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egions, but how to allocate appropriate funds for their development. A related, but equally important question is proper implementation of projects contemplated with all the good intention by the plan- ners. In the existing paradigm, backwardness is measured from Human Deprivation Perspective, based on Capability Short- falls in terms of different social and economic components. The approach takes the rule of uniformity by which the Back- ward Districts are identifi ed as per the components mentioned earlier by attach- ing equal weights to each one of them. However, the actual data gathered from Blocks may call for a differential approach of funding on various components which go towards the creation of an Index of Backwardness. In other words, not all components may be contributing uni- formly towards the existence of backwardness in a Block. If Block is taken to be the unit of disbursement, a methodology should be devised to suitably differentiate the importance of different social and economic components of backwardness region and location wise. One such approach toward aggregating the components is Principal Component Analysis (PCA). Broadly speaking, Public Infrastructure can be categorized as follows: A. Physical Infrastructure, like Roads, Electrifi cation, Irrigation etc. B. Financial Infrastructure like Cooperatives, Banks etc. C. Health Infrastructure like PHC, SHC, Rural Hospitals etc. D. Education Infrastructure like number of schools, teacher student ratio etc. An aggregate index of backwardness with variable weights attached to shortfall of each type of infrastructure from a socially and economically desirable minimum could be calculated using PCA (Raychaudhuri and Haldar, 2009). The weights really refl ect importance of capability shortfall in any particular dimension according to local needs and conditions. The main problem with the existing planning process is to initiate well intended schemes based on certain uniform percentage based rules of allocation across all the backward regions in India. This approach is self-defeating from the very beginning because the uniform rule ignores the variation of locations and needs across different regions in India. It is about time more fl exibility is allowed in all such devolution schemes. What about corruption and other money laundering activities? We would suggest that these are really problems of monitoring and enforcement in the implementation stage and are not part of planning. One must fi rst try to achieve more perfection at the planning stage and then go for its perfect implementation. Thus, a proper mode of devolution of funds is the necessary condition of success to address backwardness and proper implementation is really a suffi cient condition for its success. Conclusions The issues raised above are to highlight some of the defi ciency in the planning process of India today. This is not to deny the historical importance of planning in India nor does it ignore its role at present. Planning, even in its much smaller role today, can be an important means of addressing concerns of average citizen in India. But what is required is a reorientation and repositioning of some of the goals and objectives pursued in our planning process for years. Also, equally important, is to rethink about modes of D EVELOPMENTAL PLANNING devolution of funds to alleviate poverty and inequality in the society. We should not succumb to a sense of despair that nothing can be implemented in a society which has lost some of its moral and ethical values. We must not forget that implementation comes later than planning and we should never err too much in the stage that precedes implementation. References and Additional Thinking • Banerjee, A., P. Gertler and M. Ghatak. “Empowerment and Effi ciency: The Economics of Agrarian Reform”, Mimeo, 1998. • Desai, Padma and J. Bhagwati. Planning for Industrialization - A Study of Indian Industrialization and Trade Policies, OECD Development Center, Oxford: Oxford University Press, 1970. • Raychaudhuri, Ajitava and Sushil K. Haldar. “An Investigation into the Inter-District Disparity in West Bengal, 1991-2005”, Economic and Political Weekly, XLIV, Nos. 26 and 27, June 27, 2009, pp.258-263. • Raychaudhuri, Ajitava,. Land Reforms in West Bengal, India, Paper prepared for the World Bank sponsored Scalingup Poverty Reduction Conference in Shanghai, 2004. • Srinivasan, T.N. Eight Lectures on India’s Economic Reforms, Delhi: OUP, 2000. • World Bank- Agriculture and Rural Development in India: Sustaining Reform, Reducing Poverty, Delhi: OUP, 2003. (The views expressed in the write-up are personal and do not reflect the offi cial policy or position of the organization.) THE INDIA ECONOMY REVIEW 129
P LANNING P ARADIGM Is Big Dam a Planning Paradox? Obstacles in the path of energy security — the case of Hydro-electricity — the case of inter-state confl icts — Arunachal Pradesh and Assam Joyeeta Bhattacharjee Associate Fellow, Observer Research Foundation, New Delhi As India strives to become a global economic powerhouse there is growing pressure on the country to mobilize its resources to complement the growth of economy. Flawless energy supply is an important stimulus for attaining this goal. Hydroelectricity has been identifi ed to be major source of India’s energy needs. The economically exploitable power potential in India through medium and large projects has been estimated to around 84,044 MW of at 60 percent load factor— that is about 148,000 MW capacity of which Arunachal Pradesh alone has a potential of producing 50,000 MW. 130 THE IIPM THINK TANK Hence, the state wants to exploit its hydropower potential and planning to construct nearly 100 big and small dams. Dam building in Arunachal Pradesh also got encouragement due to launching of 50,000 Megawatt (MW) Hydroelectric Initiative by Prime Minister of India in 2003 to speed up development of the hydropower in the country. The initiative proposed to develop an installed capacity of about 50,000 MW through 162 projects in 16 states by 2017. Out of these 162 schemes 42 are in Arunachal Pradesh with 27,293 MW capacity. Hence, Arunachal Pradesh has emerged as a major centre of dam building in India. Like other dam projects,
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THE INDIA ECONOMY REVIEW Volume VII
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IIPM: THE FUTURE IS HERE Since its
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CREDITS Founder Dr. M. K. Chaudhuri
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P LANNING P ARADIGM In the State of
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P LANNING P ARADIGM Almost all wond
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P LANNING P ARADIGM Central Agency
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P LANNING P ARADIGM paign in 1992:
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P LANNING P ARADIGM The Complexity
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P LANNING P ARADIGM future from the
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P LANNING P ARADIGM view is the not
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crises. This note contends that the
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proximately 25% of the then global
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process of economic growth. Newly d
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Japanese radio with one transistor
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I NTEGRATED PLANNING THE INDIA ECON
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in such times. The other institutio
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nomic planning had entered the lexi
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Entire network works out as a singl
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nomic order. In his infl uential 19
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I NTEGRATED PLANNING The experience
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I NTEGRATED PLANNING THE INDIA ECON
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I NTEGRATED PLANNING Table 1: Centr
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macroeconomic environment and the p
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Prashant Singh Country Head - Direc
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But there lied the fault. The fi rs
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T RANSFORMATIVE PLANNING THE INDIA
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straining rules and institutions we
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tion and higher growth requires rap
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T RANSFORMATIVE PLANNING THE INDIA
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Table 1: Plan Outlays and Expenditu
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The second revision lowered the wei
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Domestic Product not only fl uctuat
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P LANNING LA LANNI NNING NG P ARADI
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P LANNING P ARADIGM nomic growth ra
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P LANNING P ARADIGM Commission play
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P LANNING P ARADIGM Whither Economi
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P LANNING P ARADIGM achieving “mo
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