Economic planning is a well accepted method of economic development everywhere now-a-days. There cannot be a dilemma about the acceptance or non-acceptance of planned method of development.

Again since 1st April 1986, the Assam Government has introduced the system of decentralised planning as per the recommendations forwarded by the Hanumantha Rao working Group (1984) in connection with district level planning. But the decentralised planning introduced in Assam is confined to sub-divisional level instead of district level as introduced in other states of our country.

Main Objective of Planning in Assam :

Thus the main objective of economic planning in Assam are almost the carbon copy of the basic objectives of Indian economic planning. So, it can be said �Growth with social Justice� has been considered as the main objectives of economic planning in Assam.

Although some attempts were made to start systematic planning in the country before independence, however, the real beginnings of planning in India were made when in March 1950, the Indian planning Commission was appointed with Pt. Jawaharlal Nehru as its chairman. The draft outline of the First 4 Five year Plan covering the period from April 1, 1951 to March 1956 was presented by the Commission in July 1951. Similarly, state plans were also presented by different State Governments of Indian union before the Planning Commission for its approval. In this way the First Five Year Plan had its start also in Assam along with other States. The first Five Year Plan was duly followed by the Second and Third Five-Year Plans.

At the end of Third Five Year Plan on March 31, 1966, Indian economy experienced various problems like droughts, recession, devaluation of the rupee, uncertainty of foreign aid etc. and thus the planners had to declare the next three-year period formulated by the planners to carry on the work of planning during this period which was again followed by the Fourth Plan, 1969-70 to 1973-74. The Fifth Plan, originally scheduled for completion at the end of 1978-79, was terminated at the end of 1977-78 by the Janata Government that came in power and draw up its own Draft Five Year Plan, 1978-79 to 1982-83 based on rolling plan concept reflecting its own policies and priorities. Again this Plan was terminated after it had run through a year and a new Sixth Plan (1980-81 to 1984-85), prepared by the Congress (I) government, was replaced. At the end of the Sixth Plan in March 31, 1985, the Seventh Plan (1985-86 to 1989-90) was formulated by the Planning Commission, Similarly, the Government of Assam has also finalised its Seventh Plan with other States of India and implemented the same successfully.

In the mean time, the Eight Plan of the States has already been finalised and it is being implemented since 1992-93 along with other states of the country.

All these Five Year Plans of Assam are discussed below:

The First Five-Year Plan of Assam, though aimed at an integrated development of all sectors, was conceived as a modest effort designed to attain the following two objectives :

(i) removing the shortage and disequilibria in the economy following the world war and partition and (ii) fulfilling the need of a few most essential items of development in which the State was hitherto lacking. With these objectives in view, high priority was attached to items like agricultural production, setting up and development of Communication in the rural area and inaccessible hills, etc.

The programme also had a long-range objective in view viz ; to strengthen the economy at the base and initiate institutional changes which would pave the way for more rapid advance in future.

Thus the First Plan of Assam could not frame a long list of ambitious objectives due to paucity of state�s resources and heavy dependence on central assistance. Rather the plan simply emphasised to strengthen the basic infrastructural facilities and administrative machinery along with the improvement in the standard of social services.

Initially, the planning commission accepted the size of First Plan in Assam at Rs. 17.5 crores. Later, due to further efforts by the state Government and subsequent adjustment in the overall National Plan the ultimate size of the State�s First Five-Year Plan stood at Rs. 21.5 crores. Against this provision, the size of actual expenditure of the plan was to the tune of Rs. 20.50 crores (94.5 percent). The following table (Table No.-1) shows the sector-wise distribution of plan provision and actual expenditure of the First Five-Year Plan in Assam.

Table No. 9.1.

(Rs.in lakhs)

The above table reveals the plan provision and actual plan expenditure of the First Plan in Assam under its different heads : Among the different heads of plan expenditure, the highest amount of expenditure was incurred on social services, Rs. 746.18 lakhs, which was 36.39 percent the total expenditure and followed by irrigation and power- 22.45 percent, agriculture - 17.68 percent Transport and Communication- 17.02 percent and Co-operative and community development-5.99 percent. Expenditure under different heads as percent of plan provision varied between 86.93 percent to 108.18 of the against the total plan provision of Rs. 2084.88 lakhs, the size of total plan expenditure was Rs 2050.79 lakhs which was 9.3 percent of the total plan provision during the First Plan.

Just like other states Assam had financed its plans out of own (state�s) resources and central assistance in the form of loans and grants. The following table will show the financing of the First Plan in Assam.

Note :- Figure in bracket show percentages out of total outlay.

Priorities

The First Five-Year Plan of Assam followed a little bit different pattern of priorities from that of India. Irrigation and power received the topmost priority in the national plan claiming 29 percent of the total outlay. But social services received the highest priority in the state plan of Assam claiming 36.39 percent of the total outlay and irrigation and power received the next priority which claimed 22.45 percent of the plan outlay.

In the national plan, transport and communication got the second place whereas it got the fourth place in order of priorities in the state plan of Assam.

Agriculture and community development occupied fourth place in the national plan claiming 15.0 percent of the total outlay whereas the same head occupied third place in the state plan of Assam claiming 17.68 percent.

In both national plan and state plan of Assam , industry and mining occupied the last place in order of priorities claming 6 percent and 0.47 percent of the total outlay respectively.

It would be better to look into the achievements of the First Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment etc.

In case of growth rate of state income, the state income at constant prices rose by 19.8 percent during the First Plan as against the target of 12 percent. Thus there was an increase in the state income at constant prices from Rs. 223.6 crores in 1950-51 to Rs. 267.9 crores in 1955-56. The growth rate of state income (19.8 percent) was even higher than that of national income which was 18.4 percent during the first plan. Further the percentage of the income of Assam to the national income increase from 2.51 in 1950-51 to 2.55 in 1955-56.

But at current prices, the state income of Assam rose by only 7.7 percent as against 4.7 percent growth rates of national income during the First Plan. Growth prices due to fall in the price level both in India and Assam during the First Plan period.

Assam is suffering from the problem of both unemployment and underemployment. Although the 1951 census revealed that out of the total employable persons in Assam 99 percent were employed but it concealed a considerable amount of underemployment in the rural areas. The density of population per 100 acres of net area sown in Assam was 232 as against 135 in India as a whole. This is a reflection of the pressure of population on land in Assam. In the absence of precise measurement of the volume of unemployment, it can be easily understood that unemployment posed a great problem at the time of beginning of First Plan in Assam. As per Government�s calculation it is found that during the First Plan period about 0.4 lakhs jobs were created in Assam. Due to non availability of data it is not possible to measure the rate of growth of employment generation or the rate of change in the size of unemployment for the economy of the state as a whole during the First Plan period.

The Second Five Year Plan of Assam was more or less, a continuation of development efforts commenced in the First Plan. The plan sought to carry forward the institutional changes to make the economy of the State more progressive in terms of defined economic and social ends on the one hand, and on the other, aimed at balanced distribution of plan funds under the different developmental sectors. The Second Plan laid emphasis on the provision of adequate transport facilities, an expanded and diversified industries and agricultural programmes, a much larger programmes for the improvement of tribal and other backward sections and sizable provision for power development.

The Second Plan was a bit more ambitious and effective than the First Plan as it put much emphasis on industrialisation and also tried to re-build rural economy with the objective of attaining socialistic pattern of society.

The Second Five Year Plan of Assam mentioned the same objectives in its plan document as mentioned in the national Second Plan. The Second Plan of the State did not formulate any specific objectives for the regional economy of the State and thus neglected its specific regional problems. Therefore, following objectives of the national second plan were incorporated in the Second Five Years Plan of Assam.

1. "a sizable increase in the national income so as to raise the level of living in the country :

2. rapid idustrialisation with particular emphasis on the development of basic and heavy industries ;

3. a large expansion of employment opportunities ;

4. reduction of inequalities in income and wealth and more even distribution of economic power."

Thus the Second Plan of Assam could not formulate any specific objective. The state�s economy suffered from specific problems of its own. It would have been better if the Second Plan of the state put much emphasis on the improvement of both agricultural productivity and socio-economic infrastructure to lay the foundation of industrialisation in the State.

The plan provision for the provision for the Second Five Year Plan in Assam was to the extent of Rs. 57.73 crores. Against this provision, the size of actual plan expenditure was to the tune of Rs. 54.48 crore which was 94.3 percent of the plan provision during the Second Plan period in Assam. The following table (Table No. 9.3) shows the sector-wise distribution of plan provision and actual expenditure of the Second Five Year Plan in Assam.

Table No. 9.3

The table given above reveals the plan provision and actual plan expenditure of the Second Five Year Plan in Assam under its different heads. Among the different heads of plan expenditure, the highest amount of expenditure was incurred again on Social services. Rs. 2017.36 lakhs, which was 37.02 percent of the total expenditure and followed by Co-operative and community development-14.02 percent, Agriculture 13.5 percent, Irrigation and power- 12.7 percent, Transport and Communication 12.2 percent and Industry and mining 8.05 percent. Further, expenditure under different heads as percent of plan provision varied between 73.6 percent to 153.9 percent. Against the total plan provision of Rs. 5,773,69 lakhs during the Second Plan, the size of total plan expenditure was Rs. 5,448.21 lakhs which was 94.3 percent of the total plan provision during the Second Plan period.

The total final outlay of the Second Five-Year Plan in Assam was Rs. 5,448.2 lakhs. From the table no. 9.3 it can be estimated that increase in the actual outlay in the Second Plan of Assam over the First Plan was 166 percent as against the corresponding increase by 135 percent in the case of the national Second Plan. Further, the First Plan outlay of Assam as percent of that of all India was only 0.9 percent but the Second Plan outlay of Assam constituted 1.2 percent of that of all India. But considering its relative economic backwardness, population ratio and development potential, this higher ratio and development potential, this higher ratio of plan outlay was inadequate.

The pattern of priorities followed in the Second Five-Year Plan of Assam was little bit different than that of all India. Transport and Communication received the topmost priority in the national plan claiming 28.0 percent of the total plan outlay followed by industry and mining (24 percent). But in the Second Plan of Assam, social services received the top most priority claming 3702 percent of the total plan outlay and Co-operative and community development received the next priority in the plan claiming 14.02 percent of the total state plan outlay.

In order of priorities, industry and mining secured second place in the national plan claiming 24 percent of the plan outlay whereas the same head secured sixth place in the state plan claiming only 8.05 percent of the state plan outlay. Thus it reveals that there was a definite shift in the priority of the Second Plan of India for building a strong industrial base. But in Assam�s plan, although the percentage of outlay for industry has increased from 0.5 percent under the First Plan to 8.05 percent under the Second Plan but the response is very poor in comparison to national priority. Thus this cannot be considered as a shift towards industrialisation in the State.

Further, there were sharp decline in the percentage of the outlay from First Plan to Second Plan both for irrigation and power from 52.4 percent to only 12 percent and for transport and communication fro m 17.02 percent to 12.2 percent. Thus the pattern of priority followed in the Second Plan of Assam had no systematic basis. As the social services received much importance under the Second Plan of Assam at the cost of two very important sectors like irrigation and power and transport and communication which could have build up a solid economic infrastructure, thus the pattern of priorities followed in the plan cannot be termed as economically, sound, judicious and effective for the State�s economy.

The following table presents he financing of the Second Five-Year Plan in Assam

Note : Figures in brackets show percentages out of total outlay.

The table reveals that out of total outlay Rs. 54.5 crores, the share of state�s resources was Rs. 23.5 crores which was 43.1 percent of the total outlay and the rest Rs. 31.0 crores came in the form of central assistance which was against 56.0 percent of the total plan outlay of the Second Five-Year Plan in Assam. Thus the state�s dependence on the central assistance for financing its plan has declined from 84.3 percent during First Plan to 56.9 percent during the Second Plan. Consequently, the share of state�s resources to total plan outlay has increased from 15.7 percent during the First Plan to 43.1 percent during the Second Plan in Assam.

Let us now look into the achievements of the Second Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment and other sectoral heads.

In case of growth rate of State income the State income at constant prices rose by 10.7 percent during the Second plan period and its annual compound growth rate was 1.9 percent as against the corresponding rates of growth of 19.8percent and 3.5 percent respectively during the First Plan. Thus performance of the Second Plan of Assam in respect of growth rates of state income at constant prices was very poor than that of First Plan. Further, in comparison to total growth rate national income of 21.2 percent and its annual compound growth rate of 3.0 percent, the corresponding growth rates of state income were also very poor.

About the growth of income at current prices the picture is quite opposite. The increase in the total and annual (compound) growth rate in Assam during the Second Plan was remarkably sharp over the First Plan. The total growth rate increased from 7.7 percent and the annual growth rate from 1.5 percent to 3.7 percent. But it can be simply understood that these high growth rates were contributed mainly by the inflationary forces than by the real growth of output and services.

The State income of Assam as percent of national income gradually had a downward turn over the Second Plan period, thus, in 1955-56 the state income of Assam accounted for 2.55 percent at constant prices and 2.75 percent at current prices of national income but in 1960-61, these percentages came down to 2.33 and 2.57 respectively which reflects on doubt relatively a slower growth rate in the economy of Assam than the national economy.

The achievement of the Second Plan in respect of per capita income in Assam was not at all encouraging. If we look at the growth rates of per capita income at constant prices it can be observed that as against the total and annual growth rate of per capita income at constant prices it can be observed that as against the total and annual growth rate of 4.9 and 1.0 percent respectively during the First Plan period were only negative, i.e., -5.3 and -1.2 percent respectively.

Further, the per capita income of Assam was higher than that of India in 1950-51 and in 1955-56, the figure became similar to that of India, but since 1855-56, the per capita income of Assam was not only maintained a downward trend but also lagging behind that of India. In 1955-56, the per capita income was Rs. 268.0 in Assam and Rs. 267.8 in India where as the per capita income of Assam was the result of comparatively slower growth of state income than all India and higher growth rate of population in Assam than all-India growth rate. At current prices, the per capita income of Assam, although registered a positive growth rate during the Second Plan period, but was comparatively lower than that all India. For example, in 1955-56, the per capita income at current prices was Rs. 244.1 in Assam and Rs. 225 in India, but in 1960-61, the value become Rs. 311.4 in Assam and Rs. 255 in India, but in 1960-61, the value become Rs. 311.4 in Assam and Rs. 326.2 in India.

In the case of agriculture, the Second Plan set the target of additional foodgrains production at 3.83 lakh tonnes but the actual realisation of the target was of the order of 2.5 lakh tonnes. The production of other commercial crops was either declined or increased marginally. The response of agriculture sector to the developmental efforts was not upto the expectations mainly due to considerable weather fluctuations during the Second Plan period. The total agricultural production in Assam was increased by 3 percent only as against 20 percent increase in India during this period.

In the animal husbandry area, intensive cattle development work was taken up in the key village areas. At the end of 1960-61, the number of veterinary hospitals and dispensaries increased from 127 in 1955-56 to 155 at the end of 1960-61. The number of rural key village blocks and key village centres increased from 11 and 29 to 71 respectively. The intake capacity of the Assam veterinary college was increased from 68 to 93.

In the case of forest, about 7900 additional acres had been afforested, while areas under the various plantations increased by about 3,000 acres during the Second Plan period. About the development of fisheries, 6 additional seed farms and 10 seed collection centres were established and 1026 acres of additional water-areas were developed.

During the Second Plan the achievement in the Co-operative sector of the state was also satisfactory. During this plan, three thousand three hundred and sixty one (3361)service Co-operatives, 37 Co-operative unions, one cotton spinning mill, one Co-operative rice mill, 200 large sized Co-operatives, 111 primary marketing societies and 174 additional godown were established. Besides, the number of Co-operative farming societies increased from 105 to 157. During 1958-59, the Co-operative sugar mill went into production. The preliminary work of the Jute Mill had its start during this plan.

In the area of community development under the Second Plan, 57 new blocks were opened covering 9,112 villages and serving a population of 25.4 lakhs, covering an area of 18.482 square miles.

During the plan, the net area irrigated increased from 10.3 lakhs acres in 1955-56 to 16.9 lakh acres in 1960-61. Besides, 12 lakh acres of lands had also been protected from floods and about 13,000 acres of lands were reclaimed.

In respect of power, the Second Plan took some important steps for both increased generation and consumption of electricity. The per capita consumption of electricity was increased from 0.91 KWH at the end of 1950-51 to 5.63 KWH at the end of Second Plan. The other achievements during the Second Plan period were as follows :

(a) Additional installed capacity ...14,597 KW

(b) Additional H.T. line ... 175 miles

(c) Additional L.T. lines ... 180 miles

(d) Number of Town electrified ... 25

(e) Number of villages electrified ... 10

In July1957, the Umtru Hydro Electric Scheme, with an installed capacity of 8,400 K.W. was Commissioned. Besides, considering the acute power crisis in the state, two more new schemes- (a) Umium Hydro Electric Project (b) Naharkatiya gas turbine project were sanctioned by the Planning Commission during this plan period. Immediate steps were initiated for these projects and the Umium project was undertaken in 1960.

In spite of having huge development potential, the State�s industrial sector was very much backward mainly due to lack of communication and power facilities. The stabilisation of railway link line in 1956, the formation of Assam State Electricity Board and taking up of the Umium Hydro Electric Project and Naharkatiya gas turbine project created a new optimism for industrialisation in the State. The National Council of Applied Economic Research conducted a survey on the industrial potentialities of the State and an Industrial Conference was also held during the Second Plan which created an additional tempo of industrial development in Assam. Application for the establishment of small, medium and major industries began to come in. During this plan period licenses for major projects for rayon paper, carbon-black, synthetic rubber, polythelene were issued. Two industrial estates-one at Guwahati another at Dhekiajuli were established for the growth of small scale industries in the State during this Plan period.

During the Second Plan, the industrial projects which started its production were the sugar mill in the Co-operative sector, the spun silk mill, the bamboo mill in the public sector, two cycle factories, one commercial plywood factory, a few barbed wire-nail factories, some engineering workshops, several foundries, some treating and seasoning plants, a meter factory, many brick fields but the most important achievement was the establishment of Noonmati Refinery with crude pipe line during this plan period. Besides a coke carbonisation plant, a sulphurdioxide plant, a super-phosphate plant, two spinning mills, some power looms were also under erection during this Second Plan period.

During this plan period both the general and technical educational services were improved. On an average, the State has not only fulfilled the all India targets, in respect of enrolment of students in the various categories of school but has also exceeded them. The number of primary schools went up from about 13 hundred to 19 hundred, high schools from 376 to 631, multipurpose schools from 14 to 23, high and higher secondary schools with general science from 45 to 98. Besides, twenty two secondary schools also started functioning during this period.

In respect of technical education, besides increasing the intake capacity of the, Engineering College at Guwahati a second Engineering College was established at Jorhat. There were 6 training institutes for training of craftsmen in the State. The number of admission for the degree course increased from 60 at the end of the first Plan to 180 at end of the Second Plan. Further, training facilities for diploma course increased from 80 to 450 during the same period. The number of admission in the Dibrugarh Medical College had been increased to 100.

During the Second Plan period besides intensifying the measures initiated under the First Five Year Plan, additional schemes were started to extend health facilities to the rural areas as far as practicable. Total number of hospitals increased to 52. Total number of beds in the different hospitals increased from 2829 at the end of 1955-56 to 4003 at the end of 1960-61. The number of dispensaries increased from 311 to 568. These hospitals were provided with upto-date equipments and appliances. Particular emphasis was laid on the training of technical personnel like medical graduates, nurses, auxiliary nurses, midwives, pharmacists sanitations etc., 70 primary health units and 60 family planning centres were also established. The public Health Engineering organisation, also took up 16 projects for implementation in the different subdivisions under the programme which includes mainly the works, National programmes of malaria control, filaria control, leprosy control and small pox control etc. were also pushed through with vigour.

Besides, to solve problem of both in the rural and urban areas, various housing schemes, viz, Low Income Housing Scheme, Industrial Housing Scheme Slum clearance Scheme and building advances for State Government employees etc. were introduced during this plan period.

For the welfare of tribal and backward population the State Second Plan had an additional programme under the head " Welfare of Backward Classes" to make up the shortfalls between the levels of development of the tribal and Rs. 755.00 lakhs was incurred under this head.

Along with all the States of India the Third Five Year Plan in Assam had its scheduled start from 1st April, 1961. The Third Plan of India accorded greater importance to the achievement of a balanced regional development. It was emphasised that a state plan should be treated as essentially a regional plan which should consider the needs and requirements of the region concerned. But while formulating its objectives, the Third Five-Year Plan of Assam could not focus its specific regional needs, problems, past progress and lags in development. Rather, the Third Plan of Assam accepted the broad aims and objectives as set out in the National Third Five Year Plan. These are as follows :

1. to secure an increase in the national income of over 5 percent per annum, the pattern of investment being designed also to sustain the rate of growth during subsequent plan periods.

2. to achieve self-sufficiency in food-grains and increase agricultural production to meet the requirements of industry and exports ;

3. to expand basic industries like steel, chemical industries, fuel and power and establish machine building capacity, so that the requirements of further industrialisation can be met within a period of the years or so mainly from the country�s own resources ;

4. to utilise to the fullest possible extent the manpower resources of the country and to ensure a substantial expansion in employment opportunities ; and

5. to establish progressively greater equality of opportunity and to bring about reduction in disparities in income and wealth and a more even distribution of economic power.

While formulating the objectives of state�s third plan, within the limits of these above mentioned national objectives, proper consideration had also been given to the special problems of the state�s economy. Although it is not proper to apply flatly all the objectives of the national plan in a state plan, particularly in respect of attaining self-reliance and egalitarian distribution of income, but these national objectives were sometimes hammered unintentionally in the state plan. This generally creates confusion in the minds of both planners and general people.

Plan Provisions and Actual Expenditure of the Third Five Year Plan of Assam

Although primarily there was a plan provision of Rs. 120 crores for the State Third Plan but the actual expenditure actually reached upto Rs. 120 crores for the State Third Plan but the actual expenditure actually reached upto Rs. 132.4 crores which was 110.3 percent of the plan provision. The following table reveals (Table 9.5) the sectorwise distribution of plan provision and actual expenditure of the Third Five-Year plan in Assam.

Table No. 9.5

Source (1) Third Five Year Plan Assam, vol.1.P.28

(2) Third Plan (Assam), A review of progress PP. 5-10.

The above table depicts a clear picture of the plan provision and actual plan expenditure of the Third Five-Year Plan in Assam under different heads. The Third Plan of Assam was much bigger in size than that of the Second Plan. Plan expenditure in the Third Plan rose nearly 160 percent in comparison to the Second Plan expenditure. The actual amount of expenditure of the Third Plan in Assam was to the extent of Rs. 132.4 crores. Among the different heads of Plan expenditure the highest amount of expenditure was incurred on irrigation and power (Rs. 57.37 crores) which was 43.3 percent of the total plan expenditure. The other heads of expenditure according of their sizes were-Social services- 27.1 percent, Agriculture and allied subjects- 16.7 percent, Industry and mining 60 percent and Transport and communication-5.9. percent.

Further, different heads expenditure as percent of their plan provision varied between 73.7 percent to 164.90 percent. Although the total plan provision for the Third Plan in Assam was Rs. 120.0 crores but ultimately the actual amount of plan expenditure reached the level of Rs. 132.4 crores which was 112 percent of the total plan provision during this plan period.

The total outlay (final) of the third plan of Assam was Rs. 132.4 crores, the increase in the actual outlay in the Third Plan of Assam over the Second Plan was nearly 160 percent. The Third Plan outlay of Assam as percent of that of all India was only 1.54 percent but the Second Plan outlay of Assam constituted 1.2 percent of that of all-India. Although the third Plan outlay compares favourably with the Second Plan outlay but considering the relative backwardness of the State and development potential, this little higher ratio of Plan outlay was inadequate.

The pattern of allocation and priority followed under the Third Plan of Assam were little bit different from that of Third Plan of India and the previous two plans of Assam. Because of the relatively under-development nature of state economy, social services, which include education, health, labour welfare, social welfare, welfare of the backward classes and other miscellaneous services have so far contained a very high percentage of the allocations. In comparison the expenditure on social services under the first two plans, however, percentage of expenditure on these subjects during the Third Plan period was lower. Against 36 percent and 37.02 percent of total expenditure under the previous two plans, the expenditure on social service under the Third Plan was only 27.1 percent of the total expenditure.

Like the previous plan, Transport and Communication received the top most priority in the national Third Plan claiming 24.6 percent of the total plan outlay. But in Assam�s Third Plan, Irrigation and power received top most priority claiming 43.3 percent of the total plan outlay as against only 12.7 percent under the Second Plan. Of the total allocation for irrigation and power in the State, it is significant that as high as 79 percent was earmarked for power development, 14 percent for flood control and only 7 percent for irrigation.

The Third Plan of India increased the priority to agriculture as the plan allotted 13 percent of the total outlay for agriculture and allied subjects as against 11 percent under the Second Plan. But in the case of Assam, in spite of the dismal performance of the agriculture in the State during the Second Plan period, the outlay for agriculture as percent of total was lowered from 27 percent to 16.7 percent and the absolute amount of outlay for agriculture increased only by about Rs. 7 crores. Further, as the medium irrigation received only 7 percent allocation, thus agricultural as a whole remained relatively a neglected sector under the Third Plan of Assam in spite of its sufficient potentiality.

Industry and mining secured second place in order of priorities, in the national Third Plan claiming 22.9 percent of the total plan outlay whereas the same head secured fourth place in the State plan claiming 6.0 percent of the total plan outlay. Thus it reveals that industry and mining sector of the state plan received much less priority in comparison to that of national plan. In absolute terms, the industrial sector received Rs. 462 lakhs more in the Third Plan than in the Second Plan, among which large 3 and medium industries received Rs. 402 lakhs. Although there was increase in the allocation of resources in industry, but this sector still remained a neglected sector under the Third Plan of Assam as under the First and the Second Plan.

In respect of transport and communication, although the Third Plan of India accorded top priority allocation 24.6 percent 24.6 percent of the total plan outlay as against of 28 percent in its second plan but the same head secured fifth place claiming only 5.9 percent of the state Third Plan outlay as against 12 percent allocation in its second plan. In absolute amount the increase in outlay in this head from the Second Plan to the national Third Plan was Rs. 872 crores as against the increase of only Rs. 1.38 crores in the Third Plan of Assam. Thus considering the bottlenecks in the transport and communication system in the State, this outlay of Rs. 7.85 crores under this head was totally inadequate to provide a sound and realiable transport and communication system.

The following table reveals the financing of the Third Five Year Plan in Assam.

Financing of the Third Plan (Rs.in Crores)

Source- P&D Department, government of Assam.

Note- Figures in bracket show percentages out of total outlay.

The above table reveals that out of total outlay of Rs. 132.4 crores, the share of state�s resources was Rs. 23.5 crores which was 24.5 percent of the total outlay and the rest Rs. 99.9 crores came in the form of central assistance which was again 75.5 percent of the total plan outlay of the Third Five-Year Plan in Assam. Dependence of the State on the central assistance for financing its plan has increased from 56.9 percent during the Second Plan to 75.5 percent during the Third Plan. Consequently, the share of state�s resources to total play outlay declined from 43.1 percent during the Second Plan to 24.5 percent during the Third Plan in the State.

It would be better now to look into the achievements of the Third Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment and other sectoral heads.

During the Third Plan period, the State�s income at constant prices rose from Rs. 296.2 crores to Rs. 396.9 crores as against the target of Rs. 403.9 crores during this plan period, i.e., by 24.9 percent as against the stipulated growth of 34.8 percent. In Assam, as against the growth rates of income 19.8 percent and 10.7 percent during the First and the Second Plan respectively, total growth rate of state income was 24.9 percent during the Third Plan period. In respect of its annual compound growth rate also, it was 4.4 percent only during the First and Second Plan. This high rate of growth was made possible by the high performance in the construction and service sectors.

Further, the total and annual growth rates of state income at both constant and current prices were higher than that of all India during the Third Plan Period.

State income which was 21.5 percent of national income during 1950-51 gradually increased to 2.6 percent in 1955-56 and then declined to 2.3 percent in 1960-61 and finally reached to 2.5 percent in 1965-66.

The per capita income of Assam (at constant prices) rose from Rs. 253.5 percent in 1960-61 to Rs. 275.8 in 1965-66 as against the target of Rs. 308 giving a rate of growth of 7.4 percent over the five-year period as against the plan target of 19.6 percent. But the total and annual compound growth rates of per capita income in Assam at both constant and current prices were higher than those rates of all India. This relatively high growth rate of per capita income in Assam was due to some, adventitious factors like drought conditions causing more precipitous fall in output in all India.

In spite of its higher growth rates, the per capita income in Assam at both current and constant prices remained lower than that in India at the end of third Plan period. During this plan period, agricultural production rose by 3.5 percent as against what should have been 20 to 25 percent on the basis of individual crops targets. Foodgrains rose by 6 percent only as against the plan target of 24 percent while jute production actually declined. Due to this, the food situation become difficult throughout the plan period. The general price level rose by 34 percent, food prices by about 37 percent and prices of raw materials by 48 percent. Cost of living index of the working class jumped by 33 percent.

The number of job seekers in the live registrar of the employment exchanges increased by over 80 percent in the state. Regarding the target of employment generation, it was estimated that during the Third Plan period, 5.76 lakhs additional ful-time jobs had to be created. But the employment potential generated by the Third Plan was estimated at 3.86 lakhs although the total requirements of employment generation was 7.06 lakhs as against 0.4 lakh and 1.83 lakhs during the First and Second Plan period. Again, 36 percent of the potential created was estimated to be still in the agricultural sector. The Third Plan thus created was estimated to be still in the agricultural sector. The Third Plan thus created a backing of about 1.86 lakhs unemployed persons as against the backlog of 0.94 lakh of jobless persons during the Second Plan. Thus it can be said that the unemployment situation in Assam deteriorated during the Third Plan period on the basis of volume of backlog left behind the plan.

Regarding the progress of employment in the registered factories of Assam during the Third Plan period, the picture was very gloomy. The annual growth rate of employment during this period was only 1.2 percent as against 4.4 percent during the previous plan period.

During the Third Plan, the net capital formation was to the extent of Rs. 352.2 crores which was 20 percent of State income of Assam in comparison to that of 8.8 percent 4.9 percent during the Second and the Five Plan respectively.

During the Third Plan, agricultural production behaved eracically during the period of the Third Plan. Both the food non-food crops suffered from severe setback in the second year of the plan and also in 1965-66. On the whole, overall agricultrual production rose by only 7.2 percent over the plan period as against what should have been 20 to 25 percent on the basis of individual crops targets. During the Third Plan period, the yield of food-grains per hectare fluctuated rather widely between 817 kgs. in 1962-63 and 9.89 Kgs. in 1964-65. In none of the major crops the output target was realised. In foodgrains against the target of additional produced potential of 4.2 lakh tonnes. Only 3.897 lakh tonnes potential was created.

In respect of minor irrigation, the gross total area benefitted from the works by Agricultural Department was reported to be 453 thousand hectares and from the works of Flood control and irrigation Department 231 thousand hectares. The combined target of additional area benefited was 254 thousand hectares and against which the achievement was 264 thousand hectares. In respect of major and medium irrigation, on projects were taken up in Assam in the first two Five Year Plans. A provision of Rs. 228 lakhs was made in the Third Plan for four medium irrigation schemes, namely, the Jamuna, the Sukhla, the Longa and the Patra-Disa irrigation projects. Against this provision, the expenditure over the five year period was only Rs. 142.34 lakhs. Since none of the projects was completed in the Third Plan, the physical targets remained unrealised.

Programmes for forest development recorded satisfactory progress in the Third Plan as in the preceding two plans. In 1960-61, the area under reserved, protected and unclassed forests was 4.56 million hectares and in 1965-66, 4.57 million hectares. The Third Plan envisaged 600 hectares under regeneration programme. Against this, the achievement was 1895 hectares of creation and 604 hectares of maintenance at the end of the plan. In the scheme for constitution of forest reserves an area totalling 3,259 sq. Kms was undertaken. In forest communication, 146 kilometres of new roads and 3 bridges were constructed and a total of 1.290 kilometres of forest roads was also improved. The out turn of timber has increased from 176 thousand cubic metres in 1960-61 to 373 thousand cubic metres in 1965-66.

In respect of fisheries, the achievement during the Third Plan was not satisfactory. On the physical side, 106 persons were trained and 71 fish farm associations were organised and assisted 23.5 million fish seeds was producted as against the plan target of 30 million seeds. As a result of the programmes a total of 179.6 tonnes of fish was produced as against the target of 1526 tonnes.Total production of fish in the State at the end of the Plan was estimated to be 18,000 tonnes as against the estimated requirements of 48,000 tonnes.

During the Third Plan, the achievement of the Co-operative sector was satisfactory. The programme of the Co-operative Movement was re-oriented on the lines of the recommendations of the Rural Credit Survey Committee. In the Third Plan greater emphasis was laid on credit. The objective was to bring down the number of societies by reorganisation. Iiquidation and integration that only strong and sound units would remain. Accordingly, the number of societies came down from 8,894 in 1960 6761 to 7,683 in 1965-66. Although, total membership was increased from 511 thousand to 592 thousand.

At the end of the Third Plan, there were 1 State Co-operative Bank, 9 central banks, 1 central land mortgage bank, 4088 agricultural credit socieities, 320 non-agricultural credit societies and 16 primary land mortgage banks. There were also Apex Marketing Society and 204 central and primary marketing societies, 2 cotton ginning socieites, 1 sugar mill, 1 Jute milling society 23 milk unions and socieities, 272 farming societies, 8 wholesale consumers stores and 461 primary stores. In other fields, there were 1221 weaver�s Co-operatives, 203 fishery Co-operatives, 2 housing societies, 5 live stock societies, 25 non-credit agricultural societies and 69 on-credit non-agricultural societies.

The Co-operative farming programme was under implementation since 1961-62. Under the plan, 155 societies (pilot project and non-pilot project) were taken up and assisted the scheme for accelerating development of consumers Co-operative stores was started from 1962-63. At the end of the plan, 8 wholeasale stores and 461 primary stores were functioning.

In the case of community development starting of the remaining 68 blocks was commpleted by the middle of the Third Plan and the entire rural area of the State was covered by 162 blocks. During this Plan period, Rs. 810.36 lakhs was spent on various socio-economic projects against the plan provision of Rs. 835 lakhs.

In the case of power, the Umium Hydel Project Namrup Thermal Project with a total installed capacity of 105 MW were commissioned while the other power projects included in the plan were in different processes of implementation. This has resulted in increasing the installed generating capacity from 20 MW in 1960-61 both in the public and private sectores, 160.3 MW by 1965. Generation has increased from 33 million KWh to 70 million KWh. In per capita terms, generation has gone up from about 3 KWh to more than 6 KWh. These achievements have carved out a place for Assam in the power map of India. In respect of rural electrification, 96 towns and village were electrified as against the plan target of 179 electrified villages.

In communications, the length of State Roads and National Highways has increased by 34 percent.

During this plan period, remarkable achievements were made in the large and medium industries sector of Assam. The Central Government continued the works on its two projects in Assam, namely, the Noonmati Refinery and Namrup Fertiliser Project. The refinery was completed and went into production in January 1962, while the fertiliser was in progress at the end of the plan. In the private sector, four major units, that is, the two cotton and spinning mills at Chandra Pura and at Charduar, the Calcined Petro-coke plant and the Mixed fertiliser plant at Guwahati were also commissioned during 1963. Another fruit preservation plant at Nagaon was also sent up by the private sector. The private sector also took up the Hard Boards plant at Guwahati in which the State Government associated itself by participating in its share capital. The State Government on their part competed the Spun Silk Mills and the meter manufacturing projects. Besides the Cherra Cement Factory and the Natural Gas Distribution Projects were under progress and allowed to spillover into the Fourth Plan.

Further, for the promotion of industrial growth in the State the State Government took some important measures during this plan period. To encourage private entrepreneurs in setting up industries, scheme for developing industrial areas were introduced during this plan period. The Assam Major Industrial Development Corporation Ltd. (later on changed to Assam Industrial Development Corporation) was also formed with an authorised capital of Rs. 2 crores for the growth of major industries in the State.

Further, to promote the growth of small industries the Small Industrial Development Corporation was registered in 1961-62 with an authorised capital of Rs. 50 lakhs which resulted in the establishment of several small industries in the state, for example, a Jax board factory at Tinsukia in 1963-64, a match splint and vanneer factory at Bijni in Goalpara district.

Besides, the Third Plan of Assam continued the policy of encouraging the development of handicrafts, sericulture, handloom by means of subsidies in cash and kind, training and other incentives.

In the year 1966-67, economy of country along with the economy of Assam suffered from a series of set-back both in its agriculture, industry and foreign trade resulting in postponement of the Fourth Plan and adoption of ad-hoc annual plans for a period of three years (1966-67 to 1968-69).

Ad-hoc Plans did not contain the normal ambitious objectives of economic development but incorporated only some stop-gap measures since these plans were not normal and regular plans. Officially it was stated that " the annual Plans weredrawn up as ad-hoc plans due to delay in finalisation of the Fourth Five Year Plan. These Ad-hoc Annual Plans were designed mainly to maintain the level of development reached at the end of the Third Plan and also to prepare ground for implementation of bigger programmes in the Fourth Five Year Plan." Thus these Ad-hoc Plans wer concerned more with consolidation than expansion. Thus, efforts were made towards completion of the half completed schemes brought over from the Third Plan instead of taking up new schemes of development during these plans.

The three year period (1966-69) of the ad-hoc Plans short though it was, full of sharp contrasts in the economy of country and of Assam as well. The first two years (1966-68) were among the most difficult time which the economy has had to pass while the third year (1968-69) witnessed a remarkable recovery and proved to the turning point for the economy of the country as well as the State.

For the year 1966-67, the outlay initially approved by the Planning Commission was Rs. 26.45 crores as against the State Government proposal of Rs. 34 crores. With this schemes meant for development of Hill areas under a number of heads were also identified. The total provision for 1966-67 thus comes finally to Rs. 29.85 crores. But the total Plan expenditure during the year amounted to Rs. 26.47 crores. Rs. 21.58 crores under the General Plan and Rs. 4.89 crores under the Hill Plan.

For 1967-68, the Planning Commission approved an outlay of Rs. 30 crores-Rs. 23 crores in the General Plan and Rs. 7 crores in the Hill Plan as against the State�s draft proposal for Rs. 39 crores. The expenditure under the State Plan during this year amounted to Rs. 32.12 crores- Rs.25.04 crores in the General Plan and Rs. 7.08 crores in the Hill Plan.

For the year 1968-69, the outlay approved by the Planning Commission was Rs. 29.40 crores-Rs. 22.40 crores in the General Plan and Rs. 7 crores in the Hill plan. But the total plan expenditure during the year was Rs. 27.79 crores-Rs. 21.07 crores in the General Plan and Rs. 6.72 crores in the Hill Plan.

Thus taking these three years together, the plan programme proposed by the State Government was Rs. 115.27 crores, the outlay approved by the Planning Commission was Rs. 90.25 crores and the amount spent Rs. 86.39 crores. The following table reveals the sector-wise distribution of plan provision and actual expenditure of the Ad-hoc plans in Assam.

Table No. 9.7

(Rs. in crores)

The above table reveals a clear picture of the plan provision and actual plan expenditure of the Ad-hoc plans in Assam under different heads. Among the different heads of plan expenditure, the highest amount of expenditure was incurred on Irrigation and power (Rs. 31.39 crores) which was 36.3 percent of total plan expenditure. The other heads of expenditure according to their sizes were hill areas programmes Rs.18.70 crores (21.7 percent). Social services Rs. 11.82 crores (13.7 percent). Industry and mining Rs. 5.28 crores (6.2 percent) and Transport and Communication 4.05 crores (4.7 percent).

Further, different heads of plan expenditure as percent of their plan provision varied between 77.9 percent to 108.1 percent. Although expenditure on most of the heads were below the provision but only in the case of irrigation which was 108.1 percent. Finally, the total expenditure of the Ad-hoc plan was below the provision, which was 95.7 percent of the plan provision. The shortfall of expenditure in relation to provision was rather significant in land reforms, Agriculture and allied subjects, Mineral Development, large, medium and small industry, Roads and Bridges, Town planning, Planning and Evaluation and other social services. As to the causes of shortfall, it appears non-sanction, delayed sanction and non-recruitment of staff were among the cases.

Assam�s plan outlay as in percentage of all India�s plan expenditure was further declined from 1.5 percent in the Third Plan to only 1.3 percent during these Ad-hoc plans.

About the relative priorities to the sector, it is found that the Ad-hoc plans of Assam followed the same pattern of priorities adopted in its Third Plan exceppting the inclusion of a new head-"Hill Areas Programmes" which accounted for as high as 21.9 percent of the total plan expenditure. Thus excluding this item, top most priority was given to irrigation and power on which 31.39 percent for all India. This was followed by agriculture and community development (14.65 percent) and then followed by social services (11.82 percent). Further, industry and mining and transport and communication were the two neglected sectors on which less priorities were paid which as much as 5.28 percent and 4.05 percent respectively of the total plan expenditure during these Ad-hoc plans.

The following table reveals the financing of the Ad-hoc plans in Assam.

Table No. 9.8

Note:- Figures in bracket show percentages out of total outlay.

The table given shows that out of total outlay of Rs. 87.73 crores, the share of state�s resources was Rs. 3.79 crores which was only 4.33 percent of the total outlay and the rest Rs. 83.94 crores came in the form of central assistance which was again 95.67 percent of the total outlay of these Ad-hoc plans in Assam. State�s dependence on the central assistance for financing its plan has increased from 56.9 percent during the Second Plan to 75.5 percent during the Third Plan and then to 83.94 percent during Ad-hoc plans. Consequently, the share of state�s resources to total plan outlay declined from 43.1 percent during the Second Plan to 24.5 percent during the Third Plan and then only to 4.33 percent during these Ad-hoc plans. This shows a gradual increase in the dependence on the Centre in financing the plans.

The three years period (1966-69) of the Ad-hoc plans, short though it was, full of sharp contrasts in the economy of the country and of Assam as well. The first two years (1966-68) were among the most diffcult the Indian economy has had to pass while the third year (1968-69) witnessed a remarkable recovery and also proved as the turning point for the country�s as well as States economy.

So, far about the general achievements of Ad-hoc plans over the state�s economy are concerned, it would be nice to look into its achievements in terms of growth rates of state income, employment and other sectoral heads.

During the period 1965-66 to 1968-69, the state income of Assam at constant prices increased from Rs. 369.9 crores to Rs. 419.6 crores and thus maintained a growth rate of 4.3 percent in comparison to 13.6 and 4.6 percent respectively in case of the national income of India. But at current prices, the State income of Assam increased from Rs. 560.9 crores in 1965-66 to Rs. 810.4 crores in 1968-69 and thus registered much higher total and annual (compound) growth rates of 44.5 and 13.0 percent respectively in Assam as compared with 39.3 and 11.7 percent in India. But this annual compound growth rate of state income of 4.3 percent (at constant prices) during these Ad-hoc plans was almost the same as 4.4 percent during the Second and Third Plan.

The per capita income of Assam (at constant prices) increased from Rs. 275.8 in 1965-66 to Rs. 287.9 in 1968-69 i.e., at the rate of 4.4 percent as against 6.3 percent in case of India during the period of Ad-hoc plans. Again the per capita income at current prices increased from Rs. 418.2 in 1965-66 to Rs. 556.1 in 1968-69 i.e., at the rate of 33.0 percent as against 30.9 percent for India during this plan period.

As the Third Plan of Assam left behind a backlog of unemployed persons over 3 lakhs and thus with the growth of population in the state the Ad-hoc plans were faced with a huge problems of providing jobs for 6.75 lakhs of persons. During this period, the employment in the registered factories declined from 82,038 in 1967 to 79,429 in 1969 and maximum fall was noticed in case of tea factories. As per employment exchange statistics, there was a deterioration in unemployment problem of the state during this period as the number of registered job seekers increased from 57,433 in 1967 to 66,049 in 1969. Further there was disguised rural unemployment to the extent of 566 thousand persons in Assam during 1968-69.

In agriculture, most of the crops failed during 1966-67. During 1967-68, there was recovery in the production of 21.89 lakh tonnes during 1968-69. The production of Jute also recovered to 10.12 lakh bales during 1967-68 but again crashed to 7.25 lakh bales during 1968-69. The area covered by improved seeds including HYV increased from 129 thousand hectares in 1967-68 to 187 thousand hectares.

In minor irrigation, the target in 1966-67 was exceeded both by Agriculture and Flood Control and Irrigation Department while in 1967-68 both failed to realise the target. In 1968-69, the target was reached by Flood Control and Irrigation Department . In medium irrigation, the Jamuna Irrigation project was completed while the sukhla and investigation schemes were continued. The Patra-Disa Irrigation Project was completed and 2400 hectares have been covered till 1968-69 under hill areas programmes.

In the case of forests, both the physical and financial targets were fulfilled and the progress in such schemes as plantation communication, fast growing species and forest resources survey was almost entirely satisfactory during these Ad-hoc plans period.

In Fisheries, the target of spawn collection was exceeded while the target of fish production was not reached. In training 20 persons were trained at Joysagar during these plan.

In respect of co-operation, greater attention was given to consolidation and for the improvement of operational efficiency of the societies at village an additional levels through reorganisation. Under the hill areas programmes, 3 more sub-area co-operative marketing societies have been set up in Khasi and Jainta hills and registered with 80 affiliated service Co-operatives. Under the community development programme, top priority has been given to agriculture. Distribution of tractors and powers pumps has been undertaken for the purpose of reclamation and irrigation during Ad-hoc plans.

In respect of power, the umium stage (II) project was nearing completion and an additional 2.8 M.W. set was installed at Umtrew power house. The Guwahati Thermal Station, and the Garo Hills Thermal Project and the 290 KV Guwahati, Nagaon line were in the peak of construction. Extension work of Naharkatiya Thermal Station was also started. Though none of these projects was completed in 1968-69, the generating capacity already installed was increasingly utilised. Generation of electricity increased from 70 million Km. in 1965 to 143 million KWH in 1967 and to 237 million KWH in 1967 and to 237 million KWH in 1968-69. The 132 KV line from Badarpur to Churaibari was completed, 379 villages were electrified and 54 pump sets energised. The major portion of Kopili investigation was completed and the investigation of the Umium Khri, Lower Umium and Kydem-Kulai (Umtrew) was continued during the Ad-hoc plans.

In respect of industry, the first phase of Cherra Cement Project was completed and has gone into production. The gas distribution project was also completed. Some lands were brought for industrial areas but development was slow till 1968-69.

In cottage industry, the schemes for quality making and control, service working and control, service workshops, training centres, Small Industrial Development Corporation and marketing Corporation were continued. 220 parties were given loan during these plan period and 58 parties were given power subsidy. The Guwahati and Nalbari Industrial Estates were finally competed in 1966-67 while estates at Nowgong, Tinsukia, Jorhat, Sibsagar were in progress till 1968-69.

In the case of construction of roads, the targets of road length were generally achieved but during 1968-69, there was substantial shortfall in respect of unsurfaced roads. During these three years 84 kms. (target 515 kms.) of unsurfaced roads were constructed. Under the hill area programmes, the length of surfaced road were constructed. Under the hill programmes, the length of surfaced road increased by 15 Kms. and that of unsurfaced roads increased by 407 Kms. during these Ad-hoc plans.

Further, in the areas like health, water supply, housing, town planning and welfare of backward classes, the Ad-hoc Plans achieved the targets to the limited extent.

The State Government of Assam submitted to the Planning Commission the Draft Fourth Five Year Plan of Assam with a total outlay of Rs. 394.82 crores made up of Rs. 314.89 crores for General Areas and Rs. 79.93 crores for Hill Areas. Against the above proposal, the Planning Commission agreed to the outlay of Rs. 225.50 crores consisting of Rs. 160.50 crores for the General Areas and Rs.65.00 crores for the Hill Areas.

But on 21st January 1972, the full state of Meghalaya and Union Territory of Mizoram came into existence. With the formation of Meghalaya, the outlay of the Fourth Plan of Assam was pruned to Rs. 223.75 crores made up of Rs. 191.75 crores for the General Areas and Rs. 32.00 crores for the two Hill Districts of Assam including the Union Territory of Mizoram. Further pruning became necessary when it was found that the State Government would not be in a position to raise in full their share of resources.

The Fourth Plan period witnessed serious national concern when Bangladesh was being liberated in 1971. Again in 1972 and 1973, serious floods caused extensive damage to crops, cattle, houses etc. and the losses were Rs. 24.62 crores in 1972 and 16.75 crores in 1973. During the Fourth Plan, the State also experienced upward spiral in prices and inflation continued. All these factors brought about straints and stresses in implementation of the plan and affected the growth of the State�s economy.

The objectives of the Fourth Plan in Assam were formulated considering both the national objectives of Fourth Plan, level of economy of Assam and the various problems of growth peculiar to the state. Following are the main objectives of the Fourth Plan in Assam.

(1) to achieve a growth rate of 5 percent per annum in the agricultural sector, achieve self-sufficiency in foodgrains and to raise the production on industrial raw materials ;

(2) to develop extensively medium and small industries so as to enlarge the supplies of essential consumer goods and also to proide a firm base for industrialisation of the state in the near future ;

(3) to develop internal communication of the state with emphasis on village and hill road ;

(4) to reduce regional disparities within the state ;

(5) to provide adequate employment opportunities to the new entrants to the labour force and ensure fuller utilisation of manpower.

Besides, these, importance was given on such aims as completion of all industrial and power projects started, power development, adequate flood control measures, control of population growth, provision of minimum amenities like drinking water, medical facilities, primary education etc.

Plans Provision and Plan Expenditure of the Fourth Five Year Plan of Assam

As advised by the Planning commission to prepare a plan on the basis of visible resources, total outlay of the Fourth Plan stood reduced to Rs. 206.00 crores including 32.00 crores for the Hill areas of Assam and the Union Territory of Mizoram. Although, initially these was a plan provision of Rs. 206.00 crores for the Fourth Plan of Assam but the actual expenditure reached upto Rs. 198.39 crores which was 96.3 percent of the plan provision. The following table reveals the sector-wise distribution of plan provision and actual expenditure of the Fourth Five Year in Assam.

Table No. 9.9

Source :Fourth Year Plan of Assam, 1969-74.

A review of progress (Volume-I) P-III.

The above table reveals that the actual amount of expenditure of the Fourth Plan of Assam was Rs. 198.39 crores. The Fourth Plan of Assam was bigger in size than that of the Third Plan. Plan expenditure in the Fourth Plan increased nearly by 5.00 percent in comparison to the Third Plan expenditure of the state. Among the different heads of plan expenditure the highest amount of expenditure was incurred on Irrigation and power (Rs. 71.16 crores) which was 35.87 percent of the total plan expenditure. The other heads of expenditure according to their sizes were-social services-18.99 percent, Agriculture and allied programmes 18.33 percent, Transport and communication-13.10 percent, Industry and mining 8.53 percent, Co-operation and community development 3.87 percent.

Besides, plan expenditure under different heads as percent of their plan provision varied between 85.1 percent to 107.6 percent. In spite of total plan provision of Rs. 206.0 crores, total amount of expenditure was Rs. 198.39 crores during the Fourth Five Year Plan in the State. Thus, the total plan expenditure under 96.3 percent of total plan provision during this period. Total expenditure under Irrigation and power and Co-operation and Community Development have exceeded the plan provision by 7.6 percent and 1.8 percent respectively. On the other hand, expenditures under the remaining heads were below the plan provision during the Fourth Plan period in the State.

Actual outlay of the Fourth Plan of Assam was Rs. 198.39 crores. There was 50 percent rise in the outlay of the Fourth plan compared to that of the Third Plan. This was remarkably smaller in comparison to the previous plan. The Fourth Plan outlay of Assam as percent to that of all India was only 1.25 percent while the Third Plan outlay of the State constituted 1.54 percent of the all India plan outlay. Further, when the population ratio of Assam to the national population was 2.7 percent (according to 1971 census) then the ratio of state�s Fourth Plan outlay of 1.25 percent in comparison to that the national plan outlay compared very badly in this respect.

The pattern of allocation and priority followed under the Fourth Plan of Assam were more or less similar to that of previous plans of the State whereas it was little bit different than that of national Fourth Plan. Like the previous plan Irrigation and Power received the top most priority in this plan which accounted 36 percent of the total outlay. However, out of the total outlay for this sector, 58 percent of the outlay was meant for power, 33 percent for flood control and only 9 percent for irrigation. Thus, the importance of irrigation was again ignored in the Fourth Plan. The national Fourth Plan also gave top priority to Irrigation and Power.

Social services accounting for 19 percent of the outlay which come second in the list of priority in the Fourth Plan of the state. Thus, the share of the social services sector in the total plan outlay is declining from 37.02 percent during the Second Plan to 27.1 percent in the Third Plan and then to 19 percent during the Fourth Plan. In the national Fourth Plan, social services also accounted for 10 percent of the total plan outlay.

Agriculture and allied programmes accounted for 18.38 percent of the total outlay of the Fourth Plan as against 16.7 percent during the Third Plan. Thus, in the allocation of Fourth Plan outlay in Assam agriculture received third position in the list of priority whereas it received lowest priority in the national plan.

Industries and mining sector, like the previous plans, was a neglected sector in Assam�s Fourth Plan on which 8.5 percent of the outlay was alloted to it. But in the national Fourth Plan, Industries and mining sector received second priority which constituted about 20 percent of the total outlay.

Transport and communication received the fourth priority and claimed 13.10 percent of the total Fourth Plan outlay of Assam whereas the same sector received third priority in the national Fourth Plan claiming 19.5 percent of the total outlay.

Thus we find that there was marked difference in the pattern of priorities followed in the Fourth Plan of Assam and all India.

Table No. 9.10

Note : Figures in bracket show percentages out of total outlay.

The table given above shows that out of the total outlay of Rs. 207.05 crores, the share of state�s resources was only Rs. 33.80 crores.Which was 16.33 percent of the total Plan outlay and the rest of Rs. 173.25 crores came in the form of the Fourth Plan in Assam. In financing the Plan the state�s dependence on the central assistance has increased from 56.9 percent during the second Plan to 75.5 percent during the Fourth Plan. Naturally, the share of state�s resources to total Plan outlay declined from 43.1 percent during the Second Plan to 24.5 percent during the Third Plan then to 16.33 percent during the Fourth Plan in the state. Thus, Assam had to depend much on central assistance in financing its plan as state own resources were meagre. This shows a gradual increase in the dependence on the centre in financing her plans.

Let us now look into the achievements of the Fourth Plan on the economy of Assam in terms of growth rates of state income per capita income employment and other sectoral heads.

The state income at constant prices, increased from Rs. 419.6 in 1968-69 to Rs. 45.1.1 crores in 1973-74, registering a total growth rate of 7.5 percent during the Fourth Plan period which was lowest of all the previous plan. During the Fourth Plan, the annual compound growth rate of the state income of Assam was only 1.4 percent as against 3.5 percent, 1.9 percent, 4.4 percent and 4.3 percent during the First, the Second, the Third and the Annual plan period respectively. Further, both the total growth rate and the annual compound growth rate of the state income were much lower than those of the National Plan during this plan period.

The state income at current prices, also increased from Rs. 810.4 crores in 1968-69 to Rs. 1009.9 crores in 1973-74. Total growth rates of state income during this plan period was 24.6 percent as against 73.1 percent of the growth rate of national income in India.

The per capita income of Assam at constant prices, declined from Rs. 287.9 in 1968-69 to Rs. 286.4 in 1973-74 registering a negative total growth rate of (-) 2.3 percent as against the growth rate 5.2 percent in the national per capita income of India during this period. The annual compound growth rate of per capita income of the State was (-) 0.46 percent for all India. But the per capita income at current prices, increased from Rs. 556.1 in 1968-69 to Rs. 641.2 in 1973-74 and thus registered a total growth rate of 15.3 percent as against the growth rate of 53.5 percent for national per capita income of India. At the end of Fourth Plan period, the gap between the per capita income (at current prices) of Assam and all-India was as high as Rs. 210.6. This shows that the state plan failed to achieve a high rate of economic growth which would raise the level of per capita income of Assam to the national level.

Although generation of employment on a large scale was one of the principal objectives of the Fourth Plan of Assam but the plan could not do much in reducing the severity of the problem of unemployment and under-employment in the State. The employment situation was difficult year after year. Employment situation in the registered factories improved only a little during this plan period. The "average number of workers employed daily in these factories increased from 75.7 thousand in 1970 to 78.3 thousand in 1974". The average annual number of persons seeking jobs through the employment exchanges in the State during the period 1970-74 was 91,430. But the annual average number of placements affected was only 6415 which was only 7 percent of the total job seekers. This reveals that much is to be done to solve the aggravating unemployment problem in Assam. Besides, there was sufficient disguised unemployment in the agriculture sector in the State. Total number of surplus farm workers in Assam was 764 thousand in 1973-74.

During the Fourth Plan period, production of foodgrains rose from 18.26 lakh tonnes to 21.71 lakh tonnes against the target of 25 lakh tonnes. But the production did not rise steadily. The increase in the production of food-grains against the target were (a) lack of adequate irrigation support, (b) inadequate agricultural credit and (c) lack of adequate extension support. Production target of Jute was nearly achieved by an increase in areas. Jute production reached a high level of 11.36 lakh bales in 1973-74. Production of sugarcane and oil seeds had exceeded the target. Production of tea rose from 2.08 lakh tonnes in 1969-70 to 2.52 lakh tonnes in 1973-74. By the end of the Fourth Plan period, the yield rates of the crops were not satisfactory. These were below the all India average yield rates. The average yield rate of rice in this State was 1010 Kgs. per hectare against the all-India average of 1151 Kgs. per hectare in the year 1973-74. i.e., by the end of the Fourth Plan.

Industrial production in the State recorded a continuously rising trend since 1971, the annual rate of growth being about 4 percent. The index of industrial production in Assam gradually rose from 13.57 (Base 1970-100) in 1971 to 115.08 in 1973. Works on three industrial areas at Tezpur, Managadia, and Golaghat were completed during this plan period. Construction works of the industrial projects like Assam Petrochemical Project at Namrup, Cachar Sugar Mills, Caustic Soda Chlorine Plan at Jogighopa, NPK Granulated fertiliser factory at Narangi, Rice Bran Oil Mills at Rowta, M/S Ashok Paper Mlls at Jogighopa and Assam Gas Company Ltd. were either completed or under nearing completion.

For the development of small scale and cottage industries in the state, industrial estates, growth centres and service workshops were set up during the Fourth Plan period. The industrial estate at Sibsagar, started during the Fourth Plan. The new industrial estates at Jorhat and Nagaon were set up during the Fourth Plan. As many as 75 units had been set up in the eight estates providing employment to about 1500 persons and produced goods and services worth Rs. 2.50 crores.

In the case of forest, adequate attention was given to economic plantation to meet the growing demand of forest based industry. Again the target for creation of 10,272 hectares an area of 10,300.6 hectares were careated. An areas of 4404 hectares of planation was completed.

In respect of power, there was substantial progress during the Fourth Plan period. At the beginning of the Fourth Five Year Plan, there was an installed capacity of 153 MW with the corresponding per capita consumption of 14.8 units. The objectives of the Fourth Plan was to increase the power generation to 246 M.W. Against this estimated level of generation, the achievement was 202.95 MW increasing the per capita consumption to 20.45 units by the end of the Fourth Plan period. Thus, the power generation in Assam (including Meghalaya) rose from 413.2 million K.W.H. in 1971 to 539.9 million K.W.H. in 1974. During the Fourth Plan, the work was carried out on the following generation schemes :

(a) Guwahati Thermal Station- 1X30 MW

(b) Umium Hydro-electric Project-stage II 2x9 MW+1x2.8 M.W.

(c) Namrup Thermal Power Station Extension 1x30 MW and shifting of 1x12.5 MW gas Turbine from Guwahati to Namrup.

(d) Garo-Hills Thermal Project- 2x2.5 MW

(e) Kydemkullai Hydro-electric Project-2x30 MW.

The Irrigation Potential created during the Fourth Plan Period was 118.90 thousand hectares in respect of major irrigation and 5 thousand hectares in respect of major and medium irrigation.

In communication, the road length under P.W.D. stood at 19280 K.M. in 1974 as against 17030 K.M. in 1971. Achievements in respect of roads and bridges during the Fourth Plan consists of (a) improvement of low standard P.W.D. road which includes gravelling to the extent of 402 K.M. and metalling and black topping-210 K.M. (b) construction of 12 major bridges, (c) construction of 950 K.M., of new roads and construction of 60 K.M. of municipal roads.

Further, the progress in education, health and other welfare programmes during the Fourth Plan period substantially contributed to the expansion of facilities of social services, the weaker sections of the population like scheduled castes, Scheduled tribes and other backward classes were taken care of special programmes during this plan period. All these achievements have strengthened the base so as to sustain greater developmental activities in the subsequent plans to follows.

The Fifth Five Year Plan in Assam accepted the basic objectives of the national Fifth Plan as prepared by the Planning Commission and approved by the National Development Council. Among these, the most important objectives were : removal of poverty and attainment needs for the people. The plan also envisaged the importance of the creation of large employment opportunities and on the provision of basic minimum needs for the people. The plan envisaged a growth rate of 5.5 percent per annum and also laid emphasis upon the objectives of improving the conditions, of backward classes and removing regional imbalances.

Besides, in the perspective of the state�s requirements, some more specific objectives were formulated for the Fifth Five Year Plan of Assam. Considering the large gap between the per capita income of Assam and India it was aimed at making substantial progress towards catching up with all-India per capita income during the Fifth Plan period.

It was envisaged during this plan towards removal of imbalances in essential spheres, like power, roads, education and health and in the programme of basic minimum needs.

The plan also aimed to build infrastructure consisting of power, rail/road and inland water communications, irrigation, a network of banks for provision of overall credit and adequate strengthening, toning-up and orientation of the administrative set up.

It was felt that self-reliance in the matter of food-production and basic consumer goods must be attained during this plan period through diversification of agriculture and by setting up consumer goods industries.

The Fifth Plan of Assam decided to have conscious effort for fuller utilisation of natural resources of the state for production of hydel and thermal power, production of coal and establishment of coal-based industries, strengthening of forestry and forest-based industries.

With the objective of maintaining stability in the economy, the Fifth Plan of Assam envisaged on the development of flood control and irrigation system to save the economy from the grip of floods and droughts.

Thus, for the first time in the State, the plan objectives of the Fifth Plan of Assam were finalised considering the needs and problems of the State.

Total outlay of the Fifth Five Year Plan of Assam was finalised to Rs. 551.20 crores consting of Rs. 454.20 crores for general areas, Rs. 23.00 crores for Hill areas and Rs. 73.00 crores for the supplementary plans for backward classed. Against this plan provision of Rs. 551.20 crores, total actual expenditure during this Fifth Plan was only Rs. 277.97 crores which was only 50.4 percent of the plan provision. It is necessary to mention here that the Fifth Plan was terminated one year before its regular term. The following table shows the figures of plan outlay, sector-wise distribution of outlay and ratio of priorities under the Fifth Five Year Plan of Assam.

Table No. 9.10

Note : Figures in brackets indicate percentages of the total.

Source : 1. Fifth Five Plan (Draft). Vol. 1 govenment of Assam PP. 46-48.

2. Basic statistics relation to the Indian Economy 1950-51 to 1974-75, Government of India, P.127.

It is quite noteworthy that there was tremendous interest in the Fifth Plan outlay of both Assam and All-India over the Fourth Plan. In case of Assam, the rise was 178 percent as against 136 percent in case of All-India. Further, Assam�s Fifth Plan putlay as percent of that All-India was only 1.5 percent although the state possess 2.8 percent of total population of the country.

The priority pattern of the Fifth Five Year Plan of Assam was more or less similar to that of Fourth Plan. Among the different heads of plan outlay. Irrigation and power once again received the top most priority which accounted for nearly 33 percent of the total allocation. Again 84 percent of the total outlay for this sector was alloted to power development keeping the rest 6 percent only for the development of irrigation potential but the national Fifth Plan gave second priority to this sector and the expenditure of this sector was 24 percent of the total outlay.

Social services received the second priority in the Fifth Plan of Assam which claimed 22 percent of the total outlay whereas the national plan gave third priority to this sector claming 20.6 percent of the total plan outlay.

Agriculture and community development was given third priority in the Fifth Plan of the state accounting for nearly 21 percent of total outlay as against only 12.7 percent in all India.

Industry and mining was again neglected in the Fifth Plan of Assam as only 12.70 percent of the total outlay was allocated for this sector. Again, only 15 percent of the total outlay of this sector was allocated to village and small industries keeping the remaining 85 percent for the large industries in the State. But in the national Fifth Plan, industry and mining received the topmost priority accounting 24 percent of the total plany outlay.

Transport and communication received lowest priority in the Fifth Plan of Assam like earlier plans accounting for only 10 percent of the total outlay as against the allocation of 19 percent of the total outlay in the national Fifth Plan.

As the Fifth Five Year Plan was terminated one year before its regular term, so the achievements of this plan were assessed with shorter periodicity. Let us now look into the achievements of Fifth Plan in terms of growth rates of state income, per capita income, employment and other sectoral heads.

The state income at constant prices (1970-71) increased from 851.5 crores in 1973-74 to Rs. 1030.9 crores (P) in 1977-78 showing a total growth rate of 21.07 percent during the Fifth Plan period as against the total growth rate of 7.5 percent during the Fourth Plan period. The Fifth Plan of Assam fixed the target of achieving an annual growth rate of 5.5 percent in the state income and at the end of the Plan it was found that the target was more than fulfilled.

The state income at current prices, also increased from Rs. 1013.7 crores in 1973-74 to Rs. 1651.3 crores 1977-78 showing a total growth rate of 62.9 percent as against the total growth of 24.6 percent during the Fourth Plan period. Thus, the growth rates of state income both at constant and current prices were really satisfactory.

The per capita income at constant (1970-71) prices, increased from Rs. 540.7 in 1973-74 to Rs. 581.6 (P) in 1977-78 registering a total growth rate of 7.5 percent during the Fifth Plan period. Again, the per capita income at current prices increased from 643.6 in 1973-74 to Rs. 931.6 in 1977-78 showing a total growth rate of 44.6 percent during the Fifth Plan period as against the growth rate of 15.3 percent during the Fourth Plan period. At the end of Fifth Plan period, the gap between the per capita income at current prices of Assam and all-India was as high as Rs. 232.6 whereas the same gap at constant prices was Rs. 109.6. Thus, it reflects that the rare of economic growth achieved in the state plan could not keep pace with that of national plan.

Let us now look into the achievement of the Fifth Plan in respect of employment generation as removal of unemployment was one of its major objectives. It was estimated that an addition of 8.30 lakhs would be included in the working force of the state during the Fifth Plan. Employment in the private sector establishments in Assam increased from 459.36 thousand persons in 1974 to 496 thousand persons in 1978 displaying an increase of 7.9 percent. The average number of workers employed daily in the registered factories also increased from 77.7 thousand in 1973 to 84 thousand in 1978. Total number of employees working in the public sector in Assam also increased from 263.38 in March, 1974 to 309 thousand in March 1978 showing an increase of 17.3 percent in the employment of this sector. The unemployment situation in Assam continued to be critical during this plan period. The number of applicants on the live Register of employment exchanges in Assam which was 1,21, 539 in 1973 rose to 287.2 thousand in 1978. Further, the number of registerants in the employment exchanges also increased from 105 thousand in 1973 to 142 thousand in 1978. The annual average number of placements effected was only 7002 which was nearly 6 percent of total job seekers. It is revealed from the information made available by the employment exchanges that the number of educated job seekers in the live Register increased from 44,371 in 1973 to 1,19,369 thereby registering an increase of 169 percent over 1973. Besides, disguised unemployment in the rural sector of Assam had also been increasing year by year as the agricultural output/income per agricultural worker declined from 564 Kgs. and Rs. 449 in 1973-74 to 513 and Rs. 439 in 1976-77 respectively. It was also estimated that the number of surplus workers increased from 764 thousand in 1973-74 to 1215 thousand in 1976-77.

During the Fifth Plan Period, target for bringing total area under the production of foograins was 1924 thousand hectares against which 2203 thousand of area was brought under this scheme. Thus the target was over-fulfilled.

The Fifth Plan set the target of bringing 114 thousand hectares of new area under minor irrigation of which but at the end of 1977-78, 91.65 hectares of new area was brought under the minor irrigation. Although total potential under minor irrigation was 274.89 thousand hectares but the Fifth Plan set the target of total utilisation of the extent of 145 thousand hectares of which 120 thousand hectares potential was utilised at the end of Fifth Plan period. In respect of major and medium irrigation the Fifth Plan set the target of bringing 65.75 thousand hectares of new area was brought under the scheme at the end of plan period.

Further, against the target of bringing 25 thousand hectares of area under forests in Assam, the achievement under the Fifth Plan was only to the extent of 17.30 thousand hectares.

Under the Fifth Plan, the achievement in respect of power was satisfactory. The Fifth Plan has fulfilled the target of raising, installed capacity of power to the extent of 141.5 MW. Against the target of 2780 MW of electricity generated, the achievement was 2740 MW during the Fifth Plan period. Under rural electrification scheme, the target of the Fifth Plan was to electrify 1975 villages of which only 660 villages were electrified during this plan period.

In the case of construction of roads under the Fifth Plan 1592 Km of total road length was constructed against the target of 1871 Km., of which 47 Km. was surfaced and the rest 1545 Km.was unsurfaced.

During the Fifth Plan Period, 1239 new small scale industrial units were established against the target of 2 thousand units. The Fifth Plan set the target of increasing the number of Industrial Estates/Areas to 6 numbers but at the end of the Plan it was found that only 3 Industrial Estates/Areas were functioning. Total production of handloom industry during this plan period was 45.48 m. metres against the target of 55.00 m. metres. Again, total production of raw silk under sericulture industry was 21.20 thousand Kgs. during this plan period against the target of 24 kgs.

Thus,from the above facts it reveals that the achievements of the Fifth Plan under its various heads were more or less satisfactory.

In 1977-78, the Fifth Plan was terminated by the Janata Government and a draft Sixth Plan (1978-83) was prepared which ultimately could not take the final shape. In August 1980, a draft of the new Sixth Plan (198--85) was prepared by the newly constituted Planning Commission which was approved by the National Development Council on February 14, 1981.

The Sixth Five Year Plan in Assam more or less accepted the basic objectives of the national Sixth Plan as prepared by the Planning Commission and as approved by the National Development Council, these are as follows :

(i) A significant step-up in the rate of growth of the economy by promoting efficiency in the use of resources and improved productivity ;

(ii) Strengthening the impulses of modernisation for the achievement of economic and technological self- reliance ;

(iii) a progressive reduction in the incidence of poverty and unemployment ;

(iv) a speedy development of indigenous sources of energy with proper emphasis on conservation and efficiency in energy use.

(v) improving the quality of life of the people in general with special reference to the economically and socially handicapped section through a minimum needs programme ;

(vi) strengthening the re-distributive basis of public policies and services in favour of the poor and thus contributing to a reduction in inequalities of income and wealth ;

(vii) promoting policies for controlling the growth of population through voluntary acceptance of the small family form ;

(viii) bringing about harmony between the long-term and the short-term goals of development by promoting the protection and improvement of ecological and environmental assets ; and

(ix) promoting the active involvement of all sections of the people in the process of development through appropriate education, communication and institutional stategies.

While formulating the objectives of State�s Sixth Plan, within the limits of these above mentioned national objectives, proper consideration had also been given to the special problems of the economy of the State.

The main strategy of the Sixth Plan in Assam was to strengthen the infrastructure for both agriculture and industry which was similar to the national plan. This strategy was adopted for creating necessary conditions for an accelerated growth in investment, output and export. Creating increased opportunities for employment, particularly in the rural areas unorganised sector and to meet the minimum needs of the people for improving living conditions of the masses were some of the major goals finalised for the Sixth Plan in the state. Securing active involvment of the people for the formulation of various schemes of development at the local level alongwith speedy and effective implementation of these projects were the other strategies finalised for the Sixth Plan in State which were similar to that of national Sixth Plan.

Plan Provision and Plan expenditure of the Sixth Five Year Plan of Assam

Planning commission finalised the total outlay of the Sixth Five Year Plan to Rs. 1115.00 crores including Rs. 80.00 crores for the Hill areas. Although, initially there was a plan provision of Rs. 111.50 crores but the actual expenditure of the plan exceeded the plan provision and reached upto Rs. 1282.60 crores which was 115.03 percent of the plan provision. The following table reveals the sector-wise distribution of plan provision and actual expenditure of the Sixth Five Year Plan in Assam.

Table No. 9.11

(Assam) (Rs in crore)

Source : Statement showing Agreed outlay and Expenditure during Sixth Plan

(1980-85_ period (Assam)-A report prepared by P&D Department

(Govt. of Assam).

The table given above shows that the actual amount of total expenditure of the Sixth Plan in Assam was 1282.60 crores. The size of the Sixth Plan was more than double than that of the Fifth Plan. Plan expenditure in the Sixth Plan increased nearly by 132.5 percent in comparison to the total expenditure of the Fifth Plan.

One very striking feature of the Sixth Plan was that in most of the sectoral heads expenditures exceeded the plan provision excepting rural development and miacellanous heads where expenditure were 99.38 percent 85.6 percent respectively of the plan provisions. Plan expenditures under different heads as percent of their plan provisions varied between 85.6 percent to 320.04 percent. Total expenditures under respective heads as percent of the plan provisions were mainly 117.01 percent for agriculture,100.80 percent for Co-operation, 123.49 percent for power, 102.94 percent for industry and mining 104.72 percent for transport and communication, 320.04 percent for scientific services and research and 121.31 percent for social services. Thus, the total expenditure under agriculture, irrigation and flood control, power, industry and minerals, transport and communic ations, scientific services and research and social services and research and social services had exceeded the plan provisions by 17.01 percent, 6.30 percent 23.49 percent 2.94 percent, 4.72 percent, 220.04 percent and 21.31 percent respectively.

Total outlay (actual) of the Sixth Plan of Assam was Rs. 1282.60 crores. There was 132.5 percent rise in the outlay of the Sixth Plan over the outlay of Fifth Plan. This was remarkably low compared to the previous plan�s increase in the outlay by 178 percent. The state plan outlay as in percentage of national plan outlay during the Sixth Plan in Assam was only 1.31 percent as against 1.5 percent, 1.25 percent and 1.54 percent during the Fifth, Fourth and Third Plan respectively. This again compared very badly in respect of population as the State possess 2.8 percent of total population of the country.

The priority pattern followed in the Sixth Five Year Plan in Assam was although similar to the previous plan but some changes were made in some other respect too. Among all the heads of plan outlay, power alone received the topmost priority claiming 35.69 percent of the total plan allocations during this plan period. The national Sixth Plan also gave top priority to power but the expenditure of this sector was 19.8 percent of the total outlay.

Social services again received the second priority in the Sixth Plan of Assam which claimed 19.46 percent of the total outlay but the national plan gave third priority to this head which allocated 14.4 percent of plan outlay.

Irrigation and Flood control was given the third priority in the Sixth Plan of the State which accounted nearly 13.45 percent of total outlay as against 12.5 percent in case of all India.

Agriculture and allied services received fourth priority as only 11.17 percent of total plan outlay was allocated in this head. But in the national plan 5.8 percent of the total outlay was allocated in this head.

Transport and communication was the next sector on which 8.24 percent of the total outlay was allocated during the Sixth Plan in Assam, whereas in the national plan 15.9 percent of the total outlay was allocated in this sector.

Rural development was the next sector on which 4.69 percent of the total outlay was allocated in it and in the national plan 5.5 percent of the outlay was allocated in it.

Co-operation and Scientific services and research were in the other two sectors on which lowest priority was given in the Sixth Plan of Assam.

Let us now look into the achievements of the Sixth Plan on the economy of Assam in terms of growth rates of state income, per capita income, employment and other sectoral heads.

The state income at constant prices, increased from Rs. 982.3 crores in 1979-80 to Rs. 1107.2 crores in 1981-82, registering a growth rate of only 12.7 percent during the first two years of the Sixth Plan. Again the state income at current prices, increased from Rs. 2022.9 crores to Rs. 2798.4 the first two years of the plan period.

The per capita income of Assam at constant prices, increased from Rs. 516.4 in 1979-80 to Rs. 546.0 in 1981-82 registering a growth rate of 5.7 percent. But the per capita income at current prices, increased from Rs. 1063.4 in 1979-80 to Rs. 1380.0 in 1981-82 registering a growth rate of 29.8 percent during the first two years of the plan.

Generation of employment was one of the major objectives of the Sixth Plan. The total employment in the organised sector (i.e., under public and private sectors together) increased from 834.7 thousand in March, 1980 to 861.9 thousand in March, 1983 displaying an increase of 3.2 percent. The average number of workers employed duly in registered factories increased from 87.7 thousand in 1980 to 90.7 thousand in 1981. The unemployment situation in Assam continued to be critical during the first three years of the Sixth Plan. The number of applicants on the Live Register of employment exchanges in Assam rose from 347.5 thousand in 1980 to 403.1 thousand in 1982. The annual average number of placements effected was only 6542 during the first three years of the plan which was only 1.6 percent of total number of applicants. The total number of educated job seekers as per the live of the employment exchanges, incresed from 1.45 lakhs in 1980 to 1.76 lakhs in 1982. Educated jobseekers thus constituted nearly 44 percent of the total jobseekers on live register in 1982 compared with about 40 percent in 1981 and about 42 percent in 1980.

In the various other sectoral heads like agricultural rural development power development , irrigation and flood control, transport and communication etc. necessary informations about their physical achievements were not yet available but in most of these sectors, amount of expenditures incurred exceeded the allocation made during the Sixth Plan in Assam. This is no doubt a good indication as the fund alloted to various sectors are fully utilised during this plan period.

The draft Seventh Five Year Plan, which was prepared in 1948 under the leadership of then Prime Minister, Late, Smt. Indira Gandhi, put much emphasis on development, equity and social Justice through the achievement of selfreliance, efficiency and increased production. The draft Seventh Plan which was approved by the Planning Commission on 17th September, 1986, thus laid much importance on generation of employment and eradication of poverty. Thus, the Seventh Plan is mainly devoted to carry on ceaseless works on food, work and production. The Seventh Five Year Plan of Assam also followed the same line as shows by the national plan.

The Seventh Five Year Plan in Assam accepted the basic objectives of the national Seventh Plan as prepared by the Planning Commission and approved by the National Development Council. These are as follows:

(i) Achievement of Self-sufficiency in the production of foograins by raising the rate of growth of production in the agriculture sector ;

(ii) Generation of productive employment for maximum utilisation of human resources and solving the problem of unemployment through the development of agriculture and industry in such a fashion which can create employment potential for huge number of people ;

(iii) Improving the quality of life and standard of living of the people in general, with special reference to the economically and socially handicapped sections through a minimum needs programme :

(iv) a speedy development of power generation alongwith utilisation of existing generation capacity ;

(v) providing sufficient irrigation facilities in the State.

(vi) promoting the active involvement of all sections of the people in the process of development through appropriate education, communication and instutional strategies ;

(vii) to alleviate poverty and to reduce social and economic disparities ;

(viii) to decentralise planning and to achieve full public participation in development works ;

(ix) to provide services like education, health, nutrition, sanitation and housing ;

(x) to accelerate the work of family planning ;

(xi) to reduce infrastructural bottlenecks and shortages and to improve capacity utilisation ;

(xii) to improve efficiency and modernisation in industry ;

(xiii) to integrate science and technology ;

(xiv) to conserve energy.

Although the above mentioned objectives are finalised for the Seventh Plan but generation of power providing more irrigation facilities and overall improvement in the agricultural sector will continue to be the main thrust in the Seventh Plan of Assam.

Thus, accelerated growth of agricultural production, creation of employment opportunities and to improve and increase productivity are the three major objectives of the Seventh Five Year Plan in Assam. So, the Seventh Plan aims at growth, equity social, self-reliance, improved effciency.

The Seventh Five Year Plan of Assam was discussed in the detail in December, 1984 in the Working Groups set up by the Planning Commission.The working groups recommended an outlay of Rs. 2464.60 crores for the Seventh Plan in Assam. Again the State Plan Division recommended an outlay of Rs. 1750 crores only for Seventh Plan, the state Government proposed an outlay of Rs. 3718.95 crores but ultimately the outlay of the Seventh Plan in Assam was finalised to Rs. 2100 crores. At the end of Seventh Plan the actual expenditures of the plan exceeded the proposed outlay and reached the level of Rs. 2489.57 crores.

In the approach paper of both the National and the State Seventh Five Year Plan it was estimated that the growth rate of the economy during the plan period will be little over 5 percent. Agriculture will grow at a rate of 4 percent : foodgrains will grow at 5 percent ; industry to grow at 7 percent. In respect of capital formation, savings will grow at a rate of 25 percent. It was further estimated that in order to secure an improvement upon the level of per capita income, the rate of growth shall have to be 1.8 percent per annum.

The allocation of outlay on different sectors and the pattern of priorities under the Seventh Five Year Plan of Assam is given below :

Table No. 9.12.

(Rs. in lakhs)

The above table reveals that the Seventh Plan of Assam was bigger in size than that of the Sixth Plan. Among the different heads of expenditure, highest amoung of outlay was allocated on power sector on which 23 percent of the total outlay was allocated. The second highest priority was given to irrigation and flood control on which 15.9 percent of the total outlay was allocated. The Seventh Plan of Assam gave third highest priority on Agriculture and allied services which claimed 14.6 percent of the total outlay. The other heads of expenditure according to their size were- water supply, housing and urban development-9.0 percent, Transport and Communication-8 percent and Rural Development-6.2 percent, Industry and minerals-5.0 percent. Thus, nearly 37 percent of the total outlay of the Seventh Plan was allocated on the sectors like agriculture, rural development co-operation, irrogation and flood control which would go a long way in eradicating poverty and reducing food deficit in our state. At the end of the Seventh Plan actual total expenditure stood at Rs. 2489.59 crores.

The Seventh Five Year Plan of Assam has set the targets for different sectors of the State. The following table shows the targets of some of the important sectors in Assam.

Table No. 9.13

From the above table we can see that the Seventh Plan of Assam had finalised the targets under different heads as-state per capita income will increase annually by 7 percent ; total production of foodgrains would increase by 4400 thousand tonnes ; Irrigation potential to be developed by 13 thousand hectares ; employment to be generated by N.R.E.P. would be extent of 180 lakh man days etc.

During the Seventh Plan the Government introduced the system of decentralised planning at the sub-divisional level by forming an sub-divisional Planning and Development Committee for preparing various development plans on Agriculture, minor irrigation, primary education, village roads, village industries etc.

Further, during the Seventh Plan, the Government of Assam introduced the 14 point Socio-Economic Programmes which were not included in the Minimum Needs Programme and the 20-Point Programmes of the Central Government adopted earlier. These 14-Point Programmes were related to the provision of employment generation for the youths, improving the methods of cultivation, modenisation and expansion of village industries, expansion of primary education and primary health centres, development and improvement of village roads and communication etc. Besides, the Seventh Plan of Assam also took some ambitious programmes for the establishment of a College of Agriculture, an Agricultural Engineering College, a College of Fishery, an Electronic Development corporation, some mini hydel projects and schemes like Char area development, backward area development etc. As per interim assessment, the growth rate of the economy during the Seventh Plan would be slightly more than 5 percent ; agricultural production would step up by 4 percent and that of foodgrains would increase by 5 percent.

Let us now look at the achievements of the Seventh Plan on the economy of Assam in terms of growth of state income, per capita income and other sectoral heads as per interim assessments.

During the Seventh Plan the state income at constant price (1980-81) increased from Rs. 3155.4 crores in 1984-85 to Rs. 3817.3 crores in 1989-90, registering a growth rate of 24.14 percent and the annual average growth rate of 4.82 percent. The state income at current prices has also increased from Rs. 4725.0 crores in 1984-85 to Rs. 7741.0 crores in 1989-90, registering a growth rate of 63.8 percent and the annual average growth rate of 12.7 percent during the Seventh Plan.

The per capita income of Assam at constant prices (1980-81) increased from Rs. 1457 in 1984-85 to Rs. 1576 in 1989-90 showing a total growth rate of 8.2 percent during the Seventh Plan. The per capita income of Assam at current prices also increased from Rs. 2182 in 1984-85 to Rs. 3196 in 1989-90 registering a total growth rate of 46.5 percent during the Seventh Plan. Thus, at the end of the year 1989-90, the gap between per capita income at current prices of Assam and all-India was as high as Rs. 1095 whereas the same gap at constant prices was Rs. 572 in 1989-90 as against the same gap of Rs. 356 in 1984-85.

During the Seventh Plan Rs. 2489.57 crores was spent as against the total outlay of Rs. 2100 crores under different heads. Total production of foodgrains has increased from 26.70 lakh tonnes in 1984-85 to 30.35 lakh tonnes in 1985-86 and then declined to 26.18 lakh tonnes in 1988-89 due to unprecedented drought and flood conditions. Production of oil-seeds has increased from 1.50 lakh tonnes in 1985-86 to 2.41 lakh tonnes in 1968 and then declined to 1.46 tonnes in 1989-90.

Under National Rural Employment Programme (N.R.E.P.) nearly 83 percent of the target was achieved dyring the first four years of the Seventh Plan.

In respect of irrigation potential, during the Seventh Plan 101.0 thousand hectares of area was irrigated and thus 47 percent of the target was achieved. Moreover, in March 1990, total amount of irrigated land in Assam was to the extent of 5.5 lakh hectares which was only 20.4 percent of the total cultivated area of the state.

In respect of drinking water supply in the problem villages 9110 villages were covered till in 1989-90 out of the total target of 64493 villages.

Under the rural electrification programme 9178 number of villages were electrified during the Seventh Plan (upto 1989-90 as against the total plan target of 9.663 villages). Thus, at the end of 1989-90, 20984 villages were electrified which was nearly 95 percent of the inhabited villages of the state.

In the case of construction of PWD roads under the Seventh Plan 3633 Kms. of rorad were constructed till 1989-90 as against the total plan target of 5457 Kms.

On the basis of available data, we can see that excepting removal of gap between the per capita income of Assam and all India, the other targets of the plan have been almost fulfilled.

Moreover, the long standing demand of Assam of getting a status of special category state in respect of granting Central assistance has been accepeted by the Central Government. Accordingly, Assam will get her Central assistance for plan by 10 percent as loan and 90 percent as grant instead of previous system of providing 30 percent as grant and 70 percent of English Plan in Assam and would go a long way for achieving a higher level of plan investment and attainment of higher rate of growth in the State�s economy.

Although the approach paper of the Eight Plan was approved earlier by three different Governments at the centre but due to political instability the Eight Plan could not commence from 1990-91. After the formation of a new Congress (I) Government at the centre, Prime Minister Mr. P.V. Narasimha Rao announced in the financial year 1992-93 taking the earlier two financial years (1990-91 and 1992-93) as Annual Plans. Thus, the revised time frame of the Eight Plan is from 1992-93 to 1996-97.

Accordingly in Assam two Annual Plans for 1990-91 and 1991-92 were finalised and the outlay to the extent of Rs. 1991-92 were finalised and the outlay to the extent of Rs. 675 crore and Rs.800 crores respectively were approved. But the actual expenditure of these two Annual Plans in Assam were estimated at Rs. 596.62 crores and Rs. 800 crores respectively. After that a new document of the Eighth Plan (1992-97) was prepared by the government of Assam with an outlay of Rs. 7913 crores and the the same was placed before the Planning Commission for its final approval.

During the formulation of the Eighth Plan, the state had to face a serious financial crisis and thus the Government introduced various fiscal and economic reforms at par with National economic policy.

The Eighth Five Year Plan in Assam accepted the basic objectives of the National Eighth Plan as prepared by the planning Commission and approved by the National Development Council along with some specific objectives of the state. These objectives are as follows :

(i) Generation of adequate employment opportunities to achieve near full employment by the turn of the century;

(ii) Reducing the gap between per capita State Domestic Product (SDP) of Assam and per capita net national product of the Country as a whole ;

(iii) Strengthening of infrastructure (energy, transport, communication etc.) in order to support of growth process on a sustainable basis ;

(iv) decentralisation of planning process as introduced in 1986 with greater emphasis on integrated local area planning,

(v) to reduce regional imbalance,

(vi) to achieve higher growth and diversification of agriculture for attaining self-sufficiency of foodgrains ;

(vii) expending irrigation, flood control and other measures for increasing agricultural production and productivity;

(viii) attaining higher level of rural development and creation of durable assets;

(ix) reducing the percentage of people living below the poverty line and increasing the income generation capacity of the rural sector ;

(x) developing value-addition activities in the secondary sector, more particularly in small scale and village industries.

(xi) develop power sector with special emphasis on generation and distribution of industrial and agricultural power and also on rural electrification ;

(xii) giving more emphasis on early completion of projects under construction and more efficient utilisation of existing facilities and production capacities ;

(xiii) development of human resources through expansion of education, in general universalisation of elementary education, eradication of illiteracy among people in the age group of 15 to 33 years, improvement of health and other social services ;

(xiv) provision of state drinking water and primary health care uncluding immunisation to all village and the entire population ;

(xv) adequate protection of forests environment and ecology and also to develop waste-land ;

(xvi) developing science and technology appropriate to local conditions.

The Eighth Five Year Plam of Assam is consisting of three sub-plans, i.e., (a) Hill areas development plan for two autonomous hill districts of Karbi Anglong and North Cachar Hills (b) Tribal sub plan for the scheduled tribes of plain areas of the state and (c) scheduled caste sub-plan for the development of scheduled caste population. The other two important component of the Plan include-development of riverine areas (Char Areas) and the development of border areas covering inter-state boundaries.

The State Government proposed an outlay of Rs. 791.330 crores for the Eighth Five Year Plan of Assam which was made up of two plan components, i.e., Rs. 7566.34 crores for the development of general areas and Rs. 346.96 croresfor development of hill areas. But on 21st April 1992, the Planning Commission finally approved the outlay of Rs. 4672 crores for the EighthPlan at 1991-92 prices and Rs. 960 crores for the Annual Plan of 1992-93, i.e., the for the first year of the Eighth Plan and also approved Rs. 1027 crores for 1993-94.

Plan Allocation and Priorities of the Eighth Plan in Assam.

The following table shows the allocation of outlay and the pattern of priorities under the Eighth Five Year Plan of Assam.

Table No. 9.8.14

Five Year Plan in Assam (Rs. in Crores)

The above table reveals that the approved total outlay of the Eighth Plan of Assam, i.e., Rs. 4672 crores in much bigger in size than that of the Seventh Plan. Among the different heads of provisional expenditure, highest amount of outlay was allocated on social services on which 35.536 percent of total outlay was allocated. The second priority was given to energy and power on which 24.56 percent of the total plan outlay was allocated. The Eighth Plan of Assam gave third priority on agriculture and allied services on which 11.04 percent on the total outlay was allocated. The other heads of expenditure as per their allocation include-irrigation and flood control-8.00 percent, industry and minerals- 6.70 percent transport and communication -6.30 percent, Rural Development- 4.04 percent and general economic services-1.68 percent. Thus, about 23 percent of the total provisional outlay of the Eighth Plan was allocated on sector like agriculture and allied services, rural development, irrigation and flood control which would go a long way for eradicating rural poverty and achieving self-sufficiency in the production of foodgrains.

The Eighth Plan of Assam also gave special priorities on the industrual and infrastructural development of the state. Moreover, as per the national priorities of the Plan, the Eighth Plan of Assam also attach priorities on employment generation population control, literacy, education health, drinking water and provision of adequate food. Provision of the basic elements which help development of human capital will remain the primary responsibility of the Government.

Let us now look at the achievements of the Eighth Plan on the economy of Assam in terms of growth of income, per capita income other sectoral heads as per interim assessments.

During the Eighth Plan, the state income at current prices has increased from Rs. 10632 crore in 1991-92 to Rs. 14538 crore in 1994-95, registering a growth rate of 36.7 percent and the annual average growth rate of 12.15 percent during the Eighth Plan. The state income at constant prices (1980-81) increased from Rs. 4284.5 crore in 1991-92 to Rs. 511.3 crore in 1993-94 registering a growth rate of 19.3 percent and the annual average growth rate of 9.6 percent during the first two years of Eighth Plan.

The per capita income of Assam at current prices increased from Rs. 4683 crore in 1991-92 to Rs. 5999 crore in 1994-95 (Q) registering a growth rate of 28.1 percent during the first three years of the Eighth Plan and an annual average growth rate of 9.34 percent. The per capita income in Assam at constant prices (1980-81) increased from Rs. 1887 crore in 1991-92 to Rs. 2157 in 1993-94 (Q) showing a total growth rate of 14.3 percent and the annual average growth rate of 7.15 percent over the first two years of the Eighth Plan. Thus at the end of 1995-96 the gap betwen per capita income at current prices of Assam and all India was as high as Rs. 2282.5 whereas the same gap at constant prices was Rs. 177 in 1993-94 as against the same gap of Rs. 288 in 1991-92.

Total production of foodgrains has increased from 33.80 lakh tonnes in 1991-92 to 35.36 lakh tonnes in 1993-94 and then declined to 34.90 lakh tonnes due to unprecedented draught and floor conditions.

During the first three years of the Eighth Plan the industrial production could not make much headway as the index number of industrial production has increased marginally from 193 in 1992 to only 204 in 1994, showing an increase of 11 percentage points during these three years.

Under the Intregrated Rural Development Programme (IRDP), the number of persons benefited was 38.483 in 1992-93 and 62.584 in 1994-95 and thus achieved 102.0 percent and 113.9 percent of target respectively.

Under the Jawahar Rozgar Yojana (JRY), total number of employment generated was 109.7 lakh mandays in 1992-93, 223.5 lakh mandays in 1993-94 and 260.9 lakh mandays in 1994-95 and nearly 107.8 percent of the target was achieved during the first three years of the Eighth Plan. In 1996-97. 189 lakh mandays of employment were generated under JRY.

In respect of irrigation potential created during the first three years of the Eighth Plan, total irrigation potential created has increased from 4.45 lakh hectares in 1991-92 to 4.77 lakh hectares in 1994-95 showing an increase of 0.32 lakh hectares during the first three years of the plan.

During the first two years of the Eighth Plan, 31 number of village were electrified. Thus at the end of 1993-94, 21,495 villages were electrified which was nearly 80.8 percent of the total 26.600 villages in the state.

Thus on the basis of available data it is observed that the achievement of the Eighth Plan was more or less satisfactory.

The National Development Council (NDC) in its meeting held on 16th January, 1997 unanimoustly approved the draft approach paper for the Ninth Five Year Plan (1997-2002) with a call for collective efforts to raise the maximum possible resources for implementing the plan. As there is no revision in the time frame of the plan thus the time frame of the Ninth Plan stands from 1992-93 to 1996-97.

The draft approach paper has identified the "growth with equity" as the main focus of the plan. The draft paper also observed that the Ninth Plan will emphasize strongly on the development of the small scale industry sector which contributes significantly to the gross domestic product, besides according a prominant place to agriculture. The "basic thrust" of the Ninth Plan would be on providing basic minimum services to the people and thereby double the provision for rural development in the Ninth Plan and enhanse capital investment in critical infrastructure areas.

Objectives:

The draft approach paper to the Ninth Plan has outlined some important objectives for the plan which includes : (a) accelerated economic growth with stable prices ; (b) strengthening efforts to build self reliance ; (c) attaining food and nutritional security for all ; (d) basic minimum services of safe drinking water ; (e) primary health, education and shelter to all in a time bound manner ; (f) containing population growth ; and (g) promoting panchayati institution, co-operative and self-help group.

The draft approach paper to the Ninth Plan also seeks to find out ways and means to operationalize the decentralization of the planning process keeping with the objective of co-operative federalism. Local Government institutions will be given more powers, authority and responsibilities alongwith ensuring transparency in decission making, accountability for execution and effective system of grivance redressel.

Priority to the Development of North-East:

The approach paper to the Ninth Plan (1997-2002) approved by the National Development Council has accorded a high priority for the economic, infrastructural and educational development of the north-eastern region. The approach paper observed that the Ninth Plan would focus attention on identifying gaps in these regions in terms of power, communication, roads, railways, education and agriculture so that efforts could be made to bridge the gaps through supportive measures to enable these regions to join the mainstream of economic development of the country. There would be closer interaction between the central agencies and the states of these region. The central agencies concerned,with the development of this region, would be suitably strengthened to be able to fulfil the tasks of accelerated development of each of the state in the region.

The approach paper observed that the development programmes of North-Eastern region would aim at creation of employment opportunities, provision of basic minimum services, promoting efforts towards land and water management and flood control. Communications, credit availability, industrialisation, tourism, exports, transport infrastructure and power would be accorded highest priority.

The Union Ministries has already instructed all the ministries of Central Government to allocate 10 percent of total allocation for the north eastern states from their budgetary outlay of various schemes. This is in addition to the Prime Minister�s announcement of Rs. 6,100 crore economic package for specific scheme for all the North-Eastern States.

The State Government proposed an outlay of Rs.17,271 crore for the Ninth Five Year Plan of Assam, which also included the requirement of the proposed project to set up a permanent capital at Dispur. But on 6th June, 1997, the Planning Commission worked out the resources for financing Assam ; Ninth Plan at Rs. 8,963.93 crore. Of the total amount, the major contribution will be in the shape of central assistance amounting to Rs. 7169.25 crore. There will also assistance for externally aided projects to the extent of Rs. 327.77 crore.

The State�s Ninth Plan size will be finalized by adding to the allotted amount outlay of Rs. 8.983.93 crore, the following elements :

(a) Additional fund for meeting the infrastructural deficiences as per recommendation of the High Level Committee for the North East (HLC) headed by S.P. Shukla of the Planning Commission in pursuance of ex-Priminister�s economic package for the North-east ;

(b) Funds for some centrally sponsored and central sector schemes being transferred to the states along with the resosurces ; and

(c) Flow from allocation of 10 percent of the total plan from each Central Ministry or department to the North-east.

The state�s annual plan outlay for 1997-98 has been fixed at Rs. 1500 crore by the Planning Commission which shows an increase 4.60 percent over the previous year.

The draft paper of the Ninth Plan of Assam emphasized the need for development in productive sectors like agriculture, irrigation, industry, handlooms, sericulture, co-operative, rural development, power, road and transport, which are at par with the main thrust of Ninth Plan formulated by the Planning Commission.

Decentralised planning is a kind of percolation of planning activities or process from the Centre State to sub-state level, i.e., district sub-division,block and village level. Since the incaption of First Plan, the importance of decentralised planning was emphasised in the planning process. In 1957, the Government appointed the Balwant Raj Mehta Team which recommended constitution elected statutory local bodies with its required resources, power and authority along with a decentralised administrative system operating under its control. Accordingly, the Panchayati Raj system was introduced in India.

Since then the process of decentralisation in the planning and development activities was continued. In 1969, the Planning Commission issued some guidelines on the introduction of district planning. Again in 1977, M.L. Dantwala Working Group recommended specific guidelines for the introduction of block-level planning. After that Ashok Mehta Committee has also submitted in report on Panchayati Raj in 1981. Moreover, the economic Advisory Council to the Prime Minister finally presented its Report on Decentralisation of Development Planning and its implementation in the States in 1983. Finally, in 1984, the Group on District Planning submitted its report and this was considered as the basis of proposals on decentralised planning under the Seventh Plan.

Accordingly, the Planning Commission of India introduced the decentralised Planning in the Country for the first time during the Seventh Plan.

During the Seventh Plan the Planning Commission of India introduced the decentralised planning for the first time. In Assam, the decentralised planning was introduced in 1st April, 1986. Although in other states of India, the decentralised planning was extended to district level but in Assam the same plan was decentralised upto sub-division activities at the sub divisional level, the Sub-divisional Planning and Development Council was formed in every Sub-division of the state with the public representative from different levels. This Council is preparing various development plans for agriculture, irrigation, elementary education, road building, social afforestation, fishery, industrialisation, Community development etc. of different sub-division of the state. The Council is presided over by a Cabinet minister. The Council is entrusted to submit the required estimates of development work difference departments and then prepared and implement sub-divisional plan as per the approved outlay. Decentralised planning is very much important in a country like India, where majority of our population live in rural areas. This type of plan raises the involvement of the people in implementing the plan. Moreover, decentralised planning is being prepared in the light of local problems and on the basis of local resource potential. Thus, under the present economic scenario, the decentralised planning, is considered as most important strategy in respect of planning for economic development.

Objectives :

The following are the three important objectives of decentralised planning :

1. Effective implementation of poverty eradication programme ;

2. Ensuring balanced regional development for meeting minimum needs for the people :

3. To ensure active public participation in the development process of different sectors.

Thus, the main objective of the decentralised planning is to attain balanced development throughout the country with active participation of the people and to eradicate poverty.

Thus, under the present system, the planning machinery was restructured upto grass-root level. Moreover, District Development Committee was also formed taking the Deputy Commissioner as its Chairman and all the heads of Development Department as its members. At the district level, implementation of all development schemes are being kept under the jurisdiction of Deputy Commissoner. Moreover, development Commissioners of different departments have also been entrusted to organise development work of different departments.

In the mean time, various schemes of Seventh Five Year Plan are implemented through Sub-divisional Planning and Development Councils in Assam. The Annual plans of 1990-91, 1991-92 are also implemented through these Councils. Moreover, the annual plans of the Eighth Plan are also implemented by these councils.

The draft approach paper to the Ninth Plan prepared by the Planning Commission seeks to find out ways and means to operationalize the decentralization of the planning process in keeping with the objectives of co-operative fedaralism. Local Government institutions will be given more powers, authority and responsibilities along with ensuring transparency in decision making, accountability for execution and effective system of grievance redressal.

In Assam, the sub-divisional planning and Development Councils are now being geared up for preparing the annuals plans of each sub-division under the Ninth Plan as per the recent fresh directives of the Central Government.

Report of the Task Force, constituted in 1987 for overall Economic Development of Assam

The Task Force Constituted by the State Government in May, 1987 to recommend measures for overall economic development of Assam (as envisaged in clause 7 of the Assam Accord) that are to be taken by the Central and State Government was presented to the Chief Minister of Assam on April 5, 1988. The Task Force has viewed with great concern that despite four decades of planning, a process of deceleration is clearly discernable in the State.

The per capita SDP has over the years been lagging behind the corresponding figures for the rest of the country. This has continuously widened the gap between Assam and the rest of the country. Similary, in respect of a number of key indicators of developmental infrastructure, such as availability of power, irrigation, roads and the like, Assam has lagged behind the rest of the country.

Major Constraints :

After identifying the major factors hampering the balanced economic development of the state, the Task Force has held that migration from neighhouring state has created an excessive pressure on land and thereby has resulted in overdependence on agriculture.

The report says that floods have been a constant stumbling block in the path of modernizing agriculture which has remained preponderently traditional . The Co-existence of traditional agriculture along side two modern and well-developed industries oil and tea has sharpened the dual character of the State�s economy. The excessive dependence by the State on the rest of the country for its requirements of consumer goods and intermediate and capital goods has given rise to a reverse flows of resources from Assam.

The factors that have played their roles in perpetuating economic backwardness in Assam are low capital formation, very weak communication links with the rest of the country, absence of entrepreneurship and inadequate infrastructural facilities.

The report notes that what should really be a matter of great concern is that infrastructural facilities that are very essential for economic development could not be provided over the past seven plans even to the level of all India standards, despite the fact that all these mainly fall within the jurisdiction of the State Government.

The Task Force is of the opinion that the State Government ought to be more positive and dynamic in the implementation of its policies and also in putting pressure on the Centre and NEC to act positivity in time to discharge their obligations to the State.

Infiltration :

The Task Force has recommended expenditious completion of border fencing and border road, gearing up of Assam Police to adopt a more dominant position closer to border, settlement of landless indigenous people near the border etc.

It was also felt by the Task Force that large-scale inter-state migration from the more advanced States would tend to restrict and curtail economic opportunities for the local; people. The report also suggests various measures to contain the high population growth within the State.

Communication :

For strengthening communication links in Assam, the Task Force recommended extension of broadguage railway line from Guwahati to Tinsukia and from Lanka in Nagaon to Silchar and establihment of all weather motorable roads to link wall Sub-Disivional towns.

The report has also recommended location of Vayudoot�s base of operation for North-East region in a Central place in Assam, establishment of telecom network and development of inland water transport network.

Agriculture :

The Task Force recognised the fact that transformation of agricultural scenario is of vital importance as agriculture is the backbone of state�s economy the flood control is extremely essential for inducing larger private investments in Agriculture. Thus, the Task Force opined that the Brahmputra Board should be directed to identify short and medium term measures that could be taken within Assam itself-schemes and that could mature within a reasonable time frame. This has been suggested in view of the uncertainties of the inter-state long term projects contemplated in the Master Plan prepared by the Board.

The report also called on the State Flood Control Department to play a more positive role like drawing up a Master Plan for controlling the tributaries of Brahmaputra. The emphasis should be on quick maturing schemes and the overall objective should be on the containment of floods rather than on ad-hoc measures that result in drawing away of resources year after year.

Irrigation :

The report of the Task Force states that for the transformation of agricultural scenario in Assam irrigation is an important factor. It observed that the major thrust of the Irrigation Department has been on flow and lift schemes which has neglected the ground water potential of the state.

Branding the thrust as wrong strategy, the Task Force felt that the Irrigation Department should immediately shift the thrust from flow and lift irrigation ground water exploitation which is cost and time effective. It also suggested that an enquiry by a competent team should be instituted to determine the wisdom of continiing the flow and lift irrigation schemes in view of the enormous time and cost over-runs.

Land Reforms :

The report of the Task Force stated that the land reform measures taken in the past have not yielded the desired result. But, if land is withdraw from the non-agriculturists and re-distributed amongst actual marginal farmers and landless agricultural labour, then only the economically vulnerable sector of the rural economy will be benefitted. The report also called for consolidation of holdings.

Farmers� Co-operative :

The report states that for the transformation of agriculture in Assam, multipurpose technology oriented farmers co-operative could be a potent weapon. These co-operatives are by far and away the most effective in fulflling the needs of small farmers, as very positively shown by the results obtained in Japan, Taiwan, Korea and Egypt. These multipurpose co-operatives would provide inputs, finances, marketing and know-how for their farmer members.

In view of annual floods and uncertaninty of Kharif crops, the Task Force has put emphasis on rabi crops. It further, suggested going in for crops like market garden produce, oil seeds, wheat etc. which do not need much water like paddy.

Forestry :

The report states that to determine the actual status of the forest cover, which is presently unknown, a survey of the entire state through the National Remote Sensing Agency be conducted. A comprehensive afforestation  policy should be formulated for, among other matters, identifying areas for afforestation and the spscies to be planted. The report also said that the concept of modern forest management should be introduced in place of traditional forest administration.

Industry :

The Task Force has recommended the establishment of a new industrial growth centre, "Udyog Nagar" in a central location in Assam with an area of 2,000 hectares with all the infrastructural facilities.

The Task Force has expressed serious concern about the manner in which national gas is being flared by the oil exploration companies, which are incidentally owned by Government of India. The report urged that such project based on national gas that have found to be feasible should be cleared immediately.

The setting up of the fourth refinery envisaged in the Assam Accord has been inordinately delayed. This refinery should be set up without further delay.

Power :

The reports states that the power situation in the State has been most unsatisfactory. Thus, the Task Force has concluded that Assam State Electricity Board needs to the re-organised into three separate organisations- one for generation of power another for diistribution and other for construction of power projects with the A.S.E.B. itself acting as an apex body for policy formulation and overall coordination.

Now if these package of policy measures recommended by the Task Force is implemented in letter and in spirit then the economic transformation of the State would come about easily, thereby creating, countless opportunities for self-employment among the people of the State.

The MLA�s Area Development Scheme was announced in Assam in March, 1994, which would enable the respective representative of 126 constituencies of the State to fulfil "locally felt" development needs.

The Planning Commission had already approved the scheme and the States Government had already earmarked Rs. 6.30 crores in 1994-95 for that purpose.

Assam is the only state in the region which was trying this new scheme on experimental basis in line with the Central scheme made for the members of parliament to develop to their respective constituencies.

The State Government directed Deputy Commissioners to help the members of legislative assembly to prepare their area development scheme to be implemented in every financial year 1994-95.

Under the scheme, each MLA would recommend to those respective Deputy Commissioners works to the tune of Rs. 5 lakh during each financial year to be under taken in a particular constituency.

The Department of Planning and Development, the modal body which would be overall incharge for implementation of the scheme at the state level has sent a set of guidelines to be followed while approving the development proposals, to all the Deputy Commissioners. It had also suggested the Deputy Commissioners to call for written suggestions from MLAs or hold meeting with all MLAs of the District concerned.

Works or projects suggested by MLAs and cleared by respective Deputy Commissioners would be implemented by different state government agencies such as public works, Department, Rural Development, Irrigation, Agricultion, health, Education, Water supply and Swerage Board and Housing corporation.

The Deputy Commissioner would be responsible for the co-ordination and overall supervision of the works under this scheme at the district level.

Even though MLA�s Area Development Schemes do not require to pass through the sub-divisional or district planning committees and be directly taken up with the Deputy Commissioner as MLA�s choice but these schemes should lead to �creation of durable assets� and meet on local needs.

The buildings specified a few works under the scheme.These includes construction of school buildings, small sports, and recreation halls, Community Centres, public health care buildings, small irrigation bandhs, approach roads, foot paths, path ways, foot bridges, sub sheds and residential schools in tribal areas.

The scheme also had provisions for creating public amenities like electricity, water supply, public toilets in growing township areas and many other local based plans.

However, the guidelines disallowed under this scheme works exceeding Rs. two lakhs requirements, purchase of investory, equipments or stocks of any kind.

The fund also cannot be utilised from acquisition of land or compensation, places of religious worship and memorials. The scheme also bars grants and loans and work, which do not fall within the scope of the district plans. The proposed funds also cannot be utilised for completion of incomplete schemes of the Government.

It is being felt that the way the scheme was planned would to some extent benefit the rural and common people of the state. These schemes would be fastest way to bring development work to the people through the peoples representatives. Under the general plan a bulk of funds was channelised for few districts and a small group of people was usurping the benefit of the state investment. But the MLA�s Area Development Scheme would supplement the local needs of the people.