4th Five Year Plan
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Chapter 6:

The proper and timely implementation of Plans great importarce in the planning process and is facilitated if the necessary steps are taken at the stage of formulation hseif. The investment under the Plans is devoted to large individual investment projects and development programmes and schemes. There are "Number of steps common to both (hese areas which facilitate implementation. These incsude the indenfication of organisations entrusted with particular aspects of implementation, establishment of specific responsibilities, determination of means or machinery ilirough which they will be filled planning for execution, development of information control systems for appraising the progress as taking corrective action in time. In addition, for each of the two broad areas, there are specific tasks to be undertaken for ensuring efctive implementation. For example preinvestment planning should be carefully undertaken before embarking upon large individual projects. This involves an analysis of resource potential, indentification of programmes and projects and their preliminary formulation to be followed by feasibility studies covering aspects such os demand analysis, teahnical development cost estimates, prontability analysis and assesment of national economic benefits. The projects could then be selected on the basis of technical and economic criteria. For this purpose, criteria have to be evolved to determine the rates of return and to evaluate costs and beings. The preparation of detailed project repons has to provide, among others, for realistic time schedules of construction and requirements of materials, manpower and training of personnel. There are intended to ensure sufficient implementation of projects, avoiding increase in costs and dislocation of time schedules. Financial, administrative and managerial responsibilities could, to a large extent be specifically indicated in the project reports themselves.

6.2. After the project formulation stage, attention has to be devoted to efficiency and economy in the construction of projects. Apart from the use of improved techniques of planning, scheduling and control, steps must be taken for improving the systems of reporting on progress and shortcomings in implementation. As most of project construction work is undertaken by different parties working on contract basis, the contracting process itself has to be improved so that the integration of contract activities with the overall project plan may form the basis for effective management control during the construction phase. This will help in co-ordinating the efforts of different agencies engaged in construction work and in ensuring the comples on projects according to ychedules.

6.3. During the operation phase also, concerted eiloris quired for reduction of costs and improvement of efficiency and productivity. The plans concerned not only with creation of new production facilities; it is equally concerned with getting op.isnum from facilities and capacities already ci-aieu. Technological improvement and rasing of productivity are basic to economic progress. They have to be built into each of the included in the Plan. Application of h.'pr: ved :Kanagern.-nt systems can go a long way way in yielding belter results in this area. The include, going ethers, prcduction planning and control sys-etc, scientific inventory, managements co;-t and quality control systems and proper incentive schemes.

6.4. Continuous appraisal of progress is of vital importance for ensuring successful implementation Suuabje information and reporting systems will have to be devised so that those responsible for iimplementation can anticipate difficulties, judge at each sgrep zhe progress and perfc'rmance in relation io prc-determircd of costs and time and take corrective measures. This is true not only of large projects but also for different programmes, schemes in all the sectors. Besides, proper material planning, standardisation and substitution should be undertaken so as to reduce inventories and costs at the project levels and ensure optimum utilisation of scarce materials at the national level.

6.5. Each year every large project should undertake forward planning, both in physical and financial terms, for a further period of five years. This would ensure that its estimates of cost and time and physical results are reviewed systematically. Whatever changes or repjanning are needed, should be undertaken as a matter of normal practice. Apart from these steps for implementing individual projects, measures are needed to ensure coordinated and integrated approach to groups of inier-dependent and inter-linked projects. This is particularly so in projects where the output of one becomes the input of another and a number of agencies in different sectors are involved. Such integrated approach will help in avoiding imbalances and delays in expected returns and benefits.

6.6. The need for effective coordination arises equally in development programmes also. In most of these programmes a large number of different activities have to be planned together in order to produce the desired results. Apart from marshalling all the relevant data and articulating objectives fully. proper pioyjsion for coordination and synchronisation is essential for implementation. A given objective, such as that of increasing agricultural production, would be related to a large number of schemes and projects and to the activities of different departments. 11 would be related to the conservation of land, development of water resources, construction of connecting communications, availability of power suppiy of lcngerm and short-term credit, institu-tionalisation of marketing, guaranteeing of prices, or setting up of cooperative processing units. This is apart from the specific agricultural departmental activities such as those of supply of seeds, fertilisers, pesticide-., introduction of improved practices and implements, provision of technical assistance and advice or the operation of demonstration and research farms. This brief list is merely illustrative of .he ne.sd to establish appropriate relations between -.he activities of different departments and agencies which in part or in whole subserve one common objective. Another instance in point is that of the iron ore export programme which involves a number of steps ranging from mining of the ore to its eventual shipment for export. The efforts of the various participating agencies such as the mining organisations, State Governments, the road transport companies, the railways, the pons and shipping lines have to be properly integrated to achieve the targets for iron ore exports. Given the size of the Plan and the precise nature of the objectives, the extent and character of each activity ard its chronological order would have to be determined in close relation to all the other activities which it supports or by which is supported. If this aspect of mutual relation is not properly taken into account in the formulation of the Plan, there would obviously be disproportionate utilisation of resources in particular directions. Such expenditure would be wasteful insofar as it fails to yield results beca; se of lack of necessary support. The complementary action of different prcgrainmes can bear fruit if the activities provided for are not only appropriate and in proportion, but also if in each context they are in fact undertaken and completed at the appropriate times.

6.7. The identification of organisations entrusted with particular aspects of implementation, or in certain contexts the creation of such organisations in advance, is also important. There are some fields in which new experimental effort requires mainly organisational improvisation. This is true of problems relating to what are called the weaker sections or with problems of conservation of development of non-arable land in which a number of departments such as forest, revenue and animal husbandry may be interested and where without arousing local interest and cooperation no effective programme can be carried out. Inevitably, problems uiisation loom large where a departure frcni she traditional pattern becomes necessary or where ;he tiis.idvantaged are sought to be benefited. In the formulation of Plans and more particularly in the process of implementation, therefore, attention has to be paid to indicating carefully the organisations enfp.'ssed with operation and coordination and, isi many fields also to designing and experimenting with new types of organisations for the purpose.

6.8. Implementation will be further improved if i-Tcater tittention is paid to Annual Plans and Plans are more elaborately prepared at the State and District levels.

Annual Plans

8.9. Five Year Plans, however carefully prepared and however firmly based, can be affected by unexpected events and by changes in the politico-economic situation. While the Five Ye-r Plan will consimie to form the main base, it is necessary to prepare a more elaborate Plan for each year which will be the operative Plan. The main purpose of the Annual P!an would be to maintain the development effort during the year along the lines indicated in the Five Year Plan. The Annual Plan would look to any adjustments in relative emphasis and size of outlays which become necessary and possible in view of the emergent economic situation. It should provide details of the year's programmes in the ligin of immediate past preformance, physical availabilities and financial resources. The system of performance programme budgeting, being introduced in the Central Government, should, through and appropriate linking of the physical and financial aspect of each programme, help in strengthening the Annual Plan formulation process. This would not only ensure effective control of programmes by budget allocations but would also facilitate and integration of the planning and budgetary prc-cesscs. It is expected that there will be an effective spread of the system to the State and local levels in the Founh Plan period. It is also necessary to provide for a continuous review of the progress of the - economy and a running evaluation of the process of implementation. The Administrative Reforms Commission has recommended the creation of a Plan appraisal and evaluation wing in the Planning Commission. It will help the Commission to identify lags and bottlenecks and initiate corrective measures.

State Plans

6.10. In the States, Plan documents have been generally drawn upon the lines suggested by the Planning Commission. Necessarily there are many aspects of Plan formulation which need attention after the process of the formal adoption of a State Plan has been concluded. Every State will have to undertake an analysis of fiscal and regulatory policies, administrative organisations and institutional framework at various levels. For this purpose k is important to strengthen the State organisatians for planning. The administrative procedures and staffing patterns of the planning departments in many States do not provide for a detailed study of either performarce or the quality of the new proposals from different departments. As a result, the integration of one scheme with another cannot be ensured at the stage of Plan formulation.

District Planning

6.11. If the State Plans are to succeed, their formulation in relation to physical features and resources and the institutional organisations in each area is ths first requirement. Development needs not only financial resources ard material inputs but personnel and the right kind of institutions. This requirement has to be worked out for each operational area. The natural corollary of beginning to plan realistically and from the bottom is to recognise that planning is not something that comes from outside or the above but what each State, district, locality and community does to develop its own resources and potentialities. This emphasises wide diffusion cf initiative, decision-making and participation. It also implies a parallel shouldering of responsibilities.

Administrative Machinery

6.12. Implementation of plans is intimately associated with better organisation and operation of the general administrative machinery. Attention may be called to two broad aspects of special importance to planning. The first is the need to incorporate in our administration, including that of the public sector undertakings, the technician, the specialist and the expert in an appropriate manrer. The structure of the older organisation and its line of command were inevitably constructed round the generalist administrator. This has 10 undergo modification in that the specialist, the technician ard the expert have to be enabled to make their contribution in a responsible manner at all levels of administration.

6.13. The other aspect is that of inducing in the expert or the technician a proper appreciation of the administrative and economic aspects of the problems that he handles. Unless ths expert or the technician begins to work at problems of Plan for mulation and implementation, not chiefly from the point of view of feasibility of technical performa' ce or optimum iechno!ogica! requirements but from the point of view of what could be the least arrangements urider give'1 administrative and economic cors-'raims, his contribution to planning would not be very effective. It is possible that putting the tech:,i-cian or the expert in more responsible administrative positions might itself help in maki'-g progress towards the latter objective.

Public Accountability

6.14. Exposed to constant public scrutiny, the managements of public sector projects are often afraid of taking adequate initiative and decisions involving risks, which are generally necesary in commercial undertakings, as the operati inal autonomy is generally lacking. As early as 1959, the Krishna Menon Committee made a number of recommendations intended to reconcile the accountability of public undertakings to Parliament on the os-is hand with their autonomy for ensuring efficiency on the other. The Administrative Reforms Commission has also gone into the subject, in detail. While Government has to ensure th^t the general policies pursued by the public sector organisations are in conformity with the national objectives ard declared policies, the enterprises have to be given sufficient freedom in day-to-day operations so that die managements can run the organisations, both irdustrial and others, in accordance wih commercial principles. This will help in increasing their profitability and efficiency.


6.15. In order to develop the competei'ce of personnel at different levels is the Centre and States engaged on tasks of plan formulation, implementation and evaluation, training programmes will have to be suitably strengthened, developed and organised. The object of such training would be to impart necessary skills, develop right attitudes, increase decision-making abilities and stimulate critical and innovative thinking. These programmes should cover managerial, technical and administrative personnel at all levels engaged not only in planning work. but also in the execution of projects and programmes.

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