. With the reorganisation of Punjab on 1 November 1966,

Haryana was made into a full-fledged state.
. The state is b.ound by Uttar Pradesh in the east, Punjab in the west,
Hlmachal Pradesh m the north and Rajasthan in the south. National Capital
Territory of Delhi juts into Haryana.
AGRICULTURE
Agriculture ill the mainstay of more than 75 per cent population in Haryana.
The quantum of foodgrains production, which was nearly 25.92 lakh tonnes
at the time of inception of the state if likely to touch 128.48 lakh tonnes in
2003-04. Rice, wheat, jowar, bajra, maize, barley and pulses, sugarcane, cotton,
oilseeds and potato are the major crops of the state. Under the diversification
of crops, more and more area is being brought under cash crops like
sugarcane, cotton and oilseeds. New crops like sunflower, soyabean and fruits
and vegetables are also being encouraged. Efforts are being made to encourage
intensive and extensive farming in the state.
INFORMATION TECHNOLOGY
In view of the importance of Information Technology in the globalisation
process throughout the world, the Government of Haryana has implemented
a comprehensive new Information Technology Policy so that the State can
progress in the new era. The software export from the State is 45 per cent
of the total exports from the State. In the year 2003-04, the software export
from Haryana has reached Rs 5500 + crore. Gurgaon regions is ranked at
number three in the country in software exports. The emphasis is being given
on use of Hindi in Information Technology so that the benefits of IT may reach
to the masses. The IT Policy provides several incentives, these include
preferential allotment of land, relaxation in EA.R., priority for term lending,
concession in stamp duty and registration charges, exemption from pollution
control, self-certification/ exemption from various Acts, etc.
The government Centre for e-Govemance has signed a MOU with
Software Technology Parks of India (STPI), a Government of Indian organisation,
under which STPI office and Earth Station is being setup at Gurgaon.

On behalf of the Government of Haryana, Centre for e-Govemance has

initiated to set up Haryana State Wide Area Network in the State. This would
facilitate use of IT in the public' sector, which would improve the quality of
public services and also help in providing effective e-Govel'1'l:ance.

In order to give push to IT Industry, the State Government has liberalised

the norms/guidelines for setting up of Cyber Parks and Cyber City in the
State. Such as the land requirement for setting up Cyber City has been reduced
from minimum 100 acres to 50 acres, for Cyber Park from 10-15 acres to
5-15 acres and for IT units from up to 2 acres to 1-5 acres. The three-tier
basement instead of two-tier basement for parking has been allowed. The
maximum height of the building in the Cyber park/Cyber city allowed is 60

800

India 2005

metres instead of 30 metres earlier. IT Enabled Services in addition to IT

Software are allowed in Cyber Park/Cyber City.
INDUSTRY
Haryana has a large industrial base having more than 1,230 large and medium
and 80,000 Small Scale Units in the State. Haryana is a largest producer of
passenger cars, tractors, motorcycles, bicycles, refrigerators, scientific
instruments, etc. Haryana is the largest exporter of Basmati rice to the overseas
market. Panipat handlooms and carpets are known all over the world besides
its famous Pachranga Aachar.
The simple process of filling Industrial Entrepreneur Memorandum for
setting up of large and medium industry has been introduced. Up to March
2004, in Haryana 3,040 Industrial Entrepreneur Memorandum (IEMs) havf>
been filed catalyzing investment of Rs 37,420 crore and out of these 1,826 IEMs
have been implemented in Haryana. The rate of implementation of IEMs in
Haryana is the highest in the country. As of now 202 new large and medium
and 5,000 new small scale units have been set up in the State creating
additional employment for two lakh persons in the industrial sector.
State Government formulated its Industrial Policy in November 1999 and
emphasis was laid on the creation of quality infrastructure and simplification
of rules and regulations besides various incentives and concessions. About
7,000 developed industrial plots have been allotted to the entrepreneurs by
HSIDC and HUDA. This will catalyse an investment of Rs 10,000 crore and
generate employment for 2 lakh persons. The export from Haryana is worth
Rs 12,000 crore during the year 2003-2004. Foreign Direct Investment of
Rs 3,132 crore has been catalysed during this period.
The expansion programme of Ch. Devi Lal Industrial Model Township,
Manesar (Gurgaon) is in full swing. special Economic Zone providing all
facilities to the exporting units is being set up at Garhi Harsaru, District
Gurgaon. About 3,000 acres of land is being acquired for this project. First
phase of growth Centre at Bawal (Rewari) have been implemented and
developed work alongwith allotment of land is under process for the second
phase. The second growth Centre at Saha (Ambala) has also been developed
and the allotment of land is in progress. The State Government through
Haryana State Industrial Development Corporation is developing new Industrial
Estates at Ambala, Kamal, Panipat, Kundli, Rai, Barhi, Gurgaon and
Bahadurgarh, development work is in progress. Besides four Food Parks at
Narwana ijind), Saha (Ambala), Rai (Sonipat) and Dabwali (Sirsa) are being
set up by the State Government for the promotion of Agro based Food
Processing II'Idustry.
Maruti Udyog, Hero Honda, Honda Motors and many other prestigious
units have undergone their massive expansion programme. For undertaking
Phase-Ill expansion programme, the State Government has allotted 500 acre

States and Union Territories

801

lan~ to ~aru.ti Udyog Limited at Manesar. The capacity of Panipat' Oil

Refmery is bemg doubled besides setting up a Petrochemical complex with
investment of Rs 10,000 crore.

IRRIGATION
Haryana is a beneficiary of the multi purpose project in Sutlcj and Beas
sharing benefits with Punjab and Rajasthan. Major irrigation projects are
western Yamuna Canal, Bhakra Canal and Gurgaon Canal Systl\m. Haryana
hilS raised water from lower levels to higher and drier slopes. It is a new
endeavour that gave practical shape to lift-irrigation for the first time in India.
The Jui, Siwani, Loharu and Jawahar Lal Nehru Lift irrigation schemes
have helped to carry irrigation water against griwity flow to arid areas.
Sprinkler and drip irrigation have been introduced in the highly undulating
and sandy tracks of Haryana.
Construction work of Hathni Kund barrage at a cost of Rs 220 crore have
been completed. The states of Haryana, Uttar Pradesh and Delhi would get
additional water for irrigation purposes from the barrage.
POWER
I Llryana became the first State in the country to achi(,vl~ tOO per cent rural
I']t'drification in 1970. Starting with 20,000 tubewclls in 1966 there were 3.84
t.,kh tube wells in March 2004. Tht' average power availability during 2003(ll was 556 lakh units a day. The numbl'r of consumers in 2004 was 37.4 lakh.
The installed generation capacity as on 31 March 2004 as 3,404 MW.

TRANSPORT
Roads
In Haryana all villages stand connected with metalled roads. The length of
roads in the State is 31,010 km.

Railways
Ambala, Panipat and Jakhal are important railway stiltions. There is a railway
workshop at Jagadhari.
Aviation

There are civil aerodromes at Pinjore, Karnal, Hisar, Bhiwani and Narnaul.

TOURIST CENTRES
Haryana has a network of 46 Tourist Complexes in the State. Some of the
important tourist complexes are: Blue Jay (Samalkha), Skylark (Panipat),
Chakravarty Lake and Oasis (Uchana), Parakeet (Pipli), Kingfisher (Ambala),
Magpie (Faridabad), Dabchick (Hodel), Shama (Gurgaon), Jungle Babbler
(Dharuhere), GauriyYil (Bilhadurgarh), Myna .(~ohtak): BI~IC Bird (Hisar), Red
Bishop (Panchkula) and PinjOft' Gardens (PinJore). Sura,kund and Badkhal
Lakt' near Delhi, Sultanpur bird sancturary (Sultanpur, Gurgaon) and Damdama

802

India 2005

in Gurgaon and fascinating pocket of pines at Morni Hills are other attractions
of tourist interest. The Surajkund Crafts Mela of International fame is held
t'very year in the month of I~ebruary.

GOVERNMENT

Chief Milli~ter

Babu ParnHlIlad

Chief Secretary

A.N. Mathur

O.P. Chillltillil

Chief Justice

Justice Binod Kum<n Roy

Siltbir Sinp;h Kildian

JUrlsdictioJl (If

Punj.lb and Haryana

High Court

High Court

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Areil (sq kill)

Ambal.l

Population

Headquilrters

1,574

10,13,660

AlIlbala

BhlWillll

4,778

14,24,554

Bhlwani

hUld.lbad

2,151

21,Y3,27(,

Faridabad

F.ltl'iMbad

2,520

1'I,06.}58

FatehabilCl

Cllrgaon

2,766

16,57,669

Gurgilon

Hissof

3,91'13

15,36,417

Hissar

Jhiljjilr

],834

8,87,392

Jhajjaf

lind

2,702

11,H9,725

K.llthill

2,317

9,45,631

Kaithal

Kamal

2,53H

12,74,H43

Karndl

KII ru kslll'tfa

1,530

8,28,120

Kuntkshetra

Millll'lldergarh

1,85<)

8,12,022

Narnilul

898

4,69,210

Pilllchkula

Pilllip.lt

1,268

9,67,338

Panipat

Rewari

1,582

7,64,727

Rewari

Rohtilk

1,745

9,40,036

Rohtak

Sirsa

4,277

11,11,012

Sirsa

Sonipat

2,122

12,78,830

Sonipat

Yil III ulla Nagar

1,768

9,82,369

Pilnchkulil

Jind

Yamuna Nagar

States and Union Territories

803

HIMACHAL PRADESH
Area

55,673 sq km

Popu/atio/l

: 110,77,2411 (2001)

Capital

Shimla

Principal Lilnguages

: Hindi & Pahari

HISTORY AND GEOGRAPHY

Himachal Pradesh is the land of legends and beauty. In Puranic chronicles
Himachal has been referred to as the abode of Yakshas, Gandharvas and
Kinnars. In prehistoric times, it was inhabited by Kolls, Kirats and Nagas.
Later the Indo-Tibetans from the north, Indo-Aryans from the Indus valley
and Khasas from Central Asia, migrated to this land of eternal snows and
tranquil solitude. 'Mahabharata' and 'Kumar Sambhava' held this land in high
esteem where Kunindas and Audumbaras established multi-tribal Kingdoms.
During the medieval period, when there were invasions from the north-west,
ruling clans of Rajputana and adjoining areas migrated to the hills and
established their fiefdoms. TheS{' clans were primarily responsible in civilizing
the local people besides patronising Pahari art and monumental architecture
which has no other parallel in the annals of Indian art.
The north-eastern part of the State is decorated with snow-covered,
silver-headed mountains, halcyon lakes and green stretches of prairies. The
State is rich in fauna and flora. In the north it is contiguous to Jammu and
Kashmir and in the south-east adjoins the hilly areas of Uttar Pradesh. In
the south and on the western side, the territory is bordered by Haryana and
Punjab respectively, whereas on the east it borders Tibet.
The State came into being as a union territory in April 1948, as a result
of integration of 30 princely states spread over 27,000 sq km. In 1954 when
another 'C' class State of Bilaspur merged with Himachal Pradesh, its area
increased to 28,241 sq km. The position remained unchanged till 1966 when
on reorganistion of the states the hilly areas of Punjab were merged with the
state increasing its size to 55,673 sq km. Proportionately, the population also
increased from 1.4 million to 2.8 million, now standing at 60,77,248 according
to census 2001.

AGRICULTURE
Agriculture being the main occupation of the people of Himachal Pradesh
has an important role in the economy of the State. It provides direct
employment to about 71 per cent of the main working popultion. Income from
the agriculture and allied sector accounts for nearly 22.5 per cent of the total
State Domestic Product. Out of the total geographical area of 55.673 lakh
hectares, the area of operational holding is about 9.99 lakh hectares owned
by 8.63 lakh farmers. The marginal and small farmers constituted 84.5 per
cent of the total land holdings. The cultivated area in the State is only 10.4
per cent. About 80 per cent of the area is rain-fed. The food-grains production
is likely to touch 17.49 lakh MT during 2004-2005.

804

India 2005

Under the diversification approach, major emphasis is being laid on the

production of off-season vegetables, quality vegetable seeds, potato and ginger
besides soyabean, oilseeds and pulses. A project based app;oach has been
""fopted to increase vegetable production. A plan has been chalked out to
bring 50,000 hectare area under vegetable production by 2007. At prescnt,
about 41,500 hectare area is under vegetable production with production level
of 7.85 lakh tonne. Rastriya Krishi Bima Yojna has been introduced in thp
State from Rabi, 1999-2000 season. Loanee and non-loanee farmers have been
covered and initially maize, rice, wheat, barley and potato crops have been
covered and initially maize, rice, wheat, barley and potato crops have been
brought under the purview of the scheme. To educate the farmers about th<'
latest technical know-how, the extensive network in the State has been
energised for achieving accelerated growth in Agriculture, H.R.D. and water
conservation with proper natural resources management have been according
priority.
HORTICULTURE
Nature has endowed Himachal Pradesh with a wide range of agro-climatic
conditions which have helped the farmers to cultivate a large variety of fruits
ranging from temperate to sub-tropical. The main fruits under cultivation art'
apple, pear, peach, plum, apricot nut fruit, citrus fruits mango, litchi, guava
and strawberry, etc. The total area under fruit cultivation, which was only
792 hectare in 1950 has increased to 2.23 lakh hectares now. Similarly, the
fruit production has also increased from 1200 MT in 1950 to 5.60 lakh tonnes
in the year 2003-2004. An amount of Rs 1,968.35 lakh crore has been proposed
for horticulture related programmes in the year 2004-05. The fruit production
for the year 2002-03 has been targetted at 5.61 lakh tonne. Around 4.64 lakh
orchardists art' estimated to be involved in the fruit production programme
and the fruit industry generated a gross domestic income of about Rs BOO
crore annually. Besides fruits, honey generates 4.15 crore, mushroom 17.94
crore, hops 0.60 crore and flowers 0.03 crore. The fruit industry also generates
about 1,400 lakh mandays per year.
For the diversification of horticulture, the introduction of new fruits as
well as the new varieties of different fruit crops have been taken. A project
on apple production improvement with finanaicla assistance from LA.O.
amountin to Rs 90 lakh is also being implemented in the state.
The Technology Mission for the integrated development of horticulture
in the State is being implemented with a total outlay of Rs 80 crore during
the tenth five year plan. This mission is based on the "end of end approach"
taking into account the entire gamut of horticulture development with all
backward and forward linkages in holistic manner.
ROADS
Roads are the lifelines and major means of communication in the predominantly
hill State of Himachal Pradesh. The tremendous potential inherent in various

States and Union Territories

805

fields in Himachal Pradesh could not be exploited for economic growth in

the past due to lack of means of communication. Out of its 55,673 kIn area,
36,700 km is inhabited and its 16,807 inhabited villages are scattered over
slopes of numerous hill ranges and valleys. Realising importance of construction
of roads for connecting production areas with market centres, Himachal
Pradesh Government has decided to connect every panchayat with roads in
the next three years. When the Pradesh came into existence in 1948 there were
288 km of roads, which has gone up to 23,788 km. The State has 8 National
Highways having a total road length of 1,235 km.

HYDRO-POWER GENERATION
Himachal Pradesh has tremendous hydro-potential in its five river basins.
These five major river systems, namely, Chenab, Ravi, Beas, Satluj and
Yamuna, emanate from the Western Himalayas and pass through Himachal
Pradesh. The identified hydro-potential in these rivers is estimated to be
20,376 MW, which is about 25 per cent of the total hydro-potential of the entire
country. Out of this potential only 6,046 MW potential stands harnessed.
In order to expeditially complete the projects under execution the
Himachal Government has made a prospective plan to harness 2,773 MW
under the 10th Plan and 7,755 MW under 11th Plan. As such by the end of
2,012, 10,528 MW of potential is proposed to be added in State, Central and
private Sectors. Nathpa-Jhakri (1500 MW) and Chamera-II (300 MW) have
been commissioned recently. At present seven hydroelectric projects with
aggregate capacity of 321.5 PWD are und~r execution under State Sector by
HPSEB. Three projects, namely, Uhal-III (100 MW), Kashang-I (66 MW) and
Ganvi-II (10 MW) has been entrusted to it. In order to give extra boost the
transmission and distribution side a large number of schemes have been
prepared to strengthen the present transmission systems under Accelerated
Power Development and Reform Programme.

INDUSTRY
Himachal Pradesh has made significant progress in the field of industrialisation
in the past few years. There are 196 large and medium and about 30,839 small
scale industrial units with an investment of about Rs 3,073 crore in the state.
This sector is contributing 14 per cent to the State Domestic Product and the
annual turnover on this account is about Rs 6,000 crore providing employment
to about 1.6346 lakh persons.
With a view to provide umbrella support to existing and new ventures,
the State government has set up a State Level Single Window Clearance and
Monitoring Authority (SLSWCMA) under the Chairmanship of the Chief
Minister to discuss and solve all industry related and inter-department tissues,
monitor and review the progress of units already approved and proposed to
be set up. This Authority is also focusing its attention on the development
of quality infrastructure.

806

India 2005

There has been a perceptible increase in the number of proposals

received for setting up industries in the State. 2140 units with an invesment
of Rs 83,169.46 lakh and employment potential of 48,259 have been registered
in SSI Sector and 273 proposals in the medium and large scale sector with
an investment of Rs 3,80,466.70 lakh and employment potential of 43,371 have
been registered.

INFORMATION TECHNOLOGY
The Government of Himachal Pradesh has developed an IT Vision-20I0 in
collaboration with NASSCOM to make Himachal Pradesh an IT destination.
Under the IT policy, it has been decided to accord the status of Industry to
all IT projects including IT related services and educational institutions. As
such, all the incentives available to Industry under the presently applicable
Industrial Policy will also be made available to the IT units in the State.
The use of IT in governance is aimed at having SMART (Simple, Moral,
Accountable, Responsive and Transparent) government. The State Government
official website at http://himachal.nic.in is a web portal providing citizen
centric services to the citizens and it has got interfaces for getting inputs from
the grassroot level. The State Government is also in the process of creating
a H.P. State Wide Area Network (HIM SWAN), which will also be connected
to internet. In the Phase-J of HIMSWAN, H.P. Secretariat Local Area Network
has been established with a provision to provide LAN connectivity to every
third person. In the Phase-II of HIMSWAN all the district headquarters will
be connected with state headquarter. Software Technology Part and High
Speed Data Connectivity Facility in Shimla has started its activities. All IT
units in the State have been given Income Tax holiday up to 2007.

BIO-TECHNOLOGY
Keeping in view the importance of bio-technology a separate Department of
Bio-technology has been set up and the state's own Biotechnology Policy has
been formulated. The Government proposes to give sales tax holiday to all
Bio-Technical Units in the state up to 2012. Income Tax Holiday for the first
5 years and 30 per cent rebate thereafter and Central Excise Exemption 100
per cent for the first 10 years. First Phase of Project on Diversity of Plant
Genetic Resources, Microbial Resources and Medicinal and Aromatic Plant has
bep.n completed. Rs. 1.28 crore for technology development, education and
training for wasteland development has been sanctioned. Rs 2.85 crore
Biotechnology Park is being established in District Solan, Rs 14.72 crore is
being spent on cultivation, value addition and marketing of medicinal and
aromatic plants for rural upliftment.

IRRIGATION
In Himachal Pradesh net sown area is 5.83 lakh hectares. In 2003-2004, 1,651
habitations including 574 not covered habitations were provided drinking

States and Union Territories

807

water facilities. For better reform in water supply and irrigation sector, the
State Government has undertaken a WASH project with the total cost of
Rs 339 crore for irrigation as well as for drinking water supply schl'mes with
Gesellschaft for Technische Zuoammeuorbeit (GTZ) for which thl;' German
Government has given a grant of Rs 13.26 crore.
FOREST
Himachal Pradesh is one of the premier states of the Himalayan region which
forms catchment of main rivers of Northern India and the disturbances in
the watersheds in this region effect the flow of water and transport of
sediml'nts to the rivers ,md reservoirs down streams. The maintenance of
adequate forest cover in the State is therefore, of great importance.
According to the State Forest Policy, an endeavour is to be made to bring
50 per cent of the geographical area under forest cowr. The total geographical
area of the State is 55,673 sq km. As per forest record, the total forest area
is 37,033 sq km. Out of this, 16,376 sq km Mea is not fit for tree growth
comprising alpine pastures, area under permanent snow, ctc. The cultivable
fl'corded forest area is only 20,675 sq km.
As per the latest report of Forest Survey of India, an areCl of 14,360 sq
km is the actuClI forest cover with above 10 per cent crown density. This is
constituted by 10,429 sq km of dense forests, having a crown density above
40 per cent and 1,931 sq km has been described as scrubs.
EDUCATION
The Pradesh Government is committed to providing quality education to the
children nearer to their homes. Today 14,540 educational institutions including
primary, middle, high, senior secondary schools, Degree colleges and 3
universities and two medical colleges are catering to the needs of tht, students
in every nook and comer of the state. The literacy rate has gone up to 77.13
per cent, which is higher than the national average of 65.68 per cent.

GOVERNMENT
Governor

V.S. Kok,e

ChIef St'crelilrY:

Chief Minister

Virbhadm Singh

/urisdictiol1 of

Speilker

Gangu Rilm MUSilhr

High Court

K.mwar Shilmsher Singh

: Himachal Prildcsh

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Area (sq km)

Population
(2001 Census)

Headquarters

Bilaspur

1,167

3,40,735

Bilaspur

Chamba

6,528

4,60,499

Chamba

Hamirpur

1,118

4,12,009

Hamirpur

B08

India 2005

KanKra

5,739

13,38,536

Dharllmshala

Kinnaur

6,401

83,950

Reckons Peo

Kullll

5,503

3,79,865

13,835

33,224

Mandl

3,950

9,OO,91l7

Mandi

Shimla

5,131

7,21,745

Shimla

Sinn<lllr

2,825

4,58,351

Nahan

Solan

1,936

4,99,380

Solan

Una

1,540

4,47,967

Una

Lahalll & Spiti

Kullu
Keylong

JAMMU AND KASHMIR

Arerl

2,22,236 sq km

Population

1.0(l,69,91l7 2001 Census

Clpitill

Sri nagar (Summer)

Jammu (Winter)

Principii I Lilnguages

Urdu, Dogri, Kashmiri,

Pahari, Punjabi, Ladakhi.
Balti, Gojri and Dadri

HISTORY AND GEOGRAPHY

According to the most popular legend that is also recorded in Rajtarangani
and Nilmat Purana, two most authoritative books, Kashmir was once a large
lake and it was Kashyap Rishi who drained it off the water, making it
beautiful abode. But geologists have their own theory, which says that
geographical changes made way for the outflow of water by subsidence of
the mountain at Khadianayar, Baramulla and thus emerged the Valley of
Kashmir, the paradise on earth. Ashoka ~troduced Buddhism to Kashmir in
the 3rd century B.C. which was later strengthened by Kanishka. Huns got
the control of the valley in the early 6th century. The Valley regained freedom
in 530 AD but soon came under the rule of the Ujjain empire. After decline
of the Vikramaditya dynasty, the valley had its own rulers. There was a
synthesis of Hindu and Buddhist cultures. Lalitaditya (697-738 AD) extended
his rule up to Bengal in the east, Konkan in the south, Turkistan in the
northwest and Tibet in the northeast considered as the most famous Hindu
ruler, Lalitaditya was known for constructing beautiful buildings. Islam came
to Kashmir during 13th and 14th century AD. Zain-ul-Abedin (1420-70) was
the most famous Muslim ruler, who came to Kashmir when the Hindu king
Sinha Dev fled before the Tatar invasion. Later Chaks overran Haider Shah
son of Zain-ul-Abedin. They continued to rule till 1586 when Akbar conquered
Kashmir. In 1752, Kashmir passed on from the feeble control of the Mughal

includes 78,114 sq krns under illegal occupation of Pakistan, 5,180 sq krn illegally handed
over by Pakistan to China a l ld 37,555 sq km under illegal occupation of China. The population
figures excludes population of areas under unlawful occupation of Pakistan and China where
census could not be taken.

States and Union Territories

809

emperor of the time to Ahmed Shah Abdali of Afghanistan. The Valley was
ruled by the Pathans for 67 years.
~ame of Jammu figures in the Mahabharata. Recent finds of Harappan
remams and artfacts of Mauryan, Kushan and Gupta periods at Akhnoor have
added new dimensions to its ancient character. The land of Jammu was
divided into 22 hill principalities. Raja Maldev, one of the Dogra rulers,
conquered many territories to consolidate his kingdom. Raja Ranjit Dev ruled
over Jammu from 1733 to 1782. His successors were weak and thus Maharaja
Ranjit Singh annexed the territory to Punjab. He later handed over Jammu
to Raja Gulab Singh, a scion of the old Dogra ruling family, who had grown
powerful among Ranjit Singh's governors and had annexed almost the whole
Jammu region. The State was governed by Dogra rulers till 1947 when the
Maharaja Hari Singh signed the Instrument of Accession in favour of Indian
Union on 26 October 1947.

Jammu and Kashmir State is situated betw~n 32 15' and 37u-05' north
latitude and 72-35' and 83-20' longitude East. Ce6graphically, the State can
be divided into four zones. First, the mountainous and semi mountainous
plain commonly known as Kandi belt, the sl'cond, hills including Shivalik
ranges, the third mountains of Kashmir Valley and Pir Panchal range and
the fourth is Tibetan tract of Ladakh and Kargil. Geographically and culturally
the state has three district regions - Jammu, Kashmir and Ladakh.

INDUSTRY
Handicrafts, being the traditional industry of the State, has been receiving
priority attention of the Government in view of its large employment base
and expert potential, paper-machie, wood carving, carpets, shawl-making,
embroidery, etc. are among Kashmir exquisite handicrafts. This industry,
particularly the carpets earn substantial foreign exchange. The handicraft
production has reached Rs 8.21 crore in 2003-04, of whcih exports alone
account for Rs 595 crore. The handicrafts sector provided employment to
about 3.40 lakh artisans. The number of industrial units has gone up to 36,570
in 2002. Industrial Estates manned by SIDCO are spread over 23,536 kanals.
Production of Khadi and Village Industries Units has increased to Rs 91.20
crore from Rs 66.39 crore in 1996.
Entrepreneur Development Institute and Inland Container Depot have
been established and Udhyog .Bhawan and Industrial Growth Centre Samba
are being completed this year. During 2003-04, 10 Craft Bazars and 4
International Expos were organised to market Kashmir's exquisite crafts. 35
large/medium industrial units with investment of Rs 100 crore were established.
The Rs 19 crore Export Promotion Industrial Park has been established at
Karthcli, Jammu. A similar Park is being set up at Ompora, Budgam. Jammu
has Urban Haats while similar Haat is being commissioned in Srinagar.
Software Technology park involving Rs 6.50 crore has been commiss~oned at
Ragreth Srinagar, while work on Rs 9.76 crore FoodPark at I<hunmoh 1S under
process of development.

810

India 2005

AGRICULTURE
About 80 per cent population of the State depends on agriculture. Paddy,
wheat and maize are the major crops. Barley, bajra and jowar are cultivated
in some parts. Gram is grown in Ladakh. The foodgrain production has
increased to 15.51 lakh metric tonm$ and fruit production reached all time
high of 12.74 lakh metric tonnes in 2003-04. The area under orchards is 242
lakh hectatres. The State produces fruit worth Rs 2,000 crore annually
including export of walnuts worth Rs 120 crore. Jammu and Kashmir State
has been declared as Agri Export Zone for apple and walnuts. Under the
programme, nearly Rs 100 crore have been made availablp to the State for
building infrastructure requir('d for preservation and processing of fruit. R~
100 Technology Mission for development of horticulturp launched. Market
Intervl'ntion Scheme also lilUncJwd for improving quality fruit for {'xport by
ensuing proper grading.
The horticulture sector generates employment for 25 lakh people directly
or indirectly. for promotion of horticulture sector and strengthening thl'
marketing infrastructure, 19 satellite fruit markets are coming up at .1 cost
of Rs 70 crore.
POWER

Top priotiry has bt'('n accorded to powcr sector with great thrust to tap St,ltc's
vast hydroelectric potential estimated at 20,000 MW so far only 1474 MW
potl'ntial including 475.65 !'v1W in state spctor has becn tapped. Work on 450
MW Baglihar is progressing and is slated to be commissioned bY' December
2005.

New policy announced to promote private invesment in small

hydrol'lt.'ctric projects upto 25 MW. Seven hydel projects with generCiting
capacity of 2798 MW have been given to NHPC for execution. The State's
total rec}uirement of 7314 MWs met by purchasing POW!'I" from national grid.
Rs 684 crore earmarked tor power sector in 2004-05, out of which Rs 403 cron'
is for generation.

EDUCATION
State's literacy rate is 54.46 per cent as per 2001 census with rural literacy
of 48.22 per cent and urban 72.17 per cent. Male literacy is estimated at 67.75
per cent and female at 41.82 per cent. There are five Universities and 41
Colleges including 8 in private sector with enrollment increasing from 42,097
in 2002 to 60,386 in 2004. 138 higher secondary schools, 168 high schools, 1030
middle schools and 2,560 primary schools were opened during 2003-04.

HEALTH
The State has 3,340 health institutions with 4,788 doctors and 11,351 bed
strength. It has 1: 2103 doctors/population ratio.

States and Union Territories

811

TRANSPORT

Roads
The road length maintained by PWD in the State has reached to 15,012 km.
As many as 84 road projects are under execution. Of 607 road schemes taken
up under NABARD, 220 have been completed during 2003-04 and 113 likely
to be completed this year, 34 schemes taken up under CRF and 67 schemes
under PMGSY. Kashmir's first fly-over at Srinagar was commissioned a year
ago.
Railways

At present, rail link extends up to Jammu only. Work on Janunu-Udhampur

railway tine has been compleh'd and slated for inauguration. Work for
extension of railway line to Srinagilr and Barmulla has been taken up.
Udhampur-Katra and Qazigund-l3aramulla Rail link project has been taken
up as national project which likely to be completed by 2007.

A \'iation
Srinagaf, Jammu and Ll'h are major airports connecting Jammu and Kashmir
with the rest of the country. The Sl'inagar airport has been upgraded to
international level. Sinlilar proposal is there for Jammu airport abo
TOURISM

Kashmir Villley is described as the paradise on l'arth. Chashmashahi springs,

Shalimar Bagh, Dal Lake, Dachigam, Gulmarg, Pahalgam, Sonamarg and
Amarnath shrine in the Valley, Vaislmodevi shrine and Patnitop near Jammu
and Buddhist monasteries in Ladakh are important tourist destinations. Ladakh
festival on 15 September and Sindhu Darshan in June are popular events. In
2003, more than 2 lakh tourists including forei~;ners visited Kashmir Valley and
in 2Q04 by 15 August, Kashmir tourist traffic touched 2.25 lakh and it may cross
3 lakh by December 2004. The number of pilgrims visiting Amarnath shrine went
up to r~cord 3 lakh in 2004, Mata Vaishnodevi Shrine pilgrims traffic touched
37.50 lakh till 15 August 2004.
FESTIVALS

On the tenth day of the bright fortnight Assuj is celebrated as the day of
victory of Rama over Rawana. Shivratri festival is also celebrated in Jammu
,md Kashmir. Four Muslim festivals celebrated in the State are Jd-1I1-Fitr, Jdul-Zuha, Id-MiJad-un-Nabi ilnd Meraj Alam. Muharram is also observed. The
Hemis Gumpa festival of Ladakh is internationally known which takes place
in the month of June. A special feature of the Hemis festival is its mask dance.
In Spituk monastry in Leh, enor!llUUS statues of Goddess Kali are exhibited
once in the year on the occasion of the annual festival which falls in January.
Other festivals celebrated are l-ohri marking a climax of winter. Sinh Sallkranti
observed in Rhmban and adjoining villages. Me/a Pat observed in Bhadarwah
in the month of August.

India 2005

812

GOVERNMENT
Cllief Secretary

: 5.5. Bleoria

Ch,ef Minister . Mufti Muhammad Sayeed

Chief justice

: S.N. Jha

Speak,"

Jurisdiction of

: Jammu, Kashmir and

Ladakh

Govenwr

: Lt.Gen. (Retd.) S.K. Sinha

. Tara Chand

High Court

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No. District

Area (sq km)

(Estimated)"

Population

Heildquarters

1.

Anantnilg

3,984

11,70,013

l3adgam

1,371

6,32,:n8

:I.

BilfilIII ulla

4,588

11,66,772

4.

Dodil

11,691

6,9(},474

S.

Jammu

3,097

15,71,911

h.

K.ugil

14,036

l.15,227

Kargil

7.

Kitthllit

2,651

5,44,206

Kathucl

II.

Kupwara

2,379

6,40,013

KlIpwarit

y.

Leh

82,655

1,]7,637

Leh

10.

Pulwama

1.3911

6,48,762

Pulwama

11.

Poonch

1,674

3,71,561

Poonch

12.

Rajouri

2,630

4,78,595

Ra)ouri

13.

Srinilgitr

2,228

11,83,493

Srinitgilr

14

Udhiunpur

4,550

7,38.965

Anantnag
Bddgam
Baramullit
Doda
Jammu

Udhampur

Includes 37,555 sq km under illegal occupation of China .

JHARKHAND
Areil

79,714 sq km

Population

2,69 ,lJ9 ,428

Capital

Ranch;

['rillcipal Language

Hindi

HISTORY AND GEOGRAPHY

Jharkhand which came into being on 15 November 2000 as the 28th State of
the Union is the homeland of the tribals for which they had been dreaming
for centuries. According to legend, Raja Jai Singh Deo of Orissa had declared
himself the ruler of Jharkhand in the 13th century. It largely comprises forest
tracks of Chhotanagpur plateau and Santhal Pargana and has distinct cultural

States and Union Territories

813

traditions. In post-Independence era, the Jharkhand Mukti Morcha started a

regular agitation which impelled th{' government to establish the Jharkhand
Area Autonomous Council in 1995 and finally a full-fledged State.
Jharkhand is bounded by West Bengal in the east, Uttar Pradesh and
Chhattisgarh in the west, Bihar in the north and Orissa in the south.
AGRICULTURE
The State has an area of 79,714 sq km of which 18,423 sq km is forestland.
Agriculture and allied activities are the major source of Jharkhand's economy.
The total cultivable land is only 38 lakh hectares.
IRRIGATION AND POWER
Damodar, Maurakshi, Barakar, North Koyel, South Koyel, Sankh, Subarnarekha,
Kharkai, and Ajay are major water resources in the State. The net irrigated
area is 1.57 lakh hectares, which is 8 per cent of the net sown area.
The installed capacity of power in Jharkhand is 2,590 MW. This includes
420 MW (Tenughat Thermal Power Station), 840 MW (Patratu Thermal Power
Station), 130 MW (Sikkidiri Hydel Project) and 1,200 MW (Damodar Valley
Corporation Thermal/Hydel Project). The prospects of capacity addition in
both the thermal and hydel sectors of various power stations is 4,736 MW.
This includes 686 Mw hydel genf:'ration.
INDUSTRY AND MINERALS

Someof Jharkhand's major industries are: Bokaro Steel Plant in the public
sector, Tata Iron and Steel Company (TISCO)in Jamshedpur in the private
sector. Other important industries are Tilta Engint>ering and Locomotiw
Company (TELCO), Timken Indiil Limited (Jamshedpur), Bharat Cooking
Limited (Dhanbad), Khilari Cement Factory (Palamu), Indian Aluminum
(Muri). ACC cement (Chaibsa), Central Coalfields Limited (Ranchi), Usha
Martin, Usha Beltron, Uranium Corporation (1) Limited (Jadugora), Hindustan
Copper Limited (Mussabani), Tin Plate Company of India Limited
(Jamshedpur), Indian Explosive Limited (Cornia), and Hindalco Bauxite
(Lohardaga), etc.
The State is richest in the country in terms of its mineral resources. The
important available minerals are coal, iron ore, lime stone, copper ore, bauxite,
pyrite, china day, kyanite, fine clay, dolomite, graphite, bentonite, soap stone,
quartz sand and silica sand. The nascent state of Jharkhand has the enormous
potential for exploitation of coal, mica and other minerals. particularly in
Singhbhum, Bokaro, Hazaribagh, Ranchi, Koderma and Dhanbad.
TRANSPORT
Roads

The total length of roads in the State is 4,311 km. This inlcudes 1,500 km
national highways and 2,711 km state highways.

814

India 2005

Railways
The state has a well-developed railway system. Ranchi, Bokaro, Dhanbad,
Jamshedpur are some of the major railway stations.

Aviation
Ranchi is connected with Delhi, Patna and Mumbai. Jamshedpur, Bokaro,
Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundi have air strips.

TOURIST CENTRES
There are many scenic attractions in the state, namely, Ichagarh Bird
Sanctuary, Udhava Bird Sanctuary-Sahibganj (Pathara Lake), Chachro Crocodile
Breeding Centre-Koderma (Tilaya Dam), Chandrapura Bird Sanctuary,
Jawaharlal Nehru Zoological Garden (Bokaro), Tenughat Bird Sanctuary,
Dalma Wild Life Sanctuary (Jamshedpur), Tata Steel Zoological Park
(Jamshedpur), Palkote Wild Life Sanctuary (Gumla), Bhagwan Birsa Zoological
Gardens (Ranchi), Birsa Deer Sanctuary (Kalmati Ranchi), BetIa National Park
(Palamau), Ranchi Aquarium (Ranchi) and Hzaribagh National Park, Tatoloi
hot water stream (Dumka) and Saranda Forest.
Apart from the above Jharkhand have some famous temples like,
Jharkhand Dham, Lagnta Baba Temple/Majar, Bindhvashini Temple, Masanjore
Dam, etc.

GOVERNMENT
Governor

: Md. Siple Rizwi

Chief Minister : Arjun Munda

Spt'ilker

: M.P. Singh

Chief SecretRry

Mrs. Lakshmi Singh

Cllief Justice (Acting)

S.]. Mukhopadhyay

Jurisdiction of
High Court

Jharkhand

Names of the districts: Ranchi, Gumla, Lohardaga, Palamau, Garhwa,

Dhanbad, Bokara, Hazaribagh, Chatra, Giridih, Kodarma, East Singhbhum,
~_
West Singhbhum, Dumka, Deoghar, Godda, Pakur and Sahebganj.
EAT~]I > - --~----,-,-,----,:-'
1,91,791 sq km

Population

5,27,33,958

Bangalore

Principii I Lilnguilge

Klmnada

HISTORY AND GEOGRAPHY

Karnataka has a written history of more than 2,000 years. Apart from its
subjection to the rule of the Nandas, Mauryas, and the Shatavahanas,
Karnataka came to have indigenous dynasties like the Kadambas of Banavasi

States and Union Territories

g,15

and the Gangas from the middle of the 4th century AD. Gomateshwara
monolith at Sharavanabelagola was installed by a Ganga minister
Chavundaraya. Th Chalu~as of Bada~(500-735 AD) ruled over a wider
area, from the Narmada to the Kaveri from the days of Pulikeshi II (609-642
AD) who even defeated Harshavardhana of Kanauj. This dynasty created fine
monuments at Badami, Aihole and Pattadakal, both structural and tock-cut.
Aihole has been one of the cradles of temple architecture in the country. The
Rashtrakatas (753-973 AD) of Malkhed who succeeded them levied tribute
on the rulers of ~anauj successively in the so-called 'Ag~_of Il1}.~_ria_l Ka~~uj'.
Kannada literature developed during this period. Outstanding Jain scholars
of India lived in their court. The Cha~~as of Kalyana (973 to 1189 AD) and
their feudatories, the Hoysalas of Haleb-idu-bliiit fme temples, encouraged
literature and fine arts. Noted jurist Vijnaneshwara (work: Mitakshara) lived
at Kalyana. Great religious leader Basaveshwara was a minister at Kalyana.
Vijayanagar empire (1336-1646) fostered indigenous traditions and
encouraged arts, religion and literature in Sanskrit, Kannada, Telugu and
Tamil. Overseas trade flourished. The Bahamani Sultans (Capital: Gulbarga,
later Bidar) and the Bijapur Adilshahis raised fine Indo-Saracenic buildings
and encouraged Urdu and Persian literature. Advent of the Portuguese
resulted in the introduction of new crops (tobacco, maize, chillies, groundnut,
potato, etc.). After the fall of the Peshwa (1818) and Tipu (1799), Karnataka
came under the British. Christian missionaries introduced English education
and printing during the 19th century. Revolution in transport,
communication and industries was evidenced. The urban middle-class emerged.
Mysore dynasty helped industrialisation and cultural growth. Freedom
Movement was followed by the movement for the unification of Karnataka.
After Independence, the new united Mysore State was created in 1956 and
was renamed Karnataka in 1973.
Kamataka lies to the south of Goa and Maharashtra, to the west of
Andhra Pradesh, to the north-west of Tamil Nadu and to the north of Kerala.
It has a sea-coast of nearly 400 ~pOO km with inundations).
AGRICULTURE
Agriculture and allied activities account for nearly 56 per cent of the work
force in Kamataka State.. (Total workers including main and marginaJ2,35,21,533, cultivators-69,36,121 and agriculturallabourers-62,09,153). Out
of the geographical area of 6;9:0,49,836 hectares, (2},08,667 hectares area is
accounted as AGRICULTUAAL HOLDINGS antr'"62,20,798 farm families
operate the same. Net and Gross cultivated area during the year 2000-01 was
1,QiJil,452 hectares and .!Jt,84,398 hectares. Major food crops are paddy,
jowar, ragi, maize, bajra, wheat, pulses, groundnut, sunflower, cotton,
sugarcane and tobacco. Th~e contributes about 5.59 per cent in nation.itl
food grains production.
Kamataka enjoys a prominent position on the hortic~Jt\u:& map of India.
State is blessed with natural resources, favourable agra-climatic conditions
and enterprising farming community which offer scope for an all-round

816

India 2005

development of horticulture. It is the first state to establish a large scale

Bi~technology Centre under public sector to caterTclfueneeds of farmers _of
the state with an objective to produce quality-plant materials and conserve
the genetic diversity of horticulture plants.
IRRIGATION
Karnataka has the basins of the Krishna, Cauvery, Godavari, North Pennar,
South Pennar, Palar and west flowing river basins with a drainage area of
1,90,500 sq km. The average annual yield of the rivers has been estimated
as <,17,325 m.cum. The ultimate irrigation potential of the State from all sources
has been estimated at about 55 lakh hectares consisting of 35 lakh hectares
under major and medium, !2l.akh hectares under minor irrrgation (surface)
projects and 12 lakh hectares under groundwater resources.
_;o>

The Karnataka Electricity Reform Act was enacted in 1999. The Karnataka
Electricity Regulatory Commission (KERC) has been functioning since December
1999 and the erstwhile Karnataka Electricity Board was corpotarised under
the banner KPTCL. The KPTCL was further unbundled into Transmission
Company (KPTCL) and four Distribution companies, namely, BESCOM,
MESCOM, HESCOM AND GESCOM. The four Distribution companies are
catering to about 11 million consumers. The revenue realised from the
different categories of consumers during the year 2002-03, was Rs 5,344 crore.
Because of power shortage, resorting to load shedding in rural areas has
became inevitable. As the Urban consumers cross subsidise the rural consumers
(predominantly IP set consumers), the urban areas were spared from load
shedding.
The total connected load of various categories of consumers is 15,285
MW and the maximum demand of 4,946 MW was met in the month of
February 2003. The total installed generation capacity of the State is 5,567 MW.
This includes 4,696 MW from the generating stations of KPCL (including 350
MW of VVNL) and 871 MW under private sector. Ouring the year 2002"()3
RTPS Seventh unit (210 MW capacity) and Gerusoppa fourth unit (60 MW
capacity) were commissioned by KPCL. Ouring the year 2002"()3 the unrestricted
demand for energy was 35,084 MUs and KPTCL/ESCOMs were able to
supply only 29,333 MUs. During the current year 2003~04 the wlrestricted
requirement of energy is estimated to be 37,235 MUs and likely availability
from all sources is estimated as 29,946 MUs. Thus the State will be
experiencing shortage of power of about 7,300 MUs during the current year
also. The shortage of power during the peak hours will be around 1,500 MW.
In the coming 3 to 4 years it is planned to add about 2,400 MW of additional
generation capacity mainly from the following power projects: (i) Almatti
Hydel Project: 290 MW; (ii) RTPS 8th unit 210 MW; (iii) Sellary Thermal
Power Project 500 MW; and (iv) Bidadi Combined Cycle Project 1,400 MW.
The state has achieved 100 per cent in village electrification. Now the
main thrust is on electrification of hamlets. During the current year 2003-04,
it is targeted to electrify 670 hamlets out of 16,000.

States and Union Territories

817

The transmission and distribution losses including commercial losses

during the year 2002-03 was 31.68 per cent. Every effort is being made to
bring down the same by one per cent during the current year 2003-04. More
emphasis is being given for reduction of commercial losses.
The Government of India has formulated the Accelerated Power
Development Programme (APDRP) which will finance projects relating to
renovation and modernisation/life extension/uprating of old power plants,
upgradation of sub-transmission and distribution network including energy
accounting and metering. Karnataka was the first State to avail assistance
u!'der APRDP. The total cost of the schemes sanctioned by Government of
India under APDRP is Rs 1,311.5 crore. Mysore, Belgaum, Bijapur, Hubli,
Bangalore (South) and Bangalore (North), O&:M Circles and about 84 towns
are being covered. All the works costing Rs 40.5 crore in respect of Bijapur
district have been completed. Works costing Rs 95.18 crore in respect of
Mysore circle is also completed.
INDUSTRY
Karnataka is one among the most preferred destinations for foreign investm~
in India and houses 65 of worlds fortune 500 companies. 2,179 FDI proposals
are approved for Karnataka from August 1991 to July 2003 with an investment
to the tune of US $6.08 billion. The State's share in India's FDI is 8.29 ~r
cent and ra~ fourth in the list of Indian States attracting_ FDI. The total
number of industrial investment proposals (Domestic) approved by the Centre
in the state is 2,144, with an investment of Rs 58,520 crore and the total new
investment proposals cleared by the state till July 2003 are 1,779 with an
investment of Rs 21,549 crore.
The State is home for every sector of Industry such as, Information
Technology, Bio-technology, Electronics, Telecom, Aeroscpace, Processed
Foods, Apparel, Automobiles, Banking and Finance, Mining, Steel, Cement
and much more. The State is having small scale industry base of 2,52,671 units
with an investment of US$ 1,102 million prOViding employment to 15,05,800
people, 1,068 large and medium scale industries with an investment of
US$ 6,813 million have provided employment to 4,46,809 people in the State.
The State contributes 70 per cent of India's coffee and silk, 20 per cent
of Electronic hardware and 35 per cent of software for exports, 12 per cent
of Readymade garments for exports and is major producer of ~pices, flowers,
fruits and vegetables.
It offers quality Rand 0 facilities with world-renowned institutions
doing innovative work at the cutting edge of technology in the field of space
aviation, advanced computing, food, bin-technology and many more.
Kamataka has a progressive industrial policy in place that actively
supports public-private partnership. Sector specific policies, viz., I.T. Policy,

818

India 2005

B.T. Policy, B.P.O. Policy, Tourism Policy, Agro Food Processing Policy and
Export Promotion Policy are in place for focused backing. The State has
simplified Labour Law, Land Reforms Act, and Karnataka Industries
(Facilitation) Act 2002 is under enactment to ease doing business in the State
and wherein deemed approval clause is incorporated. The United Nations
Human Develo ment Re ort-2ooo reco nises the cit as the fourth leading
global hub of techno
. _the world.
MINERALS
Karnataka is endowed with rich mineral deposits. All minerals except
hydrocarbons are available in the state. Important minerals are gold iron ore,
copper,. manganese, chromite, limestone, clay, kaonite, silica sand, moulding
sand, felsite, quartzite and ornamental granites, etc. The State is getting about
Rs 170 crore as royalty on minerals produced in the State. For investigating
new Gold, Diamond, Silver, Plantinum, nickel deposits in the State, 30
reconnaissance permits have been granted over an area of about 25,000 sq
km, to national and multinational companies. The preliminary reports an'
encouraging.
INFORMATION TECHNOLOGY
Karnataka-the Silicon State is the most favoured destination for IT and other
knowledge based industries. The State has the most investor friendly policy.
Apart from "~'" the millennium IT policy the State Government has
recently announce e-Governance policy. The State has taken major initiatives
in the e-governance area. It has computerised all treasuries. Under B~
programme, 20 million land records that indicate the ownership of seven
million farmers have been computerised.
TRANSPORT

Roads
There are 13 National Highways in Karnataka State. The total length is 3,728
km. Out of 13 National Highways 2 National Highways, viz., NH.4 and NH.7
are handed over to National Highways Authority of India, New Delhi for
making improvements under Golden Quadrilateral and North-South corridor
respectively. The remaining 3,008 km comprising of 11 National Highways
are improved/maintained by Government of India.

Railways
Rail network in Karnataka is 3,100 km which includes broad gauge (2,450
km), metre gauge (350 km). Nearly 300 km is under conversion.

Avidtion
Bangalore, Belgaum, Mangalore and Hubli are the main airports. Direct flight
facilities to major cities of India are available from Bangalore.

States and Union Territories

819

Ports
New Mangalore port and Karwar port are the main all-weather seaports in
Karnataka which mainly handle cargo vessels. Special facilities for export of
Kudremukh iron ore and to handle crude, coal, LPG, etc., were developed
at Ne~ Man.g.a~ore port. A:lso dry cargo handling facilities and liquid cargo
handlmg facilities along With storage facility are available at Karwar port. A
naval base of the Indian navy is coming up under seabird project at south
of Karwar.
TOURIST CENTRES
Karnataka has numerous Tourist attractions. The former princely capital
Mysore with the Brindavan Gardens and Srirangapattana nearby,
Sharavanabelgola where the famous monolithic statue of Gomateshwara (57
it high), Belur, Halebid and Somnathpura with the famous Hoysala monuments;
Badami, Aihole and Pattadkal for the 1,300 year old rock-cut and structural
temples; Hampi, the famous open air museum (ancient Vijayanagar); Gulbarga,
Bidar and Bijapur, renowned for their Indo-saracenic monuments; Dakshina
Kannada, Udupi and Uttara Karmada Districts for beautiful beaches; Mangalorc
and Karwar for ports; Chitradurga, Bidar, Basavakalyan and Gulbarga with
attractive forts; Bandipur National Park, Bannerghatta National Park are the
play ground of Wild Life; Ranganthittu, Kokkre Bellur, Mandagadde, Gudavi,
Attiveri are the famous bird sancturaries; Jog, Sathodi, Shivanasamudra,
Mogod, Gokak, Abbey, Unchalli. Irupu, Hebbe, Kalhatti are the mesmerising
Falls; Madikeri, Kernmannugundi, B.R. Hills, Nandi Hills, Kudremukh,
Kodachadri are the Picturesque Hill Stations. Dussehra, Hampi, Chaluk):;a,
Kadamba, Hoysala, Kodagu, Karaga festivals, are depicting art, cutlure,folk
of Karnataka. Kabini River Lodge, K. Gudi, Cauveri Fishing Camp, D handeli
Wilderness Camp, Devbagh are the unique Eco-Tourism projects of Karnataka.
Gokarna, Udupi, Dharmashala, Melukote, Gangappura, Saundatti, KoHur,
Sringeri, Horanadu, Kalasa, Kukke Subramanya, Yediyur, Koodalasangama,
Ulvi, Nanjangud are famous pilgrimage centres. Tourism Department has
identified 215 tourist spots in the State. The capital city of Bangalore is also
a tourist attraction with its famous huge granite structure Vidhana Soudha
and the beautiful Cubbon Park and Lalbhag. H~mpi ~!illadakall}ave been
declared as World Heritage sites.

GOVERNMENT
Governor

T.N. Chaturvedi

C/ue{ Secretltry

KK Mishra

Chief Minister

Dharam Sin~h

Chief JustiCt'

N.K. 5<.ldhi

Speltker

Krishna

Jurisdiction of
High Court

Karnataka State

India 200')

820

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

Population

Headquarters

S.No.

District

Area (sq km)

].

Bagalkot

6,594

16,52,232

Bagalkot

2.

Bangalon'

2,190

65,23,110

Bangalore

3.

Bangalore Rural

5,815

18,77,416

Bangalore

4.

Belgaum

13,415

42,07,264

Belgaum

5.

Bellary

8,419

20,25,242

Bellary

h.

Bidar

5,448

15,01,374

Bidar

7.

Bijapur

10,475

18,08,863

Bijapur

8.

Chama raja nagar

5,685

9,64,275

9.

Chikmagalur

7,201

11,39,104

Chikmagalur

10.

Chitradurga

8,388

15,10,227

Chitradurga

11.

Dakshina Kannada

4,843

18,96,403

Mangalore

12.

Davanagere

6,018

17,89,693

Davanagere

13.

Dharwad

4,230

16,03,794

Dharwad

14.

Gadag

4,657

9,71,955

15.

Gulbarga

16,224

31,24,858

Chamarajanagar

Gadag
Gulbarga

16.

Hassan

6,814

17,,21,319

Hassan

17.

Haveri

4,851

14,37,860

Haveri

Ill.

Kodagu

4,102

5,45,322

I,}.

Kolar

8,223

25,23,406

Kolar

20.

Koppal

8,458

11,93,496

Koppal

21.

Mandya

4,961

17,61,718

Mandya

22.

Mysore

6,269

26,24,911

Mysore

23.

Raichur

5,559

16,48,212

Raichur

24.

Shimoga

8,465

16,39,595

Shimoga

25.

Tumkur

10,598

25,79,516

Tumkur

26.

Udupi

3,598

11,09,494

Udupi

10,291

13,53,299

Karwar

27.

.-

.._____--

Uttara Kannada
."

Madikere

-... Z:/---"--_"~~-.___.--.____--.---------

KERALA
sq

Area

38,863

Capital

Thiruvananthapuram

kID

Popullition

31,838,619

Prlndpal LIInguage

Malayalam

"

"

States and Union Territories

821

HISTORY AND GEOGRAPHY

Kerala is in the extreme south-west of the Indian subcontinent. When the
independent ~dia amalgamated small states together Travancore and Cochin
states were Ultegrated ~o form Travancore-Cochin state on 1 July 1949.
Howeve~, ~alabar remamed under the Madras province. Under the State's
re-orgamsatton Act-1956, Travancore-Cochin state and Malabar were united
to from Kerala State on 1 November 1956.
Kerala's culture has been an integral part of the mainstream of lndian
culture. In between the high western ghats on the east and the Arabian sea
on the west, the width of the state varies from 35 km to 120 km. According
to the geographical features, the state can be divided into hills, valleys,
midland plains and costal belt. Kerala is rich in rivers and backwaters. 44
rivers (41 west flowing and 3 east flowing) cut across Kerala with their
innumerable tributaries and benches. The backwaters form an attractive and
economically valuable feature of Kerala.
AGRlCULTURE

A unique feature of the state is the predominance of cash crops. About 50

per cent of the population depends on agriculture. Kerala is a major producer
of coconut, rubber, pepper, cardamom, ginger, cocoa, cashew, arecanut, coffee
and tea. Tree spices like nutmeg, cinnamon, cloves, etc., are also cultivated.
Rice and tapioca are important food crops. Coconut is the most important
cash crop of Kerala. Different varieties of plantain, banana, pineapple, mango
and jackfruit are major fruit crops. The state had a gross cropped area of
3,10,521 lakh hectares under paddy cultivation during 2002-03.
The growth of Agricultural income decreased during 2002-03. Rainfall
was 2,288 mm during 2003 against a normal of 2,742 mm. The net cropped
area has marginally increased from 29.92 lakh ha to 30.28 lakh ha. Rice, the
principal food crop of Kerala, has been subject to persistent pressure for
replacement by more remunerative crops during the last two decades.
Coconut is the main stay of Kerala's rural economy in view of its
multifarious contribution to income and employment. With coverage of nearly
nine lakh ha, coconut occupies 41 per cent of the cropped area and provides
livelihood for over 3.5 million families in Kerala. The average productivity
has slightly declined in 2002-03 by 2.5 per cent to 5.895 per hectare.
'
Pepper is one of the major export oriented commodies in which the state
has certain inherent and established strengths over other producing regions.
The state continues to enjoy a near monopoly in area and production of
pepper, accounting to 95 per cent in the country. Productivity of the cashew
crops reached 731 kg per hectare during 2002-03.
Among the plantation crops, rubber is the dominant ",rop. The state
accounts for 84 per cent of the area under rubber ~ the Cowltry. The coverage
under the crop in 2002-03 was 4.76 lakh ha higher by 1008 ha. over the

Indiil 2005

822

previous year. The production of natural rubber in Kerala (l.lring the year
was 5.95 lakh tonnes. The increase in production registered during the year
WilS 2.5 per cent over the previous year.
India is the sixth largest producer of coffee in the world with a share
of 4.9 per cent. According to the crop estimates for 2002-03, the area under

coffee in Keralil was 0.841 lakh ha out of 3.47 lakh ha in the country, which
works out to 24 per cent. The share of Kerala in coffee production is 23.40
per cent while its production during the year was only 0.64 lakh MT against
2.75 lakh MT for the country.
Against the total area of 5.11 lakh ha under tea in the country KerClla
accounts for only 037 lakh ha. In respect of production also Kerala could
retain its share of eight per c('nt. Tea plantations owned by big companies
employ a labour force of over 84,000 in the organised sector.
INDUSTRY
Kerala is rich in industrial potentialities and infrastructure facilities such as
hydro-electric power, rich forests, rare minerals and the efficient system of
transport and communications. Traditional industries are hand loom, cashew,
coir and handicrafts, other important industries arE' rubber, tE'<1, ceramics
electric and electronic appliances, telephone cables, transformers, bricks and
tiles, drugs and chemicals, general engineering, plywood splints and veneers,
bl'edi and cigar, soaps, oils, fertilizers and khadi and villagl' industry
products. There are a number of manufacturing units for production of
precision instruments, machine tools, petroleum products, paints, pulp paper,
newsprint, glass and non-ferrous metals. Principal export products arl' cashew
nut, tea, coffee, spices, lemon grass oil, sea foods, rose wood and eoir. The
state has an abundance of important minerals like ilmenite, ruffle, monazite,
zircon, sillimanite, day and quartz sand.

Kerala, which has been traditionally backward in the field of industrial

development, is taking serious efforts to identify new opportunities and to
equip it to meet the emerging challenges. The state policy intended towards
enhancement of investment especially in the industrial sector with the
objl'ctiv(' of creating more income and employment.
With the financial support of Kerala State Industrial Development
Corporation (KSIDC), 52 industrial units involving a total investment of
Rs 799 crore on large and medium scale industries were assisted in 2003.
KSIDC signed MOOs for establishing 37 projects with private sector firms
at a total investment of Rs 6,959 crore. The Global Investor Meet held in
January 2003, has attracted a large number of investors from around the globe.
The GIM has been instrumental in bringing for consideration, investments
to the tune of Rs 26,000 crore. MOOs have been entered into for 96 projects
worth Rs 11,15,945 crore.
Techno park was established for the development of Electronics and
Information Technology in the state. Currently 55 companies operating at the

States and Union Territories

823

campus provided direct employment to around 4,500 professionals. A total

investment of Rs 194.06 crore was made by the companies in the park (foreign
investment Rs 96.55 crore, NRI Rs 59.63 crore imd domestic Rs 30.88 crore).
The total turn over of these companies comes to Rs 208.20 crore.
IRRIGATION
The Irrigation system in Kerala is serviced through major, medium and minor
irrigation as well as ground water and command area development
programmes. Major irrigation projects are Malampuzha, Chalakkudy, Pet'chi,
Pamba, Periyar, Chittoorpuzha, Kuttiyadi, Neyyar and Chimmini. Th(' medium
projects are Pothudy, Gayathri, Valayar, Vazhani, Mangillam and Cheerakuzhi.
Construction works of six major irrigation projects Pi\zhassi, Muvattupuzha,
ldamalayar, Karapparil, Kuriarkutty, Chahar and Kanjirappuzha arc in
progrlss.
During the year und('r revit'w (2002-0::\) the D('partment has invested
Rs 14.43 crore for implementing surface water minor irrigation schemes. The
World Bank supported Kerala Rural Water Supply and Sanitation Project
(Jalanidhi) is being implemented in four districts Kozhikode, Palakkad,
Malappuram imd Thrissur by Kerala Rural Water Supply and Sanitation
Agency (KRWSA) through village panchayats.
POWER
The growth of Power Systpm in Kerala during last few decades has b('en
remarkable. During the l'arly stages of development. focus was on tapping
hydro?ower potential in the state, Hydropower is H'npwable, non-polluting
and economic. From ,lit installed capacity of 38MW in 1951, power system
in Kerala touched 2,608 MW in 2003 with a generation potential of 11,521
MU. The lions's-share of energy requirement of th{' state was being meet,
till recent past, by gpneration from the 20 hydel power plants of the Kerala
State Electricity Board,
KSEB had established two dil'sel power plants one at Bramapuram near
Kochl (106.6MW) and the othl~r at Kozhikode (128 MW). The Government
permitted establishment of Naphta based thermal power plants ~t Kayamkulam
by NTPC (360MW), at Kochi by BKPL (157 MW) and at Kasargodc by M/
s KPCL (20 MW). The state was also for~ed to purchase more power from
the Central Generating Stations. The state availed maximum c{'ntral share by
import. During the year state import waS 7,330.8 MU.
Under micro-hydel programme, implementation of Micro Hydel Projects
on behalf of two District Panchayats, Kammadi in Kasargode district and
Chakkarakundu in Kozhikodl' di~trict, have been undertaken by ANERT.
UNlDO has set up a Rl'gional Centre on small H~dropower. at Ene~gy
Management Centre. Tht' centn' has initiated. pre~aratJOn of Detatled Project
Report (OPR) for ten small Hydro Power Pro)ect~ m ,Kcrala. UNI.OO ~as a~
agreed to set up one 30 KW Micro Hydel StatIon In an off gnd Village In
Kerala.

824

India 2Q05

Strengthening the infrastructure to match the generation capacity is

given prime importance in the plan programmes of KSEB. During the year
2002-03 twenty nine 110 KV, ten 66 KV, eighty three 33 KV, four 220 KV
substations were commissioned. As on 31 March 2003 there were 69,47,803
consumers served by KSEB.
TRANSPORT
Roads

Kerala is the maiden state in the country having cent per cent road axis to
its remote villages. The total length of roads in the state is 138196.471 km
of which 21467.492 km comes under PWD and 1523.954 km under National
Highways and 95515.888 km under panchayats.
Railway

The state has a total railway route of 1,148 km and covers 13 railway routes.
It has 1,053.86 km of broad gauge lines and 94.14 km of meter gauge lmes.
The work of gauge conversion between Kollam and Punalur is also in
progress.
Aviation

There are three airports, viz., Thiruvananthapuram, Koehi (Nedumbassery)

and Kozhikode of which the first two are international airports.
Ports
Coehin port is the only major port in Kerala. There are three intermediate
(Neendakara. Alappuzha and Beypore) and ten minor ports (Vizhinjam,
Valiathura, Thankasseri, Munambam, Ponnani, Vadakara, Thalasseri, Kannur,
Azhikkal, Kasargode).
FESTIVALS

Kerala is the home of many colourful festivals. Most of them have a religious
fervour inspired by Hindu mythology. Onam is the most typical of Kerala
festivals which coincides with the harvest season. It is now celebrated on
astronomical New Year Day. Navarathri is celebrated as Saraswathi Pooja
in Kerala. Maha Shivarathri is celebrated on the banks of Periyar river as
a spectacular festival which is compared to Kumbhamela. The 41 days festival,
which coincides with Makaravilakku in ~~barimala Ayyappan temple, attracts
lakhs of people from India and abroad. The Vallamkali or boat race is typical
of Kerala. All the boat festivals have a religious origin except Nehru Trophy
Boat race conducted in the Punnamada Lake. Vadakkumnatha temple at
Thrissur celebrates Pooram festivals in April every year with an impressive
procession of caparisoned elephants and display of unparalleled pyrotechnics.
Main Christian festivals are Christmas and Easter. Maramon convention held
every year on the Pumba riverbed is the biggest gathering of Christians in
Asia. The Muslims celebrate Milade Shareef, Ramzan fasting, Id ul Fitt and
Bakrid.

States and Union Territories

825

TOURISM
Kerala has emerged as the most acclaimed tourist destination in the country.
Beaches, warm weather, back waters, hill stations, water falls, wild life,
Ayurveda, year~round festivals and the diverse flora and fauna make Kerala
a unique destination for tourists.
While the international tourist inflow to India in the year 2002 recorded
a decline of 6.92 per cent, Kerala witnessed a considerable growth of 11.37
per cent, including a 6.27 per cent increase in domestic arrivals. In 2003 there
has been a further spurt.
The Department of Tourism, Kerala Tourism Development Corporation,
District Tourism Promotion Council, Bekal Tourism Development Corporation,
Local Government and Private Sector are the major players in the field. The
thrust areas presently being looked into are for the development of village
tourism, MICE tourism (meeting, incentives, conventions and events/
exhibitions/trade shows), Heritage tourism, Eco tourism and Medical tourism.
In kerala Thenmala is the major project undertaken under Eco-tourism. In
co-ordination with the Porest Department, the infrastructure facilities have
been created at Pakruvi. In the year 2002-03, 65,075 tourists visited Thenmala
eco tourism spot.
The earning from Tourism increased from Rs 535 crore in 2001 to
Rs 705.67 crore in 2002 i.e., an increase of 32 per cent. Due to the thrust
given to tourism by Government in recent times large-scale private investments
have been attracted to the state in the tourism sector. It has been estimated
that the total investment in tourism in the state for the year 2002 was more
than Rs 500 crore.
The travel and tourism industry in Kerala is expected to yield directly
3,78,600 jobs in 2003, or 3 per cent of total employment. A total of 7,88,600
jobs (direct and indirect) or 6.2 per cent of total employment are expected
to be generated across the broader spectrum of the travel and tourism
economy.

EDUCATION
Kerala has achieved a high literacy rate of 90.92 per cent (2001 census) as
against the all India rate of 65.38 per cent. In Kerala, among the districts,
Kottayam has the highest literacy rate of 95.90 per cent. and. ~al~~d has
the lowest literacy of 84.31 per cent. Regional and gender dlsparIties In lIteracy
rates are least in Kerala.
There are 12,271 Schools as against 12331 schools in 2002. Out of which
6,712 are Lower Primary Schools, 2,951 are Upper Primary Schools and 2,608
are High Schools. Besides there are 8 Anglo Indian. High. Schools and 35
Schools for the physically handicapped and 27 KendrIya Vldyalayas and 12
Jawahar Navodaya Schools.

India 2005

826

The infrastructure created under District Primary Education programme,

Sarva Shiksha Abhiyan and involvement of Local Governments hav!;'
contributed to the improved facilities. Financial assistance under Sarva
Shiksha Abhiyan is on 75:25 between Government of India and Government
of Kerala during the Tenth Plan and 50:50 there after. The District Planning
Committees prepare district-wise projects in partnership with the Local
Governments.
Kerala has now seven universities and two deemed universities. During
the past five years, there has been a tremendous increase of technical
educational institutions in Kerala. There are at present 76 engineering colleges
with a sanctioned annual intake of ] 867.3 students. During 2002-03 seven
engineering colleges were started.
The Plan and non-plan expenditure on education increased from
Rs 1,747.34 crore in 1997-98 to Rs 2,550.01 crore in 2002-03. This shows an
increase of 45.9 per cent. During the period the state domestic product
increased by 86.7 per cent. Expenditure on education was 3.9 per cent of SDP
in 1997-98 and it increased to 4.10 per cent in 2000-01. But declined to 3.3
per cent in 2001-02 and again to 3.04 per cent in 2002-03.

GOVERNMENT
(;OV(.lnlor

: R.L. Shatill

OJi!'! ScCTl'tllry: Bahu .ldcob

Chip! Minister: 00mmen Chandy

Speaker

: Therambil Ramakrishnan

Chief Justice

B. Subhashill1 Reddy

Jurisdiction of

Kerala and Lakshadweep

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Area (sq km)

Pnpuldtioll
(2001 Census)

Heildqllartt'rs

Thiruvanallthapuram

2,192

32,34,707

ThinlvillliHlthapuram

Kollam

2,491

25,84,118

Kollam

Pathanilmthitta

2,642

12,31,577

Pilthilllamthittil

Alappuzha

1,414

21,05,349

Alappuzha

Ko!tayam

2,203

19,52,901

KottaYilm

Idllkki

5,019

11,28,605

Painilvu

Ernakulilm

2,407

30,98,378

En,akulam

Thrissur

3,032

29,75,440

Thri!l!lur

Palakkad

4,480

26,17,072

Palakkad

Malilppuram

3,550

36,29,640

Malappuram

Kozhikodc

2,324

28,78,498

Kozhikoor

States and Union Territories

827

W.lyitllad

2,1:12

7,86,627

Killprtt.l

Kannur

2,996

24,12,36S

Kallllur

Kas,lrilgnde

4,992

12,U3,342

MADHYA PRADESH

Cilpltal

3,08,000 sq km

Population

6,03,85,118

Bhopal

Principal LlIIgllifgl'.

Hindi

HISTORY AND GEOGRAPHY

Madhya Padesh is the second largest Sate and geographically it occupies
pivotal position in the country. King Ashoka first of all ruled OWT Ujjain. A
sizeable portion of Central India was part of the Gupta empire (300-500 A,D.).
The Muslims came into Central India in the beginning of 11th century. First
of all, Mahmud of Ghazni came and then Mohammad Gouri who incorporated
some parts of Central India into his ruling territory of Delhi. Central India
was also part of the Mughal empire. Duing thl' period between the beginning
of the influence of Marathas and the death of Madhoji Scindia in 1794.
Marathas Were on the ascendent in Central India but later on the small statl~s
started coming into existence. These small states became the cause of
perpetuation of British power in the country. Queen Ahilyabai Holkar of
Indore, the Gond Maharani Kamalapti and Queen Durgawati, etc., were
women rulers whose names haw left an indelible imprint on indian history
for their outstanding rule. Madhya Pradesh caml' into being on 1 November
1956. It was reorganised on 1 November 2000 to crE'ate a new Chhattisgarh
state. The successive state is bound in north by Uttar Pradesh, east by
Chhattisgarh, south by Maharashtra and west by Guiarat and Rajasthan.
The District Planning Committees for the district level governance havt!
been empowered to plan and execute development works. A system of village
level governance, Gram Swaraj is operative. The Gram Sabhas have been
equipped with extensive executive and financial powers regarding development
matters.

AGRICULTURE
Agriculture is the mainstay of State's economy as 74.73 per cent of the total
poplllati~n lives in rural areas. About 49 per cent area of the sta~e is cultivable.

The net sown area during 2001-2002 was estimated at about 14.9 m. ha. owing
to extremely low rainfall. The foodgrain production was 13 million metric
tonne. The productivity of major crops like wheat, rice, pulses have also
suffered greatly.
INDUSTRY AND MINERALS

Madhya Pradesh has entered the era of high-tech ~ndustrie~ such a~ elC('~ronics,
telecommunications, automobiles, etc. The state

1S

producmg optical fibre for

828

India 2005

telecommunication needs. A large number of automobile industries have been

established at Pithampur near Indore. Prominent industries in the public
sector in the state are Bharat Heavy Electricals Ltd., at Bhopal, Security Paper
Mill at Hoshangabad, Bank Note Press at Dewas, Newsprint Factory at
Nepanagar and Alkaloid Factory at Neemuch. Over 77.5 million metre cloth
in the handloom sector was manufactured in 2002-03. The State produced 50.6
thousand metric tonne newsprint during 2002-03. The cement production
touched 12.88 million metric tonne during the period. An Air Cargo Complex
would come up shortly at Pithampur. The Government of India is setting up
a Special Economic Zone at Indore. Foreign Direct Investment is being
promoted by implementing the comprehensive Economic Development Policy.
Madhya Pradesh is a mineral rich state. It produces 21 types of minerals.
The output of minerals in 2002-2003 remains-dolomite-2.1 million metl"LC
tonne, dimond-73,181 carats, limestone-250.47 million metric tonne, bauxite2.55 million metric tonne and iron ore-92 million metric tonne. The State is
famous for its traditional handicrafts and handloom cloths manufactured in
Chanderi and Maheshwar.

IRRIGATION AND POWER

The net area under irrigation was 5.6 million hectares in the year 2002-2003.
Madhya Pradesh is rich in low-grade coal suitable for power generation and
also has immense potential of hydro-energy. Total installed power generation
capacity in year 2002-2003 was 2900 MW. There are eight hydro-electric power
stations with 747.5 MW installed capacity. A total of 50,349 out of 51,806
villages had been electrified by 2002-2003. Power generation is 14,023.7
m.kwh.
The Government of M.P. has formed a joint venture (Narmada Hydro
Electric Development Corporation) with National Hydro-Electric Power
Corporation, a Government of India undertaking for execution of 1000 MW
Indira Sagar Hydro Electric Project and 520 MW Omkareshwar Hydro-Electric
Power Project.

TRANSPORT
Roads
The total length of roads in the state is 67,600 km. The length of national
highways in the state is 3,700 km while State highways extend to 7,300 km.

Railways
The main rail route linking northern India with southern India passes through
Madhya Pradesh. Main junctions in the State are Bhopal, Bina, Gwalior,
Indore, Itarsi, Jabalpur, Katni, Ratlam and Ujjain. The divisional railways
headquarters are at Bhopal, Ratlam and Jabalpur.

Aviation
There are airports at Bhopal, Gwalior, Indore and Khajuraho.

States and Union Territories

829

FESTIVALS
A number of festivals are celebrated in Madhya Pradesh. An important tribal

festival is Bhagoriya marked by traditional gaiety and enthusiasm. Shivratri

is celebrated in Khajuraho, Bhojpur, Pachmarhi and Ujjain and has its own
local flavour while Ramnavami festival at Chitrakoot and Orchha has a unique
sense of devotion imbued with tradition. Festivals of Orchha, Malwa,
Pachmarhi bring to the fore, repertoire of culture and art of the people. Tansen
Music Festival, Gwalior; Ustad Allauddin Khan Music Festival of Maihar;
Kalidas Samaroh, Ujjain and Festival of Dances at Khajuraho are some of the
well known art festivals of Madhya Pradesh.
TOURIST CENTRES
Perfectly preserved medieval cities, T{'freshing and enchanting wildlife
sanctuaries and some of the holiest and most revered pilgrim centres offer
to the tourist the most fulfilling experience. Tranquil beauty of Pachmarhi,
glittering splendour of marble rocks and roaring sound of Dhuandhar Fall
at Bhedaghat, Kanha National Park, with its unique Barasingha and
Bandhavgarh National Park with its prehistoric caves and wildlife are some
of the major attractions of the state. Gwalior, Mandu, Datia, Chanderi,
Jabalpur, Orchha, Raisen, Sanchi, Vidisha, Udaygiri, Bhimbetika, Indore and
Bhopal are the places wellknown for their historical monuments. Maheshwar,
Omkareshwar, Ujjain, Chitrakoot and Amarkantak are major centres of
pilgrimages. Unique temples of Khajuraho are famous all over the world. The
temples of Orchha, Bhojpur and Udaypur attract large number of tourists as
well as pilgrims. Archaeological treasures are preserved in the museums at
Satna, Sanchi, Vidisha, Gwalior, Indore, Mandsaur, Ujjain, Rc.jgarh, Bhopal,
)abalpur, Rewa and many other places.

GOVERNMENT
Chief Secl'l.'tilry: Aditya Vijay Singh

Governor

Balram Ihakar

Cllief Minister

Babulal Gaur

Chief Justice

Kumar Rajratnam

Ishwar Das Rohani

Jurisdiction of
High Court

Madhya Pradesh

Speilker

AREA, POPULATION AND HEADQUARTERS OF DIST~CTS

No. District

2
1.

Badwanl

2.

8alaghat

3.

Betul

Area (sq km)

Population

Headquilrters

10,81,039

Badwani

9,229

14,45,760

Balaghat

10,043

13,94,421

Set\ll

India 2005

830
4.

Bhind

4,45'1

14,26,951

Bhind

5.

Bhopal

2,772

18,36,784

Bhopal

6.

Chhatarpur

8,687

14,74,633

Chhatarpur

7.

Chhindwara

11,815

18,48,1182

Chhindw,ua

8.

Damoh

7,306

1O,81,Il04

Damoh

9.

Dalia

2,038

6,27,818

10.

Dewas

7,020

13,06,617

Dewas

11.

Ohar

11,153

17,40,577

Ohar

12.

Ointiori

13.

Guna

14.

Gwahor

15

Harda

16.

Hoshangabad

17.

Indore

18.

jabalpur

Ill.

jhabua

20.

Katni

21.

Khandwa (East Nimar)

22.

5,79,312

DAtia

Dindori

11,065

16,65,50)

Guna

5,214

16,29,11111

Gwalior

4,74,174

Barda

H),037

10,85,01l

Hosh<lngabad

3,898

25,85,321

Indore

10,160

21,67,46'1

jabalpur

6,782

13,9(>,677

Jhabua

10,63,689

Katni

10,779

17,08,170

Khandwa

Khargllne (West Nimar)

13,450

15,29,954

Khargollt

23.

Mnndld

13,269

8,93,90.'1

24.

Mdndsaur

9,791

11,83,369

Mandsaur

25.

Morena

11,594

15,87,264

Morena

26.

Narsinghpur

5,133

9,57,399

Narsinghpur

27.

Neemuch

7,25,457

Neemuch

28.

Panna

7,135

8,54,235

Panna

29.

Raisen

8,446

11,20,159

Raisen

30.

Rajgarh

6,154

12,53,246

Rajgarh

31.

Ratlam

4,861

12,14,536

Ratlam

32.

Rewa

6,314

19,72,333

R!wa

33.

Sagar

10,252

20,21,783

Sagar

34.

Satna

7,502

19,68,648

Satna

35.

Sehore

6,578

10,78,769

Sehore

36.

Seoni

8,758

11,65,893

Seoni

37.

Shahdol

14,028

15,72,748

Shahdol

38

Shajapur

6,1%

12,90,230

Shajapur

39.

Sh~opur

5,59,715

Shayopur

Mandla

States and Union Territories

831

40,

Shivpuri

JO,271!

14,40,666

5hivpuri

41,

Sidhi

10,256

18,30,160

Sidhi

42.

TIkamgarh

s.n4R

12,03,533

Tikamgitrh

43,

Ujji\in

h,(J9\

17,09,885

Ujjain

44,

Umaria

45,

Vidisha

2,742

5,15,851

Umaria

12,14,759

Vidisha

MAHARASHTRA
Art'iI

3,U7,713 sq kill

P(lJ'lIiilllOlI

Capitill

MUlllbili

Prillcipill Lilllgll'Wt' : Marathi

Q_67,52,247

HISTORY AND GEOGRAPHY

The first well-known rulers of Maharashtra were the Satavahanas (230 BC
225 AD), who were the founders of Maharashtra, and have left a plethora
of literary, epigraphic, artistic ilnd archilcological evidence. This epoch marks
tremendous development in every field of human endeavour.
Then came the Vakatakas who established a pan-Indian empire. Under
them Maharashtra witnessed an all-sided development in the fields of
learning, arts and religion. Some of the Ajanta Caves and fresco paintings
reached the high-level mark during their rule. After the Vakatakas and after
a brief interlude of the Kalachllfi dynasty, the most important rull>rs were
the Chalukyas followed by the Rashtrakutas and the Yadavas apart from the
Shilaharas on the coast. The Yadavas, with Mamthi as their court language
extended their authOrity over large parts of the Deccan.
While the Bahamani rule brought a degree of cuhesion to the land and
its culture, a uniquely homogeneous evolution of Maharashtra as an entity
became a reality under the able leadership of Shivaji. A new sense of Swaraj
and nationalism was evolved by Shivaji. His noble and glorious power stalled
the Mughal advances in this part of India. The Peshwas established the
Maratha supremacy from the Deccan Plateau to Attock in Punjab.
Maharashtra was in the forefront of the freedom struggle and it was
here that the Indian National Congress was born. A galaxy qf leaders from
Mumbai and other cities in Maharashtra led the Congress movement under
the guidance of Tilak and then Mahatma Gandhi. Maharashtra was the home
of Gandhiji's movement, while Sevi\sram was the capital of nationalistic India
during the Gandhian era.
The administrative evolution of the state of Maharashtra is the outcome
of the linguistic reorganisation of the States of India,. effected on 1 ~ay 19.60.
The State was formed by bringing together all contiguous Marathlspeaking

832

India 2005

areas, which previously belonged to four different administrative hegemoniesthe district between Daman and Goa that formed part of the original British
Bombay Province; five districts of the Nizam's dominion of Hyderabad; eight
districts in the south of the Central Provinces (Madhya Pradesh) and a sizeable
number of petty native-ruled state enclaves lying enclosed within the above
areas, which later merged with adjoining districts. Located in the north centre
of Peninsular India, with the command of the Arabian Sea through its port
of Mumbai, Maharashtra has a remarkable physical homogeneity, enforced
by its underlying geology. The dominant physical trait of the State is its
plateau character. Maharashtra is a plateau of plateaus, its western upturned
rims rising to form the Sahyadri Range parallel to the sea-coast and its slopes
gently descending towards the east and south-east. Satpuda ranges cover
northern part of the State, while Ajanta and Satmala ranges run through
central part of the State. Arabian Sea guards the western boundary of
Maharashtra, while Gujarat and Madhya Pradesh are on the northern side.
Chhattisgarh covers the eastern boundary of the State. Karnataka and Andhra
Pradesh are on its southern side.
AGRICULTURE
About 65 per cent of the total workers in the State depend on agriculture
and allied activities. Net irrigated area in 2002-03 was 29.70 lakh hectares.
Principal crops grown in the State are rice, jowar, bajra, wheat, tur, mung,
urad, gram and other pulses. The State is a major producer of oilseeds.
Groundnut, sunflower, soyabean are major oil seed crops. Important cash
crops are cotton, sugarcane, turmeric and vegetables. The State has an area
of 12.90 lakh hectares under various fruit crops like mango, banana, orange,
grape, cashewnut, etc.
INDUSTRY
The State has been identified as the country's powerhouse and Mumbai, its
capital as the centre point of India's financial and commercial markets.
Industrial sector occupies a prominent position in the economy of Maharashtra.
Food products, breweries, tobacco and related products, cotton textiles, textile
products, paper and paper products, printing and publishing, rubber, plastic,
chemical and chemical products, machinery, electrical machinery, apparatus
and appliances, and transport equipment and parts contribute substantially
to the industrial production in the state. The industrial production
(manufacturing) in the state in 2002-03 was higher by 4.9 per cent than that
of the corresponding period of 2001-2002.
IRRIGATION AND POWER
By the end of June 2003, 32 major, 178 medium and about 2,182 state sector
minor irrigation projects had been completed. Another 21 major and .34
medium irrigation projects are under construction. The gross irrigated area
in 2002-03 was 36.68 lakh hectares.

States and Union Territories

833

Maharashtra had an installed capacity of 12,963 MW in 2002-03. The

Plant Load Factor (PLF) in the State was 71.9 per cent and power generation
was 64,740 million KWH.
TRANSPORT
Roads
Total length of roads in the State in March 2002 was 2.2..C:; lakh km consisting
of 3,710 km of national highways, 33,705 kIn of state highways, 48,192 km
of major district roads, 44,183 km of other district roads, and 95,150 km of
village roads.
Railways
Maharashtra has 5,450 kIn of railway routes of which 78.4 per cent is broad
gauge, 8.1 per cent meter gauge and 13.5 per cent is narrow gauge.
Aviation
Maharashtra has a total of twenty-four Air fields/airports. Of these 17 are
under the control of the State government, four are managed and controlled
by the International Airport Authority/Airport Authority of India and three
by the Ministry of Defence. The Airfields under the control of the State
government have no facilities for the operation of commercial flights at
present.

Ports
Mumbai is the major port. There are two major and 48 notified minor ports
in the State.
TOURIST CENTRES
Some important tourist centres are : Ajanta, Ellora, Elephanta, Kanheri and
Karla caves, Mahabaleshwar, Matheran and Panchgani, Jawhar, Malshejghat,
Amboli, Chikaldara, Panhala Hill stations and religious places at Pandharpur,
Nashik,
Shirdi, Nanded, Audhanagnath, Trimbakeshwar, Tuljapur,
Ganpatipule, Bhimashanker, Harihareshwar, Shegaon, Kolhapur, Jejuri and
Ambajogai.

GOVERNMENT
Govemor

S.M. Krishna

Chief Secretltry : Prem Kumar

Chief Minlster

Vilasrao Oeshmuk

Chief Justice

: D.C. Bhandari

Spea1cer

Babasaheb Kupekar

Jurisdiction of

: Maharashtra and Goa

High Court

834

India 2005
AREA, POPULATION AND HEADQUARTERS OF DISTRICTS
Are,) (,q kill)

Populatioll
(on '00)
provisillll<ll

Hl'<ldquarteTS

17,0:1.1

40,8t1,077

Ahnwdnilg<lr

5,<131

16,29,305

Akol<l

,\111 r,I\',11 I

12.,235

26,06,063

Amriwall

AIII'<llIg,lb<ld

10,106

29,20,548

Aurilng,lbad

J.8lJl)

11,35,113:;

Llh<llldar,\

10,(>92

21,59,841

LlL'cd

MUlllb.li City

157

33,26,1137

Mumbai

[l.1I1mb,11 (Sub.)

He.

85,117,561

LI,) lid riI

'1,680

22,26,328

Buldhdllil

1\,417

20,77,909

Challdrapur

8,061

17,08,993

Dhule

C"drlmoli

14,.l77

':1,(>9,%0

j.llg.101I

1l,757

3(),7<J,936

Jalgaoll

),1111<1

7,715

16,12,357

J<llnil

Kolh.lpur

7,692

35,15,41:1

Kolhapur

L,Itur

7,166

20,78,237

Latur

NagI'm

9,810

40,51,444

Nagpur

N'lllded

10,545

28,68,158

Nilndl.'CI

N.1Shik

15,539

49,87,923

Nashik

OSllIanabad

7,550

14,72,256

Osmanabad

Parbhalli

6,511

14,91,109

Parbhani

15,637

72,24,224

PUlle

Raig,\(1

7,162

22,05,9n

Aligbag

Ratllagiri

8,1%

16,96,482

Ratnagirl

Sangli

8,577

25,81,835

SangH

SalarA

10,475

27,96,906

Satara

Distric\'i

Ahllll'dlhlgoH
.\k"I,1

llh.1I1d.1 r.1
lIeI'd

Lluldh'l1l<l
Ch.1l1dr,lpllr
Dhull'

Pune

Cadchin)li

States and Union Territories

Sindhlldurg

835

5,222

8,61,672

14,886

311,55,383

Solapur

Thi\l\e

9,563

81.28,833

Thane

Wardhll

6,311

12,30,640

Wardha

13,5'14

24,60,482

Yavlltmlll

Nandurbar

5,035

13,09,135

Nilndurbar

Wilshim

5,150

10,19,725

Wilshim

Gandia

5,430

12,00,151

Gondill

Hingoli

4,526

9,86,717

liingoli

Solapur

Y.n-atmal

Oras

MANIPUR
Are"

22,327 sq km

POp"i.'iioJl

23,88,634 (20m Census)

Capitlll

Imph,'l

Prillcip,!' Language

M,mipuri

HISTORY AND GEOGRAPHY

Manipur has a long and glorious history from beginning of the Christian era.
The recorded history of kingship started from 33 AD which marked the
coronation of Pakhangbil. After Pakhangba a series of kings ruled over the
kingdom of Manipur. The independence and sovereignty of Manipur remained
uninterrupted until the Burmese invaded and occupied it for seven years in
the first quarter of the 19th century (1819-25). Then came British Paramountcy
in 1891 and later on it was merged in the Indian Union as part "C" State
on 15 October 1949. This was replaced by a Territorial Council of 30 elected
and 2 nominated members. Later in 1963, a Legislative Assembly of 30 elected
and 3 nominated members was established under the Union Territories Act,
1962. The status of the administrator was raised from Chief Commissioner
to the status of the Lt. Governor with effect from 19 December 1969. Manipur
attained full-fledged statehood on 21 January 1972. With this a Legislative
Assembly consisting of 60 elected members was established.
Geographically the state is divided into two tracts: the hills comprising
of five districts and the plains with four districts. It is bounded by Myanmar
on the east, Nagaland on the north, Assam and Mizoram on the west and
Myanmar and Mizoram on the snuth.

AGRICULTURE
From the level of subsistence agriculture, the State agriculture department
now plans to go ahead with commercialisation and self-sustainability during
the Tenth Plan period. The department focusses on (1) increasing cropping
intensity from the present level of 123.50 per cent to 135 per cent, (2) increasing
presenl level of firm mechanisation, i.e., 0.1 HP fHa. to 0.9 HP fHa.,

836

India 2005

(3) improving the soil health through amelioration of acid soil, (4) minimising
external dependence for supply of seed inputs by strengthening infrastructure
in state farms so that gradually the state can produce its own requirement
of seed inputs, (5) giving better protection to plants from insect pests and
diseases through Integrated Pest Management, (6) strengthening the existing
training infrastructure for better transfer of technology to the farmers,
(7) developing infrastructure for agriculture research and (8) bringing a change
in the cropping scenario in hill areas of the state by introducing high yielding
varieties of crops particularly paddy, oilseeds and pulses for over-all increase
in agricultural production and productivity to meet the demands for foods
by the increaSing human population.

FOREST
Total area under forest cover is 16,926 sq krn of which 5,710 sq krn falls under
dense forest while 11,216 sq km under open forest, which is 75.8 per cent
of the State's geographical area. Siroy village in Ukhrul District, Manipur is
the abode of Shiroy Lily (Ulium macklineae), the paradise flower which is
not found elsewhere in the world. The Dzuko valley is also the only habitat
of the endemic and the rarest species Dzuko Lily (Ulium chitrangade). The
State is also the only horne of the Brow-Antlered Deer (Cervus eldi eldi) locally
known as Sangai surviving in its natural habitat, the Keibul Lamjao, only
floating National Park in the world. The conservation measures taken up by
the State has led to the rise of Sangai Population from as low as 14 in the
year 1975 to 180 in the year 2003.
IRRIGATION
Within a short period of two decades of introduction of major and medium
irrigation schemes in the State, remarkable progress has been achieved
creating annual irrigation potential of 54,100 hectares and supplying 4 MGD
of water for water supply under the major and medium irrigation multipurpose
programme. Currently three major/medium irrigation projects, viz., Khuga
multipurpose project, Thoubal multipurpose project and Dolaithabi barrage
multipurpose project are in good progress. These projects are targeted for
completion during Tenth Plan.
The State Government is also planning for taking up new major/medium
irrigation projects under state plan and with funding by NEC. Chakpi
multipurpose project, Iril multipurpose project and Sekmai multipurpose
project are to be taken up under state plan and Regional Jiri Irrigation project
and Diversion of Chakpi Basin water to Loktak are to be taken up with
funding by NEC. On completion of these new projects, an additional irrigation
potential of about 28,000 ha water supply potential of about 13 MGD and
power potential of about 17 MW will be created.
POWER
The installed capacity was 42,740 and 2,007 villages had been electrified by
March 2003. Power supply position in the state showed a marked improvement

States and Union Territories

837

with the availability of power from the Central Sector Generating Stations,
i.e., Loktak HE Project (NHPC), Kopili HE Project, Khandong HE Project,
Doyang HE Project, Rangnadi HE Project and AGBPP; Kathalguri and AGTPP,
Ramchandranagar (all NEEPCO). A heavy fuel based Power Project (6 x 6
MW) at Leimakhong was commissioned during April 2002.
COMMERCE AND INDUSTRIES
The State Government continues to exert all its efforts as a facilitator for
industrialisation of the State with due emphasis in the prospective and
potential areas. Handloom is the most popular traditional industry prOViding
maximum employment in the State. In view of the importance of the industry,
State Government proposed 212 projects to the Government of India under
Deen Dayal Hatllkargha Protsahan Yojana during the year, 2002-2003. As
against this proposal, the Government of Indian sanctioned 174 projects
amounting to Rs 929.08 lakh as Central share and Rs 176.74 lakh as State
matching share. The same is under process for sanction. Under the workshedcum-housing scheme, 2001-02. The Government of India released Rs 127.25
lakh as first instalment during 2001-02 and State Government disbursed the
same to the beneficiaries during 2002-03. The Government of India further
released Rs. 127.25 lakh as final instalment under the scheme.
With the introduction of Border Trade between India and Myanmar in
1995, the Department of Commerce and Industries of the State Government
has been acting as a liaisoning agent for promotion and development of Border
Trade. The volume of trade on export was Rs 3.66 crore and that of import
was Rs 1.17 crore during 2002-03.
TRANSPORT

Roads
ImphaJ, the capital of Manipur is joined by road (NH-39) with Nagaland on
the north and Myanmar on the east, on the west with Assam by NH-53 and
Mizoram on the south by NH-150.
The State has 7,599 km of roads both metalled and unmetalled. The
length of roads consists of National Highway 967 km, State Highway 675km,
District roads 1,977 km and Village roads 4,947 km.

Aviation
ImphaJ airport is the only airport which is linked with other stations in the
region by Indian Airlines, Jet Airways and Alliance Air.. The }ndian ~irlines
flights connect Imphal with Guwahati and New Delhi .whlle J~t Airways
Flights connect Imphal with Guwahati and Kolkata. Alliance ~Ir connects
Imphal with Aizawal, Silchar also with Kolkata and Guwahah.

Railways
The State is included in the railway map of India with the opening of a rail
head at Jiribam in May 1990. It is 255 km from lmphal. Dimapur, 215 km
from Imphal is the nearest rail-head.

India 2005

838

FESTIVALS
A year in Manipur represents a cycle of festivities. Hardly a month passes
by without a festival. Important festivals of the State are: Dol-jatra, Lai
haraoba, Rasa Leela, Cheiraoba, Ningol Chakouba, Rath-Jatra, ldul Fitre,
lmoinu lratpa, Gaan-Ngai, Lui-Ngai-ni, ldul Zuha, Yaoshang (Holi), Durga
Pujah, Mera Houchongba, Diwali, Kut and Christmas, etc.

TOURIST CENTRES
Blessed with a salubrious climate and landscapes languishing in natural
beauty and scenic splendour, the state extends to the tourists a warm welcome
to visit again and again. Some important tourist centres in the State are: Shree
Govindajee temple, Khwairamband Bazar (Ima Keithel), War cemeteries,
Shaheed Minar, Nupi Lan (Women's War) Memorial Complex, Khonghampat
Orchidarium, INA Memorial (Moirang), Loktak Lake, Keibul Lamjao National
Park, Bishnu Temple at Bishnupur, Sendra, Moreh, Siroy Village, Siroy Hills,
Dzuko Valley, State Museum, Kaina Tourist Home, Khongjom War Memorial
Complex, etc.

GOVERNMENT
Governor

: 5.5. Sidhu

Chief SeCn'tilry : }arnail Singh

Chief Minister ; O. Jbobi Singh

Jurisdiction of ; A permanent bench of the

High Court
Guwllhati High Court, lmphal Bench
started functioning from 14
March 1992.

: T. N. Haokip

Speilker

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.N.
1.

State/District

Area

Population

Headquarters

3,79,214

Senapati

5enapati

3,271

2.

Ukhrul

4,544

1,40,946

Ukhrul

3.

Chandel

3,313

1,22,714

Chandel

4.

Churachandpur

4,570

2,28,707

Churachandpur

5.

Tamenglong

4,391

1,11,493

Tamenglong

Imphal West

519

4,39,532

Lamphelpat

7.

Imphal East

709

3,93,780

Porompat

8.

Thoubal

514

3,66,341

Thoubal

9.

Bishnupur

496

2,05,907

Bishllupur

MEGHALAYA
Area

22,429 sq km

Population

Capital

Shillong

PrincipII}

umguliSes

: 23,06,069
: Kha&i, Garo and English

States and Union Territories

839

HISTORY AND GEOGRAPHY

Meghalaya was created as an autonomous State within the State of Assam
on 2 April 1970. The full-fledged State of MeghaJaya can1l' into existenc' on
21 January 1972. It is bound on tlw north and east by Assam and on the south
and west by Bangladesh. Meghalaya, literally meaning tIll' abode of douds,
is .es~entially a hilly state. It is predominantly inhabited hy the Khasis, the
Jiunhas and the Garo tribill communities. The Khasi Hills (lnd Jaintia Hills
which form the central and l'ilstern part of Meghalaya is an imposing plateau
with rolling grasslands, hills and river valleys. The southern fan' of the platcilu
is marked by deep gorges and abnlpt slopes, at the foot of which, a narrow
strip of plain land runs along the international border with Bangladesh.

AGRICULTURE AND IRRIGATION

Meghalaya is basically an agrarian Stilte in which ."lhout RO pcr cent of its
population depends primClrily on tlgriculture for their livelihood. Tlw Statl'
has a vast potential for developing horticulture due to agro-cJimatic variations,
which offer much scope for cultivation of tempemtl', sub-tropical and tropical
fruits and vegetables.
Besides the major food crops of ricE' and maize, tvkghillaya is renowned
for its oranges (Khasi Mandarian), pineapple, hanana, iilckfnlits, t(~mp('r.'tp
fruits like plum, pears and peachl's, etc. Cash crops, popularly and Iraditionillly
cultivated indude polato, turmeric, ginger, black peppl'I", arecal1ut, betl'lvilw,
tapioca, short staple cotton, jute and m('stil, mu~\ard ilnd rap('seed. SpedClI
('mphasis is presently laid on non-traditional crops like oilseeds (groundnut,
soyabean and sunflower), cashewnut, tea and cofff'c mushroom, medicinal
plants, orchids and comm('rcial flowers.
The estimated irrigation potential of the Statp both from surface and
ground water is about 2.18 lakh hectare, th(' potential created so far is 25,229
hectares.

INDUSTRIFS
Meghalaya is bestowed with abundance of natural r('S(lurces, which are being
utilised for setting up of various types of industries in the State. Of late, a
vast number of Industrial Projects have been set up in the Private Sector
besides over 4,500 Small, Village and Cottage Sector of Industries. The
Meghalaya Industries Development Corporation (MIDC) Limit~d is the State's
Financial and Industrial Development Institution and extends financial credit
to the entrepreneur. Besides, the MeghaJaya Khadi and Village Industries
Board (MKVIB), the Meghalaya Handloom and Handicraft Development
Corporation (MHHDC) Limited also work for the promotion and development
of small scale and artisan industries. The District Industries Centres (DICs)
are the field level functionaries of the Directorate of Industries, working for
the development of the Small-Scale Sector.

840

India 2005

FESTIVALS
A five-day long religious festival of the Khasis, Ka Pamblang Nongkrem,
popularly known as Nongkrem dance is held annually at village Smit, 11 kIn
from Shillong Shad Suk Mynsiem another important festival of the Khasis,
is held at Shillong during the second week of April. Behdeinkhlam, the most
important and colourful festival of the Jaintias is celebrated annually at Jowai
in Jaintia Hills in July. Wangala festival is observed for a week to honour
Saljong (Sun God) of the Garos during October-November.
TOURIST CENTRES
Meghalaya is dotted with a number of lovely tourist spots, where nature
unveils herself in all her glory. Shillong, the capital city, has a number of
beautiful spots. They are Ward's Lake, Lady Hydari Park, Bishop Beadon Falls,
Elephant Falls, Umiam Lake, Mini Zoo and Shillong Peak overlooking the city
and the Shillong Golf Course, which is one of the best in the country.
TRANSPORT

Roads
Six nation highways pass through Meghalaya. The State has 7,860.16 kIn of
both surfaced and unsurfaced roads under PWD.

Aviation
The only airport in the State at Umroi, 35 kIn from Shillong is functional.

GOVERNMENT
Governor

: M. M. Jacob

Chief Minister : Dr. D. D. Lapang

Chief Secretary

P. J. Bazelcy

Jurisdiction of
High Court

Falls under the jurisdiction of

Guwahati High Court. There is a
High Court Bench at Shillong.

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Area (sq km)

Population

Headquarters

East Garo Hills

2,603

2,47,555

Williamnllgar

East Khasi Hills

2,748

6,60,994

Shinong

Jaintia Hills

3,819

2,95,692

Jowai

West Garo Hills

3,714

5,15,813

1\.irll

West Khasi Hills

5,247

2,94,115

NOllgstoill

Ri-Bhoi

2,448

1,92,795

Nongpoh

South Garo Hills

1,850

99,105

Baghmlull

States and Union Territories

841

MIZORAM
Arell

21,081 sq km

Popullition

Clipitlll:

Aizawl

Prillciplll LRnguliges: Mizo lind English

: 8,91,058

HISTORY AND GEOGRAPHY

Mizoram is a mountainous region which became the 23 rd state of the Indian
Union in February 1987. It was one of the districts of Assam till 1972 when
it became a Union Territory. After being annexed by the British in 1891, for
the first few years, Lushai Hills in the north remained under Assam while
the southern half remained under Bengal. Both these parts were amalgamated
in 1898 into one district called Lushai Hills District under the Chief
Commissioner of Assam. With the implementation of the North-Eastern
Reorganisation Act in 1972, Mizoram became a Union Territory and as a
sequel to the signing of the historic memorandum of settlement between the
Government of India and the Mizo National Front in 1986, it was granted
statehood on 20 February 1987. Sandwiched between Myarunar in the east
and the south and Bangladesh in the west, Mizoram occupies an area of great
strategic importance in the north-eastern comer of India. Mizoram has great
natural beauty and an endless variety of landscape. It is rich in fauna and
flora.
The origin of the word 'Mizo' is not known. The Mizos came under the
influence of the British Missionaries in the 19th Century. Now most of the
Mizos are Christians. Mizo language has no script of its own. The missionaries
introduced the Roman script for the Mizo language and formal education.
AGRICULTURE
About 60 per cent of the people of Mizoram are engaged in agricultural
pursuits. The main pattern of agriculture followed is Jhum or Shifting
cultivation. Out of the estimated potential available area of 4.4 lakhs hectares
for horticulture, the area put under plantation is around 25,000 hectares only.
The main horticulture crops are orange, lemon, kagzi lime, passion fruit,
hatkora, jamir, pineapple and papaya. Other crops are sugarcane, tapioca and
cotton. People have started extensive cultivation of ginger and fruit crops.
IRRIGATION
The ultimate surface irrigation potential is estimated at 70,000 hectares of
which 45,000 hectares is under flow and 25,000 hectares by construction and
completing 70 pucca minor irrigation projects and six lift irrigation projects
for raiSing double and triple crops in a year.

INDUSTRY
The entire Mizoram is a Notified Backward Area and is categorised under
'No Industry District'. However, concerted efforts were made in the last
decade to accelerate the growth of industries in Mizoram. For the development

842

India 2005

of industries in the State Government framed industrial policy in 1989. In t}w

policy resolution priority industries identified are : agro and forest-based
industries, followed by hand loom and handicrafts, electronics, consumec
industries. Sericulture is operating at Aizawl with two wings, viz., handloom
and handicrafts wing and geology and mining wing.
In the field of industrial development, the Government has already
alU10ul1ced new policy supports, on the basis of which, cottage and small
industrial units will continue to receive assistance.
The completed projects of fruit preservation factory at Vairengtc, Mizo
Milling Plant at Khawzawl and Fruit Juice Concentrate Plant at Chhingchhip
\\'l'l'I:) transferred to the incorporatl!d Mizoram Food & Allied Industries
t 'orporation (MU;CO) for commercial operation. Maize Milling Plant has also
bC'cn cnmpl()tt'd and commissioneo hy MlrCo.

Construction of Tuirial HydcJ Proj('ct capable of generating 60MW is in

progress. DPR of Kolodyne Phase-J having i'I capacity of 120 MW has been
handed over to the state government by Bri'lhmaputra Board and ewe. A
3 MW Teirei Hydel Project was commissioned and 23 diesel power how,es
have been functioning. A total of 695 villages have been electrified and 577
km of 132 KV line completed. implenwntation of 22.92 Mega Watt Thermal
Gl>nerating Plant at Bairabi has been commissioned. Resources foc
implementation of the Bairabi Hydel Project (80 Mega watt) at an estimated
amount of Rs 429 crore is being obtained from the Government of Indii'l.
Further, works on Serlui B (12 mega watt) Hydel Project, Maicham Small
Hydel Project stage - II (3 Mega watt) and Lamsial (500 Kilo watt) are in
full swing.
TRANSPORT
Total road length in the state is 4,001.53 km. Rail link in the state has bel~n
established at Bairabi. Aizawl is connected by air. In order to have a better
connectivity, the Government has undertaken the Mizoram State Roads
Projects with a total cost of Rs 350 crore under funds provided by the World
Bank. Connectivity under PMGSY covering a total road length of 2,421 km.
connecting 384 villages of Mizoram is making steady progress.
FESTIVALS
Mizos are basically agricultural. All their activities centre around jlwm
cultivation and their festivals are linked with such agricultural operations. Kut
is the Mizo word for festival. Mizos have three major festivals called Chapchar
Kut, Mim Kut and Pawl Kut.
TOURIST CENTRES
Aizawl is located at nearly 4,000 ft above sea level, is a religious and
cultural centre of Mizoram. Champhai is a beautiful resort on the Myanmar

States and Union Territories

843

border. Tam Oil, a natural lake with virgin forests, is 60 krn from Aizawl
and 10 km from Tourist Resort of Saitual. Vantawng Falls, 5 km from hill
station Thenzawl, art' the highest and most beautiful waterfalls in Mizoram.
The department of Tourism has opened Tourist Lodge at Aizawl, Lunglei,
Chl'lmphai, Saiha, Lawngtlai and wayside restaurants at Thingdawl, Hnahthial,
Kawlkulh, recreational centre at Beraw Tlang and Alpine Picnic Hut at District
Park near Zobawk.

GOVERNMENT
Ccl\'crn(lr

Amolak Rattan K()hli

Chwf Minister: Zoramthanga

Chief St'Cretllry: H.Y. Lalringa

lurisdlctloJl (If : Fillls ullder the jurisdiction of

Guwahllti High Court. Then' is

bench at MizOfam.

II

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

s.

No.

District

Area (sq km)

Population

Headquarters

1.

Aizawl

3,576.31

3,39,812

Aizawl

LUllgll'i

4,538.00

1.37,155

Lunglei

3.

Chhillltuipui

1,399.90

(>0,823

Saiha

4.

LawngtJai

2,557.10

73,050

Lilwngtlili

5.

Chilmphai

3.185.85

1,01,389

Champhai

(>.

Kolasib

1,282.51

60,977

l<olasib

7.

Mamit

3,025.75

62,313

Mamil

8.

Scrchhip

1.421.60

55,539

Serchhip

NAG ALAND
: }9,88,636

Areil

16 ...';79 sq km

Population

Cilpital

Kohima

Princip.ll L.ll1guilgCS : Angami, Ao, Chang, Konyak, lotha,

Sangtam, Serna ilnd Chakhesang.

HISTORY AND GEOORAPHY

Nagaland, the 16th state of the Indian Union, was established on 1 December
1963. It is bounded by Myanmar on the East, Arunachal Pradesh on the North,
Assam on the West .and Manipur on the South. It lies between the parallels
of 98 degree and 96 degree East longitude and 26.6 degree and 27.4 degree
latitude North of the Equator.

844

India 2005

The state of Nagaland has an area of 16.579 sq km with a population

of 19,88,636 as per the 2001 census. The state is mostly mountainous except
those areas bordering Assam valley. Mount Saramati is the highest peak in
Nagaland with a height of 3,840 metres and its range forms a natural barrier
between Nagaland and Myanmar.
The Naga people belong to the Indo~Mongoloid group of people Jiving
in the contiguous areas of the North Eastern hills of India and the upper
portion of Western Myanmar. The major~recognised tribes of Nagaland are
Angami, Ao, Chakhesang, Chang, Khiamniungan, Kuki, Konyak, Lotha,
Phom, Pochury, Rengma, Sangtam, Sumi, Yimchungru and Zeliang. The Naga
languages differ from tribe to tribe and sometimes even from one village to
another. They are, however, under the Tibeto-Burma family.
In the 12th and 13th Centuries, gradual contacts with the Ahoms of
present day Assam was established but this did not have any significant
impact on the traditional Naga way of life. However, in the 19th Century
the British appeared on the scene and ultimately the area was brought under
British administration. After independence this territory was made a centrally
administered area in 1957 administered by the Governor of Assam. It was
known as the Naga Hills Tuensang Area. This failed to quell popular
aspirations and unrest began. Hence, in 1961, this was renamed as Nagaland
and given the status of State of the Indian Union, which was formally
inaugurated on 1 December 1963.
AGRICULTURE
Nagaland is basically a land of Agriculture. About 70 per cent of the
population depends on agriculture. The contribution of agricultural sector in
the state is very significant. Rice is the staple food. It occupies about 70 per
cent of the total area under cultivation and constitutes about 75 per cent of
the total food production in the state.
The major land use pattern is slash and bum cultivation locally known
as jhum. Area under jhum cultivation is about 1,01,400 hectare and under
terraced cultivation 63,800 hectares during 2002-2003. The total food production
during the year was 3,86,300 MT.
Out of the total land area of 16,57,587 hectares, forest area occupy
approximately 8,35,436. There are wild life sanctuaries and national park,
namely, Intanki and Puliebadze in Kohima District, Fakim in Tuensang and
Rangapahar in Dimapur.
POWER

According to the 1981 census, Nagaland achieved cent per cent electrification
in the rural areas. The 1991 census ideritified that 1,216 recognised villages
out of which 1,212 villages have been electrified by March 2002. A 24
megawatt Ukhimro hydro-electric project was inaugurated on 12 Fabruary

States and Union Territories

845

2002. The ~5 ?,ega,:att Doyang hydro electric project under NEEPCO which
was commIssIoned 10 July 2000 was formally inaugurated on 2 March 2002.
IRRIGATION
There is no major or medium irrigation project so far constructed in the state.
The irrigation wor~ are mo~tly meant to divert small hill streamlets to irrigate
valleys used for nee culttvation. The total area under irrigation covers
93,231.43 hectares.
TRANSPORT
Roads

The total length of roads in Nagaland in 9,860 km which includes national

highway, state highways, district and village roads. 996 villages have been
linked by roads.
Rail ways/Aviation

Dimapur is the only place in the state from where air and train services are
available. There is tri-weekly Indian Airlines service connecting Dimapur with
Kolkata.
FESTIVALS
Music and dances are an intrinsic part of Naga life. Folk songs and ballads
eulogising bravery, beauty, love, generosity, etc., are transmitted from
generation to generation. Likewise dancing is an integral part of every festive
occasion. Feasting, singing, dancing and merrymaking invariably accompany
festivals. Some of the important festivals are Sekrenyi, Moatsu, Tokhu Emong
and Tuluni.
TOURISM
With the opening of the state to the international tourist by relaxation of
Restricted Area Permit (RAP), a good number of foreign tourists as well as
domestic tourists visit Nagaland every year.
The HORNBILL festival conceived by the Tourism Department and held
in the first week of December is an annual event where all tribes of Nagaland

come together to celebrate, exhibit and sell their traditional wares, foodstuffs
and crafts. Three traditional festivals, namely, Sekrenyi at Touphema in
Kohima district (Feb. 26-27), Monyu at Pongo in Longleng Sub-division (April
1-3) and Moatsu at Chuchuyimlang in Mokokchung district (May 1-3) have
been identified as festival destinations.

INDUSTRIES
The process of industrialisation in the state is in its infancy, but ~e nee~ to
have more industries has been well recognised. Nagaland Mechamsed Bncks
Co. Ltd., in Dimapur with one lakh capacity of bricks per day has b~n
commissioned. Handloom and handicrafts are important cottage capacity

846

India 2005

industries, which are mainly being managed by cooperative societies. The

Nagaland Handloom and Handicrafts Development Cooperation Ltd., in
Dimapur is the state owned Corporation, which is responsible for promotion
and marketing of himdloom and handicraft products in the state. An industrial
growth centre at Ganeshnagar near Dimapur is ready {or operation.
The Nagaland Industrial Development Corporation is the premil'r
promotional organisation in providing guidance and capital assistanCt' to
entrepreneurs. The 50 TPD Mini Cement Plant at Wazeho in Phek district has
commenced production. The fruits and vegetables processing and cold storage
plant at Dimapur has an installed capacity of processing 5 MT of fruits and
vegetables per day and 300 MT cold storage facility.

GOVERNMENT
(;ovt'nlOr

Chief

ShYdlllal Dutta

Juri.~dictioll

Chief Ministl'r: Neipiull Rio

KiydlWItl' Pascyil'

Speilker

~'{"rctilry

of

High Court

: T. Tdlitl'llljen
Gllw~hi1ti

: ralls under
There is

High Court

l>pnch at Kohil11.l.

AREA, POPULATION AND DISTRICT HEADQUARTERS

S. No.

District

Ared (St] kill)

Pt1puJ .. tioll

IleadqllMtl't'S

1.

Kohillld

),144

2.

Mukokchunl'

1,61;

2,27,320

MokokchulIg

3.

Mon

1.876

2,59,604

Mon

4.

Tuenlldng

4,228

4,14,801

Phek

5.

ZlInhebolo

1,255

l,.54,l/09

TuenSclng

6.

Wokh"

1.628

1.61,098

Wokh ..

7.

Dilll"pur

927

3,08.382

Zunheboto

8.

Phek

2,026

1,48,246

Dimapur

3,14,366

Kohil11.l

ORISSA
All'''

1,55,707 sq km

Populatioll

C,pUrl/

I1hubaneswar

Prlndpd' LrlllgUllge : Oriya

3,67,06,920

HISTORY AND GEOGRAPHY

Orissa, the land of Oriyas, was known as Kalingd in ancient days. In the third
century BC (261 Be) Ashoka the Mauryan emperor, sent a powerful force to
conquer Kalinga which offered stubborn resistance. Kalinga was subdued but
tht.! cdrnage which followed, struck Ashoka with remorse. After the death of
Ashokd, Kaling,l regained its independence. In the second century DC, it

St,ltes and Union Territories

847

become" powerful country under Kharavela. With the death of Kharavela,

Or~ssa pas~ect into ob~curit~. tn the fourth century AD, Samudragupta invaded
?l'ls~a which lay astnde ~llS path and overcame resistance offered by five of
Its klOgS. In 610 AD, Onss,l came under the sway of King Sasilnka. After

Sasank's death, Harsha conquered Orissa.

Orissa had its own rulers (Gdnga dynasty) in the seventh century AD.
In 795 AD, MahasivClgupta Yajati II came to the throne and with him began
the most brilliant epoch in the history of Orissa. He united Kaling", Kangoda,
Utkill and Koshala in the imperial tradition of Kharavela. Under the kings
of Ganga dynasty, Orissa continued to tlourish. Narasingha Dt.v of this
dynasty is reputed to have built the uniqul' Sun Temple of Konark. From mid16th Century, Orissa was ruled successively by five Muslim kings till 1592,
when Akbar annexed it into the Mugh,d cmpire. With the decline of the
Mughal empire, Marrlthas occupied Orissa. They continued to hold it till the
British took over in 1803.
Orissa was mil de into a separate province on 1 April 1936. After
Independence, princely states in and around Orissa surrendered their
sovereignty to the Government of India. By thc States Merger (Governor's
provinces) Order, 1949 the princely sti\tes of Orissa were completely merged
with the state of Oriss,l in January 1949. Although the state of Orissa had
many ancient names like Kalinga, Utkal and Udra, it is widely known as the
i,lnd of Lord. lag<lnnath. Lord Jagcmnath is intimately conm'cted with the
social, cultural and religious life of Orissa. Jainism, Islam and Christicmity' has
considerable impact on the people of Orissa in differellt periods.
Orissa is situated in the north-eastern part of the Indian peninsula. It
is bound by the Bay of Beng,ll on the cast, West Bengal on the north-east,
fharkhllnd on the north, Chhattisgarh on the west and Andhra Pradesh on
the south. The state may be broadly divided into four geographicAl regionsthe northern plateau, ct.'ntrClI river basin, eastern hills and coastal plains.

AGRICULTURE
Agriculture occupies a vital place in the economy of the state. It contributes
28 per cent of the net domestic product of the state. 65 per cent of the total
work force directly or indirt..'Ctly engaged in agriculture. Rice is the principal
food grain and its production during 2002-03 was 32.44 lakh metric tonnes.
Sugarcane cultivation has been widely accepted by the farmers.

IRRIGATION AND POWER

Irrigation potential has been created through major, medium, minor irrigation
and water harvesting project up to 2,603 lakh. hectares by the end of year
2002-03. To derive more benefit of irrigation assistance from the Central
Government 8iju Kroshak Vikas Yojana has been launched by the State
Government.

848

India i005

The total installed capacity of power in states sector during 2002-03 was
4,695 MW the power available from all sources was 1,371 MW out of 46,989
inhabited villages in the state 37,597 villages have been electrified during
2002-03.
INDUSTRY
The Industrial Promotion and Investment Corporation Limited, Industrial
Development Corporation Limited and Orissa State Electronics Development
Corporation are the three nodal agencies for promotion of large and medium
industries in the state. By the end of 2002-03 the total number of large and
medium industries has increased to 358. The state is providing institutional
and financial support with various incentives and concessions for promotion
of small-scale, village and cottage industries. Ouring the year 2~2-03 there
were 4,008 small-scale industries set up in the state.
TRANSPORT
Roads

The length of different categories of roads in the State by the end of 2003
is, 3,194 km National Highways, 30 km state express highways, 5,014 km state
highways, 3,288 km of major district roads, 6,138 km of other District roads,
3,338 km of classified village roads, 25,027 km of village Roads.

Railways
By the end of 2003 the state had 2,311 km broad-guage and 90 km narrowgauge Railways.
Aviation
The expansion and modernisation of Bhubaneswar airport is in progress.
Direct link is available from Bhubaneswar to places like Delhi, I<olkata,
Chennai, Nagpur and Hyderabad. There are 13 air strips and 16 helipads at
different places of the State.

Ports
Para deep is the only major port of the state. Gopalpur has been developed
as an all-weather port.
TOURIST CENTRES
Bhubaneswar is famous for the Ungaraj Temple while Puri is famous for the
temple of Lord Jagganath and its beautiful sea beach. Other places of tourist
interest are I<onark, Nandankanan, Chilka Lake, Dhauli Buddhist temple,
Udaygiri-I<handagiri ancient caves, Ratnagiri, Lalitgiri and Udaygiri Buddhist
images and caves, Saptasajya, Similipal National Park and TIger Project,
Hirakud dam, Duduma Water Falls, Ushakothi Wildlife Sanctury, Gopalpur
Sea beach, Hari Shankar, Nrusinghnath, Taratarini, Taptapani, Bhitar Kanika,
Bhimkunda, I<apilash, etc.

States and Union Territories

849

GOVERNMENT
Governor

Rameshwar Thakur

Chief Secretary

Prateep Kumar MohAnty

Chief Minister

Naveen Patnaik

Chief JustiCt'

Suji! Burman Roy

Speaker

Maheswar Mohanty

Jurisdiction of
High Court

OrisSA

AREA, POPULATION AND HEADQUARTERS OF DISTRICfS

S. No.

District

Area (sq km)

Population

Headquarters

1.

Angul

6,347

11,39,341

Angul

2.

Balllsore

3,706

20,23,056

Balasore

3.

Bolangir

6,552

11,35,760

Bolang!r

4.

Boudh

4,289

3,73,038

Bhadrak

Boudh

5.

Bhadrak

2,788

13,32,249

6.

Bargarh

5,832

13,45,601

Bargarh

7.

Cuttack

3,915

23,40,686

Cuttack

8.

Deogarh

2,781

2,74,095

Deogarh

9.

Ganjarn

8,033

31,36,937

Chatrapur
Dhenkanal

10.

Dhenkanal

4,597

10,65,983

11.

Gajapati

3,056

5,18,448

Parlakhemundi

Jagatsinghpur

1,759

10,56,556

Jagatsinghpur

13.

Jajpur

2,885

16,22,868

Panikoili

14.

Jharsuguda

2,202

5,09,056

Keonjhar

12.

Jharsuguda

15.

Keonjhar

8,336

15,61,521

16.

Kalahandi

8,197

13,34,372

Kalahandi

17.

Koraput

8,534

11,77,954

Koraput

18.

Kendrllpara

2,546

13,01,856

Kendrapara

19.

Khurda

2,888

18,74,405

Khurda

20.

Mllyurbhanja

10,410

22,21,782

Baripada

21.

Malkangiri

6,115

4,80,232

22.

Nawllrangpur

5,135.

10,18,171

23.

Nayagarh

3,954

8,63,934

Nayagarh

24.

Nuapada

3,408

5,30,524

Nawapara

25.

Puri

3,055

14,98,604

26.

Kandhamal

6,004

6,47,912

Phulbani

27.

Rayagada

7,585

8,23,019

Rayagada

28.

Sambalpur

6,702

9,28,889

Sambillpur

29.

Sundargarh

9,942

18,29,412

Sunda"$arh

30.

Sonepur

2,284

5,40,659

Malkanagiri
Nawarangpuf

Puri

Sonepur

India 2005

850

PUN/AB
Are,I

50,362 sq kill

POpUI.ltion

C.lpit~1

Chandig,Irh

f'rincip,t1 Languagl'

2,()2,81,1J6Y
Punj,Ibi

HISTORY AND GEOGRAPHY

Ancient Punjab formed part of the vast Indo-Iranian region. In later y('ar~ it
saw the rise and fall of the Mauryans, Bactrians, Greeks, Sakas, Kushans and
Guptas. Medieval Punjab saw a supremacy of the Muslims. Ghazn<lvi was
followed by the Ghoris, the slaves, the Khiljis, the Tughlaks, the Lodhis and
the Mughals. Fifteenth and sixteenth centuries marked a period of watershed
in the history of Punjab. Through teachings of Guru Nanak, Bhakti moveme,t
received a great impetus. Sikhism began ,1S a socio-religious movement, which
was more interested in fighting evils in religion and society. It was Guru
Gobind Singh, the tenth Guru, who transformed the Sikhs into the Khalsa.
They rose to challenge tyranny and after centuries of servitude, established
a humane Punjabi Raj based on secularism and patriotism. Maharaja Ranjit
Singh, in the words of a Persian writer, changed Punjab from Madam Kada
to Bagh-Bahisht (from the .lbode of sorrow to the garden of paradise). But
soon after his death, the entire edifice collapsed due to internal intrigues and
British machinations. After two abortive Anglo-Sikh wars, Punjab was finally
annexed to thE' British Empire in 1849.
The fight against the British rule had begun long before Mahatma
Gandhi's arrival on the scene. The revolt f(lund expression through the
movement of a revivalist or reformist character. First, it was the Namdhari
sect, which believed in self-discipline and self-rule. Later, it was Lala Lajpat
Rai who played a leading role in the Freedom Movement. Punjab was in tht
vanguard of India's freedom struggle 011 all fronts in India and abroad.
Punjab's hardships did not end with Independence. It had to face the misery
of Partition with large scale bloodshed and migration. Besides their
rehabilitation, there was the task of reorganisation of the State.
Eight princely states of East Punjab were grouped together to form a
single state called PEPSU-Patiala and the East Punjab States Union-with
Pahala as its capital. PEPSU state was merged with Punjab in 1956. Later in
1966, Haryana was carved out of Punjab.
Situated in the north-western corner of the country, Punjab is bound on
the west by Pakistan, on the north by Jammu and Kashmir, on the northeast Himachal Pradesh and on the south by Haryana and Rajasthan.
AGRICULTURE
Punjab State with only 1.5 per cent Geographical area of the country, produces
21 per cent of Wheat, 10 per cent Rice and 12 per cent of cotton in the country.
Now the cropping intensity of Punjab State is more than 186 per cent and
Punjab State which was earned a name of "Food. basket of country and

States and Union Territories

851

granary of India" has been pooling 40-50 per cent of rice and 50-70 per cent
of ~hat for last two decades and comparing to world it produces 1 per cent
~f nce 2 per cent of wheat and 2 per cent of cotton of the world. Whereas
It consumes 8 per cent of total fertilizer consumption. In Punjab per hectare
consumption of fertilizer is 177 kg as compared to 90 kg at national level.
The s~te has. been awarded national productivity award for agriculture
extension services from 1991-92 to 1998-99 and 2001-02 to 2002-{)3 .
.Duri~g ~OO4-05 a Kharif campaign has been organised with main stress
on d1ssemmation of latest f~rm technology. A special campaign has also been
launch~d to check the quahty of seed, fertilizer and pesticides. Crop loan is
also be~g ensured to the farmers. The government has assured canal water
~u~ply 10 the cotton belt for timely sowing of cotton crop. With these efforts,
1t 1S expected to achieve the targets set for the year 2004-05.
INDUSTRY

There are 2.03 lakh small-scale units in the State. These units produce bicycle
parts, sewing machines, hand tools, machine tools, auto parts, electronic items,
sports goods, surgical instruments, leather goods, hosiery, knitwear, nuts and
bolts, textiles, sugar, vegetable oil, etc., giving employment to 9.26 lakh
persons. As on 31 March 2004, there are 645 large and medium scale units
providing employment to about 2.59 lakh persons. A large number of
Information Technology and Software Development Companies are coming
up in the State. With the setting up of Earth Stiltion in Mohali and laying
of fibre optic cables in the State basic infrastructure has been established for
the growth of Information Technology industry. Under the Industrial
Infrastructure Up-gradation Scheme (IIUS), the Government of India has
sanctioned two projects, namely, Knitwear Cluster and Bicycle Parts Cluster
at Ludhiana. The primary objective of the scheme is to enhance international
competitiveness of the domestic industry by providing quality infrastructure
through public/private participation in clusters/locations which have greater
potential to become globally competitive.
IRRIGATION

Punjab being an agrarian state, a very high priority is being given to

agriculture development. The water available in Punjab is much less as
compared to the land potential. Therefore, to maximise production per unit
of water resources, it is emphasised to utilise every drop of water available
judiciously and carefully. Due to better irrigation management an additional
O.971akh hectare of area has been brought under cotton crop in various cotton
growing districts of Punjab. The Geographical area of the State is 50.36 lakh
hectares having a culturable area of 42.90 lakh hectares out of which 33.88
lakh hectares is commanded by a vast network of canal infrastructure having
a length of 14,500 km of main and branch canals distributaries and minors.
The number of projects for raising the capacity of 6 canals ~f Abohar
Branch canal system and raising the capacity of 8 canals of Bathinda canal
system amounting to Rs 18.83 crore have been sanctioned by NABARD for

852

India 2005

funding under RIDF during the financial year 2003-04. The process of
exeuction of these works have since been started. With the utilisation of these
funds an additional irrigation potential of 15,000 hectares will be achieved.
For the year 2004-05 provision of Rs 40 crore has been made in the
formulation of Annual Plan for raising the capacity of various irrigation
channels under RIDF (NABARD). Besides, this a provision of Rs 15.51 crore
has also been proposed for raising the capacity of Guman, Bhikhi, Boha,
Dhudal and Bhaini distributaries alongwith remodelling of Khemkaran
Distributary under RIDF (NABARD). A provision of Rs 6.80 crore has been
proposed for the completion of ongoing work of super passage at RD-20376O
of Jalandhar Branch of Bist Doab Canal System, Rs 5 crore for remodelling
of Bist Doab Canal System and Rs 10 crore have been proposed for converting
Banur Canal System for Non-perennial to perennial. In addition to this Rs
45 crore have been proposed for 0 & M of vast network of canal infrastructure
under head -470 Major Irrigation Schemes (Non-Plan).
Ranjit Sagar Dam is multipurpose river valley project which has been
constructed 8 upstream of Madhopur Head Works. It comprises of 160 metre
high earth core-cum-gravel shell dam on river Ravi with a gross storage
capacity of 3,280 million cu. mts. It provides augmentation of irrigation
potential to the tune of 3.48 lakh hectares of land. Punjab Irrigation and
Drainage project Phase II with dredit assistance from World Bank has been
completed. Irrigation potential of the existing irrigation system has been
improved by completing the lining of 1,092 km length of channels, lining of
33,000 km of water courses and modernisation of 295 canal regulation
structures have been completed under the World Bank Project. Rehabilitation
of 1,260 km length of Channels and 53 km new Channels have also been
completed with state funds. A Project for remodelling of UBOC System to
utilise additional supplies .available on completion of Ranjit Sagar Dam has
been taken up under AIBP Scheme. A total length of 273.12 km of main/
branch canals out of 364.10 km and 1,498.11 km length of lined/unlined
distributaries/minors out of 1,557.25 km length provided in the project has
since been completed at a cost of Rs 120 crore. The backward Kandi Area
in Punjab has been developed by construction of 11 Low Dams irrigating an
area of 12,000 hectares of land and Kandi Canal system irrigating an area
of 12,000 ha, and completion of Kandi canal will irrigate an area of 19,867
ha; brining in green revolution to the area. 1,615 deep tubewell for irrigation
purposes and additional length of 3,905 km water courses have also been lined
with which a total length of 36,905 km of water courses stands lined in the
state. The impact of rising water table in the southern part of the State of
Punjab has been reduced by construction of new drains and resectioning of
existing 8,000 km of drains, 1,800 km of flood protection embankments and
about 3,800 river training works have also been completed. Installation of
shallow tubewells along Sirhind Feder in the most critical areas also helped
arresting the seepage from the Canal. On the irrigation front about 60 per
cent of the total irrigated land is served private/government tubewells and
raising 40 per cent is irrigated through canals.

States and Union Territories

853

POWER
Th~ c~nstruction of Bhakra Nangal Complex including Bhakra Dam, Bhakra
Mam lme, Nangal Hydel Channel, Ganguwal and Kotla Power House Harike
Barrage, Sirhing Feeder, remodelling of Madhopur Headworks into Barrage,
etc., and B~as D~m at P~ng have been some of the major Irrigation and
~~dr~lectnc Projects which have played a significant role in enhancing the
Irrlgahon and power potential of the State. Madhopur Beas Link was
c~nstruc~ed to t~ansfer surplus water of Ravi to Beas. A similar Beas-Satlej
Lmk :~oJect envIsages the utilisation of the Beas water for the production of
electnclty at Slap per and then transferring this water to Gobind Sagar lake.
The Mukerian and Anandpur Sabib Hydroelectric projects are two important
irrigation and power projects.

Ranjit Sagar Dam is multipurpose River Valley Project, comprising a 160

metre high earth core-cum-gravel shell dam on river Ravi, with a gross storage
capacity of a reservoir as 3,280 million cum. It provides additional irrigation
potential of 3.48 lakh hectares of land. All the four units of Ranjit Sagar Dam
(4 x 150 MW) have been commissioned successfully. Annual generation from
this project shall be 2,100 MU's out of which 4.6 per cent of energy generated
shall be supplied free of cost to Himachal Pradesh and 20 per cent energy
generated shall be supplied to J&K at genuine cost. By the completion of this
dam water of all three rivers allocated to Punjab under Indus Water Treaty
will be harnessed. About Rs 500 crore per annum as started accruing and this
project is likely to cover its own cost by the next four to five years.
PEDA
The Punjab Energy Development Agency (PEDA) has implemented a special
programme of 700, 2HP Solar Photovoltaic Water Pump Sets for irrigation
purposes in the state during financial year 2002-03 with financial assistance
of Rs 17.15 crore from the Ministry of Non-Conventional Energy Sources
(MNES), Government of India. So far 1,700 such solar water pump sets have
been installed in the state during the last three years. PEDA had also taken
up the execution of eight Mini Hydel Projects with a total capacity of 9.8 MW
on canal falls as technology demonstration projects. Three projects on BOO
basis with a total capacity of 3.9 MW have been completed in March 2003.
PEDA has also commissioned 200 KWP Solar Photovoltaic Grid Interactive
Power Plant at village Khatkar Kalan at a total cost of Rs 4.5 crore. This project
has been dedicated to the nation on 23 March 2003 by Dr. A.P.}. 'Abdul Kalam,
Hon'ble President of India. PEDA has also been sanctioned 1 MW
Biomethanation cattle dung based demonstration power project at Haebowal
Dairy Complex (Ludhiana). The estimated cost of this project is Rs 14 crore.
MNES has provided 50 per cent grant for this project. The work of Sardar
5waran Singh National Institute of Renewable Energy on }alandhar-Kapurthala
Road with grant of Rs 38 crore from MNES, is also under execu.tion. PEDA
has also been sanctioned one state level Renewable Energy Park WIth a central

854

India 2005

grant of Rs 90.90 lakh by the MNES. This park is being set up in Pushpa
Gujral Science City, Kapurthala. PEDA has distributed/installed 500 domestic
Home Lighting Systems and 250 Solar Street Lights in the state during 2002
03. In addition, 1,500 family Size Biugas plants were also installed during the
financial year 2003-2004.
TRANSPORT
Roads
PUblic Works Department Building and Roads branch has been r('sponsible
for assets of State Government in terms of roads, bridges and buildings. The
road network comprises of : National Highways: 1,717 kID; State Highways:
1,485 km; Major District Roads: 1,808 km, Other District Roads: 4,081 km:
Plan Road Length: 7,374 km and Rural Link Roads: 41,700 km.
Punjab Roads and Bridges Development Board was established as a
statutory body in 1998 with the enactment of PRBDB Act (No. 22) of 1998
with a basic aim of mobilising additional resources for state roClds.
Railways
The length of the rail routes passing through the Stat<.' is around 3,726.06 km.
Rail communication with Pakistan also emanates from Punjab (Amritsar).
Aviation
There are Four Civil Aviation Clubs at Ludhiana, Patiala, Amritsar and
Jalandhar, one domestic airport at Chandigarh; International Airport CIt
Rajasansi (Amritsar) and two aerodromes at Patialil and Sahnewal (Ludhiana).

FAIRS AND FESTIVALS

Besides festivals of Dussehra, Diwali, Huli, other important ft'stivals/f<lirs/
melas are Maghi Mela at Mukatsar, Rural Sports at Kila Raipur, Basanl at
Patiala, Hola Mohalla at Anandpur Sahib, Baisakhi at Talwandi Saboo, L1rs
at Rauza Sharif at Sirhind, Chappar Mela at Chappar, Skeikh Farid Agam Purb
at Faridkol, Ram Tirath at Village Ram Tirath, Shaheedi Jor Mela at Sirhind,
Harballah Sangeet Sammelan at Jalandhar and Baba SodClI at )alancUiar. In
addition to above fairs and festivals, 3 heritage festivals at Amritsar, Patiala,
Kapurthalla are also celebrated every year and very popular among Ihe
tourists.

TOURISM
The Punjab Tourism Development Corporation is running 17 compl('xl's
including 3 Hotel at Amritsar, 6 FiJling stations and 4 Holidays liom('s. In
addition 2 Complexes and one Banquet Hall at Pathankot have been giWl1
on lease/licence to the private parties. Shops at Floating RestaurAnt, Sirhind,
Tourist Complex, Ropar; Tourist Complex Madhopur and Tourist Complex,

States and Union Territories

855

Moga have been licenced out to the privatl' parties t{l run the gift shops. The
stall' has also a large number of places of tourist inh'rl'st some of which
include Golden Templ(', Durgiana Mandir, Jallianwalil Bagh in Amritsar,
Takhat Keshgarh Sahib and Khalsa Heritag(' Complex at Anandpur Sahib,
Bhakhra Dam, Qila Androon and Moli Bagh Palac(' at Patia!a, w(.,t land at
Harike Pattan, Sangho) for archaeological importance and Chhatbir Zoo,
Mughal Monument Complex at Aam Khas Bagh ilnd Roza Sharif of Shc.>ikh
Ahmed at Sirhind with graves of Afghan Rul('rs. Sodal Temple ill Jalandhar
and Ram TIrath Comm('morativ(' Maharishi Balmiki's h<>ritagl'.

GOVERNMENT
COW,'TllnT

Chi!'[

Milli~leT

: Gl'nl'ral (Rl'td.)
S.F. Rorlriglll'S

Chie/ St,("Il'Iary

).S. Cill

: Capl. Amarinder
Singh

Chief jllstic!'

Bimld Kllmar Roy

JUTisriicl;(l/I of
High COIITI

Punjab, Iiaryana ;lnd

CIMndigarh

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

5. No.

District

AWOl (sq kill)

Population (1')

Heildquilrtcrs

1.

Amritsar

5,075

311,74,207

Amrit1lar

2.

Bhalinda

3,377

11.111.23ti

Bathindil

3.

Faridkot

1.472

5,52,46(,

Faridkot

4.

Fatl.'hguh Sahib

),1110

5,39,751

Fathl'gllrh Sahib

5.

Firozepur

5,865

17,44,753

Firozepur

6.

Gurd"spur

3,570

20,%,889

Gurdaspur

7.

Hoshiarpur

3,310

14,78,045

Hoshiarpur

8.

Jalandhar

2,658

19,53,5011

)alilndhar

9.

Kapurthala

1,646

7,52,287

10.

ludhiana

3,744

30,30,352

11.

Mansa

2,174

6,88,6..'m

Mall!li\

12

Moga

1,6n

8,8(,,313

Moga .

13.

Muktsar

2,5%

7,76,702

Muktlll'lr

14.

N"wlln Shehllr

1,258

5,86,637

Nawan Shebar

15.

Patflllll

3,627

18,39,056

Patiala

16.

Roop Nagar

2,117

11,10,000

Roop Napr

17.

SllfllNr

5,021

19,98,464

SangNr

Kapurthalll
Ludhiilna

856

India 2()5

RAJASTHAN
Arell

3.42.239 sq Ian

Population

5.64.73.122

Capital

Jaipur

Principal LangUitges

Hindi and RIIjasthani

HISTORY AND GEOGRAPHY

Rajasthan, the largest State in India area-wise prior to Independence was
known as Rajputana or the home of Rajputs-a martial community who ruled
over this area for centuries.
The history of Rajasthan dates back to the pre-historic times. Around
3,000 and 1,000 BC,it had a culture akin to that of the Indus Valley Civilisation.
It were the Chauhans who dominated Rajput affairs from seventh century
and by 12th century they had become an imperial power. After the
Chauhans,it were the Guhilots of Mewar who controlled the destiny of the
warring tribes. Besides Mewar,the other historically prominent states were
Marwar.Jaipur,Bundi,Kota,Bharatpur and Alwar. Other states were only
offshoots of these. All these states accepted the British Treaty of Subordinate
Alliance in 1818 protecting the interest of the princes. This naturally left the
people discontented.
After the revolt of 1857,the people united themselves under the leadership
of Mahatma Gandhi to contribute to the freedom movement. With the
introduction of provincial autonomy in1935 in British India,agitation for civil
liberties and political rights became stronger in Rajasthan. The process of
uniting scattered states commenced from1948 to 1956 when the States
Reorganisation Act was promulgated. First came Matsya Union(1948) consisting
of a fraction of states. slowly and gradually other states merged with this
Union. By 1949,Major states like Bikaner, Jaipur, Jodhpur and Jaislmer jOined
this Union making it the United State of Greater Rajasthan. Ultimately in
1958,the present State of Rajasthan formally came into being, with Ajmer
state, the Abu Road Taluka and SuneI Tappa joining it.
The entire western flank of the state borders with Pakistan, while Punjab,
Haryana,Uttar Pradesh and Madhya Pradesh bind Rajasthan in north, northeast, south-east and Gujarat in south-west.
AGRICULTURE
Total cultivable area in the State is 134.12 lakh hectares (2003-2004). The
estimated foodgrain production is 6O.321akh tOMes. Principal crops cultivated
in the State are rice, barley, jowar, millet, maize, gram, wheat, oilseeds,
pulses,cotton and tobacco. Cultivtion of vegetables and citrus fruits such as
orange and malta has also picked up over the last few years. Other crops
are red chillies, mustard, cuminseeds, metro and lUng.

INDUSTRY AND MINERAlS

Endowed with a rich culture, Rajasthan is also rich in minerals and is fast
emerging on the industrial scenario of the country. Some of the important

States and Union Territories

857

Central undertakings are Zinc Smelter Plant at Devari (Udaipur), Copper

Plant at Khetri Nagar (Jhunjhunu) and Precision Instrument Factory at
Kota.Small-scale industrial units numbering 2,47,965 with a capital investment
of Rs 3,681.81 crore proivided employment potential to about 9.51 lakh
persons in the State as on December 2003. Major industries are textiles and
woollens, sugar, cement, glass, sodium plants, oxygen, vagetable dyes,
pesticides, zinc, fertilizers, railway wagons, ball bearings, water and electricty
metres, sulphuric acid, television sets, synthetic yam and insulating bricks.
Besides, precious and semi-precious stones, caustic soda, calcium carbide,
nylon and tyers, etc., are other important industrial units.
Rajasthan has rich deposits of zinc concentrates, emerald, gamet,
gypsum, silver ore, asbestos,felspar and mica. The State also abounds in salt,
rock phosphate, marble and red stone deposits. The first Export Promotion
Industrial Park of the country has been eslablished and made operational at
Sitapura (Jaipur).
IRRIGATION AND POWER
Irrigation potential has been raised to 71000 hectares (including IGNP) during
2003-04 and the total irrigation potential of the State is 31.11 lakh hectares.
The installed power capacity in the State has become 5,167 Mw up to March
2004 of which 2,765 Mw is produced from State own projects, 975 Mw from
collaboration projects and 1,427 Mw from the allocation from central power
generating stations.
TRANSPORT
Roads

The total length of roads is 1,58,240 km as on March 2004.

Railways
Jodhpur, Jaipur, Bikaner, Kota, Sawai Madhopur and Bharatpur are main rail
junctions.

Aviation
Regular air services connect Jaipur, Jodhpur and Udaipur with Delhi and
Mumbai.

FESTIVALS
Rajasthan is a land of festivals and fairs. Besi~es the ~ationa~ festivals of Hall,
Deepawali, Vijayadashmi, Christmas,etc. b1tth annIVersaries of gods and
goddesses, saintly figures,folk heroes and heroines .are celeb~ated. Imp~rtant
fairs are Teej Gangaur ( Jaipur), annual Urs of A)mer Shenf and Galiakot,
tribal Kumbh' of Beneshwar (Oungarpur), Mahaveer fair at Shri Mahavirji in
Swai Madhopur,RamdeoraUaisalmer), J~bheshwari Fair(~u~m-.Bikaner),
Kartik Poomima and Cattle Fair(pushkar-AJmer) and ShyamJl Fall (Sibr), etc.

858

India 2005

TOURIST CENTRES
Jaipur, Jodhpur, Udaipur, Bikaner, Mount Abu, Sariska Tiger Sanctui'lry in
Alwar,Keoladeo National Park at Bharatpur, Ajmer, Jaisalmer, Pali and
Chittorgarh are important places of tourist interest in the sti'lll'.

GOVERNMENT
Governor

Pratibha Pl\til

Sumitrll singh

Spt'i1ker

Chit'f St.'C!L>Ii\ry

: R.K. Nair

Chit'f Justin'

: JusUn' Anan Kumar

.1uri.~dicljol1

: Rajasthan

of

High Courl

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S. No.

District

Area (sq km)

Population

Headquarters

Ajnll'r

8,481

21,1!0..'i26

Ajmer

2.

Alwar

8,31!O

2'),90,862

AlwlU

3.

Bilnswara

5 ,037

15,00,420

Banswara

4.

Barmer

21!,:387

19,63,758

Banner

Bhllratpur

5,0(>6

20,98,323

Bharatpur

fl.

Bhilwara

10,455

20,09,516

Bhilwara

7.

Bikanl'r

27,244

16,73,562

Bikaner

".

Bllndi

5,5511

9,61,269

9.

Chillorgarh

1(1,856

18,02,656

Chittorgarh

10.

Chum

16,830

19,22,908

Chunl

11.

Dholpllr

3,034

9,82,815

12

Dungarpur

3,770

11,07,037

Dungarpllr

Gi\nganllgar

7,944

17,88,4R7

Gangllnagllr

14.

Jaipm

11,588

52,52,388

Jllipur

15

Jaisalml'r

38,401

5,0',999

lb.

}alore

10,640

1.,48,486

}alore

(,,219

11,80,342

)hatllwllr

17.

Jhalawar

18.

Jhunjhunu

Bundi

Dholpur

Jai8lllmer

5,928

19,13,099

Jhunjhullll

22,850

28,80,m

Jodhpur

5,481

15,68,580

Kola

Nagam

17,718

27,73,894

Nllgaur

22.

Pllli

12,387

18,19,201

Pali

23.

Sawlli MlKfhopur

5,()43

ll,16,031

Sllwai Madhopur

]9.

Jodhpur

20.

Kota

2].

States and Union Territories

859

24.

Sikar

7,732

22,87,229

Sikar

25.

Sirohi

5,136

8.50,756

Sirohi

26.

Tonk

7,194

12,11,343

Tonk

27.

Udaipur

12,511

26,32,210

Udllipur

211.

Dausa

2,950

13,16,790

Dautlll

6,955

10,22,568

Baran

29.

Baran

30,

Rajsallland

:II.

Hanumangarh

:>2.

KaroJi

4,768

9,86,269

12,690

15,17,:'190

Hllnumangllrh

5,014

12,05,631

Karoli

Rlljsamllnd

SIKKIM
An'if

7,096 sq kill

POl'uliltion

Cfpitifl:

Gangtok

Prillcipill

5,40,4<)3 (2001 Cl'nSlls)

UllIgllilgl'S:

Lepcha, 13hutia and Nl'pali

HISTORY AND GEOGRAPHY

The early history of Sikkim starts in the 13th century with the signing of a
blood-brotherhood treaty between the Lepcha Chief Thekong Tek and Tibetan
prince Khye-Bumsa at Kabi Lungtsok in North Sikkim. This follows the
historical visit of three rever<>d Lamas to Yuksam in 1641 in West Sikkim where
they consecrated l'huntsog Namgyal, a sixth gl'l1C'ration descendent of KhyeHumsa as the first Chogyal of Sikkim, thus hl'fillding the beginning of the
N,ungyal dynasty in Sikkim. With Ih<' march of history, evC'nts in Sikkim saw
the Stat{' pass through the proc(.>ss of Ol'lHocratis<ltion and become an integral
part of the Indian Union in 1975. Curu Pilomasal11bhava blessed Sikkim
('nroute to Tibet. Sikkim is a bless('d land where p<'opl(' from all communities
li\'(.' in h<trmony. Inspite of the fact that Sikkim comprises of diff~rent people
and multi chtnic sodety, perhaps it is 11)(' most p<'aceful State of thl' Indian
Union to promote communal harmony and human relations, a feat which is
milch ('xpect{>d in a plural soci<>ty like India.
Sikkim is a small hilly statl', hound<,d by vast stretches of Tibetan
Plnteaux in the North, the Chumbi VallC'y oj Tiber and th(' Kingdom of Bhutan
in the East, the Kingdom of Nl'paJ in th(.> \\'<'sl ano Darjeding (W('st lk-ngal)
in thc' South. Tlw State has a total ar<>a of 7,096 sq km and is stJ'l'tchC'd OVl'f
112 km from North to South and 64 km from East to West. It lirs in th(' NorthEastC'rn Himnlnyas b('tween 27 degr('(.> 00'46" to 28 dl'gr('(1 07'48" N(lrth
l.tltitud(' imd 88 dl'Sf(l(' 00'58" to 88 d<>gtl'C' 55'2!1" East Longitud('.
The world's third highest mo\tntain, Khangchl'nd1.onga, legardC'd as th('
guardian deity of Sikkim, dominates the tiny Himalayan State with its i'lWC'h,spiring bca\lty Md majesty. 5ikkim is one of th(' 18 biodiversity hotspots
in the World. The 5ikkim Himalayas show tremendous biological diversity.
More than SOOO species of angiosperms are fOWld in the State, nearly one third

860

India 2005

of the total species of angiosperm found in the country. There are 4000 species
of flowering plants, 300 species of ferns and allies, 450 to 500 species of
orchids, 36 species of Rhododendrons, 40 species of oaks, 30 to 40 species
of Primulas and bamboos, 144 species of mammals, 500 to 600 species of birds,
over 400 species of butterflies and moths and many species of reptiles in the
State. Rare Blue Sheep, Tibetan Mastiff, Yaks and Red Pandas are found here.
TOURISM

Sikkim is famous for its lush green vegetation, forest, scenic valleys and
majestic mountains and a range of rich and magnificent cultural heritage and
peace loving people which provides a safe haven for tourists. The State
Government supports eco-friendly and pilgrim tourism and accordingly have
provided facilities to enable visitors to enjoy a first-hand experience of the
rich heritage and lifestyle of Sikkim. Recognising the potential of adventure
tourism, the state government is setting up a Himalayan Centre for Adventure
Tourism at Chemchey Village in South Sikkim. Surajkund Mela in 2002, which
had Sikkim as the theme, aroused interest on Sikkimese craft, folk arts, and
heritage.
The premier monastery of Sikkim is Pemayantshe in Pelling. Apart from
this there is Tashiding Monastery in West Sikkim, which is considered the
holiest of all the monasteries in Sikkim. The most ancient monastery of Sikkim
is in Yuksom, called the Drubdi monastery. It was the personal hermitage of
Lhatsun Chenpo (Patron Saint of Sikkim), and was possibly built in 1700 AD.
Some of the other monasteries are Phodong, Phensang, Rumtek, Ngadak,
Tolung, Ahlay, Tsuklakhand, Ralong, Lachen, Enchey and others. Of the Hindu
temples, the best known is the Thakurbari, in the heart of Gangtok. Then there
is a holy cave in South district, which has a Shiva Lingam that irradiates the
cave where no other light finds its way. There are some important Gurdwaras
and Mosques, cheif among them being in Gangtok and Ravangla.
FESTIVAlS
Sikkims population comprises the three principal ethnic communities of the
Bhutias, Lepchas and the Nepalese. Maghey Sankranti, Durga Puja, Laxmi
Puja and Chaite Dassai/Ram Navami, Dassai, Tyohar, Sonam Losoong,
Namsoog, Tendong Lho Rum Faat (Worship of Mt. Tendong), Losar (Tibetan
New Year) are the major festivals. The other festivals include Sakewa (Rai),
Sonam Lochar (Gurung), Barahimzong (Magor), etc.
AGRICULTURE
The State's economy is basically agrarian. More than 64 per cent of the
population depends on agriculture for their livelihood. Agricultural land in
Sikkim is estimated to be around 1,09,000 hectares, i.e., 15.36 per cent of the
total geographical area. Farmers commonly follow mixed farming, which is
ideally suited and fits well in the developmental process of making Sikkim
an organic State. The State Government has drawn up plans to promote
organic farming in Sikkim and see the further value addition in its agricultural

States and Union Territories

861

and horticultural prod~ce~. Maize, rice, wheat, potato, large cardamom, ginger
and ora~ge are the prmclpal crops. Sikkim has the largest area and highest
production of large brown cardamom in India. Ginger, potato, organge and
off-season vegetables are other cash crops.
As per the Human Development Report-2001, land resources in Sikkim
are con~t~a.ined on account of demographic pressure (per capita availability)
and activItIes. that they can sustain. Diversification in the pattern of land use
has to take mto account both food security requirements and constraints
impose~ ~y .th~ t~rrain. The limitations of terrace farming in terms of
produc~lvlty, Irrigation and the scope for extending cultivation highlight the
constramts faced by farming for livelihood security. Under these conditions
innovative practices in land management and horticulture and floriculture can
be identified as growth sectors.
INDUSTRY
Though Sikkim has been declared industrially backward state, the existence
of craftsmanship based traditional Sikkimese cottage industries dates back to
several centuries. Lepcha's skill in bamboo-craft, woodwork, spinning of yam
and carpet weaving in traditional textures, Bhutia's excellence in ancient
Tibetan practice of carpet and rug weaving and Nepali's celebrated
craftsmanship of their metalwork, silverware and woodwork are very exclusive.
The Department of Commerce and Industries lays emphasis on the promotion
and development of various small-scale industries. New Industrial Policy,
which was extended in the year 2003, provides special package for development
of industries in the state on the lines of northeast industries policy. This
includes excise and income tax exemption to all new industries as well as
expansion of existing units for a period of ten years from the date of
commencement of commercial production. In addition, the policy also entails
granting of financial concessions to 12 identified thrust areas in industries
irrespective of where they are located in the state. The Govemment of Sikkim
had organised two workshops at Delhi in 2003 to open up Sikkim as an
investment destination and industrial growth.
Sikkim Jewels limited is one of the sophisticated and precision oriented
industries for the manufacture of jewel bearings for electric meters, water
meters and other measuring instruments like watches and clocks. Ten ancillary
units have been set up to manufacture watch jewels. The Sikkim Industrial
Development and Investment Corporation Ltd., (SIDlCO) was set up as the
state level principal financial institution engaged in the promotion and
financing of development in this sector. It provides long-term loans for cottage,
tiny, small and medium scale industrial units, hotels, hospitals, nursing homes
and taxis.
IRRIGATION AND POWER
Tenth Five Year Plan targets to irrigate 34,118 hectares of agricultural land.
Many new irrigation schemes for providing assured water both for Kharif ~d
Rabi cropping are taken up and to prevent damages to open channels OWlng

862

India 2605

to landslides and to ensure regular flow of water concrete hume pipes and
HOPE pipes are used extensively in problem areas.
Total installed capacity of power in the State is 36 MW that is hydro
based with transformation capacity of 123 MVA. Rangeet hydel project has
installed capacity of 560 MW. The total power potential of the state is
estimated at 8,000 MW. Though only 0.2 per cent capacity was installed by
the year 2001, four hydro projects with the total of 804 MW power are nearing
completion in the state. More initiatives are being taken by the government
to tap the full potential of the power in the state. The State is also open to
private investment in power sector. The Teesta V Project now under construction
is run of the river scheme located in the East District and the proposed
installed capacity of this project is 510 MW.

TRANSPORT
Roads
Gangtok is connected by roads with Darjeeling, Kalimpong, Siliguri and also
with all the district headquarters within Sikkim. The total road length of the
state is 2,383 km including 41 km of National Highway.

Railways and A\';ation

The closest railway stations are Siliguri (113) and New Jaip"iguri (125 km)
connecting Kokl.lta, Delhi, Guwahati, Lucknow and other important cities.
There is no airport in Sikkim though its foundation stone was laid by the
then Vice President of India Kishan Kant in the year 2002 to construct an air
strip ncar Pakyong, East Sikkim which is around 32 km from Gangtok. There
is a helicopter service between Gangtok and Bagdogra hC'avily subsidised by
the State Government. The State has also initiated construction of number of
hclipads to connect the district and sub-divisional headquarters and important
tourist places.

INFORMATION TECHNOLOGY
A new Information Technology Department has been created in the state and
has prepared extensive projects to give top priority to this department. The
newly created department has already launched a number of web sites on
Sikkim and is now aiming for e-governance through the use of information
tools. The official website of Sikkim hosted and maintained by the Department
of Information Technology, Government of Sikkim is www.sikkimioYt.Q'I~'

GOVERNMENT
Governor

: V. Rama Rao

Chief Secretary: S.W. 'Tt'lIzlng

Chief Minister

: Pawan Cham ling

Chief Justice

Speaker

: D.N. Takarpa

Jurisdictiol) of : Sikknn
High C"urt

: R.K. Pillrrl

States and Union Territories

863

AREA, POPULATION AND HEADQUARTERS OF DlSTRICTS

S. No.

District

1.

Edst

2.

Ared (sq kml

Populatiun

Headquilrten;

'154

1,78,452

Gangtok

Nurth

4,22('

31,240

Mangan

3.

South

750

'1S,(>04

Nalllchi

4.

WClit

1,166

'1S,I('1

Gyalshing

TAMIL NADU

Capital

1,30,058 sq km

Popil/atioll

6,21,10,839

ChenJlili

Principii I Utn8uilge

Tamil

HISTORY AND GEOGRAPHY

Tamil Nadu has a hoary antiquity. Though early sangam classics throw
historical references, only from the Palla vas we pass to recorded history.
South India had remained under thl;' hegemony of the Cholas, the Cheras
and the Pandyas for centuries. Thc Pallavas held supremacy from about the
second quarter of the fourth century AD. They were the originators of the
famous Dravidian style of temple architecture. The last Palla va ruler was
Aparajita in whose reign the later Cholas under Vijayaldya and Aditya
asserted themselves by about the 10th century. At the end of the 11th century,
Tamil Nadu was ruled by several dynasties like the Chalukyas, Cholas and
Pandyas. In the two centuries that followed, the imperial Cholas gained
paramountacy over South India.
Muslims gradually strengthened their position, which led to the
establishment of the Bahamani Sultanate, by the middle of the 14th century.
At the same time, the Vijayanagar Kingdom quickly consolidated itself and
extended its sway over the whole of South India and at the close of the
century, Vijayanagar became the supreme power in South. However, it
crumbled at the battle of Talikota in 1564 to the confederate forces of the
Deccan Sultans.
Even during the period of the tumultous confusion that followed the
battle of Talikota, European commercial interest had appear~ as rivals in
the area of South India. The Portuguese, the Dutch, the french and the English
came in quick succession and established trading centres known as 'Factories'.
East India Company which had established their factory at Masulipatnam,
now in Andhra Pradesh, in 1611 gradually annexed territories by encouraging
enmity among the native rulers. Tamil Nadu was one of the first of British
settlements in India. The State is the successor to the old Madras Presid.-;ncy
which in 1901 covered the bulk of the southern peninsula. The composite
Madras State was later reorganised and the present Tamil Nadu was formed.

864

India 2005

Tamil Nadu is bounded on north by Andhra Pradesh and Kamataka

on west by Kerala, on east by the Bay of Bengal and on south by the Indian
Ocean.
AGRICULTURE
Agriculture is the major occupation in Tamil Nadu. Total cultivated area in
the State is 6.23 million hectares for the year 2001-02. The principal food crops
include paddy, millets and pulses. Commercial crops include sugarcane,
cotton, sunflower, coconut, cashew, chillies, gingelly and groundnut. Plantation
crops are tea, coffee, cardamom and rubber. Major forest produces are timber,
sandalwood, pulp wood and fuel wood. Tamil Nadu occupies a premier
position in the production and extensive application of bio-fertilizers. Efforts
are on to improve farming technologies so as to increase yields in the low
rainfall areas of the State. Annual foodgrains production exceeds ten million
tonnes with rice contributing an average eight million tonnes.
INDUSTRY AND MINERALS
Major Industries in the State are cotton, heavy commercial vehicles, auto
components, railway coaches, power pumps, leather tanning industries,
cement, sugar, paper, automobiles and safety matches.
Knowledge based industries like LT. and Biotechnology have become
the thrust area in the industrial scene in Tamil Nadu. TIOEl, a software
technology park, has been established in Tharamani, Chennai. Chennai has
currently about 50,000 software professionals employed in 900 IT companies.
IT sector exports totalled over one billion US dollars duimg 2002-2003.
Global auto majors Hyundai Motors, Ford, Hindustan Motors and
Mitsubishi have commenced production plants. Ashok Leyland and TAFE
have set up expansion plants in Chennai.
Main mineral wealth of the state is granite, lignite and limestone. The
state is an important exporter of tanned skin and leather goods, yam, tea,
coffee, spices, engineering goods, tobacco, handicrafts and black granite. The
strong engineering base consists of a network of nearly 18,095 units,
employing a skilled workforce of more than 3.09 lakh. Tamil Nadu contributes
to 60 per cent of the tannery industry in India. Ouring 2002-03, the total
exports from Tamil Nadu amounted to Rs 8,780 crore, of which leather exports ,
accounted for Rs 3,900 crore. Chennai Refinery Limited has given rise to
several petro-based units. Major chemical and fertilizer plants have been
established at Cuddalore and Tuticorin.
IRRIGATION
Important irrigation schemes and modernisation of existing Periyar Vaigai
System, Palar Basin System and Parambikulam-Aliyar System besides the
minor system in Vellar, Pennayar, Araniyar Amaravathi, Chithar basins
totalling, an extent of six lakh acres of existing ayacut in Tamil Nadu have
been benefited by implementing the 'System Improvement and Farmers

States and Union Territories

865

Turnover Projects' executed with assistance from World Bank. Nine irrigation
projects which were just started and going on a slow progress have been
speeded up with adequate fund and guidance for early completion. The major
irrigation system covering one-third of irrigated extent in Tamil Nadu, namely
tank irrigation system has been given due regard for development under
WRCP and 620 tanks maintained by Public Works Department falling under
Palar, Vaigai and Tamaraparani Basins have been taken up for rehabilitation
and improvement. This project is nearing completion to the maximum
satisfaction of the farmers. This State has become the pioneer State to
implement the system of 'River basin management' by an individual body
consisting of officials and farmers besides various representatives of the basin.
To start with, Basin Management Boards have been formed for Palar and
Tamaraparani basins. Participatory Irrigation Management has been given
utmost priority and an Act empowering the Farmers Associations to maintain
their system has been passed and is under implementation.
POWER

The totaJ installed capacity for electricity in the State is 8,249 MW. The
installed capacity of State Sector is 5,288 MW and that of Private Sector is
1,058 MW. Apart from this 1903 MW is available as share from Central Sector.
The maximum demand met as on 21 February 2003 is 6,960 MW and the
maximum. energy consumption achieved as on 21 February 2003 is 139.778
MU. The peak demand contemplated is 7,400 to 7,600 MW for 2003-04. The
demand of 8,890 MW is expected at the end of the Tenth Plan.
TRANSPORT

Roads
The length of roads network in Tamil Nadu is 1,50,095 kID of which surfaced
road is 60,901 kID.

Railways
The total length of railways is 4,181 kID and the main junctions being Chennai,
Madurai, TlIUchirapalli, Coimbatore and TIrunelveli.

Aviation
Chennai being the international airport in the southern region, is the main
centre of airline routes. Besides, there are airports at TIruchirapalli, Madurai,
Coimbatore and Salem.

Ports
Major ports in the State are Chennai and Tuticorin. There are seven other
minor ports including Cuddalore and Nagapattinam.
FESTIVAlS

Pongal is the harvest. festival celebrated by the farmers in January to worship

the sun, the earth and the cattle as thanks giving for a bounteous harvest.
Pongal festival is followed by the Jallikattu-Bull fight, Tamil Nadu style in

866

India 2005

some parts of sourthern Tamil Nadu. Alanganallur in Tamil Nadu is

internationally famous for Jallikattu - Bull fight. Cllitltirai festival, Madurai:
Madurai brings a spectacular re-enactment of the marriage of the Pandiyan
princess Meenakshi to Lord Sundareswarar. Adipperukku is a festival celebrated
on the 18th day of Tamil month, Adi, on the banks of rivers. It marks the
commencement of new farming operations. Dance Festival, Mamallapuram:
Set before an open air stage created 13 centuries ago the incredible monolithic
rock sculptures of the Palla vas, next to the sea 'in this ancient city of
Mamallapuram. Bharatha Natyam, Kuchipudi, Katltakali and Od;ss; presented
by the very best exponents of the art besides folk dances. Natyanjali Dance
Festival: The temple city of Chidambaram pays special tribute to Lord
Nataraja the 'Cosmic Dancer'. Mah.itmagam Festival: A holy festival that
brings pilgrims to Kumbakonam once in 12 years - the temple city that gets
its name from Kumbha - the divine pot. Summer festival: The summer festival
is held every year in the 'Queen of Hill Stations' the evergreen Ooty, the
exquisite Kodaikkanal or the salubrious heights of Yercaud. KantJ1Uri Festival:
A truly secular festival - where devotees flock to the shrine of saint
Quadirwali. One of the descendants of the Saint is chosen as a Peer or spiritual
leader and is honoured with offerings. On the tenth day of the festival, the
Saint's tomb is annointed with sandalwood and later the holy sandal past(>
is distributed to everyone. Velankanni Festival: Wondrous legends surround
the church, the most famous being that of the ship wrecked Portuguese sailors,
who in the 16th century, vowed to build a great shrine for the Virgin Mary,
for saving their lives in a terrible storm. The Velankanni festival attracts
thousands, clad in orange robes to the sacred spot where the ship landed.
Equally famous are the Virgin Mary's miraculous healing powers - earning
for the church the name 'Lourdes of the East'.
Navarathiri Festival : Literally, this means the festival of 'nine nights'
taking unique and different forms in different slates of India - all to propitiate
the goddess Sakthi, for power, wealth and knowledge. Kartlligc); Deepam :
Rows of glittering earthem lamps outside every home and joyous burst of
fire crackers mark Tamil Nadu's Festival of lights. Music Festival : In
December Chennai celebrates her priceless heritage of carnatic music and
dance to present a galaxy of star artistes, old and new.

TOURIST CENTRES
Chennai, Mamallapuram, Poompuhar, Kancheepuram, Kumbakonam,
Dharasuram, Chidambaram, Tiruvannamalai, Srirangam, Madurai,
Rameswaram, Tuunelveli, Kanniyakumari, Thanjavur, Velankanni, Nagoor,
Chithannavasal, Kazhugumalai (monument centres), Courtallam, Hogenakkal,
Papanasam, Suruli (water-falls), Ooty (Udhagamandalam), Kodaikanal, Yercaud,
Elagiri Kolli Hills (hill stations), Guindy (Chennai), Mudumalai, Annamalai,
Mundanthurai, Kalakad (wild life sanctuaries), Vedanthangal and Point
Calimere (bird sanctuaries), Arignar Anna Zoological Park, near Chennai, are
some of the places of tourist interest.

States and Union Territories

867

GOVERNMENT
GlII't'mOl'

Chit'f Millistcr
Spp<lker

5.5. nantala

Cllief S<>cf'{'tilry

: Lakshmi PrRntosh

: J. Jayalalithaa

Chief Justice

: K. Markandeya

: K. Kalimuthu

Jurisdiction (If

: Tamil Nadu and

Pondicherry

High Court

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

s.

No.

I.

District
Clwnnai

Ared (sq km)

Population

174

42,16,2611

Headquarters
Chennai

2.

Kdnchel'pllr.,m

4,433

28,69,920

Kallcheepuram

J.

Thirllvallur

3.424

27,38,866

Thirllvallur

,.

Vl'ilore

6,077

34,82,970

Vellore

liruvdnnam.lloli

6,191

21,111,853

Tiruvanllillnalai

6.

Cudd.llore

3,67H

22,80,530

C lIdda lore

7.

Villllpliram

7,217

29,43,917

Villllpuram

II.

5.1 II'I1l

5,220

29,92,754

Salem

9.

Nollll.lkkal

3,429

14,95,6(>1

Namakkal

4.

10.

Dharllldpuri

9,622

28,33,2.'\2

Dhamlilpuri

11

Pudukott.li

4,651

14,52,269

Puliukotlai

25,74,067

Erode

12.

Emdp

8,209

U.

Thp Nilgiris

2,,49

7,64,826

7,469

42,24,107

Coimbatore

23,88,831

liruchirappalli

14.

COimbatllre

15

linlchirappalli

16.

Karur

17.

Peramballlr

Udhdgamandalam

Karur

11.0%'

9,33,791
II ,Sl.029

Perambalur

22,OS,375

Thanj.\Vur

18.

Thanjavllr

3,397

19.

Nilgapattincll1l

2,716

14,87,055

Nagclpattinam

20

Thiruvarur

2,161

11,65,213

Thiruvarur

21.

Mctdurai

6,S6..'\

25,62,279

Madurai

10,94,724

Theni

22.

Theni

23.

Dindigul

6,058

19,18,%()

Din<1igul
Ralll"nalhapuram

N.

R.llllcln.lthclpllr"nl

4,232

11,83,..121

25.

SiVc'lg<lIl);cll

4,0116

11,50,753

Siyagilngai

26

VimdhllnaK'u'

4,2R8

17.51.548

Vinldhunagar

27

nnlllelvl'li

b.81tl

28,0l,194

TIrunel\'1'1i

28.

Thoothukudi

4,b21

15,65,74..1

Thoothukudi

KanniyakulIlc'lri

l,6BS

16,(,9,763

N;I~l!rl'llil

21).

Areil for 51. Nos. 15, 1(, cUld 17

"

868

India200s

TRIPURA
Area

10,491.69 sq km

Population

31,91,168

Cllpita}

Agartala

Principal LangWiges

Bengali and Kokborak

HISTORY AND GEOGRAPHY

Tripura has a long historic past, its unique tribal culture and a fascinating
folklore. The history of Tripura can be understood from 'RajmaJa' chronicles
of king Tripura and writings of other Mohammedan historians. There are
references of Tripura even in Mahabharata and Puranas. According to
'RajmaJa', the rulers were known by the surname 'Fa' meaning 'father'. There
is a reference to rulers of Bengal helping Tripura kings in the 14th century.
Kings of Tripura had to face frequent Mughal invasions with varying
successes. They defeated the Mohammedan Sultans of Bengal in several
battles. Nineteenth century marked the beginning of the modem era in Tripura
when king Maharaja Birchandra Kishore Manikya Bahadur modelled his
administrative set-up on the British India pattern and brought in various
reforms. His successors ruled Tripura till 15 October 1949 when it merged
with the Indian Union. Initially, a part 'C' state, it became a centrally
administered territory with the re-organisation of states in 1956. In 1972,
Tripura attained the status of a full-fledged state. Tripura is strategically
situated between the river valleys of Myanmar and Bangladesh. Encircled
almost on three sides by Bangladesh, it is linked with Assam and Mizoram
in the North-East.
IRRIGATION AND POWER
Geographical area of the Tripura State is 10,49,169 hectare. It is assessed that
about 2,80,000 hectare of land is cultivable. As on 31 March 2004 an area of
77,722 hectare of land has been brought under assured irrigation by providing
lift irrigation, deep tube well, diversions, partly by medium irrigation, shallow
tube wells and pump sets. This is about 27.75 per cent of the cultivable land
in the state. 1,178 L.I. Schemes, 160 deep tube wells, 25 diversion schemes
have been completed and 3 medium irrigation schemes, namely, (i) Gumti
(ii) Khowai and (iii) Manu are providing irrigation water to the part portion
of the command areas as canal system has not been completed.
The Gas Based Combined Cycle Thermal Project at Monarchak under
Sonamura Sub-Division, West Tripura District was initially planned for 500
MW capacity by NEEPCO Ltd. Subsequently, the project has
downsized
to 280 MW due to revision in gas availability from ONGeL. However, the
capacity will be enhanced to SOO MW on receipt of required quantum of gas.
At present the generation in the state is 70 MW against an installed capacity
of 105 MW. The present peak demand of the state is 163 MW. The Government
of Tripura has committed to purchase 70-80 MW from the 280 MW of
Monarchak Project of NEEPCO. Sanction for installation of 1 x 21 MW G.T.
project at Rokhia, West Tripura for Rs 80.94 ClOre has been obtained from
Government of India and order placed to MIs BHEL for supply and erection
of the same. Another scheme of 2 x 21 MW G.T. Project at Baramura, West

been

States and Union Territories

869

Tripura was submitted in June 2002. The Planning Commission agreed for
inclusion of 1 x 21 MW G. T. Set at Baramura, West Tripura in Tenth Plan
of NEC. As on 31 March 2004, 57,450 families below poverty line category
are connected with electricity under kutir jyoti scheme.
TRANSPORT

Roads
The totallength of roads in Tripura is 15,227 km of which major district roads
constitute 454 kIn and other district roads are 1,538 km.

Railways
The total length of railway lines within the State is 64 km. It has been extended
up to Manughat. Work of extension of railway line up to Agartala are in
progress.

Aviation
The main airport Agartala is connected with Kolkata, Guwahati and Delhi.
There are airports at Kailashahar and Kamalpur though they are not
functioning at present.

TOURISM
West-south Tripura Tourism Circuit: (i) Agartala (ii) Kamalsagar
(ill) Sepahijala (iv) Neermahal (v) Udaipur (vi) Pilak (vii) Mahamuni

West-North Tripura Tourism Circuit: (i) Agartala (ii) Dumboor Lake

(iii) Unokuti (iv) Jampuri Hill
FESTIVALS

Tourism Festival: (i) Orange and tourism Festival-Vangmun (ii) Unokuti

Tourism Festival (iii) Neermahal Tourism Festival (iv) Pilak Tourism Festival.

Cultural Religious Festival: (i) Makar Sankranti at Thirthamukh and Unokoti

(ii) HoU (iii) Ashokashtami at Unokoti, Brahmakunda (Mohanpur) (iv) Rash
(v) BengaU New Year (vi) Garia, Dhamail, Biju and Hojgiri Festival, (vii) Boat
Race and Manasa Mangal Festival (viii) Ker and Khachi Festival
(ix) Durgapuja (x) Diwali (xi) Christmas at Jampuri Hills (xii) Budha Pumima
(xiii) Rabindra-Najrul-Sukanta Utsav (xiv) Street Drama Festival
(xv) Cl\ongpreng Utsav (xvi) J<humpuli Festival (xvii) Wah Festival (xviii) Folk
Cultural Festival (Loko Utsav) (xix) Murasing Festival (xx) Sanghati Festival
(xxi) Baishakhi Festival (Sabroom), etc are celebrated.

GOVERNMENT
Gowmor

: Oinesh Nandan Sahaya

ClIJeI Mini8cer : MaRik Sarkar

: Remendra Debnath

Chief Secmary

: R.K. Mathur

/urilldicdon of

: Falls under

Hish

Court

Guwahati High Court

Agartala Bench

870

Inrlia 2005
AREA, POPULATION AND HEADQUARTERS OF DISTRICTS
Area (sq km)

S. No.

District

1.

North Tripura

2,820.63

5,l)O,655

Kailashahar

2.

South Tripllra

2,151.77

7,62,565

Udaipur

3.

WC!lt Tripllra

2,996.82

15,30,531

AgiITtala

4.

Dhalai

2,552.47

3,07,417

AmbasSil.

Population

Headquartl'rs

UTTARANCHAL
Arpi!

53,484 sq kIn

Populi! lion

84,79,562

Capitill

Dehradun

Principal LIIlIglldges

liindi, Garhwali, KUIll.1oni

HISTORY AND GECX;RAPHY

Uttaranchal finds mention in the ancient Hindu scriptures as Kcdarkhand,
Manaskhand and Himavant. The Kushanas, Kunindas, Kanishka, Samudra
Gupta, the Pauravas, Katuris, Palas, the Chandras and Pawaras and the British
have ruled it in turns. It is often called the Land of the Gods (Dt'v Bhoomi)
because of its various holy places and abundant shrines. Tlw hilly regions
of Uttaranchal offer unspoilt landscapes to the tourist-pilgrim.
The present State of UUaranchal was earlier a part of the United Province
of Agra and A wadh which came into existence in 1902. In 1935, th(' name
of the State was shortened to the United Province. In January 1950, the United
Province was renamed as Uttar Pradesh and Uttaranchal remained a part of
Uttar Pradesh before it came into being on 9 November 2000, th(' 27th State
of India.
Located in the foothills of the Himalayas, the State has international
boundaries with China (Tibet) in the north and Nepal in the east. On its northwest lies Himachal Pradesh while on the south is Uttar Pradesh.
AGRICULTURE
About 90 per cent of the population of Uttaranchal depends on agriculture.
The total cultivated area in the State is 7,84,117 hectares.
INDUSTRY AND MINERALSThe State is rich in mineral deposits like limestone, marble, rock phosphate,
dolomite, magnesite, copper greyphyte, gypsum, etc. The number of smallscale industries is 17,534 providing employment to 59,659 persons. 191 heavy
industries with an investment of Rs 2,694.66 crore employ 50,802 persons.
Most of the industries are forest-based. There is a total of 54,047 handicraft
units in the state.

871

States and Union Territories

IRRlGAnON AND ENERGY

Agricultural land under irrigation is 5,51,054 hectares. The State has excelJe~t
potential for hydropower generation. There are a number of hydro-elec~r1~
projects on the rivers Yamuna, Bhagirathi, Bhilangana, Alaknanda, Mandakml,
Saryu Gauri, Kosi and Kali generating electricity. Out of 15,667 villages, 12,973
villages have been electrified.
TRANSPORT
Roads

The total length of metalled roads in Uttaranchal is 19,543 km. The length
of PWD roads is 17,545 km. The length of roads built by local bodies is 1,998
km.
Railways

The main railway stations are Dehradun, Hardwar, Roorkee, Kotdwar,

Kashipur, Udhamsingh Nagar, Haldwani, Ramnagar and Kathgodam.
Aviation

There are air strips at Jolly Grant (Dehradun), and Pantnagar (Udham Singh
Nagar). Air strips at Naini-Seni (pithoragarh), Gauchar (Chamoli) and
Chinyalisaur (Uttarkashi) are under construction. From this year Pawan Hans
Ltd., has started helicopter service from Rudraprayag to Kedarnath for
pilgrims.
FESTIVALS
The world-famous Kumbh Melal Ardh Kumbh Mdii is held at Hardwar every
twelfth/sixth year interval. Other prominent fairs/festivals are: Devidhura
Mela (Champawat), Purnagiri Mela (Champawat), Nanda Devi Mela (AImora),
Gauchar Mela (Chamoli), Baisakhi (Uttarkashi), Magha Mela (Uttarkashi),
Uttaraini Mela (Bageshwar), Vishu Mela (jaunsar Vavar), Peerane-Kaliyar
(Roorkee), and Nanda Devi Raj Jat Yatra held every twelfth year.
TOURIST CENTRES
Prominent places of pilgrimage/tourist interests are Gangotri, Yamunotri.
Badrinath, Kedamath, Hardwar, Rishikesh, Hemkund Sahib, Nanakmatta, etc.
Kailash Mansarovar Yatra can be performed through Kumaon region. The
world-famous Valley of Flowers, Pindari Glacier, Roop Kund, Dayara Bugyal,
Auli, and hill stations like Muss~rie, Dehradun, Chakrata, Nainital, Ranikhet,
Bageshwar, Brumta}, Kausani are the important places of tourist interest.
GOVE~ENT

Secretary

: Dr. R.5. ToUa

C'.ovt>nlor

Sudharshatl Aggarwal

Chief

Chit>i Minister

N.D. TIwari

Chief Justice

: V.S. Sirpurkar

Speaker

Yllshpal Arya

Jurilldidion of
High Court

: Uttarfttlchal

872

India 2005
AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S. No.

District

1.

Uttarkashi

8,016

2,94,179

Uttarkashi

2.

Chamoli

7,520

3,69,198

Gopeshwar

3.

Rudra Prayag

2,439

2,27,461

Rudra Prayag

4.

Tehri Garhwal

3,796

6,()4,608

New Tehri

5.

Dehradun

3,()88

12,79,083

Dehradun

6.

Garhwal

5,230

6,96,851

Pauri

7.

Pithoragarh

7,169

4,62,149

Pithoragarh

8.

Champawat

2,004

2,24,461

Champawat

9.

Almora

3,689

6,30,446

Almora

10.

Bageshwar

1,696

2,49,453

Bageshwar

U.

Nainilal

3,422

7,62,912

Nainital

12.

Udhamsingh Nagar

3,()55

12,34,548

Udhamsingh Nagar
(Rudrapur)

13.

Hardwar

2,360

14,44,213

Hardwar

Area (sq km)

Population

Headquarters

UITAR PRADESH.
sq kin

Area

2,38,566

Capital

Lucltnow

Population

16,60,52,859

Principal Languages

Hindi and Urdu

IUSTORY AND GEOGRAPHY

The history of Uttar Pradesh is very ancient and -4nteresting. It is recognised
in the later Vedic Age as Brahmarshi Desha or Madhya Desha. Many great
sages of the Vedic times like Bharadwaja, Gautam, Yagyavalkya, Vasishta,
Vishwamitra and Valmiki flourished in this state. Several sacred books of the
Aryans were also composed here. Two great epics of India, Ramayana and
Mahabharata, appear to have been inspired by Uttar Pradesh.
In the sixth century Be Uttar Pradesh was associated with two new
religions - Jainism and Buddhism. It was at Samath that Buddha preached his
first sermon and laid the foundations of his order and it was in Kushinagar
in Uttar Pradesh where Buddha breathed his last. Several centres in Uttar
Pradesh like Ayodhya, Prayag, Varanasi and Mathura became reputed centres
of leaming. In the medieval period Uttar Pradesh passed under Muslim rule
and led the way to new synthesis of Hindu and Islamic cultures. Ramananda
and his Muslim disciple kabir, Tulsida., Surdas and many other intellectuals
contributed to the growth of Hindi and other languages.

States and Union Territories

873

Uttar- Pradesh preserved its intellectual excellency even under the British
administration. The British combined Agra and Oudh into one province and
called it United Provinces of Agra and Oudh. The name was shortened to
the United Provinces in 1935. In January 1950 the United Provinces was
renamed as Uttar Pradesh.
The State is bounded by Uttaranchal and Himachal Pradesh in the north,
Haryana in the west, Madhya Pradesh in the south and Bihar in the east.
Uttar Pradesh can be divided into two distinct regions (i) Southern hills and
(U) Gangetic plain.
AGRICULTURE

Agriculture is the main occupation of 73 per cent of the population of the

state. The net cultivated area in the state is 168.19 lakh hectares. Last year
in 2001-02 the state produced 254.98 lakh metric tonnes of wheat, 128.56 lakh
metric tonnes of rice, 23.76 lakh metric tonnes of pulses and 7.25 lakh metric
tonnes of oilseeds and 1,179.82 lakh tonnes sugar cane. Total foodgrains
production during 2001-2002 was 441.35 lakh metric tonnes.
INDUSTRY AND MINERALS
By the end of March 1998, there were 2,616 medium and large industrial
undertakings with an investment of Rs 41,266.20 crore and employment
opportunities for 7,38,582 persons. Besides, there were 4,01,372 small-scale
industrial units involving a total investment of Rs 4,028 crore and employment
opportunities for 15,52,000 persons. During the year 2001-02 about 52.60 .akh
tonnes of sugar was produced in the State. There were 68 textile units and
32 automobile factories with an invesment of Rs 5,740 crore provided jobs
to 20,280 persons.
It is planned to develop 102 sectors of New Okhla Industrial Development
Authority (NOIDA) by the year 2011. The authority includes industrial sectors,
housing sectors, group housing sectors, residential buildings, commercial
assets and institutional sectors. Steps have been taken to develop other
industrial areas in the State on the pattern of Noida and Greater Noida. A
Software TechnolOgy Park has been set up in I<anpur while five more Software
Parks are proposed to be set up.

Under the public sector, mining of limestone, magnesite, coal, rock

phosphate, dolomite and silicon-sand is carried out. The bulk production of
minor and some of the major minerals like limestone, silica-sand, magnesite,
pyrophylUte and diaspore is mostly with the private sector. Important mineral
based industries include large cement plants in Sonebhadra.

DUUGAnON AND POWER

UP Power Corporation, UP State Power Generation and UP Hydel Power
Corporation had been formed by reorganising UP State Electricity Board on

874

India 2005

14 January 2000. During 2002-03 an expenditure of Rs 2,094.5256 crorC' was

made to raise the irrigation potenliid to a level of 267.99 lakh he('lar(.'~.
At the time of inception the total installed capacity of UPSEB, including
thermal and hydro, was 2,635 MW which has now be<'n raised to 5,414 MW
(derated 5,885.75 MW).
TRANSPORT
I~oilds

The total road length in the State is J ,04, B7 km. This includes 3,912 km of
national highways, 9,098 km of state highways, 87,248 km of important district
roads, 91,127 km of other district roads and 72,931 km of rural roads.
Railways
Lucknow is the main junction of the nortl1l~rn network. OthN important
railway junctions are Agra, Kanpur, Allahabad, Mughalsarai, Jhansi,
Moradabad, Varanasi, Tundla, Gorakhpur, Gonda, J~aizabad, Bareilly and
Sitapur.
AvjMiOIl

There are airports at Lucknow, Kanpur, Varanasi, Allahabad, Agra, Jhimsi,

Barei1ly, Hindon (Ghaziabad), Gorakhpur, Sarsawa (Saharanpur) and Fursatganj
(Rae-BareJi).
FESTIVALS
The biggest congregation, perhaps of the world, Kumbha Mela is held at
Allahabad every twelfth year and Ardb Kumbh Mela every sixth year. Magh
Mda is also held at Allahabad in January when the people come in huge
number to have a dip in the holy Sangam. Among other fairs is the fortnight
long Jh001.1 fair of Mathura, Vrindavan and Ayodhya, when 001s are placed
in gold and silver jhooJas or cradles. A dip in the Ganga on Karlik Poornamasi
is supposed to be the holiest and there are big congregations at
Garhmukteshwar, Soran, Rajghat, Kakora, Bithur, J<anpur, Allahabad, Varanasi
and Ayodhya. A famous cattle fair is held at Bateswar in Agra district. Dewa
in Barabanki district has became famous because of the Muslim saint Waris
Ali Shah.
TOURIST CENTRES
Uttar Pradesh has varied attractions for all kinds of tourists. Besides ancient
places of pilgrimage like Varanasi, Vindhyachal, Ayodhya, Chitrakoot, Prayag,
Naimisharanya, Mathura, Vrindavan, Dewa Sharit'f, Dargah of Sheikh Saleem
Chishti in Fatehpur Sikri, Sarnath, Shravasti, Kushinagar, Sankisa, J<ampil,
Piprahwa and Kaushambi, places Hk(.' Agra, Ayodhya, Samath, Varanasi,

States and Union Territories

875

Lucknow. Jhansi. Gorakhpur. }aunpur, Kannauj, Mahoba, Devgarh, Bithur,

and Vindhyachal have rich treasures of Hindu and Islamic architecture and
culture.

GOVERNMENT
C.on!ft1(lf'

T. V. RAjeshwar RAo

Chief Secretll'Y

V.K. Mitta)

ChieI Minislei'

Mulayam Singh Yadav

Chief Justice

Tarun Chatterjee

SpNhor

Matha Pnlsad Pandey

Jurisdiction of
High COllrt

Utlllr

Prllct('~h

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

District

Areil (sq km)

Population

Hpadquilrtl'rs

Agra

4,027

36,11,950

Agra

Aligarh

3,650

29,90,388

Aligarh

Allahabad

5,482

49,69,774

Allahabad

Azamguh

4,054

39,39,509

Azamgarh

Bahraich

4,420

23,84,241

Bahraich

8aIia

2,981

27,52.412

Baliil

Banda

4,460

15,00,253

Bilnda

4,402

26,73,394

Barabanki

HamBy

4,120

30,16,8119

Barcilly

Basti

2,688

20,68,922

Basli

Bijnon!

4,561

31,30,586

Bijllore

Dudaun

5,168

30,69,245

Budaun

BuJandahahar

4,352

29,23,290

Bulandshilhar

Deoria

2,538

27,30,376

Deoria

Elab

4,446

27,88,270

Etah

EIawah

2,311

13,400,31

Etawah

F......

2,341

20,88,317

Faizabad

AmbedbrnIpr

2,350

20,26,262

Akbarpur

Falehpur

4.152

23,05,1147

Fatt'hpur

Fal'nlkhllbld

2,181

15,77,345

Farnlkhabad

GhazIaI.d

1,148

32,90,557

Ghaziabad

Gautam Buddha Nagar

U42

12,00,607

Ntlida

Ghuipur

3,377

30,49,337

Ghazipur

Gonda

4,003

27,65,953

GondA

Gorakhpur

3,321

37,84,432

Gorakhpur

4,282

1G.42,374

HAmirpur

5,986

33,97,414

Hardoi

4,565

14,55,859

Oral

Harabanki

HaaUrpmHmdoi

........

876

India 2005

Jaunpur

4,038

39,11,305

Jaunpur

Jhansi
Kanpur (Dehat)

5,024

17,46,715

Ihansi

3,021

15,83,913

Akbarpur

3,155

41,68,148

KllTIpur

Kanpllr (City)
Lakhimpur Kheri

7,680

32,00,880

Kheri

Llllitpur

5,039

9,77,447

Llllitpur

Lucknow

2,528

36,82,131

Lucknow

Mainpllri

2,760

15,92,875

Mainpuri

Mathllra

3,340

20,73,934

Mathurll

Meerut

2,590

30,05,961

Meerut

Mirzapur

4,521

37,49,685

Mirzapur

Muradabad

3,718

37,49,630

Muradabad

Muzaffllmllgar

4,008

35,41,952

Muzaff"magar

Pilibhit

3,499

16,43,788

Pilibhit

Pratapgarh

3,717

27,27,156

Pratapgarh

28,72,204

Rai 13areli

Rai Sareli

4,609

Rampur

2,367

19,19,230

Rampur

Jyotiba Phule Nagllr

2,249

14,99,193

)yotiba Phule Nilgar

Saharanpur

3,689

28,91,222

Saharllnpur

Shahjahanpur

4,575

25,49,103

Shahjahllnpur

Sitapur

5,74.3

36,16,510

Sitapur

Unnao

4,558

27,00,504

Unnao

Sultanpur

4,436

31,90,926

Sultanpur

Varanasi

1,535

31.39,454

Varanasi

Mau

1,713

18,52,129

Mau

Siddharth Nagar

2,895

20,39,967

Nllvgarh

Firozabad

2,361

20,45,737

Firozabad

Sonbhadra

6,788

14,63,467

Robertsganj

Maharajganj

2,952

21,67,041

Maharajpnj

St. ~avi Das Nagar

1,015

13,52,056

Bhlldohi

Mahoba

2,884

70,88,31

Mah<tltl

Hathras

1,814

13,33,372

Hathl'al

Kaushambi

1,780

12,94,937

Kaushambi

Kushinagar

2,906

28,91,933

,'Padafauna

Chandauli

2,541

16,41,394

Cundaull

Balrampur

3,394

16,84,5f8

Balrampur

Shrllvasti

2,458

11,75,324

Shravasti

Chitrakoot

3,164

11,64,602

Chltrakoot

Bagpat

1,321

11,64,802

Bagpat

Kannauj

2,()93

13,84,328

KaMauj

Orraiya

2,015

11,19,496

Orraiya

Sant Kabir Nagar

1,646

14,21,936

KhaUlabad

States and Union. Territories

877

WEST BENGAL
An!a

88,752 sq kIn

Population

8,02,21,171

CapitdJ:

Kolkata

PrindpaJ Language

Bengali

HISTORY AND GEOGRAPHY

Bengal finds a coveted place even in pre-historic times. At the time of

Alexander's invasion a powerful kingdom called Gangaridai ruled over
Bengal. Ascendancy of the Guptas and the Mauryas had somewhat little effect
on Bengal. Later Sasanka became King of Bengal and is said to have played
an important role in north-eastern India in the early half of the seventh
century. He was succeeded by Gopala, who founded the Pala dynasty which
ruled for centuries and had created a huge empire. The Palas were followed
by the Sena dynasty which was ended by Muslim rulers from Delhi. Bengal
was ruled by various Muslim rulers and governors till the Mughal period
in sixteenth century.
After the Mughals, history of modem Bengal begins with the advent of
European and English trading companies. Battle of Plassey in 1757 changed
the course of history when the English first gained a strong foothold in Bengal
and India. In 1905 it was partitioned to achieve some political returns but
people's growing movement under the auspices of Congress led to the reunion
in 1911. This triggered off hectic movement for freedom which culminated
with Independence in 1947, and partition.
After 1947, the merger of native settlement began which ended with its
final reorganisation in 1956 (as per Recommendations of the States
Reorganisation Act, 1956) when some Bengali speaking areas of a
neighbouring state were transferred to West Bengal.
The land frontiers of the State touch Bangladesh in the east and is
separated from Nepal in the west, Bhutan lies in the north-east, while Sikkim
is on the north. On the west are the states of Bihar, Jharkhand, while in the
south lies Orissa, and the Bay of Bengal washing its southern frontiers.
AGRICULTURE

Agriculture plays a pivotal role .in the State's income and nearly three out
01 every lour persons are directly or indirectly involved in agriculture. The
total food production in the State in 2002-03, was 15,522.6 thousand tonnes.
During 2002-03, the production of rice was 14,389.2 thousand tonnes, of wheat
887.4 thousand tonnes and of pulses 167.9 thousand tonnes respectively. The
production of oilseeds during the same period was 475.8 thousand tonnes and
of potato 6,902.5 thousand tonnes. The production of jute was 8,505 thousand
'
bales in 2001-02.

878

India 2005

INDUSTRY
In 2003 total number of approved investment proposals was 485 involving
an investment of Rs 6,773.02 crore against 337 approved investment proposals
entailing an investment of Rs 4,659.88 crore in 2002.
The actual number of industrial projects implemented in the State in 2003
was 137 with a total investment of Rs 2,336.84 erore.
As Oil 31 December 2003, 143 industrial projects with a total investment
of Rs 5,393.58 crore were under implementation. These include 91 projects
in the iron and steel industries and 52 other projects. Out of the total of 91
projects in the iron and steel industries, 47 projects with a total invc..'Stment
of Rs 340.79 crore were projects each with an investment of less than Rs 25
crore. The remaining 44 iron and steel projects with a total investment of
Rs 3,490.35 croce were mega projects with investment in each pro;ect above
Rs 25 crore. Apart from these projects under implementation, there wen' ninc
important industrial projects at an ddvanced stage of planning.
Under the Rs 1,600 crorc Kolkata Mega City programme till the end of
September 2003, L18 schemes in different Sl'ctors like water supply, drain<lg<'
and sanitation, trclffic and trclllsportation and housing and drca development
have been taken lip at an estimated cost of Rs 1,074.32 crure. The tOldt
expenditure till September 2003 has been Rs 591.99 crore and sixty-nine
schemes have been completed.
Under Basic Minimum Services Programme (BMSP), 41 local bodies
within KMA are implementing a large number of schemes. KMDA is also
executing a number of important road projt.'cb;. To improve the co"l\(.'\.ii\ity
to the industrial township in Kalyani, the Barrackpore-Oum DUlll Expre....sway
is cxpt.>cted to Ix> completed by the end of 2003-2004.
West Bengal Industrial Infrastructure Development Corporabon (WBUDC)
is entrusted with tIll' development of the infrastructure in the State. TIw
WBIIDC has constructed 12 growth centres in various areas of the State and
so far, 350 industrial units have been allotted land in these ccnln's. W8[(OC
is III the process of setting up 6 more growth centres.
The State is developing industriai estates (known as' Parks) with
infrastructure facilities appropriate for specific industrk.-s. TIle Calcutta
Leather Complex has become operational. The State Government has catatysed
the involvement of foreign leather manufacturers in improving the pnktuction
and designing capabilities of leather units at the complex. 'file Q,om and
Jewelry Park, 'Manikanchan' is operational and the construction of the To)'
Park in Salt Lake is nearing completion.
Silpa Bandhu the one window facility operating Wlder WBUDC provides
assistance to entrepreneurs in all matters requiring clearance from different
departments of the State and Central Governments.
'

States and Union Territorit's

879

The IT department of the State Government and WEBEL arc the two
agencies involved in the promotion of electronics, IT and related industries
in the State. The growth of IT sector in the State has been arOlll i 90 per cent
per annum in terms of export revenue between 1996 and 2003. The State's
target is to rank among the first top 3 States in India by 2010 and contribute
15-20 pl'r cent of the of the country's total IT revenue. In 2003-04, there were
293 regist('red companies in Software Technology Park at Kolkata employing
9,000 persons.
The growth in investment proposals in food processing industries in the
State has picked lip significantly over the last three years. While in 2001-02,
the State Government approved 61 investment proposals with an investment
of Rs 154.55 crore, in 2002-03, 118 proposals with an investment of Rs 212.22
crore were approved and. in 2003-04, up to 31 December 20m, 115 proposals
with an investment of Rs 257 crore were approved.
IRRIGATION AND POWER
Irrigation potential created in the State through major and medium irrigation
projects in 2002-03 was provisionally estimated at 1,582.95 thousand hectan.'''',
In 2003-04, it is expected that additional irrigation potential of 30 thousand
Iwctarl's would be created through major and medium irrigation proj(cts. Til('
two major irrigation projects under implementation in the State are thl~ Tecsta
Barragt' Projects and the Subarnarekha Barrage Project. Till the end of June
2003 irrigation potential of 1.24 lakh hectares were created under the Teesta
8arrage Project. The Subarnarekha Barrage Project seeks to create irrigation
potential of 1,14,198 hectares. Altogether 23 medium irrigation schemes have
been completed. Work of 9 more medium irrigation schemes is continuing.
In 2003-04 there were 83 ongoing minor irrigation schemes with an irrigation
potential of 6,600 hectares being implemented by the State Government.
Power in West Bengal is currently generated by the West Bengal POWN
Development Corporation Limitl'd, West Bengal State Electricity Board,
Calcutta Electricity Supply Corporation, Ourgapur Project Limited, Dishergarh
Power Supply Corporation, etc. Total generation of power produced by the
State agencies was 23,507 MU in 2003-04. The total number of moujas
electrified during 2003-04 is 31,859 and the total number of pump sets
energised is 1,12,501.
TRANSPORT

Roads
The length of roads as on 31 March 1999 was 90,184 km including 1,715 km
national highways. The length of roads under state highways is 3,354 km
under PWD 12,288 km and that of the district roads are 41,278 km
respectively.

Railways
The total length of railway route in the state was 3,696.86 km in 2002-03.

880

India 2005

Howrah, Asansol, Sealdah, Bandel, Bardhaman, Kharagpur and New Jalpaiguri

are the main junctions.

GOVERNMENT
Governor

: Viren

1.

Shah

Cruel Justice

: Ajay Nath Roy (Acting)

Chief Minister : Buddhadeb Bhattacharjee

Chief Secretary : Ashok Gupta

Speaker

Jurisdiction of : West Bengal and

High Court
Andaman and Nicobar Islands

: Hasim Abdul Halim

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No.

District

1.

Bankura

6,882

31,91,822

Bankura

2.

Bardhaman

7,024

69,19,698

Bardhaman

3.

Birbhum

4,545

30,12,546

Suri

4.

Kolkata

185

45,80,544

Kolkatll

5.

Darjeeling

3,149

16,05,900

Darjeeling

6.

Howrah

1,467

42,74,010

Howrah

7.

Hooghly

3,149

50,40,047

Chinsurah

8.

Jalpaiguri

6,227

34,03,204

Jalpaiguri

9.

Coochbehar

3,387

24,78,280

Coochbehar

10.

Maida

3,733

32,90,160

English Bazar

11.

Medlnipur

14,081

%,38,473

Medinipur

12.

Murshidabad

5,324

58,63,717

Berhampo"

13.

Nadia

3,927

46,03,756

Krishnagar

14.

North 24 Parganas

4,094

89,30;1.95

Bar...t

15.

South 24 Parsanas

9,660

69,09,015

Alipore

16.

Purulia

6,2S9

25,35,233

Purulia

17.

Uttar Dinajpur

3,140

24,41,824

Raigunj

18.

Dakshin Dinajpur

2,219

15,02,647

Balurghat

Area (sq km)

Population

Headquarters

Note : The district Medinipur has been bifurcated on 1 January 2002 into Pwba and Puchim
Medinipur (the population figutel of cetlIIua 2001 are yet to be incorporated).

States and Union Territories

881

ANDAMAN AND NICOBAR ISLANDS

Area

8.249 sq km

Population

: 3,.';6.152 (2001 census)

Capitill

Port Blair

Principal Languages

: Hindi. Nicobaresc. Bengali, Tamil,

Malayalam, Telugu

HISTORY AND GEOGRAPHY

The Andaman and Nicobar Islands, an Union Territory, are situated between
~o and 14 Nort~ L~titude and 92 and 94 East Longitude. The group of 572
Islands/ Islets hes m the Bay of Bengal, 193 km from Cape Negaris in Burma
(Myanmar), 1,255 kIn from Kolkata and 1,190 km from Chennai. Two principal
groups of islets are Ritchie's Archipelago and Labyrinth Islands. The Nicobar
Islands are situated to the south of Andamans, 121 km from Little Andaman
island. There are 38 inhabited islands, including 25 in the Andaman district
and 13 in the Nicobar district.
The original inhabitants of the islands lived in the forests on hunting
and fishing. There are four Negrito tribes, viz., the Great Andamanese, Onge,
Jarawa and Sentinalese in the Andaman group of islands and two Mongoloid
tribes, viz., Nicobarese and Shompens in the Nicobar group of islands.
Sentinalese are still hostile. They are still keeping a separate entity and have
not yet learnt the concept of covering their bodies.
The modem history of the Andaman and Nicobar Islands begins with
the establishment of a settlement by East India Company in 1789. However,
in 1796 this settlement was abandoned. Following the first war of Indian
Independence in 1857, the British India Government founded the penal
settlement in these islands in 1858, primarily known as Kalilpani, for the
deportation of freedom fighters from the mainland India, which continued
till the second World War during the Second World War, the Japanese forces
occupied the Andaman and Nicobar Islands in 1942. Further following the
surrender of the Japanese forces in the Second World War, the British India
Government reoccupied these islands in 1945 and continued their administration
till the Independence of the country in 1947.
AGRICULTURE
A total of 51,694.35 hectares of land is used for agriculture purpose. Paddy,
the main food crop, is mostly cultivated in Andaman group of islands,
whereas Coconut and Arecanut are the cash crops of Nicobar group of islands.
Field crops, namely, pulses, oilseeds and vegetables are grown, followed by
paddy during Rabi season. Different kinds of fruits such as mango, sapota,
orange, banana, papaya, pineapple and root crops are grown 'on hilly land
owned by farmers. Spices, viz., pepper, dove, nutmeg, and cirmamon are
grown under multitier cropping system. Rubber, red oil, palm and cashew
are grown on a limited scale in these islands.

FORESTS
Recorded forest 7,171 sq km of the total geographical area of the islands. Many
types of forests are found in the islands, such as tropical wet evergreen,

882

India 2005

tropical semi evergreen, moist deciduous, littoral, mangrove and swamp

forests. A large variety of timbers are found in the Andaman group of islands.
The most valuable timbers are padauk and gurjan. These species are not found
in Nicobar.
WILDLIFE
There are 96 Wildlife Sanctuaries, 9 National Parks and 1 Biosphere Reserve
in these Islands. Mammals - Out of 55 terrestrial and 7 Marine mammal
species reported so far, 32 species are endemic. Birds - As many as 246 species
and sub species of birds are reported to inhabit these Islands and of these
99 species and sub species are endemic. Raptiles - There are 76 terrestrial
reptiles of these 24 species are endemic. Marine Line - Islands harbour more
than 1,200 species of fish, 350 species of echinoderms, 1,000 species of moluses and many more lower forms of life. Among vertebrates dugongs,
dolphins, whales, salt water crocodiles, sea turtles, sea snakes, etc., are
common. Coral and Coral reefs - So far 179 species of corals belonging to
61 genera have been repo.rted. Reefs are mostly fringing type on eastern coast
and barrier type on the western coast.

INDUSTRY
There are 1,647 registered Small-Scale Village and Handicrafts Units as on 31
March 2004. Two units are 100 per cent export oriented unts in the line of
Fish/Prawn processing activity. Apart from this, there are shell and wood
based handicraft units. SSI units are engaged in the production of paints and
varnishes, mini flour mills, soft drinks and beverages, steel furniture's and
fixures, readymade garments, steel gate grills and structures. Small-Scale
handicraft units are also engaged in shell crafts, bakery products, rice milling,
furniture making, etc. The Andaman and Nicobar Islands Integrated
Development Corporation in the public sector has spread its wings in the field
of Tourism, Fisheries, Industries and Industrial Financing and functions as
authorised agents for Alliance Air/Jet Airways.
TRANSPORT

The islands are accessible both by Air and Sea. Alliance Air is operating
between Kolkata and Port Blair as well as Chennai and Port Blair only. Jet
Airways operates between Chennai and Port Blair only. The Directorate of
Shipping Services runs shipping services connecting Port Blair with I<olkata,
Visakhapatnam and Chennai. It also maintains a regular inter-island, foreshore and harbour ferry services to cater to the needs of inter-island
commuters.
The Motor Transport Department of A &: N Administration has extended
its service to 10 (ten) Islands besides Port Blair in this Union Territory. The
span of services extends from DigUpur in the North to Campbell Bay in the
South. The State Transport Service is operating around 76 buses on 6S routes.
The Administration has given route permits to private bus operators to ensure
proper connectivity of places. The Andaman Trunk Road Services COMects
Port Blair with Rangat, Mayabunder and Diglipur.

States and Union Territories

883

TOURISM

Andaman and Nicobar Islands have been recognised as an eco-friendly

tourist's destination. As a tourist paradise, these islands have something very
special to offer like Cellular Jail, Ross Island and Viper Island.
The Andaman tropical evergreen rain forests, beautiful silver sandy
beaches, serpentine mangrove-lines creeks, marine life abounding rare species
of plants, animals, corals, etc., provide a memorable experience to the tourists.
There is tremendous scope for enjoying nature in the beach resorts, water
sports and adventure water sports, adventure tourism like trekking, Island
camping, Nature trail, Scuba Diving, etc.
Tourism Department runs guest houses in various parts of the Islands
for comfortable accommodation to tourists visiting these Islands. The important
places of tourist interest are Anthropological Museum. Marine Museum, Water
Sports Complex, Gandhi Park, North Bay, Viper Island, Ross Island,
Chldiyatapu, (Bird watching), Red Skin Island, Corbyn's cove Beanch, Islands
like Neil Island, Havelock Island, Cinque; Little Andaman, Diglipur (Ross &:
Smith), etc. Tented accommodation is available at Radha Nagar beach from
December to May. The best season to visit these Islands is from October to
May. During the year 2003 a total 98,180 tourist visited out of which 93,899
were domestic tourists and 4,281 foreign tourists.

GOVERNMENT
Lt. Govemor

: Prof. Ram Kapse

Chief Secretllry

: V.V. Bhat

Jurisdiction of High Court : Falls under the jurisdiction of I<olkata High Court

AREA, POPULATION AND HEADQUARTERS OF DISTRICTS

S.No. District

Area (sq km)

Population

He/ldquarteJ'S

1.

Andaman

6,408

3,14.084

Port Blair

2.

Nicobar

1,841

42,068

Car Nicobar

CHANDIGARH
Area

114 IKl km

Capitlll

Chandigam

Population

9,00,914
Hindi, Punjabi, English

HISTORY AND GEOGRAPHY

Chandigarh nestles in a picturesque setting in the foothills of Shivalik hills
and enjoys the popular epithet the City BeautifuL Representative of m.odem

884

India 2005

architecture and town planning, the city is a creation of the French architect,
Le Corbusier. Chandigarh and the area surrounding it were constituted as
a Union Territory on 1 November 1966. It serves as the joint capital of both
Punjab and Haryana states. It is bounded on north and west by Punjab and
on the east and south by Haryana.
AGRICULTURE
The Union Territory Chandigarh has limited area under Agriculture. the
agricultural land is being grad ally aquired for the expansion of Chandigarh
City and cultivated area has shrunk from 5,441 hectares in 1966 to 1,400
hectres in 2002-03. The main sources of irrigation are deep-bore tube-wells
installed by the Administration and shallow tube-wells installed by individual
farmers. The main crop of foodgrain is wheat anditis sown nearly in 700
hectares. The production of food grain has increased from 3,340 tonnes in 198081 to 4,220 tonnes in 2002-03. The Department is also making efforts to
promote techniques of harvesting by following measures: (i) Extension and
Farmers Study /Training Tour, (ii) Development of Kitchen Garden, (iii) Soil
and Water Conservation.
INDUSTRY
There are 15 large and medium and about 3,140 small scale industrial units
offering employment to about 30,000 persons and giving an annual output
of approximately Rs 600 crore. These units are mainly ancillary units engaged
in the manufacturing of industrial fastners, steel and wooden furniture,
machine tools, soaps and detergents, pharmaceuticals, electrical! electronic
items, sanitary fittings, sports goods, plastic goods, knitting needles, etc. There
are about 20 major exporting units in Chandigarh which export goods to the
tune of R<; 60 crore (approximately) annually. Although in national terms, the
quantity of exports may appear to be rather small, the Administration's efforts
now are to promote only hi-tech electronic and information technology, nonpolluting industry besides the export oriented indusry for future expansion.
POWER

Chandigarh gets power from neighbouring states and Central generation

projects to meet its power requirement. It has 3.5 per rent share of total power
generation of Bhakra complex. Further the firm allocation is 82.9 MW, out
of thermal, nuclear and gas based Central generation projects. The shortfall
is being met through ad hoc allocation from BBMB besides Central projects.
All the villages around the city stand electrified and have been extended the
facility of public lighting. About 2,000 number of energy efficient lamps have
been installed in various important buildings.

INFORMATION TECHNOL<X;Y
The Administration is implementing e-governance in order to provide citizens
with Single window, online facilities. The IT Enable Services Policy of the

States and Union Territories

885

Administration has also been released in January 2003. Under e-Governance

significant work has been done in the Departments uf Excise and Taxation,
Licensing and Registering Authority, Registration of Birth and Deaths, and
Police. Citizen's portal which would be accessed either through the internet
or through a chain of Information Centres by the public. An Optic Fibre
Network has also been set up in the city by private companies at their own
cost. Part of this Network is being utilised to connect Government Offices
and Information Centres. A 111 acre site has been allocated by the
Administration for a Technology Park near Kishangarh, for attracting
Technology Companies to set up their facilities. A Centre of Excellence has
been set up in the Punjab Engineering College by the Department in
collaboration with Microsoft. Chandigarh Incubation Facilities are being
provided at the Punjab Engineering College where eight companies have
presently been accommodated.
TRANSPORT
Chandigarh Transport Undertaking has the privilege to operate public
transport plied on sub-urban routes, city routes and on inter-state routes. The
length of national highways is 15.275 km. Chandigarh is well connected by
all, road and air as well.
TOURIST CENTRES
Important tourist centres are Rock Garden, Rose Garden, Sukhna Lake,
Museum and Art Gallery, City Museum, Tower of Shadows, Geometric Hill
Museum of Evolution, Kala Gram, Log Huts, Nepli Forests, Fitness Trails (in
Leisure Valley), National Gallery of Portraits, Central Plaza, International Doll
Museum and Smriti Upvan.

GOVERNMENT
AdministrMor:

General (Retd.)
S.F. Rodrigues

Advisor to the :
Administrator

The charge Is
presently being held by
R.S. Gujral, Home
St.'cretary Chandigarh
Administration in
addition to his own
duties.
Falls under jurisdiction of
Punjab and Haryana High
Court

Jurisdiction of
. High Court

DADRA AND NAGAR HAVEL!

sq

Area

491

Capital

Silvaesa

km

Popu/lltion
Principal

: 2.20.490

LaI18UJ1ges: Gujarati. Hindi

886

India 1UUb

m5TORY AND GEOGRAPHY

After prolonged skirmishes between the Portuguese and Marathas, on

17 December 1779, the Maratha Government assigned the aggregated revenue
of Rs 12,000 in a few villages of this territory to the Protuguese as
compensation to ensure their friendship. The Portuguese ruled this territory
until its liberation by the people on 2 August 1954. From 1954 till 1961 the
territpry functioned almost independently by what was known as "Free Dadra
and_ Nagar Haveli Administration". However, the territory was merged with
the Indian Union on 11 August 1961 and since then is being administered
by the Government of India as a Union Territory. After liberation of the
territory from Portuguese rule, a Varishtha Panchayat was working as an
advisory body of the Administration. This was dissolved in August 1989 and
a Pradesh Council for Dadra and Nagar Haveli District Panchayat and 11
Village Panchayats were constituted as per constitutional amendments at All
India level. The U.T. of Dadra and Nagar Haveli has an area of 491 sq km
and it is surrounded by Gujarat and Maharashtra. It consists of two pockets,
namely, Dadra and Nagar Haveli. The nearest railway station is at Vapi which
is 18 km from Silvassa.
AGRICULTURE

Dadra and Nagar Haveli is a predominantly rural area with about 79 per cent
tribal population. It has about 21,115 hectares under cultivation. Major crop
is paddy (Kharil) while Nagli and other hillmillets are crops of the area.
Among fruits Mango, Chiku and Banana, etc., are also produced. Forests cover
40 per cent of the total geographical area.
INDUSTRY

Prior to 1965-66 there was no industry in the Union Territory. There were a
few traditional craftsme~ who used to make pots, leather items, viz., chappals,
shoes and so~e other ltems of bamboo. Industrial development started on
a low-key dUrIng 1967-68 with the establishment of an industrial estate under
the cooperative sector by Dan Udyog Sahakari Sangh Ltd. Thereafter, three
Government Industrial Estates have been developed at Silvassa Masat and
~adoli in the U.T. As on March 2004, there were 1,680 S.S.I. 'units which
~lude ~ottage, .Villa~e Indus~es and 430 Medium Scale/Large Scale Industries
m ~'extdes, Engmeermg, Plashes, Electronics, Chemicals, Pharmaceuticals, etc.,
which employ more than 43,192 persons.
IRRIGATION AND POWER

Pri~r to liberation of the territory, there was no irrigation facility and

~lhvators ha.d to fully depend upon rainfall. After the merger of the territory
Wlth the indIan Union, adequate steps were taken under minor irrigation
sector. So far 128 lift irrigation schemes have been completed on irrigation
wel~s, surface water sources like rivers, check dams at various places in the
terrttory crearing additional irrigation potentiaJ of 1,851 hectares. Under

States and Union Territories

887

medium irrigation project viz., Oamnganga Reservoir Project, about 115 km

of minor canals and distributaries are falling in the area of this Union Territory.
Development works have been completed in field channels in all respects in
4,300 hectares and testing is done in 4,049 hectares.
There was no rural electrification prior to liberation of this territory. The
electricity was provided with only one DG Set which was installed and
operated in Silvassa Town for VIPs at Orcuit House.
After liberation, the UT Administration commenced rural electrification
work with the co-operation of neighbouring State of Gujarat and completed
electrification work in 2S villages by 1976. The power demand of the UT is
met by Gujarat Electricity Board through a single Circuit from Vapi-Silvasa
and distributed amongst limited number of consumers. The first 66 KV SubStation was established at Amli in 1979. With the commissioning of the said
Sub-Station, the electricity department is in a position to provide electricity
to all villages.
The Power requirement of the territory is being met from Central Sector
Power Generating Stations located in the western region. At present the power
allocation from the Central Sector is 270 MW. The power demand has
increased tremendously due to rapid industrialisation with the extension of
Tax Holiday benefit to this UT by the Government of India. The territory has
an annual per capita consumption of about 7,015 KWH as per data of 200304.
Amongst the major works completed during the last two years were
establishment of 220/66 KV, 2xlOO MVA sub-station at Kharadpada, alongwith
66 KV single circuit line on double circuit tower from 220/66 KV Kharadpada
sub-station to 66 KV sub-station, Masat sub-station, Rakholi sub-station and
Khadoli sub-station. Hot line stringing from 66 KV sub-station Masat on
existing single circuit line on double circuit tower from Kharadpada to Masat,
augmentation of 66 KV sub-station at Khadoli sub-station from 2x10 MVA to
2xIO + 2x15 MVA, augmentation 66/11 KV Dadra sub-station from 3x10 MVA
to 3x20 MVA, augmentation of 66/11 KV Kharadpada sub-station from 2xS
MVA to 2xIS MVA.
Under the scheme of Free Service Connections to weaker sections, 835
families have been benefited during 2003-04.
TRANSPORT

The Union Territory depends heavily on Maharashtra and Gujarat road

network as the territory can be accessed only after crossing these two States
from Mumbai. At present road length is about 629 km. out of which 560 km.
is surfaced. AIn\ost aU villages are connected with aU weather roads. The rail
route from Mumbai to Ahmedabad links Vapi also. M1,JJl\bai is the nearest

India 2005

888

airport. Recently, the work of widening of roads in the Union Territory has
been taken up to meet the requirement of increasing vehicular traffic.
To meet the need of rapid industrialisation, four laning work has been
taken up in Silvassa and adjoining areas, besides other spillover works.
Converting of two lane road to four lane road (or Dadra - Tighra road is
under progress.

TOURISM
Tourism sector has been assigned high priority keeping in view the dense
forest area and favourable climate.
The prominent places of tourist interest are Tadekeshwar Shiva Mandir,
Bindrabin, Deer Park at Khanvel, Vanganga lake and Island Garden, Dadra,
Vanvihar Udhyan Mini Zoo, Bal Udhyan, Tribal Museum and Hirvavan
Garden at Silvassa. The development of water sports at Dudhani has been
completed. Tourist Complex at Kauncha and Luhari have been completed and
and inaugurated during 2003-04. The construction of an Amphitheatre dose
to Yatri Niwas, Silvassa is under progress. To encourage tourism activities,
some traditional and modern cultural activities like celebreation of Tarpa
Festival, Kite festival, World Tourism day, etc., are organised every year.
FESTIVAlS
Normally all festivals of Hindus, Muslims and Christians are celebrated in
the territory, while tribals celebrate their own festivals. Diwaso is celebrated
by Dhodia and Varli tribes and Raksha Bandhan is celebrated by Dhodia tribe.
Other festivals include Bhawada amongst Varlist, Koli tribes and Khali Puja
by all tribes after harvesting of crops and Gram Devi before harvesting of
crops.

GOVERNMENT
Administrator

Arun Mathur

Jurisdiction of High COllrt

Falls under the jurisdiction of the Mumbai High Court

DAMAN AND DIU

Area

112 sq km

Population

Capital:

Daman

Principil/

1,58,.204
~llguages:

Gujarati

I-nSrORY AND GEOGRAPHY

Daman and Diu along with Goa was a colony held by the Portuguese even
after Independence. In 1961, it was made an integral part of India. After
conferring statehood on Goa on 30 May 1987, Daman and Diu was made a

States and Union Territories

889

~parate

Union Territory. Daman lies about 193 km. away from Mumbai. It
bound on the east by Gujarat, on the west by the Arabian Sea, on the north
by the Kolak river and on the south by Kalai river. The neighbouring district
of Daman is Val sad in Gujarat. Diu is an island connected by two bridges.
The neighbouring district of Diu is Junagadh of Gujarat.
IS

AGRICULTURE AND IRRIGATION

Total area under irrigation is 1,121.03 hectares. Important field and garden
crops are paddy, ragi, bajra, jowar, groundnut, pulses and beans, wheat,
banana, sapota, mango, coconut and sugarcane. There are no major forests
in the territory.

INDUSTRY AND POWER

There are 1,746 small scale and medium scale industries in Daman and Diu.
Two industrial areas have been developed by Omnibus Industrial Development
Corporation at Daman. The other industrial areas are Dabhel, Bhimpore~
Kachigam and Kadaiya.
All villages have been electrified. Daman and Diu have got adequate
power allocation from Central sector power stations in western region. There
are six sub-station for redistribution of power supply.
TRANSPORT
Road~

The total length of roads in Daman and Diu are 191 km. and 78 km.
respectively.
Railways
There is no railway link with Daman and Diu. The Nearest railway station
from Daman is Vapi on western railway on Mumbai-Delhi route. The nearest
railway station from Diu is Delvada on meter-gauge.
Aviation

There are airports both in Daman and Diu. Diu has been connected by air
and there is regular air service from Mumbai to Diu.
TOURIST CENTRES
Important tourist places in Daman are as under: Born Jesus Chruch, OurLady
of Sea Church; our Lady of Remedios Church; Forts of Moti Daman and Nani
Daman; Jampore and Devka Beaches; Public Garden and Moti" Daman J~,
Pargola Garden, Moti Daman; Amusement Park, Devka; Damanganga Tounst
Complex, Kachigam; Satya Sagar Udyan; Mirasol Garden; Mirasal Water Park.

In Diu, St. Paul's Church; Diu Fort and Panikota Fort; Nagoa and
Chakratirth and Children's park at Ghoghla and Summer House are famous
tourist places.

890

India 2005

GOVERNMENT
Administrator

Arun Mathur

Commissioner &r: Secretary (Finance)

J. K. Dadoo

Colll'Ctor, Daman

Dr. M. Modassir

Collector, Diu

Randhir Singh

Presently, there is a common High Court at Mumbai for Maharashtra

and Union Territories of Daman and Diu and Dadra and Nagar Haveli.
AREA, POPULATION AND HEADQUARTERS OF DISTRICTS
S.No. District
1

2.

Daman
Diu

Area (sq kIn)

Population

72

}.13,989

40

44,215

Headquarters
Daman
Diu

DELHI
Area

1,483 sq kIn

PopulI! tiol1

13.80 million (Census-2oo1)

Capital

Delhi

PriJlcipl!l UI1I811i1ge5

Hindi, Punjabi, Urdu &r: English

HISTORY AND GEOGRAPHY

Delhi finds prominent reference right from the times of the epic Mahabharata.
Its control passed from one ruler/dynasty to another, beginning with the
Mauryas, Pallavas, Guptas of Central India and then to the Turk and Afghan
during the 13th to 15th centuries, and finally to the Mughals in the 16th
century. In the latter half of the 18th century and early 19th century, the British
rule was established in Delhi. In 1911, Delhi became the centre of all activities
after the capital was shifted from Kolkata. It was made a Union Territory in
1956. Lying in the northern part of the country, Delhi is surrounded by
Haryana on all sides except the east where it borders with Uttar Pradesh.
The 69th Constitutional amendment is a milestone in Delhi's history as it got
a Legislative Assembly with the enactment of the National Capital Territory
Act, 1991.
AGRICULTURE
The principal food crops are wheat, bajra, jowar, gram and maize. However,
emphasis has now shifted from food crops to vegetables and fruit crops, dairy,
poultry-farming, floriculture, etc., as these are more remunerative than food
crops in the territory.

INDUSTRY
Delhi is not only the largest commercial centre in northern India, but also
the largest centre of small industries. These are manufacturing a wide variety

States and Union Territories

891

of items like television, tape recorders, light engineering machines and

automobile parts, sports goods, bicycles and PVC goods including footwear
textiles, fertilizers, medicines, hosiery, leather goods, software, etc.
Delhi's new millennium industrial policy, emphasizes setting up of hightech and sophisticated industries in electronics, telecommunications, software
industries, IT enabling services, etc. The industries, which are non-polluting
and encourage high value addition and depend largely on skilled manpower
are being promoted.
For the purpose of relocating industrial units fW1CtiOning in residential
non-conforming areas, the Government of NCT of Delhi took possession of
1,065 acres of land at village Bawana, Holambi Kalan and Holambi Khurd
for developing new industrial estates. Work of construction of 378 flatted
factories at Jhilmil Industrial Area for relocation of smaller units has been
completed. In addition, 800 acres of land has also been acquired and its
possession has been taken for development of new industrial areas.

IRRIGATION AND POWER

Due to fast urbanisation taking in the rural areas of Delhi, cultivable command
area under irrigation is getting reduced day by day. Two schemes, namely,
"Keshopur Effluent Irrigation Scheme Phase-III" and "Improvement and
Extension of Effluent Irrigation System from Coronation Treatment Plant" are
under execution. Irrigation of about 350 hectares with state tube-wells and
1,376 hectares from effluent water is being provided in the rural area of NCT
of Delhi. In addition about 4,900 hectares of land is being irrigated from
western Yamuna Canal network.
The firm availability of power for Delhi from its own generating units
at Rajghat Power Houses, IP Station and Gas Turbines including Badarpur
Thermal Station is of the order of 850-900 MW. The remaining power is drawn
from Northern Regional Grid. Delhi has also envisaged a number of
generating projects to be taken up. Pragati Combined Cycle Power Project has
been established at Indraprastha Estate. A 330 MW Pragati Power Project
under construction is scheduled to be commissioned soon. The test run for
its first phase of 100 MW has already started.
To streamline the distribution of power, DVB has been privatised and
Delhi is now served by the two of the best electric utilities in India, BSES
and Tata Power (NDPL).
.
TRANSPORT

Delhi is well connected by roads, rail and air with all parts of India. It has
three airports - Indira Gandhi International Airport for the international
flights, Palam Airport for national air services and Safdarjung Airport for
training purposes. It has three important railway stations - Delhi Junction,
New Delhi Railway Station and Nizamuddin Railway Station. Delhi has three
inter-state bus terminals at Kashmeri Gate, Sarai Kalen Khan and Anand Vlhar.

892

India 2005

Keeping in view the rising vehicular pollution and chaotic traffic

condition in the city of Delhi, it has been decided to start Mass Rapid Transit
System (MRTS) in Delhi. The Project is under implementation and is using
the state-of-the-art modem technology. The metro rail project is coming up.
This is expected to be completed by 2005. Its first part from Shahdara to
Tis Hazari has already been completed and inaugurated by the Prime Minister
in December 2002.
FESTIVALS
Being a cosmopolitan city, all major festivals of India are celebrated here.
Moreover, some tourism festivals have become regular annual events of Delhi.
Delhi Tourism and Transportation Development Corporation organises Roshnara
Festival, Shalimar Festival, Qutab Festival, Winter Carnival, Garden Tourism
and Mango Festival every year.
TOURIST PLACES
Important tourist places are Lal Quila (Red Fort), Jama Masjid, Qutab Minar,
India Gate, Laxmi Narian Mandir (Birla Mandir), Humayun's tomb, Lotus
Temple, etc. Delhi Tourism and Transportation Development Corporation
Limited conducts city sight-seeing and excursion tours. The Corporation has
also introduced adventure tourism activities such as para-sailing, rockclimbing and boating in Delhi. The Corporation has also developed DELHI
HAAT, where coffee and food items of different states are available at one
place. More such HAATs are planned in different parts of Delhi. The
Corporation is running Coffee Homes also in different parts of Delhi. The
"Garden of five Senses" has also been opened in the South District of Delhi.
which attracts a lot of tourists visiting Delhi.

GOVERNMENT
Lt. Govemor

B.L. Joshi

Chief Justice

B.C. Patel

Chief Minister

Sheila Dikshit

Chi~f

Shailaja Chandra

Speaker

Prem Singh

Jurisdiction of

Secretary

Delhi

ffigh Court

LAI<SHADWEEP
Are/!

32 sq Jan

Population

60,595

Capital

I<avaratti

Principal Language

Jeseri (Oweep Bhasha) and Mahal

HISTORY AND GEOGRAPHY

Not much is known of the early history of these islands. The islands supposed
to have been inhabited first are Amini, Andrott, Kavaratti and Agatti, It was
earlier believed that the islanders were originally Hindus and later converted

States and Union Territories

893

to Islam under the influence of Arab traders sometime in the 14th century.
But Archaeological evidences unearthed indicate that there were Buddhist
settlements around the 6th or 7'" century. Earliest Muslim converts or settlers
pre-date the year 139 AH of the Hijra year (eighth century) of which period
grave stones have recently been discovered in Agatti. This would tend to bear
out the traditional belief that Islam was brought to the Island by Arab Saint,
Ubaidulla in 41 AH.
Probably independent till 16th century the Islands were driven to seek
the assistance of Raja of Chifakal to help them avert establishment of
Protuguese domination. This enabled him to establish his authority and, later,
the islands were transferred in jaggier to Ali Raja, head of Moplah community
in Cannanore, who later became an independent ruler himself. The Arakkal
rule was not popular and in 1787, Tipu Sultan acceded to the petitions of
the Northern islands to annex these islands. After the fall of Tipu Sultan, the
Islands were passed to East India Company but continued to be ruled de facto
by the rulers of Cannanore till their ultimate annexation by the British in the
early 20 th century. In 1956, the islands were constituted into a single territory,
and since then, have been directly administered by the Union Government
through an Administrator. The Laccadives, Minicoy and Amindivi group of
islands were renamed as Lakshadweep in 1973. Lakshadweep, a group of
coral islands consist of 12 atolls, three reefs and submerged sand banks. Of
the 27 islands, only 11 are inhabited. These lie scattered in the Arabian Sea
about 280 km to 480 km off Kerala coast between 8" and 12 3' North Latitude
and 71 and 74 East Longitude.
AGRICULTURE
Coconut is the only major crop with a production of 553 lakh nuts per year.
The area under cultivation is about 2,669 hectares. Lakshadweep coconut is
branded as an organic product. In India, Lakshadweep stands first in coconut
production and productivity per hector is 19,667 per ha and average yield
per palm per year is 97 nuts. The Lakshadweep coconuts are the highest oil
content nuts in the world (82 per cent).
FISHERIES

Fishing is another major activity. The sea around the island is highly
productive. The islands stand first in the country in per capita availability
of fish. During 2003, 10,000 tonnes of fish have been landed in this U.T.
INDUSTRIES
Coconut fibre extraction and conversion of its fibre products is the main
industry in the islands. Under Government Sector, there are seven coit fibre
factories, seven coif production cum demonstration centres and four fibre
curling units, functioning under coif ~tor. These ~ts produ~ed coif f~bre
and coir yam in addition to other COlt products like curled flbre, comdor
mat, mat and mattings. Small coif units are also functioning under private
sector in different islands.

894

India 2005

TRANSPORT
M.V.Tipu Sultan, M.V.Bharat Seema, M.V.Oweep Setu, M.V.Amindivi and
M. V.Minicoy carry passengers to and from the islands to Cochin and Beypore
ports. M.V.Ubaidulla, M.V.Thinnakara, M.V.Laccadives and M.V.Cheriyam
carry cargo to islands from mainland. M.V.SuheU 60 MT oil barge is mainly
utilised for providing bunker (fuel) to inter island ferry vessels. Kadeeja Beevi
and Hameedathbi ply between all islands other than Minicoy. Besides, these
there is helicopter ambulance service between islands to mainland. Indian
Airlines connects Agatti and Kochi daily except Sunday and Agatti and Goa
thrice a week (on Monday, Wednesday and Friday) during fair season.
TOURIST CENTRES
Tourism is developing into an important industry. Important tourist places
are Agatti, Bangaram, Kalpeni, Kadmat, Kavaratti and Minicoy, etc. Out of
4,701 tourists visited this year 656 are foreigners.

GOVERNMENT
Administrator

S.P. Singh

Jurisdiction 01 High Court

Falls under jurisdiction of Kerllia High Court

PONDICHERRY
492 sq km
CllpitaJ: Pondicherry

Popullltlon

: 9,73,829

Principal Languages: Tamil. Telugu. Mlllayalam, English and French

HISTORY AND GEOGRAPHY

The territory of Pondicherry comprises of the former French establishment
Pondicherry, Karaikal, Mahe and Yanam, which lie scattered in South India.
Pondicherry, the capital of the territory was once the original headquarters
of the French in India. It was under the French rule for 138 years and merged
with the Indian Union on 1 November 1954. It is bounded on the east by
the Bay of Bengal and on the three sides by Tamil Nadu. About 150 kin south
of Pondicherry on the east coast lies Karaikal. Mahe is situated on the Malabar
coast on the Western Ghats surrounded by Kerala. It can be reached from
Calicut Airport, which is 70 kin from Mahe. Yanam is situated adjoining the
East Godavari district of Andhra Pradesh and is about 200 kin from
VlSakhapatnam airport.

AGRICUL11JRE
Nearly 45 per cent of the population of the Union Territory is engaged in
agriculture and allied pursuits. Eighty seven per cent of the cultivated area
is irrigated. Paddy is the predominant crop followed by pulses. Mahe region
contributes in the plantation wealth of this territory. Crops like coconut, areca

States and Union Territories

895

nut, condimen~ and spices are grown here. Pulses, groundnut and chillies
are the other ramfed crops grown in Yanam. During 2003...()4, 22,542 hectares
had been cultivated under rice.
INDUSTRY

With an investment of over Rs 1,920.11 crore, 7,338 industries are providing

employment to 85,841 persons as on 31 March 2004. The number of industrial
units registered up to May 2004 is 7,368 units. The total value of production
from these industrial units works out to Rs 11,659.16 crore.
The export value of various products manufactured by the industries
was Rs 465 crore during the year 2002-03.
IRRIGATION
In order to rehabilitate 84 irrigation tanks in Pondicherry region, a scheme
costing about Rs 34.73 crore was proposed under the financial assistance from
the European Union. Already rehabilitation works for 67 tanks were completed.
Remaining 17 tanks are proposed to be completed during the year 2004-05.
Two bed dams across, Chunnambar at Nonankuppam and Sitheri at
Bahour are being taken up fOf recharging the groundwater and to arrest saline
water intrusion in the aquifers.
Also Rain water - harvesting structure in all the Government buildings
are being executive for the artificial recharging of the groundwater.
POWER

The Power requirements of the Union Territory of Pondicherry are met by

availing share of power from the Central Generating Stations and by
purchasing power from the neighbouring State Electricity Boards viz., Tamil
Nadu Electricity Board, Kerala State Electricity Board and from the Pondicherry
Power Corporation Limited.
In order to maintain reliable and stable power supply in Karaikal region,
the capacity of the existing Sorakudi 110/11 KV sub-station had been
augmented by erecting an additional 16 MVA Power Transformer and the
same had been commissioned on 30 March 2003. In addition to the above,
the newly erected 110/11 KV sub-station at Pillaitheruvasal, I<araikal was
completed and satisfactorily test commissioned on 31 March 2004. Regarding
establishment of 110/22 KV sub-station at Korkadu Village, the erection works
are under progress.

Shunt Capacitor Banks totalling to a capacity of 21.6 MvAR have been

erected in the 110/22-11 KV sub-stations and 12 MVAR capacity have been
commissioned.

TRANsPo&T

Roads
Considering the rapid growth of traffic in Pondicherry and to scale the same,

896

India 2005

a survey was conducted by engaging a consultant. The draft plan on the

transportation engineering was prepared and the same will be proposed to
be implemented in phased manner from 2005 and 2024. Also the Public Works
Department roads in Union Territory will be upgraded in standards with lane
consciousness before 2005.
The major Bridges in Pathukannu, Mangalam, Sagadapet and Arasalar
in Karaikal are in progress and will be completed during the year 2004-05
at a cost of Rs 7.46 crore. A Barrage cum Bridge at Villianur is under
construction and the project cost is Rs 10.19 crore.
The road-over-bridge over Uppar drain connecting Kamara; Salai and
Muraimalai Adigal Salai is proposed during the year 2004-05 at a cost of
R<; 20 crore. Subsequent to the gauge conversion of railway line between
Pondicherry and Villupuram, railway over bridges are proposed at salient
road crossings and is proposed to be taken up through the southern railways.
The Union Territory Administration will share 50 per cent of the cost of such
constructions.
TOURISM
Pondicherry still possesses a rich French cultural and architectural heritage.
The erstwhile French Town ensconced in 4 boulevards, a well-planned town,
neatly laid roads and vibrant beaches are the foremost attraction for the
tourist.
Pondicherry is otherwise well known for its spiritual abode. The Ashram
of great spiritual thoughts founded by Sri Aurobindo and his disciple 'The
Mother' is the matchless place of interest. Sri Aurobindo Ashram houses
devotees who live here permanently. The Union Territory is secular to the hilt.
Home to a number of temples, churches and mosques the place is an ideal
hotspot to any pilgrim of any religion. Thirunallar the only Saneeshwar
Temple in India is in Karaikal region.
Arikamedu, an interesting site excavation for scholars, revealed Indian
- Roman trade between 2nd Century B.C. and 2nd Century A.D. Arikamedu
is going to be an Archeological Tourism Complex with facilities like small
museum, research facilities, public amenities sound and light shows, etc. Plans
are afoot to revive boating to Arikamedu.
For a visiting tourist choices for accommOdation are many. From star
hotel to budget hotel, from beach resort to heritage hotels, one has plenty
of choices to stay. The Heritage hotels are recent attraction added to
Pondicherry.
Income tax holiday for 5 years make Pondicherry an ideal destination
for investors. The Government is also encouraging Non-Resident Indians and
foreign nationals of Indian origin to invest in tourism projects. It is estimated
that about 500 additional hotel rooms are required in the next five years. The
Meas that urgently cry for investments are resorts, hotel, theme parks, golf
courses, water sports, ferry service between Pondicherry and Chennai.
operation of regular chartered flights, etc.

States and Union Territories

897

GOVERNMENT
U. Governor

: Lt. Gen. (Retd.)

Chief Secnltltry

C.S. Khairwal

M.M. Lakhera
Chief Minister

N. Rangaswamy

Jurisdiction of

Falls under jurisdiction

Speaker

M.D.R. Ramachandran

High Court

of Madras High Court

AREA, POPULATION AND HEAIXJUARTERS OF DISTRICTS

S.No.

Diltrict

1.

Pondicherry

2.

Kar.IbJ

3.
4.

Area (sq km)

Population

Headquarters

293

7,35,004

Pondicherry

160

1,70,640

Karaileal

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30 Diary of National Events

(October 2003-September 2004)
OCTOBER 2003
1

Andhra PradeEh Chief Minister Sh. N. Chandrababu Naidu survives

assassination attempt when suspected PWG naxalites exploded claymore
mines targeting his car in Tirupati.
Former President of Czech Republic, Mr. Valcav Havel is selected for
the Gandhi Peace Prize for 2003 for his outstanding contribution to
world peace and upholding human rights through GClndhian means.
The government decides to set up five new IITs by upgrading existing
academic institutions.

CBI Director Sh P.c. Sharma is elected Vice-President of the INTERPOL

for a three-year term.

Prime Minister Sh. Atal Behari Vajpayee leaves for Indonesia and
Thailand on a seven-day visit to participate in the Indo-ASEAN summit.

Election Commission announces that Mizoram Assembly elections will

be held on 20 November while Delhi, Rajasthan, Madhya Pradesh and
Chhattisgarh will have elections on 1 December.
Union Cabinet declares the first National Auto Fuel Policy laying the
roadmap for the next decade on the quality of fuels and the standard
for vehicles.

Veteran actor Sh. Anupam Kher will be the new Chairman of the
Central Board of Film Certification, also known as censor board.

The 34th International Film Festival of India begins in Delhi.

13

Union Government pleads before the Supreme Court for reconsideration

on its recent judgment halting the privatisation of oil PSUs.

14

Tenth class students Sh. Saatvik Agrawal of Delhi and Sh. Vignan
Patmatta of Hyderabad, are selected to take part in the Mars exploration
programme at NASA.

16

India and South Africa sign an extradition treaty and four other accords
aiming at enhancing economic cooperation, expending mutual legal
assistance and providing for cultural exchange programmes.

17

India successfully launches its heaviest and sophisticated remote sensing

satellite, Resourcesat-l from Sriharikota.

18

President Dr. A.P.J. Abdul I<alam leaves for a week-long official tour to

Diary of National Events

899

the United Arab Emirates, Sudan and Bulgaria, spread over three
continents - Asia, Africa and Europe.
19

The Iranian film Five in the afternoon directed by Zeinab Makhmalbaf

bags the Golden Peacock Award at the 34th International Film Festival
of India.

21

Union Cabinet decides to raise the ceiling on election expenditure for

the Lok Sabha to Rs 25 lakh against the present Rs 15 lakh per
constituency. For Assembly constituencies, the limit is Rs 10 lakh per
constituency with adjustments in case of smaller States.

22

In an attempt to break the India-Pakistan logjam, New Delhi proposes

a dozen steps which include Restoration of sports ties; Bus service
between Srinagar and Muzaffarabad; Restoration of air links and
overflights; Mumbai-Karachi ferry; Free treatment for 20 more ailing
Pakistani children; Permit citizens above 65 years to cross Wagah border
on foot, etc.
Cabinet Committee on Security designates Deputy Prime Minister
Sh. L.K Advani as the Centre's interlocutor in the first ever direct
dialogue with the All Party Hurriyat Conference headed by Maulana
Abbas Ansari.

23

India and China begin the first round of talks aimed at giving a political
push for an early solution to the long-standing boundary dispute.

24

First Afro-Asian Games begin at Hyderabad.

27

Lt. Governor of Pondicherry, Sh. KR. Malkani dies of cardiac arrest. He

was 82.
TRAI recommends abolition of separate licencing in telecom sector and
suggests automatic licensing for all telecom services and merger of
basic and cellular licences.
President Dr. A.P.}. Abdul Kalam promulgates an ordinance to amend
the POTA to confer more powers on Central and State review committees
to make their decisions binding on Central and State Governments and
on police officers investigating the cases.

28

Prime Minister Sh. Atal Behari Vajpayee alU,ounces that the Golden
Quadrilateral project will be extended to Kohima, and the Centre will
spend Rs 400 crore on converting the stretch of NH-39 into a four-lane
highway.
The heir to the British thror,e, Prince Charles, arrives in New Delhi on
a nine-day visit.

29

Delhi High Court acquits two of the four accused in the Parliament
I'
House attack case.

900

India200s
Brahmos, the supersonic cruise missile is flight tested successfully for
the fourth time from the interim test range at Chandipur.

30

Rahul Dravid is named the Wisden Indian Cricketer of the year

2002-03.

Election Commission makes it mandatory for candidates contesting the

forthcoming assembly polls to file details of expenditure with the
returning officers every three days.
31

Union Cabinet approves a proposal to introduce a unified licence

regime in telecom sector, allowing WLL operators to offer fully mobile
services. Those who take unified licence will now be able to offer
mobile and fixed-line services.
India wins Hockey final in Afro-Asian Games, defeating their arch rival
Pakistan.
Renowned Carnatic musician Sh. Semmangudi Srinivasa Iyer dies in
Chennai. He was 95.

NOVEMBER
2

Vice President Sh. Bhairon Singh Sekhawat leaves for Myanmar on a

four day state visit.

RBI keeps bank rate and cash reserve ratio unchanged. It upgrades the
Gross Domestic Product growth rate to 6.5 - 7 per cent for the current
fiscal.
Doordarshan launches its 24 hour news channel, DD News.

Supreme Court suggests enactment of a law providing for a national

policy on higher education with merit alone as criteria for admission.
TRA! gives free hand to fixed line operators to decide appropriate
telecom tariffs. Rural telephony is kept out of the scope of the TRAI's
order.

The formal process to elect new assemblies in Delhi, MP, Rajasthan and
Chhattisgarh begins with the issue of notification by the Election
Commission.
.

Tamil Nadu Assembly orders arrest of six senior journalists, including

two top editors of The Hindu on charges of breach of privut!ge and
gross contempt of the house through an editorial.
Supreme Court agrees to hear a petition seeking reconsideration of its
judgement banning strikes by Government employees.

Air India decides to acquire 28 aircraft at a cost of ten thousand crore

rupees.

India decides to send a team to Pakistan for playing cricket series in

March 2004.

Diary of National Events

901

Brahmos cruise missile is successfully test fired for the fifth time from
Chandipur-on-sea.
10

Supreme Court stays the warrant issued by the Tamil Nadu Assembly
for the arrest of senior journalists including two top editors of The
Hindu and the editor of a Tamil daily.

11

Prime Minister Sh. Atal Behari Vajpayee leaves for a state visit to
Russia, Tajikistan and Syria.
Government issues guidelines for unified telecom licence allowing
operators free to chose their service type, technology and extent of
services.

12

Union Government tightenes External Commercial Borrowing norms

following softer interest regime and increasing foreign exchange reserves.

13

26 children, including nine girls are selected for 2003 National Bravery
Awards.
The ruling Telugu Desam Party in Andhra Pradesh decides to seek a
fresh mandate, paving way for early elections to the state legislative
assembly.

14

Delhi will host the 2010 Commonwealth Games.

The mid-year review projects over seven per cent economic growth
during this fiscal.

17

Prime Minister Sh. Atal Behari Vajpayee accepts the resignation of the
Minister of State for Environment and Forests, Sh. Dilip Singh Judev,
following an alleged bribery scandal .
.Supreme Court agrees to review its recent verdict on disinvestment of
oil majors, HPCL and BPCL.
Bureau of Indian Standards says that European Union norms for
packaged drinking water are to be met by 1 January 2004.

18

Supreme Court orders the transfer of trial of disproportionate assets

cases against Tamil Nadu Chief Minister Ms. Jayalalithaa from Chennai
to Bangalore.
Sh. Shashank, a 1966 batch IPS officer, is appointed the new Foreign
Secretary.

19

Ministry of Information and Broadcasting makes pre-certification

mandatory for music videos.

20

Polling for Mizoram Assembly passes off peacefully with an estimated

75 per cent voters tum out.

AbU Oal leader Sh. G.S. Tohra is unanimously re-elected President of

'Shiromani Gurdwara Prabhandak Committee for the twenty-seventh

time.

902
21

India 2005
,
Central Government decides to hand over investigation of the stamp
paper scam to the cm.
Two Russian surface-to-air missiles, OSA-AK and Qadard are test-fired
from the Interim Test Range at Chandipur-on-sea along with the
indigenously built 'Lakshya' pilotless target aircraft.

22

Election Commission lifts ban on campaigning /advertising on electronic

media by political parties and candidates.

23

Union Minister and DMK leader Murasoli Maran dies in Chennai. He

was 69.
To prevent a major financial crisis following Rs 30,000 crore fake stamp
paper scam, the Government approves all transactions using such
papers.

24

Supreme Court upholds Madras High Court's order acquitting Tamil

Nadu Chief Minister Ms. Jayalalithaa in Tansi land deal case. The apex
court, however, reprimands her for breaching the code of conduct.
Comedienne and singer Uma Devi, popularly known as Tuntun, dies in
Mumbai. She was 80.

25

The Prototype Version 1 of Light Combat Aircraft makes its first flight
at subsonic speed in Bangalore.

26

From 1 January 2004 tickets issued by Air-India can also be used on

Indian Airlines flights on international sectors where both the airlines
operate.

27

Mumbai High Court declines to hand over investigations into the multicrore fake stamp paper scam to the CBI.

30

India welcomes Pakistan's decision to lift the ban on Indian flights over
its airspace.

DECEMBER
1

50 to 60 per cent of voters exercise franchise in the Assembly polls of

Delhi, Madhya Pradesh, Rajasthan and Chhattisgarh.
After a two year gap India and Pakistan are likely to resume air links
from 1 January 2004.
Former Mumbai Police Commissioner, R.S. Sharma is arrested for his
alleged role in shielding the prime accused, Abdul Karim Telgi, in the
fake stamp paper scam case.
Former Chief Minister of Punjab and President of the Shiromani Akali
Dal, Sh. Prakash Singh Badal and his son, Sh. Sukhbir Singh are sent to
jail on corruption charges.

Mizo National Front assumes power for the second time in Mizoram.

Diary of National Events

903

Union Cabinet decides to include some more castes and communities in

the central list of the Other Backward Classes in six states.
Centre constitutes two nodal groups to look into fake stamp paper and
revenue stamp racket.
3

Candidates aspiring for a career in defence services as officers are given

the option of taking their exams in Hindi.

BJP scores victory in Madhya Pradesh, Rajasthan and Chhattisgarh

Assembly elections while Congress wins in Delhi assembly polls.
Prime Minister Sh. Atal Behari Vajpayee leaves for Nigeria to attend the
Commonwealth Heads of Government Meeting.
The IS-member Mizo National Front Government led by
Sh. Zoramthanga swears in.

Bihar Government removes Director-General of Police, Sh. D.P. Ojha

from his post for allegedly criticising the leaders of the ruling party.
Congress suspends outgoing Chhattisgarh Chief Minister Sh. Ajit Jogi
from the party following allegation of bribing BJP MLAs to split the
state BJP to prevent it from forming the Government.
Sh. Uma Shankar Mishra takes over as CBI Director.

Sh. Raman Singh of BJP swears in as Chief Minister of Chhattisgarh.

Smt. Vasundhara Raje of BIP swears in as Chief Minister of Rajasthan.

The I7-member BIP Government led by Ms. Uma Bharti swears in at
Bhopal.

Prime Minister Sh. Atal Behari Vajpayee says he has ordered CBI probe
into the murder of Satyendra Dubey, the engineer who worked on
Golden Quadrilateral project in Bihar.
Maharashtra Government agrees to hand over the fake stamp paper
scam probe to CBI.
Veteran actor Sh. Dev Anand is selected for Dada Saheb Phalke Award2002 in recognition of his outstanding contribution to cinema.

10

Professor M.G.S. Narayanan is removed from the Chairmanship of

Indian Council of Historical Research following allegations of financial
irregularities by the CAG.

11.

Union Cabinet approves the 97th Constitution Amendment Bill,

comprising provisions of anti-defection and size of Council of Ministers.
Lalita Kumari, a young tribal woman from Sitamarhi in Bihar, is
featured on the cover page of the UNICEF's report, The State of the
World's Children 2004.

12

Prime Minister Sh. Atal Behari Vajpayee asks the South Asian nations
to work for mutual security, cooperation, open borders Md single
currency.

904

India 2005
'i

14

Supreme Court rules that a father can gift a reasonable portion of his
ancestral immovable property to daughters at the time of their marriage
or after their marriage.

15

Smt. Sheila Dikshit swears in as Chief Minister of Delhi for a second

term.

16

Lok Sabha passes Bill to amend the Prevention of Terrorism Act (POTA)
to check its misuse.
Lok Sabha passes Constitution Amendment Bill to contain the size of
Council of Ministers and to debar a defector from holding any
remunerative political post for the remaining tenure of the legislature
unless re-elected.
Standard and Poor revises its outlook on India's long-term foreign
currency rating from negative to stable on the basis of country's growing
forex reserves.

17

Noted literature and Magsaysay and Gyanpeeth awardee, Mahashweta

Devi receives the top French decoration 'Officer Des Arts et des Letters'
from French Ambassador to India.

18

Union Cabinet clears a proposal to impose death sentence on

manufacturers of spurious drugs and to make penalty more stringent
for those who sell or deal with such drugs.

19

The Samjhauta. Express is to resume operations between Delhi and

Lahore from 15 January 2004.
Eminent Odissi exponent Ms. Sonal Mansingh is appointed Chairperson
of Sangeet Natak Akademi.

20

Finance Ministry says country's forex reserves cross the $ 100 billion
mark for the first time.
Dravida Munnetra Kazhagam pulls out its two ministers from Union
Cabinet and decides to extend issue-based support to NDA Government
from outside.

22

A Delhi court acquits former Prime Minister Sh. P.V. Narasimha Rao in
Lakhubhai Pathak cheating case.
Parliament passes the Citizenship (Amendment) Bill, 2003. The Bill
provides for dual citizenship for persons of Indian origin living abroad
in 16 countries.
Lok Sabha approves an amendment to the Constitution recognising
Bodo, Maithili, Santhali and Dogri languages under the Eighth Schedule.

23

India, Myanmar and Thailand decide to commence work on a 1,360 km

highway, linking the three Asian neighbours.
Government decides to sell its 10

per cent stake in ONGC and GAIL.

Maharashtra Deputy Chief Mini*r 51.\. Chhagan Bbujbal msigN owning

Diary of National Events

905

responsibility for the attack on the offices of a TV Channel by supports

of Nationalist Congress Party.
25

Former Chief Minister of Delhi, Sh Madan Lal Khurana is appointed

Governor of Rajasthan.

28

Government allows private sector firms to move into assembly of

frontline Defence equipment under technology transfer.

HRD Minister Dr. Murli Manohar Joshi announces setting up of four

National Institutes of Science at Chennai, Puri, Allahabad and
Bhubaneswar.
Former President of the BJP Sh. Kushabhau Thakre passes away.
29

MDMI< Party pulls out of NDA Government.

30

Centre raises statutory minimum price of sugarcane by Rs 73 per

quintal for ongoing season.
Term of Liberhan Commission, probing Babri Masjid demolition is
extended by three months.

JANUARY 2004
1

Jamaat-e-Islami, founder constituent of Hurriyat Conference formally

dissociates from the separatist amalgam.

Government announces special Voluntary Retirement Scheme for

employees of four public sector General Insurance Companies.
For second time in its history BSE Sensex touches 6000 point figure.

President Dr. A.P.J. Abdul Kalam assents anti-defection law.

I<amataka Small Scale Industries Minister Sh. R. Roshan Baig resigns

following fake stamp paper scam.

Law banning defections and limiting ministry size is notified.

A violent mob destroys thousands of rare manuscripts. and other
priceless articles of the Bhandarkar Oriental Research Institute at Pune.

Government cancels licences of 213 units for either not adhering to new
norms on pesticide residues or for unsatisfactory performanc:e.
Union Cabinet approves social security net for 37 crore unorganised
workers.

Trinamool Congress leader Ms. Mamata Banarjee is given the charge of

Coal and Mines Ministry in the Union Government.

Prime Minister Sh. Atal

Vajpayee presents Prav.si Bharatiya
Samman-2004 posthumously to astronaut Kalpana Chawla to marl(
secoad Pravasi Bharatiya Divas. Her husband Jean-Plerre Harrison

Behan

received the award.

906

India 2005
Cable Television Pay Channel rates will now be under the scrutiny of
the Telecom Regulatory Authority of India (TRAI).

10

ULFA militants blew up ONGC's crude oil pipeline in Upper Assam.

12

PMK is pulled out of NDA Government and severed ties with BJP.
Former Chief Minister of Karnataka and Janata Dal (U) leader
Sh. Ramakrishna Hegde passes away in Bangalore. He was 77.

13

Ministry of Railways decides to restore Delhi-Attari bi-weekly special

train. It will be linked to Samjhauta Express.

15

Government raises POI Cap in Petroleum and Private Banking Sectors.

16

Ghulam Rasool Dar, overall commander of Hizb-ul Mujahideen's

operations in Jammu and Kashmir, is shot dead by the Army.

17

Cabinet Committee on Security approves Rs 2,800 crore deal for Russian

aircraft-carrier Admiral Gorshkov.

19

Supreme Court stays execution of Shaukat Hussain Guru, accused in

Parliament attack case. Delhi High Court sentenced him to death.
Prime Minister Sh. Atal Behari Vajpayee calls off his six-day visit to
Thailand and Australia from 8 February, due to domestic preoccupations.
Union Government appoints Election Commissioner Sh. T.S. Krishna
Murthy as the next Chief Election Commissioner.

20

India signs its biggest-ever defence deal with Russia for purchase of
Russian aircraft-carrier, Admiral Gorshkov.
Cabinet decides to set up a high-power National Commission for
farmers, privatisation of procurement of foodgrains for exports and a
new scheme to provide urban services in rural areas.

21

Union Home Secretary Sh. N. Gopalaswami is appointed Election

Commissioner.
Former Union Labour Minister and Congress leader Sh. M. Arunachalam
dies of heart attack at Chennai. He was 59.

23

Supreme Court declares that citizens have a fundamental right to hoist

the National Flag with respect and dignity on their premises throughout
the year.

Prithvi-II surface-ta-surface missile, capable of hitting a target located

at 250 kms away, and with a carrying capacity 750 kilos of nuclear and
conventional warheads, is successfully tested at Chandipur in Orrisa.
All Parties Hurriyat Conference leaders meet Prime Minister Sh. Atal
Behari Vajpayee.
24

Nationalist Congress Party splits into three parts.

Diary of National Events

25

907

In his address to the nation on the eve of 55th Republic Day, President
Dr. A.P.]. Abdul Kalam asks all political parties to spell out action plan
and vision in their manifestoes to make India a developed nation by
2020.
Former Chief Justice of India Sh. M.N. Venkatachaliah, litterateur
Ms. Amrita Pritam and astronomer Sh. Jayant Narlikar are awarded
Padma Vibhushan. No one is selected this year for the country's highest
civilian award, Bharat Ratna. Nineteen persons are selected for Padma
Shushan. Seventy four Padma Shri awards are also announced.

26

Shishma, the newly inducted T-90 tanks of the army, Sukhoi-30 MK-I
fighter aircraft and IL-78 air-to-air refuller aircraft of Indian Air Force
are on display at 55th Republic Day Parade at Rajpath, New Delhi.

27

Cabinet recommends President to dissolve the 13th Lok Sabha on

6 February.

28

Government announces a series of measures to boost exports. These

include a gold card scheme for exporters, removal of curbs on gold and
silver imports, duty free fuel imports for manufacturing sector and
easier capital goods imports for service sector.
Centre bans import of livestock for six months following spread of bird
flue in neighbouring countries.

29

Orissa Cabinet decides to dissolve State Assembly on 6 February.

Four senior political leaders are declared outstanding parliamentarians
for 1999, 2000, 2001 and 2002. They are Deputy Prime Minister Sh. L.K.
Advani, Finance Minister Sh. Jaswant Singh and two veteran
Congressmen Sh. Arjun Singh and Dr. Manmohan Singh.

30

Railway Minister Sh. Nitish Kumar presents interim railway budget for
2004-05. No changes in passenger fares and freight rates.
Anil Baijal, is appointed new Home Secretary.

31

Singing star of yesteryear Ms. Suraiyya dies in Mumbai. She was 75.

FEBRUARY
1

Uttar Pradesh Chief Minister Sh. Mulayam Singh Yadav wins Gannaur
Assembly by-election.

Union Finance Minister Sh. Jaswant Singh presents interim Budget for
2004-05. The highlights are: 7.5 - 8 per cent GOP growth rate projected;
Fiscal deficit at 4.8 per cent; No change in I.T. Act; 50 per cent DA to be
merged with basic pay from April 2004; and I<isan Credit cards for all
farmers by 31 March 2004.
Allahabad High Court stays for six weeks the implementation of UP
Government notification disbanding nine districts.

908
4

India 2005
Cabinet revises income criteria of socially advanced people in OBC list
to Rs 2.5 lakh from the existing Rs one lakh.
JPC upholds CSE findings that 12 soft drink brands, including Pepsi
and Coca-Cola, contain excessive pesticides.

. Human Resource Development Ministry decides to fix fee for post-

graduate programmes in IIMs at Rs 30,000 from about Rs 1.5 lakh a

year.
6

President Dr. A.P.J. Abdul Kalam dissolves thirteenth Lok Sabha.

Centre nominates Professor D.N. Tripathi as Chairman of the Indian
Council of Historical Research.

Sh. Vaiko, MDMK General Secretary and POTA detenu, walks out of
Vallore Central Jail on bail.

Senior lAS officer Sh. Ani! Baijal assumes charge as Union Home
Secretary.
Women Hockey Team of India lift Asia Cup beating Japan in finals at
New Delhi.

10

Centre announces setting up of first-ever National Commission on

Farmers to review status of agriculture and to assess conditions of
different categories of farmers in various regions.
The shon-range missile, Trishul is successfully test-fired from the Interim
Test Range at Chandipur.

11

Sikkim Governor Sh. V. Rama Rao dissolves State Assembly seven

months ahead of its tenure paving the way for early assembly election~
along with Lok Sabha polls.
UP Government declares free education for students in Government
schools up to class 12.

12.

CBSE is to introduce grading system in its affiliated schools in class IX

from next academic session and for class X board exams in 2006.
Industrial growth touches 6.3 per cent during April-December 2003 as
against 5.5 per cent during the corresponding period in 2002.

13

Supreme Court asks CBI to continue its investigation into the Rs 175
crore Taj Heritage Corridor project.

16

For the first time since independence, Indian Army is ready to shed its
dark green combat uniforms with the brass saying the latter is more
combat oriented.

17

Supreme Court dismisses Tamil Nadu Chief Minister Ms. JJayala1ithaa's

plea seeking re-transfer of disproportionate assets cases against her
from Bangalore to either Ponc:lictum'y, ~a Pradesh or ICerala.

Diary of National Events

909

18

C-OAC develops three tools to check cyber crimes. One of these, the
e-mail tracer, traces the path taken bye-mail back to its true origin.

19

Technology Demonstrator-l version of the Light Combat Aircraft, Tejas

achieves another milestone by crossing mach 1.4 at a speed of 950 kmph
approximately at 11 km altitude.

21

Indian cricket team will go on a 40-day tour to Pakistan from 10 March

to play five one-day Internationals and three Test matches.

22

Prime Minister Sh. Atal Behari Vajpayee launches a social security

scheme for workers of unorganised sector. It includes old age penSion,
health insurance and personal accidental insurance cover.
Bihar Government decides to use franking machine for payment of
stamp duty with a view to check irregularities in payment of stamp
duty.

23

Election Commission turns down Union Home Ministry's request for

allowing Deputy Prime Minister Sh. L.K Advani to use Government
aircraft for electioneering.
}(erala. Governor and former Union Minister Sh. Sikander Bakht passes
away in Thiruvananthapuram.
Sh. 'Vijay Anand, who directed several BoUywood classics, dies in
Mumbai. He was 71.

TRAJ urges the Government to defer CAS for at least three months.
Six persons were killed and two seriously injured in a blast at Salish
Dhawan Space Centre, Sriharikota.
25

CBI accuses Gujarat police of trying to hush up gang rape of Bilkis

Yakub Rasool and killing of several other women by a mob during
communal violence that followed Godhra massacre in 2002.

26

Former Union Home Minister and veteran Congress leader

Sh. S..B. Chavan passes away in Mumbai. He was 83.

27

Election Commission decides not to allow election related/political

advertisement on electronic media, both radio and television.
Sup~me

Court endorses HRD Ministry's decision to drastically cut the

fee charged by IlMs.

Government decides to roll back Conditional Access System (CAS).

27

Nine Indians led by Wipro Chairman, Sh. Azim Premji, find place in the
list of billionaires worldwide this year.

29

Election for the 14th Lok Sabha will be held in four phases on 20 April,
26 April, 5 May and 10 May.

MARCH

Delhi High Court directs the Election Commission to widely publicise

910

India 2005
information provided by candidates, including former and present MPs
and MLAs, at the time of filing nominations for contesting elections.

Health and FamilyWeUare Ministry issues a gazette notification baJUling

tobacco advertising from 1 May.

Jammu and Kashmir Assembly passes a Bill disqualifying women from

being permanent residents of the State after marriage with nonpermanent residents.

Election Commission recognises NCP faction led by Sh. Sharad Pawar

as real NCP.

Election Commission orders immediate removal of 'India Shining' and

other State sponsored propaganda advertisements.
Lok Sabha elections are to be held in five phases instead of four because
of tribal festival in Tripura. Fifth phase is limited to Tripura where
polling will take place on April 22.

10

Prime Minister presents a bat to Indian cricket team with message Khel
hi nahin, dil bhi jeetiye, before its departure to Pakistan for Indo-Pak
series.

11

CaSE announces that students up to class II would not be given any

homework from 1 April 2004 academic session.

12

Supreme Court asks Centre to clarify its stand on IIMs in a week.

13

Renowned Sitarist and music director, Ustad Vilayat Khan passes away
in Mumbai.

14

US Secretary of State Mr. Colin Powell arrives in New Delhi for talks
with Indian leaders.

16

Supreme Court rules that States could prescribe their own norms for
admission into professional colleges.
Supreme Court directs Ten Sports to share its exclusive telecast rights
with Doordarshan for the remaining Indo-Pak cricket matches.

19

Congress leader Sh. K. Kilfunakaran, former CEC Sh. M. S. Gill and

SGPC Chief Sh. G.S. Tohra are among eight candidates elected to Rajya
Sabha.
Extended version of Pritllvi, medium range surface--to-surface missile, is
successfully test-fired.
Supreme Court revives a PIL challenging IIMs fee cut after HRD
ministry refuses to give a blanket undertaking not to interfere with
autonomy of these institutions.

22

Indian Airlines cuts fares by over 50 per cent on selected destinations.

23

Prasar Bharti bags the rights of cable and terrestrial telecast and radio
broadcasting for this year's Olympics in Greece.

Di.ary

ot Nati.ona\ 'Events
Eminent human rights activist Justice (retd) V. M. Tarkunde dies after
prolonged illness in New Delhi.

24

President issues notification for first phase of polls to be held on

20 April in 141 Parliamentary constituencies in 14 States and two Union
Territories.
India records its first ever one day cricket series victory over Pakistan.

25

Rabindranath Tagore's Noble Prize medallion, the citation, memorabilia

and art objects are stolen from Tagore museum in Shantiniketan.
Supreme Court rules that only Centre can enact laws on supply and
distribution of natural gas, including LPG.
Election Commission directs Civil Aviation Ministry to step up vigilance
at airports to check on cash being transported as part of passenger
baggage.

27

Election Commission asks lnformation and Broadcasting Ministry to

take appropriate action against airing of surrogate and slanderous
advertisements.

29

Sh. Virender Sehwag becomes the first lndian batsman to score a triple
century in a test cricket.

31

. Senior Akali Dal leader SGPC Chief Sh. G. S. Tohra passes away in
New Delhi.

APRIL

BSNL announces a 25 per cent cut in ISD and STD rates.

Supreme Court bans all political advertisements which offend viewers'

morality, decency and religious sentiments on cable networks and TV
channels.

Supreme Court warns that it would consider making slanderous

advertisements an electoral offence leading to disqualification. It gives
EC three days to frame guidelines to stop such ads.

All major political parties favour banning opinion and exit polls. The
demand was voiced at a meeting convened by the Election Commission.

Renowned Odissi exponent Kelucharan Mohapatra passes away in

Bhubaneshwar. He was 78.

Attorney-General Soli J. Sorabjee rejects Election Commission's proposal

for promulgating an ordinance banning pre-poll surveys and exit polls
during elections.

10

Delhi Police detects leakages of CBSE All-India Pre-Medical Examination

question papers. They arrest two MBBS students. CBSE cancels exams.

11

Former CM of Chhattisgarh Sh. Ajit Jogi is seriously injured in a car

accident near Raipur.

912
12

India 200S

21 women were killed in a stampede at a function organised on the

occasion of BJP leader Lalji Tandon's birthday in Lucknow.
Supreme Court orders a retrial in Best Bakery case outside Gujarat. It
rules that the atmosphere in the state is still not conducive for a fair
trial. The apex court also asks for a fresh probe, if necessary, by
investigating agencies.

13

Supreme Court orders that no political adVertisements would be telecast

without the prior approval of the Election Commission.
Infosys Technologies becomes India's first listed IT firm to have crossed
$ one billion turnover, with revenue of Rs 4,760.89 crore for 2003-04.

15

Justice S. Rajendra Babu will be the next Chief Justice of India. He will
assu~e charge on 2 May and will hold office for 31 days.

17

Leading South Indian actress Soundarya and three others are killed
when their fourseater aircraft crashes near Banglore.

19

Supreme Court rules that audience in cinemas need not stand when
national anthem is sung as part of a movie.

20

As per Election Commission an estimated SO-55 per cent people cast

their votes in the first phase of Lok Sabha elections.

22

Supreme Court lays down fresh guidelines for the appointment of CBI
Director. It asks Centre to draw a panel of IPS officers from four senior
most batches for selection to the post.

25

INS Tarangini on returning after circumnavigating the globe and visiting

18 countries, is welcomed in Kochl at a ceremony attended by President
Dr. A.P.J. Abdul Kalam.

26

As per Election Commission an estimated 55-60 per cent people cast

their votes in the second phase of Lok Sabha elections in 136
constituencies in 11 States.
Supreme Court declines to pass an interim order on a petition seeking
a ban on exit polls.

MAY
1

Ban on smoking at public places, including railway premises and in

trains, direct or indirect advertising of all tobacco products and their
sale comes into effect across the country.
Madhya Pradesh Governor and former UP Chief Minister Sh. Ram
Prakash Gupta passes away in New Delhi. He was 82.

Justice S. Rajendra Babu swears in as 34th Chief Justice of India. He

takes over from Justice V. N. Khare.

''Qr. A.P.J. Abdul Kalam visits Line of Contlol in J&:K, the first ever by
a President of India.

Diary of National Events

5

913

An estimated 50 to 55 per cent voters exercise their franchise in the

third phase of Lok Sabha elections in 83 constituencies in seven States.
Supreme Court gives go-ahead to UGC to introduce Vedic Astrology
courses in universities.
Century's first Simhastha Mela concludes in Ujjain.

Supreme Court stays Patna High Court order directing Election

Commission to disqualify those candidates who are contesting the
elections from jails and to countermand polls in these constituencies.
For the first time China officially shows Sikkim as part of India.

10

An estimated 50 to 5S per cent voters turnout in the final phase of

elections for the fourteenth Lok Sahha in 182 constituencies in 12 States
and four Union Territories.

11

Congress-led alliance sweeps polls in Andhra Pradesh. TOP Chief

Minister Sh. Chandra Bahu Naidu resigns.

13

Electorate decisively rejects NDA and votes for Congress led coalition
at the Centre.
Prime Minister Sh. Atal Behari Vajpayee resigns following NDA's defeat
in General Elections.

14

Dr. Y. S. Rajasekhara Reddy of Congress swears in as new Chief

Minister of Andhra Pradesh.

15

Congress Parliamentary Party formally elects Smt. Sonia Gandhi as its

leader.

16

22-member Council of Ministers, headed by Chief Minister Sh. Naveen

Patnaik assumes charge of Government in Orissa.

17

President Dr. AP.J. Abdul Kalarn invites Smt. Sonia Gandhi, leader of
Congress Parliamentary Party and of the newly constituted United
Progressive Alliance, for discussions on formation of Government at the
Centre.
For the first time in its 129-year existence, BSE Sensex nosedives to an
all time low of 564.71 points to end the day at 4,505.16 points.

18

Congress President Smt. Sonia Gandhi declines to accept Prime

Minister's post.

19

Or. Manmohan Singh elected leader o! Congress Parliamentary Party.

President appoint him as Prime Minister of India.
Former Kerala Chief Minister and CPI (M) veteran, Sh. E.K. Nayanar
dies at New Delhi.

21

Allahabad High Court restores the four administrative divisions and

rU.rk districts, which have been abolished by Uttar Pradesh Government

th,fough a notification,

914

India 2005

22

Dr. Manmohan Singh swears in as Prime Minister of India along with

United Progressive Alliance's 68 members as Council of Ministers in a
ceremony at Rashtrapati Bhawan.

23

Shiv raj Patil is the new Union Home Minister and Sh. P. Chidambaram
the Finance Minister, Sh. Pranab Mukherjee will be the Defence
Minister and Sh. Natwar Singh the External Affairs Minister and
Sh. S. Jaipal Reddy holds lekB Ministry
First session of Lok Sabha will be held from 2 to 10 June. Rajya Sabha
will meet from 4 June and President will address a joint session of
Parliament on 7 June.

24

Elections to 60 Rajya Sabha seats covering 14 States will be held on 21

June to fill vacancies caused by retirement of several members.

2S

Justice Ramesh Chandra Lohati is appointed Chief Justice of India. It

will be effective from 1 June.
Sh. Bhishma Agnihotri, New York based Ambassador-at-Iarge for NRls
and PIOs, resigns.

26

Former Foreign Secretary, Sh. J.N. Dixit is appointed National Security

Adviser.

27

Ruling UPA unveils Common Minimum Programme (CMP), outlining

six basic principles for governance.
Defence Minister Sh. Pranab Mukherjee becomes leader of the House
in Lok Sabha.

28

Congress Legislature Party leader Sh. Dharam Singh takes oath as new
Chief Minister of I<amataka and Janata Dal (S) leader Sh. Siddharamaiah,
as Deputy Chief Minister.
UP Government files an SLP in Supreme Court challenging Allahabad
High Court's judgement setting aside a Government notification
scrapping creation of nine districts and four divisions in the State.
Union Cabinet approves the CMP. It also creats a National Advisory
Board.

29

Country's first indigenously built civilian aircraft, 'Saras' records its

maiden test flight at the HAL airport jn Bangalore.

Or. M. S. SWariUnathan, eminent agricultural scientists, will head the

National Commission on Farmers.

Former
Chief Sh. M.K. Narayanan is appointed Special Advisor in
the PMO.
30

CBSE is set to introduce a grading system for its Class X examination

from 2006.

31

UPA Government offers the post of Deputy Speaker of the !.ok $abba
to the BJP, the principal opposition party.

Diary of National Events

915

JUNE
1

Vice-Admiral Arun Prakash will be new Chief of Naval Staff.

Former Prime Minister Sh. Atal Behari Vajpayee is elected Chairman of
BJP Parliamentary Party, while Sh. L.K. Advani is elected leader of the
Opposition in Lok Sabha.
Justice Ramesh Chandra Lahoti takes oath as Chief Justice of India.

Government decides to put a 49 per cent cap on FDI in the modernisation

of Mumbai and Delhi airports.
Noted poet, writer and columnist Dom Moraes passes away in
Mumbai. He was 65.

Sh. Somnath Chatterjee is unanimously elected Speaker of Lok Sabha.

Supreme Court stays the election of 65 Rajya Sabha members in
response to a petition questioning amendments made to Representation
of the people Act in 2003.
Supreme Court directs Centre to begin work on the construction of
Sutlej-Yamuna Link Canal. The canal work is supposed to be done by
the Punjab Government.
Eminent historian Sh. Mushirul Hssan is appointed Vice-Chancellor of
Jamia Milia Islamia.
India's second indigenous stealth warship, 'Satpura' is launched in
Mumbai.

Government appoints senior advocate Sh. Milon Banerji as AttorneyGeneral of India.

Indian Space Research Organisation bags a $ 10 million contract to
launch a satellite for the European Union.

Railway Minister Sh. Laloo Prasad Yadav orders that Khadi be used for
bedrolls, furnishing and curtains in all trains.

Supreme Court vacates stay on election to 65 seats of Rajya Sabha and

allows Election Commission to announce a revised schedule for the
polls in 14 States.
Shiron1.ani Abli Dal leader Sh. Charanjit Singh Atwal is unanimously
elected Deputy Speaker of Lok Sabha.
Central Bureau of Investigation which was under the charge of Prime
Minister, is now with the Department of Personnel and Training.

10

Olympic flame arrives in Delhi from Beijing by a special flight.

11

India's Ambassador to Nepal Sh. Shyam Saran is named the Foreign

Secretary.
Petroleum Secretary Sh. B.K. Chaturvedi will be the new Cabinet

Secretary.

916

India 2005

12

HRD Ministry appoints a panel of three historians to review NCERT

history textbooks and to suggest corrective measures.

13

Seventh flight of Brahmos, the supersonic cruise missile jointly developed

by India and Russia, takes place successfully from interim test range at
Chandipur-on-sea.

14

Ticketless train travellers will have to pay five times the existing
penalty.
Finance Minister Sh. P. Chidambaram will present UPA's first General
Budget in Lok Sabha on 8 July, two days after Sh. Laloo Prasad Yadav
announces Railway Budget.

15

President approves appointment of Sh. Ronen Sen as India's Ambassador

to Washington, Sh. Kanwal Sibal to Moscow, Sh. Kamlesh Sharma as
High Commissioner to London, Sh. Nirupam Sen as Permanent
Representative to the UN in New York and Ms. Nirupama Rao as High
Commissioner to Colombo.

16

Sh. Balram Jakhar and Sh. R.L. Bhatia arc appointed Governors of
Madhya Pradesh and Kerala respectively.
Sh. Montek Singh Ahluwalia, Economist, is appointed Deputy Chairman
of Planning Commission.
Mangalore-Kurla Matsyagandha Express of Konkan Railways derails
killing 19 people and injuring 100.

18

Almost all States agree to implement the much-delayed nation-wide

Value Added Tax from 1 April 2005.
Centre announces a major debt relief package for farmers. The package
includes raising farm credit by 30 per cent.

19

Central Government decides to continue negotiations with National

Socialist Council of Nagaland (Isak-Muivah) that began during NDA
Government.

21

Election Commission stays declaration results to Rajya Sabha from UP.

London based expert tells that Tehelka tapes on corruption in defence
deals are original and have not been overdubbed.

22

India and Pakistan agree in principle to reopen their consulates in

Karachi and Mumbai.

23

Prime Minister Dr. Manmohan Singh appoints 12 members to the

National AdvisOry COWlCil on National Common Minimum Programme.

24

In his first address to the nation Prime Minister Dr. Manmohan Singh
unveils his prescription for giving economic reforms a human face.
Promising growth with equity .and social justice, Dr. Singh reaffirms his
Government's resolve to generate employment and promote distributive
justice.
.

Diary of National Events

917

25

Election Commission says returning officer's decision in rejecting the

nominations of two Congress candidates for UP Rajya Sabha elections
is final.

26

11 candidates including Sh. Anil Ambani, Smt. Jaya Bachchan and

Sh. Lalit Suri are elected unopposed to Rajya Sabha from UP.
Noted filmmaker Yash Jahar passes away in Mumbai. He was 75.

28

Empowered Group of Ministers on restructuring the Delhi and Mumbai

airports approves reduction in FDI in the modernisation process from
74 per cent to 49 per cent.

29

Sh. Dhirendra Singh will be the new Union Home Secretary.

Prime Minister Dr. Manmohan Singh proposes new measures to combat
rural poverty at CM's conference on Panchayati Raj. These include
routing grants directly to district authorities and creating rural hubs for
agro-industries.
UPA Government orders withdrawal of previous Government's directive
slashing the fee of IIMs. The withdrawal follows the agreement by IIMs
to provide scholarships to poor students.

30

Indian Economy posts 8.2 per cent growth in 2003-04 to become one of
the fastest growing economies in the world.
President Dr. A.P.J. Abdul Kalam confers Padma Awards on 86 eminent
personalities from various walks of life.
.

JULY
1

HRD Ministry decides to reconstitute the Central Advisory Board of

Education (CABE).
Government constitutes the new National Security Advisory Board
(NSAB).

Government removes four Governors - Sh. Kidar Nath Sahani of Goa,

Sh. Kailashpati Mishra of Gujarat, Sh. Babu Parmanand of Haryana and
Sh. Vishnu Kant Shastri of Uttar Pradesh.
Air Marshal Ajit Bhavani 'will be the new Commander-in-Chief of the
Strategic Forces Command. The command manages cOlmtry's nuclear
arsenal.
Government appoints Central Public Works Department as the agency
to complete Sutlej-Yamuna Link Canal.

A short-range variant of Agni missile is successfully test-fired. It has

capability to strike targets up to 700 km range.

918
5

India 2005
Sh. Nawal Kisho~ Sharma, Sh. A.R. Kidwai, Sh. T.V. Rajeshwar and
Sh. S.c. Jamir are named Governors of Gujarat, Haryana, Uttar Pradesh
and Goa respectively.
President Dr. A.P.}. Abdul Kalam presents awards for gallantry and
distinguished service to 81 defence and security personnel at Rashtrapati
Bhawan, New Delhi.
-

Railway Minister Sh. Laloo Prasad Yadav presents his maiden railway
budget.
Board of Governors of six IIMs decides to grant full tuition fee waiver
to all the admitted students whose annual gross family income is below
Rs two lakh.

Government appoints Sh. Ajit Kumar Doval as the new Director of

Intelligence Bureau.
Prime Minister firmly rules out sending troops to Iraq.

Union Finance Minister Sh. P. Chidambaram presents the Budget

2004-05 in Parliament. The highlights are: 30 per cent extra rural credit,
Customs duty cuts and excise exemption for tractors and agril dairy
machinery, tax holiday for agri processing, two per cent education cess
on all taxes. No income tax for persons with taxable income of Rs one
lakh and Service tax hiked to 10 per cent etc.

President Dr. A.P.J. Abdul Kalam confers Jawaharlal Nehru Award for
International Understanding on Singapore Prime Minister Mr. Goh
Chok Tong at Rashtrapati Bhavan, New Delhi.
Government withdraws 6.5 per cent tax free Savings Bond scheme and
two deposit scheme for retiring employees.
Government makes environmental clearance mandatory for townships,
commercial complexes and other buildings involving an investment of
over Rs 50 crore.

12

Punjab Assembly terminates all agreements relating to Sutlej, Beas and

Ravi river water and discharged itself from its obligations under the
1981 agreement with Haryana and Rajasthan on water sharing.
US Deputy Secretary of State Mr. Richard Armitage arrives in New
Delhi on a two-day visit.

13

Muslims in Andhra Pradesh will now be given five per cent reservation
in educational institutions and Government jobs.

14

Railway Minister Sh. Laloo Prasad Yadav orders a high powered

departmental inquiry into Godhra carnage in Gujarat.

15

Centre moves Supreme Court seeking fresh directions on construction

of the Sutlej-Yamuna-Link canal.
UNDP says India's rank in Human Development Index stands

Diary of National Events

919

unchanged at 127 during 2002 with reduced per capita income and
slight improvement in literacy rate.
16

87 school children are burnt to death and 23 seriously injured as fire

rages through a primary school in Kumbakonam town of Thanjavur
district in Tamil Nadu.

18

Prime Minister Dr. Manmohan Singh writes to all Chief Ministers about
the need to reform public institutions at State and Central levels.

19

Supreme Court directs the Centre to disburse the relief amount of

Rs 1,503 crore among the five lakh Bhopal gas victims. The amount is
lying with Reserve Bank of India.

20

Himachal Pradesh decides to move Supreme Court, challenging Punjab's

termination of all water sharing accords.

21

Centre directs NCERT to review the National Curriculum Framework.

Gujarat Government extends the scope of inquiry of Nanavati
Commission probing Godhra train carnage and its aftermath.
Andhra Pradesh Government decides to lift the eight year old ban on
PWG.

22

Chartered accountant-turned-educationist Sh. K. Rahman Khan of

Congress Party is unanimously elected Deputy Chairman of Rajya
Sabha.
Central Government files a Presidential Reference in Supreme Court on
construction of Sutlej-Yamuna Link Canal seeking court's opinion on
Punjab Government's enactment of Punjab Termination of Agreements
Act, 2004.
To secure release of three Indians taken hostage by an Iraqi militant
outfit, India gets in touch with its embassies in Iraq, Kuwait and the
US.

23

Actor Om Puri makes it to Queen's honours list this year with the
prestigious 'Order of the British Empire' for his outstanding services to
film industry.
Legendary comedian Mehmood passes away in Pennsylvania, the US,
while undergoing medical treatment. He was 72.
Centre sets up a crisis management group to negotiate release of the
three truck drivers abducted in Iraq. Minister of State for External
Affairs Sh. E. Ahmed will head it.

Prime Minister Dr. Manmohan Singh asks Union Coal Minister

Sh. Shibu Soren to resign followirig court warrant against him in a case
relating to Jharkhand movement of the seventies.
.
The second report of Kelkar Committee, dea~g with direct and
indirect taxes maintains its original recommendation of three tax slabs
for income tax along with abolition of all exemptions except those
relating to housing loans, senior citizens and women.

920

India 2005

24

Prime Minister Dr. Manmohan Singh receives the resignation of JMM

leader and Coal Minister sh. shibu Soren.

26

Government decides to grant oil companies limited freedom to fix the

prices of petrol and diesel.
Reserve Bank of India decides to amalgamate the failed Global 'Trust
Bank with Oriental Bank of Commerce.

27

Centre withdraws the previous NDA Government's order on routing all

donations to educational institutions through Bharat shiksha Kosh.

28

Prime Minister Dr. Manmohan Singh asks Cabinet colleagues not to

tum up at the airport to see him off as he leaves for Bangkok on his
first official visit.

29

Union Information and Broadcasting Minister sh. 5. Jaipal Reddy

makes AIDS prevention a priority and assures free air time to AIDS
advertisements on Doordarshan and AIR.

30

97 year old veteran parliamentarian and CPI leader Sh. Hiren Mukherjee
passes away in Kolkata.

31

Admiral Arun Prakash takes over as the new Chief of Naval Staff.

AUGUST
CBSE asks its affiliated schools not to fail children in class V down and
not to assign homework to students under class II.
2

Supreme Court quashes the notifications of Maharashtra and Andhra

Pradesh Governments banning manufacture and sale of Gutkha.
Former Navy Chief Admiral L. Ramdas gets jointly the Magsaysay
Award for peace and International understanding with Sh. Abdur
Rehman of Pakistan.
A Jamtara court rejects bail plea of JMM supremo and fortner Union
Coal Minister Sh. Shibu Soren and sends him to 14 days' of judicial
custody.

NDA withdraws its decision not to participate in parliamentary

committees.
Senior Citizens Savings Scheme carrying nine per cent interest rate
starts functioning.

Supreme Court rules if a patient dies because of an error of judgement

by a doctor, he is not criminally liable. But the doctor might have to
pay damages.
Government concedes Chairmanships of parliamentary standing
committees on home and finance to BJP.

Diary of National Events

7

921

Indigenously designed and developed main battle tank, Arjun rolls out
of the Heavy Vehicle Factory at Chennai.

HAL bags biggest ever export contract from Airbus Industries for
supply of 1,000 doors for its planes.
9

Lance Naik Jasgir Singh and Sapper Mohammad Arif walk into India
after five years in prison in Pakistan.
EPF organisation decides on an interim interest rate of 8.5 per cent for
the current fiscal for over three crore subscribers.

10

Union Cabinet gives it approval for repeal of POTA before it lapses on

23 October.
British Major, Cairn Energy strikes oil in Rajasthan.
Government decides to raise the minimum support price for paddy by
Rs 10 a quintal for Kharif crops of 2004-05 season.

12

Manipur Chief Minister Sh. Okram Ibobi Singh announces repeal of

Armed Forces Special Power Act, 1958 from the Imphal Municipal area.
Beijing informs New Delhi that Pareechoo lake in Tibet is overflowing
and its banks could break any time, triggering fresh fears of flash floods
in Himachal Pradesh.

13

Cabinet Committee on Prices, which monitor prices of essential

commodities, is reconstituted. It will be headed by Prime Minister and
have eight Cabinet ministers as members.
Indian passports will be made machine-readable to prevent delays and
long queues at airport immigration counters.

14

Addressing the nation on the eve of 58th Independence Day, President

Dr. A.P.J. Abdul Ka1am says the purpose of education is to create
enlightened citizens. He suggests that the expenditure on education
should be increased from four to six or seven per cent of GDP.
Sh. Sandeep Sawant'fi Marathi film Shwaas bags Swftma Kamal for best
feature film in this year's National Film Awards. Tamil film actor
Sh. Vikram wms best actor award for his performance in pjthamagan.

15

Fonner Gujarat Chief Minister Amarsinh Chaudhary passes away in

Ahmedabad. He was 64.

16

Cabinet Coautlittee on PoJitical Affairs meets to assess the situation in

Manipur after partialliftUig of the Armed Forces Special Powers Act.

17

In Athens '&ap snooter.Major R.ajyavalhan Singh Rathore wins first

ever individual silver medal for India in Olympic history.

18

Government says the recent Supreme Court judgement barring

employees from resorting to strike is under review.
Government cuts customs and excise duties on petroleum products to

check inflation.

922
19

India 2005
Indian weightlifters Pratima Kumari and Sanamacha Chanu are
suspended for two years after testing positive for banned drugs in
Athens.
Government rules out any direct negotiations with militants who are
holding three Indian truckers hostage in Iraq.
Government says it will explore the possibility of a cease-fire in
Manipur if insurgent groups accept Government's invitation for a
dialogue.

20

Ms. Bula Chowdhury becomes the first woman swimmer to cross seven
seas by conquering the Palk Strait.
HRD Minister Sh. Arjun Singh scraps the previous NDA Government's
order which requires universities to seek government permission before
entering into collaborations with foreign universities or institutions.

21

Madhya Pradesh Chief Minister Ms. Uma Bharti sends in her resignation
to BJP president following a non-bailable warrant issued against her by
a Hubli court.

22

The first prototype of Saras, the indigenously developed civil aircraft,

makes its inaugural flight at Banglore

23

Global rating agency Standard and Poor upgrades India's 'BB'

long-term foreign currency rating from stable to positive.
Sh. Babulal Gaur takes over as the new Chief Minister of Madhya
Pradesh as Ms. Uma Bharati resigns from the post following a nonbailable warrant against her.
Lok Sabha approves Railway Budget sanctioning Rs 81,166 crore for
2004-05 without discussion.

24

Election Commission announces that assembly polls in Maharashtra

will be held on 13 October and in Arunachal Pradesh on 7 October.
Union Sports Minister suspends weightllfting coaches Sh. Pal Singh
Sandhu and Mr. Leonod Taranenko of Belarus in the wake of doping
scandal involving top women weightlifters Pratima Kumari and
Sanamacha Chanu at Athens Olympics.
Supreme Court dismisses review petition by Punjab Government of SYL
Canal issue. The apex court upholds its 4 June order that directs Centre
to construct the canal's Punjab portion.

25

Prime Minister Dr. Manmohan Singh politely hut firmly refuses to

accept a representation from the opposition leaders.

26

Parliament approves the Union Budget with Lok Sabha passing the
Finance Bill 2004 with 55 amendments and Rajya Sabha returning it.

27

The controversial Permanent Residents (Disqualification) Bill falls short

of two-third majority in J&:K assembly and therefore could not be
passed.

Diary of National Events

923

National Film Award for non-feature film is announced. Best nonfeature film of the year award is shared by Sh. Anand Patwardhan's
"War and Peace" and Sh. Arvind Sinha's "Kaaya Poochche Maya Se".
28

Arunachal Pradesh Chief Minister Sh. Gegong Apang joins Congress

Party along with several Cabinet Minister.

29

Kerala Chief Sh. A.K. Antony submits his resignation to the Governor
Sh. R. L. Bhatia.
Country's indigenously developed Agni-II intermediate range ballistic
missile is successful1y test-fired.

30

Karnataka Government decides to withdraw all cases registered against

BJP leader Ms. Uma Bharati.
Prime Minister Dr. Manmohan Singh constitutes a Group of Ministers
to examine the issue of reservation for socially and economically
backward classes in private sector.
Government announces the appointment of Sh. M. Natarajan as DRDO
chief. He succeeds Sh. V. K. Aatre.
Railways will grant 75 per cent concession in sleeper class fare from 6
September to widows of defence personnel killed in terrorist action.

31

Government releases its first foreign trade policy to double India's share
of global trade in the next five years.
Congress leader Sh. Oommen Chandy swears in as Chief Minister of
Kerala.

SEPTEMBER
1

After 42 days in captivity, the three Indian truckers held by militants

in Iraq are released.
Lt. General Puneeta Arora, the first woman to reach the second highest
rank in the armed forces, takes over as Commandant of the Armed
Forces Medical College at Pune.

Professor Krishna Kumar of Central Institute of Education is appointed

the new Director of NCERT.
Union Cabinet approves the setting up of a high-level committee,
headed by the former Supreme Court judge, Justice U.c. Banerjee, to
probe the fire on the Sabarmati Express at Godhra, Gujarat.
All engineers, fresh graduates and those in employment, will soon have
to procure a license to take up jobs in companies or to offer professional
services. An independent multi-discipline engineering professionals'
body, to be set up by the Government, will issue these licenses.

Prime Minister Or. Manmohan Singh addresses a formal press conference,

the first by any Prime Minister in 12 years.

924
6.

India 2005
Science and Technology Minister Sh. Kapil Sib"l announces that India
achieves a major breakthrough in efforts to hasten the cure of
tuberculosis by discovering a new molecule.
Registrar General and Census Commission release the latest census
report on religion.

Tax payers in 12 major cities can now get refunds up to Rs 25,000

directly paid in their bank accounts.

Cricketer Rahul Dravid bags the prestigious ICC 'Player of the Year' and
'Test Player of the Year' awards in London. Speedster Irfan Pathan
declared as the 'Emerging Player of the Year'.

A meeting of the full Planning Commission, Chaired by Dr. Manmohan

Singh approves launching of Rs 2,020 crore food-for-work programme
in 150 districts. Sarva Shiksha Abhiyan scheme gets an additional
Rs 2,000 crore and agriculture gets Rs 540 crore more. Health and
Family Welfare gets a hike of Rs. 688 crore.

11

Reserve Bank of India raises CRR (Cash Reserve Ratio) of banks by half
a percentage point in two stages beginning 8 September.

12

Maharashtra police foil VHP bid to demolish the tomb of Afzal Khan
in Pratapgarh by detaining hundreds of activists.
Government permits duty-free imports of raw sugar for domestic
consumption.
Sh. Jagmohan Dalmiya is nominated Patron-in-chief of BCCI for three
years at the Board meeting in Chennai.

13

Government will bring in legislation in Parliament to set up a separate

Pension Fund Regulator.

14

Centre agrees to give about R., 3,000 crore to prepare for Commonwealth
Games in 2010.

15

Long Jumper Anju Bobby George wins Rajiv Gandhi Khel Ratna award.
Olympic silver medallist, Rajyavardhan Singh Rathore and cricketer
Harbhajan Singh figure in the list of 15 Arjuna awardees.

16

Supreme Court restrains Union Government from taking any step to

transfer the administration of mid-day meals in schools to State
Governments.
Information and Broadcasting Ministry warns film based television
channels of strict action if they continue to show offensive content.

17

Army orders court martial proceedings against Major Surinder Singh

on charges of faking killings of enemy troops at Siachen.
Cabinet approves an Ordinance for repealing POTA, while dearing
Amendments to the Unlawful Activities (Prevention) Act.

Diary of National Events

18

925

India announces visa liberalisation for Pakistani nationals. It covers

doctors, academicians and accredited journalists.
Vowing to weed out corruption from Judiciary, Chief Justice RC. Lahoti
declares 2005 as the year of excellence in Indian judiciary.

19

Prime Minister Dr. Manmohan Singh leaves on nine-day foreign trip to

London, New York and Geneva.

20

India launches EDUSAT, exclusive satellite for educational services.

Social worker Swami Agnivesh and Muslim scholar Asghar Ali
Engineer are chosen for honorary Right Livelihood Award.
Supreme Court dismisses a petition raising the question - why should
'Sindh', a part of Pakistan, be hailed in our national anthem and why
it be not replaced by a word 'Kashmir'.

21

The ordinances to repeal POTA and to amend an existing law to tackle

terrorism receive Presidential assent.

Bccr cancels telecast tender. Zee alleges Dalmiya-ESPN conspiracy.

Andhra Pradesh High Court quashes the order of State Government
providing five per cent reservation to Muslims in education and jobs.
22

All India Democratic Women's Association threatens to sue the Army

for subjecting women recruits through intimate medical tests by male
doctors.
Representatives of World Bank, Asian Development Bank and some
foreign consultancy organisations offer to withdraw from consultative
groups of the Planning Commission.

23

Andhra Pradesh Government invites Naxalite leaders for unconditional

talks.

24

Eminent scientist and doyen of India's nuclear programme, Sh. Raja

Ramanna passes away at Mumbai. He was 79.
Uttar Pradesh Government moves Supreme Court, seeking permission
to open Taj Mahal for tourists on moonlit nights during Taj festival.
National award winner Shwaas, a Marathi film directed by Sh. Sandeep
Sawant will be India's Oscar entry.
Government rules out selling its stake in Maruti Udyog Limited.

25

CBI arrests Central Excise Commissioner P.I<. Ajwani in Mumbai in

connection with disproportionate assets case.

26

Government issues visas to 18 Pakistani scribes to visit Jammu,

Srinagar, Anantnag and Gulmarg. The journalists, who are part of the
South Asia Free Media Association will spend five days in J&K. They
are free to meet anyone during their stay. The tour will begin on
3 October.

926
27

India 2005
Thumri vocalist Shobha Gurtu passes away in Mumbai. She was 79.
President Dr. A.P.}. Abdul Kalam favours the post of President being
brought under the purview of Lok Ayukt.
Former Lok Sabha MP and veteran socialist leader Sh. Kisan Patnaik
dies in Bhubaneswar. He was 73.

28

Renowned novelist, editor and art critic Sh. Mulk Raj Anand passes
away in Mumbai. He was 99.
Central Government issues detailed directions on austerity.Jlleasures to
save over Rs 2,000 crore annually.
Government constitutes a Group of Minister:s to probe cases of alleged
corruption during NDA regime. It also monitors the cases pending trial
and investigation.

29

Indian Olympic Association imposes a life ban on weightlifters Pratima

Kumari, Sanamacha Chanu, S. Sunaina and coach P. S. Sandhu.
Sh. Ranbir Singh Mahendra of Haryana get elected as President of
BCCI. He defeated Sh. Sharad Pawar by one vote.
Union Cabinet decides to set up a Group of Ministers to take a
comprehensive look at the print media policy and violations that may
have occurred over time.
Prime Minister Dr. Manmohan Singh says public functionaries, including
.
himself should be brought under the ambit of Lok Pal.

30

Planning Commission dissolves all panels it had set-up for mid-term

appraisal of tenth five-year plan.

31 General Information
PRESIDENTS OF INDIA
Name

Tenure

Dr Rajendra Prasad (18841963) ........................................ 26 January 195013 May 1%2

Dr SIIrvepalli Radhakrishnan (188B-1975) ....................... 13 May 1962-13 May 1967
Dr Zakir Husain (18971969) .............................................. 13 May 1%7-3 May 1969
Varahagirl Venkatagirl (18841980) .................................... 3 May 1969-20 July 1969
(Acting)
Justice Mohammad Hidayatullah (1905-1992) ................ 20 July 196924 August 1969
(Acting)
Varllhagiri Venkatllgiri (1884-1980) .................................... 24 August 196924 August 1914
Fakhruddin Ali Ahmed (1905-1977) ................................. 24 August 19'7411 February 1977
B.D. Jatti (1913-2002) ............................................................

February 197725 July 1977

(Acting)

Neelam Sanjiva Reddy (19131996) .................................. 25 July 1977-25 July 1982

Giani Zail Singh (1916-1994) .............................................. 25 July 198225 July 1987

R. Venkataraman (b-1910) ................................................... 25 July 198725 July 1992

Dr Shanker Dayal Sharma (l9181999) ........................... 25 July 199225 July 1997
K.R. Narayanan (b-1920) ..................................................... 25 July 199725 July 2002
Dr. A.P.I. Abdul Kalam (b-1931) ....................................... 25 July 2002till date

VICE-PRESIDENTS OF INDIA
Name

Tenure

Dr Sampalli Radhakrl...hmlll (1888-1975) ....................... 19521%2

Dr Zaldr HUMin (18971969) .............................................. 1962-1967
Varahagiri Venkataglri (1884-1980) .................................... 19671969
Gopal Swarup Pathak (18%-1982) .................................... 1969-1974

B.D. ,_ttl (1913-2002) ............................................................ 1974--1919

Justice Mohammad HidAYAtullah (1905-1992) ................ 19'19-1984
R. Venkataraman (b-1910) ................................................... 1984-1987

Dr Shanker o.YAI Sharma (1918-1999) ............................ 1987-1992

K.R. Narayanan (b-1920) ..................................................... 1992-1997
KrlshAn Kant (1921-2002) .................................................... 19972002

Bhairon Singh Shekhawat(b-1923) ..................................... 2002till

date

928

India 2005
PRIME MINISTERS OF INDIA
Tenure

Name

Jawaharlal Nehru (1889-1964) ............................................ 15 August 1947-27 May 1964

Gulzari Lal Nanda (1898-1997) .......................................... 27 May 1964-9 June 1964
(Acting)
Lal Bahadur Shastri (1904-1966) ...... ,................................. 9 June 1964-11 January 1966
Gulzari Lal Nanda (1898-1997) .......................................... 11 January 1966-24 January 1966
(Acting)
Indira Gandhi (1917-1984) .................................................. 24 January1966-24 March 1977
Morarji Desaj(1896-1995) ................................................... 24 March 1977-28 July 1979
Charan Singh (1902-1987) ................................................... 28 July 1979-14 January 1980
Indira Gandhi (1917-1984) .................................................. 14 January 1980-31 October 1984
Rlljiv Gandhi (1944-1991) .................................................... 31 October 1984-1 December 1989
Vishwanllth Pratap Singh (b-1931) .................................... 2 December 1989-10 November 1990
Chill1dra Shekhar (b-1927) .................................................. 10 November 1990-21 June 1991
P.v. Narllsimha Rao (b-I921) .............................................. 21
Atill Bihari Vlljpayee (b-1926) ............................................ 16
H.D, Dcve Gowda (b-1933) ................................................ 01
IX Gujral (b-1933) ............................................................... 21
Atal Bihari Vajpayee (b-1926) ............................................ 19
Atal Bihari Vajpayee (b-1926) ............................................ 13
Dr. Manmohan Singh (b-1932) ........................................... 22

June 1991-16 May 1996

May 1996-01 June 1996
June 1996-21 April 1997
April 1997-18 March 1998
Mllrch 1998 -13 October 1999
October 1999 - 22 MIlY 2004
May 2004 - till date

CHIEF JUSTICES OF INDIA

Name
Harilal

Tenure

J. Kania ..................................................................... 26 January 1950-6 November 1951

M. Patanjali Sastri ................................................................. 7 November 1951-3 January 1954

Mehar Chand Mahajan ........................................................ 4 January 1954-22' December 1954
. BX Mukherjea ...................................................................... 23 December 1954-31 January 1956
S,R, Das ................................................................................... 1 February 1956-30 September 1959
Bhuvaneshwar Prasad Sinha .............................................. 1 October 1959-31 January 1964
P.B. Gajendragadkar ............................................................. 1 February 1964-15 March 1966
A.K. Sarkar ............................................................................. 16 March 1966-29 June 1966
K. Subba Rao ......................................................................... 30 June 1966-11 April 1967
K.N. Wanchoo ........................................................................ 12 April 1967-24 February 1968
M. Hidayatullah .................................................................... 25 February 1968-16 December 197C

I.e. Shah ................................................................................. 17 December 1970--21 January 1971

S,M. Sikri ................................................................................ 22 January 1971-25 April 1973
A.N, Ray ................................................................................. 26 April 1973-27 January 1977
M.H. Beg ................................................................................. 28 January

19~-21

February 1978

Y.V. Chandrachud ............................................................... ,22 February 1978-11 July 1985

Prafullachandra ...................................................................... 12 July 1985-20 December 1986
Natvarlal Bhagwatl

929

General Information
R.S. Pathak ...................... .. ........ .......................................... 21 December 198(,-18

JUI\!!

1989

E.S. Venklltaramaiah ............................................................. 19 June 1989-17 Decemoor 1l)89

5. Mukherjee .......................................................................... 18 Decembl'r 1989-25 September 1990
Ranganath Mishra ................................................................. 26 September 1990-24 November 1991
K.N. Singh .............................................................................. 25 Nuvl'rnber 1991-12 December 1991

M.H. Kania ............................................................................. I3 Dl'Cember 1991-17 November 1992

I.M. Sharma ............................................................................ 18 November 1992-11 February 1993
M.N. Venkataehalaiah ......................................................... 12 February 1993-14 Cktober 1994
A.M. Ahmadi ...................................................................... 25 October 1994-24 March 1997

J.S. Verma .............................................................................. 2S March 1997-17 january 19<)8

M.M. Punchhi ....................................................................... 18 january 19<)8-9 October 19<)8
A.S. Anand ........................................................................... iO October 1<)98-31 October 20(11

S.P. Bharueha .......................................................................... 1 November 2001-5 May 2002

B.N. Kirpal ............................................................................. h May 2l)\12~7 November 2002

C.B. Pattanaiak ..................................................................... 1'1 November 2002--18 Decembl!r 2002

VN. Khare ............................................................................ 19 Decl'mber 2002-2 May 2004
S. Rajendra Sabu .................................................................. 02 May 2004-...m June 2004

R.c. Lahoti ............................................................................. 01 June 2004-till datI'

CHIH ELECTION COMMISSlONERS OF INDIA

Name

Tenure

Sukumar Sen .................................................................... 21 March 1950-19 December 1958

K.V.K. Sundaram ............................................................. 20 Dt.>cember 1958-30 Septl'mber 1967
S.P..Sen Verma ................................................................. 1 October 1967-30 September 1972
Dr Nagendra Singh ........................................................ 1 October 1972-6 Febnulfy 1973

T. Swaminathan ............................................................... 7 Febnlary 1973-17 June 1977

S.L. Shakdhar ........................................................... ..... 18 June 1977-17 June 1982

R.K. Trivedi ...................................................................... 18 )ul\e 1982-31 December 1985

R.V.S. Peri $astri .............................................................. 1 January 1986-25 November 1990
Smt VS. Rama Devi ....................................................... 26 November 1990-11 Dt.'Cember 1990
T.N. Seshan ...................................................................... 12 Dt.>cember 1990-11 Dt.>cembt.>r 1996
M.S. Gill ............................................................................ 12 Decembt.>r 19%-13 June 2001
J.M. Lyngdoh ................................................................... 13 June 2001 - 8 February 2004
T.S. Krishna Murthy ....................................................... 8 Febntary 2004 till date

CHAIRMEN OF UPSC
Name

Tenure

Sir Ross Barker ................................................................ 19261932

Sir David Petrie ........................................ .. .... .. .. August 1932-1936
Sir Eyre Gorden .............................................................. 1937-1942
Sir F.W. Robertson ......................................................... 19421947
SIl. H.K. Kripalani .......................................................... 1 April 194713 JanWlry 1949

India 2005

930

Sh. R.N. Banerjee ............................................................ 14 January 1949-9 May 1955

SIl. N. Gc)vindarajan ....................................................... 10 May 19559 December 1955
Sh. V.S. Hejmadi ............................................................. 10 December 19559 December 1961
Sh. B.N. Jha ...................................................................... 11 December 196122 February 1967
Sh. K.R. Damle ................................................................ 18 April 19672 March 1971
Sh. R.C.S. Sarlcar ............................................................. 11 May 19711 February 1973
Dr. A.R. Kidwai .............................................................. 5 February 1973-4 February 1979
Dr. M.L. Shahare ............................................................ 16 February 197916 February 1985
Sh. H.K.L. Capoor .......................................................... 18 February 19855 March 1990
Sh. J.P. Gupta .................................................................. 5 March 199Q..2 June 1992
Smt. R.M. Bathew (Kharbuli) ....................................... 23 September 199223 August 1996
Sh. S.J.5. Chhatwal ......................................................... 23 August 1996-30 September 1996
Sh. J.M. Qureshi .............................................................. 30 September 199611 December 1998
Lt. Gen. (Retd.) Surinder Nath .................................... 11 December 1998-25 June 2002
Sh. P.c. Hota ................................................................... 25 June 2002-8 September 2003
Sh. Mata Prasad .............................................................. 8 September 2oo3till date

CHAIRMAN AND MEMBERS OF THE UPSC

CHAIRMAN

Sh. Mata Prasad

MEMBERS
Dr. S.R. Hashim
Dr. (Smt.) Prakashwati Sharma
Sh. Gurbachan Jagat
Sh. B.N. Navalawala
Sh. Subir Outta
Prof. D.P. Agarwal
Air Marshal (Retd.) Satish Govind lnamdar
Ms. Parveen Talha
Dr. Bhure Lal

CIVILIAN AWARDS
Blumlt Ratnll

The award is given for exceptional service towards the

advancement of Art, Literature and Science, and in recognition
of public service of the highest order.

Padma Vibhuslutn

The award is given for exceptioMI and distinguished service in

any field including service renden!d by the Government servAnts.

Padma Bhushan

The award is given for distinguished aervice of high order in any

field including service rendered by the Government servanlll.

General Wormation
Padma Shrl

The award . . . b~"""""'.""'''' tI,

.",ice rendered by the ~ ~;, '::\":>f~';";:i;;:i;~;J;l,!:;?;

'*'

d.e

In pursuance of the Supreme Co\att', ,.,.,...,...

Covemment
CDI......
chaired by the Vk::e-Praident of 1rIdia, to SO into the SuidefiMt
lor the Padma Awards and certain other alt*ft. The 'Review Committee submitted itl report
in November 1996 and the same has been ,u:ceplecl by the Gov~t The ilf6tilUtion 01 tluttIe
~w~rds has been revived since 1997.

High Level Review Committee

RECIPIENTS OF BHARAr RATNA

Name

Awarded in

Chakravarti Rajagopalacharl (1878-1972) .......... ,............................ ,...... ,....... 1954

Dr ~rvepalJi Radhakrishnan (1888-1975) .................................................... 1954

Dr ChRndraselchar Venlcat RRman (1888-1970) ........................................... 1954
Dr Bhllgwlln Oas (1869-1958) .... ' .................................................................... 1955
Dr Mokshagundam VlSvesvaraya (1861-1962) ............................................. 1955
J~waharlal

Nehru (1889-1964) ......................................................................... 1955

Govind BAllIIbh Pant (1887-1961) ................................................................... 1957

Dr Dhondo Keshave Karve (1858-1962) ...................................................... 1958
Dr Bidhan Chandra Roy (1882-1962) ........................................................ 1961
Punlshottam Das Tandoll (1882-1962) ........................................................ 1961
Dr Rajendra Prasad (1884-1963) .................... ' .......................................... ]962
....................................... 1963
Dr Zakir Husain (1897-1969) ...................
Dr Pandurang Vaman Kane (l880-1CJ72) ................................................... 1963

Lal Bahadur Shastri (PosthuJIlous)

(1'104-1%6) ..........................................

1966

Indira Gandhi (1917 . .1984) .,., .... ,... ", ............................................................... 1971

Varahagiri Venkatagiri (lB84-1980) .............................................................. 1975

Kumaraswami Kamraj (Posthumous) (1903-1975) ...................................... 1976

Mary Teresa Bojllxhiu (MOlht>r Ten'Sa) (1910-1997) ................................... 1980
A.chllrya Vmo'bha l\hll\le \.1'l)'i>\"\\t'l\Q\.\~) ~\1'>,)5-1,}"''2.) ................................... 19S?

Khan Abdul Chlliiar KhaJl (1890-1988) ........................................................ 1987

Mamdu Gopalan Ramac\u\\dtll\\ \\,o>tnu\\\ous) ~19\7-19S7) ................... 1988

Dr Shim Rao Ramji Ambedkar (Posthumous) (1891-1956) ...................... 1990
Dr Nelson Rollhlahla Mandela (b-1918) ....................................................... 199()
Rajiv Gandhi (Posthumous) (1944-1991) ....................................................... 1991
Samar Vallabhbhai Patel (Posthumous) (1875-1950) .................................. 1991
Morarji Ranchhodjl Desai (1896-1995) ........................................................... 1991
Mllulana Abul kalam Azad (ptlsthumous) (1888-1958) ............................ 1992

)ehangir Rata",i Dadabhai Tata (1904-1993) ............................................... 1992

Satyajlt Ray (Posthumous) (1922-1992) ......................................................... 1992
Aruna Alaf Ali (Posthumous) (1909-1996) ................................................... 1997

Gulzan Lat Nanda (posthumous) (1898-1997) ............................................ 1997

Dr AvuI Palcir J.inulabdeen Abdul Kalam (b-1931) .................................. 1997

932

India 2005

Madurai Shanmukhavadivu Subbalakshmi (1916-2004) ............................ 1998

Chidambaram Subramaniam (1910-2000) ..................................................... 1998
Loknayak layaprakash Narayan (Posthumous) (1902-1979) ..................... 1999
Professor Amartya Sen (b-1933) .....................................................................
Lokp~iya Gopinath Bordoloi (posthumous) (1890-1950) ...........................
Pandir- Ravi Shankar (b-1920) .........................................................................
511shri Lata Dinanath Mangeshkar (b-1929) ................................................
Ustad Bismillah Khan (b-1916) .......................................................................

1999
1999
1<)99
2001
2001

Padma Awards: Padma awards are amongst the highest civilian awards of
the country. There are three categories of Padma Awards - 'Padma Vibhushan',
.Padma Bhushan' and 'Padma Shri'. These are given for distinguished servict'
in any field including Art, Literature and Education, Science and Technology,
Sports, Medicine, etc. Padma Awards are announced on the eve of the
Republic Day every year.

PADMA AWARDS CONFERRED IN 2004

Padma Vibhushan Recipients

Ms. Amrita Pritam

Prof. layant Vishnu Narlikar
Shri Manepalli Narayana Rao Venkiltadlaliah

Padma Bhushan Recipients

5mt. Alarm!'1 Valli

Dr (Lt. Gen) Bijoy Nandan Shahi
Justice (Retd.) Shri Chandrashekhar Shankar
Dharmadhikari
Dr. (Prof.) Chennilmaneni Hanllmantha Rao
Prof. Gopi Chand Narang
Prol. Govindarajan Padmanilbhan
Shri Guizar
Shri Komal Kothari
Dr. KristUla Srinivas
Shri Madhav Vittal Kamath
Shri Madurai Thirumalai Nambi Seshagopalan
Dr. (Smt.) N. Rajam
Smt. Poomima Arvind Pakvasa

'..tilt

Prof. Samara Singh Johl

Shri Sourr ;tra Chatterjee
Shri Thiruvengadam Lakshman Sankar
Shri ThoppU Varghese Antony

Shri Vishnu Prabhakar

Shri Yoshiro Maci

Padma Shri Recipients

74

persons

General Information

933

Jeevan Raksha Padak Series of Awards : The Jeevan Raksha Padak series
of awards are given for courage and promptitude under circumstances of great
danger to the life or bodily injury of the rescuer, displayed in an act or a
series of acts of humane naturc, in saving the life of a person from drowning,
fire, rescue operations in mines, etc. There are three categories of Jeevan
Raksha Padak Awards viz., Sarvottam Jeevan Raksha Padak, Uttam Jeevan
Raksha Padak and Jeevan Raksha Padak. Recommendations for Jeevan Raksha
Padak series of awards are received from the State Governments/Union
Territory Administrations and Ministries/Departments of the Government of
India. On the basis of the recommendations of the Awards Committee, this
year the President approved the award of Uttam Jeevan Raksha Padak to 5
persons and Jeevan Rakshil Padak to 23 persons for the year 2004. No
Sarvottam Jeevan Raksha Padak award was announced this year.
SA!\'GEET NATAK AKADEMI AWARDS 2003
MUSIC
Ghulaln Mustafil Waris Khiln

Hilldustitl11 Music - V(lciti

Ycshwalll Balkrishllil Joshi

Hmdustilni Mu!Sic - VomJ

Arvind Natvcrlal Pilrikh

HiJldu.~/illli

Bhawani Shankar Kathak

Hilldust.lni Music - lnstnrmelltill (pitkhawaj)

Trichur Vairlyanatha Rilmachillldran

Cilrnittic Mu!>ic - VOCilJ

Mandayam Annadorai NarasimhiKhar

CUllillic MusIC - Vocal

Avasarala Kanyakumari

Citnliltic

Kadri Gopalnilth

CreMiVC' Music - In!>tnlllll'ntcll (SIlxopllOlle)

MusIC - Ins/nllllC'l1tdJ (SitM)

MUSic -

Instnllllt'lltill (Violin)

DANCE
Chenltaril K. Balagopi!li!n

BhariltitllatYitm

SUI1i!yana Ha7.iuilal A):larwal

Katllilk

Urmila NilF,M

Kittllilk

Sadilllillll

r.v.

Balakrishnan

Kathakali

Thiyam Suryamukhi Ot'vi

Mill1ipuri

Kali!vilti Dl'vi

Manipuri

K. UIlli! Rami! Rao

Kuchipudi

Hare Krishna Behere

Odissi

THEATRE

Anm Sanna

PIa ywritillg - ASSII/JIese

Riltnakar Rilmkrishna Malkari

Playwriting - Mara/hi

Devendra Raj Ankur

Direction

Neelam Mansingh Chllwdhry

Directioll

Saoli Mitra

Acting - Bellgi!li

c.R.

Acting - Kallllada

Simha

Sreenivas G. Kappanna

Allied Theittre Arts UghtillS iflld

Sti!8e ~igll

Arumt Gopill Shinde

Allied Theatre Arts Mdke-llp

934

India 2005,
TRADmONAL/FOLX/TRlBAL MUSIC, DANCE, mEATRE AND PUPPETRY

uisram Blrendrakum,lIr Singh

Folk and 1Hbal Music - Manipur

Prabhllt Sarma

Traditional lind Folk Music Assam

Leela Omchery

Traditional lind Folk Music -Kerala

Chukka Salthiah

Osgu Katha - Andhn Pradesh

Bhalchandra Vyankatesh Pendharkar

Natya Sangeet - Milharashtra

Banamali Maharana

Odissi Music - Orissa

Puran Bhaat

Puppetry - Rajasthan

Kosha Kanta Deva G05warhi

Mask Milking (Bhaona) - AIi.'iltm

SCHOLARSHIP /OVERALL CONTRIBUTION IN PERFORMING ARTS

P. V. Subramaniam 'SUBBUDU'

SAHITY A AKADEMI AWARDS 2003

unguage

Author

Title and Genre

ASSillllese

Bireswar Barna

Anek Millluh Anek 11l1ti Am Nirjanata

(Poetry)

Bengali

Prafulla Roy

KraJJtikal (Novel)

Dogri

ute Sshwani Magotra

lhull Bada Dea Pattara (Poetry)

English

Meenakshi Mukherjee

The Perishable Empire: Essays on Indian

Writing in English (Essays)

Gujarati

Bindu Bhatt

Akhepatar (Novel)

Hindi

Kamaleshwar

Kitne PakistaJl (Novel)

Kannada

K. V. Subbanna

Kaviraja Marga Mllttu Kltnnllda Jagltttu

(Essays)

Kashmiri

ute Somnath Zutshi

Yeli PhoJ Gaash (Short Stories)

Konkani

ute Shashank Sitaram

Pltrigh (Short Stories)

Maithili

Niraja Renu (Khamakhya Devi)

Ritambhara (Short Stories)

Malayalam

Sara Joseph

Alahayude Penmakkal (Nowl)

Manipuri

Sudhir Naoroibam

Leiyee Khalil Punsi Khan (Short Stories)

Marilthi

T.V. Saradeshmukh

Dangora : Elat Nagaricha (Novel)

Nepali

Bindya Subba

AtJlah (Novel)

Oriya

Jatindra Mohan Mohanty

Suryasnlltll (Criticism)

nkri

Punjabi

Charan Dalill Sidhu

8ha8'lt Singh Sltahid : Natal<

Rajasthani

Santosh May. Ml)Mn

Simalltn (poetry)

Sanskrit

Bhaskaracharya l'ripathl

Nirj]utlini (Poetry)

Sindhi

Hiro Thakur

1lthquq Am 1ltnqeed (Essays)

Tamil

R. Vairamuthu

KalJibttu Ithilcasltm (Novel)

Telugu

UtpIIla Satyanarayanacharya

Srt KriIhna C'handrodayamu (poetry)

Urdu

Syed Muhammad Ashraf

Bttade-e-Saba Ka Intizar (Short Storiel)

(Play)

General Information

935
NOBEL LAUREATES

AMARTYA SEN (b-1933) : Prof. Amartya Sen is the recipient of the Notx>l Priz.e fOf Economics
for the year 1998, becoming the first Allia!) to have been honoun'd with the award. The
Santiniketllnbom economist who is a pioneer in Welfare Economics has to hi" credit several
books and papers on aspects of welfare and development. An economist with a diffen'llce,
Prof. Sen is ,\ humanist. He has distinguished himself with his out~tanding writings on famine.
poverty, democracy, gender and social isfIues. The 'impossibility theorem' suggested earlit'r by
Kenneth Arrow sllites that it was not poSSible to aggregate individual choices into a satisfactory
chl)ice for society as a whole. Prof. Sen showed mathematically that societies could find ways
to alleviate such a poor outcome.
SUBRAMANIAN CHANDRASHEKAR (llJlO-1995) : The Nobel Prize for Physics in 1983 was
awarded to Dr S. Chandrashekar, an Indian-born astrophysicist. Educated in Presidency College.
Chennai, Dr Chandrashekar happened to be the nephew of his Nobel forbear, Sir

c.v.

Raman.

He later migrated to the United States where he authored Sl.'veral books on Astrophysics and
Stellar Dynamics. He developed a theory on white dwarf stars which posts a limit of mass of
dwarf stars Known also as Chandrashekar Limit. His theory explains the final stages of stellar
evolution.
MOTHER TERESA (1910-1997) : The Nobel Peace Prize was awarded to Mother Teresa in 1971J.
Albanian pftrentage, Agnes Gonxha Bojaxhiu was born at Skopje, now in Yogoslavia. She joined
the Irish order of the Sisters of Loretto at Dublin in 1928 and clune to Kolkata in 1921J liS

it

missionary, only to find the misery of the abandoned and the destitute. Concern for the poor
and the sick prompted her to found a new congregation, Missionaries of Charity. ) laving become
an Indian Citizen, Mother Teresa served the cause of dying destitutes, lepers and dmg addicts,
through Ninnal Hridity (meaning Pure Heart), the main centre of her activity. Her selfless service
lind unique devotion, not only to helpless fellow-Indians but also to the cause of world peace,
earned her and India the first Nobel Peace Prize.
HARG08IND KHORANA (b. 1922) : Hargobimi Khorana was awarded the Nobel Prize for
Medicine In 1%8.

or Indian origin, Dr Khorana was boOt in RIIipur. Punjab

(now in Pakistan).

He took his doctoral degree in Chemistry from Liverpool University and joined the University
of Wisconsin as a Faculty Member in 1960. His major breakthrough in the field of Medicineinterpreting the genetic code and analysing its function in protein synthesis - fetched him the
Nobel Prize.
CHANDRASHEKAR VENKATARAMAN (1888-1970) : India's first Nobel Prize fur Physics was
claimed in 1930 by the renowned physicist Sir C.V. RIIman. Born at Thimvanaikkaval !\ear
nruchirapalli in Tamil Nadu, Raman studied at Presidency College, Chennai. Liter, he served
1111

Profell8Or of Physic!; at Calcutta Univers.ity. Recipient of many honours and awards, including

the title of 'Sir', Sir C.V. Ramah received the Nobel Prize for an important op~ics research. in
which he discovered that diffused light \.'Ontained rays of other wavelength.... -what is now
popularly known as Raman Effect. His theory discovered in 1928 explains the chllnge in the

frequency of light passing through a transparent medium.

RABINDRANATH TAGORE (18611941) : RIIbindrilMth Tagare was the filllt Indian ever to

receive a Nobel Prize. Popularly known as GUlUde", India's Poet Laureate Tagare was bom
on 7 May 1861 in Kolkata. He was awarded the Nobel Prize for Uterature in recognition of
his work GeetltlljltJi, a collection of poems, in 1913. lagore wrote many love lyrics. Geetanja/j
and Sttdlwul are among hllll important worlcs. The poet, dramatillt and novelist is "Iso the author

936

India 2005

of India's National Antlll'm. In 1901 Ill' founded the fllmous Santiniketall which later camp to
be known

.IS

Vishwllbhllrllti University.
COMMANDERS-IN-CHIEF

Nllmf'

Tenure

General Sir Roy Bucher ................................................. 1 jllllllary

1'~48-14

january 1949

Gel1l.'ral (later Field Mllrshlll) K.M. Carillppa .......... 15 janullry 1949-14 january 1953
Gl'neral Milhiuaj Rajendra Sinhji .............................. 15 jllnuary 1953-31 Milrch 1955

CHIEFS OF ARMY STAFF

Name

Tcnufl'

General Mahara; Rajendra Sinhji ................................ 1 April 1955-14 May 1955

GCIll'ral S.M. Srinagesh .................................................. 15 Mily 1955-7 May 1957
General K.S. Thimayya .................................................. 8 May 1957-7 May 191i1
General R.N. TIlapar ...................................................... 8 MdY 1961-19 Noveml:ll'r 1962
General j.N. Choudhuri ................................................ 20 November 1'.162-7 june 1966
General P.P KUlllaramangalam .................................... 8 june 1966-7 june 1%9
General S.H.F.J. Manekshaw ......................................... 8 Jlllll' 1969-31 December 1972
Field Marshdl S.H.F.j. Manekshaw ............................. 1 janll,uy 1973-14 Januilry 1973
General G.t . Bewoor ..................................................... 15 January 1973-31 May 1(175
General T.N. Raina ......................................................... 1

)IUl('

1975-31 May 1978

General O.P Malhotra ................................................... 1 June 1978-31 May 1981

General K.v. Krishna Rao ............................................. 1 JUll!' 1981-31 July 1983
Gelwral A.s. Vaidya ....................................................... 1

Augu~t

1983-31 January 1986

Gl'm'ral K. Sunderji ........................................................ 1 February 1986-30 April 1988

General V.N. Shllrma ..................................................... 1 May 1988-30 June 1990
Generlll s.F. Rodrib'llI.'S ................................................... 1 july 1990-30 june 1993
General B.C. Joshi ........................................................... 1 July 1993-18 November 1'194
Generlll S. Roychowdhury ............................................ 22 November 1994-30 September 1997
Generill V.P. Millik .......................................................... 1 October 1997-30 Septemblr 2000
General S. Plldmllnabhan .............................................. 30 September 2000-31 Dt.>cember 2002
Generlll N.r:. Vii .............................................................. 1 JlIlluary 2U03 - till dllte
CHIEFS OF NAVAL STAFf
Name

Tenure

Rear Admiral J.T.s. Hall ................................................ 15 August 194714 August 1948

Admiral Sir Edward Parry ........................................... 15 August 1948-13 October 1951
Admiral Sir Mark Pizey ................................................ 14 October 1951-21 July 1955
Vice Admiral Sir Stephen Carlill ................................. 22 July 1955-21 April 1958
Vice Admiral R.O. KatRri .............................................. 22 April 1958-4 June 1%2

General Information

937

Vice Admiral B.s. Soman .............................................. 5 june 1962-3 March 1966

Admiral A.K. Chatte~ee . ................................. 4 Marrh 1966-27 Febntary 1970
Admiral S.M. Nanda ..................................................... 28 February 1970-211 February 1973
Admiral S.N. Kohli ...........................

.. .......... 1 March 1973-28 Febmary 1976

AdmirAl j.L. Cursetji ................................................. 1 March 1976-28 Febntary 197'1

Admiral R.L. PereirA ............. .

Milrch 1979-28 Febnlilry 1982

Admiral OS Dawson ................ ..

March 1982-31l November 1984

Admiral R.1l. Tilhiliani ............ ..

Dl'cl'lllber 1984-30 Novltmbt'r 19117

Admiral j.C. Nadkarni ................................................ 1 D['cember 1987-30 November 1990

Admiral Rilmdcls ............................................................. 1 December 199030 September 1993
Admirill V.S. Shekhawal .............................................. .

October 1993-30 September 1991i

Admiral Vishnu Bhagwat ............................................ .

October 19%30 December 1998

Admiral Sushi) Kumar ................................................... 31 December 199829 December 2001

Adllllfal Madhvendra Singh ......................................... 29 Dl'cember 20lll 31 july 2004
Admiral Anm Prclkash .................................................. 31 july 2004 - till date
CHIEFS OF AIR STAFF
Tenure

Name

Air Marshal Sir Thomas Ehnhirst ............................... 15 August 194721 February 1950
Air Marshal Sir Ronald Chapman .............................. 22 Febntary 19509 December 1951
Air Marshal Sir Gerald Gibbs ...................................... 10 December 195131 March 1954
Air Marshal S. Mukherjee ............................................. 1 April 1954-8 November 1960
Air Milrshal A.M. Engineer ........................................ 1 December 1960-31 July 1964
Air Chief MarshAl

A~An

Singh ................................... 1 August 1%415 july 1969

Air Chief Marshal P.e. LAI.. ......................................... Iii July 191i915 January 1973
Air Chief Marshal O.P. Mehra ..................................... 16 january 1973-31 january 1976
Air Chief Marshal H. Moolgavkar ............................. 1 February 1976-31 August 1978
Air Chief Marshal l.H. Latif ........................................ 1 September 197831 August 1981
Air Chief Marshal Dilbagh Singh ............................... 1 September 1981-4 September 1984
Air Chief Marshal L.M. Katre ..................................... 5 September 19841 july 1985
Air Chief Marshal D.A. La FontAine ......................... 3 July 1985-31 July 1988
Air Chief Marshal S.K. Mehra .................................... 1 August 1988-31 july 1991
Air Chief Marshal N.C. Suri ........................................ 1 August 199131 july 1993
Air Chief Marshal S.K. Kaul.. ..................................... 1 August 199331 December 1995
Air Chief Marshal S.K. Sareen .................................... 1

JM\\\l\ty

19%31 Decembet 1998

Air Chief Manhal A.Y. TIpnis ..................................... 1 january 199931 December 2001
Air Chief MArshal S. Krishnaswamy ......................... 1 January 2002-tlll date

938

India 200s"

WINNERS OF PARAM VIR CHAKRA

Major Somnath Sharma, Kumaon Regiment
Posthumous-November 1947 (Kashmir Operations 1947-48)
2nd Lt. R.R. Rane, Corps of Engineers
April 1948 (Kashmir Operations 1947-48)
Company Havildar Major Piru Singh, Rajputana Rifles
Posthumous-July 1948 (Kashmir Operations 1947-48)
LINK Kllram Singh, Sikh Regiment
October 1948 (Kashmir Operations 1947-48)

Naik Jadunath Singh, Rajpul Regiment

Posthumous-December 1948 (Kashmir Operations 1947-48)
Captain Gurbachan Singh Salaria, Gorkha Rifles
Posthumous-December 1961 (Congo)
Major Dhan Singh Thapa, Corkha Rifles
October 1962 (Ladakh)
Subedar Joginder Singh, Sikh Regiment
Posthumous-October 1962 (NEFA)
Major Shaitan Singh, Kumaon Regiment
Posthumous-November 1962 (Ladakh)
CQMH Abdul Hamid, Grenadiers
PosthumOUS-September 1965 (Operation against Pakistan)
Lt. Col. A.D. Tarapore, Poona Horse
Posthumous-September 1%5 (Operation against Pakistan)
FIg. Officer Nirmal Jit Singh Sekhon, FIg. Pilot
1971 (Indo-Pakistan conllict)

P()~thumous-December

Major Hoshiar Singh, Grenadiers

December ]971 (Indo-Pakistan conflict)
2nd LI. Anlll Khetarpal, 17 Poona Horse
Posthumous-December 1971 (Indo-Pakistan conflict)
LINK Albert Ekka, Brigade of Guards
Posthumous-December 1971 (Indo-Pakistan conflict)

Naib Subedar BaNI Singh, J & K Light Infantry

June 1987 (Operations in Siachen Glacier)
Major Ramaswamy Parameswaran, Mahar Regiment,
Posthumous-November 1987 (IPKF Operations in Sri Lanka)
Capt Vikram Batra, 13 JAK Rif
POllthumous-June 1999 (OP Vijay in Kargil)
Lt Manoj Kumar Pandey, 1/11 CR
Posthumous-June 1999 COP Vijay in Kargil)

Rifleman SIInjay Kumar, 13 JAK Rif

June 1999 (OP VijAy in Kargil)
Gdr Yogender Singh Yadilv. 18 GDRS
June 1999 (OP Vijay in Kargtl)

General Wormation

939

GALLANTRY AWARDS
The following Gallantry Awards were announced on the Independence Day 2003 :
Ashok ChaJml

1 (Posthumous)

J(jrti Chakra

7 (6 Posthumous)

Shaurya Chakra

37 (18 Posthumous)

Bar to Sellil Medal (e)

7 (1 Posthumous)

SeWI

Medal (e)

202 (27 Posthumous)

Nao Sena Medal (e)

Mention iJl the Despatches

111

The following Gallantry Awards were ill1110Unced on the Republic Day 2004 :

Ashok Chakra

1 (Posthumous)

Param Vishisht Seva Medal

29

Kirti Chakra

2 (1 Posthumous)

UttaJn Yuddh Seva

Mcdill

Bar to Vishisht Seva Medal

Ati Vishisht Sevil Medal

48

Bar to Shaurya Chakra

1 (Posthumous)

Shaurya Chilkrll

30 (14 Posthumous)

Yuddh Seva Medd}

13

Bar to Sena Meddl (e)

Sella Medlll/NilCl Sellil Medal!

123 (25 Posthumous)

Vayu Sena Medii} (e)

Bar to Sen" Medal/Nlto Sella Ml'<.ial!
Vayu Sella Medal (D)

73 (3 Posthumous)

Bar to Vishisht Sevil Meda)

Vishisllt

])9 (1

SeVIl

Medii)

Posthumous)

20

Mention in dispiltches

SPORTS AWARDS
RAJIV GANDHI 'KHEL RATNA AWARD FOR 2003
1.

Smt An;u Bobby George

Athletics

DRONACHARYA AWARDS FOR 2003

].

Shri Robert Bobby George

AthletiCS

2.

Shri Anoop Kumar

Boxing

3.

Shri Rajinder Singh

Hockey

4.

Shri Sukhchain Singh Cheema

Wrestling

AR,JUNA AWARDS POR 2003

1.

Km Soma Biswas

Athletics

2.

Smt Madhuri SaxenA

Athletics

3.

Shri rankaj Advani

Billiards " Snooker

India 2005

940
4

Km Mangte Chungneijang Marykom

5.

Km Koneru Humpy

Chess

6.

Shri Harbhajan Singh

Cricket

7.

Kill Mithali Raj

Cricket

B.

Capt. Rajesh Pattu, (SJRP)

Equestrian

9.

Shri Devesh Chauhan

Hockey

10.

Km Suraj Lata Devi

Hockl'Y

11.

Shri Akritln Shah

Judo

12.

Shri Sanjeev Kumar

Kabaddi

13

Major Rajyavardhan Singh Rathorl'

Shooting

14.

Shri Shokinder Tomar

Wrestling

15.

Shri Madasu Srinivils Rao

Badminton
(Handicilppl'd Category)

DHYAN CHAND AWARDS FOR 2004

Brig. (Retd.) Labh Singh

Athletics

Shri Ifilrdayal Singh

Hockey

3.

Shn Digambar P. Mehendilll'

Athletics
(Handicapped Catl"gory)

1.

MAULANA ABUL KALAM AZAD TROPHY 2002-2003

1.

Guru Nanilk Dev University, Aml'itsar

TENZING NORGAY NATIONAL ADVENTURE AWARDS 2002

I.

Smt Bula Chowdhury Chakraborty

Life Time Achievement

2.

Shri Urian Dermot Kharpriln Daly

Lilnd

3.

Shri Rl'lu Ram TIlakur

Wilter

NATIONAL HIGHWAYS AND THEIR LENGTHS

S.
No

National
Highway
No.

Length
in Kill.
(prov.)

Starting Station

Terminal Station

1
2
3

lA
IB

456

1C

5
6
7
8

2
2A

663

4
4A

10

413

274
8
1465
25
1161
1235
153
27

11

1533

Delhi
Jalandhilf
Batote
Domel
Delhi
Sikilndara
Agra
ChenJliIl
Belgaulll
Panval-Uran (near
Nhavi-Sheva Port)
Chennal

Pakistan Border (near Amrilsar)

Uri
Khanbal
Katra
Kolkata
Bhognipur
Mumbai
ThAllI' (Mumbai)
Panaji
Kalamboli-Paillspe
Bahi\ragora

General Information
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

55
56

57
58
59
60
61
62

63
M
65

SA
(>

77

1949
7
2369
7A
51 .
8
1428
8A
473
SA Ext. 145
88
206
8C
46
80
127
8E
220
8E Ext. 225
9
841
10
403
11
582
llA
145
11B
180
12
890
12A
280
12 Ext. 337
13
691
14
450
15
1526
16
460
17
1269
17A
19
178
40
18
369
19
240
220
20
21
323
21A
65
459
22
459
23
24
438
24A
17
352
25
31
25A
26
396
75
26A
27
93
570
28
28A
68
150
28B

140
196
29
29 Ext. 110
230
30

28C

30A

65

31
31A
318
31C

1125
92

32

19
235
119

941
Haridaspur
Kol'kata
Varanasi
Palayankottai
Delhi
Ahmedabad
Narayan Sarovar
POibanoar
Chiloda
Jetpur
Somnath
Dwarka
Pune
Delhi
Agra
Manoharpur
Lalsot
Jabalpur
Jabalpur
}abalpur
Sholapur
Bewar
Pathankot
Nizamabad
Panvel
Cortalim
Panda
Chittoor
Ghazipur
Pathankot
Chandigarh
Pinjore
Ambala
Chas
Delhi
Bakshi-Ka-Talab
Lucknow
NH 25 (km 19)
. lhansi
Sagar
Allahabad
Lucknow
Pipra Kothi
Chapwa
Barabanki
Varanasi
Gorakhpur
Mohania
Phatuha
8IIrhi
Sivok
North Salmara
Galga\ia (Nepal Border)
Gobindpur

Paradl!ep Port
Hajira
Kanya'kumftri
Tuticorin
Mumbai
Mandvi
Mftndvi
Bamanbore
Sarkhej
Somnath
Bhavanagar
Somnath
Machilipatnam
Fazilka (Pakistan Border)
Bikaner
Kothwl
Ohaulpur
Jaipur
Simga
Junction with NH-2(> near Jhansi
Mangalore
Radhanpur
Samakhiali
Jagadalpur
Edapally (near Cochin)
Marmagllo
Vasco
Kumool
Palna
Mandi
Manali
Swarghat
Shipkila
Nuatta (near Talch"r)
Lucknow
NH 28 (Chenhat)
Shivpuri
Bakshi-Ka-Talab
Lakhnadon
8ina
Mangawan
Baraulli
Raxaul (Nepal border)
Junction with NH-28 near
Kushinagar
Nepalganj
Gorakhpur
Sonauli
Bakhtiyllrpur
Barh
Guwahllti
Gangtok
}ogighopa
Junction with NH.31 near Bijni
Jamshedpur

942
66
67
68
69
70
71
72
73
74
75
76
77
78
79

80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95

96
97
98
99
100
.101
102
103
104
105
106
107
108
109
110
111
112
113

114

115
116
117
118
119

India 2005
33
34
35
36
37

352
443
61
170
680
37A
23
38
54
39
436
40
216
41
51
42
261
43
551
44
630
44 Ext. 93
44A
230
45
387
45 Ext. 73
45A
190
45B
257
45C
159
46
132
47
640
47A
6
47B
45
48
328
49
50

51
52

52A
52B
53
54
54A
54B
55
56
56A
56B
57
57A
58
59
59A
60
60 Ext.
60A
61
62
63
64
65
66
67

440
192
149
850
57
31
320
850
9
27
77
285
13
19
310
15
538
350
264
305
141
100
240
195
432

256
690
244
357

Bami
Kolkata
Barasat
Naglon
Panchratna (near Goalplrl)
Kuwlrital
Makum
Numaligam
Jorabat
Kolaghat
Cuttack
Raipur
Shillong
Shillong
Aizawal
Chennai
Dindigul
Villupuram
Trichy
Thanjavur
Krishnagiri
Salem
Willingdon Island
NagercoiJ
Nelamangala
(near Bangalore)
Cochin
Nasik
Paikan (on NH.37)
Baihata Charali

&harlgara
Dalkola
Banglon (Bangladesh Border)
Dimapur
Saikholghat
Nelr Tetpur
Lekhapani
Morch (IndO-Myanmar Border)
Jowai
Haldia
Sambalpur
Natavalasa
Sabroom
Nongstoin
Manu
Dindigul
Teni
Nagapattinam
Tuticorin
Ulunderpettai
Ranipet
Kanyakumari
Cochin Bypass NH.47
Kavalkinaru
Mangalore

Dhanshkodi
PWle
Dalu
Junction on NH.37 (near
(on NH.31) Saikhoaghat)
Bander Dewa (on NH52)
Gohpur
Kulajan
Dibrugarh
Near Badarpur (on NH.44) Imphal (on NH.39)
Dabaka
Thipang
Theriat
Lunglei
Venus Saddle
Sahia
Siliguri
Darjeeling
LuckllOW
Varanasi
NH.28 (Chenhat)
NH.56 (km 16)
NH.56 (km 16)
NH.25 (km 19)
Muzaffarpur
Pumea
Forbesganj
Jofbani
Delhi
Mana
Ahmedabad
Indore
Indore
Betul
Balasore
Asansol
Raniganj
Moregram
Bankura
Puruliya
Kohima
Jhanji
Damra
Dalu
Ankola
Gooty
Chandigam
Dabwali
Ambala
Pali
Pondy
Krishnagiri
Nagapattinam
Coimbatore

General Information
943

120

67 Ext. 198

121
122
123
124
125
126
127
128
129
130
131
132
133

68
134
69
350
70
170
71
307
71A
72
71B
74
72
200
72A
45
73
188
73A
62
74
300
75
955
75 Ext. 220

Ulundurpet
Nagpur
Jalandhar
Jalandhar
Rohtak
Rewari
Ambala
Chhotmalpur
Roorket'
Yamuna Nagar
Hardwar
Gwalior
Ranchi

134
135

76
1007
76 Ext. 120

Pindwara
Ranchi

COimbatore

Junction with NH-212

near Gundlupet
Salem
Obaidullaganj
Mandi
Bawal
Panipat
Palwal
Rishikesh/Haridwar
Dehradun
Panchkula
Paontasahib
Bareilly
Ranchi
Junction with NH-215
near Parsora
Allahabad
Junction with NH-215
near Parsora
Sonabarsa
Gumla
Ghat Bilod (Indore)
Nasirabad
Farakka
Maida
Mokamah
Dobhi
Buxar
Gopalganj
Dewas
Raisen
Nainital
Kama Prayag
Mataur (NH-20)
Bikaner
Aklera

136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152

77
78
79
79A
80
81
82
83
84
85
86
86A
87
87 Ext.
88
89
90

100

Hajipur
Katni
Ajmer
Kishangarh
Mokamah
Kora
Gaya
Patna
Arrah
Chhapra
Kanpur
Rahatgarh
Rampur
Nainital
Shimla
Ajmer
Baran

153

91

405

Ghaziabarl

154

Kanpur

91A

126

Etawah

Kannauj
Gwalior

142
559
500
35
310
100
130
130
60
95
674
131
83
233
115

300

155

92

171

Bhonga(ln

156

93

220

Agra

Moradabarl

157

94

160

Rishikesh

Yamunotri

158

9S

225

Khara (Chll.ndigarh)

Ferozcpur

159

96

160

FaizAbad

Allahabad

160

97

45

Ghazipur

Saiyedraja

161

207

Patnc1

Rajhara

162

98
99

110

Dobhi

Chandwa

163

100

118

Chatra

Bagodar

164

101
t02
t03

60

Chhaprll

Mohamedpur

80

Chhapra

Muzaffarpur

5S

Hajipur

Mushrigharari

165
166

India

944
Chakill

Narharia

66

Darbhllnga

Jaynllgar

130

Bihpur

145
127

Birpur
Maheshkhunt
Dharasil

Gangotri Dhiun

109

76

Rudraprilyag

Kl'darnath Dham

110

89

Arwal

Biharsharif
AmbikapuT

167

104

160

168

105

16'1
170
171

106
107
108

172
17:1

200~

Purnell

174

111

200

Bilaspur

175

112

Bar

Barmer

171>

113

343
240

Nimahera

Dahod

177

114

1811

Balesar

Pokaran

171l

116

80

Tonk

SWillllladhopur

179

117

133

Kona Expressway

Bakkhali

Jill)

119

260

Meemt

Srinilgar

181

121

252

Kashipur

Bub<lkhill

182

123

95

Vikilsnagar

Barkot bend

183

125

201

Sitarganj

Pithorgarh

184

150

700

Aizawl

Kohima

185

151

14

Karimganj

Bangladesh Bordt'r

186

152

40

Patacharkuchi

Bhutan Bonier

187

153

60

Ledo

Indo/Myanmar Border

188

154

180

Dhall'shwar

Kanpur

189

155

130

Mokokchung

Jl"SSilll1i

190

200

740

Raipur

Challdikhol
Bargilrh

I'll

201

310

Borigummil

192

202

280

Hyderabild

BhopalipatnillTl

193

203

5'1

Bhubal1t'shwar

Puri

194

203 Ext. 38

Puri

KOllark
Satpilda

195

203A

49

Puri

196

204

126

Ratnagiri

Kohlilpur

197

205

442

Allanthapur

Chennai

198

206

363

Tumkur

Honavilr

199

207

155

H(i~ur

NelaJ11angala

200

208

195

Kollam

Timmangalam (M"durili)

201

209

456

Dindigul

Bangalore

202

210

160

Trichy

Ramanathapuram

203

211

400

Solapur

Dhule

204

212

250

Kozhikode

Kollegal
Kozhikode

205

213

130

Palghat

206

214

270

Kathipudi

Pllmarru

207

214A

255

Digllmllrm

OngoJe

208

215

348

PanikuJi

Rajamundll

209

216

80

RaigRrh

Sarlliplllli

210

217

Gopllipur

218

508
176

Raipur

211

Bijapur

Hubli

945

General Information
212

218 Ext. 223

Bijapur

Homnabad

213

219

150

Madnapalli

Krishnagiri

214

220

265

Kollam (Qui Ion)

Theni

215

NE-l

93

Ahnll'dabad

Vadndaril

216

221

329

Vijaywada

Junction with NH-16 near

]agadalpur

217

222

(lIO

Killyan

lunxclril)l1 with NH7 HeM

Nirmal

2H\

223

31.)0

1111' Anddman Tmnk Road

2\9

224

2'111

Khmda

Total

65569

Balangir

IMPORTANT TRAINS
S.Nll.

Train No.

SHAT ABDl TRAINS

I.

2001/2002

2003/2004

Bhop"l-Nl'w Ddhi b.pre5~

Lucknow-New Delhi Shatabcti Exprl"&s

3.

2005/2006

N('w Ddhi-Kalka Shatabdi Exprl'ss

4.

200712001l

Clwnnai-Mysore Shat.lbdi Expn>ss

2009/2(i1l1

Ahnwdilbad-Mllmbai Shatabdl Expres,

201\/2012

New Delhi-Kalka Shatabdl Exprl.'ss

7.

2013/2014

NI'W Dl'lhi-Atnritsitr SlliItabdi Expfl'SS

Il.

201S/20lb

New Delhi-Almer Shatitbdi EXPfl'SS

'I.

2017/2011l

New Dtlhi - DI'hradull Shatabdi Express

10.

201'1/2020

Howrah-Railnchi Shatabdi Express

11.

2029/2030

Nl'w Delhl-Aillritsar Swam 5hatabdi Exprl"&s

12.

2031/2032

Nl'W Delhi-Amritsar Sh,ltabdi Express

13.

2035/203b

Lllcknow-New Delhi Shatabdi Express

JAN SHATABDI EXPRESS

1.

2021/2022

Hnwfah-Barbil Jan Shatabdi Express

2.

2023/2024

Howrah.Pah1a Jan Shatabdi Express

3.

2051/2052

Lokmanya Tilak-Madgaol\ Jan Shi\tabdi Express

4.

2053/2054

Lucknuw-Allahabi\d Jan Shatabdi 'Exp.

5.

2055/2056

New Delhi-Dehradlln Jan Shatabdi Express

6.

2()S7/20S8

Chandigiuh-New Delhi Ian Shatabdi Express

7.

2059/2060

Kota-Nizilmuddin Jiln Shtabdi Expre;s

8.

2061/2062

Habibgan;-Jabalpuf Jan Shatabadi Express

9.

2()65/2066

Howrah-Malda Town Jan Shatabdi Express

10.

2067/2068

Guwdhati-Jorhal Jan Shlltabdi Express

11.

2069/2070

Raigarh-Dongargllrh }anShatllbdi Express

12.

2073/2074

Howrah.Bhubneswar Jan Shatabdi Express

946
13.

India 2005
2075/2076

Ernakulam-Trivandrum Jan Shatabdi Express

14.

2077121178

Chennia Egmore=-Vijaywada Jan Shatabdi Express

15.

2079/2080

Bangalore-Hubli Jan Shatabdi express

11>.

2081/2082

Ahmedabad-Gandhidham Jan Shatabdi Expl'ells

RAJDHANI

EXPRESS

1.

2301/2302

Howrah-New Delhi Rajdhani Express

2.

2305/2306

Howrah-New Delhi Rajdhani Expl'ells

3.

2309/2310

Patna-Ncw Delhi-Rajdhani Express

4.

2313/2314

Scaldah-New Delhi Rajdhani Express

5.

2421/2422

Ilhubaneshwar-New Delhi Rajdhani Express

6.

2423/2424

Dibrugarh./Guwahati-New Delhi Rajdhani Express

7.

2425/2426

New Delhi-Jammu Tawi Rajdhani Express

8.

2429/2430

Ilangalore-Nizamuddin Rajdhani Express

9.

2431/2432

Trivandrum-Nizamuddin Rajdhani Express

10.

2433/2434

Chennai-Nlzamuddin Rajdhani Express

II.

2435/2436

Dibrugarh/Guwahati-New Delhi Rajdhani Express

12.

2437/2438

Secllnderabad-Nizamllddin Rajdhani Express

13

2439/2440

Ranchi-New Delhi Rajdhani Express

14.

2441/2442

Bilaspllr-New Delhi Rajdhllni Exptrdd

15.

2951/2952

Mumbai Central-New Delhi Rajdhani Express

Ih.

2953/2954

Mumbai-Nizamuddin August Kranti Rajdhani Express

17

2957/2958

Ahmedabad-New Delhi Swam Jayanti Rajdhani

IS.

2434/2444

Bhubaneshwar-New Delhi Rajdhani Express

SUPERFAST TRAINS
1.
2.
3.
4.
5.
6.
7.
8.
9.

2101/2102
2103/2104
2105/2106
2107/2108
2123/2124
2129/2130
213312134
2137/2138
2141/2142
2153/2154
215512156
215712158
2159/2160
2161/2162
21()S/2166

17.

2303/2304

Lokmanya TIlak (1') - Howrah Janeswari Express

Lokmanya TIlak (1') - Nagpur Samarasta Express
Mumbai - Nagpur Vidarbha Express
Lokmanya Tilak (T)-lucknow
Mumbai - Pune Deccan Queen Express
Pune - Howrah Azad Hind Express
Mumbai CST - Lucknow Pushpak Express
Mumbai CST-Firozpur Punjab Mail
Lokmanya TIlak (T) - Rajendra Nagar Superfast Express
Lokmanya TIlak (T) - Habibganj Express
Habibganj-Nizamuddin Bhopal Express
Pune - Solapur Express
Nagpur-Jabalpur Express
LTT-Agra Canlt. Lashkar Express
LokmllnYII TIlak (T) - Vllranllsi Express
Gwalior - Nizamuddin Taj Express
Howrah - New Delhi Poorva Express

18.
19.

2307/2308
2311/2312

Howrah - Jodhpur Bikaner Express

Howrah - Kalka Mall

10.
11.

12.
13.
14.
15.
16.

2179/2180

General Information
20,
21.

22,
23,
24.
25,
26.

2315/2316
2317/2318
2319/2320
2321/2322
232312324
2345/2346

27.
28.
29.
30.

236712368
2381/2382
2387/2388
2391/2392
2393/23'14

31.

2395123'16

32.

2397/2398

en.

24(JI12402

34.
35.
36
37
38
39,
40,

2403/2404

41.

42.
43

44.
45.
46.
47.
48.
49.
50.
51.

52.
53.
54.
55.
56.
57.
58
59.
60.
61.

62.
63.

64.

65.
66.
67.

947

s<>aldah - Ajmer Ananya Express

s<>aldah - Amritsar Akal Tilkht Express
Amritsar - Asanslll Express
Howrah - Mumbai CST Mail
Howrah-New Delhi Express
Howrah-Cuwahali Saraighat

Express

Bhagalpur-New Delhi Vikrilll1shila Express

Howrah - New Delhi Poorva Express
New Delhi-Patnil Jan Sadhilran EXPfl'~S

Rajgir - New Delhi Shrilrnjcl'vi Expn'ss

Patn.. - NI'w Delhi Sampooran Kranti Expre~s
Rajendril Nagar-Ajlller Ziyarat Express
Gaya-Nf'w Delhi Mahabodhi Express
Islampur - New Delhi Milgadh Express
Dplhi-Jammll Tilvi Exprt'Ss

2405/2406
240'1/2410

Bh ,saVill - Nizamuddin C::;ondwana Expl'l'ss

2411/2412

Jabalpur - Niz<lmuddin Gondwana Express

2413/2414
2413A/2414A

Jaipur - Delhi Express

241512416
2417/2418

Indore-Nizamuddin Express

2419/2420
2427/2428
2451/2452
2461/2462
2465/2466
2467/2468
2471/2472
2473/2474
2475/2476
2477/2478
2497/2498
2509/2510
2553/2554
2555/2556

Luckllow - New Delhi Comti Express

2557/2558

2559/2560
.2561/2562
2605/2606
2607/2608
2615/2616
2617/2618
2619/2620
2621/2622
2623/2624
2625/2626
2627/2628

Bila"pur - Nizamuddin Gondwanil Express

Jaipur-Ajrncr Link Express

Allahabad - New Delhi Prayagraj Express
Rewa-New Delhi Express
Kanpur-New Delhi Shramshakh Express
Delhi - Jodhpur Mandore Exprt'Ss
Jodhpur - Swaimadhopur Ranath.lmbore Exprcss
Bikaner - }aipur Intercity Expl'l'ss
Mumbai - New Delhi - )imunu Tawi Swara)

Expfl'~s

Ahmeddb<ld - New Delhi - Jammu Tawi SarvOli~ya Express

Hapa - Nl'w Delhi - Jammu Tawi Express
Jitl11nagar - Jammu Tawi Express
Nizamuddin - Amritsar Shan-I'-Punjab Express
s<>aldah - New Jalpaiguri Express
Baralllli - New Delhi Vaishali Expn'Ss
New Delhi - Gorakhpur Corakdhafll Express
Muzaffarpur-New Delhi Express Shiv Gangll Expess
VarallClsi-New Dl'lhi Saptkranti Express
Darbhanga-New Dt-lhi Swatantrata Sainani Expres~
Chennai - Trichy Pallavan Expn.'Ss
Chellllili - Ballgalore Lalbagh Express
Chennai - Nt'w Delhi Grand Tnmk Express
Emllkullllll - Ni~ilmuddin Mangla Express
Lolr.manya Tilak (T) - Mi.\ngalore Matsyagandha Express
Chenni.\i - New Delhi Tamil Nadu F.xpress
Chenlli.\i-Triv,mdrum Mail
Trivandrum - New Delhi I<erala Exprestl
8lIngalore - New Delhi I<amlltllkil Express

948
(lB.

India 2005,

(llJ.

2649/2650
2631/2632

Yesvilntpur-Nizilllluddin Sampilrk Knlllti Express

Chennili-Tirunelveli I Nellai Express

70.

2635/2636

7l.

2637/263H

Chennai - Madurai Vaigai Exprt's~

Chennai-Mildurai Express Pandian Express

72

2639/2640

Chl'nnili - Bal1gillore Brindaval1 Express

73

2641/2642

KilnniYilkulllari-Nizilllluddin Thirukkural

74.

264312044

Trivilndrulll - Nizamuddin Exprl'Ss

Expres~

75.

2645/2646

Ernakulam - Nizamuddin Exprl's!.

76
77.

2647/264H
2657/2658

Coimbatoll' - Nizamuddin Kon));u Express

78.

2671/2672

Chennai-Meltllpalaiyalll Nilgiri Exprl'ss

79.

2673/2674

Chennai - Coimbatore Chcran Express

Illl

2675/2676

('hennai - Coimbatore Kovai

111.
82.

2677/2678
2(,79/2680

Coimbatoft' - Bangalore Express

83.

2703/2704

Howrilh - Secunderabad Falakhnllmil Exprl'ss

!!4.

2705/2706

Vijayawildil-SeclInderilbild Express
Vijayawadil - Clwnnai Pil1akini Express

Chel1nai-Bangalore Mail

Expres~

Chennai - Coimbaton; Intercity

Expres~

115

2711 /2712

116.

2713/2714

ViJilYilwildil - Secul1dcrilbiHi Sa!iwahilnil

87.

2715/2716

Nilnded - Amritsar Suchkhllnd Express

Expre~s

88.

2717/271B

Visakhilpiltnam - Vijilyawadil Ratnilchill Express

IN.

272:1/2724

Hyderilbad - New Delhi Andhril Pradesh

YO.

2725/2726

Hubli - 8angillore Intercity Express

91

2747/2748

Guntuf - Seclinderabild Palnild

92

2759/2760

Chennai - Hydt'fabad Chamlil1af Expn'ss

In.

2763/2764

Tirupati - SeclIndcrabild Padmilvah Express

94.

2779/2780

Vasco - Nizallluddlll

95.

21101/2!l02

Puri - Nl!w Delhi PUruShottill11 Express

9h

2803/2804

Visakhapahli1m - Niz,ll11uddin SWilmil }ayanti Expfess

97.

21!0512806

Visilkhilpatnalll - Vijilyawada Janlllilbhoollli Express

'18.

2807/28011

Visilkhapatnillll - Nizamuddin Samata Express

99.

2809/2111O

Mumbili-Howilrah Mail

Expfl's~

Expr('s~

Goa Express

WO.

2/l11 /2812

LlT-Hatia Express

101

2815/2816

Puri - New Delhi Express

102.

2821/2822

Howrah - Bhubilneswilr Dhauli Express

103.

Howrah - Chennai Coromandill Express

lO-1.

2M1/2842
2859/2860

105

29()] /2902

Mumbili - Ahmedabild Gujarat Mail

Howrah - Mumbai CST Geetilnjali Express

IOh.

2903/2904

Mumbal - Amritsar Golden Temple Mail

107.

2905/2906

PorbilndiH-Howrilh Express

lOB.

2915/2916

Ahmedabad - Delhi Ashram Express

109.

2925/2926

Bandra - AmritSilr Kalka Paschim Express

110.

2927/2928

Mumbai Central - Vadodara Express

Mumbili Central - Ahmedabad Kamavati Express

111.

2933/2934

112

2955/2956

Mumbai Central - Jaipur ExpreS5

1Ll

296 1 /2962

Mumbai - Indore Avantika Express

General Information

949

114.

2967/2968

Chellnai-Jaipur Express

115.

2977/2978

Jilipur - Erl1Jkulum Manlsagilr Express

116.

2979/2980

Bilndra-!aipuf E'(press

117

2983/29H4

Bilaspur-)ilipur Expn'ss

111\

2'185/2lJKb

Seilldah-jaipllr Express

11'1

2165/2166

Kurla-Varallasi Expn'ss

HEIGHT OF SOME IMPORTANT INDIAN MOUNTAIN PEAKS

Peak

K2 ...... .
2.

Height in meter abo\'('

Mt'~n Sea Ll'vl'l
... Il,b11 ill Pak-occupit>d territory

Kanchl'njunga ......................................................... 8,598

Nang,l Parbat .................... .

4.

Casher Drum ............................. ..

5.

............................. 1\,126

.. K,ll6B

ill

I'~k-o('cupied

Broad Peak ............... ..

.. ........... Il,047

III

Pak-oo:upied tprritory

6.

Disteghil Sal' ........................ ..

......... 7,88:;

7.

Maslll'r Drum E ......

.. .. 7,821

Nanda De\'i ............... .

.. ... 7.M!7

9.

Masher I3ruJII W ............... ..

............................. 7,I!06
.7,7I1H

10.

Rakaposhi ...................... ..

11.

Kllmel ..................................... .

.. ........... 7,756

12.

5.lser K'lllgri ...................... ..

.. ... 7,672

territory

-do-

in Pak-"l'cliplt'd territory

-do-

SkyaJlg Kallgri ............................................................... 7,544 in P,lk-occupied lI'rritory

Kangri .................................... ..

................. 7.422

14.

51il

15.

Chill.lkhamba (Badnnath Peak) ................................... 7,138

16.

Trisul West ....................................................................... 7,138

17.

Nunkull ........................................................................... 7,135

18.

Pi\\lhunri ........................ ,................................................... 7,128

19.

Kangto ............................................................................... 7,09(}

20.

OlUlagiri ................................................... ......... .. .......... 7,066

-do-

950

India 2005
LENGTH OF SOME IMPORTANT INDIAN RIVERS
River

1.

Indus

Length (km)
....................................................................... 2,900

2.

Brahmaputril ........................................................................ 2,900

Gan~il

.................................................................................... 2,510

CodilVilri ............................................................................... 1,450

5.

Nilrlllilda .............................................................................. 1,29(1

6.

Krishna ................................................................................. 1,290

7.

Mahanadi ............................................................................. 890

R.

Kdvl'ri .................................................................................... 760

AMENDMENTS TO THE CONSTITUTION

I.
The COllstitlltion (First Amcndnwllt) Act, 195().. This amendmcnt provided for ~l'veral
Il<'W grounds of restriction~ to the right to fll'edom of spt'ech and l'xpression and the right to
practist' any profession or to carryon any trade or business as contained in Article 19 of tIl('
Constitution. Till'se restrictions related to public order, friendly relillions with foreign States or
indlt'ment to an offence III relation to the right to freedom of speech, ilnrl to the pn"SCribing
of proh~sslonill or technical qualifications or the carrying on by thl' Slate, t'te, of any trade,
busilll'ss, industry or service in relation to the right to carry Oil any trade or business. Thl'
ilmenlinwnl also inserted two new Articles, 31 A and 31 B ilnd till' Ninth Schl'dule to givl'
protection from chilllenge to lilnd reform laws.
2.
The COllstitutioll (Secolld Amendment) Act, 1952-l3y
representation for election to the Lok Sabha was reildju~ted.

thi~

anll'ndment, the sCille or

3.
The COllstitutioll (Third Amendment) Act, 1954-This amendment substituted entry 33
of List III (Concurrent List) of the Seventh Schedule to make it correspond to Article 369.
4.
Tile Constitution (Fourth Amendment) Act, 1955-Article 31 (2) of the Constitution was
amended to re-state more precisely the State's power of compulsory a((luisition and n'quisitioning
of private property and distinguish it from cases where the operation of regulatory or prohibitory
Iilws of the States results in "deprivation of property". Article 31A of the Constitution was a]:;o
amended to extend its seopl' to cowr ciltegoril.'S of essential welfare legislation like abt)lition
of zamindaris, proper planning of urhiln and nITa I areas and for effecting a full control over
the mineral and oil resources of the cOllntry, etc. Six Acts were also included in the Ninth
Schedule. Article 305 was also amended to save certain laws providing of State Monopolies.

5.
TIlt' Constitution (Fi{tJI Amendml'nt) Act, 1955-This amendment made a change in
Articlt, 3 so as to empower Pre!lidl'nt h sf'eeify a time limit for state legislatures to conwy
their views on the proposed Central Iilws ilffecthl b ilfeilS, boundilries, etc., of their stAtes.
TIll' COllstitution (Sixth Am('ndmellt) Act, 1956-This Amendment made some changes
in Articles 269 and 286 relilting to taxes on sale and purchase of goods in the course of interstate trade and commerce. A new ~ntry 92 A was added to Ih~ Union Ust of the Seventh Schedule
tll the Constitution.

b.

7.
The Constitution (Seventh Amcndml'llt) At"', 1956-Thi5 Amendment Act purported to
give effect to the recomml.'lldations of the State Reorganisation Commission Ami the neccMllry
consequential changCII. Broadly, the then existing stlltes and territoril..'S were changed to have
two-fold ciilssification of states and union territories. The IImt.'Ildment also provided for
composition of the House of the People, re-adjustment lifter every census, provisions fe8"rdlng

General Information

951

the establishment of new High Courlb, High Court JUdgelO, etc.

8.
Th(' Constitution (Eighth Amendment) Art, 1960-Articll' 334 was amendt'<1 with a view
to extending the period of reservation 01 seats lor Scheduled Castes and Schl'duled Tribes and
to tht' Anglo-Indian community by nomination in Parliament and in the State Lt'gislaturt'll for
a further period of ten yeaTh.
9.
Tlle Constitution (Ninth Amendment) Act, 1960-The purpose of this amendment is to
give eHect to the transfer of certain territories to Pakistan in pursuance of thl' agreement extended
into between Govenunents of India and Pakistan. This amendment was necessitated in view
of the Judgement of Supreml' Court in III Re Denrbilri Uniun by which it was held that any
agreement to cede a territory to another country could not be implemented hy a law mal'll'
under Article 3 but would only be ill1pleml'nted by an aml'min){'nt of till' Constitution.

10.
Tht' Constitution (Tenth AIlll'ndment) Act, 196J-This Act amended Article 2411 and tl\l'
First Schedule in order to include .UI~as of Dadra ilnd NaKar Haveli as a Union Tl'rritory and
to provide for its administration undl'r thl' fl.gulation making pow('rs 01 Pn.>sidl'nt.

11.
Tile ConstitutIOn (Eh'ventlJ AmendnJ('nt) Act. 1961-- The purpose of this .lJnl'ndml'nt was
to iimend Articles 66 and 71 of till' Constitution to provide that the election of President or
Vice President could not hi' challenKcd on til\' ground of any vacancy in the l\pproprlille c\I'Ctoral
colllge.
12.
The Constitution (Twelfth Amendment) Act, J962-This amendment sought to include
Goa, Daman and Diu as a Unioll Territory and to amend Artide 240 lor the purpose.

13.
Tile Constitution (Thirteenth Amendment) Act, 1962-By this alnendmcnt, a new Article
371A was added to make special provisions with respect to state of Nagaland in pursuance
of an agreemcnt between Govenlmont of India ilnd Niiga People's Convention.
14.
111(' Constitution (Fourt('('ntll Amendment) Act, 1962-By this Act, Pondiclwrry WIIS
included in the First Schedule as a Union lerritory, and this Act has also cnabll'd thl' creation
of Legislature by Parliaml.'ntary law for Himachal Pradesh, Manipur, Tripura, Goa, Daman and
Diu and Pondicherry.
15.
The Constitution (Fifteenth Amendment) Act, 1963-This amendm(,llt provided for
increase in the age of retirement of High Court Judge and for the provision of compensatory
allowance to judges who are transfl'rn.'<1 from one High Court to another. TIle Act also providl'd
for appointment of rctirl'rl judges to act as judges of High Court. Article 226 was also enlarged
to empower High Court to issue direction, orders or writs to any Government authority, etc.,
if the cause of action for the exercise of such power arose in the t('rritories wherein the High
Court eXL>rcise jurisdiction notwithstanding that seat of such Govc.>mment authority is not within
thoS(' territories. The Act also pnwided fm the exercise of powers of Chairman of the ServlC(,
Commissions, in their absence, by one of their Members.

16.
The Constitutioll (Sixtrenth Amendment) Act, l~Artide 19 was amended by this Act
to impo!ll! further restriction on the rights to freedom of speech and exprt'llsion, to IIsscmble
peaceably and without amlS and to form associations in the interests of sovereignty and integrity
of India. The oath of affirmation to be subscribed by candidates seeking el~tion to Pllrliament
and Stftte Legislatures have been amend~ to include as one of t.he conditions that they. will
uphold the sovereignty and integrity of India. The amendments are Intended tn promote nahonal
integrfttion.

17.
The Constitutioll (.!kveJlteellth AmelldmPlll) Act, 1964-Article 31A was further amended
to prohibit the acquisition of land under pe~nal ~Itivati?n ~nless ~he ~rket valu~ of the
land is paid as cornpenlllltion and the defillltlon of. estate as COntAlIled III that Article had
11110 been enlftrged with retrospective I'ffect. The Nlllth Schedule had also been amended to
Include 44 more Acts.

952

India 2005

The Constitution (Eig/Jtet'ntJl Amendment) Act, 1%6-Article 3 was amended by this Act
to specify that the expression "State" will include a union territory also and to make it clear
that the power to form a new state undl'r this Article includes a power to form a new state
or union territory by uniting a part of a state or a union territory to another state or union
territory,
18,

11,(, COllstitution (Nineteellth Amendment) Act, 1966--Article 324 was amend(>d ill effect
cons{quential change as a result of the decision to abolish Ell.'ction Tribunals itnd to hear
election petitions by High Courts,
1'1,

it

2(),
TIlt' Constitlltion OW('ntietl! Amendment) Act, 196(~This amendnll'nt was Iwcessitated
bv the decision of th(' Supn'ml.' Courts in Chandramohan vs, StittI.' of Uttar Pmdesh in which
certilill appointments of District Judges in State of Uttilr Prildesh were dl'ciared void by Supreme
Court. A new Articll.' 233A WilS added and the appointments milde by Governor wcn' v,llidiltt'd,
Tl1I' Constitution (Twenty-first Amendment) Act, 1967-By this amendment, Sindhi
L,lIIgU<lHt' was included in the Eighth Schedule,

21.

The COlIstituti(lJI (Twellty-second Amelldment) Act, 19(>9---This dct W.1S en"ctecl to

("cilit"te the fonnation of a I1l'W autonolllOUS stilte of Mt');halily" within stille of Assilm,

22,

The COII.~tit(ltioll (Twellty-thinf An1l.'ndIIIl'II1) Act. [969---Articl' 334 WilS amended so a!.
to t'x!t'nd til!' safegllitrds in respect of reservdtion of sedls in Parliament and Stall' LegislMures
lor Sdll'dules Citstes ilnd Scheduled Tribes 1IS well as for Anglo-Indidlls for il further period
"I Il'n Yl'ars,
2),

The Constitution (Twenty-fourth Amendment) Act, 1971-This amt'ndment WitS p<lssed

Iht context of a situdtion thilt emerged with the verdict in Golaknath's CitS, by Surrel111'
Court. Accordingly, this Act amt'nded Arllcle 13 and Articll.' 3611 to remOVl' all douhts rl'g.mling
till' rower of Parliament to amend the Constitution including till' Fundanlt'nt,)1 Rights,

2-1,
III

Ill" COllStltutlOlI (Twl'llty-fifth Amelldment) Act, 1971,,-This amendment furtllt'r (llllemted

Artidl' 31 111 the wakl.' of the Bank NiltiOllillisatiol1 case, The word 'amount' was substituted
ill pl<lCt' of 'compensation' in the light of the judicial interpretation of th' word 'compensation'
n\l',mmg 'ildequiltl' compensation',

25.

2h,
The Constitution (Twenty-.~jxth Amendment) Act, 1971-By this dml'ndml'llt, the privy
ilnd privileges of the former rulers of Indidn states w're abolished. This amendment W.1S passed
il~ a result of Suprenll' Court decision in Madhav Rao's cas(',

27.
Tile Constitution (Twcnty-s'vent/l Amendment) Act, 1971-This amendment was passed
to provide for cl.'rtain ll1iltters necessit,lted by the reorg,lJ)isittion of north-eitstcrn statl.'S, A new
Article 239B WitS insertl'd which enabled the pmmulgiltion of Ortiinilncl.'s by Administriltors
of Ct'rtMn union territories,
2X,
Thl' COllstitutioll (lwenty-eigllth Amendment) Act, 1972-The ilmendment was enacted
to ilbolish the special privileges of the member.; of Indiiln Civil Services ill mlltter.; of leave,
~wnsi()n dnd rights as regard to diSCiplinary miltters,
2'>'
TIlt' ConstitutioJl (Twenty-ninth Amendment) Act, 1972-The Ninth Schedule to the
Con!'titution was amended to include therein two Kerilia Acts on lallli reforms.
The Constitution (11lirtieth Amendment) Act, 1972-TIle purpose of the amendment was
tll ill1wnd Article J 33 in order to do aWilY with the valuation test of Rs 20,UO() a:o fixed therein,
and to provide instead for an appeal to Supreme Court in Civil proceedings only on a' certificate
issued by High Court that the case involves a substantial question of law of general importance
and that in opmion of High Court, thl' question needs to be decided by Supreme Court.
30.

31,

Tht, Constitution (Thirty-first AmendmeJlt) Act, 1973-This Act inter aliil raiSt.'S the upper

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953

limit for the representation of states in the Lok Sabha from 500 to 525 and reducing thl' upper
lImit for thl' representation of union territories from 25 members to 20.
32. . Tile Constitutioll (Thirty-secolld AIlIC'lldmellt) Act, 1<J73- This Act provided the necessary
constitutional authority for giving effect 10 the provision of equal opportunities to diffl'rent areas
of thl' State of Andhril Pradpsh ,lnd for Ihl' constilutLon of an Admil\i~triltive Tribunal with
jurisdiction to deal with grievancl's relilting to pubhc sl'rvict';, It illso t'mpowt'red Pilrliaml'nt
to legislalt' for the ('stablishment of a Centr,\1 univt'rSlty in the State,

33.
The COll.~titllti(lll (Thirty-third Amcndment) Act, IlJ74-Bv this anwndmen!, Articles lUl
and 190 Werl' amendl'd in order to streiln1IiIll' tilt' pmcl'durt, '{I,r r('signa\ion of Members of
Parliament and State Lt'gislatuft's,
:'14.
The Constitutioll (Tllirty-lillJrlh AmClldJllf'nt) Act, J<J74---By thiS Act, twenty more lill1d
tenml' and land reforms laws enilcted by various State Legislatures were inc!lIdl'd in the Ninth
Schedule.
35.
Tile Constitution (Thllty-fifth AlIl('lldI1lPllt) Act, J<J7-1--Bv this Act il Ill'W Artidl' 2A W;tS
added thereby conferring on Sikkim thp stMus 01 ~11 ils~ociilt(' St~tp of Indian Union. Consequellt
"'IIl'ndments were made to Articles IlO ilnd 81. A npw srhedull', i.e., 1enth Schedule, w~s ,1(idl'd
lilying down tl'rms and condillons of associatioll of Sikldlll with tl1(' Ulllon,

36,

Tilt' ConstItution (Thirty-sixth AIIlL'ndJllI'IlI) Act J')75--This WrlS I'lId,'ll'd to m,lkt' Sikkirn
full-fledged Stolte of Indi,ll1 Unioll ,1nd to lIlciucll' it III Ill(' First Schedulp to the Constitution
imd to <llIot to Sikkim 0111.' se,lt e,1(h 111 the Council of St<ltes and in till' HoltsI' (1( II\(' People,
Artidt, 2A and thl' Tenth Schedule llls('rted by tl\(' Constitution ('I1mty-fifth AlI1endlllt'ntl Act
wen' omittl-d alld Articles 80 and 81 were suitably anll'nded,

,1

37_
The Constitution (Thirty-seventh Allll'ltdull'llt) Act, 197<>--l3y this Act. Union Tl'rritory
of Anlllilchdi Pradl'sh WilS provided with iI L('gisliltiVl' Assembly Artidl' 240 of the COI\~titll\ion
W,lS "ISll amelldl'd to providl' thilt as In the ,itS!.' 01 other 111\1(111 tl'rritorie~ with LI'gislatllres,
the power of I'n~5ldellt 10 milke regulations for thl' Union Territory of Anm,)lhlll PnuiN->h may
I'll' eXt'rcised only when tht, assembly is either dissllived or it, functions rt'main sllspt'nlil'd.
38
The COllstitlllioll (Thirly-eighth Amendment) Act, 1'I7,'>-'111IS Act RlIll'lldpd Arhdes 123,
213 and 352 01 lhe Constitution to providl- tll<l! thl' biltisiactl())l of Pn'sident or Covernor
contilllwd in Ihl'S(' Artidl'~ would be c~lled III qtll'stlon III <lny court of law

Tilt' Constitution (Thirty-ninth Amendment) Act, 1975-By this Act, disputes rl'lilting to
the election of President, Vic~-Prpsident, Prime Minister and Spc~kpr ilfl' to bl' dl'termincd by
Stich iluthority as may b(' determinl?d by Parlianll'lltary Law Cert~in Central enactments Wl'r('
illso included in the Ninth Sclwdull' by this Act.
39.

40.

The COllstitutioll (Fortieth Amendment) Act, 197(,.-This act provid,'d for vesting in the
Union of all mines, minerals ilnd other things of value lying in the OCt'illl within the "'rrilorial
waters or the continental shelf or till' cxclusiVl' enlnolllic zone of India. It further pnlVided that
all other reS(),lrces of thl' exclusivl' ,'(ol)(lmic ZllIll' of India shall also vest in the Union. This
act also pmvided thilt the limits of till' tl'ritorial wc\ters, till' continental slll'lf, thl' t'xciusive
t'clll1omic zone and thl' maritime ZllIU'S of India shall be ~s Spl'clhed from tllne tl1 tllne by or
under any law made by Parliament, Also some more Acts were added II) the Ninth Scheme.

41.
The Constitutioll (Forty-first Amendmcllt) Act, 1976---13y this Act, Article 316 was
amendt.'<I to raise the retireme;lI agl' of Members of Stillt~ Public Service CommIssions and jomt
Public Service Commissions from (10 to 62 yt'ilrs.

42.

The Constitution (Fortr-second AmI'JldmE'llt) Act, 1976- This act Jlladt' a number of
important amendments III th~ COlIstltutlllll. Thrse amendment.s were mainly for purpose of
giving effect to the recommendations of Swaran Singh COlnnllttee.

954

India 2005

Some of the important amendments made an' for the purpose of spelling out expressly
th., high ideals of socialism, secularism and the integrity of the nation, to make the Directive
Prinriplcs more comprehensive and giving them precedence over those Fundamental Rights
which have been allowed to be relied upon to fnlstrate socio-('conomic reforms. The amendment
Act iliso inserted a new chapter on the Fundamental Duties of citizens and made speclill
rrovisions for dealing with anti-national activities. whether by individuals or by associations.
The judiciary proviSions were also amended by proViding for a requirement as tn the minimum
11umber of judges for determining question as to the constitutional v;\Iidity of law and for a
speCial majority of not less than two-third for declaring any law to be constitutionally invalid.
To reduce the mounting arrears in High Courts and to secure the speedy dispo!>al of
servin' matters. revenue matters and certain other mattl'rs of special importance in the context
of socio-economic d('velopment ilnd progress, this amendm('nt Act providl'd lor thl' creation
of AdministriltiVl' and other tribunals lor dealing with sllch matters while pl'l'Serving the
jurisdiction of the Supreme Court in regard to such matters under Article 136 of the Constitution.
Certain modifications in the writ jurisdiction 01 High COllrts under Artiell' 226 Wl'rl' also made.
43.
Till' COJl.~titutioll (Forty-third Amendml'llt) Act, 1977- This Act inll'r aliil providf'd for
thl' restoration of the jurisdiction of the Supreml' COllrt and High COllrts, curtailed by the
I'n.lCtml'nt of the Constitution (Forty-second Amendment) Act, 1976 and accordingly Article~
32A, 131A, 144A, 226A and 228A included in the Constitution by the said iUlll'ndment, were
omitted by this Act. The Act also provided for the omissioll of Article 31 which cOIlII'md speciill
powers on Parliament to enact certain laws in respect of anti-niltionill activities.

44.
The Constitution (Forty-Fourth Amendment) Act, 1978--1111.' right to propl'rty which had
bpf'n the occasion for mon' than one ilmendment 01 Constitution WilS omitted as iI Fundamental
Right and it was made only as a legill right. It was, however, ensured that the removal of the
right to property from the list of Fundamental Rights would not affect the right of minorities
to establish and administer educational institutions of their choice. Articl(' 352 of the Constitution
W.1S amended to provide "armed rebellion" as one of the circumstances for dl>claration of
emergency. Intemal disturbance not amounting to armed rebl>lIion would not be a ground for
the issuancl' of a Proclamation. The right to personal libt,rty as contained in Articles 21 and
22 is further strengthened by the provision that a law for prevl'ntive detl'ntion cannot authoris(',
in any case, detention for a longer period than two months unless An Advisory Board has
reported that there is sufficient cause for such detention, 1111.' additional saf('guard has also been
provided by the requirements that Chairnlan of an Advisory Board shall be a serving Judge
of the appropriate High Court and that the Board shall be constituted in accordance with the
recommendations of the Chief Justice of that High Court,
With a view to avoiding delays, Articles 132 and 134 were amended and a new Articlt'
134A was inserted to provide that a High Court should consider the qUf.!stinn of granting a
certificate for appeal to Supreme Court immediately after the delivery of the judgement, final
order or sentence concerned 011 the basis 01 an oral application by a party or, if the High Court
deems it so to do, on its own. The other amendments made by the Act lire mainly for removing
or wrrecting the d.stortions which came into the Constitution by rea!iOn of the amendment
initiated during the period of intenlal emergency.
The Con~titllti(ln (Forty-fifth Amendment) Act, 198D-This was pa!lsed to extend
safeguards in respect of reservation of seats in Parliament and State Asscmblies for Scheduled
Castes, Scheduled Tribes as well as for Anglo-Indians for a further pl'riod of ten yeal'll,

45.

The COJlstitlltioll (Forty-sixth AmendmeJlt) Act, 1982-Article 269 was amended so that
the tax levied on the conSignment of goods in the course of inter-lltate or commerce shall be
assigned to the states, This Article was alllO amended to enable Parliament to fonnulate by law
principle for determining when a consignment of goods tllkes pillce in the course of inter-state
trade or commerce, A new entry 92B was also inserted in the Union List to enable the levy
of tax 011 the conSignment of goods where such consignment takes place in the course (If interstate trade or commerce,
46.

Clause (3) of Article 286 was amended to enable Parliament to apecify, by law, restrictions

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955

and conditions in regard to til(' system of levy rates and other incidenc(' of !!lX on the tran!\fer
of goods involved in the execution of it works cuntract, on the delivery of goods on hire-purchase
or any system of payment of IIlstalments, etc.
.

A~~icle 366 was also suitably aml'nli ...d to insert a definition of "tax on the sale or purchase
~lf goods . to mclude transfer fur consilipration of controlled commodities, transfer of pruperty
111 goods lIwolved 111 the execution of a works contract, delivery of goods on hire.purchase or
any system (If pilyment by instalments, etc.

47.
The Constitution (Fortysev('nth Amendment) Act, 19/i4--This ilmendment is intended to
prOVide for the inclusion of certain land Reforms Acts in tl1l' Ninth Scheclul(' to the Constitution
with a view to obviilting the SC'.lP{, of litigation hampering the implementation pr~'cess of those
Acts.
48. . The COIlstitllticlll (Fort,Y'ei};hth Alllelldlllt'lll) Act, 19H4- The Proclamation isslled by
Presld('nt under Article 356 01 the Constitution with n'spect to till' Statf' of Punjab cannot be
continued in force for more than onl' yt'dr lInh'ss the spedill conditions menti(llwd in clause
(5) of the said Article lire siltisfil'd. A" it IS felt that thl' continued force of the said Proclamation
is neccslMlry, therefore, the present anll'ndnwnt had been dfecled so as to mak!' the conditions
mentioned in clause (5) of Article :l!'i6 inllpplicilble in Ihe inl'tant case.

49.
The C()J1.~titlition (Forty-ninth Amendment) Act, 1984-Tripura Government rl~col1\n)('nded
that the provisions of the Sixth Schedull' to the Constitution may bl' made applicilble to tribal
an'ils of that State. The amendment involved in this Ad is intended to give a constitutional
security to the autonomous District COllncil functioning in Ihe Stille.

so.

nIl' Constitution (Fiflieth Amendment) Act, J<)H4-hy Article 33 of till' constitution,

Parliament is empowered to ('naet laws dl~t('rmining to what ('xlent any of the rights conferred
by Part III of tht' constitution shall, in their appliclltion to the ml.'mbers of the armed forces
ur the forces charged with thl" maintenance of public ordt'r, be restricted or abrogated SCI as
to ellSUrf' proper discharge of their duties and maintenann' of discipline among them.
It was proposed to amend Artidl' :13 so ilS tu brmg within its ambit:

(i) the members of tl1(' forcl' dl<1rged with the protl'Ction of property belonging to or
in the charge or possession of til(' state; or
(ii) persons employed in ,IllY bureau or (lther organisiltion established by the stille for
purposes of intelligence or counter-intelligence; or
(iii) persons employed in or in connection with the telecommunication systems set up
for the purposes of any Force, bureau or organisation.

Experience has revealed that the nl"ed for ensuring proper disc~argc of th~ir du.tit'S lind
maintenance of discipline amollg them is of parlllllount Importance 111 the national mterest.
51.
The Constitution (Fiftyfirst Amendment) Act, 19M-Article 330 has been amended by
this Act for providing reservation of seills for Sc.hoouled Tribes in Meghalaya, Nagala~d,
Arunachal Prade5h and Mizoram in Parliament and Article 332 has been amended to proVide
similar reservation in the Legislative Assemblies of Nagaland lind Meghlliaya to meet the
aspirations {If local tribal population.
52.
TIle Constitution (Fifty..serond Amt'lldmenl) Art, 1985-lt amend!! the, Constitution tt)
provide that a Member of Pllrliilment or II Stllte Legislature who defects or IS expelled from
Ihe pArty which !II11 him up as a cllndidate ill the electIOn or If an lIldepende~t member of the
Hou!Ie joil1s a political party lifter expiry of six months from the date on which he tak~ seat
in the Hou!le shall be disqualified to remain" member Of. the House. The Act also makes SUitable
provisions with respect to splits ill and merger of political parties.

53.
The Constitutioll (Fifty-third Amendment) Act, 1986-Thls has been enacted to give. effect
'to the Memorandum of Settlement of Mizoram which was signed by Govemment ollndaa and

956

India 2005

Mizorilm Govemment with Mi:wrilm Nationill Front 011 30 June 1986. For thIs purpose, iI new
Article 371G has been inserted in the Constitution iIltl'r alia preventing ilppliciltion of ilny Act
of l'arliill11ent in Mi:wrillll in respect of religious or sociill practices of Mizos, Mizos' customilry
1,1W dnd procedure, administriltion 01 civil and criminill prilctice involving decisions according
to MiLOS' customary Iilw illld ownership ilnd tnmsfer of land unless 11 [{'solution is pilssed in
the Legisliltivl' Assembly to that ~flect. This, however, will not ilpply 10 illIy Centrill Act alre,ldy
in force in Mizorilm before the commencement of this amendment. The new Artidt, "Iso provides
thilt tilt' LegislatiVl' Assembly of Mizoram shilll consist of not less than 40 members.
54.
71,,' Constitution (Fifty-follrth Amendment) Act, 1l}/j(,_.. This Act incwasl's the salilries of
Supreme Comt and High Court judges as follows
Chief Justin' of India

Rs l(),OUO per month

Judgt's of SUl'rell11' Court

Rs Y,OOO per month

Chiel Justice of High Court

Rs 9,000 per month

Judges of High Court

Rs 8,UOO per month

TIlls Act amended Part '0' of the SPcond Scheduh' to the ConstitutIon to givl' ('flt'rt to
the above inrre,lSl'~ in the salaries of judges ilnd to mak .. an enilbling provi~il\n ill Articlt" 12<;
alld 221 to proVide for challgl's in the sillilfles of jUdgl'S ill fllturt, by P.lr1iilment by I<lw.
55
The COllstitlltioll (Piftv-fifth Al1IendIll('nt) Acl, 1981.-This Act seeks to give ('Hects to
the proposal of c..;ovl'rtlment ~)f India to confer stiltl'hood on till' UllIon lerritory ot AflIlIilclMI
Pr.uiesh and for thi~ purpose, <l IU'W Article 371H has been inserted which, IIller <ilia, nlnfl'rs,
hilvll1g regard to the sensitiVl' location of Arunachill Pradl'sh to vest speciill n'sponsibiltty 011
Cov('rnor of tIlt' Ilew State of Arunachal Pritdesh with respect to law dnd order in the State
illld in the dischargt of his functions, the Governor shilll after collsuitillg til(' Council of Ministers,
('XerClSe his individu<l1 judgl'mel1t, <IS to th( action to be tilk,'n ilnd this responsibility slMII feaSl'
whell Presidl'nt so directs. TIll' new Article also provides tlMt nil' Ilt'W Ll'gisl<ltiVl' Assembly
of the new St.ltl' of Anlllach,,1 Pradesh, sh'll1 consist of lIot les, thilll thirtv mt'lllb(rs.
ThE' COllstitlltioll (Pift),-sixtil AllIenciIllI'Ilt) Act. 19H7--Covprnnll'nt of Indiil hilS proposed
tn constitute the territories 'comprised in Goa District of thl' Union Territory of Coa, Daman
ilnd DIU as thl' State of GOil ilnd the territories comprisl'd in Diunan and Dill districts of that
Ullioll Territory ilS a new Union Territory (If D,1I11;:1n and Diu. In this context, it was proposed
that the Legislative Asscmbly of til(' I1('W Statl' of GOil shilll consist of 40 memb,rs. TIll' existing
L"gisliltive Assembly of Ilw Union Territory of Goa, D<lmill1 and Diu has 30 plpcted llll'mlwrs
ilnd Ihrf'" nominated members. It was intend(!d to milkl this Assembly with till' exclllsion of
two members n'presenting Daman and Diu districts the provisional Legisl,ltiVl' Assembly lor
the new Stilte of GOil lInlil elections Me held Oil the expiry of the five year t<'fIllS of till' existing
Assl'mbly. It was, therefore, decided III provide thilt the Legisliltivl' As!\embly 01 Ihe I1\'W Stall'
of elM shilll consist of not less tl1<ln ,10 l11el1lber~. The special provision required to be mad'
to givl' effect to this proposill is carrit'd out by this amendment.
%

Tile Constitution (Fifty-seventh .1I1lendll1('nt) Act, J '187-- The Constitution (Fifty-first

Amendm!'nt) Act, 1984 Wit'" enilcted to provide for reservittion of seats in the hOllse of the peoplt
for scheduled tribes in Nagillilnd, MeghalaYil, Mizor,lm ilnd Arllnachill Pradesh and i\lso for
reSl'rvOltioll of scats for scheduled tribes in the It'gislative assemblies of Nilgillilnd ilnd Mt!~hitlitY'1
by slIItahly i\ml.'nding i\rtieles 330 ilnd 332. EVI?n though these sti\tes ilrc prt?domillitntly tribal,
tilt' underlying objective of the aforl"said act was to ellsurl.' that thl' members of schlxluled tribl"
ill these areils do lIot fail to securE' it minimal repn's{'ntation berallse of t\wir inability to compell'
with the ildvanced sections of the people, The Constitution (fifty-first amendment) ilet, though
formally enfllrclxl, could not be fully implemented unless parallel action is taken to determine
the seats which all' to be reserved for Scheduled tribes in these areas. TIle number of seats
reserved for Scht.xlull Castes i\nd Schedule Tribes in the Legillli\tive Assembly of any State undl'r
article 332 of the constitution will have to be determmed having regard to tilt! provision~ ot
article 332 (3) of thl' Constitution, However, in view of the historical background with respect
to the areas comprised in lI11rth-castenl stiltes, the circumstances ~)btitinillg in these area!! ill th!'
57.

General Infom\i\tion

957

Stilte of development
of Schelilll"d
. . .It WIlS consIdered
.
.
~ ""b'
.n es On(:I ot I1l'r re IeVilnt COIlSldl'TlltlOns,
nect'Ssllry to pmvlde for special arrangements with regard to the reservation for Scheduled Tribes
In these areas for a temporilry period so ilS to facilitate eilsy transition of thesc' IIn'as to the
normal arrllngements as envisaged in till' Constitution. Articlt' 332 of th(' Constitution was
furth~r alllended for making a temporary provision, until tIll' n'-Adjustment of seats on the basis
of flTst census after the year 2000 lInder IIrtiele 170 of the Constitution for these states, for the
dt'lennmahon of the number of sellts n~served fur Scheduled Tribes. This amendment sl'eks to
rrovld~ that If all the St'ats ill the Legisl<ltiw Assembly of such States in l'xistenCl' nn thl' datI'
o(commg lI\to force of this constitution anll'ndment act MI' held by the members of Sclll'duled
Tnbes, all the seats t?xcept one shall be reserved for scheduled tribes and in any other ca~e
such number of seats as bear~ to tilE' totalnumbl'f of seats a proportion not less thlln the numlwr
of members bclonglllg to Scheduled Tribes in the existing assembly beilTS to the total number
of seats in the existing ilssembly. Th( act ilrhiev('s tlwse objectives.
The COllstitutioll (Fifty-eighth Amendment) Act, 1<JI'17- There has been general demand
for the publication 01 authoritilliw te)(t of the Constitution in Hindi. It is imperative to havl'
an authoritiltiVt' text of the Constitution for faCilitating its liSt' in tht legal prucess. Any Hindi
,:_ersion of the Constitution should not only conform to the Hindi tr.lnsliltion published by the
Constituent Assembly, but should ht' in nmformity, with tilt' lilllguage styl(' ilnd tt'TlI1inplogy
<ldoptt'd in the authorit<ltive I('xts of Central Acts in Hindi. The C(ln~tilllti(lll has bt'('n amended
to empower President of India to publish under his authority HlP lranslittlllll 01 lilt' Constitution
ill Hinoi signed by the Members of the Constituent Ass('mbly with slich modification as may
b(' necessary to bring it ill confoflmty with Ihe languilgc, style and \{!rminology adopted in the
authoritative text!; of C('nlral Acts in Hindi languagc. President has illso been iluthoriM!d to
publish the translation in Hindi of every amendment of the Constitution made in English.
SIl.

The Constitlltion (Fifty-ninth Amendment) Act, 19HH- The Act all1ends Article 365 (5) of
thl.' Constitution so itS to facililatt' Ihe extellsion of a Presidential Proclamation isslI('d under
clilUSI.' (1) of Article 356 beyond a period of one year, if necessdry upto iI peri(1d of three yeaTS,
as permissibll' under claus<' (4) of Article 356 with respect to thl' State of Punjab because of
tilt? continUl.>d disturbed situiltion tlwre. TIll' Act also amends Article 352 of the Constitution
pertilining to the Proclilmation of emergellcy in its applicatioll to the State of Punjab and includl's
internlll disturbance as one of the grounds tor making it Proclamation in respect of the St.lte
of Punjab only. As a consequence of illIlt'lldl11ellt in Article 352, Articl('s 358 tlnd 359 in rt.'liltion
to tht.' State of Punjab will b(' operative only for a perioo of two years frolll 30 March 19118,
which is the date of commencement of the amendment.

59.

(In.

The COllstitution (Sixtil'th AUlI'ndllIt'Jlt) Act, 1'1/18-TI\I.' Act amends d.luSt (2) of Article
276 of the Constitution so ilS to inert'ase the reiling of taxes on pmfessions, trlldes, callings alld
employment frum Rs 2S0 per annum to Rs 2,500 per annum. The upward revision of this tax
will help state govemments in rilising additional reSOllrc('l;. Th(' proviso to clauSf' (2) hilS been
omitted.

61.
The Constitutioll (Sixty-first Amendmcnt) Act, 19119-Tlw Act provides for reducing voting
age from 21 to 18 yearl\ by amending Article 326 of the Constitution to pnlVide to tIlt'
unrepresented youth of the country an opportunity to givt' vent to their feelings and help them
become i'I pari of political pnlCess.
.
The C()n.~tittltiOII (Sixty-secc)JId Amendment) Act, 1989--Arlide 334 of lhe Constilliholl
lays down that the provisions of the Constitution relating to the reservation of seats for the
Scheduled Castes and the Scheduled Tribes ilnd the reprcsentation of tIlt' Anglo-Indian
community by nomination in the Lok Sabh" and in the Legislative Assemblies of the States
shall ("ease to have effect on thE' lxpiry of a perilld of 40 years from the commencement of
the Constitution. Although the Schl'(luled Castes and t~e Scht-duled :ribcs have ~l'lIde
considerable progress in the last 40 yellrs, the reasons ~hlch welghl'(i With the Con~t1hl~nt
Assembly ill making provi~ions with regard to the aforeSil~ reservallon of sea~ and JlomuliI.hon
of members have not C(!ased to exist. nll~ Act amends ArtIcle 334 01 the Conslltutlon to continue
the reservll;lon for the Scheduled Castes and the Scheduled Tribes and the representation of
the Anglo-Indians by nomination for II further period of 10 years.

62.

958

India 2005 {

The Constitution (Sixty-third Amendment) Act, 1989--The Constitution (Fifty-ninth

Amendment) Act, 1988 was enacted in March 1988 making certain changes in regard to making
a Proclamation of Emergency in Punjab and to the duration of President's rule in Stale. On
reconsideration, the Government decided that the special powers in regard to the Proclamation
01 Emergency in Punjab as envisaged in the said amendment is no longer required. AC'cordingly
the provision to clause (5) of Article 356 and Article 359A of th(' Constitution have been omitted.

63.

64.
The Constitutioll (Sixty-fourth Amendment) Act, 1990-This Act amends clauses (4) and
(5) 01 Article 356 of the Constitution with a view to facilitate the extension of tht proc1i1ll1ation
issued under clause (1) of Article 356 of the Constitution on 11 May 1987 uplo il total period
of Ihrev years and six months in relation to the State of Punjab.
The COllstitutioll (Sixty-fifth Amendment) Act, 199I~Article 338 of the Constitution
provides for a Special Officer for the Scheduled Castes and Scheduled Tribes to investigate all
mattl'rs relating to thl' safeguards provided fllr the Scheduled Castes and Scheduled Tribes under
the Constitution and to report to the President 011 their working. The Article has been amended
for till' constitution of a National Commission for Scheduled Castes and Scheduled Tribes
consisting of a Chairperson, Vice Chairperson and five other Members who shall be appointed
by the pJ't_'Sident by warrant under his hand and seal. The amended Article elaborates the duties
of the Silid Commission and covers measures that should be taken by the Union or any state
fOT the effective implementation of the reports presented by the Commission. It also provides
that tht> Commission shall, while investigating any matter or inquiring into any complaint have
all the powers of a Civil Court trying a suit and the reports of the said Commission sh.111 bl'
laid before Parliament and the Legislature of the states.

65.

The Constitution (Sixty-sixth Amendment) Act, 199(~The Act protects 55 State Acts
relating to land reforms and ceiling on agricultural land holdings enacted by States of Andhra
Pradt'sh, Bihar, GujaTllt, Himachal Pradesh, Karnataka, KeTala, Madhya Pradesh, Maharashtra,
Orissa, Raiasthan,Tamil Nadu, Uttar Pradesh, West Bengal and administration of the Union
lerritory of Pondicherry, from challenge in courts, by including them in till' Ninth Schedule
to tht Constitution.

66.

67.
nIl' Constitution (Sixty-seven tIl Amendment) Act, 1~The three year period in the case
of proclamation issued on 11 May 1987 with respect to the State of Punjab was extended to
three years and six months by the Constitution (Sixty-fourth Amendment) Act, 1990. TIlis Act
further amends clause (4) of Article 356 so as to further extend the period upto a total period
of four years.
68.
nIl' COllstitution (Sixty-eighth Amendment) Act, 1991-The three year period in the case
of proclamation issued on 17 May 1987 with respect to the State of Punjab was earlier extended
to four years by the Constitution (sixty-seventh Amendment) Act, 1990. This Act further amends
clause (4) of Article 356 so as to further extend the period upto a total period of five years.
The COllstitution (Sixty-ninth Amendment) Act, 1991-The Government of India appointed
on 24 December 1987 a Committee to go into various issues connected with the administration
of Delhi and to recommend measures, inter alia for the streamlining of the administrative set
up. AfteT detailed inquiry and examination, it recommmded that Delhi should continue to be
a union territory and may be proVided with a Legislative Assembly and a Council of Ministers
responsible to stich assembly with appropriate powers to deal with matters of coneI'm to the
commo" man. The Com~ittee also recommended that with a view to ensuring stllbllity and
permanence, arrangements should be incorporated in the constitution to give the national capital
a special status among the union territories. This lIet has been passed to give effect to the above
recommendations.
69.

70.
The Constitution (Seventieth Amendment) Act, 1992-While considering the (Seventyfourth Amendment) Bill, 1991 and the Government of National Capital Territory Bill, 1991 views
were expressed in both the Houses of Parliament in favour of including also the elected members

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959

of the legislative assemblies of union territories in the electoral coUegl.' for the election of the
President under Article 54 of the Constitution.
At pI'efient Article 54 Il'Ii\ting to the election of the President provides for an electoral
college consisting of only the elected Members of Parliament as well as the legislative assemblies
of the states (not of union territories). Similarly, ArticlE' 55 providing for the manner of such
election also speaks of legislative as.~emblies of states.
Accordingly, an Explanation was inserted in Artiell' 54 to providl' that reference to 'State'
in Article 54 and 55 would include the National Capital Territory of Delhi and the Union Territory
of Pondicherry for constituting the electoral collegt for election of the President. This would
enable the elected members of the Legislative Assembly crellled for the Union Territory of
Pondicherry under the provisions of Article 239A and of the proposed Legislative Assembly
of the National Capital Territory of Delhi under Articl' 239AA to be included in the electoral
college.
71.
The Constitution (Seventy-first Amendment) Act, 1992-There have been demands for
inclusion of certain languages in the Eighth Schedule to the Constitution. This Act amends the
Eighth Schedule to the Constitution to include Konkani, Manipuri and Nepali languages in the
Eighth Schedule to the Constitution.
72.
The Constitution (Seventy-second Amendment) Act, 1992-For restoring peace and
harmony in the areas of the State of Tripura where disturbed conditions prevailed. a
Memorandum of Settlement was signed by the Government of India with Tripura Nil tionil I
Volunteers on 12 August 1988.
In order to implement the said Memorandum, Article 332 of the Constitution hilS been
amended by the Constitution (Seventy-second Amendment) Act, 1992 for milking a temporary
provision for the determination of the number of seats reserved for the Scheduled Tribes in
the State Assembly of Tripura, until the re-adjustment of seats is made on the basis of the first
Census after the year 2000 under Article 170 of the Constitution.

n,e Constitution (Seventy-third Amendment) Act, 1993-Artide 40 of the Constitutioll

which enshrines one of the Directive Principles of State Policy lays down that the State shall
take steps to organise village pll/lchaYll1s ilnd endow them with such powers and authority as
may be necessary to enable them to function as units of self-govenlment.
73.

In the light of the above, a new Part IX relating to the PalKhayats has been inserted
in the Constitution to provide for among other things, Gram Sab/I" in a village or group of
vilJagt!s; constitution of PlIlldlllYllts at village and other level or levels; direct ek"ctiolls. to all
seats in Panchayats at the village and intermediate level, if any and to the offices of Chairpersons
of Panchayats at slIch levels; reservation of seats for the Scheduled Castes and Scheduled Tribes
in proportion to their population for membership of Panchayats and offiCI! lIf Chairpersons in
Panchayats at each level; reservation of not less than one-third of the seats for women; fixing
tenure of five years for Panchayats and holding elections within a period of siK months in the
event of supersession of any PanchaYllt.
74.
The Constitution (Seventy-fourth Amendment) Act, 1993-1n many stares local bodies
have become weak and ineffective on Account of a variety of reasons, including the failure to
hold regular elections, prolonged supersession and inadequate devolutions of powen; and
functions. As a n.lsult, Urban Local Bodies are not able to perform effectively as vibrant
democratic wlits of self-government.

Having regard to these inadequacies a new part IX-A relAting. to the Ml~nic~palities has
been Incorporated in the Constitution to provide for among other thlllgs, constitution of three
types of MW\icipalities, i.e., Nllsar Panchayats for areas in transition from a nll'IIl area to urban

area, Municipal Councils for smaller urban areas and Municipal Corporations for larger urban
areas.

960

India 2005

75.
The COllstitution (St.vt'nly-fiftll Amendment) Act, 1994-Thl' operation of the Rent Control
Legi5lations, as are today in various states, suffers from major weaknesses and has led \0 various
unintl'nded consequences. Some of the deleteriolls legal consequences indllde mounting <lnd
mending litigation, inability of the courts to provide timely justice, evolution of practices and
systems to bypass thl' operations of rent legislations and steady shrinkage of rental housing
market.

Tht' Supreme Court tdking note of the precarious stilte of rent Iitigiltion III the country
in GISt' of Prabhakariln Nair ilnd others vs. Statl.' of Tamil Nildu (Civil Writ Petition 506 of 1986)
and otlwr writs obsl'rved that tht' Supreme Court and the High Courts should bl' (l'lieved of
the h,'avy burden of rent litigation. TIers of appeals should be curtailed. Laws should be Simple,
riitionill and clear, litigations must C(lInt' to end quickly.
Therefore, this Act amends Article 3236 in Part XIVA of the COllstitution so as to giVl'
timely relief to the relit litigants by providing for setting up of state-level Rent Tribunals in
order to reduce thl' tiers of ilppeals and to exclude the jurisdiction of all courts, ('xcepl thilt
of tl1' Supreme Court, under Article 130 of the Constitution.
Tile C(ln~titllt;(ln (Seventy-sixtll Amendment) Act, 1994-- The policy of reS('rviltion of St'<1ts
in I'Ollciltional institutions and reservation of appOintments Dr posts in pllblil' sprvi{'es for
Backward Classes, Scheduled Castes and Scheduled Tribes has had a long history in Tamil Nadu
dating back to tht, year 1921. The extent of reservation hal' been incl't'ilsed by the State
Glwernml'nt from hn\l' to time, consistent with the needs of the majorit\' of the p'ople and
it hilS now reached the level of 69 per cent (18 per rent Scheduled Castes, one per cent Scheduled
Trilws lind 50 p>r c('nl Other Backward Classes).

711.

The Supreme Court in Indieil Sawhney and others vs. Union of Indill and otl1l'rs (AIR,
19'13 SC 477) on 16 November 1992 mled that the total reserviltions under Articlt' 16(4) should
nl",t I'xcel'ti 50 pt'r cent.
The Tamil Nadu Government enacted i\ legislation, namely, Tamil Nildu Backward Class('s,
Schl'duled Castes and Schedull'd Tribes (Reservation of Seats in Educatillnal Institution and of
,lppointments or posts in the Services under the State) Bill, 199;1 and forwarded it to the
Government of India for consideration of the President of India in tl'nns of Article ::I1-C of the
Constitution. The Government of India supported the provision of the State legIslation by giving
tilt' President's assent to the Tamil Nadu Bill. As a corollary to this derision, it was Ilecessary
that thl' Tamil Nadu Act 45 of 1994 was brought within the purview of the Ninth Scheduk
to the Constitution so that it could get protection under Article 31 B of the Constitution with
regard to the judicial review.
77.
TIle Constitution (Seventy-seventh Amelldment) Act, 1995-The Schedule Castes and the
scheduled tribes have been enjoying the facility of reservation in promotion since 1955. The
Supnme Court in its judgment dated 16 November 1992 in the case of Indiril Sawhney and
others vs- Union of India and others, however, observed that reservation of appOintments or
posts under Article 16(4) of the Constitution is confined to initial appointment and cannot extend
to rl'servation in the matter of promotion. This mling of the Supreme Court will adversely affect
till' mterests of the Scheduled Castes and the Scheduled Tribes. Since the representation of the
Scheduled Castes and the Scheduled Tribes in services in the States have not reached the required
level, it is necessary to continue tlw existing dispensation of providing reservation in promotion
in the Cilse of the Scheduled Castes and the Scheduled Tribes. In view of the commitment of
the Govemment to protect the interests of the Scheduled Castes and the Scheduled Tribes, the
Government have decided to continue .the existing policy of l1!liervation in promotion for the
Scheduled Castes and the Scheduled Tribt'S. To carry out this, it Willi necessary to amend Article
16 of the Constitution by inserting a new clause (4A) in the said Article to provide for reservation
in promotion for the Scheduled Castes and the Scheduled Tribes.

78.
The Constitution (Seventy-eighth Amendment) Act, 1995-Article 31B of the Constitution
confers on the enactments included in the Ninth Schedule to the Constitution immunity fronl

General Information

961

legal challenge
. Ialt; the fundamental rights l'nshrined in Part JlI
. .on the ground th a t tl.U'Y \'10
n f tl 11' C onshtuhon . TI1C Schedule
. . con
SIStS 0 {I1St 0 f Iaws enactNi by various state govl'TIlmtmts
and Central Government WlllCh Il1ter illia affL'Cl rights and intl'ft'sl in property including land.
In the past: whcnever, it was found '11M progressive legislation conceived in the intl'll!!It
of 'he pubhc was Impenlled by litigation, n'COUfSt' was taken to the Ninth Schedule. Accordingly,
sev~ral State enactments relating 1.0 land reforms and ceiling on agricultllralland holdings have
alr~ady been Illduded III thl' Nmth Sdwd\lle. S1I)ct:' th' Government is committed to give
Illlportance to land reforms, It WIIS dl'cid~,(\ to include land reloml laws in the Ninth Schedull'
so that they are nol challl'ngl'd bdon' the courts. The stilte gOl'l'rnnll'nts 01 Bihar, l<lIntataka,
l<l'rilla, Orissa, Rajasthiln, Tamil Nadu and West Bengal had suggl'Sted the inchillion of wml'
of their Acts rt'lating to land reforms in til(' Ninth Schedule.
Sinn' the i\mendmenl to Actio which are already placed in tht:' Ninth Schedule aft' nol
aulomatically immuniM'd from ll'g~1 challenge, a number of aml'nding Acts along with II II'IV
prinripal Acts have bl>en included in the Ninth Schedule so as to l'n~uft:' thaI implementation
of thesl' Acts is nol adversely aifectt'd by litig<ltion.

79.

rhe Constitution (Sc"l'nly-ninth Aml'ndment) Act, 1999-By this Act the Govemment has
extl'nded the reservations 01 seats for Ihe SchedulNi Castes and tht' Scheduled Tribes ilS well
<IS for the Anglo-Indians in thl' HOllSI' of Iht' People and in thl' Legisliltivi' Assemhlies of thl'
Stah's for another ten years.
The COJJstitutioll (Eightieth AIIl'lldllll'llt) Act, 2000-Bilsed on Ihe recomrnl'ndiltions of
the Tenth Finance Finance Commission, an alternative scht:'llle for sharing taxI'S hetwf'l'n tht:'
Union and the States has oc>en enilcted by the Constitution (Eightieth Amendment) Acl 2000.
Under the Ilew schemt:' of devolution of rl'venuc betwet'l1 Union and tht' States, 26 per cpnl
out of gross proc('eds of Union taxl'S ilnd dulies is to be assiglwd to the States in lieu of their
l'xisting shaft:' in the income-tax, excise duties, special excise dutil'S and grants in lieu of tax
on railway passenger fares.

1\0.

TIlt' COllStitutioJJ (Eighty-fin;1 AIIl'lIdmeJIt) Act, 2000-By this alllendment tht:' unfilled
of a year which wen' reserved for the Sched\lll-cl Castes and the Scheduled Tribe!;
tor being filled up in that year in accordance with any provision for reservatiolls made under
Article 16 of the Constitution, ~hall bt> consideft:'d as a separate elMS of vacancies to be filled
lip in any succeeding year or yeaTS, and ~uch da!l.~ of vacancies shall not be considered together
with the vacancies of the year in which they Wl're filled up for detl'nnining the ceiling uf fifty
per c('nt reservation IIgainst total number of vacancies of that yt:'ar.

1\1.

vilcancil~

R2.
The Con.~tituti(ln (EigIltY-"'l'cOJld Aml'ndmeJlI) Act, 2000-Th(' amendment provides that
nothing in Article 335 shall prevent the State from making any provision in favour of the
membel'l'l of the Scheduled CIIsll~ lind the Scht'liuled Tribes for relaxation in qualifying marks
in ,my examination or lowering the standards (If evaluation for reservation in mailers of
promotion to any class or classes of st.'rvict:'s or posts in connectioll with affairs of the Union
or of II State.

113.

The Constitutioll (Eightr-tllin-i AmeJldment) Act, 2()()()-The Act amended Acticle 243M
of the Constitution to pmvidc that no reservation in Panchayats need be made in favour of
the Scheduled OIstes in Arunachal Pradesh wholly inhabited by tribal population.

84.
The CcmstituticlII (Eighty-h,urt/l Amendment) Act, 2001-The Act "nlended provisos to
articws 82 And 170(3) of the Constitution to readjust and rationalise the tprritonal conlitilUtencies
in the States, without altering the number of seats allotted to each State ill House of People
and Lt>gislative Assemblies of the States, including the Scheduled Castes and Scheduled Tribes
constituencies, on the basis of the population 118Certained at the census for the yellr 1991 so
as to remove the imbalance caused due ttl uneven growth of population/electorllte in different
constituencies. It Is also to refix the number of seats reserved for the Scheduled Castes lind
the 'icheduled Tribes in the House of the People and the Legislative Aasl'mblies of the ~tes

962

India 2005

on the buis of the population ascertained It the census for the year 1991 10 as to remove the
imbalance caUlled due to uneven growth of population/electorate in different constituencies.
It is Ilso to refix the number of &eats n!IIeIVed for Scheduled Castes and the Scheduled Tribes
in the HOWIe of the People Ind the Legislative Al6emblie& of the States on the basis of the
population IlCertained at the census for the year 1991.

The Constitution (Eighty-fifth Amendment) Act, 200J-This Act Imended article 16(4A)
85.
of the Constitution to provide for conaequentilll seniority in the calM! of promotion by virtue
of rule of reservation for the Government !M!rVlnts belonging to the Scheduled Castes and the
Scheduled Tribes. It Ilso provides retrospective effect from 17th day of June 1995.
86.
The Constitution (Eighty-sixth Amendment) Act, 2002-The Act deals with in!M!rtion of
new article 21A after article 21. The new article 21A deals with Right to Education-HThe
State shill provide free and compulsory education to all children of the age of six to fourteen
years in such manner as the State may, by law, determine".

II

new

Article for Article 45. For Article 45 of the Constitution, the following
Substitution of
article shall be substituted, IUImely, Provision for early childhood care and education to children
below the age of six years. Article 45: "TIle State shall endeavour to provide early childhood
care and education for all children until they complete the age of six years."
Article 51A of the Constitution was amended Ind II new clause (k) was lidded lifter clause
0), namely, "(k) who is a parent or guardilln to provide opportunities for education to his .hild
or. liS the case mlly be, ward between the age of six lind fourteen years.
H

87.
The Constitution (Eighty-seventh Amendment) Act, 2003 - In Article 81 of the
Constitution, in clause (3), in the provilO, in clause (ii), for the figures "1991", the figures "2001"
shall be substituted.
.
In Article 82 of the Constitution, in the third prl.lviIO. in clause (ii), for the figures "1991",
the figures "2001" shall be substituted.
In Article 170 of the Constitution, - (I) in clause (2), in the Explanation, in the proviso,
for the figures "1991", the figures "2001" shall be substituted; (ii) in clause (3), in the Explanation,
in the third provilO, for the figures "1991", the figures "2001" shall be substituted.
In Article 330 of the constitution, in the Explanation, in the provilO, for the figures "1991",
the figures "2001" shall be substituted.

88. The Constitution (Eighty-eighth Amendment) Act, 2003 - (t shall come into force on such
date as the Central Government may, by notification in the Official Gazette, IIppoint.
After Article 268 of the Constitution, the following article shall be inIerted, namely :
"268A. (1) Taxes on !M!rVices shall be levied by the Government of Indill and such tax
shan be collected and appropriated by the Government of India and the States in the manner
provided in clallle (2).
(2) The proceedl in any financial year of any such tax levied in accordance with the
provisioN of (IaUle (1) shall be - (a) collected by the Government of india and the States; (b)
appropriated by the Govemment of India and the States, in accordance with such principles
of collection and Ippropriation I I may be fonnulated by Parliament by law".

In Article 210 of the conttitution, in clauae(I), for the words and figun!s ..Article 268 Ind
269", the words, figures and letter "Artidel 268, 268A and 2b'1" shall be substituted.

In the Se\'enth Schedule to the Constitution, in Lilt IUnion u.t, after entry 9.28, the
following entry shall be inIerIed, namely : "92C. Taxes on services".
89 The Constitution lE;Pty..mnth Amendment) Ad, 2OO3-It shall come irlto force on such dlte
.. the Central Government may, by notifICation in the Official Gar.etIe, appoint.
In Article 338 of the ConItitution. (I) for the marginal headin&- the followin,g marginal
heading shall be IUbltituted, namely :

"National Commillion for : Scb.tuled C.1IeI";

General Information

963

(b) lor daLlIeS (1) and (2), the following clau&es shall be substituted, namely :

~'(~) There
be II Commi5llion lor the Scheduled CaBres 10 be known ali the National
CommlMOl1 lor die Scheduled Cures.
(2) Subject to the provisions of any Jaw made in thl.~ behalf by Parliament, the Comm_on
shall consist of Chairperson, Va-ChAirperson and three other Members and the conditions

of service and tenure of office of the Chairperson, VlCe-Chairperson and other Members
appointed thall be IUCh a. the President may by rule determine";

10

(c) in claUlell (5), (9) and (10), the words "and Scheduled Tribes", wherever they occur,
shAll be omitted.
After Article 338 of the Constitution, the following article shall be inserted, namely :
"338A. (1) There shall be a Commission lor the Scheduled Tribes to be known as the
National Commission for the Scheduled Tribes.
(2) Subject to the provisions of any law made in this behalf by Parliament, the Comm~ion
shall consist of a Chairperson, Vice-Chairperson and ~ree ot~ Members and the conditions
of lervice and tenure of office of the Challperson, Vice-ChAnperson and other Members 10
appointed shall be such IIlI the President may by rule determine.

(3) 'The Chairperson, Vice-ChAirperson and other Members of the Commission shall be
appointed by the President by warrant under his hand and seal.

(4) The Commission shall have the power to regulate its own procedure.

(5) It shall be the duty of the Commission - ea) to investigate and monitor all matten
relating to the safeguards proVided for the Scheduled Tribes under this Constitution or under
any other law for the time being in force or under any order of the Government and to evaluate
the working of such safeguards; (b) to inquire into specifIC complaints with respect to the
deprivation of rights and safeguards of the Scheduled Tribes; (c) to participate and advise on
the planning process of SOCio-economic development of the Scheduled Tribes and to evaluate
the progress of their development under the Union and any State; (d) to present to the President,
annually and at such other times as the Commission may deem fit, reports upon the working
of those IIIlfeguardS; (e) to make in such reports recommendations as to the measures that should
be taken by the Union or Any State for the effective implementation of those safeguards and
other measures for the protection, welfare and socio-economic development of the Scheduled
Tribes; and (f) to discharge such other fwlctions in relation to the protection, welfare and
development and advancement of the Scheduled Tribes as the President may, subject to the
provisions of any law made by Parliament, by rule specify.
(6) The President shall cause all such reports to be laid before each House of Parliament
along with a memorandum explaining the action taken or proposed to be taken on the
recommendations relating to the Union and the realOns for the non-acceptance, If any, of any
of such recommendations.
(7) Where any such report, or any part thereof, relates to any matter wi.tfl which any
State Government is concerned. a copy of such report shaD be forwarded to the Governor of
the Stale who shall caUllC it to be laid before the Legtalature of the State along with a
memorandum explaining the action taken or proposed to be taken on the recommendations
relating to the State and realOns for the non-acceptance, if Any, of any of IUCh recommendations.

(8) The Commiuion llhal~ while investigating any matter referred to in iUb-daute(a) or
inquiring into any complaint referred to in sub-dause (b) of dauae (5), have all the powen
of a c:ivU court trying II suit and in particular in respect of the following matters, namely :

(a) IWlUnOOing and enforcing the attendance 01 any penon from any part of India and
examining him on oath; (b) requiring the di&covery and production of any document"
(c) ftlCeivil18 evidence on affidavits; (d) requisitioning Ilny public NCOrd or copy thereof
any court or office; (f!) isIIuing commissions for the examination of witnel&es and documents;
(f) any other matter which the President may, by nale, determine.

&orr:

(9' The Union and every State Government shall COIlIUlt the CommiMion on all lNjor
poUcy ..........fleeting Scheduled TIibcs".

964
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India 2005
The Constitution (Ninetietll Amendment) Act, 2003-1n Article 332 of the Consitution, in
(6), the following proviso !lh~ll be inserted, namely:

cl~u!le

"Provided that for elections to the Legislative Assembly of the State of Assam, the
representation of the Scheduled Tribes and non-Scheduled Tribt."S in the constituencies included
in thE' Bodoland Territorial Are~s District, so notified, and existing prior to thE' constil1.1tion of
the Bodoland Territorial Areas District, shall be maintained".
The Constitution (Ninety-first Amendment), Act, 20(JJ - In Article 75 of the Constil1.1tion,
after clause (1), the following clauSCf; !\haU be inserted, namely :

91.

"OA) The total number of Ministers, including the Prime Minister, in the COllneil of
Ministers shall not exceed fifteen peT rent of the total number of members of thl.' HouSl.' of
the People.
(15) A member of either HouSI.' of Parliament bE'longing to any political party who is
disqualified for being a member of that HouSl' under pllrilgraph 2 of the Tenth Sdwdule shilll
also be disqualified to be appuinted as a Minister under claust' (l) for duration of tIll' period
commencing from the date of his disqualification till till' date on which tht, term of his offict'
as such member would expire or where he contests any election to either HouSE' of Parliament
before thl.' expiry of such period, till the datl' on which he is declared plected, whicllt'ver i~
earlier"
In Article 164 of thl' Constitution, after c1i1use (i), the following clauses shall be insertt'd,
nallll'ly:
u(1A) the total number of Ministl'r.;, including thl' Chief Minister, in the COllncil of
Ministers in a State sail not excCt'<i fifteen per cent of the total number of Ilwmbers of the
Legislative Assembly of that State:
Provided that the number of Ministers, including the Chief Minister, in a State shall not
be less than twelve:
Provided further that when' the total number of Ministers, including the Chief Mil1lster,
in tIll' Council of Ministers in any Stat(' at the commencement of the Constitution (Nilwty-first
Amcndment) Act, 2003 cxceeds the said fifteen per cellt or the number specified in the first
proviso, as the case may be, then, the total number of Ministers in that State shall be bl\llighl
III conformity with the provislllllS of this clause within six months from such date as the Pn'liidl'nt
mity by public notification appolllt.
(18) A member of the Legislative ASSl'mbly of a State or either House of the Legislature
of a State having Legislative Council b('loging to any poiticill pilrty who i!\ disqualified for being
11 member of that HouSl' under paragraph 2 of the Tl.'nth Schedule shilll also be disqualified
to be appointed as a Minister under clause (1) for duration of the period commencing from
thl' date of his disqualification till the date on which the term of his office liS sllch mpmber
would expire or where he contests any election to the Llogislative Assembly of II State or either
House of the Legislature of a Statl' having Legislative Council, as the case may be, before the
expIry of such period .. till the date on which he is dl>clared cit'Ctro, whichever is earlier"
After Articll' 36tA of the Constitution, the following Article shall be inserted, namely:
316B. A member of a House belonging to any political pllrty who ill disqualified for being
a member of the House under paragraph 2 of the Tenth Schedule shall also be disqualified
to hold any remunerative political post fOT durlltion tlf the period commencing fmm the date
of his disqualification till the date on which the term of his office as such member would expire
or till the date on which he cont('llts an election to a HOUle and is declared elected, whichever
IS

earlier.

ExpJaniltioJ1 : For the purposes uf this Artide,(a) the expn.'5sion "House" has the meaning assigned to il in clause (a) of paragraph 1
of the Tenlh Schedult! :
(b) the expn.'l!Siol1 "remunerative politicAl post" meal1llllny office-{i) under the GtWenlment
of India or the Government (If a'State where the Mlary or remuneration (or such office if; paid

General Information

965

(lut of the public revenue of the Government of India or the Govrrnment of the State, as the
case may be, or (ii) under a body, whether incorporated or not, which is wholly or partially
owned by the Government of India or the Government of a State and the salary or remuneration
for such office is paid by such body, except when' such salary or remuneration paid is
compensatory in nature'.
In the Tenth Schedule tu the C:onstiluhon,-(a) in pdCdgraph, 1, in clause (b), the words
dnd figure "paragraph 3 or, as the caSt' may be," shan bl' omitted; (b) in paragraph 2, in subparagraph 0), for the words and figures "paragraphs 3, 4 and 5", thl' words illld figures
"paragraphs 4 and 5" shall be substituted; (e) paragraph 3 shall be omitted.
92. The Constitution (Njn~ty-second Amendment) Act, 2()()J~ln the Eighth Schedule to
tIll' Constitution,-(a) existing entry 3 shall be re-numbered as entry 5, and before entry 5 as
so rl.~numbered, the following entries shall be inserted, nam('ly:
"3. Bodo;
4. Dogri".

(b) ex.isting 4 to 7 shall re;pectively b(' re-numbered as {'ntriel; (, to 9; (e) ex.isting entry
8 lihall be re-numbered as entry 11 and before entry 11 as so renumbered, the following entry
shall be insertl'd, Mmdy:
"10. Maithilj".

(d) existing entries 9

10

14 shall respectively be rl.'-numbered

entries 12 to 17;

/IS

(e) existing entry 15 shall be re-numbered as entry 19 and before entry 19

llumbered, the following entry shan bl.' inserted, n~ml'ly :

a~

so re-

"18. Santllilli".
(f) existing entrit'S 16 to 18 sh~11 I"l'speclively be re-numbered as entries 20 to 22.

-
...
_
.
_.....
.
""
... lo'. . ':(...,.". . .""'lV"t:.....r.........

~J~..

t. :~.~.....

._

~'

,
#

J Z F:B 2005
.. , '~.~ .'. 12 75 '7 1
..........................

.I.

------,

. ............ .................
,

"

..

'

,.......

Appendices
GOVERNMENT OF INDIA
Dr. AP.J. Abdul Kalam - President
Bhairon Singh Shekhawat - Vice-President

CABINET MINISTERS
(As on 25 May 20(4)
Dr. Manmohan Singh

Shri Pranab Mukherjee

Shri Arjun Singh
Shri Sharad Pawar
Shri Lalu Prasad
Shri Shivraj V. Pati)
Shri Ram Vilas Paswan
Shri Ghulam Nabi Azad
Shri S. jaipal Reddy
Shri Sish Ram Ola
.... Shri P. Chidambaram
Shri Mahavir Prasad
Shri P.R. Kyndiah
Shri T.R. Baalu
Shri
........- Shri
Shri
Shri

Shankarsinh Vaghela
K. Natwar Singh
Kamal Nath
H.R. Bhardwaj

Prime Minister and also in-charge of the

Ministries/Departments not specifically
allocated to the charge of any Minister, viz.,
(i) Ministry of Personnel, Public Grievances and
Pensions;
(ii) Ministry of Planning;
(iii) Department of Atomic Energy; and
(iv) Department of Space.
Minister of Defence
Minister of Human ResourC1.' Development
Minister of Agriculture and Minister of
Consumer Affairs, Food and Public Distribution.
Minister of Railways
Minister of Home Affairs
Minister of Chemicals and Fertilizers and
Minister of Steel
Minister of Parliamentary Affairs and Minister
of Urban Development
Minister of Information and Broadcasting and
Minister of Culture
Minister of Labour and Employment
Minister of Finance
Minister of Small Scale Industries and Minister
of Agro & Rural Industries
Minister of Tribal Affairs and Minister of
Development of North Eastern Region
Minister of Road Transport and Highways and
Minister of Shipping
Minister of Textiles
Minister of External Affairs
Minister of Commerce and Industry
Minister of Law and Justice

Appendices

967

Shri
Shri
Shri
Shri

P.M. Sayeed
Raghubansh Prasad Singh
Priyllranjan Dasmunsi
Mani Shankar Aiyar

Shri
Smt.
Shri
Shri
Shri

Sunil Dutt
Meira Kumar
K. Chandra Shekhar Rao
A. Raja
Dayanidhi Maran

Dr. Anbumani Ramdoss

Minister
Minister
Minister
Minister

of Power
of Rural Development
of Wat~r Resources
of Petroleum and Natural Gas and
Minist~r of Panchayati Raj
Minister of Youth Affairs and Sports
Minister of Social Justice and Empowerment
Minister without Portfolio
Ministerof Environment and Forests
Minister of Communications and Information
Technology
Minister of Health and Family Welfare

MINISTERS OF STATE (INDEPENDENT CHARGE)

Shri Santosh Mohan Dev

Shri Jagdish Tytler

Shri Oscar Fernandes

Smt Renuka Chowdhury

Shri Subodh Kant Sahay
Shri Kapil Sibal

Shri Vilas Muttemwar

Kumari Selja

Shri Praful Patel

Shri Prem Chand Gupta

Minister of State (Independent Charge) of the

Ministry of Heavy Industries and Public
Enterprises
Minister of State (Independent Charge) of the
Ministry of Non-Resident Indians Affairs
Minister of State (Independent Charge) of the
Minister of Statistics and Programme
Impelmentation
Minister of State (Independent Charge) of the
Ministry of Tourism
Minister of State (Independent Charge) of the
Ministry of Food Processing Industries
Minister of State (Independent Charge) of the
Ministry of Science and Technology and Minister
of State (Independent Charge) of the
Deparatment of Ocean Development
Minister of State (Independent Charge) of the
Ministry of Non-Conventional Energy Sources
Minister of State (Independent Charge) of the
Ministry of Urban Employment and Poverty
Alleviation.
Minister of State (Independent Charge) of the
Ministry of Civil Aviation
Minister of State -(Independent Charge) of the
Ministry of Company Affairs

MINISTERS OF STATE
Shri E. Ahammed
Shri Suresh Pachauri

Minister of State in the Ministry of External

Affairs
Minister of State ir. the Ministry of Personnel
Public Grievances and Pensions and Minister of
State in the Ministry of Parliamentary Affairs.

968

India 2005

Shri B.K. Handique

Minister of State in the Ministry of Ddenct and

Minister of State in the Ministry of Parliamentary
Affairs

Smt. Panabaka Lakshmi

Minister of State in the Ministry of Health and

Family Wl'lfart'

Dr. Dasari Narayana Rao

Minister of State in the Ministry of Coal and

Mines

Dr. Shakeel Ahmad

Minister

of

State in the Ministry of

and Informi\tion Technology

Communi~'ations

Shri R,lO inderjit Singh

Minister of Stiltl' in the Ministry of External

Affairs

Shri Naranbhai Rathwa

Minister Df State in the Ministry of Railways

Shri K.H. Muniappa

Minister of State in the Ministry of Road

Transport and Highways

Shri M.V. Rajasekharan

Minister of State in the Ministry of

Shri Kantilal Bhuria

Minister of State in the Ministry of Agriclilutn'

and Minister of State in thc Ministry of
Consumer Affairs, Food and Public Distribution

Shri Manikrao Gavit

Minister of State in the Ministry of Home

Affairs

Shri Shriprakash Jaiswal

Minister of State in the Ministry of Home

Affairs

rlannin~

Shri Prithviraj Chavan

Minister of St,lte in the Prime Minister's Offict'

Shri Taslimuddin

Minister of State in the Ministry of Agriculture

and Minister of State in the Ministry of
Consumer Affairs,Food & Public Distribution

Smt. 5uryakanta Patil

Minister of State in the Ministry of Rural

Development and Minister of Statt' in the
Ministry of Parliamentary Affairs.

Shri Md. Ali Ashraf Fatmi

Minish!r of State in the Ministry of Human

Resource Development

5hri A. Narendra

Minister of State in the Ministry of Rural

Development

Shri R. Yelu

Minister of Stilte in the Ministry of Railways

Shri 5.5. Palanimanickam

Minister of State in the Ministry of Finance

Shri S. Regupathy

Minister of State in the Ministry of Home

Affairs.

Shri K. Yenkatapathy

Minister of State in the Ministry of Law and

Justice

Smt. Subbulakshmi }agdeesan

Minister of State in the Ministry of Social Justice

and Empowerment

Shri B.Y.K.S. Elangovan

Minister of State in the Ministry of Commerce

and Industry

Smt. Kanti Singh

Minister of State in the Ministry of Human

Resource Development

Appendices

969

Sri Namn Narain Mecna

Minister of State in the Ministry of Environment

and Flln:sts

Shri Jay Prakash Narayan Yadav

Minislt~r of State in the Ministry of Water

Rt$l)UrCeS
Shri Akhilesh Singh

Minister of State in the Ministry of Agriculture

and Minister of State in the Ministry of
Consumer Affairs, Food and Public Distribution.

MEMBERS OF PARLIAMENT
RAJYA SABHA
(As on 22 July 2004)
Chairman

Bh<liron Singh Shekhawat

Deputy Chairman

K. Rahman Khan

Name

Party IGmup

STATES
ANOHRA PRADESH (lB)

1.

Sudarshan Akarapu

TOP

2.

Raashid Alvi

INC

3.

S.M. Laljan Basha

TDr

4.

Smt. N.P. Ourga

TOr

5.

Jairam Ramesh

INC

6.

Penumalli Madhu

CPI(M)

7.

Nandi Yellaiah

INC

B.

Dr. Alladi P. Rajkumar

TOP

9.

C. Ramachandraiah

TDP

10.

Dr. Oasari Narayana Rall

INC

11.

K. Rama Mohana Ral)

TOP

12.

Y.Hanumantha Rao

INC

13.

Ravula Chandra Sekilr Reddy

TDP

14.

Dr. T. Subbarami Reddy

INC

15.

Gireesh Kumar Sanghi

INC

16.

Jesudasu Sedam

INC

17.

Rama Muni Reddy Sirigireddy

TDP

Smt. Yanga Geetha

TDP

18.

ARUNACHAL PRADESH (1)

19.

Nabam Rehia

INC

ASSAM (7)

20.

Kamendu Bhattacha~ee

INC

970
21.

India 2005
Indramoni Bora

BIP

22.

Urkhao Gwra Brahma

IND

23.

Silvius Condpan

INC

24.

Dwijendra Nath Sharmah

INC

25.

Dr. Manmohan Singh

INC

26.

Smt. Syeda Anwara Taimur

INC

BIHAR (16)
27.

Prot. Ram Deo Bhandary

RID

28.

R.K. Dhawan

INC

29.

Dr. Faguni

30.

Prem Chand Gupta

Ram

INC
RJD

31.

Dr. Mahendra Prasad

32.

Mangani Lal Mandai

RID

33.

Jai Narain Prasad Nishad

BJP

34.

Vidya Sagar Nishad

RJD

35.

Ravi Shankar Prasad

SJP

36.

Motiur Rahman

RJD

37.

Smt. Kum Kum Rai

RJD

38.

Bashistha Narain Singh

SP

39.

Shatrughan Sinha

SJP

40.

Sharad Yadav

JD(U)

41.

Subhash Prasad Yadav

RJD

42.

Vijay Singh Yadav

RJD

CHHAITISGARH (5)
43.

Dilip Singh Judev

BJP

44.

Ramadhar Kashyap

INC

45.

Smt. Mohsina Kidwai

INC

46.

Smt. Kamla Manhar

INC

47.

Motilal Vora

INC

GOA (1)
48.

Eduardo Faleiro

INC

GUJARAT (11)
49.

Lekhraj Bachani

DJP

50.

Jayantilal Darot

DJP

51.

Arun Jaitley

BJP

52.

Jana Krishnamurthy

53.

Prof. Alka

K.

Balram Kshatriya

BJP
INC

Appendices

971

54.

Lalitbhai Mehta

BJP

55.

Raju Parmar

INC

56.

Dr. A. K. Patel

BJP

57.

Ahmed Patel

INC

58.

Keshubhai S. Patel

BIP

59.

Smt. Savita Sharda

BJP

HARYANA (5)
60.

Swaraj Kaushal

HVP

61.

Smt. Sumitra Mahajan

INLD

62.

Harendra Singh Malik

INLD

63.

Faqir Chand Mullana

INLD

64.

Rao Man Singh

INLD

HIMACHAL PRADESH (3)

65.

Anand Sharma

INC

66.

Suresh Bhardwaj

BIP

67.

Kripal Parmar

HJP

JAMMU &: KASHMIR (4)

68.

Dr. Farooq Abdullah

J &: KNC

69.

Ghulam Nabi Azad

INC

70.

T.S. Bajwa

PDP

71.

Prof. Saif-ud-Din Soz

INC

JHARKHAND (6)

72.

5.5. Ahluwalia

73.

R. K. Anand

74.

Devdas Apte

BJP

75.

Stephen Marandi

IMM

76.

Ajay Maroo

BJP

77.

Yashwant Sinha

BJP

KARNATAKA (12)
5mt. Prema Cariappa

INC

79.
SO.

Oscar Fernandes

INC

B.K. Hariprasad

INC

81.

K. Rahman Khan

INC

82.
83.
84.

Dr. Vijay Mallya

IND

K. B. Krishna Murthy

INC

M. Rajasekara Murthy

BJP

78.

,to

972

India 2005

85.

M. Venkaiah Naidu

SJP

86.

Janardhana Poojary

INC

87.

Smt. Bimba Raikar

INC

88.

M.V. Rajasekharan

INC

89.

M.A.M. Ramaswamy

JD(5)

KERALA (9)
90.

Abdul Wahab Pee vee

ML

91.

K. Karunakaran

INC

92.

K. Chandran Pillai

CPI(M)

93.

Thennala G. Balakrishna Pillai

INC

94.

N. K. Premachandran

RSr

95.

V.v. Raghavan

CPI

%.

Vayalar Ravi

INC

97.

M.P. Abdussamad Samadani

ML

A. Vijayaraghavan

CPI(M)

98.

MADHYA PRADESH (11)

9Y.

Maulana Obaidullah Khan Azmi

INC

100.

Hansraj Bhardwaj

INC

101.

Narayan Singh Kesri

BJP

102.

Pyarelal Khandelwal

BJP

103.

P.K. Maheshwari

INC

104.

Suresh Pachouri

INC

105.

Laxminarayan Sharma

BIP

100.

Arjun Singh

INC

107.

Smt. Maya Singh

BJP

108.

Suo Thirunavukkarasar

BJP

109.

Vikram Verma

BJP

MAHARASHTRA (19)

C. Alexander

110.

Dr. P.

111.
112.

Tariq Anwar

INO
NCr

Balavant alias Bal Apte

BlP

113.

Prithviraj Chavan

INC

114.

Vijay

115.

J.

Darda

INC

Murli Deora

INC

110.

Rajkumar Dhoot

SS

117.

Yusuf Sarwar Khan alias Dilip Kumar INC

118.

KS. Gavai

RPI

119.

Vedprakash P. Goyal

BlP

Appendices

973

120.

Ram Jethmalani

IND

121.

Sharad Anantrao Joshi

Swatantra Bharat Paksh

122.

Pramod Mahajan

BJP

123.

Datta Meghe

Ncr

124.

Sanjay Nirupam

5S

125.

Praful Pat('\

NCI'

126.

Shivraj Vishwanath Patil

INC

127.

Sanjay Rajaram Raut

55

128.

Ekanath K. Thakur

SS

MANJPUR (1)
129.

Rishang Kcishing

INC

MEGHALAYA (1)
130.

Robert Kharshiing

NCP

MIZORAM (1)
131.

La Ihmingliana

MNF

NAGALAND (1)
132.

T.R. Zcliang

NI'F

ORISSA (10)
133.

Ms. Pramila Bohidar

BJD

134.

Dr. Chhattrapal Singh Lodha

BJP

135.

Surendra Lath

BjP

136.

Pyarimohan Mohapatra

BJD

137.

Dr. Radhakant Nayak

INC'

138.

B.

139.

J.

Panda

BJD

Rudra Narayan

BJP

140.

Dilip Ray

IND

141.

Birabhadra Singh

BJD

142.

Smt. Sushree Devi

BJD

PUNJAB (7)
Ashwani Kumar

INC

144.

Varinder Singh Bajwa

SAD

145.

Dr. M.S. Gill

INC

146.

Oharampal Sabharwal

INC

147.

Raj Mohinder Singh

SAD

148.

Smt. Ambika Soni

INC

149.

Smt. Sukhhuns Kaur

INC

143.

India 2005

974
RAJASTHAN (10)
150.

Santosh Bagrodia

INC

151.

Smt. Jamana Devi Barupal

INC

152.

Lalit Kishore Chaturvedi

BJP

153.

R.P. Goenka
Dr. (Smt.) Najma A. Heptulla

INC

154.
155.

Moolch. .d Meena

INC

BJP

156.

K. Natwar Singh

INC

157.

Dr. Gyan Prakash Pilania

BIP

158.

Jaswant Singh

BIP

159.

Dr. Prabha Thakur

INC

SIKKIM (1)
160.

Palden Tsering Gyamtso

SDF

TAMIL NADU (18)

161.

S. Anbalagan

AIADMK

162.

S. S. Chandran

AIADMK

163.

T.T.V. Dhinakaran

AIADMK

164.

B. S. Gnanadesikan

INC

165.

N.R. Govindarajar

AIADMK

166.

Smt. S. G. Indira

AIADMK

167.

N. Jothi

AIADMK

168.

R. Kamaraj

AIADMK

169.

S.P.M. Syed Khan

AIADMK

170.

Dr. K. Malaisamy

AIADMK

171.

P. G. Narayanan

AIADMK

172.

E.M. Sudarsana Natchiappan

INC

173.

C. Perumal

AIADMK

174.

Dr. Anbumani Ramadoss

PMK

175.

R. Sarath Kumar

DMK

176.

Thanga Tamil Selvan

AIADMK

177.

R. Shunmugasundaram

DMK

178.

G.K. Vasan

INC

TRIPURA (1)
179.

Matilal Sarkar

CPI(M)

UTTAR PRADESH (31)

180.

Prof. M.M. Agarwal

IND

975

Appendices
181.

Dr. Akhilesh Das

INC

182.

Kama' Akhtar

SP

183.

Ann

IND

184.

Gandhi Azad

BSP

185.

Abu Asim Azmi

SP

186.

Smt. Jaya Bachchan

SP

187.

Dara Singh Chauhan

SP

188.

Dr. Murli Manohar Joshi

189.

Ghanshyam Chandra Kharwar

BJP
BSP

190.

Ram Nath Kovind

191.

Dr. Swami Sakshi Ji Maharaj

BlP
SP

192.

Miss Mayawati

BSP

193.

Janeshwar Mishra

SP

194.

Kalraj Mishra

BJP

195.

Satish Chandra Misra

BSP

196.

Nand Kishore Yadav

SP

197.

Mukhtar Abbas Naqvi

BJP

198.

Balbir K. Punj

BJP

199.

Ram Narayan Sahu

SP

200.

Arun Shourie

BJP

201.

Rajeev Shukla

ABLe

202.

Shahid Siddiqui

SP

203.

Amar Singh

SP

204.

Bhagwati Singh

SP

205.

lsam Singh

BSP

Dhirubhai Ambani

206.

Raj Nath Singh

BJP

207.
208.
209.

Uday Pratap Singh

SP

Veer Singh

BSP

Lalit Suri

IND

210.

Prof. R.B.S. Varma

DJP

U'ITARANCHAL (3)
211.

Harish Rawat

INC

212.
'213.

Salish Kumar Sharma

INC

Smt. Sushma Swaraj

DJP

WEST BENGAL (16)

214.

SIt. Khabir Uddin Ahmed

CPI(M)

215.

Nilotpal Basu

CPI(M)

India 2005

976
216.

Jayanta Bhattacharya

IND

217.

Manoj Bhattacharya

RSP

218.

Debabrata Biswas

219.

Prasanta

220.

Dr. Biplab Dasgupta

CPI(M)

221.

Smt. Sarla Maheshwari

CPl(M)

222.

Chitt<lbrata Majumdar

CPI(M)

22:1.

Dipankar Mukherjee

CPI(M)

224.

Smt. Chandra Kala Pandey

CPI(M)

225.

Abani Roy

RSP

221'>.

Jibon Roy

CPI(M)

227.

Tarini Kanta Roy

CPl(M)

228.

Shankar Roy Chowdhury

IND

229.

Dinesh Trivedi

AITC

Chatterj~

AIFB
CPI(M)

UNION TERRITORIES
NATIONAL CAPITAL TERRITORY OF DELHI (3)

230.

Dr. Karan Singh

231.

Vacant

232.

Vacant

INC

PONDlCHERRY (1)

233.

V. Narayanasamy

INC

NOMINATED (12)

234.

Nana Deshmukh

NOM

235.

Kumari Nirmala Deshpande

NOM

231'>.

Smt. Hema Malinj

NOM

237.

Bimal Jalan

NOM

238.

Dr. K. Kasturirangan

NOM

239.

Dr. Narayan Singh Manaklao

NOM

240.

Ms. Lata Mangeshkar

NOM

241.

Vidya Nivas Misra

NOM

242.

Dr. Chandan Mitra

NOM

2H

Fali S. Nariman

NOM

244.

Cho S. Ramaswamy

NOM

245.

Dara

NOM

Singh

Belongs to BJP

<)77

LOK SABHA
(A~

on 28 July 20(4)

Speaker; Somnillh Chilltt'fJ el'

St,llL' /Cnnstiluel1cy

Naill(' of tlw Membl'l

ANDlIRA PRADESII (42)

Srikilkubm

KinJ"rilpu Yl'lrannaldu

TDP

PiUYdthipurilm (51)

Kdwn> (_ hilndril SUrVill1,ll,"',l11;\

INC

[)to"

VYrlclwrl,l

:i

Bobbili

Kllndapalii I'ydilhillh Nilidu

TrW

Visakhapatnam

r:;

Bhadrachalam (ST)

lill1Mdh<lna Rl'ddy Nl'durumal\i

Midlyam Habu Rao

INC
CPI(M)

Anakap,llii

CIl<ll.lpathiriW Papp,lla

TDP

Kakinada

II

Rajahmundry

INC
INC

Amalapufam (SC)

Maliil'udi Man~apilti I'aliam Rail!

Aruna Kumar Vund,walli
C.v. llarsha Klmlar

10

NiUilsilpur

INC

11

Eluru

(he"nndi Vl'nkata II,lrirama ),'gillah

KavUI'L1 Sambil Siva Rall

12

Machilipalnam

Bildi~il

13
14

Vijayilwad'l
'lenali

RilJilgopill Lilgadapilti
Balash,'wry Vall"bhaneni

INC
INC

lS

Glintur

Rilvapiltl S,llllhasivil Riw

INC

111

P.1ggUhilti

17

Bap"tla
Narasaranpt't

Ml'kapati RaJ,lmnhan Rlddy

INC

18

Ongol('

Magunta 5reenivilslliu Rlddy

INC

It)

Nellorl' (SC)

I',lllilbaka Lilbhmi

INC

20
21
22

Tirupathi (5C)

Chintil Mohiln

INC

Chittoor
Ra;ampet

DX Audikl'~,1VUlu
Anll.lvyag.lri Sai rrathilp

1Dr'
INC

2:i

Cuddapah

YS. Vivl'kilnilnda Rl'ddy

INC

Hindupur

Niz;lI11oddin

INC

Anantapur

An;mth" Venkata Rami Rl'ddv

Kotlil jilyils\lrya Prakilsha Rl'ddy

INC

Nagarkurnool (SC)

5.P.Y. Rl'ddy
Dr. Manda Jagannath

INC

Mahabubnagar

D. Vittal Rill)

INC

Hydcrabad

Asadllddin Owaisi

AIMElM

St>cundcrabad

M. Anjan Kumar Yadav

INC

Siddipct (SC)

Sarvey Sathyanarayana

INC

Medak

A. Narcndra

TRS

Ni1.lImabad

Madhu Goud Yaskhi

INC

24
25
2('
27
28
29
30
31
32
33
34

Klirnool
Nandyal

Rilrnakrishnil

I'lIrandarl'~w,lfI

INC
INC
INC

INC

INC

lUI'

978

35
3h
37
::Ill

:w
40
41
42

India 2005
Adilab.ld
Peddapalli (SC)
Karimnagar
Hanamkonda
Warangal
Khammam
Nalgonda
Miryalgud.l

Sudini laip.,1 Rtddy

TRS
INC
TRS
TRS
TRS
INC
CI'I
INC

Khiren RijijLl
Tapir Gao

BJP
RIP

Lalit Mohan SuklalMidya

Sontosh Mohan Lkv
Biren Singh Engti
Anwar Hussain
Sansuma Khunggur Bwiswmuthiary
A.F. Golam Osmani

INC
INC
INC
INC
IND
INC
INC

Takkala Madhusudhan Reddy

G. Venkat Swamy
K. Chandra Shakher Riln
B. Vinod Kumar
Dharavilth Ravinder Naik
Renuka Chowdhury
Suravaram Sudhak.n Reddy

ANUNACHAL PRADESH (2)

n
.t4

Arunachal West
Arunacl1.l1 East

ASSAM (14)

45
4(1

47
4H
49

50
51
52
53

54
55
56

57
51l

Karimganj (SC)
Silchar
Autonomous Oistrict (ST)
Ohubri
Kokr.ljhar (Sf)
Barpeta
Gauhati
Mangaldoi
Tczpllr
Nowgong
Kaliabor
lorhat
Oibrugarh
Lakhimpur

Kirip Chaliha
Narayan Chandr" Borkataky

BJI'
INC

Moni Kumar SlIbb"

Rajen Gohain
Dip Gogoi
Bijoy KrishnCl Ilandique
Sarbananda Sonowal

BJP
INC
INC
AGP

Dr. Arun Kumar Silrmah

AGP

Kailash Baitha
Raghunath Jila
Akhiles Prasad Singh
Anirudh Prasad alias Sadhu Yad,,\'
Md Shalabuddin
Prabhunath Singh
Lalu Prasad Yadav
Ram Vilas Paswan
kar,hubansh Prasad Singh
George Fernandes
Sitaram Yadav
Sitaranl Singh
Dr. Shakeel Ahmad

JD(U)
RJD
RJD
RJD
RJD
JD(U)
RJD

BIHAR (40)

5Y
hO
hI
62

h3
64

65
h6

67
68
6'1
70
71

Bagaha (SC)
Bettiah
Motihari
Gopalganj
Siwan
Maharajganj
Chapra
Hajipur (SC)
Vaishali
Muzaffarp'"
Sitamarhi
Sheohar
Madhuba,,;

L)SP
R)D
)D(U)
R)D
RJD

INC

Appendices
72

73
74
75
76
77
78
7')
80
81
H2

tB
84
85
HI)
H7

88
8')
')()
IJ}

92
'13
1.)4
9S

Y6
Y7
')8

Jhanjharpur
Oarbhanga
Rosera (SC)
Samastipur
Barh
Balia
Saharsa
Madhepura
Araria (5e)
Kishanganj
Pumea
Katihar
Banka
Bhagalpur
Khagaria
Monghyr
Begusarai
Nalanda
Patna
Arrah
Buxar
Sasaram (SC)
Sikramg,lOj
Aurangabad
Jahanabad
Nawada (SC)
Gaya (SC)

979
Devendra Prasad Yadav
Md. Ali Ashraf Fatmi
Ram Chandra f'aswan
Alok Kumar Mehta
Vijay Krishna
Suraj Singh
Ranj~t Ranjan
Vacant
Sukdl'o Paswan
Taslimuddin
Uday Singh
Nikhil Kumar Chnudhary
Giridhari Yadav
Sushil Kumar Modi
Rabindra Ku. Ran"
Jay Prakash Narayan Yadav
Rajiv Ranjan Singh
Nitish Kumar
Ram Kripal Yadav
Kanti Singh
Lalmuni Chaubey
Mira Kumar
Ajit Kumar Singh
Nikhil Kumar
Ganesh Prasad Singh
Virchandra Paswan
Rajesh Kumar Manjhi

RJO
RJO
LISP
RJO
RID
LJSP
LJSP
SJp
RJO
BIP
SJP
RJO
SJP
RJD
RJD
JD(U)
IO(U)
RJO
RJO
BJO
INC
IO(U)
INC
RJO
RJO
RJO

CHHA TfiSGARH (11)

103
104
105
106
107

Bilaspur (SC)
Sarangarh (SC)
Raipur
Mahasamund
Kanker (ST)
Bastar (ST)

lOS

Durg

109

Rajnandgaon

Nand Kumar Sai

Vishnudeo Sai
Karuna Shukla
Punnulal Mohle
Guharam AjgaUe
Ramesh Bais
Ajit Jogi
Sohan Potai
Baliram Kashyap
Tarachand Sahu
Pradeep Gandhi

Panaji
Mormugao

Shripad Yesso Natk

Alemao Churchil Braz

99

100
101

Surguja (ST)
Raigarh (ST)

102

lanigir

SJP
BJP
SJP
BJP
SJP
BJP
INC

BJP
BJP

BJP
SJP

Goa (2)
110
111

BIP
INC

India 21)1):;
GUIARAT (2bJ

112
113
114

lIe;

llb
117
IlH
IF!

12(l

Kutch
Sllrendrallilgar
l'llllllilgM
Rajkllt
PlIrbandar

(;adhilVi Pushpadilll Shillllbhudiln

Koli Patd Sllll1abh.li C;andabhili
Ahir Vikrambhai Arjil11bhai Madam
Dr. Kathiria Vallabhhhal R,Ulljibhai
1'.111'1 Harilal Madhavjibhai (Ililribhili Pillel)

HlP

]unagildh
Amreli
Bh,1\'11.1gilr

Bilrild Jilsuhhili Dhan,lbh<li

Virjibhai Thummar
R,m;} Rajelldra Sillh ChanashV,ll11Si11h
(RaJllbhili Raila)
Varma Riltilill Kalid"s
HMin Pathak
l..K. Advani
Jivahhai Ambalal Patel
Kall(ldia Milheshklll1lar Mithabhai

INt
INt

HIP
IN(

BII'
HII'

HII'

HlP

124

Dh,1I1dhllka (SC)
Ahml'dabad
Gandhi11agar
Ml'hsana
Patan (SC)

12~

Bana~kanthil

126
127

Sabarkanthil
Kilpadvilllj
Dohad (ST)
Gndhra

Chavdil Hilrisillhaji I'mlapsinh.lji

Madhu~lldan Mistry
Vag!wla Shilnkefsillh Lax111c1llsinh
Kataril Babubhai Khil1lilbhai
Solanki Bhupendrilsinh I'r.1bh<ltsinh

Kaira
An.lnd
Chh()til Udaipur (ST)
Baroda
Broach
Sural
Mandvi (ST)
Bubilf (5T)

Dinsha Palel
Solanki Bhariltsinh Madhavsmh
Naranbhai Rathwa
Jayabl'n Thakkar
Vasava Mansukhbuai Dh.mjibh.ll
Kashiram Rallil
Chaudhary Ttlshilrbhai Amarsinhbhili
Kishanbhai Vestabhlli Pilll'l

INC
INC
INC

Ambala (SC)
Kurukshl'lra
Kamal
SOllepat
Rohtak
'Faridabild

SlIJi1
N.wl'{'n Jindal
Arvind Kumar Sharma
Kishan Singh Sang wan
Bhul)inder Singh
A\'tar Singh Bhadana

INC
INC
INC

Malwndragarh
Bhiwani

Indt'rjit Singh
Kuldt't'p Bishnoi

Hissar
Sirsil (5C)

Jai Parkash
Atrna Singh Gill

INC
INC
INC
INC

121

122
123

1211
12l)

no
131

132
133

134
Be;
136

1.17

HII'
Ill!'
INC

BII'
INC
IN(

INC
11)1'
B)f'

Bll'
BII'
HI!'
INC
INC

HARYANA (10)
138

BY
140

141
142
143
144

]45
146

147

BJP
INC
INi..:

HIMACHAL PI{ADESH (4)

148

Simla (SC)

Ohani Ram Shandil

INC

149

Mandl

Pratibhll Singh

INC

Appendices
ISO
I'll

K,mgril
Hilmirpur

481
Chandt'T KUIl1c1r
Surcsh Chandel

INC
13)1'

Abdul Rashid Shahl~l'l1

Olnar Abdullah
I\khbllllba Mufti
Thupstan Chhcw.mg
eh. Lal Singh
Madan Lal Sharma

j&KNC
j&KNC
I&KPDI'
IND
INC
INC

Hemlal Murmll
Shibu Soren
Furkan Ansari
Dhircndril Ag,lTW,ll
B,lbulal M(lfandi
fek Lal Mahtn
Chandra Shckhar Dube\
Subndh Kant Sahay
Sunil Kumar Milh,lt()
Bagun Sumbrdi
Sushilil Kcrkctt"
RamcshwM Oraon
Mannj Kumar
BhubncswM Pras,ld l'vlchtd

jl\lM

JAMMU & KASHMIR (6)

IS2
I'll
I Sol
1'1:'

I,'i()

1'17

B,lr,lmulla
Srinagar
Anantnilg
Ladilkh
Udhampur
jammu

1I1ARKHAND (14)
I:;l"\

I 'ill
IW

161
162
l{,)

11>4
IllS
1(,11

11i7
I(ltl

1(,9
170
171

Rajm,lhal (S 1)
Dumk.1 (ST)
Godda
ChalTa
Kodarma
Giridih
Dhanbad
Ranchi
Jamshl'dpur
Singhbhum (ST)
Khunti (ST)
Lohardaga (ST)
Pal'lnlll (SC)
H<llilribdgh

JMM
INC
RID

nJP
IMM
INC
INC

JMM
INC
INC
INC

RJD
U'I

KARNATAKA (28)

172
173
174
17S
176
177
178
179
180
181
182
183
184
185
186
187

Bidar (SC)
Gulbarga
Raichur
Koppal
Bcllary
Davangen.'

Chitradurga
Tumkur
Chikballapur
Kolar (SC)
Kanakapura
Bangalore North
Bangalore South

Vacant
Iqbal Ahnwd Saradgi
A. Vl'nkatesh Naik
K. Virupaxappa
(;. Karunakar" Reddy
C.M. SiddcSWilTil
NY Hanumanthappil
S. MalJikarjuniliah

R.L. Jalappa
K.H. Maniyappa
Tej,lshwini St't' Ramesh
Dr. H.T. Sangliana
Ananth Kumar
M.H. Ambareesh
Mandya
Chamarajanagar (SC) M.Shivanna
Cli. Vijayashankar
Mysore

INC
INC
INC
HJI'
HJP
INC

SIP
INC
INC
INC

BlP
SlP
INC
J0(5)

BJP

982
188
189

190
191

192

India 2005
Mangalore

D.V. Sadananda Gowda

Udupi
Hall58n
ChiknwgahJr
Shimoga

Manonnna Madhwaraj
H.D. Devegowda
D.C. Srikantappa
S. Sangarappa
Ananthkumar Hegde

193

Komara

194
195
196
197

Dharwad South
Dharwad North
Belgaum
Chikkodi (SC)

198
199

Bagalkot
Bijapur

Kunnur Manjunath Channappa

Prahlad Joshi
Angadi Suresh Chanabasappa
Jigajinagi Ramesh Chandappa
Gaddigoudar Parvatagouda Chandanagouda
Basanagoudar Patil (YATNAL)

BIP
SJP
ID(S)
SIP
B1P
B1P
B1P
B1P
BJP
BJI'
B1P
BJP

KERALA (20)
200
201
202
203
204
205
206
207
208
209
210

Kasaragod
Cannanore
Badagara
Calicut
Manjeri
Ponnani
Palghat
Ottapalam (SC)
Trichur
Mukundapuraru
Ernakulam
Muvattupuzha

211
212
21:1
214
215
216
217

Kottayam
Idukki
Alleppey
Mavclikara
Adoor (SC)
Quilon

218
219

Chirayinkil
Trivandrum

P. Kamnakaran

CPI(M)

A.P. Abdullakutty
P. Satheedevi
M.'. Vec;.?ndra Kumar
T.K. Hamza
E Ahammed

CPI(M)
CPI(M)

N.N. Krishnadas
S. Ajaya Kumar
CK. Chandrappan
Lonappan Nambadan
Dr. Sebastian Paul
r.c. Thomas (Pullolil)

JD(S)
CPI(M)
MLKS(
CPI(M)
CPl(M)
CPI
CPI(M)
IND

IFDP

K. Suresh Kurup

CPI(M)

K. Fnmcis George
Dr. K.S. Mano;
C.S. Sujatha
Chengara Surendran

KC
CPI(M)
CP1(M)
CPI
CPI(M)
CPI(M)

r.

Rajmdran
Varkala Radhakrishnan
P.K. Vasudevan Nair

CPI

MADHYA PRADESH (29)

220

Morena (SC)

221
222

Dhind

223
224

225
226
227

DJP

Ashok Chhaviram Argal

Dr. Ramlakhan Singh
Rameevak Singh (Babuji)

BJP
INC

Guna
Sagar (SC)

Jyotirndttya Madhavrao Scindia

INC

Virendra Kumar

Khajuraho

Dr. Ramkrishna Kushmariya "Baba lee"

OJP
OJP

Damoh
Satna

Chandrabhan Bhaiya

BJP

GaneIh Singh

OJp

Gwalior

Appt'ndices
228
229
230
231
232
233
234
235
236
2::17
238
2:19

240
241
242
243
244
245
246
247
248

Rewa
Sidh. (ST)
Shahdol (ST)
Balaghat
Mandla (ST)
Jabalpur
Seoni
Chhindwara
Bellll
Hoshangabad
Bhopal
Vidisha
Rajgarh
Shajapur (SC)
Khandwa
Khargon('
Dhar (ST)
Indort'
Ujjain (SC)
Jhabua (ST)
Mandsaur

983
Chandramani Tripathi
Chandrapratap Singh
D,llpat Singh Paraste
Gauri Shankar Chaturbhuj Bisl'n
Fdggan Singh Kulaste
Rakt'sh Singh
Neeld I'aleriya
Kamalnath
Khandl'Iwal Vijay Kumar (Munni Bhaia)
Sartaj Singh
Kailash Joshi
Shivraj Singh
Lakshman Singh
Thawarchand Gehlol
Nand Kumar Singh Chauhiln (Nandu Shaiya)
Knshna Murari Moghe
Chhalar Singh Darbar
Sumitra Mahajan
Dr. Satyanarayan Jatiya
Kantilal Bhuria
Dr. Laxminarayan Pandeya

BJP
HJP
HJP
SJP
SJI'
RJI'
SJp
INC
HJP
SJP
SJP
HJP
SJP
BJP
BJP
HjI'
HJP
SJP
SJp
INC
BJI'

MAHARASHTRA (48)
249
250
251
252
253
254
255
256
257
258
259
21iO
261
262
263
264
265

266

267
268
269

Suresh Prabhakar Prabhu

Rajapur
Ananl Geele
Ratnagiri
A.R. Antulay
Kolaba
Mihnd Murh Dt'ora
Mumbai South
Mumbai South Central Mohan Rawal!?
Mumbai North Central Eknath M. Gaikwad
Mumbai North East Kamal Gurudas
Mumbai North West Sunil Dutt
Govinda
Mumbai North
Paranjape Prakash Vishvanath
Thane
Shingada Damodar Barku
Dahanu (ST)
PiRgale Devidas Anandrao
Nasi..
Harischandra Devram Chavan
Malegaon (ST)
Chaure Bapu Hari
Dhule (ST)
Gavit Manikrao HOOlya
Nandurbar (ST)
Annasaheb M.K. Patil
Erandol
Y.G.
Mahajan (Sir)
Jalgaon
Adsul Anandrao Vithoba
BuIdhana (SC)
Dhotre Sanjay Shamrao
Akola
Ku. Bhavana Pundlikrao Gawali (patil)
Washim
Ananl Gudhe
Amravati

SS
55
INC
INC
SS
INC
INC
INC
INC
S5
INC
NCP

BJP
INC
INC
8}P

BJP
SS

BJP
SS
SS

lJt'1

India ZOO:;

27t)
271
272

Ramtek

Mohitl' Subodh Bahllr,lll

5S

NitgplIr
Bh,lndMil

Vil,lS MuttemwM

INC

(little Shishup,ll N,ltthll

BJ!,

27.1

Chllllllr

ShivilnkM Mahadl'llf,l(1 Suk.1ji

27~

Ch,llldr,lplif

Ahir 11,1I1sraj Gang.u,lI11

BJI'
HJI'

27')
27(1
277
271)
279
21\0
281
2H2
2H1

WMdha

WagmMl' Suresh G,'11.lpat

[lIP

Yavatm,ll

Rathod Harising NasMlI

Hingoli

Suryakant,l Pati!

UI!'
NU'

Nandl'd
!'<lrbhani

D.B. Patil

BJI'

Tukar,1m Ganpotrall Rl'n~l' 1'<1t11

SS

Jclln"
Aurang.1bad

DanVl' R,111salwb Dad.lr,lll I'atll

B]I'

Chimdrilkant Khaire

SS

Reed

Jilisingril(1 Gaikwad Patil

NC!'

Ldtur
Osmanabad (S(_')

Patil l{upatai Diliprall Nilangek.1T

BJP

Narhirl' Kalpana Ramt'sh

SS

28:;
2Rh
287

Slliapur

Dl'shmukh Subh,lSh

Pandharpllr (SC)

Athawale Rtlmdas B.ll1du

RP.,A)

Ahmt'dnagM

Cadak TlIkaram Gang.ldhcl!'

NCr'

21l1'

Kopargaon

E.V. Alias Balas,lheb Vikhe !'.ltil

INC

2HlI

Khed

Adh,liamo Patil Shiv,ljirdl 1

S5

2911
291
292

Punl'
Baramdti

Kalmadi Suresh
Pawar Sharadchandra l;(lvindr,lO

INC

Satar,l

Laxmanrao Pandur,lIlg Jadh,l\' (Patil)

NCT'

291

Kal'dd

Patil Shriniwas Dadas,'heb

NCI'

2lJ4

Sangli

Patil Prakshhapu Vasantdad'l

INC

295
246

khalkamnii

Man\.' Nivedita Sambhajirao

NCr

Kolh"pur

Mandlik SadashivrMl Dadoba

Ncr

Inner Manipuf

Dr. Thokchllm M\.'inya

INC

Outl'f Manipur (5T)

Mani Charcnamei

IND

Shillong

Paty Ripple Kyndiah

INC

Tura

Purano Agitok Sangma

AlTC

Vanilalzawma

MNF

W. Wangyuh

NPF

Sudam Mamdi

JMM

2H~

Surl'~hchilndri1

BJP

NCP

MANIPUR (2)

247
24H

MEGHALAYA (2)

MIZORAM (1)
301

Mizoram (5T)

NAGALAND (1)
Nagaland
ORISSA (21)

303

Mayurbhanj (5T)

Appendict's

304
;'05
306

307
30R
30Y
310
311
312
313
314
315
31n
317
318
319
320
321
322
323

Balasl)re
Bhadrak (SC)
lajpuT (SC)
Kcndr,'pM,\
Cuttack
]agatsinghpur
Puri
Bhub<lncSWM
Aska
Berlhlmpur
Koraput (ST)
Nllwr,lllKpul' (ST)
K,1lahantii
I'hulbani (SC)
Blliangir
Samb,llpur
DCllgarh
Dhmk.ln<ll
Sund,lrg,lrh (ST)
KennjhM (ST)

~85

M<lh,II111' hh<l U,lh,1I1 Aira Kharbel,l Swain

Ariull l'h.tran St'thi
Moh,.11 Jen,]
Arcildlld Nay,]k
Bhar\ruh,lrI tv\,]ht,lb
Br,lhrn,1I1,md,) \'.lI1d,l
Braj;] Ki"hprt, Irlp.lthy
Pr,lS,lnn,\ Kum.n I',l\,]sani
Hari HM Sw.lill
Cbandr,] S"khM S,lhu
GiriulMr C;,\(\\,Il\)',
l'arsLlf,llll M.ljhi
Bikr,llll Kt'sh,lrl DCll
Sugrib Sin!-\h
Sanged,l KUlllMi Singh nell
Prils,mna Arh,]ry']
Oharn1l'ndra Pr,\dhdfl
Tathagatd Satap,\thy
111,,1 Or,lIl1
Anant.l N"yak

BII'
BID
BID

BID
HID
HJD
BID
BJD

BID
INC
lNC

HJP
[lIP

RID
HIi'
BID
BIP
BID
BIP
HIP

PUNJAB (13)

324
325
326
327
328
329
330
331
332
333
334
335
336

Gurddspur
Amrib,lr
Tarn br,lIl
lulundur
Phill,lUl' (SC)
Hoshiarpul'
R(lpar (SC)
Patiala
Ludhiana
Sangrur
Bhatinda (SC)
Faridkot
Firozepur

Vinod Khilllll,l
NiWjut Singh Sidhu
Dr. Rattan Singh Ajnalit
Ran" CUqtlt Singh
Charanjit Singh Atwal
Avinash Ral Khi1llna
Sukhdev Singh Libra
Preneet Kaur
Sharanjit Singh Dhillon
Sukhdev Singh Dhindsa
Paramjit Kaur Gulshan
Sukhbir Singh Badal
ZOri1- Singh Maan

HIP
SAD
INC
SAD
BIP
SAD
INC
SAD
SAD
SAD
SAD
SAD

Nihal Chand Meghwal

Dhannendra
Ramsingh Ka~wan

BJP
BlP
SIP

Shish Ram Ola

Subhash Meharia
Girdhari Lal Shargava

INC

RIP

RAJASTHAN (25)
337
338
339

Ganganagar (SC)

340
341
342
343

Jhunjhunu
Sikar

Bikaner
Churu

Jaipur
Dausa

Sachin Pilot

BJP
BJP
INC

India 2005

986
344

345
34(>
347
348
349

350
351
3.<;2
353
354
355
3%
357
3SR
3'19
360

361

Dr. Karan Singh Yadav

Alwar
Bharatpllr
Vishvendm Singh
Bayana (SC)
Ramswaroop Koli
Sawai Madhnpur (ST) Namo Narain
Rasa Singh Rawat
Ajmt'T
Tonk (5(')
Kailash Mcghwal
Raghuvl'Cr Singh Kosh"l
Kota
Dushyant Singh
lhalawal'
Banswam (ST)
Dhan Singh Rawat
Mahav('cT Bhagora
SalumbeT (S'I')
Kimn Mahcshwari
Udaipur
Shrichand Kriplani
Chittorgarh
Vijayendrapal Singh
Bjilwara
Pali
Pus!, Jain
B. Sushl'Cla
Jaime (SC)
Manvcndra Singh
Barmer
)aswant Singh Bishnoi
Jodhpur
Bhanwar Singh Oangawas
Nagaur

INC
BJP
BJP
INC

BJP
SJP
BIP
HII'
HJP
HIP
HIP
BJP
BJP
SJP
HJP
ilJ!'
BJ!'
HIP

SIKKIM (1)

362

Sikkim

Nakul Das Rai

SDF

C. Kuppu:sami
Daynidhi M;uiln
T.R. SaHu
A. Krishnaswamy
A.K. Moorthy
R. Velu
K.M. Kader Mohidren
D. Venugopal
N. R.,machandran Gingl'e
K. Dhanaraju
K. Venkatrlpathy
E. Ponnllswamy
Dr. R. Senthil
E.G. Sligavanam
K, Rani
K,V. Thangkabalu
Subbulakshmi Jilgadeesan
R. Prabhu
E.V.K.S. Elimgovan
K, Subbal'ayan
Dr. C. Krishnan

DMK
DMK
OMK
OMK
PMK
PMK
DMK
DMK
MDMK
PMK
DMK
PMK
PMK
DMK
INC
INC
DMK
INC

TAMIL NADU (3 4 )

363
3M
3h5
3h6
367
368
369
370

:m
372
373
374
375
376
377
378
379
380
381

382
383

Madras North
Madras Cl'ntral
Madras South
Sriperumblldur (SC)
Chengalpattu
Arakkonam
Vl'llorc
'Iiruppattur
Vandavasi
Tindivanam
Cuddalorc
Chidambaram (SC)
Dharmilpllri
Krishnagiri
Rasipuram (SC)
Solem
Ttruchcngode
Nilgiris
Gobichcttipalayam
C\\imbatnrc
Pollachi (SC)

1NC
CPI
MDMK

Appendices

384
385
386
387
388
38LJ

:WO
391
392

3LJ3

344
345
3%
347
398
399
400

40]

Palani
Dindigul
Madurai
Pl'riyakulam
Karur
Tiruchirappalli
I'erambalpur (SC)
Mayiladuturai
Nag,'pallinam (SC)
lhanja\'ur
rlldllkkoltai
Sivaganga
Ramanathapuram
Sivakasi
Tirunelveli
Tenkilsi (SC)
']huchendur
Nagercoil

987
S.K. Kharventhan
N.S.v. Chitthan
P. Mohan
J.M. Aaron Ra~hid
K.C. Palanisamy
L Cant'san
A. Riljil
Mani Sh<lnkar Aiyar
A.K.S. Vijilyiln
S.s. l'illilnimanicki1ll1
S. Rtgupathy
P. Chiclilmbari111\
M.s.K. Bhavani Riljt'11thirim
A. Rilvinchandran
R. Dhilnuskodi Athithan
M. Appadurili
V. Radhika 5ell-i
A.V. lll'llarmll1

INC
INC
CPI(M)
INC
DMK
MDMK
DMK
INC
DMK
DMK
DMK
INC
DMK
MDMK
INC
CPI
DMK
CPI(M)

TRIPURA (2)

402
403

Tripura West
Tripura East (S'[)

Khagen DilS
Baju Ban Riyan

Cl'l(M)
(,PI(M)

Manabmdril SIl,1h
Maj.Ct'n. (Rdd.) Hhllwan (,h.mdr.1
Khanduri (AVSM)
BilChi Singh Raw.1t
K.C. Singh naba
Rajendra Kumar

fiJI'

UITARANCHAL (5)

404
405

Tehri Garhw"l
Garhwal

40h
407
408

Almora
Nainital
Hardwar (SC)

HJP

HJP
INC
SJP

UTrAR PRADESH (80)

409

410
411
412
413
414

415
416
417
418
419
420

Bijnor (SC)
Amroha
Moradabad
I~.,mpur

Sambhal
Sudaun
Annla
Bareilly
Pilibhit
Shahjahanpur
J(heri

Shahabad

Munshiram
Harish Nagpal
Dr. Shafiqurrahmiln B;trq
Smt. P.Jaya {'r,)da Nahat,)
Pro. Ram Gopill Yada\'
Sa\t't.'m Iqbal Sh"f\,ant
Kunwar Sarvrilj Singh
Sant(1sh Gangwar
Smt. Manl'l<a Gandhi
Kunwar Jilin Prasad
Ravi Prakash Verma
lIiyas Azmi

RLD
iND
SJp

SJP
5JP

SIP
JD(U)
SJP
SJP
INC
SJP

SSP

India 2005

lJBR

421
422
423
424
425
426
427
42H
424
430
431
432
433
434
435
436
437
43R
43Y
440
441
442
443
H4

445
446
447

448
44Y
450
451

452
453
454
455
451)
457
458
4SI.}
460
461
462
463
464

Sitapur
Misrikh (SC)
Hardoi (SC)
Lucknnw
Mohanlal Ganj (SC)
Unnao
Rae Bareli
Pratapgarh
Amethi
Sultanpuf
A'kbarpur (SC)
Faizabad
Bara Banki (SC)
Kaiserganj
flahraich
Balrampur
Gonda
Basti (SC)
Domariaganj
Khalilabad
Bansgaon (SC)
Gorakhpur
Maharajganj
Padrauna
Deoria
Salcmpur
Ballia
Ghosi
Azamgarh
Lalganj (SC)
Machhlishahr
Jaunpur
Saidpur (SC)
Ghazipur
Chandauli
Varanasi
Robertsganj (SC)
Mirzapur
I'hulpur
Allahabad
Chail (SC)
Fatehpur
Banda
Hamirpur

BSP
BSP
SJP
SJP
SJP
BSP
INC
5fP
INC
SSP

R,\jt!sh Ventllllill
Ashok ~ Rawat
Usha Vel!lIIlIQI
Atal Bih,uril V~
j,li Pr,lka!ih
Brdje~h (l'~

SlJni,l G.lIndh
AkslMY I'rillttap SiIngh "(;opal Ji"
Rah ul G.mdiImJ
Mohd. lilhilli'
Vdcant
Mitr.tSt'n
Kamin Pr.l$11d1
Beni Pr.1~<ld Verma
Rubab Sa;yeda
Srij Bhush.m Sharan Singh
Kirti Vd~~ Singh Alias Raj.l 8haiya
Lal Mill1lf Pl!asad
Mohd. M~
Bhalchlandiroll Yadava
Ma_eer Prasad
Adltya Nath
rankaj
Balcshwar Yadav
Moh.1n Singh
Harikeval Prasad
Chandra Sbekhar
Chandradeo Prasad Rajbhar
R<1makant Yadav
Daroga Prasad Sam;
Vmakant Yadav
Parasnath Yadava
Tufani Sam;
Afajal Ansari
Kailash Nath Singh Yadav
Dr. Rajesh Kumar Mishra
Lalchandra
Narendra Kumar Kushwaha
Atique Ahamad
Kunwar Rftvati Raman Singh ajias Mani
Shalkndra Kumar
Mahndra Prasad Nishad
Shyama Oman Gupt
RajNr.lyan alias Raju Mahraj

BSP
BSP
SJP
SIP
SJP
S)p
BSP
SSP
SSP
INC
BfP
B1P
NLP

511'
SjP
SJP(R)
SJP
BSP
SJP
ssr
SJP
SJP
SjP
BSP
INC
8SP
BSP

Ji

SJP
SJP
SIP
SSP
SIP

SJP

Appendire

4(\5
466
407
468
409
470
471
472
473
474
475
476
477
478
479

989

Jhansi
Jalaun (SC)
Ghatampur (SC,
Bilhaur
kanpur
Etawah

Rapnmr.lIj 'Slmgh Shah"

SIP

Kannauj

.A~

Sj/'

Farrukhabad

l1n.mdla:1I EihllSh,lI1 Sjngh (MlInno() Babul

Mainpuri

VoM'Jlrm.1

)alesar

rro.s~. '5\1'\V,\\ \\"v,\w\

Etah

Ku. L'(>vendl'iI

Fimzabad (SC)

5j!'

Agra

Ram Ji L,,\ Suman

Raj Rabbar

Mathura

Milnvendr.1 Singh

INC

Hathras (SC)

Kishan Lill Diler

BJP

480

Aligarh

Bijendra Singh

INC

481

Khurja (SC;

Ashnk Kumar rradhan

BJI'

482

Bulandshahr

Kalyan Singh

BjP

483
484
485
486
487
488

Hapur

Surcndr" rrabsh (;0),,,1

INC

Ml''t'rut

Mohd. Shahid

BSP

Baghpat
Muzaffarnagar

Ailt Singh
Ch. Munawwilr Ilasan

Sjl'

Kairana

Anuradha Choudhary

RLD

Saharanpur

Rasheed Mas(lod

5jr

(lundr.agMI 5ingh YMl.lI'

Bhanaa 1'Ir~ 'Sin~h Vl'rllla

S)!'

~'~mmKori

5J!'

R.1p bmn lP.1I1

Pr..b!iIn ~a",~'i11

INC

BJP
!_lSI'

'tlidlm'

Sin~;h

SJI'
S)P

'Y,1d,w

SIP
SjP

RID

WE.<iT BENGAl. (42,

489

Coodt Dmar (SC)

Hit!'n fj,um"

AIFB

4'JO

Alipwduars (Sn

RSI'

491
492
493
494
495

JaJpaiguri
Darjeeling

Joachim ItlXl.l
Minati Sen

496

497
498
499
500
501
502
503

Joynagar

504

Mathurapur ;(SC)

Daw,1 Narbula
I'riyaranjill1 Dilsmunsi

Raiganj

crl(M)
INC
INC

R5r

Maida

Ranl'n Barman
A.B.A, Chani Khiln Choudhurv

INC

Jangipur

Pranab Muklwrjl'('

INC

Murshid.1bad

Abdul M.lnnan ifoss,1in

INC

Betflampoft'
Krishnagar

Adhir R,lnjan Chowdhury

INC

Jyolirmoyl't' Sikdilf

CPI(M)

Alakesh DilS

CPl(M)

Balurghat (SC)

Nahadwip

(~,

Baraaat

Subrata BoS{'

AIFe

Basirha\

Ajay Chakrdborty
Sanat Kumilr MandaI

CPI
RSP

Basudcb Barmiln

CPI(Ml

(SCl

India 2005

'NO

505
506
507
50H
509

Dum Dum

Amitava Nandy

CI'I(M)

Calcutta North West

Sudhangshu Seal

CPI(M)

:'i1O

Calcutta North East

Md. Salim

CI'I(M)

511
512

Calcutta South

Mamilta Banerjel'

AITC

Howrah

Swadesh Chakr.lbortty

CPI(M)

~13

Uluberia

Hannan Moll'lh

CPI(M)

514

Serampore

Santasri Ch,1lterjl't.>

CI'I(M)

:'il:'i

Hooghly

Rupchand Pal

C!'I(M)

51h

Arambagh

Anil Basu

CPI(M)

Diamond Harbour

Samik Lahiri

CPl(M)

jadavpur

Sujan Chakraborty

CPI(M)

Barrackpore

Tarit Baran lopdar

CI'I(M)

517

I'anskura

Gurudas [)<lsgupta

(PI

:'ill!

Tamluk

Seth Lakshm,1n Chandra

CPI(M)

Contai

Prasanta Pradhan

CPI(M)

51<;
520
.'i21
522
523
524
525
521>
527
528
52'1
530

Midnapofl>

Prabodh Panda

(PI

Jhargram (ST)

Rupchand Murmu

CPI(M)

Purulia

Bir Singh Mahato

AIFH

Bankura

Acharia Basudeb

CPI(M)

Vishnupur (SC)

Susmita Bauri

CPI(M)

Durgapur (SC)

Sunil Khan

CPI(M)

As,msol

Bikash Chowdhury

Cf'I(M)

Burdwan

Nikhilananda Sar

CPI(M)

Katwa

Mahboob Zahedi

CPI(M)

Bolpur

Somnath Chatterjl't.

CPI(M)

Birbhum (SC)

Dome Ram Chandra

CPI(M)

ManoranjilJ1 Bhakta

INC

Pawan Kumar Bansal

INC

Mohanbhai Sanjibhai Delkar

BNP

Dahyabhai Vallabhbhai Patel

INC

ANDAMAN & NICOBAR ISLANDS (1)

531

Andaman & Nicobar Islands

CHANDIGARH (1)

532

Chandigarh

DADRA & NAGAR HAVELl (1)

533

Dadra & Nagar Haveli (ST)

DAMAN & DIU (1)

534

Daman and Diu

NATIONAL CAPITAL TERRITORY OF DELHI (7)

535

New Delhi

536

537

Ajay Makan

INC

South Delhi

Vijay Kumar Malhotra

BJP

Outer Delhi

Sajjan Kumar

INC

Appendices

538
539
540
541

East Delhi
Chandni Chowk
Delhi Sada ..
Karol B,'gh (SC)

991
Sand(.>ep Dikshit
Kapil Sibal
Jagdish Tytler
Smt. Krishna Tirath

INC
INC
INC
INC

Dr. P. Pookunhikoya

JD(U)

M. Ramadass

PMK

LAKSHADWEEP (1)

542

LakshadwC\'p (ST)

PONDICHERRY (1)

543

Pondicherry

Abbreviations used for Parties: Akhil Bharatiya Loktantrik Congress - ABLC; All
India Ann.., Dravida Munnetra Kazhagam - AIADMK; All India Forward Bloc - AIFB;
All India Maili~lttehadul Muslimeen - AlMEIM; All India Trinamool Congress AITC; Asom Gana Parishad - ACP; Bahujan Samaj Party - BSP; Bharatiya Janata PartyBlP; Bharatiya Navshakti Party - BNP; Bharipa Bahujan Mahasangh - BBM; Biju Janata
Dal - BJD; Communist Party of India - CPI; Communist Party of India (Marxist) CPI(M); Communist Party of India (ML) Liberation - CPI (ML) L; Dravida Munnetra
Kazhagam - DMK; Haryana Vikas Party - HVP; Himachal Vikas Congress - HVC;
Indian Federal Democratic Party - IFDP; Indian National Congress - INC; Indian
National Lok Dal - INLD; Jammu & Kashmir National Conference - J&KNC; Janata
Dal OP) - JD OP); Janata Dal (Secular) - JD (5); Janata Dal (United) - JD (U); Jharkhand
Mukti Morcha - JMM; KeTala Congress - KC; Lok Dal (Secular) - LD (5); Lok Jan
Shakti Party - LJSP; Marumalarchi Dravida Munnetra Kazhagam - MDMK; Mizo
National Front - MNF; Muslim League - ML; Nagaland Peoples Front - NPF;
Nationalist Congress Party - NCP; Pattali Makkal Katchi - PMK; Peasants & Workers
Party of India - PWP; Peoples Democratic Party - PDP; Rashtriya JanataDal - RJD;
Rashtriya Janata Dal (Democratic) - RJD (D); Rashtriya Lok Dal - RLD; Republican
Party of India (A) - RPI (A); Revolutionary Socialist Party - RSP; Samajwadi Janata
Party (Rashtriya) - SJP (R); Samajwadi Party - SJP; Samata Party SP; Shiromani Akali
Dal - SAD; Shiromani Akali Dal (SS Mann) - SAD (M); Shiv Sena - 55; Sikkim
Democratic Front - SDF; Swatantra Bhara! Paksh - SBP; Telangana Rashtra Samiti TRS; Telugu Desam Party - TDP; Independent-IND; Nominated - NOM.

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