3rd Five Year Plan
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Chapter 5:


the principal aims of the Third Five Year Plan have been set out in the preceding Chapter. If these aims are to be achieved, it is essential that a certain minimum development should take place in different sectors of the economy during the next five-year period. The physical targets of the Third Plan have been formulated keeping these minimum needs in view. A detailed list of these targets is given in Annexure I to this Chapter. It is estimated that national income should go up by about 30 per cent and per capita income by about 17 per cent over the next five years. A few selected targets are included in the Table below with the object of giving a synoptic view of the Pian :

Table 1 Selected targets

item unit 1960-61 1965-66

percentage increase in 1965-66 over

index number of agricultural production . 1949-50=100 135 176 30
foodgrains production million tons 76 100 32
nitrogenous fertilisers consumed 000 tons of N 230 1000 335
area irrigated net (total) million acres 70 90 29
cooperative movement :        
advances to farmers Rs. crores 200 530 165
index number of industrial production 1950-51=100 194 329 70
production of :        
steel ingots million tons 3.5 9"02 163
aliminium 000 tons 18.5 80" 332
machine tools (graded) value in Rs. croreg 5.5 30.0 445
sulphuric acid 000 tons 363 1500 313
petrolium product* million tons 5.7 9,9 70
cloth :        
mill made million yards 5127 "5800 13
handloom, powerloom and khadi million yards 2349 3500 49
total million yards 7476 9300 24
minerals :        
iron ore million tons 10.7 30.0 180
coal million tons 54.6 97.0 76
exports Rs. crores 645 850' 32
power : installed capacity million kW 5.7 12.7 123
railways : freight carried million tons 154 245 59
road transport :        
commercial vehicles on road 000 numbers 210 365 74
shippil g : tonnage lakh GRT 9.0 10.9 21
general eductaion :        
students in schools million numbers 43.5 63.9 47
technical education :        
engineering and technology—        
degree level intake 000 numbers 13.9 19.1 37
health :        
hospital beds 000 numbers 186 240 29
doctors practicing 000 numbers 70 81 16
consumption levels :        
food calories per capita per day 2100 2300 10
cloth yards per capita per annum 15,5 17.2 11


2. The increase in population, the growing expectations of the people and the urgent need for attaining the stage of self-sustained growth over the next two or three Plan periods make it essential that there should be every possible effort to achieve these targets during the next five years. In addition, certain measures must be taken during the Third Plan period itself in preparation for the Fourth Plan. The physical programmes included in the Third Plan have been formulated with both these objectives in view. The total cost of completing all these programmes exceeds Rs. 8000 crores for the public sector, and is estimated at Rs. 4100 crores* for the private sector.

3. It is important that programmes for industrial development, including power, transport, techn''cal education and scientific research, should proceed in a connected manner in accordance with an approved scheme of priorities so that. as the requisite foreign exchange and personnel become available, corresponding internal resources are also found and raoid progress is assured. In fields like agrcu^ure, small industries and social services, where there is scope for attracting a great deal of local community effort and public participation and where imported supplies are not a limiting factor, the effort has to be related to the maximum physical capacity for implementation and should not fall below the minimum needs of the country. In fact, as the productive prefects in the industrial and agricultural sectors are implemented and additional output becomes available, it should be possible to raise additional resources for expanding the scope of some of the protects which have large employment potential but do not require much foreign exchange outlay.

4. These considerations suggest that the phvsi'cal programmes to be accepted for implementation over the five vear period should not be altogether limited by the financial resources immediately in s^ht at the stage of drawing up the Plan, although the outlays have necessarily to be regulated with reference to the resources actually mobilised from year to year. Past experience has shown that if a Plan for a five-year period is prepared only in terms of the financial resources in s^ht at the time of the preparation of the Plan, the fullest use cannot be made of all the opportunities which present themselves in the course of the implementation of the Plan.


5. The estimate of financial resources has been placed for the present at Rs. 7500 crores. Recent studies, however, indicate that there are possib'lities of raising additional resources if certain measures are taken for mobilising the savings of the country. In fact, to the extent that the physical targets included in the Plan are achieved, the prospects of raising additional financial resources will correspondingly improve. As a result of the support which India's development p'ans are receiving from friendly countries and from the International Bank of Reconstruction and Development and other international agencies, there is reason to hope that the shortage of fore^ exchange may not be a major impediment in the realisation of the goals of the Third Plan. On the other hand, as the Plan proceeds, it may be found that some of the projects approved for implementation may not be completed within the Third Plan period, and a part of the investment may in fact be deferred to the early phase of the Fourth Plan. A cons-'derable proportion of the projects, especially in industry and mining, have relatively long gestation periods and frequently involve difficult technical problems. Delays in designing and setting up industrial plants or undertaking complementary development or in securing equipment and components may well extend the priod of completion of some of these projects bevond the Third Plan. Whatever the consequential adiust-menfs, special care would, however, be taken to ensure that projects which are essential for achieving the key targets included in the Third Plan are completed in time.

6. The following Table gives the distribution of the financial outlay of Rs. 7500 crores under major heads :

Table 2 Financial provisions
(Rs. crores)

  Second plan Third plan—financial provisions
head total expenditure percentage States Union Territories Centre total percentage
agriculture and community development 530 11 919 24 125 1068 14
maior and medium irrigation 420 9 630 2 18 650 9
power 445 10 880 23 109 1012 13
village and small industries 175 4 137 4 123 264 4
organised industry and minerals. 900 20 70 neg 1450 1520 20
transport and communications . 1300 28 226 35 1225 1486 20
social service and miscellaneous 830 18 863 87 350 1300 17
inventories. 200 200 3
total 4600 100 3725 @ 175 3600 7500 100

(@ This is subiect to the observation made in the following paragraph and paragraph 27 of Chapter VI.
* This excludes the estimated transfer of Rs. 200 crores from the public to the private sector.

Out of the total financial outlay of Rs. 7500 crores in the public sector, investment* is estimated at Rs. 6300 crores and current outlay,'"* representing expenditure on staff, subsidies, etc. at Rs. 1200 crores. These figures include only that part of the expenditure on development programmes of local bodies like municipalities panchayats, etc. as is financed by Central and State Governments as part of their Plan expenditure. They do not include the contributions which these local bodies make out of their own resources. Similarly they do not include the contributions in cash or in kind which are made by the local people in projects of a local character involving local participation. Expenditure on development services and institutions established upto the end of the Second Plan, estimated at about Rs. 3000 crores for the five year period, falls outside the Third Plan outlays shown in Table 2.

7. In the Table above, the financial provision for the States is shown as Rs. 3725 crores. As against this the total cost of the physical programmes included in State plans amounts to Rs. 3847 crores. The revenues of States have, however, recently shown marked improvement. It is considered that given the necessary additional taxation, States should find it possible to finance fully the physical programmes included in their plans. Thus the gap between physical programmes and financial resources such as it may be, relates mainly to the centre. In the programmes of the Central Government those dependent on external resources constitute a large proportion, for instance, industries, minerals. transport and communications- As foreign exchange becomes available, necessary steps will have to be taken to raise the requisite rupee resources.

8. As has been mentioned earlier, the Plan includes outlays not only by the public sector but also by the private sector. Investment by the private sector is estimated at Rs. 4100 crores. The break-up of the public and the private sector investment under major Plan heads is given below :

Table 3 Investment in Second and Third Plans
(Rs. crores)

head public Second private plan total percentage public Third plan private total percentage
agriculture and community                
development 210 625 835 12 660 800 1460 14
major and medium irrigation 420 * 420 6 650 * 650 6
power 445 40 485 7 1012 50 1062 10
village and small industries 90 175 265 4 150 275 425 4
organised industry and minerals . 870 675 1545 23 1520 1050 2570 25
transport an'i communications 1275 135 1410 21 1486 250 1736 17
social services and miscellaneous 340 950 1290 19 622 1075 1697 16
inventories 500 500 8 200 600 800 8
total 3650 3100{ 6750 100 6300 4100f 10400 100

9. The foreign exchange requirement for an investment of 10,400 crores is estimated to be over Rs. 2030 crores. The level of investment, public and private, is expected to rise from about Rs. 1600 crores in the last year of the Second Plan to about Rs. 2600 crores at the end of the Third. Corresponding figures for the public sector alone are Rs. 800 crores and Rs. 1700 crores.

10. It will be seen from Table 3 that the Third Plan provides for an increase of about 54 per cent in total investment-70 per cent in public sector investment and 32 per cent in private sector investment. The proportion of the public sector will be, however, higher to the extent that the public sector outlay is raised above the financial provision of Rs. 7500 crores, near to the physical Plan of over Rs. 8000 crores.


11. Out of the programmes included in the public sector of the Third Plan the plans of States account for Rs. 3847 crores and of Union Territories for Rs. 175 crores. The remaining programmes fall within the plans of the Central Ministries. Details have been given in Annexure II to this Chapter. Provisions in the States and at the Centre have been made on the principle that generally development schemes to be implemented by State Governments should form part of the State plans and only certain limited categories of schemes should be shown in the plans of Central Ministries as being 'sponsored' by the Central Government. In this way, an attempt has been made to broaden further the scope of the plans of States and facilitate the integrated working of their development programmes.

'"Investment is expenditure on the creation of physical assets (e.g. buildings, plant and equipment), including expenditure on personnel required for putting up these assets. The expression corresponds broadly to expenditure on capital accouni

**Current outlay corresponds broadly to expenditrure on revenue account on Plan schemes: it is expenditure othe' than that. classified as 'investment'.

•{•Included under agriculture and community development. ^Excludes transfers from public to private sector.

12. In determining the plan of each State consideration was given to its needs, problems, past progress and lags in development, likely contribution to the achievement of the majoi national targets, potential for growth and the contribution in resources which the State could make towards its development programmes. In assessing needs and problems, such factors as population, area, levels of income and expenditure, availability of certain services, e.g. roads, schools, hospitals, extent of commitments carried over from tne Second Plan, commitments on account of large projects or special programmes and the state of technical and administrative services available were taken into account. Care was also taken to see that States whose resources were unavoidably small did not have to limit development to a scale which was altogether insufficient, merely because of paucity of resources. At the same time States which were able to make a larger effort in mobilising then-own resources could undertake development on an appropriate scale. The break-up of Rs. 4022 crores, which is the total of all programmes included in the plans of States and Union Territories, together with comparable figures for the First and Second Plans is given Statewise in Annexure III to this Chapter. A detailed break-up by States and by heads of developments is given in Appendix B at the end of the Report.

13. The broad indications of the physical programmes and the financial provisions as indicated above give a measure of the overall effort and the relative emphasis on different sectors envisaged in the Plan. Within this general framework the Plan comprises a number of concrete programmes, of development, details of which have been given in the subsequent Chapters of this Report. A brief account of these programmes is, however, given in the following paragraphs.


14. Programmes for agriculture, irrigation and community development included in the Third Plan entail a total outlay of Rs. 1718 crores as compared to estimated expenditure of Rs. 950 crores in the S ->nd Plan. These programmes aim ft near; doubling the rate of growth of agr? -iural production over the next five years. PrftUction'-of foc;,|~ains is expected to rise by 30 -^er cent and of other crops by 31 per cent as sl own in the following table :

Table 4 Index number of agricultural production (1949-50=100)

group 1960-61 1965-66 percentage increase in 1965-66 over 1960-61
all crops 135 176 30
foodgrains 132 171 30
other crops 142 186 31

15. To achieve this high rate of growth, intensive efforts are to be made in several directions. First, a large programme of irrigation, comprising major, medium and minor irrigation schemes, is to be undertaken. This will extend irrigation to about 20 million acres, raising the net irrigated area to about 90 million acres. Scco.id, dry farming techniques are to be introduced on about 22 million acres and soil conservation measures over an area of about 11 million acres. Third, the consumption of fertilisers is to be stepped up—a fivefold increase being aimed at in nitrogenous fertilisers from 230,000 tons (in terms pt N) to one million tons, and a sixfold increase in phosphatic fertilisers from 70,000 tons (in terms of Ps Oa) to 400,000 tons. The area under green manures is to be increased from 11.8 million acres to 41 million acres. Plant protection measures are to be undertaken over an additional area of 50 million acres. Fourth, special efforts will be made to introduce modern technology in rural areas through a large-scale programme for improved agricultural implements and machines. A comprehensive programme for agricultural implements has been prepared which includes establishment-in every State of one centre for testing, designing, technical guidance and manufacturing implements of improved type; adequate arrangements for the supply of iron and steel to manufacturers; credit for supply, purchase and production of improved implements; and strengthening of agricultural engineering personnel in the States. Fifth, the community development programme will be extended to the entire rural area by October, 1963, thus bringing technical assistance and supplies within the reach of all the farmers in the country. All villages will be served by pancha-yats and cooperatives. Through the introduction of democratic institutions at the district and block levels, responsibility and initiative for development are being transferred to the people of each area. Membership in service cooperatives is expected to increase to about 37 millions, that is about two-thirds of all agricultural families. Considerable expansion of cooperative credit is aimed at, the targets being about Rs. 530 crores of short and medium-term advances and Rs. 150 crores (loans outstanding) of long-term credit. The number of cooperative marketing societies will be increased trom 1869 to 2470. Nearly 980 new storage godowns at mandi centres will be set up and 9200 smaller godowns will be established in the rural areas on a cooperative basis. Twenty five new co-operative sugar factories will be set up and greater attention will be paid to the establishment of cooperative processing units for rice, cotton, jute, groundnut, fruits, etc. There is also a programme for setting up 2200 primary consumers' stores and 50 wholesale stores on a cooperative basis. Efforts will be continued to popularise cooperative farming and 3200 cooperative farms will be organised as pilot experiments throughout the country. Sixth, selected districts wh'ch have particularly favourable irrigation facilities and assured rainfall will be put under an intensive agricultural development programme for stepping up agricultural production. To begin with, one such district has been selected in every State. This important new programme will bring to these areas a concentration of technical help, fertilisers, improved credit and other supplies to reach all farmers through village panchayats and cooperatives and help increase both production and marketable surplus of food-grains substantially.

16. It is expected that as a result of these various measures the production of the major crops will go up as shown in the following Table :

Table 5 Production of major crops

crop unit 1960-61 1965-66 Percentage increase in 1965-66 over 1960-61
foodgrains million tons 76-0 100-0 32
oilseeds million tons 7-1 9-8 38
sugarcane* million tons 8-0 10-0 25
cotton million bales 5-1 7-0


jute million bales 4.0 6.2@ 55

* In terms of raw sugar or gur.
@ Excludes mcsta which may provide 1 -3 million bales in 1965-66.

A substantial part of this increase is expected to be achieved through an improvement in the yield per acre. It is expected, for example, that the average yield of rice during the Third Plan period will be 1030 Ib per acre as compared to 8i)7 Ib in the Second Plan period.

17. With the achievement of these targets, the economy will become self-sufficient in the supply of foodgrains and per capita availability will go up from 16 oz per day in 1960-61 to 17.5 oz per day in 1965-66. The per capita consumption of cloth per annum will go up from 15.5 yards in 1960-61 to 17.2 yards in 1965-66. Production of subsidiary foods like fruits and vegetables, for which there is a growing demand in the country, will be given special emphasis and an attempt will be made to provide a more balanced diet than at present. Special measures will be taken to step up the production of commodities like tea, coffee, rubber, coconut, areca-nut, tobacco, pepper, cardamom and lac, which are important for either earning or saving foreign exchange.

18. Large programmes for the improvement of animal husbandry, dairying, fisheries and forestry have also been included in the third Plan. Of the key village blocks already established under the programme for intensive development of cattle, 55 will be expanded and 38 new blocks will be set up in important breeding tracts. The number of veterinary hospitals and dispensaries will be raised from 4000 to 8000 and the programme for eradication of rinderpest already initiated will be completed. The production of wool will be stepped up from 72 million Ib to 90 million Ib. The production of milk will be increased from 22 million tons to 25 million tons. New milk supply schemes will be taken up in 55 cities with a population exceeding one lakh each, 8 rural creameries, 4 milk product factories and 2 cheese factories will be set up. The production of fish will be stepped up from 1.4 million tons to 1.8 million tons; 4000 fishing boats will be mechanised and 35 large vessels will be added to the country's fishing fleet. Special emphasis will be given to the development of forestry—700,000 acres afforested with economic species, 600,000 acres of degraded forests rehabilitated and 1,200,000 acres developed as village forests. A countrywide pre-investment survey will be initiated with a view to assessing the potential for the development of large-scale timber and pulp-based industries.


19. Of basic importance in the Third Plan is the programme for the expansion of industries, especially capital and producer goods industries with special emphasis on machine-building and development of managerial skill, technical know-how and designing capacity. In this programme the public sector has been assigned a key role, but the private sector is also expected to have an important part to play within the framework of the plan. The share of the public sector in the net output of organised manufacturing industries is expected to increase from less than one-tenth in 1960-61 to about one-fourth in 1965-66, and the bulk of this will comprise capital and producer goods. For the development of industries and minerals, the Plan includes a programme costing Rs. 1882 crores but makes for the present a financial provision of Rs. 1520 crores in the public sector. In addition, the private sector is expected to provide about Rs. 1050 crores. The private sector is also expected to provide about Rs. 150 crores to meet the arrears of replacement and modernisation in certain pre-war industries.

20. The emphasis throughout the Third Plan is on the development of those industries which will help to make the economy self-sustaining, such as steel, machine-building and the manufacture of producer goods, and reduce as rapidly as possible the need for external assistance to purchase these goods and also permit a broadening of the export base. The production of consumer goods will also be expanded substantially, mainly in the private sector. It is expected that as a result of all these developments, industrial production will rise by nearly 70 per cent, but even more significant than this increase will be the development in the fields of iron and steel, machinery and chemicals, some idea of which may be obtained from the following Table :

Table 6 Index number of industrial production* (1950-51=100)

group 1960-61 1965-66 percentage increase in 1965-66 over 1960-61
general index 194 329 70
cotton textiles 133 157 18
iron and steel 238 637 168
machinery (all types) . 503 1224 143
chemicals . 288 720 150

* *This index is the same as the official index except that the comparison base has been changed from the calendar year 1951 to the financial year 1950-51 so as to facilitate measurement of growth over the Plan periods.
@Relates to crop year, November-October.

As has been mentioned earlier this index docs not include a large number of new industries and is being revised.

21. The major industrial projects in the public sector included in the Third Plan are in the fields of metallurgy, industrial machinery, machine tools, fertilisers, basic chemicals and intermediates, essential drugs and petroleum refining. Overall capacity targets proposed under the iron and steel industry comprise 10.2 million tons of steel ingots and 1.5 million tons of pig iron. These will be achieved by expanding tfle public sector steel plants at Rourkela, Bhilai and Durgapur to a target capacity of 5.9 million tons and also by setting up a fourth steel plant at Bokaro. There will be some expansion of capacity for steel in the private sector mainly through the installation of scrap-based electric furnaces which will augment the supplies of billets to re-rollers. About 200,000 tons of pig iron is also expected to be produced from low shaft furnaces proposed to be established on a decentralised basis in the private sector. The manufacture of tool, alloy and stainless steels has been given a high priority in the Third Plan and it is expected that a total production of 200,000 tons will be achieved by 1965-66. In the field of non-ferrous metals, the Plan aims at achieving a production target of 80,000 tons of aluminium and setting up the first zinc smelting plant in the country with a capacity of 15,000 tons. The production of copper is expected to increase from 8900 tons to 20,000 tons.

22. The most significant development during the Third Plan period will, however, be the rapid growth of machine-building and engineering industries. Foundry/forge capacity, which is crucial for machine-building purposes, will be established on a large scale in the public sector during the Third Plan. The heavy machinery plant being set up near Ranchi, on its expansion to a capacity of 80,000 tons of output per year, will be able to supply a large part of the equipment required for setting up a million-ton steel-making capacity every year. Three heavy electrical equipment projects are designed to ensure, from domestic resources, a wide range of electrical equipment sufficient to enable power generation to be increased at an annual rate of two million kW per year from 1971 onwards. In the field of machine tools, provision has been made for the expansion of the existing machine tool plants and the establishment of two new plants in the public sector. Substantial expansion in the production of machine tools in the private sector is also expected and the target for machine tools production has been put at Rs. 30 crorcs-The target for the automobile industry has been placed at 30,000 passenger cars and 60,000 commercial vehicles.

23. Production of inorganic fertilisers in terms of nitrogen will be stepped up from about 110,000 tons to 800,000 tons. A substantial increase in the production of phosphatic fertilisers is also proposed. A production target of 1.5 million tons has been set for sulphuric acid and of 340,000 tons for caustic soda. Provision has also been made for increasing the production of organic chemicals, plastics, dyestuffs and drugs. The target of production for cement has been fixed at 13 million tons and that of capacity for refining crude oil at about 11 million tons. Other important projects included in the Third Plan are the synthetic drugs project at Sanatnagar, antibiotics plant near Rishikesh and phytoche-mical project in Kerala. In the sphere of consumer goods industries, it is proposed to expand substantially the production capacity for cloth, paper, sugar, edible oils, watches, etc.

24. A short list of the important industrial targets included in the Third Plan is given below:

Table 7 Selected targets of industrial production

item unit 1960-61 1965-66
steel ingots million tons 3-5 9-2
aluminimum 000 tons 18-5 80
diesel engine . 000 numbers 40 66
tractors 000 numbers 7 10
electric cables (ACSR      
conductors) . 000 tons 22 44
nitrogenous fertilizers 000 tons of N 110 800
phosphatic fertilisers 000 tons of PaO. 55 400
sulphuric acid . 000 tons 363 1500
caustic soda 000 tons 100 340
cement million tons 8-5 13
petroleum products . million tons 5-7 9.9
machine tools (graded) value in Rs. lakhs 550 3000
ball and roller bearings million numbers 2-9 14
cotton textiles (mill-      
made) million yards 5127 5800
sugary million tons 3-0 3-5
paper and paper board 000 tons 350 700
bicycles (organised      
sector only) . 000 numbers 1050 2000
sewing machines (or      
ganised sector only) 000 numbers 297 700
automobiles . 000 numbers 53-5 100


25. The greater emphasis laid on the expansion of industry during the Third Plan calls for an intensified programme of mineral development. Some minerals have also a good export market and are important foreign exchange earners. Having regard to the programmes for power, railways, steel, cement and other industries which are important consumers of coal, the target for coal for the Third Plan has been fixed at 97 million tons. This target will require production capacity to be stepped up by 37 million tons over the target of 60 million tons set for the last year of the Second Plan. Of the additional production of 37 million tons, 20 million tons will come from the public sector and 17 million tons from the private sector. The amount of iron ore necessary to meet proposed steel and pig iron targets is estimated at about 20 million tons. The iron ore required for export will amount to 10 million tons. To meet this requirement, a capacity target of 32 million tons has been fixed for iron ore in the Third Plan. Provision has also been made for exploration and exploitation of new copper deposits for an annual production of 11,500 tons of electrolytic copper, exploitation of pyrites deposits in Bihar, development of diamond deposits in Madiiya Pradesh, extraction and processing of uranium and intensive exploitation of manganese, bauxite, gypsum and limestone deposits.

26. A high priority has been given to exploration and exploitation of the mineral oil resources in the country. The Oil and Natural Gas Commission will operate on a larger scale with a view to proving new reserves and establishing additional production. The programme of exploration will cover most of the promising sedimentary areas in the country. In addition, foreign firms have been invited by Government to join the search for oil subject to mutually acceptable terms. Oil India, a joint venture of the Assam Oil Company and the Government of India, is expected to achieve an annual production of 2.75 million tons of crude oil. Government will be entering upon petroleum refining as a producer for the first time in 1962. With the completion of the Nunmati and Barauni refineries and the projected refinery in Gujarat, the share of the Government in the domestic refining capacity will be 47 per cent of the total.


27. Along with large industries, village and small industries will be developed to provide employment and to increase production of consumer goods and some producer goods. Considerable progress has been already achieved in small scale industries, which combine the advantages of modern technology and the use of power with those of increased employment and greater opportunity for small entrepreneurs as well as for cooperatives. In the Third Plan they are expected to make still more rapid progress and to extend in larger measure to small towns and rural areas. A total provision of Rs. 264 crorcs is being made in the public sector for the programmes for village and small industries, as against about Rs. 175 crores spent in the Second Plan period. Additional funds will be available from other programmes community development, rehabilitation of displaced persons, social welfare and welfare of backward classes. Investment in the private sector is estimated at about Rs. 275 crores. It is also proposed to offer Government guarantees for bank loans to small industrialists. three hundred new industrial estates will be set up as against about 120 sanctioned during the Second Plan period. 'Rural industrial estates' will be set up in selected rural areas, where power, water supply and other essential facilities are available or can be readily provided. The Khadi and Village Industries Commission wilt give special attention to secure integrated rural development of selected compact areas or gram ekais, 3000 of which will be started during the Third Plan period. The production of cloth by the handloom, powerloom and khadi industries is expected to increase from about 2350 million yards in 1960-61 to 3500 million yards in 1965-66 and of raw silk from 3-6 million Ib to 5 million Ib. Programmes for .coir and handicrafts will be consolidated and enlarged.


28. Power being the basis for the development of industries, both large and small, a high priority has been given to production of power in the Third Plan. The programmes for power development both for public and private sectors total Rs. 1089 crores. By the end of the Third Plan, generating capacity, including plants already commissioned and those under erection and testing, is expected to be of the order of 13.4 million kW, of which 12.7 million kW is expected to be in commercial operation as against 5.7 million 1


29. The experience of the past few years has underlined the key role of transport and communications in ecoaomic development. The programmes under this head total Rs. 1655 crores while the financial provision is Rs. 1486 crores for the present. Although large investments were made in this sector under the previous two Pains, the Third Plan includes a substantial programme for its further development. The railway development programme has been formulated on the basis of an estimated increase of freight traffic from 154 million tons in 1960-61 to 245 million tons in 1965-66. Nearly 90 per cent/rf this additional traffic is expected to be on account of iron and steel, ores, coal, cement and railway materials. Provision has been made for, among others, the construction of 1200 miles of new lines, doubling of 1600 miles of single tracks and manufacturing of diesel and electric locomotives and certain other items, which are still being imported. The road programmes provide for the addition of about 25,000 miles of surfaced roads and also for improvement of the existing road systems, such as providing bridges and missing links and upgrading the existing roads. The road transport programme will be largely in the private sector. The number of commercial vehicles on road is expected to increase from 2.10 lakhs in 1960-61 to 3.65 lakhs in 1965-66. The freight traffic by road is expected to increase bv 120 per cent over the next five years. The Plan also includes programmes for development of major and minor ports and for expansion of shipping, inland water transport, civil air transport, posts and telegraphs and broadcasting services. An idea of the important targets in the field of transport and communications included in the Third Plan may be obtained from the following Table :

Table 8 Transport and communications

item unit 1960-61 1965-66
new lines . miles 800* 1200*
new double lines miles 1300* 1600*
freight carried . million tons 154 245
roads and road transport  
surfaced roads including      
nationil hi^hwiys . 039 miles 144 169
vehicles on road :      
commercial . 000 numbers 210 365
passenger . 000 numbers 50 80
goods 000 numbers 160 285
shipping :  
tonnage . lakh CRT 9-0 10-9
ports :  
major ports capacity million tons 37 49
communications :      
post offices 000 numbers 77 94
telegraph offices 000 numbers 6-5 8-5
telephone connections 000 numbers 460 660

* Relates to five year period ending in the year mentioned.


30. Scientific research.—Scientific, research, especially in fields having a close bearing on industrial and agricultural development, will be given special stimulus. New institutions for research in fields like petroleum technology and for the development and production of scientific instruments will be set up. Problems of utilisation and disposal of industrial and agricultural wastes will be given further attention during the Third Plan period. Provision will also be made for expanding facilities for basic research in universities and technical institutions. The valuable work done towards the use of nuclear energy for the production of electrical power and the use of isotopes, in agriculture, biology, industry and medicine, will be strengthened and further expanded. The production section of the Electronics Division of the Atomic Energy Establishment is expected to fabricate instruments of the value of Rs. 8 crores during the Third Plan period. A major effort will b; concentrated on the design and development of prototype nuclear power stations related to Indian conditions and the availability of loc'al materials, so that during the Fourth Plan period the country will be entirely independent of foreign consultancy in the design and construction of large nuclear power stations. The possession of the world's largest deposits of thorium in high grade ore requires that research and development work should also be concentrated on the long range objective of developing thorium as a fuel for power generation.

31. Technical education and training.—Technical education is very closely associated with the programme of industrial and agricultural development of the country. It is estimated that the Third Plan will require a total of 151,000. trained engineers and the Fourth Plan as many as 200,000. There will be need also for about 810,000 skilled workers in engineering trades and about 460,000 in non-engineering trades during the Third Plan period. The re-auirement will be much larger during the Fourth Plan period. To meet this demand the intake capacity of engineering colleges will be increased from 13,860 to 19,140 and of polytechnics from 25,570 to 37,390. Part-time and correspondence courses in engineering and technology will be also introduced. The number of training institutions for craftsmen will be increased to 318 by 1965-66 and in-plant training and evening classes for employed industrial workers will be arranged. In order to provide the requisite number of instructors for skilled workers and craftsmen, the capacity of the four existing central training institutes will be doubled and three new institutes will be set up. The total outturn of teachers from these institutes is expected to rise to about 8000. The intake capacity of agricultural colleges will be increased from 4600 to 6200 and of veterinary colleges from 1300 to 1460.

In addition to the engineering and technical personnel mentioned above, other categories of personnel required in large numbers include scientists, teachers, statisticians, administrators, managers and personnel for community development and cooperation and for programmes of social welfare and backward classes. For teachers of all categories and particularly for science teachers, where shortages have been felt during the Second Plan, more training facilities have been provided. About 59.000 additional personnel have to be trained in the Third Plan as Block Development Officers; Extension Officers in agri-culture, animal husbandry, industry, cooperation and panchayats; overseers; Social Education Organisers; Gram Sevaks and Gram Sevikas; etc. In the field of cooperation, the additional requirements of senior, intermediate and iunior categories of personnel will be nearly 14,000. To work out the various programmes of welfare relating to women, children and the handicapped about 3000 workers and supervisors will be required. Voluntary organisations in the field of social welfare will require about 5000 trained personnel. For welfare of backward classes, the requirement of Block Development Officers, Extension Officers, Gram Sevaks, medical personnel and other staff will be over 14,000. A large number of statisticians will be required in th" Third and Fourth Plans and they will be trained in the universities and other specialised institutions like the Indian Statistical Institute and the Institute of Agricultural Research Statistics. A large number of administrative and managerial personnel for industrial enterprises will also be required and training facilities for them will be provided in the institution already established in the Second Plan and the new institutes of management to be established at Calcutta and Ahmedabad and the National Institute for Training in Industrial Engineering at Bombay.32. General education.—The Third Plan envisages expansion of education facilities at all levels, but the outstanding feature of the Plan is the introduction of free and compulsory primary education in the country for the age group 6 to 11 years. Allowing for slower progress in the education of girls in certain backward areas, it is estimated that the proportion of pupils to the number of children will go up from 61.1 per cent to 76.4 per cent in the age group 6-11, from 22.8 per cent to 28.6 per cent in the age group 11-14 and 11.5 per cent to 15.6 per cent in the age group 14-17 during the Third Plan period. The total number of students in schools will go up from 43.5 million in 1960-61 to 63.9 million in 1965-66. The requirement of school teachers for the Third Plan has been assessed at 5.51 lakhs. Teachers' training facilities are, therefore, proposed to be expanded substant'ally. The number of students in universities is expected to go up from 9 lakhs in 1960-61 to 13 lakhs in 1965-66. One of the main tasks in the Third Plan will be to expand facilities for the teaching of science, the aim being to raise the proportion of science students to about 43 per cent. This is essential for meeting the increased demand in a number of different fields, e.g. science teachers for schools, students for engineering and other technical institutions and scientific personnel for industry.

33. A most important feature of the Third Plan will be the provision of a large number of scholarships to enable bright young students to complete their education in both secondary school and college stages. The present provision for scholarships under this head is proposed to be augmented by about Rs. 10 crores under the Third Plan.

34. Health and family planning.—In the field of health services, the Third Plan aims at further extension of existing programmes relatirig to improvement of environmental sanitation, control of communicable diseases, public health services fincluding matemitv and child welfare, health education and nutrition), family planning and training of medical and health personnel. The programme for eradication of malaria will be completed and nation-wide control campaigns will be intiated for smallpox and tuberculosis. Special measures will be taken to control cholera in the endemic areas. The number of primary health centres will be increased from 2800 to 5000 and of hospital beds from 185.600 to 240100 during the Third Plan period. The number of practising doctors is expected to go up from 70.000 to 81.000 and of nurses from 27000 to 45,000. Other important schemes included in the Plan relate to development of indigenous systems of medicine, health education, health insurance, school health service, maternity and child welfare and nutrition.

35. In view of the sharp increase in the rate of population growth, a high priority has been w'ven to fanrlv planning programmes in the Th'rd Plan. These programmes provide for fa) education and motivation for family planning, Cb) provision of services, (c) training. Cd) supplies and fe) research. It is proposed to make full use of non-official organisations for ensuring diffusion of the knowledge and the practice of family planning. Family planning activities will be integrated with normal health services and familv planning services including facilities for sterilisation will be provided through medical and health centres. The number of family planning centres will increase from 1649 to 8200.

36. Village water supply and local development works:-In the Draft Outline of the Third Plan. it was envisaged that the programme of local development works should aim at providing three principal amenities for rural areas, namely, (at suonlv of drinking water, fb) roads linking each villape to the nearest main road or railway station and (c) provision of village school buildings which might also serve as community centres and village libraries. In view of the overwhelming importance of providing satisfactory facilities for drinking water in the villages, it is proposed that there should be a concentration of effort on the village water supply programme. The other rural amenities should be taken care of through the community development programmes and through the rural works programmes to be undertaken for the fuller utilisation of manpower.

It is an important objective of the Third Plan that to as large an extent as possible, supplies of good drinking water should become available in most villages by the end of the Plan Period. It is realised that this is a difficult aim to achieve and will call both for intensive effort and for effective coordination between all the agencies concerned in carrying out the programme. Surveys of the extent of the problem of rural water supply are at present being undertaken in a number of States. On the basis of these surveys and with due regard to conditions prevailing in different areas, the resources provided for the village water supply programme are intended to be utilised in (a) backward areas, (b) areas not covered by the community development programme, (c) pre-extension blocks and (d) blocks which have completed their first and second stages in the community development programme.

37. The Third Plan also includes provision for adequate water supply for the rapidly increasing urban population. About 664 water supply and drainage schemes at an estimated cost of Rs. 112 crores were taken up in the Second Plan. Such of these schemes as have not yet been completed will be completed and some new urban schemes will also be taken up during the next five years.

38. Housing.—As a result of the growth of population and rapid urbanisation, the problem of housing has already become very serious and it is apprehended that it may become worse in future. It is obviously not possible to tackle this problem through public investment alone, although public investment has no doubt an important role to play in certain ways. While the Third Plan will expand considerably the measures which were taken during the previous two Plan periods, it will also supplement the investment that Government may be able to make by adopting appropriate policies regarding location and dispersal of industries, the preparation of master plans for important urban areas and coordinating the effort of the various agencies, both public and private, in a more effective manner. It includes proposals to set up housing boards at the Centre as well as in the States to enable a large number of lower and middle income people to build houses for themselves. The financial assistance for the housing of industrial workers and low income groups, slum clearance and improvement and land acquisition and development will be augmented. Town planning and urban development measures will be taken up in a number of cities. Rs. 10 crores have been provided in the Central Plan and another Rs. 10 crores in the and West Bengal Plan for meeting some of the urgent needs of Calcutta which poses a special problem for the eastern region of the country. The programme for rural housing initiated under the Second Plan will be linked more closely with the community development programme and greater attention will be paid to the setting up of brick kilns, manufacture of building components, extension of areas for building new houses and improvement of housing conditions for agricultural workers.

39. Social welfare.—Among the various programmes formulated in the social welfare sector, highest priority has been assigned to the child welfare services. It has been decided that all welfare programmes should have a pronounced child welfare bias. The distinctive feature of the programmes now proposed is to place more emphasis on the preventive rather than the curative aspect of the service and to that extent child welfare service would be organised not only for the handicapped but also for the normal children. At the field level, an integrated approach would replace the dispersed services. To deal with juvenile delinquency, the State Governments will be assisted in setting up institutions. The practice of exploiting children for the purpose of begging will be severely dealt with. Highest emphasis will be given to the elimination of juvenile beggary in the programme for the eradication of beggary. This programme will be introduced initially in large cities, places of pilgrimage and tourist centres. Among the programmes to be organised for the benefit of women, strengthening of mahila mandals—local women's voluntary associations—will be given special emphasis. The measures taken in the Second Plan for the welfare of backward classes will be further stepped up. About 300 special development blocks for scheduled tribes will be set up and the programme for forest cooperative societies expanded. Attention will also be paid to the rehabilitation of displaced persons from Pakistan, especially to the development of Dandakaranya area for their settlement.

40. The programmes included under scientific research, education, health, housing, social welfare, etc. under the 'general head social services and miscellaneous total Rs. 1526 crores. As against this, the financial provision that it has been possible to make for the present is Rs. 1300 crores. Every endeavour will be made to fill up this gap as the Plan gets implemented.


41. The programmes included in the Third Plan are expected to provide employment opportunities for about 14 million people. In view of the fact that as a result of the sharp increase in population, the number of new entrants to the labour force during the Third Plan period will be as many as 17 million, there is a special need for increasing employment opportunities further. This will be partly done by expanding the programmes for village and small industries aad agriculture to the extent possible. In addition, it is proposed to organise special works projects in rural areas on a mass scale. In its present preliminary formulation this programme is expected to provide work for an average of, say, 100 days in the year for about one lakh persons in the first year of the Third Plan, progressively rising to about 25 lakh persons in the last year. The total cost of the programme over the five-year period is reckoned to be about Rs. 150 crores.

42. A special effort will be made to mobilise active public cooperation in various Plan programmes through voluntary organisations. These organisations will be encouraged to shift the emphasis from purely social welfare to socio-economic activities like construction work. Through the Lok Karya Kshetra programme, facilities will be provided for these organisations to participate effectively in both welfare and production programmes in the rural areas.

43. Compared to the needs of the country, the targets included in the Third Plan are by no means high and in fact some are definitely inadequate. There is, thus urgent need to achieve these targets through most economical use of available resources, mobilisation of additional resources and increasing efficiency. This will be the constant endeavour of the Central and State Governments in the course of the implementation of the Third Plan and in that endeavour the correct balancing and phasing of projects and of outlays will require the greatest attention. It is possible that in spite of the best endeavours some of the projects will spill over into the Fourth Plan, but the utmost care must be taken to see that the projects which are essential for reaching the target of national income and for strengthening those sectors of the economy which are calculated to make it self-reliant and self-generating are completed in time.


44. It has been estimated that if all the programmes included in the Plan can be completed in time, national income (at 1960-61 prices) will go up by about 34 per cent. Net output of agriculture and allied sectors will go up by nearly 25 per cent, of mining and factory establishments by about 82 per cent and of other sectors by about 32 per cent. The estimates for agriculture, mining and factory establishments are based largely on the targets of production included in the Plan. But, in the case of other sectors, only indirect estimation is possible and, in many cases, the basic data are quite inadequate. For realising the estimated increase of about 34 per cent in national income, as explained earlier, many difficult conditions have to be fulfilled. One of the most important of these relates to the total investment to be undertaken. As indicated in Annexure II of this Chapter, the physical programmes included in the Third Plan, specially under industry and transport, entail significantly larger investment than have been provided for within the present scheme of financial provisions and resources in the Plan. With greater effort in mobilising resources which is envisaged, it is hoped to reduce and, if possible, to eliminate this gap. Nevertheless, on present assumptions and in view of the various considerations already outlined, it is considered that over the Third Plan period national income should go up by about 30 per cent from about Rs. 14,500 crores (at 1960-61 prices) at the end of the Second Plan to about Rs. 19,000 crores at the end of the Third Plan. On the basis of the present estimates of population, per capita income should rise from about Rs. 330 in 1960-61 to about Rs. 385 at the end of the Third Plan.


ANNEXURE I Production and development : progress and targets

item unit 1950-51 : 1955-56 1960-61 estimated 1965-66 targets percentage increase in
1960-61 over 1950-51
percentage increase in 1965-66 over 1960-61
1 2 3 4 5 6 7 8
1. agriculture and community deve lopment—  
1 -1 agricultural production  
foodgrains million tons 52 -2(a) 65 -8(a) 76.0 100-0 46 32
cotton million bales 2-9 4-0 5'! 7-0 76 37
sugarcane-gur million tons 5-6 6-0 8-0 10-0 43 25
oilseeds million tons 5-1 5-6 7-1 9-8 39 38
jute million bales 3-3 4-2 4-0 6-2(b) 21 55
tea million lb 613 678 725 900 18 24
tobacco 000 tons 257 298 300 325 17 8
fish . million tons 0-7 1-0 1-4 1-8 100 29
milk million tons 17-1 19-3 22-0 25-3 -29 15
wool million lb 60 65 72 90 20 25
1 -2 agricultural services—  
area irrigated (net total) million acres 51-5 56-2 70.0 90-0 36 29
land reclamation (additional area) (d) million acres   2-7 1 -2 3-6   200
soil conservation (additional area benefitted) (d) . million acres   0.7 2-0 11.0   450
nitrogenous fertilisers consumed 000 tons of N 55 105 230 1000 318 335
phosphatic fertilisers consumed 000 tons pf P,0, 7 13 70 400 900 471
seed farms (d) number     4000 4800   20
1 -3 community development  
blocks number 1069 3110 5223   68
villages covered 000 numbers 106 368 550   49
pipulation served . million numbers 69 204 359   76
1.4 cooperation  
primary agricultutal credit societies 000 numbers 105 160 210 230 100 10
short and medium term loans advanced Rs. crores 22-9 49-6 200-0 530-0 773 165
2. power  
2 -1 electricity              
installed capacity . million kW 2'3(c) 3 -4(c) 5 -7 12-7 148 123
generated million kWh 6575(c) 10777(c) 19850 45000 202 127
2-2 towns and villages electrifiec 1 000 numbers 3-7 7-4 23-0 43-0 523 87
3. minerals              
iron ore million tons 3-2 4-3 10.7 30-0 234 180
coal million tons 32-3 38-4 54-6 97-0 69 76
4. large scale industries  
4 -1 metallurgical industries              
steel ingots million tons 1-4 1.7 3-5 9-2 150 163
finished steel million tons 1-0 1-3 2-2 6-8 120 209
pig iron for sale million tons 0-35 0-38 0-90 1-50 157 67
alloy, tool and special steels (finished) 000 tons     40 200   400
aluminium 000 tons 3-7 7-3 18-5 80-0 400 332
copper (fire refined and electro-lytic) 000 tons 6-6 7-5 8-9 20-0 35 125

(a) Estimates of production adjusted for changes in statistical coverage and methods of estimation upto 1956-57
(b) Excludes mesta which may provide an additional I -3 million bales in the Third Plan.
(c) Relates to calender year.
(d) Relates to five-year period.


item unit 1950-51 1955-56 1960-61 estimated 1965-66 targets percentage increase in 1960-61 over 1950-51 percentage increase in 1965-66 over 1960-61
1 2 3 4 5 6 7 8
4.2 mechanical and electrical engineering industries cement machinery value in Rs. lakhs   34(c) 60 450   650
sugar machinery . value in Rs. lakhs 19 330 1000   203
industrial boilers . value in Rs. lakhs 40 2500   6150
machine tools (graded) . value in Rs. lakhs 34 78 550 3000 1518 445
ball and roller bearings million numbers 0-1 0-9 2-9 14-01(e) 28.00 383
diesel engines (stationary) 000 numbers 5-5 10-0 40-0 66-0 627 65
tractors number 2000 10000   400
electric motors (200 b.h.p. and              
below) 000 h.p. 100 272 700 2500(f) 600 257
electric transformers (33 kv and              
below) 000 kva 179 625 1200 3500 570 192
electric cables (ACSR) conductors 000 tons 1-7 8-7 22-0 44-0 1194 100
4 -3 Railway locomotives              
steam number 7 179 295 1175(d) 3214  
diesel number 434(d)    
electric number 232(d)    
4-4 rubber manufacturers              
automobile tyres million numbers 0-9 1-35 3-0   122
bicycle tyres million numbers 5-8 11-0 31-0   182
4-5 chemicals              
nitrogenous fertilisers 000 tons of N 9 79 110 800 1122 627
phosphatic fertilisers 000 tons of PaOs' 9 12 55 400 511 627
sulphuric acid 000 tons 99 164 363 1500 267 313
sodaash .... 000 tons 45 81 145 450 222 210
caustic soda ooo tons 11 35 100 340 809 240
sulpha ghuric drugs tons 83(c) 150 1000   567
D.D.T. tons 284 2800 2800  
dyestuffs million Ib 4-0 11-5 18-0   57
4 -6 other industries              
sewing machines (organised              
sector only) 000 numbers 33 111 297 700 800 136
bicycles (organised sector only) Oi)i) numbers 101 513 1050 2000 940 90
motor cycles and scooters 000 numbers 1-5 18 50   178
automobiles 000 numbers 16-5 25-3 53-5 100-0 224 67
ship buildings 000 GRT 50(d) 20 50-60   150-200
cotton textiles (mill made) million yards 3720 5102 5127 5800 38 13
rayon filament million Ib 0-4 16-0 47-0 140-0 11650 198
sugar (g) million tons 1-12 1-86 3-0 3-5 168 17
steel structural fabrications . 000 tons 90 150 1003   567
cement million tons 2-7 4-6 8-5 13-0 215 53
petroleum products million tons 3-6 5-7 9.9   74
paper and paper board . 000 tons 114 187 350 700 207 100
plastics 000 tons 0-7 10'0 74-0   640
glass and glass-ware 000 tons 92 125 225 440 145 96
industrial gases—oxygen million eft 700 160   136
5. Village and small industries              
traditional million yards 7-3 28-9 48-0   558  
ambar million yards     26-0 3500   49
handloom million yards 742 1471 1900   156  
powerloom million yards 148(c) 273(c) 375   153

(c) Relates to calendar year.
(d) Relates to five year period.
(e) By working the capacity on three shifts.
(f) 303 h.p. and below.
(g) Relates to crop year—November to October.

item unit 1950.51 1955-56 1960-61 estimated 1965-66 target percentage increase
in 1960-61 over
percentage increase in 1965-66 over 1960-61
1 2 3 4 5 6 7 8
sericulture million tons 2 -5(h) 3 -2(c ) 3 -6(e) 1 5-0 44 43
6. transport and communications              
6,1 transport services              
railways : freight carried million tons 91-5 114-0 154-0 245-0 68 59
roads : surfaced including national highways 000 miles 97-5 122-0 144-0 169-0 48 17
road transport : commercial vehicles on road 000 numbers 116 166 210 365 81 74
shipping lakh GRT 3-9 4-8 9-0 10-9 130 21
major ports ; handling capacity million tons 20 25 37 49 85 32
6 -2 communications              
post offices 000 numbers 36 55 77 94 114 22
telegraph offices . 000 numbers 3-6 5-1 6-5 8-5 81 31
number of telephones 000 numbers 168 .280 460 660 174 43
7. education              
7.1 general education              
students in schools million numbers 23.5 31.3 43.5 63.9 85 47
school going children as percentage of children in respective age-groups :—              
primarty stage 6-11 years 42.6 52.9 61.1 76.4 79 i) 45(i)
middle stage 11-14 years 12.7 16.5 22.8 28.6 102 i) 55(i)
high/higher secondary state 14-17 years 5.3 7.8 11.5 15.6 139 :i) 57(0
institutions :              
primary/junior basic schools . 000 numbers 209.7 278-1 342.0 415 63 21
middle/senior basic schools 000 numbers 13.6 21.7 39.6 57.7 191 46
high/higher secondary schools . 000 numbers 7.3 10.8 16.6 21.8 128 31
multipurpose schools 000 numbers 0.3 2.1 2.4   14
7 '2 technical education              
engineering and technology :              
degree level (intake) . number 4120 5890 13858 19137 236 38
diploma level (intake) . number 5900 10480 25570 39390 333 46
agriculture colleges (intake) . number 10600) 1989 4600 6200 334 35
veterinary colleges (intake) number 434(j) 1269 1300 1460 200 12
8. health              
8.1 institutions              
hospitals and dispensaries 000 numbers 8-6 10.0 12.6 14.6 47 16
hospital beds 000 numbers 113 125 186 240 65 29
primary health units number   725 2800 5000   79
family planning centres . number   147 1649 8200   397
8.2 personnel              
medical colleges (intake) number 2500 3500 5800 8000 132 38
doctors (k) 000 numbers 56 65 70 81 25 16
nurses (k) . 000 numbers 15-0 18-5 27-0 45-0 80 67
auxiliary nurse-midwives and midwives (k) . 000 numbers 8-0 12-8 19-9 48-5 149 144
nurse-dais and dais (k) . 000 numbers 1 -8 6-4 11 -5 40-0 i 539 248
health assistants and sanitary inspectors 000 numbers 3-5 4-0 6-0 19-2 71 220

(c) Relates to calendar year.
(h) Calendar year 1951.
(i) Worked out from enrolment figures.
j) Relates to 1951-53.
(k) Injpractice or in Service.

ANNEXURE II Outlay during the Second Plan
and cost of physical programmes in the Third Plan— estimates by heads
(Rs. lakhs)

  estimated outlay in Second Plan estimated cost of programmes in Third Plan
head of development States Union Territories States and
Union Territories

total States Union Territorie States's and Union Territorie Centre is Total
1 2 3 4 5 6 7 8 9 10 11
agricultural production 8367 268 8635 1075 9810 18351 598 18949 3658 22607
minor irrigation 9166 98 9264 230 9494 17269 177 17446 230 17676
soil conservation 1553 8 1561 200 1761 5732 246 5978 1295 7273
animal husbandry 1869 73 1942 200 2142 4592 172 4764 680 5444
dairying and milk supply . 958 3 961 244 1205 3986 24 3110 498 3608
forests 1656 122 1778 150 1928 4204 268 4472 667 5139
fisheries 710 26 736 170 906 2090 102 2192 672 2864
warehousing.- marketing and Storage -:310 18 328, 170 498 843 10 853 3300 4153
I. agricultural programmes . 24589 616 25205 2439 27644 56167 1597 57764 11000 68764
cooperation 3278 55 3333 50 3383 6959 151 7110 900 801.0
community development . 18744 463 19207 200 19407 28189 578 28767 600 29367
panchayats 460 30 490 1976(a) 2466 2824 56 2880 2880
II. community development and cooperation 22482 5f8 23030 2226 25256 .57972 755 38757 1500 40257
irrigation 34479 21 34500 2717 37217 58121 10 58131 1803 59934
flood control . (b) (b) (b) 4800 4800 5995 137 6132 6132
power 41882 914 42796 1753 44549 88315 2345 90660 11312 101972(c)
III. irrigation and power 76361 935 77296 9270 86566 152431 2492 154923 13115 168038
iadustries and minerals 2859 2 2861 87128 89989 7958 32 7990 180240 188230
village and small industries . 6949 294 7243 10323 17566 13703 425 14128 12300 26428
IV. industries and minerals . 9808 296 10104 7451 107555 21661 457 22118 192540 214658
railways       86011 86011       94000 94000
roads 14326 1598 15924 6440 22364 21830 2575 24405 8000 32405
road transport 1502 91 1593 225 1818 2044 559 2603 2603
tourism 144 13 157 60 217 394 22 416 350 766
posts and harbours . 314 45 359 2980 3339 490 18 508 12500 13008
shipping 5268 5268 - 263(d) 263 5500 5763
posts and telegraphs 5059 5059 7900 7900
civil aviation 4900 4900 5500 5500
broadcasting 468 468 1100 1100
other transport 52 99 151 53 204 273 25 298 1200 1498
other communications 327 327 930 930
V. transport and communications 16388 1846 18184 111791 129975 25031 3462 21493 136980 165473

(a) Includes expenditure for local development works.
(b) In the Second Plan outlay for flood control is shown at the Centre.
(c) Includes part provision for D.V.C. power programme and Bandel thermal station.
(d) For Andman and Nicobar Islands.

ANNEXURE II Outlay during the Second Plan and cost of physical
programmes in the Third Plan— estimates by heads
(Rs. Lakhs)

head of development1 estimated outlay in Second Plan estimated cost of programmes in Third Plan
States Union Territories States and Union Territories Centre

total States Union Territories States and Union Territori Centre ss total
1 2 3 4 5 6 7 8 9 10 11
genera) education and cultural programmes 16011 721 16732 4072 20804 31906 2104 34010 7800 41810
technical education 2141 31 2172 2600 4772 6986 173 7159 7000 14159
scientific and technological research - - - - 7000 7000
health 13021 566 13587 8047 21634 27114 2566 29680 4500 34180
housing 6411 266 6677 1356 8033 9620 2076 11696 2500 14196
welfare of backward classes 5080 214 5294 2647 7941 7498 389 7887 3500 11387
social welfaic 327 10 337 1181 1518 1048 114 1162 1600 2762
labour and labour welfare 769 12 781 1200 1981 2519 189 2708 4400 7108
rehabilitation 6341 6341 4000 4000
public cooperation and local works 34(c) - 34 5000 5034
VI. social services 43760 187.0 45580 27444 73024 86725 7611 94336 473000 141636
statistics and research 403 7 322 27 349 500 849
information and publicity 276 21 297 562 58 620 600 1220
local bodies 415 44 459 5086(f) 9980 310 65 375 375
State capital projects . 3196 3196 2475 2475 2475
others 507 25 532 1075 933 2008 4100 6108
VII. miscellaneous 4797 97 4594 5086(f) 9980 4744 1083 5827 5200 11027
grand total 98135 6158 204293 255707 460000 874731(g) 17487 402218 407635(h) 809853(h)

(e) In addition to this amount, outlay for 'public cooperation' will have to be found within the agreed Third Plan ceiling "by suitable adjustment in the following States : Rs. 6 lakhs each in Andhra Pradesh, Bihar, Madras, Madhya .Pradesh and West Bengal; Rs. 5 lakhs in Mysore and Rs. 1 lakh in Assam.
(f) Includes also anticipated outlay on account of Department of Atomic Energy, schemes of the Ministry of Finance and office and residential buildings under the
programmes of Ministry of Works, Housing and Supply.
(g) The distribution of outlays in West Bengal is subject to adjustments : (i) on account of West Bengal's share in the D.V.C., and (ii) increase in resources estimated at Rs. 43 crores, which the State Government expect to raise above the level of Rs. 90 crores shown in Chapter VI—Financial Resources.
(h) This excludes provision of Rs. 200 crores for 'Inventories'.

ANNEXURE III Outlay during the First, Second and Third Plans for States and Union Territorries

State/Union Territory First Plan (actual) Second Plan (estimated) Third Plan (Programme outlay)
Andhra Pradesh 108 175 305
Assam 28 51 120
Bihar 102 166 337
Gujarat 224(a) 143 235
Jammu and Kashmir 13 25 75
Kerala 44 76 170
Madhya Pradesh 94 145 300
Madras 85 167 290-9
Maharashtra (b) 207 390
Mysore 94 122 250
Orissa 85 85 160
Punjab 163 148 231-4
Rajasthan 67 99 236
Uttar Pradesh 166 227 497
West Bengal 154 145 250(c)
total—States 1427 1981 3847-3
Andaman and Nicobar Islands 2 3 9-8
Delhi 10 14 81-8
Himachal Pradesh 8 16 27-9
Manipur . 2 6 12-9
N.H. and T.A. 4 7-1
Tripura 3 9 16-3
Laccadive, Aminidivc and Minicoy Islands 0-4 1-0
N.E.P.A. 4 5-6 7-1
Pondicherry 1 4 6-9
total—Union Territories 30 62 174-8(d)
total—all India 1457 2043 4022 -1

(a) For the composite State of Bombay.
(b) Indicated against Gujarat.
(c) Provisional.
(d) Includes an unallocated amount of Rs. 4 crores.

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