Kelkar Committee proposes higher allocation to RoM than Vidarbha


* Blames structural changes and political powers in past 15 years for contributing to increase in regional imbalance
* Asks the Government to expedite completion of pending irrigation projects in Vidarbha

By Kartik Lokhande
With the winter session of State Legislature getting prorogued on Wednesday, some more details of the much-awaited Kelkar Committee on balanced development of various regions have come out. Interestingly, the committee has suggested 41.45 per cent of allocation to Rest of Maharashtra (RoM) and lower allocation to Vidarbha region. Though there are several other provisions that may be welcomed by people from Vidarbha, the allocation formula may raise eyebrows.
The committee, headed by noted economist Dr Vijay Kelkar, has suggested financial outlay to be classified into two categories -- divisible and non-divisible. The divisible outlay will be divided among three regions of Vidarbha, Marathwada, and RoM and these will not include Mumbai. Apart from water sector, the parameters on which divisible outlay will be given include population, development distance/gap, per capita income, and area.
For water sector, the committee has recommended 43.15 per cent allocation to RoM, 35.26 per cent to Vidarbha, and 21.59 per cent to Marathwada. On other parameters (population etc), it has recommended 40.71 per cent for RoM, 30.78 per cent for Vidarbha, and 28.51 per cent for Marathwada. Overall, RoM has been recommended to get 41.45 per cent of divisible outlay, followed by 33.24 per cent to Vidarbha, and 25.31 per cent to Marathwada. According to sources in the know of things, the parameters of population and area will do the trick for RoM while Vidarbha will have to be content on second place in financial allocation.
Interestingly, sources added, the committee itself points out that Vidarbha’s per capita income is 27 per cent lesser than that of RoM. Compared to RoM, there has been a proportionate increase in decline of per capita income of Vidarbha and Marathwada regions from 0.82 to 0.76, and 0.66 to 0.59 respectively. Between 1993-94 and 1999-2000, the difference in per capita income was on a steady decline. However, between 2000-01 and 2009-10, the trend got reversed mainly on account of negative impact on agriculture sector in Vidarbha region, a brief summary of the report points out.
The committee makes an interesting observation in the report. It states, “In past 15 years, structural changes in various enterprises and regional changes in political powers in the coalition Governments, also contributed to increase in regional imbalances and difference in per capita income of various regions.”
The committee has pointed out regional outcome indicators. These include transport and communications network, education and skill development, health, credit availability, power, development distance. Vidarbha is the hardest-hit region in transporrt and communications network, health, and development distance.
As far as water sector is concerned, the committee has recommended treating groundwater as an important development indicator. It has recommended independent definite financial allocation for a limited period in priority sector under plan component -- Rs 1,798 crore for 44 water-stressed tehsils; Rs 1,732 crore for 85 tehsils with groundwater adversity; Rs 2,520 crore for ex-Malgujari tanks; and Rs 542 crore for saline belt. Of these four areas, the first two are expected to benefit mostly RoM and parts of Marathwada, while the remaining two will benefit Vidarbha and Marathwada.
Among the provisions that will make the people from Vidarbha happy are elevating the level of irrigation in all administrative divisions of Amravati, Aurangabad, Nagpur, Nashik, and Konkan to that of Pune division, where it is the highest. Besides, the panel has suggested to ensure maximum utilisation of of water in Nagpur and Konkan divisions, by ‘overcoming the limitations of Forest Conservation Act or administrative/political will’.
Further, it has asked categorically to complete the pending irrigation projects in Vidarbha region on ‘priority basis’. It has also emphasised on utilisation of water resources available in river Wainganga and its tributaries, through dams and lift irrigation schemes. An important recommendation for Vidarbha pertains to payment of Net Present Value (NPV) while constructing any project to compensate for estimated loss of forest. The panel has recommended not to include NPV in project cost, but to charge it on Contingency Fund for drinking water projects.


Other Recommendations

Recently, ‘The Hitavada’ had published some part of the Kelkar Committee report, which is yet to be tabled before State Legislature. Here are some more of its recommendations:

* Equitable distribution of Mantralaya departments in Vidarbha, Marathwada, and RoM in accordance with Nagpur Pact

* Mantralaya to be transferred to Nagpur between December 1 and 31 every year

* Various directorates to be transferred to Nagpur and Aurangabad as per Nagpur Pact

* Cotton Mission, Regional Horticulture Mission, Fodder and Animal Husbandry Mission for Vidarbha and Marathwada regions

* Rice Mission for Nagpur Division

* Agriculture and Forestry University to be established in Chandrapur district

* 2 per cent concession in Sales Tax to attract manufacturing industries to Vidarbha, and reduction of one per cent in interest charged on capital obtained from banks

* Free trade warehousing area in MIHAN

* Parbhani-Hingoli-Washim to be declared as Textile Region and a special policy scheme to be launched

* Expedite work of Ratnagiri-Nagpur national high way

* Relook of ‘No Fail Policy’

* Pass the Private Universities Bill

* Airport in each district

* Block-level Planning Committees

* Project Evaluation Board at state-level, State Statistical Board

* Maharashtra Development Research Council at state-level, and institutes at regional levels

* Regional Watershed Area Missions for each of the three identified regions

* Maharashtra Agriculture Engineering Company

* Farm Mechanisation Institute at state level, Agriculture College for each tehsil, and Agriculture Polytechnic in cluster of villages have population size of one lakh

* Training Institute for Women in Agriculture in each region

* Maharashtra Council for Agricultural Research to be set up at Aurangabad with initial grant of Rs 500 crore

* Maharashtra Agricultural Industries Development Corporation to be broken up into regional corporations for Vidarbha, Marathwada, Western Maharashtra, and Konkan

* Credit Guarantee Corporation for micro, small, and medium enterprises

* Community College in every block 

(Decemberr 22, 2014) 

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