District Planning Lessons From India, Planning Guide, 1995

TRAINING
District Planning : MATERIALS

FOR
Lessons from India AGRICULTURAL
PLANNING
37/1
Planning Guide
Lal Bahadur Shastri National

Academy of Administration,
Mussorie, India
Agricultural Policy Support Services,

Policy Assistance Division,
FAO Technical Cooperation Department
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

Rome, 1995
FOREWORD
The current structural adjustment process in India aims at changing the roles of the
government and the civil society so as to promote private sector development and
concentrate public sector interventions in those areas where, (as stated in the
Directional Paper of the Eighth Plan), "private sector participation is not likely to
come forth to an adequate extent within a reasonable time perspective".
Concurrently with changes in macro-economic policies, the Government of India also

brought about important Constitutional Amendments to strengthen local governments
and decentralised planning. The Seventy-third and Seventy-fourth Constitutional
Amendments envisage the empowerment of panchayats and municipalities by their
State legislatures to prepare "plans for economic development and social justice"
encompassing agriculture, small-scale industry, health, education and poverty. This
will place a heavy burden of decision-making upon locally elected officials as well as
the Government officers who advise them and who have to implement the ultimate
decisions.
This Manual intends to provide district functionaries with concepts and simple tools
of analysis for the preparation of district plans according to the existing planning
procedures and processes of consultation with the panchayat bodies. It has been
prepared through a joint collaborative effort of specialists from eight institutions in
India, thus encompassing the experience in district planning and in training which
exist in the country.
The Manual comprises a Planning Guide and a Trainers' Guide. The Planning
Guide is a set of simple and self-contained guidelines for planning that can be used
(if necessary) without prior training. The Trainers' Guide is meant to help trainers
plan and run courses on district planning using the Planning Guide as the main text.
We hope that it will be useful and that it will result in more effective planning and
implementation. We also expect trainers and district functionaries to adapt it to their
own context and to make it evolve over time. Although the Manual is prepared on
the basis of Indian experience and needs, the approach and methods are of wider
interest to cater to the requirements of other countries embarking on decentralisation
of planning. We shall appreciate receiving feedback on its use.
M. Cox N.C. Saxena

Director Director
Policy Assistance Division Lai Bahadur Shastri National
FAO Academy of Administration
Rome, Italy Mussoorie, India
2
Table of contents
Foreword
Acronyms
Preface
Chapter 1: Purpose of this Guide
1.1 Many district plans have been prepared in India

but an effective district level planning process
has not been firmly established
1.2 A better district plan has five important characteristics
Chapter 2: How to use this Guide
2.1 Introduction
2.2 The layout of the Planning Guide
2.3 The presentation of material on the pages of the Guide
2.4 Definitions
2.5 Matrices, tables and formats
2.6 How to use the Guide
Chapter 3: District Analysis
3.1 Purpose of this chapter

3.2 Layout of the chapter
3.3 Assembling a district data matrix
3.4 Identifying block level disparities
3.5 Constructing tables for previous years to enable
trends to be analysed
3.6 Analysis of trends
3.7 Preparation of district summary tables
3.8 Preparation of base maps
3.9 Preparation of district profile
3.10 Conclusion
Chapter 4: District Objectives

4.2 Layout of this chapter
4.3 Identification of potentials and opportunities
4.4 Identification of problems and gaps
4.5 Consulting panchayat institutions in the district
4.6 Cross-checking data
4.7 Ranking potentials, problems and needs
0
4.8 Transmitting the rank ordered list to District
Planning Committee and/or district level Panchayat
4.9 Objectives statement
4.10 Conclusion
Chapter 5: Analysis of Programmes and Schemes

5.3 Sources of data
5.4 Analysing a programme or scheme for consistency
5.5 Consistency with environmental requirements
5.6 Analysis of capacity for expansion
5.7 Block disparity analysis
5.8 Analysis of linkage effects
5.9 Adjustment in programmes and schemes
5.10 Conclusion
Chapter 6: Planning New Projects

6.2 Project identification
6.3 Prioritising project ideas
6.4 Designing a new project
6.5 Analysing project feasibility
6.6 Financial analysis
6.7 Environmental analysis
6.8 Conclusion
Chapter 7: Financing the Plan

7.3 The process of financing
7.4 Estimation of financial resources
7.5 Estimation of financial requirements
7.6 Allocation of funds
7.7 Conclusion
Chapter 8: Putting the Plan into Practice

8.3 Operationalising the planning process
8.4 Laying out the plan
8.5 Negotiating and reaching an agreement on the plan
8.6 Conclusion
1
Table of Formats
Chapter 3
3.1 Land and agricultural resources matrix

3.2 Block disparity analysis form
3.3 Trend data table
Chapter 4
4.1 Cumulative listing of potentials, problems, needs and gaps

4.2 Proforma for statements of needs from Gram Sabhas
4.3 Prioritising potentials, problems and needs
4.4 Identifying objectives
Chapter 5
5.1 Consistency table layout

5.2 Checklist of environmental concerns
5.3 Checklist for expansion
5.4 Block disparity table
5.5 Linkage table
5.6 Programme adjustment table
Chapter 6
6.1 Logical framework table
6.2 Cash flow table
6.3 Checklist of environmental concerns
6.4 Environmental impact assessment table
Chapter 7
7.1 Financial resources table

7.2 Credit review
7.3 Financial review
7.4A Total direct requirement
7.4B Total financial requirement
7.5 Allocation of funds table
7.6 Major sectoral outlay by blocks
2
Acronyms
AO Approved Outlay
ARI Average Return on Investment
EDO Block Development Officer
BPC Block Planning Committee
CAZRI Central Arid Zone Research Institute
DIG District Industries Centre
DPC District Planning Cell
DPCC District Planning and Coordination Council/Committee
DRDA District Rural Development Agency
DWCRA Development of Women and Children in Rural Areas
ETA Environmental Impact Assessment
FAO Food and Agriculture Organisation of the United Nations
FSS Farmers Service Societies
HCM RIPA
Hari Chandra Mathur Rajasthan Institute of Public Administration
HYV
High Yielding Variety
IAY
Indira Awaas Yojana
ICAR
Indian Council for Agricultural Research
ICDS
Integrated Child Development Schemes
IRDP
Integrated Rural Development Programme
JRY
Jawahar Rozgar Yojana
km
kilometre
LBS
Lai Bahadur Shastri Academy
LQs and LQ(G)
Location Quotients (Growth)
MFC
NFE Municipal Planning Committee
NIRD Non-Formal Education
NSS National Institute of Rural Development
PAC National Sample Survey
PHC Primary Agricultural Credit Societies
PWD Primary Health Centre
SC/ST Public Works Department
SCDC Scheduled Caste/Scheduled Tribe
SFC Scheduled Caste Development Corporation
SRS State Finance Commission
SSI(s) Sample Registration System
STC Small Scale Industry (ies)
TRYSEM State Transport Corporation
U.P. Training of Rural Youth for Self Employment
VLW Uttar Pradesh
Village Level Worker
3
PREFACE
This Manual on District Planning has been prepared as part of a collaborative project between the
Government of India and FAO. The project arose out of a felt need for a straightforward, readable and
above all usable set of guidelines for district functionaries, planning practitioners and trainers as well
as others directly or indirectly involved in planning at the District level.
The project was conceived from the start as a participative learning process with several stages.
In the first stage expert practitioners, researchers and trainers were commissioned to prepare material
for different sections of the manual based upon [he experience of their institutions. Participants in ihis
phase were:
Dr Raj Bala and Mr Vinod Zutshi (HCM Rajasthan Institute of Public Administration, Jaipur)
Ms Aneetha Benninger (Centre for Development Studies and Activities, Pune)
Professor R.N Chattopadhyay, B.C Chattopadhyay, C.R Pathak and Dr Chandreyee Das (Indian
Institute of Technology, Kharagpur)
Dr S.P Jain (National Institute of Rural Development, Hyderabad)
Dr Ramachandran Pillai and Dr M.A Oomen (Institute of Management in Government,

Thiruvananthapuram)
Dr Om Prakash and Dr. J, George (National Institute of Rural Development. Hyderabad)
Professor A.K Sengupta (University of Lucknow)
The second stage brought these contributors along with trainers drawn from other institutions to a
workshop in Mussoorie in July 1994 at which the material was systematically reworked and redrafted.
After further revision three training courses for practitioners were undertaken, at the University of
Lucknow (Professor Sengupta and Dr. P.N. Sharma), at the Indian Institute of Technology Kharagpur
(Professor Chattopadhyay and Dr. Das) and at the National Institute of Rural Development Hyderabad
(Dr. Orn Prakash and Dr. Jacob George). These workshops led to the production of relevant training
materials and to useful feedback from district planners,
The final stage brought Dr. Raj Bala, Dr. Das, Dr. N. Sivanna and Mr, P. Michael Vetha Siro Mony
to Birmingham U.K where Volume I was further revised and Volume 2. the Teaching Guide was
written,
The project has been coordinated in India by Professor H. Ramachandran at LBS National Academy
of Administration. Mussoorie. Professor Ramachandran's immediate predecessor, Professor Amitabha
Mukherjee was instrumental in formulating the project and guiding its early stages. Dr J.R Watson and
Dr Donald Curtis (University of Birmingham, U.K) have acted as consultants to FAO on the project.
Ms Maria G. Quieti (FAO, Rome) has acted as technical supervisor throughout the project.
4
CHAPTER 1
PURPOSE OF THIS GUIDE
1.1 Many district plans have been prepared in India but an effective district level
planning process has not been firmly established
The need for decentralised planning has been recognised by Government for some time and
a number of reports have been prepared to guide district planners. The most important of
these is the Report of the Committee on District Planning (Hanumantha Rao Committee) of
1984. The guidelines contained in this and other reports have still to be generally adopted.
Most plans in the past have been prepared by compiling departmental and similar programme
targets for the district into a single volume, sometimes with a preface which describes the
district and the contribution government programmes will make to its development. Plans of
this kind have been useful as a means of coordinating programmes across the whole range
of sectors and as a way of monitoring achievement. But they have a number of
shortcomings. The most important is that they do not for the most part attempt to identify
clear objectives for the district and tailor programmes to suit. Rather, they concentrate on
the implementation of central or State planned programmes.
Change is now in prospect. The Constitutional Amendments will mean the transfer of
important responsibilities to panchayat councils and municipalities. The 73rd amendment
envisages that panchayats may be empowered by their State legislatures to prepare "plans for
economic development and social justice" which may include up to 29 subjects including
agriculture, small scale industry, health, education and poverty alleviation.
Carrying out these responsibilities will place a heavy burden of decision making upon locally
elected officials as well as the Government officers who advise them and who have to
implement the ultimate decisions.
Planning - which means deciding what is best to be done and where - will be an important
way of helping elected officials and their advisors. But if planning is to work, methods of
planning need to be worked out and planners need to be trained in them. These are the
reasons for this Manual which comprises two Guides: a Planning Guide and a Training
Guide.
The first of these Guides - the Planning Guide - has been prepared by a team of specialists
from institutions throughout India with one simple aim: to help district functionaries to
prepare a better district plan.
1.2 A better district plan has five important characteristics:
• it is simple to read and can be easily explained if necessary to many different

kinds of audience.
5
• it is logical. The reader can easily see how the planner has worked to produce
proposals that are sensible in the light of the information available.
• it takes the social and economic facts of the district into account.
Decision makers can see that the plan is a common sense attempt to deal with
the local situation,
o This means trying to identify what opportunities there are for development,
what are the district's problems, what are its needs and what sort of gaps exist
in the provision of public services.
o It also means trying to plan development in a way that fills gaps in the
existing provision of services (for example, education) and also which helps
the private sector to generate employment and incomes.
• it takes account of local felt needs. It is often said that decentralisation places
power in the hands of local politicians. This may be so but it is also true that
politicians must take account of the problems and wishes of the people who elect
them. Consequently, a better district plan is one which depends upon local
consultation to identify people's needs and one which is approved by and gains the
commitment of local representatives.
• it is practical. Not many districts can plan with a clean slate. Planning must begin
with ongoing schemes and programmes, and adjust them where possible to fit better
a district's potentials and felt needs.
This Guide is primarily aimed at those district level functionaries who are responsible for
plan preparation and those who will train them.
However, it has been written as far as possible so that others, whether people's
representatives or the ordinary citizen, can see and understand how planning is done.
Consequently, the emphasis is upon simple and practical procedures that produce useful
results. Much reliance is placed upon the use of simple tables as a way of collecting and
analysing information. Tables suit normal government procedures and are also easily
computerised. Complicated methods and particularly those which rely on mathematics have
been avoided as far as possible.
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CHAPTER 2
HOW TO USE THIS GUIDE
2.1 Introduction
The Manual as a whole has two parts: a Planning Guide and a Training Guide.
• The Planning Guide is intended for district level planners and other concerned
officers who are responsible for the production of a district plan. It is designed to be
a simple and self-contained set of guidelines to planning that can be used (if
necessary) without prior training.
• The Training Guide is intended for trainers from national and State level
institutions who will be responsible for designing and implementing short training
courses for district level staff. It is designed to help trainers to plan and run a course
and provides case study and other material in support.
2.2 The layout of the Planning Guide
The Planning Guide follows the planning cycle. The planning cycle describes the series of
steps that planners go through in the production of a plan. These are:
• the collection of data about the area or people to be planned for. Some of these
data are statistical; other kinds of information can be obtained from people themselves
or panchayat or other bodies. All types of information may be needed;
• the analysis of data to find out what are the problems, opportunities and needs of
the area or people to be planned for;
• deciding upon the objectives of the plan. In other words, deciding what the plan
should try to achieve;
• reviewing and adjusting where possible district level programmes to enable

the strategy to be achieved;
• identifying new projects or schemes where there are clear needs and the district
has discretionary funds available;
• planning financial allocations to enable the plan to be put into operation:

• putting the plan into practice: helping concerned authorities to discuss the plan
and sanction it, breaking the plan down into action plans for annual programmes and
negotiating implementation with concerned departments.
7
Each chapter of the Planning Guide contains one or more of these steps.
The key to using the Guide is to work systematically through each step, following the
procedures in each chapter as closely as possible. Remember that each chapter contributes
to the one that follows it and it is difficult to take methods or procedures out of their context.
However, the circumstances under which plans are prepared vary widely and the planner
should be prepared to adjust his/her approach if necessary to suit the local situation.
2.3 The presentation of material on the pages of the Guide
Each chapter is laid out in the same way.
Firstly, it is divided into sections. Each section carries its own number, for example 3.3.
This is to facilitate reference.
The first two sections are introductory. The first, which is called Purpose of the Chapter,
introduces the user to the particular step or steps that the chapter deals with. The second
section, the Layout of the Chapter gives a breakdown of contents. The remaining sections
present the content of the chapter. Normally all the page is used; but where a procedure
which breaks down into a number of steps is being described, each step is shown separately,
thus - Step 1:
Lists of every kind are inset with each item prefixed by the symbol ▪. Sub-lists are further
inset with each sub-item prefixed by the symbol o.
2.4 Definitions
Unavoidably, a number of technical terms have to be introduced from time to time. When
it is not obvious from the Guide precisely what they mean, a definition is given in a box for
easy reference. To illustrate this, a definition for a District Plan follows:
Definition
District Plan
A District Plan describes what a district will try to achieve' over the medium term,
often five years, and how it intends to achieve it. A Plan usually contains an analysis
of the current situation of the district and particularly its needs and potentials, ft
should also contain a statement of objectives and an analysis of ongoing and new
schemes and programmes within the district's purview. It should be accompanied by
a financial plan and an action plan. These last two, which are operational plans, will
need continued updating.
8
Examples are given where practicable to illustrate the material, taken from experience drawn
throughout India. These are always prefaced by the terms for example or e.g. So, if the
Planning Guide is talking about poverty alleviation schemes, it could say:
for example the IRDP, TRYSEM and JRY schemes of the Central Government
or
e.g. IRDP
However examples are sometimes not enough, particularly where methods and techniques are
involved. So, the accompanying Training Guide provides exercises and case studies designed
to give additional practice in the techniques involved.
2.5 Matrices, tables and formats
This manual is based as far as possible upon the use of simple tables, matrices and formats
to collect and analyse information. This approach has been adopted for two reasons:
• most Government officers are familiar with them

• they lend themselves easily to computerisation.
When they are first introduced, the tables or formats are given in blank form which can be
easily copied for use. These can be identified by the heading Format and a number e.g.
Format 4.3
However, they are often shown used with data and in this case they will be headed
Illustration. The following illustration shows how financial figures could be entered into a
table of financial sources for the agriculture and allied sectors.
Illustration
Sources of funds for agriculture and allied sectors
Sources of Funds
(Rs lakhs)
Centre/ District Institutional Local Public
Sector mobil-
State finance enterprise
isation
Agriculture 120 60 1200 60 30
Irrigation 100 50 900 90 0
Forestry 50 25 10 10 0
Of course this is only an incomplete example and you should tucn to Chapter 7 for a
complete account.
9
2.6 How to use the Guide
This Guide is designed to produce a medium-term perspective district plan (approximately

five years) which can continually be updated. This perspective plan contains basic data about
the district, an analysis of its potentials, problems, needs and gaps, objectives in relation to
the foregoing and proposed adjustments to ongoing programmes and new schemes.
The Guide also shows how to prepare a financing plan which will take the above into
account. This financing plan, together with an action plan, will need to be done annually.
There are several rules to follow when using this Guide to prepare these plans:
Firstly, planning has to be done within the calendar of district operations,

Consequently, it is important to try to find out when plans have to be prepared by
and for whom, and work back from there to the various steps that have to be
followed.
For example, in Dehra Dun district in U.P, financial ceilings for
departments are notified at the beginning of October. The old style draft
district plan has then to be prepared in November for submission to the
State Government. If these dates were to continue, then it is clear that
the planner must work through most of the Guide in the first half of the
financial year to produce the district plan. Once a strategy has been
chosen and ongoing programmes analysed (see Chapters 4 and 5),
financial ceilings can then be taken into account in November when
preparing financing (Chapter 7) and action plans for the forthcoming year
(Chapter 8).
The early steps all require statistical data or consultation with departments,
panchayats or people. Arranging for the collection of data and organising
consultation all need to be planned well in advance. Remember too that
collecting information costs money and time can be wasted if requests for data are
excessive or respondents are asked vague or difficult to answer questions.
It is important to keep concerned functionaries and peoples' representatives at

district level informed about the progress of the plan. The process described in
this Guide clearly specifies when consultation is necessary: but it is also valuable to
seek opinions and guidance as frequently as possible from all involved. This
reduces the possibility that the district will treat the plan as something that has been
"cooked up" by specialists without informing all concerned and in a way that is
not helpful to district concerns.
Work systematically through the steps. If data or other kinds of information are not
available or are known to be inaccurate, it may still be possible to complete the
tables or proformas and come to a reasonable conclusion.
The resulting District Plan should be laid out as clearly as possible in the form
described in Chapter 8. Remember that it will need to be agreed by the
concerned authorities in the district, and Chapter 8 also lays out some advice on
negotiating techniques. Annual financial and action plans should be written
in a way that conforms with the District Plan as far as possible.
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CHAPTER 3
DISTRICT ANALYSIS
The first task in the preparation of a district plan is the collection of information about the
resources available in the district. Such an analysis is expected to show:
the current physical, economic and social situation

the diversities and disparities in the district
trends in the district economy
which will make it possible in a later chapter to:
assess the poverty and employment situation

identify development potentials and
gaps in infrastructural provision as revealed by secondary data.
Definition
Diversities and disparities
Diversities are those characteristics that help to distinguish bet\veen districts quickly
and effectively. For example a district may be differentiated by its predominant crop,
by features such as hill district, plain district and so on. Disparities refer to
inequalities between districts and are based on quantitative values, for example, high
density of population contrasted with low density or high income level contrasted with
low income level.
Definition
Infrastructure
The word infrastructure refers to facilities that contribute to development directly such
as roads, irrigation or power; or indirectly through education and health facilities.
The latter are sometimes called the social infrastructure or more simply social
services.
11
This chapter outlines the various steps involved in one practical and comprehensive approach
to district analysis.
Several stages are involved in carrying out a district analysis. Each stage is dealt with in this
chapter by separate sections as follows:
assembling a district data matrix for the current year (section 3.3)
analysing the district data matrix for block level disparities (section 3.4)
calculating trends for important variables (sections 3.5 and 3.6)
preparation of district summary tables (section 3.7)
preparation of base maps (section 3.8)
preparation of a district profile (section 3.9)
3.3 Assembling a district data matrix

Data about a district is available in a wide variety of forms. One of the simplest ways of
organizing data so that it can be analysed is the matrix.
Definition
Matrix from
A matrix, (plural - matrices) is a way of defining pieces of information visually and

mathematically.
The simplest way of thinking about it is in the form of a table. A table usually has a
classification or list down the left hand side and a set of variables along the top. A
variable is the thing being measured, e.g. population, man-days of employment
generated, distance of metallic roads.
For example we could tabulate the provision of schools by block with a classification
of schools along the top (primary, secondary etc) and a list of blocks on the left hand
side. Each cell of the resulting grid contains a piece of information, e.g. block
Patnagar contains 5 primary schools and 1 secondary school. Each row describes a
block in terms of a number of variables and each column describes inter-block
variations in a particular variable. This format of information can easily be used in
calculations of different types of aggregate measures, e.g. how many primary schools
are there in the district; how many primary schools feed a secondary school?
All of the matrices we will deal with in this section are in table form. So why not call
it a table ? The answer is that many tables will follow later as a way of analysing the
data and there is a strong case for a special term to describe the original format in
which data is collected.
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There are several steps in preparing the district data matrix.
Step 1: collect the data necessary under four headings:
land, agricultural and allied resources

human resources
infrastructure and services
industry
Most of the following information can be obtained from the concerned district offices or the
District Statistical cell. Other information may be taken from the appropriate State level
department or State corporation head office. The Census is an important source of population
data. In addition to demographic data it gives useful information on infrastructure and
services found in the village and town directory of the District Census Handbooks.
Data should be collected not only for the current (or most recent year) but also for previous
years. Thus, one matrix will contain information relating to one point of time. Exactly how
previous years' information should be used will be discussed later.
What data should be collected ? One of the great weaknesses in the past has been the
tendency of planners to collect too much information. Plans have been buried under a flood
of data, much of it irrelevant to the task of deciding what to do.
There is a golden rule, sometimes called the need-to-know principle. This principle states
that we should only collect data if:
we are reasonably certain it will be used in the analysis

we need the data in order to explain the plan to others.
Obviously, it is difficult to be exact about what is needed without actually getting involved
in the process. So, the following list is offered as a guide to start with. It shows what sort
of data is needed and why it is important. District planners should treat it with flexibility,
adding or omitting items from it if necessary:
heading 1 - land, agricultural and allied resources:
o land - total area of the district, net cultivated area, pasture, current
fallows, forested area, wasteland. This data will show whether there is
room for the expansion of cultivation and where.
o number of land holdings - subdivided into different size classes. This

data will show the degree of inequality in land distribution and average
size of land holdings and what kind of agricultural programmes are
likely to work best.
o cropping pattern and production - gross cropped area, percentage

of double/multiple cropped area, area and output of selected main
crops. This data will be used to analyse trends in production in a
later section.
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o livestock - number of buffaloes, cows, goats and pigs: quantum and value
of production, particularly dairy.
o land, water and other natural resources - adversely affected by

development; area affected by salination, degraded forest, falling water
table, etc. This data will be used to assess environmental problems.
heading 2 - human resources
o settlement and population - number of towns and inhabited villages.

number of gram panchayats, population sub-divided into rural, urban, SC/ST
population and density of population. This data will be used to identity trends
from which the demand for services can be estimated.
o employment - subdivided into cultivators, agricultural labourers, household

industries, services, industrial and other workers.
o poverty distribution - subdivided into numbers beneath the poverty line

and those classified in extreme poverty. This data can be used to find out
trends in the incidence of poverty.
heading 3 - infrastructure
o drinking water supply - protected/piped water supplies, handpumps, other

sources. This data can be used to identify further needs for drinking water.
o irrigation - potential groundwater resources, net irrigated area, mode of

irrigation (eg number of tubewells, dugwells, tanks and length of canals). This
data will show the current level of irrigation and whether there is possibility
for expansion.
o transport and communications - length of metallic, non-metallic and

kutcha roads, length of railway track, number of post and telegraph offices.
This data can be used to show whether there are any obvious gaps in
provision.
o banking facilities - number of banks, subdivided into commercial,

cooperative and regional rural banks.
o cooperatives - broken down into primary agricultural credit societies (PAC)

and farmers' service societies (FSS).
o markets - regulated markets, wholesale and primary markets, mandis and

hats.
o health services - district hospitals, primary health centres, subcentres and

dispensaries. This data can be used to show whether there are any obvious
gaps in provision.
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o educational services - primary schools (lower and upper), secondary
schools, colleges and vocational training institutions. This data can be used to
show whether there are needs for setting up schools or other institutions.
o women's and children's services - mahila mandals, balwadis, anganwadis.
heading 4 - industry categorised by sectors. Show the number of firms in each

sector and if possible employment. This data will be used in subsequent trend
analysis. Classification into the following sectors is recommended:
o forest-based industry
o mining and quarrying
o medium and small scale industries (SSIs) including household, cottage,
khadi and village handicraft industries
o construction activities
o trade including retail and wholesale enterprises o transport and
communications including local bus and taxi operations o services
including administration, banking, education, health and
sanitation.
Step 2: construct the data matrix forms. The planner will need to construct four of these,
one for each data heading e.g. land and agriculture. It is wise to use large sheets, folded if
necessary.
The size of each matrix varies slightly depending upon how many blocks and variables need
to be accommodated.
The number of rows depends upon the number of blocks in the district. For
example Kurnool district in Andhra Pradesh has 16 blocks. Therefore allocate a title
row, 16 block rows and a district summary row i.e. 18 rows.
The number of columns depends upon the data heading. As a guide allow the
following:
o matrix 1 (land, agriculture and allied activities) - up to 30 columns
o matrix 2 (human resources) - up to 20 columns
o matrix 3 (infrastructure) - up to 30 columns
o matrix 4 (industry) - up to 20 columns.
but remember that this may need to be adjusted to the requirements of the particular district.
Format 3.1 shows how the matrix should be laid out for the first five variables of the land
and agriculture data matrix in the case of a small district with five blocks.
15
Format 3.1
Land and agricultural resources matrix
net
total
cultivated pasture fallows forest waste
block name area
area (ha) (ha) (ha) (ha)
(ha)
(ha)
district
total
Step 3: enter data into the appropriate columns for each block.
In some cases this is straightforward. However in other cases it should he noted that some
variables such as population, workers in different sectors, etc. cannot be easily entered for the
current year. This is because a large part of this data would come from census data. Consequently
they must be shown with the appropriate year clearly identified.
Always remember to sum district totals at the end of each column.
The outcome of this stage of the work is a series of four matrix formats which show
blockwise the most important planning data about the district.
This is the raw material upon which the district plan will he based.
3.4 Identifying block level disparities
The next stage of the analysis involves using the district matrix to identify disparities between
blocks. Obviously there will always be differences between the blocks in a district: some will have
higher populations, others will be more fertile and have higher agricultural productivity.
Sometimes however a block may have done badly because:
its natural resources have still to be fully exploited
it has not yet received a full range of government services
it lacks the infrastructure needed to exploit its potentials
it has lagged behind in the provision of social services, e.g. health and education.
16
The simplest approach to the measurement of disparities is to compare each block's
performance to the average for the district. If it is below the district average, then there is a case
for finding out why and whether the district plan should attempt to rectify matters. In many cases of
course there may be good reasons for the disparity, but it is important to establish the cause.
The following procedure involves the preparation of block level disparity tables for each of the
variables in the district matrix.
Step 1: prepare the forms for block level disparity tables

One of these should be prepared for each block.
The format for these (see Format 3.2) is as follows:
basic data for the block and district is headed at the top. This is here for the sake
of convenience in calculations and can be dispensed with if necessary.
one column is allocated to each of the variables of the district data matrix. Four
are shown here. These might be population or the number of primary schools within
the district.
the first row is used for the block level data for each variable, e.g. total children
enrolled in primary school in the block.
the second row is used for the district total.
the third row is used for blockwise average. The blockwise average is calculated
by dividing the district total by the number of blocks.
the fourth, fifth and sixth rows are used to calculate disparities. There are three
kinds of disparity that are relevant, and the planner must use his judgment to decide
which to calculate. In some cases more than one measure is useful.
o the numerical disparity is the difference between the block data and the blockwise
average for variables that can be counted, e.g. area, population, number of cattle,
number of dugwells.
o the percentage disparity per unit area relates the data to the area of the district and
block respectively.
o the percentage disparity per unit population relates the data to the populations of
the district and block respectively.
17
Format 3.2
Block disparity analysis form
District name Block name
Number of blocks Area (ha) Area (ha)
Population (lakhs)
variable 1 variable 2 variable 3 variable 4
block data
district total
blockwise
average
numerical
disparity
disparity per
unit area (%)
disparity per
unit of
population (%)
Step 2: fill in the data and calculate disparities
begin by entering the appropriate block and district level area and population data.
then enter the variable names from the district data matrix.
enter the block data and then the district total from the district data matrix:
calculate the blockwise average by dividing the district total by the number of blocks.
calculate the numerical disparity by subtracting the block data from the blockwise
average. Show this with the appropriate plus or minus sign.
calculate the percentage disparity per unit area by the following formula:
percentage disparity per unit area =

(block data/area of the block) x 100)/(district total/area of the district)
calculate the percentage disparity per unit population by the following formula:
percentage disparity per unit population =

(block data/population of the block) x 100)/(district total/population of the
district).
18
This procedure is illustrated by an example from Bidar district, Karnataka:
Illustration
The use of Format 3.2
Block disparities in public services
District name: Bidar Block name: Aurad

Number of blocks: 5 Area (ha): 1224
Area (ha): 5458 Population (lakhs): 2.1
number number number number post
primary health commercial offices
schools centres banks
block data 8 8 205 43
district total 55 40 976 176
blockwise 35
11 8 195
average
numerical -3 0 + 10 +8
disparity
disparity per 109

64 89 88
unit area (%)
disparity per
unit
population 88 118 124 143 '
(%)
What does this table show ? The disparity indices of Aurad block imply that it lags behind
in terms of primary school facilities. However it is well above the district average in facilities
like post offices and commercial banks, particularly so when these are compared to
population size.
3.5 Constructing tables for previous years to enable trends to be analysed
Data collected over a number of years is essential for analyzing future trends in agriculture.
human resources and the development of infrastructure. Is agricultural output increasing and
where? Are more people going below poverty line ? These are the sort of questions that can
be answered through the analysis of trends.
19
Definition
Trend
A future trend is a prediction of the change in a variable, e.g. wheat output or number of
children enrolled in primary school. This is often based on information about previous years.
Using the golden principle of need-to-know we need first to decide what trends are
important. This is covered in the first step which follows:
Step 1: decide what trends need to be predicted.
Within the areas of responsibility of district level authorities (including those functions transferred
to panchayats and municipalities by the Constitutional Amendment) a number of trends seem to be of
particular importance. These are:
trends in agricultural output especially for main crops. This should be examined
both in terms of the area under each crop and actual output.
trends in the nature of industrial development.
trends in population growth. This should be divided into urban and rural
population.
trends in employment.
trends in poverty.
trends in environment.
Before working out trends however, it is important to understand some of the limitations inherent
in the method and the data available.
Agricultural output: while figures for this are usually readily available, it should be
remembered that estimates for some crops (notably subsistence crops) are rather unreliable. Output
figures for any one year tend to be affected by rainfall and (sometimes) the availability of
inputs. Consequently, it is wise to choose figures for years that are as "typical as possible" or are
not affected by unusual fluctuations (the concerned department will advise on this).
Remember that trends in agricultural output tend to be rather difficult to interpret, at least in
the long run. This is because:
20
unlike industrial output there are resource and technological limitations on
increases in production. Actual trends in production may well tail off and calculations
can easily over-estimate performance.
trends tend to be interactive: that is, increases in one crop ultimately have an
effect on others in that it takes over their land and labour inputs. This can actually
emphasise trends in the long run.
Industrial structure and output: data on the number of firms in a district is usually
available with the District Industrial Centre (DIG). Many cottage, handicraft and small scale
industry firms will have received support from Government programmes or State
corporations, and data will be available. However, it is inevitable that some firms,
particularly household level ones, are not covered by the statistics.
Population trends are usually based upon the decennial Census figures. Other important sources
are the National Sample Survey (NSS) and an innovative system called the Sample Registration
System (SRS) which collects on a sample basis births and deaths,
Employment trends are difficult to measure. This is due to several reasons:
while some individuals are permanently in wage employment, others move in and
out of the wage economy as opportunities permit. This movement is often seasonal.
it can be difficult to distinguish work or economic activities from household

activities in rural areas.
There are several sources for these types of data. The DIC in the district is one. Another approach
is to use the Census and particularly the District Handbook (village and town-wise primary census
abstract). This will give employment figures by categories.
The 1971 Census used nine categories of employment pattern but these were reduced in 1981 and
expanded again in 1991. The net effect of these changes for analysis can be summarised as follows;
for the following categories, the 1981 and 1991 Census figures must be used as a
basis for trend estimation:
o cultivators (category I)
o agricultural labourers (category II)
o household industry (category Va in 1971, category III in 1981)
o marginal workers.
for the following categories, the 1971 and 1991 Census figures must be used:
o workers in forestry, livestock, fishing, hunting, plantation and allied

activities (category III)
o workers in mining and quarrying (category IV)
o workers in manufacturing other than household industry (category Vb) o
construction workers (category VI)
o workers in trade and commerce (category VII)
21
o workers in transport, storage and communication (category VIII)
o other services (category IX).
Trends in poverty in the district. The important measure of this is the number of families
below the poverty line (see definition below). The District Rural Development Agency
(DRDA) will normally have this information. However, much of it can be out of date
because it depends upon surveys carried out in the 1980s and subsequently added to in a
piecemeal fashion. The definition of the poverty line has also been altered from time to time.
It is necessary, therefore, to update this information, to start with by Rapid Rural Appraisals
using the current definition of poverty. This is best done at village panchayat level and
collated at block level.
Definition
The poverty line
The poverty line is a measure of a consumption level of goods and services. If a person
or family consume less than this level they are considered poor. In India, the poverty line is
based upon the idea of a basket of minimum needs for an individual. This basket is broken
down into food and non-food items. An individual's minimum need for food is computed on
the basis of a calorific requirement - currently 2100 kilocalories per day in the rural areas and
2400 kilocalories per day in urban areas. Non-food needs are identified with the help of NSS
data. Both food and non-food needs are then converted into a cash equivalent. This is
currently (1995) Rs 540 per capita per month for rural and urban areas combined together.
Trends in environment in the district. A number of measures are required for accurate
identification of environmental change, whether this be soil erosion, salination of soils, agro-
chemical pollution of water courses or atmospheric change. Usually the bench-mark data are
not available. In consequence indirect assessment may have to be relied upon; otherwise
damage may reach catastrophic proportions before action is taken.
direct measures such as soil loss quantities measure the variable itself while the
indirect indicator of the same variable might be a decline in crop yield. In
the
absence of records the statements of local residents or affected persons may be
taken.
expert opinion from both concerned line departments and from relevant scientific
institutions or informed voluntary bodies may be consulted.
22
Step 2: prepare a table for earlier years for selected variables
The district data matrix will give us all the data we need on the current situation. However,
most methods of calculating trends require that we obtain information for earlier years. The
rate of change between those earlier years and the present provides the basis for a prediction of
the future.
Consequently, the next step is to gather these data for earlier years and plot it. Since only five
trends are involved, the amount of data required is relatively less and we can use a simple
table (see Format 3.3). One table per trend will be adequate.
Which previous years should be chosen ? Some data is only available for years widely
spaced apart for example the Census which is only taken every ten years (the last was in
1991). Consequently, it is best to use quite a wide span between the years chosen. One
recommended approach would be to prepare data matrices for about five years ago and about ten
years ago. The reason for being approximate is that it is not essential that the same years be
used for each variable - they can be mixed a little.
The layout of the table resembles the district data matrix as in section 3.4 above, that is,
blockwise on the left and variable on the top. However, it is much smaller and simpler.
Format 3.3 below is laid out for two variables (which could be staple crops, say wheat or
rice) entered for two time periods t1 and t2 (which could be 1988 and 1993 or any other two
years' recordings available). It does not matter if figures are only available for different pairs of
years (for example 1987 and 1993 for wheat, 1988 and 1993 for rice) - the trends are
calculated separately. The format is laid out for three blocks and a district total is also
entered.
Step 3: enter the data
This should be done in the same way as in the district data matrix.
Format 3.3
Trend data table

block name variable 1 variable 1 variable 2 variable 2
for tl for t2 for tl for t2
district total
23
3.6 Analysis of trends
A first rule is that, if a forecast has been done for the trends in question by some competent
authority, then it should be used. Examples of competent authorities include:
national level bodies, e.g. Indian Council of Agricultural Research (ICAR).

Central Arid Zone Research Institute (C AZRI) , National Institute of Rural
Development (NIRD)
universities, agricultural universities
concerned State departments, e.g. agriculture, small scale industry, employment
reputable research institutions.
If such forecasts are not available, the planner must do the work himself/herself.
By the end of section 3.5, the planner should have data for at least two different years for
the trends under study. These figures must now be used to forecast a future date, usually five
or ten years distant.
There are two different methods, one rather more complicated than the other, that can be
used.
forecasting by simple extrapolation (method 1)

forecasting by compound rate of growth calculation (method 2).
Method (1) Simple extrapolation
Simple extrapolation takes the rate of change between the two or more year for
which data is available and projects it forward.
Say that production of wheat in a block in 1986 is W86 and in 1991 is W91. Then the
percentage rate of change over five years is given by:
(W91 - W86)/W86
The same methods can be used for other variables.
Method (2) Compound rate of growth
Another method is to apply the compound rate of growth formula.
Say that the population of a district in 1981 is PS1 and the population in 1991 is Py|, r
is the annual growth rate over the period 1981-1991 and t is the number of years to
be forecast.
Then P91 =P81 (1+r) 10
and r in this case can be worked out by:
r = antilog ((log P91 - log Pgl)/10) - 1
24
The following illustrations apply these methods to data from Midnapore district in West
Bengal.
Illustration
Forecasting population growth by extrapolation
Assuming the population figures for Midnapore district in West Bengal in 1981 and 1991 to be
674,796 and 834,890 respectively, the population for the year 2000 can be obtained by:
r = (834,890 - 674,976)/674,796 = 0.237
This is an annual rate of 0.237/10 or 2.37%. This can be applied very simply to the 1991 figure
of 834,890 by multiplying it ten times by the coefficient 1.0237.
This yields a 2001 forecast of 1,032,758.
Illustration
Forecasting population growth by compound rate of growth formula
If the 1981 population of Midnapore was 674,976 and the 1991 population was 834,890 then:
r - antilog ((log 834890 - log 674976)710) - 1

r = antilog ((5.9217 - 5.8293)/10) - 1
r = antilog(0.0924/10) - 1 = 0.021 p.a or 2.1%
Therefore if we multiply our 1991 starting figure of 834,890 by 2.1 % p.a we get a 2001
estimate of 1,027,748.
Both methods have two advantages:
they can be applied to the variable as a whole or broken down by sex or urban/rural
division. Breakdown is particularly useful in the latter case because in many parts of
India the urban population is increasing faster than the rural.
they do not depend upon any assumptions about fertility, mortality or migration.
These latter depend in turn upon an effective civil registration system and
unfortunately (although the system is in place) many people do not get births or deaths
registered.
25
3.7 Preparation of district summary tables
The next stage is to prepare district summary tables. These should be prepared separately
for:
the current district situation. The data here can he taken from the district data
matrix and should cover the following variables:
o land use: irrigated, non-irrigated, fallow, forest and waste

o agricultural and livestock production by main crop or livestock product
o industrial firms by number, by size and sector
o employment by sector
o poverty in the district
major district trends. The data here can be taken from the trend analysis in
section 3.6.
In the case of districts with large number of blocks the summary tables may become
unwieldy. In such situations it is worthwhile to group together a number of blocks based on
similarities in their characteristics, for example, tribals blocks, hill areas, or any other
suitable characteristics.
3.8 Preparation of base maps
The purpose of the base maps is to represent basic information about the district in a way
that is simpler and easier to understand than text or tables.
Only certain kinds of information can be shown in this way. Nevertheless, the details of
relief, drainage, underground water, soil types, vegetation, population distribution,
distribution of infrastructure such as roads and railways can all be more effectively and
efficiently represented in maps. A map shows clearly where things are and how they are
related in terms of location, distance and distribution throughout the district. These are
questions that are bound to be raised when discussing or negotiating a plan with
representative bodies or concerned individuals.
There are several steps in preparing base maps.
Step 1: Obtain the right 1:50.000 map sheets for the district. These may already be present
in the district headquarters. If not, they may be obtained from the Survey of India unless
restricted areas are covered in which case special permission may need to be taken. If
1:50,000 sheets are not available, it may be possible to obtain 1:100,000 scale sheets which
can also be used.
26
Definition
Map scales
Maps are drawn in a number of scales. Scale is the relationship between the actual distance on
the ground between two points and the representation of that distance on the map sheet. For
example the distance in a straight line between Theog and Kufri in Himachal Pradesh is about
10 km. On a 1:50,000 map sheet the measurable distance between them will be shown as 10,000
(the real distance in metres) divided by 50,000 (the map scale) which equals 20 cm.
Step 2: Decide what the base maps are going to show. Probably the most important things
from the point of view of district planning are:
relief and drainage

land use
settlement pattern
roads, railways
public services i.e schools, hospitals etc.
administrative boundaries
population density
areas of particular environmental vulnerability
Step 3: Construct a working map for each of these using the 1:50,000 sheet. It will be an
advantage if a technically qualified person (draughtsman, tracer) does this. Otherwise it can be
done by the planner.
Tracing paper or tracing film is the easiest way to do this. Take the 1:50,000 map as a
bottom sheet and lay an equivalent size of paper or film on top of it. Then construct working map
copies as follows:
relief and drainage - copy the boundaries of hill areas. It may be useful to use a
contour (line connecting all points of equal height) as a way of defining such areas.
Rivers and streams can be copied directly. Also include canals and other major
irrigation works.
land use - a simple breakdown into irrigated land, dry cultivated land, waste and
forest is all that is usually required. Cultivated and wooded areas can be taken from
the survey sheet but the other information should be taken from the concerned
department, usually the Department of Agriculture.
settlement pattern - may be taken from the survey map but remember that the
actual survey may have been done some years ago and there has been subsequent
growth.
roads, railways and other transport facilities - may be taken from the survey sheet
and updated it" necessary.
27
public utilities and services - may be taken from the survey sheet and updated if
necessary. Remember to include a wide range of facilities including:
o hospitals and clinics

o schools, colleges and non-formal education (NFE) centres
o panchayat buildings
administrative boundaries - may be taken from the survey map but should be
checked with the concerned authority. Include block boundaries if possible. The State
Election Commissions for Panchayats and Municipalities would be able to provide
this.
population density - may be calculated for each block with reference to the Census
of India records. Some form of shading or cross-hatching is a useful way of
representing density.
environmental vulnerability - should be identified for particular variables by

consulting concerned authorities, voluntary organisations or individual experts.
Step 4: Once working maps have been produced, these need to be reduced and printed on a
usable scale so that they can be read together with the plan document. If the plan is to be foolscap
in size then a single foolscap map might be the right approach. If metric sizes are to be used, A4
(or possibly A3 doubled over) will be the right size. Reduction and printing of the maps can now
be done by many technical departments (e.g PWD or Irrigation) or by commercial agencies.
The result of this section is a series of maps showing the main features of the district as a whole.
3.9 Preparation of district profile
Using the outputs of the previous stages, a short (three page) district profile, should be
written.
28
Definition
District profile
A district profile is a brief but comprehensive account of a district's geography, economy and
social structure. It has two purposes:
it gives readers new to the district the necessary background to enable them to understand the
district plan and the strategy and detailed proposals it contains
it acts as a refresher course to readers already familiar with the district.
The layout and length recommended for this profile is:
• introduction to the district (150 words)

o location in the State
o administration
o basic physical features, e.g. hills, rivers
• natural resources (150 words)

o mineral and similar resources
o water resources
o forest resources, fisheries
• human resources (200 words)

o population total and composition o patterns of
population distribution
• land and agriculture (200 words)

o land use and land ownership
o main crops
o livestock if important
• industry (200 words)

o major industries
o small scale, including khadi and village industry
• infrastructure (100 words)

o national highways, other highways and district roads, rail etc o educational
and health facilities
The style of a district profile will vary with authorship but a simple, readable and interesting style has much
to recommend it. The first illustration is taken from a district profile prepared for Varanasi district in U.P
and shows how the reader's interest can be captured rifht from the beginning of the profile. After
three paragraphs, the reader knows a little about the
29
history and importance of Varanasi city, the location of the district and the district's administrative
structure.
Illustration
District profile - the introductory section
Varanasi city has the pride of place in India's cultural heritage. The district was named after the capital
town Varanasi. It is one of the oldest living planned cities in the world. Varanasi epitomises the history of
human settlements in the middle Ganga valley.
As the city is situated between the rivers Varuna and Assi it had been renamed as Varanasi from it earlier
name Benares. The district is located in the eastern part of U.P and is surrounded by Bihar state in the
east, district of Allahabad in the west, Mirzapur in the south and Jaunpur together with Ghazipur in the north.
The district is spread over an area of 5.091 sq. km. of which 4,962 sq. km. are rural.
Administratively the district is divided into 6 revenue sub-divisions called as tehsils and 22 development
blocks. The total number of villages in the district was 4,700. The villages are organised under 2,194 gram
sabhas. There are 15 towns including the city of Varanasi.
from: Self-employment for poverty alleviation: case studies in Uttar Pradesh eds B.K Thapliyal and
Om Prakash NIRD, Hyderabad (DAG-NIRD series 5)
The second illustration on the following page is taken from a profile of Bidar district in Karnataka and
shows how a conclusion can be handled. Note how it describes in turn the potentials of the district - industry,
agriculture, minerals - and, equally important, the implications of these points for government action. The
authorities should "identify appropriate cost-effective technology for dryland agriculture"; "Government
should make land available ... to start new industries". These are very general policy points, but they
serve to move the reader on from thinking about the data to actions to be taken.
3.10 Conclusion
This chapter has shown how the groundwork of district planning is performed. By the end of it the planner
has:
a comprehensive district data matrix that can be updated as necessary (and can be computerised
when facilities are available).
analyses of disparities in provision between blocks for a range of important variables.
30
calculations of likely trends for five important variables including output,
employment and poverty.
a short district profile, supported by summary tables. This will be important in

explaining and negotiating the plan with the concerned authorities.
a series of base maps to support the profile.
Illustration
District profile - the concluding section
Notwithstanding various problems and constraints, Bidar district has some potentialities
which should be exploited through necessary policy actions. For instance, a district once declared a
"no industry district" has demonstrated considerable industrial growth over the years. In order
to provide gainful employment to the people, especially in rural areas, there is need to
popularise planned development of dry land agriculture and especially through watershed
programmes wherever possible. There is a lot of scope for introducing new programmes to promote
agro-forestry, silvi-pasture and to develop uncultivated lands as common property resources.
Furthermore, it is imperative for the authorities to identify appropriate cost-effective technology for
dry land agriculture and strengthening marketing infrastructure for agricultural inputs and outputs.
The available resource endowments, such as agro-horticultural products and minerals, are not
adequately exploited for industrial manufacturing and there is ample scope for small scale
industries. A cluster approach can be adopted to identify potentials in this regard. More
importantly, there is a demand from entrepreneurs that Government should make land available to
them at reasonable prices to start new industries (current land values are quite high).
In addition, what is most important is that there is a need to organise awareness camps since, in the
district and indeed the region as a whole, there is a lack of awareness about current programmes,
poor mobilisation of socially disadvantaged groups, poor participation of women and absence of
community participation in development programmes. The need is to educate the general public
with regard to various measures that the Government has introduced to improve living conditions
and for the all round development of the district as a whole.
31
CHAPTER 4
DISTRICT OBJECTIVES
This chapter looks at the way in which the district plan's objectives can be identified.
Definition
Objectives
A plan's objectives are the changes or developments it is trying to achieve. Typical district plan
objectives include poverty alleviation, employment, enhanced agricultural production and so on.
Many of these are already national and State objectives but the district plan should be specific
about the priority it attaches to each and whether there are any additional purely local objectives
to be added. For example employment generation is important in Andhra Pradesh as elsewhere
but the plight of the unemployed handloom weavers in certain districts might justify particular
priority.
Objectives can be identified in the context of:
potentials and opportunities

problems/gaps and needs
What do these words mean?
Definitions
Potentials, opportunities, problems, gaps and needs
All districts have a particular endowment of natural resources, human resources and
infrastructure. These provide potentials or opportunities for future development. For example,
encouraging farmers to adopt new crops or set up in business to serve new markets are ways
of exploiting opportunities.
People experience problems, some short lived and others of long duration. For example, lack
of drinking water in a village is a problem. Problems can be expressed as gaps in provision.
Gaps emerge primarily from the analysis of the district or block situation which is often done
on the basis of information from the district analysis (Chapter 3). Problems can also be
expressed as needs. A request for a dugwell is a statement of need.
32
The rest of this chapter is divided into seven sections as follows:
identification of potentials (section 4.3)

identification of problems and gaps (section 4.4)
identification of local needs (section 4.5)
identifying problems, needs and gaps through consultation (section 4.6)
prioritising problems, gaps and needs (section 4.7)
how to identify objectives (section 4.8)
conclusion (section 4.9)
Sections 4.3 to 4.6 are designed to help you find out what are the potentials, problems, needs and gaps of
your district. A range of procedures are described to help you do this. As you identify each potential,
problem etc, it should be entered into the left hand column of the most important Format in this
chapter - Format 4.1. There is also room for you to show how many blocks or panchayats actually
experience this particular potential, problem etc. When you draw up Format 4.1, leave a good number
of rows and be prepared to add more if necessary.
Format 4.1
Cumulative listing of potentials, problems needs and gaps

Potentials, problems, needs Number of blocks Number of panchayats
and gaps experiencing experiencing
Data for the completion of the table can be obtained from three sources: the analyses recommended
by Chapter 3, information from panchayat institutions and direct crosschecking from field study
4.3 Identification of potentials and opportunities
Chapter three of this manual provides instructions on how to complete a district data matrix (section
3.3), block disparity tables (section 3.4), trend estimates (sections 3.5 and 3.6) and district summary
tables (section 3.7).
The first step is to use the district data matrix to identify resource potentials. These are unused or
underused agricultural or other resources which new developments may use. The
entries under heading 1 (land, agricultural and allied resources) will indicate whether there is room
for the expansion of cultivation or livestock rearing. Entries under heading 3 (infrastructure) will
indicate whether there is the possibility of expanding irrigation. Entries under heading 4 will indicate
what mineral resources are worked in the district and advice should be taken on whether there is
potential for expansion. Information should also be taken if available from the district summary tables
(3.7) and the district profile (3.9). Enter all identified potentials and opportunities into Format 4.1.
Concerned departments should also be consulted.
The next step is to identify the lead sector of the district. This will give the planner a lead to those
activities that need encouragement and possibly supporting investment in the development of the
district.
Definition
Lead sector
The lead sector(s) of a district economy is that sector which either:

• dominates an economy in such a way that it provides the large pan of output
and employment. For example fruit production in many pans of Himachal
Pradesh.
• is growing rapidly in such a way that it contributes more than other sectors
to the expansion of output and employment. For example, industry in districts
around Delhi like Ghaiiabad or Faridabad which has grown dramatically and
has contributed more than other sectors to employment creation and output.
The lead sector is important for two reasons.
Firstly, if it dominates the district economy, supporting investments (for example,

expansion of milk collection centres in a dairying district) will have an immediate
effect on output and employment. Care needs to be taken however that the supply of
these investments and services has not reached saturation.
Secondly, if it is the fastest growing sector in the economy, then this probably
reflects deep seated trends in the exploitation of resources, the application of
technology or the growth of demand. Supporting investments in this sector will
capitalise upon these trends and give maximum return to public investment.
To identify the lead sector in the district economy, two sets of tables are needed:
the district data matrix for

o land and agriculture
o industry
o human resource
34
the trend calculations
To identify the lead sectors Location Quotients (LQs) can be used. The location quotient for a
sector can be calculated to show concentration [LQ(C)] as well as to measure relative growth
[LQ(G>] as follows:
LQ(C) = percent labour employed in a sector in the block
-----------------------------------------------------------
and percent labour employed in that sector in the district
percent growth in labour in a sector in the block

LQ(G) = -----------------------------------------------------------
percent growth in labour in that sector in the district
Thus LQ values greater than one would indicate either increasing concentration of. or growth in, the
sector in question in a block.
Illustration
Location quotient calculation

Location Quotient for Concentration (LQ(C))
Blocks Sectors
agriculture and industry trade and others
allied activities commerce
Garbeta 86.51 2.25 4.61 7.61
Keshpur 83.91 2.75 4.52 8.76
Midnapore block 75.67 3.40 7.93 13.00
Midnapore District 82.97 3.40 4.80 8.83
LQ (C) Garbeta 86.51/82.97 - 2,25/3.40 = 4.12/4.80 = 7.13/8.83 -
1.04 0.66 0.86 0.81
LQ (C) Keshpur 83.91/82.97 = 2.75/3.40 - 4.52/4.80 - 8.76/8.83 -
1.01 0.81 0.94 0.99
LQ (C) Midnapore 75.67/82.97 - 3.40/3.40 = 7.93/4.80 - 13.00/8.83 -
block 0.91 1.00 1.65 1.47
The same methodology can be used to calculate the LQ(G). Once lead sectors have been
identified, enter them in the potentials column in Format 4.1.
35
4.4 Identification of problems and gaps
Problems and gaps could be identified by using the blockwise disparity tables carried out as
part of the district analysis in Chapter 3.
Step 1: identify disparities between blocks
To interpret the blockwise disparity tables, turn to the disparity row in each table.
the numerical disparity is not in itself significant, since many differences have
ready explanations. For instance, less health facilities may be expected where there
is less population. However it is a pointer to the two relative disparity measures.
the relative disparity per unit area tells us whether the block is above or below
the district average in terms of the area used or served. This is relevant to certain
kinds of variable, and particularly:
o land use
o infrastructure
o certain kinds of service where distance and access are important,
such as health and education
the relative disparity per unit population, which is probably the most important
measure of disparity, tells us whether the block is above or below the district average
in terms of the population employed or served. This is relevant to many kinds of
variable and notably:
o employment
o infrastructure
o services
In many (perhaps most cases), disparity per unit area and per unit population will point to the
same kind of shortfall, gap or over-supply. Use them all. The objective is to identify those
blocks where there are clear shortages of provision in relation to the district as a whole.
Once blocks and disparities have been identified, enter them into the list of problems, needs
and gaps in Format 4.1.
36
Step 2: identify environmental problems
Indicators of environmental problems have been recorded in the land, agriculture and natural
resources matrix (3.3) and have been analysed under trend analysis (3.5).
Environmental problems are usually side effects of productive systems such as intensive
agricultural cropping or sheep rearing.
Where an identified environmental problem is associated with the lead sector in any block, solving
this problem should be taken up as an objective for the block and district.
Check the lead sector identified for each block against the environmental problems noted for that block.
Where the lead sector is directly associated with an environmental problem this problem should be added
to Format 4.1.
Step 3: check of norms against provision
The block disparity tables will show if there are clear disparities in the provision of services (especially
roads, health, education and certain other public services). Blocks which appear to be undersupplied
should have their provision checked with reference to standard norms. Such norms have usually been
identified by Central Government.
Definition
Norms of provision
Central Government in respect of certain services has laid down minimum standards of provision
which State governments and district administrations should attain. Norms of provision may be found
in infrastructure (e.g. drinking water), health and educational provision. For example, one
educational norm is that primary schools should be constructed so that all children live within two
kilometres' walk. Wliilst the attainment of norms will take rime, they do provide a standard by which
gaps in provision can be identified.
Disparities with reference to norms should be entered into Format 4.1.
4.5 Consulting panchayat institutions in the district
The second major source of information from which objectives can be derived are requests from
panchayat institutions in the district. Under the 73rd amendment all States and districts will be
required to take account of the needs that are being expressed through the grass roots political
decision making institutions that are established under the various State acts.
37
This section lays out a procedure for complying with the 73rd amendment and actively consulting
and taking account of grass roots decision making institutions.
Consultation procedure
The following procedure is based upon the existing hierarchy of panchayats in most States (zilla
parishad, panchayat samiti and gram sabha) and their corresponding administrative officer(s)
(district administration, block development office and VLW/gram sevak).
The principles underlying the procedure are:
a standard proforma (Format 4.2) is used to record gram sahha requests and
opinions. Provision is made in this proforma for a village's own commitment of
resources in terms of money or labour input.
gram sahha proformas are aggregated and approved (or modified) by the concerned
panchayat samiti.
consultation takes place on an agreed calendar.
administrative officers at the appropriate level are responsible for ensuring that
consultation is carried out and the completed proforma submitted to the concerned
authority.
Format 4.2
Proforma for statements of need from Gram Sabhas
District .........................................
Block .........................................
Grama Sabha .............................................
Request (scheme, project Estimated cost (Rs) Reason for request Resources (financial/labour)
or asset) to be committed by Grama
Sabha
38
The procedure of consultation employs the following steps:
Step 1: the district planning functionaries prepare the proformas and ensure that they are approved
by the zilla parishad and that concerned district authorities are informed.
Step 2: the district planning functionaries send the proformas to block development offices. Block
development offices then ensure that they are transmitted to VLWs for communication to gram
sabhas. VLWs are responsible for ensuring that proformas are completed.
Step 3: VLWs then return the completed proformas to block development offices. Block offices
list the requests by sector and submit these lists to their panchayat samiti for approval or
modification.
Step 4: Block development offices then submit the sanctioned lists to district planners.
Analysing the results and listing the needs
The next stage involves analysing the results for their bearing on objectives. Remember that the
proformas must be retained since village requests must be taken into consideration in the adjustment
of existing programmes and the formulation of action plans.
The procedure is: take the list as received from the panchayat samiti and enter them into the
cumulative listing of potentials, problems, needs and gaps (Format 4.1).
Assume that the following requests have been received from the gram sabhas of two blocks:
Block A requests for 5 gravelled village roads (20 km), 23 handpumps for drinking water (in
villages without proper supply) and measures to reduce groundwater salinity in irrigation
wells
Block B requests for 3 gravelled village roads (12 km), extension of STC bus service to
village, 12 handpumps for drinking water (in village without proper supply), provision of
primary health centre (PHC) in village without proper medical facility and help with
reduction of flooding during the monsoon.
These should be entered into the first column of Format 4.1.
It is useful at this stage to compare the results of the consultative procedure with needs and
gaps identified by the analysis of the district data matrix. The existence of significant
differences or anomalies (for example many requests for drinking water supply) in the
analysis of current provision or block disparities suggests that the district is already well
supplied.
Anomalies of this kind may suggest a need for cross-checking of data at village level.
However, even without anomalies it would be advisable to cross check by a few field
visits/surveys.
39
4.6 Cross-checking data
The third source of information arises from direct consultation through field study. The
procedures in sections 4.5 and 4.6 will reveal evidence of many needs, gaps or problems.
The purpose of this section is to show how:
to cross-check on the validity of the data that backs this information. For example,
is the apparent shortage of public drinking water supplies compensated in local
practice by extensive use of private wells ?
to interpret the causes and effects underlying genuine needs. For example, is a high drop
out rate from primary schooling due to a lack of interest on the part of parents, or the
seasonal migration of families to distant places for work, or the inability of local schools
to retain adequately qualified teachers?
Cross checking should be carried out where there is reason to believe the quality of information
available through the census, district technical officers' returns, hospital records, etc., may be
inadequate. Reasons for inadequacy include
false or inappropriate data through weaknesses in classification (such as
smallholding migrant workers classified as landless), breakdowns in data collection
or recording, manipulations of information at any stage by interested persons, etc.
information that is technically correct (as in the above example of water supplies
and wells) but not an adequate description of the underlying situation.
Where such weaknesses are suspected, cross-checking studies should be done. Two
methods may be adopted for cross-checking:
formal survey
spot check
Cross checking method 1: formal survey
Where the information to be crosschecked is crucial to achieving the main objectives of the plan or it
is politically sensitive or it is particularly difficult to check, a thorough and scientifically sound
survey may be required. The techniques involved in a survey of this kind are outside the scope of this
manual. Consequently, the services of a reputable research institution or organisation should he
sought. This may in itself require approval from the district level authorities and funds allocated for
it.
40
Cross-checking method 2: spot check
Many suspected information weaknesses are best investigated on the basis of brief field visits. Such spot
checks while lacking full scientific rigour, can nevertheless provide valuable information to help
correct false impressions created by faulty data. The value of this information and its
persuasiveness will be enhanced hy taking care to ensure that the following steps are followed;
Step 1: decide how many places to visit and in which locations. Bear in mind the need to select
locations that adequately represent the nature of the information problem that you are addressing. Avoid
roadside bias.
For example to address a problem about the adequacy of information about drinking water
supplies for instance, select a number of areas in which anomalies are apparent and also visit
areas in which the information does not appear problematic, so comparisons can be made.
Step 2: decide who to talk to. In most cases non-officials as well as officials may be consulted. Care
should be taken to think out who are the interested as well as the probably well informed persons.
Consult all relevant categories of persons. Generally checklists will be most useful, but ensure that the
same issues are raised with each person.
Step 3: make field visits
Step 4: prepare report taking care to;
• state what information problem you have been addressing,

• what steps you took to ensure that the information collected is as accurate as
possible,
• what your findings have been,
• how you interpret those findings and what difference this makes to the conclusions
that you draw from the original data.
4.7 Ranking potentials, problems and needs
Having identified problems and needs and having cross-checked them it is useful to rank them so that
the objectives of the district plan are stated to reflect those priorities. The simplest way to prioritise the
needs and problems is ranking them on the basis of number of panchayats facing a problem and/or
expressing a need. These could be easily ranked and arranged in descending order of priorities
following Format 4.3.
41
Format 4.3
Prioritising potentials, problems and needs
Potentials, problems and needs faced by number rank

of panchayats
The analysis in this chapter has identified a number of different kinds of opportunity for
district development. These are expressed as potentials, problems, needs and gaps which have
been ranked according to their incidence of occurrence in the district. Before they can be
taken as possible objectives for policy they need to be converted into objectives.
To have an objective (see the definition on p.29) assumes that in some way an individual or
society is dissatisfied with the present situation and wants to change it into something new.
Consequently, an objective can usually be defined with reference to the current situation. For
example, if crop yield then the objective is to increase them. If there is a high dropout rate
in school, the objective must be to reduce the rate.
The easiest way to convert problems, potentials, etc. into objectives is to use Format 4.4.
This shows the problem list in the left hand column with priorities taken from Format 3. To
convert these to objectives, try to identify the opposite situation to the potential or problem
identified. This can usually be spotted by the verb doing, having, taking and its reverse. So, if
irrigation resources are available (not using), the objective must be to tap them (using). If
there is a need for drinking water (not having), the objective must be to provide it
(having).
Format 4.4 is laid out for four potentials, problems, etc. in this case. The right hand column
is used for the statement of objectives.
Format 4.4
Identifying objectives
Potentials, problems, needs and gaps Expressed as objectives
42
Note two important things. Firstly, getting the objective right involves stating the problem very
carefully. If you say that the problem is not, say. polluted drinking water but the incidence of
infant diarrhoea in rural villages, you are describing a problem in two different ways and this could
produce different objectives.
Secondly, note that an objective describes a destination. What it does not do is say how to get
there; one can travel to Delhi by bus, train or plane and each alternative has different cost and time
implications. Choosing a course of action involves thinking about the resources available, the time
taken to get results, the side effects and indeed many other implications: this subject is dealt with
later in the Guide.
The following illustration for Format 4.4 shows how objectives can be defined for four five common
problems in district planning.
Illustration
The use of Format 4.4 for identifying objectives
Potentials, problems, needs and Expressed as objectives

gaps
ground water available expansion of irrigation
135 villages lacking drinking water provision of drinking water in these villages
provision as per norms
less girls in school undertake measures to improve attendance of
girls in schools
pollution of river courses by reduce run off from farms to acceptable
agrochemicals in (specified) blocks proportions
poor bus service to (specified) blocks better public transport provision
4.8 Transmitting the rank ordered list to District Planning Committee and/or district level
Panchayat
The rank ordered list of potentials, problems, needs and gaps, re-expressed as possible objectives,
should now be taken back to the relevant democratic institutions for final prioritisation and
adoption as district development objectives. This may confirm the list as it stands as an order of
priority or it may lead to changes according to the views, judgements and commitments of the
leadership.
43
4,9 Objectives Statement
After approval the final list of objectives for the District should be prepared. Each objective should be
expressed in as precise a manner as possible, with a time frame and quantitative indicators so that the
performance of the district can be monitored. Typically, the statement of objectives could read as
follows:
expand tube well irrigation

expand employment creation schemes particularly in non-agricultural sector
improve low cost housing provision
improve access to drinking water especially hand pump supplies
improve levels of health awareness especially regarding child care
improve availability of lady teachers in village schools.
It should be noted that some objectives will require the development of new policies or programmes,
or revision of existing programmes. How to do this is addressed in later chapters.
4.10 Conclusion
By the end of this chapter the following stages should have been completed:
analysis of the district data matrix to identify opportunities, problems, gaps and needs
consultation of panchayat bodies and requests taken account of
field checking of data and causes of problems, etc., if necessary
construction of an objectives table for the district
CHAPTER 5
ANALYSIS OF PROGRAMMES AND SCHEMES
The purpose of this chapter is to help you
analyse current Government programmes and schemes within the district

find out what adjustments need to be made if they are to serve district objectives
better.
Government investment in a district largely depends upon departmental (sectoral)

programmes and schemes. These vary from infrastructural programmes (e.g. roads, drinking
water) to the provision of services (e.g. education, agricultural extension). Schemes targeted at
particular problems or groups of beneficiaries are also important (e.g. IRDP, DWCRA). State
Governments also invest through various programmes and schemes in a district depending
upon their resources. There are many such programmes, as for example Apna Gaon Apna
Kam in Rajasthan, Girl Child cradle scheme in Tamil Nadu, Ashray scheme in Karnataka, Zal
Dhara in West Bengal and so on.
Programmes and schemes have several important characteristics:
they are ongoing, that is the content of each programme or scheme does not
change a great deal from year to year
they are controlled by the State or Central Government, usually in the form of
a financial allocation or a delivery target (ie. x number of schools, y number of
beneficiaries) and a unit cost.
Consequently, decision making at district level depends upon the allocation of a fixed type
and quantity of resources to competing areas, locations or individuals.
The decision - who benefits - is sometimes made by the application of Government fixed
norms. More often, the decision about who benefits is made on political grounds or on
technical considerations.
Therefore planning at district level really involves making relatively small changes to ongoing
programmes and schemes. Central policies, norms, unit costs etc. will continue and will be a
framework within which these relatively small changes can be made.
However the room for change is likely to increase as districts and panchayats develop more
autonomy as a result of the new legislation. There is already limited room for modification
(within sectors) in some States and most States have some kind of minimal local
discretionary/untied fund. If the new legislation expands the range of choice open to the
district, this choice is likely to involve the ability to move funds more easily between existing
irogrammes and schemes.
45
Consequently the planner needs to be able to exercise this ability, identify adjustments, get them
sanctioned by the concerned authorities and ensure that they are included in annual action plans.
This chapter is divided into the following sections:
sources of data (section 5.3)

analysing a programme/scheme for consistency (section 5.4)
analysis of capacity for expansion (section 5.5)
analysis of block disparity (section 5.6)
analysis of linkage effects (section 5.7)
adjustments in programmes and schemes (section 5.8)
5.3 Sources of data
Modifying programmes and schemes successfully depends upon information about:
their objectives. These are usually Centre or State determined, often in the light
of wide ranging policies like poverty alleviation or universal primary education
current targets
physical and financial resource costs
past and current performance
Following is a list of the location and sources of various kinds of data available at district level:
programme objectives and guidelines are available with:
o the implementing agency at district level

o the planning section of the concerned implementing department at State level
o with the administrative department in the State Secretariat with the concerned central
Ministry if a central scheme.
programme targets are available at the levels given above. Physical and financial
targets are also available for blocks and village panchayats from the concerned BDO and
village level worker.
quarterly and annual progress reports are available at the block/district level.
Compilations of reports can be found in the statistical section of each department and also
with the concerned administrative department. Reports on central schemes can be
obtained from the appropriate implementing department and the concerned central
Ministry.
46
programme reviews and evaluations are periodically conducted by planning departments
at district level as well as the concerned departments at State or Central level. An
important source of information on the difficulties faced in the implementation of the
programmes and measures initiated to overcome them would be available in the minutes of
regular review meetings held at the District, State and Central levels.
5.4 Analysing a programme or scheme for consistency
All schemes and programmes planned and implemented in the district should fit as far as possible
district objectives. They should try to meet the needs and aspirations of its people and offer
solutions to the various problems faced by the district.
This section shows how each Central, State or Public Corporation programme or scheme can be
tested for its consistency with district objectives. It also shows how to pinpoint those areas
within a programme or scheme where adjustment or modification is needed if better consistency is to
be obtained.
Definition
Consistency
A programme or scheme is consistent when its outputs - education, employment, irrigation,

housing - match those identified to be locally important district objectives and unintended
environmental effects are avoided. It is difficult to imagine a situation in which any scheme or
programme would be inconsistent with broad national or State objectives but nevertheless it is still
possible for a programme to be out of step with local priorities as expressed by the district plan.
Therefore the first question is: does the programme or scheme fit district objectives?
To answer this we need to construct a table. This is done as follows using Format 5.1:
Step 1: list all the objectives of the district plan across the top of the table, and then list all the
programmes or schemes operating in the district. If the number of schemes is large, it may be
useful to construct separate tables for each sectoral area or department.
Step 2: indicate in the appropriate cell whether the programme has direct impact, indirect impact
or no effect at all on the objectives listed at the top. Use the letters D or 1 or leave the cell blank
to show no impact. Deciding whether there is a link between the programme and an objective is a
matter of judgment. However it can help to find out what the programme's own objectives are
(see section 5.2 above) or discuss it with the concerned officer at district level.
47
Definition
Direct and indirect impact
Direct impact means that programme output and objective are the same. For example, if the
district's objective is improved drinking water supply, the Accelerated Rural Water Supply
programme (Centrally sponsored) will have a direct impact.
Indirect impact means that the programme output will have a side-effect on the objective. For
example, if a district objective is employment, many State agricultural schemes will have an
indirect impact through their effect on the output and hence the demand for labour on farms.
Format 5.1 is set out to enable the consistency between four schemes/programmes and four
district objectives to be measured.
Format 5.1
Consistency table layout

scheme/ District objectives
programme objective 1 objective 2 objective 3 objective 4
This step may be illustrated for five Central programmes (JRY, Million Wells, IAY, etc. and
five district objectives (roads, drinking water, employment, etc.) as follows:
Illustration

Consistency table for central rural development schemes
Scheme/ Objectives
programme
roads drinking employment soil minor
water irrigation
JRY D D D
Million D D
Wells
IAY I
IRDP D D
DWCRA D
We end up with a listing of all the centrally sponsored programmes and schemes that have a
potential direct or indirect impact on our objectives. So, if our objective is employment, we can see
from the list above mat of the Centrally sponsored schemes, JRY, Million Wells, IRDP and DWCRA
are all possibilities for expansion.
5.5 Consistency with environmental requirements
Many schemes and programmes have some unintended side effects as well as intended benefits.
For example measures to increase agricultural production, such as the encouragement of
fertiliser application may have adverse effects upon the quality of water in rivers and upon fishery
production. Expansion of grazing for livestock can reduce forests cover. It is important to review
existing schemes in order to avoid side effects and conflicts of objectives. The following checklist
of environmental concerns (Format 5.2) may be used for this purpose (see also section 6.7). Taking
advice from the concerned departments if necessary, insert an X or make an appropriate comment
in a cell where a side effect is suspected.
Those schemes and programmes which do not have negative side effects may be taken to be
environmentally sound.
Format 5.2
Checklist of Environmental Concerns
Side effects
Upon water Upon soil Upon air Upon
Scheme/Programme
quality biomass
(forest, etc.)
5.6 Analysis of capacity for expansion
Centrally sponsored schemes are often subject to fixed district-wise allocations and norms of
provision. The same may be true of State schemes. Therefore the next question is:
can identified programmes/schemes be expanded if necessary ?
To answer this question, we have to find out whether the physical and, if necessary, the financial
resources exist for expansion. A series of questions in table format (Format 5.3) are used here. These
questions ask about the availability of resources of every kind to expand the scheme or programme.
They should be answered as fully as possible within the scope of the table. Examples of how the
questions work follow and there is also an illustration of the application of Format 5.3 to primary
education.
Does the concerned department have enough operating inputs? For example are
there enough seeds, pesticides, fertiliser in the case of an agricultural scheme to
expand the programme if necessary?
Does the concerned department have manpower available (both skilled and
unskilled) to expand the programme if necessary? For example, could PWD
expand an infrastructural programme without appointing an additional engineer.
Are the necessary local resources available needed to support an expanded

programme ? For example an irrigation programme cannot be expanded if there is
inadequate groundwater in the area in question.
Are there financial resources currently available to support expansion? For

example are there unspent balances or supplementary allocations available which
could be used or transferred to support the expansion?
Format 5.2
Checklist of Environmental Concerns
Side effects
Scheme/Programme Upon water Upon soil Upon air Upon biomass
quality (forest, etc.)
Illustration

Expansion of primary education in the district
Scheme/ Enough inputs Staff Local Financial

programme available ? resources resources resources
available ? available ? available ?
primary school Construction No provision in Commitments of No provision in
construction inputs available budget for construction budget
additional staff labour from
panchayats
50
teaching Can be locally Administrative Not applicable Aid grant
materials obtained staff only available
supply required
programme
NFE centres Centres have Locally Not applicable Aid grant
been identified obtainable available
The final step in consistency analysis is to list all programmes which are:
i) consistent with district objectives

ii) environmentally sound
iii) capable of being expanded, if necessary, and if the district makes financial
resources available.
The next step is to check how far the programmes identified will make a contribution to the
reduction of blockwise disparities. A block disparity table is used for this purpose.
Block disparities have been identified using Chapter 4. section 4.4, step 1. These should be
now entered blockwise on the left hand margin of Format 5.4. District programmes
and schemes taken from the consistency analysis (section 5.5) above should be entered for
each column. Then the impact of the programme upon the identified disparity for each
block should be entered with an x. Finally a disparity reduction score should be
calculated.
Format 5.4
Block disparity table
Block Scheme/ Scheme/ Scheme/ Scheme/

name programme 1 programme 2 programme 3 programme 4
etc.
disparity
reduction
score
51
This is illustrated for the impact of a selection of Centrally sponsored schemes on block
disparities. Schemes (IRDP, JRY, etc.) are entered in the columns and reported disparities
for each block in the rows. An X is inserted where a scheme is likely to have an impact upon
disparity, and then the disparity reduction score calculated by addition.
In this case we see that JRY has the maximum impact upon disparity since it will help
matters in three blocks and lead to improvement in village roads, the poverty line situation
and school facility. No other scheme/programme approaches this score.
Illustration

Impact of central schemes upon block disparities
Block name IRDP JRY IAY Million Accelerated
Wells rural water
supply
block 1 less drinking X
water
block 2 less village X
roads
block 3 high below X X X
poverty line
block 4 less school X
facility
disparity reduction 1 3 0 1 1
score
5.8 Analysis of linkage effects
When formulating a programme or scheme, its linkage with various other

programmes is generally overlooked with the result that many schemes fail to take
off.
52
Definition
Linkage
Programmes or schemes often depend upon inputs or services of several kinds from other
programmes: and in turn themselves contribute inputs or services to programmes.
These are sometimes called backward (from) linkages or forward (to) linkages. For
example, the expansion of IRDP milk cattle in a block depends upon the availability of
fodder, veterinary inputs and milk collection facilities provided by other programmes.
Without these linkages this particular IRDP scheme will fail.
This is particularly true in the case of whole blocks or districts where problems, objectives
and programmes are closely interrelated. Consequently, the nature of linkages between
ongoing programmes needs to be understood.
The following procedure is recommended:
Step 1: construct programme-to-programme linkage table
A linkage table should be constructed, following Format 5.5. This table lists all major
schemes/programmes in the district along both axes:
Each programme can then be given an interconnectivity score calculated by the number of
linkages shown in the table. Those programmes with highest linkages with other programmes
should be given priority: in the illustration, supply of HYV seed and vegetable cultivation
programmes.
Format 5.5
Linkage table
Programme/ Programme/ Programme/ Programme/
scheme 1 scheme 2 scheme 3 scheme 4 etc
Programme/
scheme 1
Programme/
scheme 2
Programme/
scheme 3
Programme/
scheme 4
inter-
connectivity
score
53
The illustration shows how an interconnectivity score can be calculated for seven schemes
including the supply of HYV seeds, lift irrigation and Indira Awaas Yojaria. Schemes are
entered in both rows and columns and linkages identified by an X. In this case, we see that
the supply of HYV seeds is linked to lift irrigation, agricultural extension, Jeewan Dhara and
vegetable cultivation; conversely (and as might be expected), Indira Awaas Yojana is only
linked to housing construction, The HYV scheme and vegetable cultivation have the highest
interconnectivity scores with lift irrigation and agricultural extension close behind.
Illustration
Programme linkage table
supply of lift agr. Jeewan veg.. Indira housing
HYV irri- extension Dhara cultiv. Awaas construc-
gation Yojana tion
Supply of X X X
HYV
lift irrigation X X X
agr. X X X
extension
Jeewan X X X
Dhara
veg/ X X X
cultivation
Indira Awaas X
Yojana
housing X
construction
inter- 4 3 3 2 4 1 1
connectivity
score
54
Step 2: construct sectoral linkage table
The same method and modified Format can be used to identify priority programmes within
2ctor. This is of particular importance where district objectives have identified one or re
sectors as of absolute priority. The illustration demonstrates application of this format he
agriculture and allied sector at district level:
Illustration

Sectoral linkage table for agriculture and allied sector
crop horticulture soil animal sheep and
husbandry conservation husbandry wool
crop X X X
husbandry
horticulture X X
soil X X X
conservation
animal X X X
husbandry
sheep and X
wool
inter- 3 2 3 3 1
connectivity
score
This table demonstrates that, within the agriculture and allied sector, there is considerable
interconnectivity between several programmes with the exception of horticulture and
sheep/wool.
Programmes that are similar in objective and approach have a higher chance of being
dovetailed with each other. For example, construction of a well under the Million Well
Scheme could be linked with the Pumpset Installation Scheme operated by the Scheduled
Caste Development Corporation. This will show up on the intrasectoral linkage table.
However, while dovetailing the programmes care should be taken to ensure the contents
of each programme do not contradict each other.
For example, in the above illustration of linking well construction with pumpset
installation, a contradiction in the eligibility requirement for each programme may pose
problems. The scheme of pumpset installation under SCDC programme provides maximum
subsidy per beneficiary of Rs 5,000. But this cannot be combined with subsidy under the
55
Million Well scheme.
5.9 Adjustment in programmes and schemes
After the analysis of each programme, the next step is to assess how best adjustments
can be made in the programmes or schemes, and how any additional funding can be best
utilised to achieve the district's objectives.
This involves the following steps:
Step I: draw up a list of those programmes or schemes that are consistent with district
objectives and where there is capacity for expansion.
Step 2: construct adjustment table (Format 5.6) showing programme consistency, impact on
block disparity and interconnectivity. These should be copied in from the appropriate tables
calculated earlier.
Format 5.6
Programme adjustment table

programme/ programme/ programme/
scheme 1 scheme 2 scheme 3, etc.
consistency
impact on block
disparity
interconnectivity
total
and the illustration shows how Format 5.6 is applied to a range of special schemes.
56
Illustration

Programme adjustment table
IRDP JRY IAY MWC Accelerated
Rural Water
Supply
consistency 2 3 0.5 2 1
impact 1 3 0 1 2
on block
disparity
inter- 4 3 2 2 2
connectivity
total 7 9 2.5 5 5
Step 3: prioritise these schemes into categories A (maximum priority), B (intermediate

priority) and C (low priority) on the basis of the following:
the degree of consistency with objectives (see section 5.4)

the degree of disparity reduction available (see section 5.5)
the degree of interconnectivity with other programmes (see section 5.6).
Thus, the programme adjustment table shows that: JRY is the most consistent with district
objectives and has the greatest potential impact on block disparity. On the other hand, IRDP
has the highest interconnectivity score. Taking the measures together, JRY scores best and
IRDP second.
The financial and physical adjustment of programmes to suit these priorities should then be
done at the annual action plan stage (see Chapter 8).
5.10 Conclusion
In this chapter we have analysed the current programmes and schemes in the context of:
consistency with district objectives

capacity of expansion
impact of these programmes on reducing block disparity
linkages between programmes
adjustments of programmes based on the above analysis
57
CHAPTER 6
PLANNING NEW PROJECTS

Definition
Project
A project is a set of activities aimed at achieving one or more goals within a stipulated
time, with stipulated resources and in a stipulated area or region. While projects are
planned actions involving investments, programmes are a combination of interlinked
projects confirming to a specific objective.
At present districts rarely if ever design or initiate new projects. The emphasis is on
implementing standardised programmes designed by the State or Centre. This may change
with the coming of the Amendments to the Constitution. Twenty-nine rural and several urban
functions are to be transferred to the districts for planning and implementation. If this
transfer is accompanied by control over financial resources (whether Centre/State resources
or locally raised revenues), districts will be in a position to start new projects. They will
need to do so where the analyses in sections 3 and 4 (or where there are felt needs of
people) show that needs are unmet. What is needed is a simple planning procedure that will
result in project proposals that can be put to district authorities' proper sanction.
6.2 Project identification
Project identification is the first step in a series of steps by which a project is identified,
formulated, appraised, implemented, monitored and evaluated. Project identification is
essentially the generation of an idea for a project.
Definition
Project idea
A project idea is the first step in project planning. It is a statement that there is an
opportunity which can be exploited or a need that can be met by a particular course of
action. So, project ideas might include a new road, providing irrigation to a particular
area or a new panchayat ghar. At this stage, ideas are no more than simple statements: their
feasibility, costs and returns have still to be worked out.
58
Project ideas may rise from various sources for example:
Five-Year Plan documents where the broad objectives of national planning such
as increasing productivity, reducing unemployment, alleviating poverty, correcting
regional imbalances in development, growth with social justice, environmental
preservation, sustainable development strategies, etc. are indicated;
the results of the district analysis carried out according to chapter 3 and
complemented by district objectives identified by the methods in chapter 4. These
will indicate clear opportunities for development or points where norms of provision
remain unfulfilled;
requests from representatives of the people, e.g. members and Presidents of

panchayats, Members of Legislative Assemblies, Members of Parliament, etc,;
resolutions passed by panchayats, municipalities and corporations or

voluntary organisations based on the felt needs of the people in the area;
any scarcity of essential goods and services, social facilities, etc. For example,
lack of drinking water, electricity shortage, lack of firewood, lack of educational
institutions, hospital services, etc;
suggestions from expert groups like engineers, technical personnel, State Planning
Boards, etc;
experience in implementation of projects elsewhere and failure of past projects:

success stories of projects implemented inside or outside the country.
Illustration
One example of a success story that provided project ideas for India as a whole was the
Anand model from Gujarat which affected dairy development throughout much of India.
However, all over the country there are success stories at the state level which not only
had regional impacts but were adopted by other states. Such programmes include Mid-
day Meal Schemes (Tamil Nadu), Operation Barga (West Bengal), Land Army
Corporation (Karnataka), Antyodaya (Rajasthan), Rural Employment Guarantee
Programmes (Maharashtra) among others.
6.3 Prioritising project ideas
But what projects are likely to be important? The Working Group on District Planning
(see the Hanumantha Rao Report of 1984) laid down several important principles which
should be followed in deciding which project ideas to follow up. These are:
59
the highest priority should be given to schemes that are likely to generate
employment. The first task is to study the existing occupations in the area,
identify the constraints for their growth and seek the removal of such constraints.
o For example in the agricultural sector, if irrigation potential exists, the

duration of employment of persons engaged in cultivation can be augmented
through an increase in the intensity of cropping. The planner must also ensure
that more than a proportionate share of water accrues to the poorer farmers.
the next choice are complementary and supplementary investments that

will maximise the yield potential of past investments. Complementary
investments could include a small infrastructure provision like a "milk route" or
those that provide the necessary forward (through outputs) or backward
(through inputs) linkages to an existing key programme in the area.
o For example in the case of animal husbandry programmes, such linkages

could be in the form of fodder development, cattle feed units, chilling and
processing plants for milk and dairy products and dairy marketing through
cooperatives.
Thus only after fully exploiting the stretch potential available in the existing
schemes to the maximum limit and doing all that is possible to supplement the income
of the people in their existing occupations should the search be directed towards
new schemes.
a third kind of choice involves bringing into use resources which have been
neglected because they were believed to be unproductive- Special mention may
be made of common assets usually in the hands of the Government or the
panchayats.
o For example, in some districts there may be large areas of such land
usually envisaged to be unproductive, including scrub or jungle under the
forest department. Such lands may become the base for a fodder tree or a
horticulture programme which can be of help to poorer families through the
animal husbandry programme. Similarly, brackish waters can be planned to
benefit poor fishing families. Tank renovation is another example.
choices based on the reflection of expressed needs from Panchayats (see

the procedure described in chapter 3).
6.4 Designing a new project
Once a project has been identified, the next task is to design the project plan.
60
Definition
Project plan
The project plan is a concise statement of the background to the project, what it is intended
to achieve, what the main inputs and expected outputs are, what risks if any are involved and
what benefits are expected. The project plan will aid competent authorities to make a
decision.
There are two steps in designing a new project.
Step 1: identify what needs to be done to reach the objectives of the project. This can be
found out by applying a method called the logical framework to the data obtained so far or
which can be obtained from the district technical departments.
Definition
Logical framework
The logical framework is a table with 3 columns. In the first column the planner lists the
project's objectives, outputs and inputs in that order; and in the second and third column
the planner describes the indicators or benchmarks of achievement that will be used for
each stage and any risks or assumptions involved.
The logical framework is useful because it helps the planner to work systematically through
from objectives to inputs in a way that can later be set out as a plan. Begin by drawing up
a table following Format 6.1.
Format 6.1
The logical framework table

Summary Indicators Risks and
assumptions
Objectives
Outputs
Inputs
61
Procedure
Beginning at the top, attempt to fill in each section as follows:
The first task is the objective(s) of the project. What the project is intended to do
must be spelled out as precisely as possible. If there are many objectives, it may be
useful to divide them into long term objectives and short term objectives.
Then fill up the indicators and risks/assumptions columns. Indicators are those
things that can be measured to show progress in the achievement of objectives. For
example, if the project is intended to improve literacy, then the most important
indicator is the percentage of literates in the target area.
Then fill up the risks and assumptions column. These are things which are not
known with certainty at present but which may affect the performance of the project.
For example, our objective may be to alleviate poverty through expansion of milch
cattle under the IRDP programme. The assumption here is that beneficiaries will
request cattle and there are many risks for example that cattle will be maintained
properly.
Now move to the outputs row. In the left hand column fill in what is needed to
get to the objectives. If the objective is to improve drinking water supply then the
necessary output of the project is some sort of operating water facility, either a well
or a handpump or some form of protected supply. Again, fill up the indicators and
risks sections.
Finally move to inputs. Here, technical advice may be taken. The inputs the
project are those things that are need to achieve the outputs. For example, in the case
of women's programme under DWCRA, construction is involved which will require
building materials and labour (these may be provided by a contractor) and also lady
workers must be employed. Again indicators and risks should be covered; for
example, building materials not available or late sanction of project.
Now this can be illustrated with reference to the drinking water example above. Assume that
a project is being designed to provide a water supply to 50 villages with Government
providing materials and the villages providing labour. The logical framework for this project
would be as per the illustration following:
62
Illustration

A logical framework for a drinking water project
Summary Indicators Risks and
assumptions
Objectives (long term) Reduced mortality Disease is caused
improvement of and disease by polluted water
health (short term) improvement in All sections of
provision of pure water supply village can use
water supply
Outputs 50 handpumps Existence of Ground water

providing water pumps sufficient to
maintain flow;
Maintenance
available
Inputs Handpumps Inputs delivered or Pumps available for
Concrete available purchase; finance
Labour Drilling sanctioned: villagers
facility willing to provide
labour
The logical framework gives the skeleton of a project, helps to ensure that nothing is missed
and provides the basis for monitoring and evaluation.
Step 2: draw up the plan. A standard project layout should he used that will help the
concerned authorities to decide whether to go ahead. Again, technical advice may be taken
if necessary.
Definition
Project layout
A project layout is the set of rules for laying out the details of a project plan. The best and
simplest way is to use a layout which starts with the problem, goes on to objectives,
describes the project and concludes with its benefits and justification.
63
A simple project layout is as follows. Complete every section in turn.
Background. Use the district analysis and strategy sections to describe the drinking
water problem in general. Current government policy in regard to drinking water
supply and the project area should also be described.
Objectives. These may be taken from the logical framework but can be expanded
if necessary. The time frame for the project should also be given.
Components. Here may be given what the project involves, for example "training
poor youths in vehicle repair" or "construction of panchayat ghar". The location, type
and number of capital investments, production units and outputs may be given.
Information for this may be taken from the outputs section of the logical framework
supplemented by technical advice.
Finance. Costs may be ascertained with reference to the inputs section of the
framework and time frame. Unit cost figures may be available. The budget may be
calculated with reference to these costs.
Risks and assumptions. These may be taken from the logical framework.
Benefits and justification. These may be compiled from the objectives section
with particular reference to policy and the situation prevailing in the target area.
6.5 Analysing project feasibility
Once the plan is complete, it may need to be analysed to find out whether it is:
technically feasible
financially viable
environmentally acceptable
The results of the analysis may be used to modify the project so that it works better.
The technical feasibility of the project should be referred to the concerned department.
Other questions can be dealt with by the planner using several simple techniques.
6.6 Financial analysis

Definition
Financial analysis
Financial analysis allows to assess the cash costs and benefits of participation in the
project according to the view point of the individual agents concerned.
64
The first step in financial analysis is to classify the project into two types:
production projects which aim to produce outputs which may, if offered for sale,
earn profits. Production projects range from large scale industrial enterprises to
household assets obtained under the IRDP programme.
service projects aim (as the name implies) to provide a flow of services which may
or may not be charged for. Typical examples of service projects include health or
education projects or the provision of child welfare services under the ICDS
programme.
The basic difference between the two is that production projects usually aim to make a profit
or at least cover their costs. Consequently, we should try to find out whether this will
happen. Service projects on the other hand do not usually try to make profits. Consequently
we should try to find out whether they are technically feasible and a cost-effective way of
providing a service.
Financial analysis of production projects
Any project involves costs while it yields benefits during its life time. Cash flow analysis
of a project is a simple technique that helps us to understand how costs go out and revenues
come in over the life span of a project, and whether at the end of a reasonable period of time
the revenues outweigh the costs (or not).
Definition
Cash flow
A cash flow shows year by year over the future life of a project all cash receipts and all
cash payments. The difference between them is shown as the net benefit (or net inflow)
to the project.
There is a set of rules for constructing a cash flow for project analysis. These are:
a cash flow shows all cash receipts and payments to or from the project. Cash
receipts include revenues from sales and any grants or loans received. Cash payments
include the costs of building construction or the purchase of machinery, the cost of
raw materials, wage labour costs and any other inputs including power and water.
Working capital (which may cover some of these costs) may also be shown,
show the cost of any capital replacements in the appropriate year, e.g. machinery
replacement.
enter all receipts and payments in the right year. The rule is when you pay (or
receive) is when you put. Assets are not normally depreciated.
65
group receipts and payments logically. Most cash flows begin with receipts
(sometimes called inflows) and then enter payments (sometimes called outflows).
do not adjust for inflation. Cash flows are usually constructed in today's prices
however far in the future they go.
work out the flow for a number of years. A ten year period is often used. Allocate
a year number for each year of the project as well as a date. This will simplify
matters if the project is delayed.
finally, subtract payments from receipts to give the net benefit for each year of the
project.
One question that is often asked is: why no depreciation or adjustment for inflation when it
is normal accounting practice to do both of these? The answer is that a cash flow is used
in project analysis to answer one question only: is the project worth doing
Financially? To do this we need to know exactly what are the cash movements year by
year. This is particularly true when we are dealing with local level projects when it is the
cash outcome of the enterprise rather than the balance sheet value that matters to those
involved.
A cash flow is normally laid out according to Format 6.2. The format is given in year
columns, i.e. each year is allocated to a column but the format can also be used with years
allocated to rows. It is a matter of convenience.
Format 6.2
Cash flow table
date year of 19... 19... 19... 19... etc

project
inflows
List here all cash
payments into the
project. Include loan
receipts if applicable
outflows
List here all cash
payments out of the
project. Include loan
payment if applicable
net benefit
Subtract outflows
from inflows
66
A cash flow laid out like this serves two purposes:
it enables us to get a picture of the annual financial position of the agency

concerned based on the net benefit.
it is the basic starting point in working out several other indicators of financial
performance.
In the case of most relatively small scale district level projects, the most useful indicators
are:
• the annual net benefit
• the incremental benefit of the project.
• the payback period
• the average return on investment
The annual net benefit of a project is given by the bottom line of the cash flow. It is the
annual cash gain or loss that is expected to accrue as a result of the project. For
example a project with a typical year total inflow of Rs 4,000 and a typical year outflow of
Rs 2,000 will have a net benefit of Rs 2,000. The word typical in this case refers to
years when returns have settled down and main investment costs have been met.
The advantage of the net benefit is that it shows the actual annual cash gain or loss
from the project.
The planner should always ensure as far as possible that projects experience positive annual
net benefits (cash gains) as early as possible in their life. In the case of beneficiary-oriented
projects this is particularly important since many people below the poverty line have few cash
resources to help tide them over early losses.
The incremental benefit is a measure of the difference made by the project. It is

calculated by subtracting without-project income from the net benefit. Without-project
income is any income lost as a necessary result of entering the project. For example if a
beneficiary gets an annual net benefit from a project of Rs 2,000 but has foregone an
income of Rs 500 to take up the project, the incremental benefit is (2,000 - 500), i.e. Rs
1,500.
The advantage of the incremental benefit measure is that it shows the net
advantage the beneficiary gets from the project. This enables the planner to avoid
the unfortunate situation where the beneficiary is worse off as a result of
joining the project.
The planner should always ensure as far as possible that projects experience
positive annual incremental benefits as early as possible. Again, this is particularly
important with beneficiary-oriented projects.
The payback period of a project is the time (months or years) required to recover the entire
investment cost of the project. If recovering investment costs is important (as may be the
67
case with a marginal farmer who has put his own money into the project) then, other things
being equal, the shorter the payback period the better the project.
The payback period can be calculated by summing all investment costs (which are usually
incurred in the early years of the project) and then finding out how long it will take to
accumulate this sum through net inflows. For example a project with an investment cost of
Rs 10,000 and an annual net benefit of Rs 2,000 has a payback period of five years.
The advantages of calculating the payback period are:
o it gives a guide to how long a loan should last

o it shows how fast capital can be accumulated for further investment,
In general short payback periods are preferable.
The average return on investment (ARI) is the percentage return in a typical year on the
capital invested. For example the ARI for a project with an investment cost of Rs 10,000
and a typical annual net benefit of 2,000 is 20%.
The advantage of the ARI is that the measure can roughly he compared with the
interest payable by a bank on a similar sum.
The planner should always compare ARI results with prevailing bank interest rates. This is
particularly important with larger commercial-oriented projects. The point of the comparison
is that there is little gain in investing capital in a project if it can earn higher returns on
deposit.
An illustration of the application of these methods to a typical IRDP scheme follows;
Illustration
Cash flow for an IRDP fishery scheme
Introduction
Under IRDP, a beneficiary who is a fisherman has received a loan and subsidy (50%) for
the purchase of an improved boat and diesel outboard engine. This will enable him to
increase his catch considerably. He is already engaged in fishing and gets an annual
income of about Rs 10,000.
The cash flow is constructed for ten years. Inflows include the value of the old boat, loan
receipt, subsidy and the value of fish sales. Outflows include the purchase cost of the new
boat, engine, fuel and loan repayment. Interest on the loan is calculated by the level
repayment method at 10% over the five years 1996-2000.
68
Illustration (continued)

date 1995 1996-2000 2001-2004
year of project year 1 years 2 - 6 years 7 - 1 0
inflows 5,000
sale of old boat 20,000
loan receipt 10,000
subsidy value of 40,000 40,000 40,000
fish sales
outflows 10,000
boat purchase 20,000
engine purchase 20,000 20,000 20,000
fuel annual loan 5,676
repayment
(including interest)
net benefit 25,000 14,324 20,000
without-project
10,000 10,000 10,000
income
incremental net
15,000 4,324 10,000
benefit
Illustration (continued)
As a result of this analysis we can come to the following conclusions.
The annual net benefit commences at Rs 25,000 in 1994 but drops significantly to Rs 14,324
during the next five years. This is due to loan repayment. However, once the loan has been
paid off, there is a significant increase to Rs 20,000. The incremental net benefit is
positive in every year. Once the loan has been paid off, the beneficiary's income is
doubled. The payback period is very short, just over a year, The ARI is 66% i,e
20,000/30,000. This compares well with bank interest charges which we know to be about
10%.
Consequently, the financial decision on the project is that it should go ahead.
69
Financial analysis of service projects
Service projects and schemes are those intended to offer a service for which often no charge
(or a charge below cost) is made. Consequently, projects incur costs but no or few benefits.
and there is no point in trying to estimate net benefits,
The approach usually adopted is to try to measure the cost-effectiveness of the project.
Definition
Cost-effectiveness
The cost-effectiveness of a project is measured by the balance of cost and achievement in

physical terms. By and large, the more that is spent on providing services the better the
quality of provision but unit costs also rise. Consequently, when we look at the cost-
effectiveness of different kinds of service, we are trying to estimate what is the cost per unit
of physical achievement (or vice-versa) and how this might be reduced.
There are two ways of measuring the cost-effectiveness of different kinds of provision.
The first is a measure in terms of units of provision, or per unit costs. In schools,
these would be places (seats), in hospitals beds (or bed-nights), in employment
schemes mandays of work, in municipal markets floor space or number of trading
stalls and so on. Per-unit costs should be used where the unit is a reasonably accurate
measure of the only or main benefit of the service. For example, in a secondary
school, the measure of benefit is the number of places (seats) it offers.
The second method of measurement is in terms of population served by a service,

or per capita costs. Per capita costs should be used where the population as a whole
benefits from a service: (for example a public water supply) or where per unit costs
would only measure part of the benefit (for example, rural clinics where out-patient
services are as important as the number of hospital beds).
6.7 Environmental analysis
The quest for higher standards of living means deliberate modifications in the natural
environment in order to achieve economic goals. But projects have often inflicted irreparable
damage to the natural environment. This leads to increased costs to society in the long run.
There is global awareness of these issues, not only for major projects but also for smaller
rural development projects implemented at the village level. Environmental impact
assessment is now mandatory before decisions are taken on many investment projects.
70
Definition
Environmental impact assessment
Environmental impact assessment (EIA) is designed to predict or identify the impact of a
development on the natural environment and as a result man's health and well-being; and
to interpret and communicate information about the impact.
An environmental impact assessment accompanying a project proposal attempts not only to

predict the implications of the proposed development but also lists out the advantages and
disadvantages of the proposed alternative approaches if any. The objective of an EIA is to
protect the environment by anticipating problems rather than applying remedial measures
after the act. There is no point in crying over spilt milk since environmental damage is often
irreparable. Rather it is better to avoid spilling it in the first place.
The planner can carry out a simple EIA as follows:
use a checklist (Format 6.3) to find out whether the project may cause damage to
the environment
use an environmental impact assessment table (Format 6.4) to describe what this
damage is likely to be and identify whether any action should be taken.
The planner should work through the checklist systematically. It may be necessary, for some
aspects for which there are no easy answers, to commission studies and special
investigations. However in most cases it will be possible to identify answers locally, taking
advice from concerned departments where necessary.
Format 6.3
Checklist of environmental concerns
Question 1: what kind of area does the scheme affect?
The following areas need special consideration:

▪semi-arid areas and desert margins
▪mountainous areas
▪tropical and subtropical forest
▪coastal wetlands including mangrove swamps
▪habitats providing important resources for vulnerable groups:
▪for example, tribal populations
▪national parks, nature reserves
▪areas containing endangered species
▪areas of historical, archaeological or scientific interest
▪areas of high concentration of population or industrial activity where further
development could create significant environmental problems
(continued on following page)
71
Format 6.3 (continued)
Checklist of environmental concerns
Question 2: what sort of development does the scheme involve ?
Among the main categories of development initiatives with a significant impact on the environment
are the following;
• important policy measures like:

o changes in agricultural subsidy
3 changes in industrial zoning on the outskirts of urban areas
• major changes in the use of land and renewable natural resources for example:
o forestry development o
wasteland colonisation s
resettlement o minerals
development
• major changes in water use for example:
o major irrigation projects (including small projects localed in new command areas)
3 river basin management including the storage or diversification of water o
changes in fishing practice
• infrastructure development including:
o mini-hydroelectric developments o
roads and railways
• industrial processes with toxic and hazardous waste and by-products which may
contaminate air. soil or water for example:
^ paper and pulp mills
o chemical plants
o mining and smelting
o hides, skins or leather factories
• waste management and disposal
Question 3: how could it affect the environment ?
The impact of development on the environment can be classified as following:
• land degradation. Deforestation, soil erosion, overgrazing and salinisation are some of
the consequences of uncontrolled timber exploitation, excessive abstraction of groundwater
or overgrazing.
• water pollution can follow from uncontrolled waste water or sewage discharge. Industrial
effluents are particularly dangerous. Uncontrolled human settlements, particularly where
proper services are not provided, can also contribute to water pollution,
• air pollution results from traffic and uncontrolled industrial discharges into the air.
• damage to wildlife can easily occur through forestry, resettlement or irrigation projects.
This may have unforeseen effects including changes in food cycles: for example, many birds
and animals play an important part in the control of pests.
• socio-economic impact. I-'alling living standards especially among the poor can start a
vicious circle which produces further environmental degradation. Forest cutting to obtain free
fuel, overgrazing particularly on common lands to augment the family food supply or raise
cash, soil erosion or pollution in the vicinity of urban slums are all part of this circle of
causation.
72
The answers to Format 6.3 should then be used to fill up the EJA table given in Format 6.4.
Notice that the last row asks what action should be taken. In the case of the environment,
actions that may be taken fall into four classes:
redesign or abandonment of the project

the use of legislation or other forms of regulation to reduce environmental damage.
For example, laws on pollution can he enforced to reduce smoke emission.
complementary investment to reduce the impact and duration of environmental
damage. For example, afforestation of headwaters to reduce erosion damage,
compensation for those affected by the project.
What action should be taken is a matter for appropriate authorities to decide, but planners
should be in a position to make a recommendation. Advice should also be taken, where
necessary, from concerned departments.
Format 6.4
Environmental impact assessment table
effects during effects during early long term effects

initiation/ construction stages of project
phase
Are the expected
environmental effects
harmful ?
What is the scale: e.g.
number of people or
animals affected ?
What is the expected
intensity of impact, e.g.
disaster, major, minor?
What is the expected
duration of impact?
Are the effects likely to
be irreversible ?
How certain are the
effects?
Are any laws or
regulations infringed ?
Are there opportunities to
reduce harmful effects ?
Will the effects have a
different impact on men
and women or other
social groups?
Action that may be taken
to counter effects
73
The following illustration shows an EIA table completed for an aquaculture (prawn) project.
This is a project which will clear currently forested land and construct ponds for the raising
of prawn.
Illustration
EIA table for an aquaculture (prawn) project.
effects during effects during early long term effects

initiation/ stages of project
construction phase
Are the expected yes yes yes
environ menial effects
harmful ?
What is the scale: e.g. 20 people 100 people 100 people
number of people or
animals affected ?
What is the expected minor minor minor
intensity of impact eg
disaster, major, minor ?
What is the expected three months one year long term
duration of the impact ?
Are the effects likely to be no no no
irreversible ?
How certain are the certain certain certain
effects?
Are any laws or no no no
regulations infringed?
Are there opportunities to yes yes yes
reduce harmful effects ?
Will the effects have a no no no
different impact on men and
women or other social
groups ?
Action [hat may be taken none reforestation in action on waste

to counter effects vicinity of project disposal, i.e. prawn
remnants after
cleaning
6.8 Conclusion
This chapter has shown how new projects and schemes for implementation in the district can
be identified and drawn up. Simple methods for analysing the project have been discussed.
74
CHAPTER 7
FINANCING THE PLAN
7,1 Purpose of this chapter
Plans need financing if they are to be implemented; and this section deals with the steps
involved in identifying financial needs, resources and the allocation of the resources.
Normally, government programmes within a district receive financial allocations from the
State's district sector budget, or through Central assistance or a combination of both. There
may also be a local discretionary budget (this varies in size and application between States).
In the past, as we have seen, most decisions about the content and location of government
programmes were taken either by the Centre or State Governments or by the departments.
Districts had relatively little power to change these decisions. Consequently, the financing
plan became more or less synonymous with the district plan as a whole and comprised a
number of departmental estimates for expenditure, prepared against a previously
communicated ceiling of expenditure and which would be implemented as funds became
available. As per the recent Constitutional Amendments, it is mandatory to create a State
Finance Commission (SFC) which would look into the financial allocations at the district
level.
Some changes must now be expected as a result of the Constitutional Amendments. Chapters
5 and 6 have shown how ongoing programmes can be modified or new projects identified
which will enable the district to implement its own strategy for development. These changes
in turn will mean that a financing plan must be drawn up which shows how these
modifications and changes will be financed. This is the purpose of this chapter. By its end,
the planner should have the methods needed to draw up a financing programme which can
be put to the appropriate authorities for sanction. This programme is not an alternative to
normal departmental budgeting - instead it is a complement which enables the planner to see
the financial needs of the district plan as a whole.
The purpose of the Guide is to help the planner in producing a medium-term plan for the
district. It is important to be clear and consistent about long term objectives and what can
be done to achieve them. Long term financial planning however rarely works. Even at
national level there is always uncertainty about the funds that will be available each year for
development, even Plan expenditure. This situation is magnified at district level. The annual
financial ceiling provides guidance for one year, but this is subject to cuts and changes.
Beyond one year, prediction is very difficult and, although financial requirements can be
estimated, financial provision becomes guesswork to some extent. Consequently, this section
of the Guide is designed to help the planner produce a one year financial plan, which will
fund the programmes (together with their changes) and projects envisaged for the coming
year. This financial plan will provide the basis for the annual action plan (see Chapter 8).
It will need to be repeated each year as the new financial ceiling is notified. It is also
possible to produce a perspective financial plan based upon projections of the cost of ongoing
schemes and new projects but this is not discussed in this Guide.
75
This chapter is divided into four sections.
• The process of financing (section 7.3)

• Estimation of financial resources (section 7.4)
• Estimation of financial requirements (section 7.4)
• Allocation of funds (section 7.5)
Each section introduces its own table-based method as a way of presenting and analysing the
data.
7.3 The process of financing
The process of making financial allotments under different programmes of development,

usually referred to as schemes, is a crucial one. At the district level it involves the
interaction of a multi-tier administration and evolves a multi-level plan. The DPCC or the
District Planning and Coordination Council/Committee is the decision making body. Its
basic function is to finally strike a balance between the transmitted demands reflected as
Departmental, District, Block and Municipal Schemes and the fund supply from different
sources. The schematic representation is given in Diagram 1.
Diagram 1 - The Process of Financing
Departmental Schemes Assigned

Funds
District Internal
Schemes Resources
Institutional
Funds
Block District
Schemes Planning
Cell
Public
Municipal Resources
Schemes
Other Funds
District Planning
Committee
76
The schemes or developmental programmes enter the system under primarily four heads:
Departmental Schemes
District Schemes
Block Schemes
Municipal Schemes (recent addition as per the 74th Amendment).
The heads of departments (like Executive Engineers, Principal Agricultural Officers) decide
on the departmental programmes to be undertaken at the district level. These could he based
on directives from the higher administration or could be independently decided. Apart from
these there are the District Schemes decided by the District Planning Cell (DPC) under the
authority of the District Planning Officer, the Block Schemes chalked out by the Block
Planning Committee (BPC) under the authority of the Block Development Officer and the
Municipal Planning Committee (MFC) under the authority of the Chairman, Municipal
Corporation. The DPC formulates its own schemes as well as the other schemes and works
on a tentative solution before placing it to the DPCC where the final decisions are taken up.
Each of the committees or departments also directly interact with the DPCC. The DPCC
fixes up the regional and sectoral allocations and usually is assisted by the DPC in this
process. These arrangements may be amended further as a result of the 74th Amendment.
7.4 Estimation of financial resources
There are several sources of funds for the district plan. These are defined as follows:
Definitions
Expected financial outlays are conveyed to the district towards the end of the previous
financial year. They constitute a financial ceiling for expenditure on a particular
programme or scheme within which expenditure takes place. The ceiling rises if
supplementary funds are made available.
Expected local resource mobilisation includes local taxation by panchayat authorities, user
charges for panchayat services including village markets like hats and bazaar charges, and
any licence revenue. It also includes panchayat or individual cash contributions to local
schemes or projects.
Expected investment from public enterprises comprises all schemes for capital
investment in buildings, equipment or other commercial facilities in the district.
Expected institutional finance comprises the credit that will be made available by
rural banks operating under the guidance of the lead bank in the district.
The first step is for the planner to obtain the necessary information as follows:
77
Expected financial outlay for the coming financial year to the district by sector
or department or scheme (see also Chapter 5). This can be obtained from
the concerned departments at district or State level when available. Allocations
should be divided by:
o Central funds
o State sector funds
o District sector funds
expected local resource mobilisations for the coming financial year in the
form of local tax revenues, charges etc. These should be obtained from the Zilla
Parishad authorities. They should also include if possible local resources pledged by
panchayats in their request proformas (see also Chapter 4).
expected investment for the coming financial year proposed by Central or State
public enterprises in the district. This should be obtained directly from the
concerned authorities.
expected institutional finance availability for the coming financial year (from the
district Lead Bank). This will normally have been agreed by the District
Credit Committee and may be set out in the District Credit Plan. Details will be
available from the lead bank in the district. Any changes in institutional finance
availability as a result of the district plan will usually have to be agreed by
the District Credit Committee.
These data are then used to fill in the table shown in Format 7.1 below. This should be
modified or expanded to suit the district situation.
Format 7.1
Financial resources table Financial year 19..
Source of funds
State finance mobilisation enterprises
Agriculture
and allied
sector
Forestry
Irrigation
Industry
(other rows
should be
inserted as
necessary)
78
Format 7.1 is illustrated with reference to the Agriculture and Allied Activities in the district.
Illustration

Financial resources table for Agriculture and Allied Activities
Financial year 1996
(all figures in Rs lakhs)

Source of funds
State finance mobilisation enterprises
Agriculture 120 40 200 40 -
Animal
80 20 120 40 -
husbandry
Dairy 60 40 140 30 60
Funds 260 100 460 110 60
available
from all
sources
Another vital feature that has to be considered in estimating the financial resource situation
is the credit review.
The Credit Review (Format 7.2) provides the complete picture of the committed funds from
different sources and its utilisation over three time periods:
the past financial year
the current financial year during which planning is being done
the forthcoming financial year which is now being planned.
So, if planning was being undertaken during financial year 1995-96, the past year is 1994/95
and the year being planned is financial year 1996/97.
While the committed and actual utilisation figures could be obtained for the past financial
year, utilisation figures for the current year would be given based on anticipation and the
forthcoming year statements would be based on the knowledge of future commitments and
expectations.
79
Format 7.2
Credit Review
Period Past year Current year Forthcoming year
committed actual committed anticipated already to be
utilisation utilisation committed identified
/proposed
Source
Central
Sector
State Sector/
Departmental
Allocation
District
Sector
Local
Resource
Mobilisation
Institutional
Finance
Public
Enterprises
Others
7.5 Estimation of financial requirements
The basis of making financial requirement estimations is based on a Financial Review which
gives an overview of the past and present allocations and achievements.
The financial allocations to different sectors under various schemes is primarily based on a
comparative analysis of the financial target and achievement figures. The format for the
Financial Review is given in Format 7.3. As in the Credit Review, three time periods - die
past financial year, the current year and the forthcoming year (now being planned) - are
considered while deciding on future allocation. In past time period the target and
achievement figures obtained under each sector and schemes are presented in financial terms.
For the current year the target figures are incorporated while anticipated achievements are
entered. However for the forthcoming year, tentative targets could be provided which are
based on the knowledge of assured programmes, continuing programmes and a crude
assessment of the forthcoming programmes which are to be proposed.
80
Format 7.3
Financial review
Past year Current year Forthcoming

year
approved actual approved anticipated proposed outlay
outlay expenditure outlay expenditure for continuing
and new
programmes
Sector or
scheme
Sector or
scheme
Sector or
scheme, etc.
The next stage is to construct a total financial requirement table on the basis of Format 7.4A
(total direct requirement) and Format 7.4B (total financial requirement). Note that these
tables are linked in that the result of 7.4A is copied into 7.4B.
Definition
Financial requirement
The total direct financial requirement is the proposed outlay by government (central,
State and district sources) on a programme or sector. It includes provision for new
schemes and projects. This is added to credit, institutional and local resource
mobilisation requirements to give the total financial requirement.
81
Format 7. 4 A
Total direct requirement
Programme/ Anticipated plus changes equals plus new equals total

scheme expenditure sanctioned by continuing schemes/ direct
current year district direct projects requirement
requirement
Format 7.4B
Total financial requirement

Programme/ Total direct plus local plus institutional total financial
scheme requirement resources finance requirement
(from 7.4A)
Completion of Formats 7.4A and 7.4B involves the following steps:
Step 1: for each ongoing programme, ascertain current year's approved outlay and
anticipated expenditure. Ascertain which is the best basis for identifying the forthcoming
year's requirement. It may be that exceptional circumstances delayed disbursement this year
and approved outlay would be a better basis for estimating the forthcoming year's
requirement. Equally, anticipated expenditure may be the correct figure to carry forward.
for example assume approved outlay and anticipated expenditure in current year
for Agriculture and Allied Sector are the same: Rs 120 lakhs
Step 2: adjust this for inflation for the forthcoming year.
for example assume the expected inflation rate is 10%. Then
direct financial requirement = 120 x 1.1 = Rs 132 lakhs
Step 3: then adjust continuing programmes where appropriate for:

82
the changes and modifications if any notified by the State/Central Governments
the changes and modifications agreed by the concerned District authorities

following discussion of the results of Chapter 5. In some cases
programmes/schemes will be increased somewhat and others will need to be
reduced.
for example assume that District authorities have agreed that government
expenditure on Agriculture and Allied Sector should be increased by 10% to meet
the objectives of the new district plan. These funds would be used to expand certain
State schemes. Direct financial requirement should then be adjusted as follows:
direct financial requirement = Rs 132 lakhs x 110% = Rs 145.2 lakhs
Step 4: add the expected costs to be borne by government of any new programmes or
schemes agreed by the concerned District authorities following discussion of the results of
Chapter 6.
for example assume that it has been agreed that a new project will be started with
an expected cost in the first year of Rs 10 lakhs
Then direct financial requirement — 145.2 + 10 - Rs 155.2 lakhs
Step 4: add those costs that are expected to be borne by local resources. These should match
the figures in the sources of Funds statement.
for example assume that local resources are expected to provide Rs 20 lakhs
Total financial requirement = Rs 155.2 + 20 = Rs 175.2 lakhs
Step 5: add institutional and public enterprise contributions. Institutional funding will need
to have been agreed by the District Credit Committee and should match expected outlays in
the updated District Credit Plan.
for example assume that these come to Rs 80 lakhs

Then total financial requirement = Rs 175.2 + 80 = Rs 255.2 lakhs.
7.6 Allocation of funds
The allocation exercise involves matching expected financial resources to a set of demands
which would have to be met to the maximum possible extent. Usually the demand for
funding exceeds funds available and so rationing is necessary. In theory there are ways of
reaching an optimal solution but in the average district with a large number of blocks,
sectors, departments and schemes there are too many pressures and interests to reach a such
a perfect solution.
Hence the approach that is taken up is participatory. The exercise described here is to be
undertaken by the DPC(C) based on the outline plan prepared by the DPC and with
83
representatives from different levels like the Zilla Parishad, District Administration, Block
Panchayat Samiti, the Departments, Municipalities, Experts and Bank officials.
It is a democratic process where each and every member places their views and solutions are
ultimately reached through, "conflict resolution" and negotiation (see Chapter 8).
Consequently, it is impossible to lay out rules for the allocation process. However, during
negotiations, certain important principles (see below) should be kept in mind.
Principles of allocation
Priority should be given to those programmes and schemes which the district
believe will help to meet agreed district objectives (see Chapter 4).
Central and State priorities should also be taken into account.
In selecting programmes and schemes for priority, attention should be given to

their consistency, their effect on disparity and their linkages with other schemes
and sectors (all covered in Chapter 5)
Within this category, priority should be given to continuing programmes if

possible. The existence of ongoing developmental programme in a particular
block or sector definitely acts as a positive factor in allocation in favour of that
block or sector. Other things being equal, it is better to continue programmes
already under way since funds have already been spent. However, bear in mind
what is known about success or failure of continuing programmes.
Thought should also be given to new programmes or projects where it is clear that
existing ones are not completely satisfactory.
In allocating funds to blocks, bear in mind general allocation criteria (like

population, area, SC/ST concentration etc.). In particular, account should be
taken of the development level and of disparity reduction. A major objective
of any planning is to increase the rate of development and reducing the extent of
disparity. Hence more funds should be allocated towards blocks where disparity
exists and sectors and schemes which have the potential for uplifting the level of
development and reducing disparity.
Resources permitting, blockwise fund allocations should not diminish over time.
However, sectoral allocations may or may not diminish over time depending
upon priorities agreed.
After considering all these factors the final allocations are made, using Format 7.5. This
involves the following steps:
84
Step 1: allocate funds available (see 7.3) for each programme/scheme and calculate deficit.
Step 2: if the total deficit for the district is less than 10% of total requirement, reallocate
finances taking funding from other programmes/schemes. Pay particular attention to those
schemes where expected disbursement is likely to be delayed or rates of achievement low.
Step 3: if the total deficit is expected to be greater than 10%, allocations will need to
be reviewed by the concerned authority.
Format 7.5
Allocation of funds table
Programme/ Direct Local Instil, Direct Local Instil, Deficit

scheme requirement mobilisation finance fund mobilisation finance
required required available available available
Step 4: it would be judicious to further disaggregate the allocations made in the previous step
by sectors and blocks (Format 7.6).
85
Format 7.6
Major sectoral outlay by blocks
Name of Block
District
Sector
total
Totals by block and district
7.7 Conclusion
This Chapter has discussed simple procedures for laying out the financial requirements of the
district plan, balancing these against expected allocations and coming to an agreement on the
reallocation of resources.
86
CHAPTER 8
PUTTING THE PLAN INTO PRACTICE
The final step in the planning process is to establish the conditions under which:
the district plan is capable of being implemented
the district plan is likely to be implemented, that is, all concerned functionaries and
representative bodies are committed to putting the plan into action.
There are important differences between these objectives. There have been good manuals
on planning practice written in India and abroad and good plans have been prepared. District
bodies in India and abroad have declared themselves willing to implement the plan. And yet
plans however good have not materialised into action. Why should this be and how might
things be improved ?
There are several reasons why plans fail to be implemented, and this Guide has tried to take
these into account when being written. The reasons are:
they are too long, excessively technical and difficult to understand
they spend too much time on data about the district and not enough on what should
be done and where
even when they discuss what should be done, they assume that a district plan starts
with a completely clean slate. In reality, most programmes are ongoing and can
only be changed slowly if at all
Chapters 3 to 7 have tried to circumvent these problems by simplifying the planning process,
reducing to a minimum the amount of data needed and concentrating on the practical
problems of deciding how to adjust existing programmes to obvious district objectives,
But there are other reasons why district plans fail to be implemented which are not connected
with the plan itself. These reasons are to do with the way district administration and district
politics work and the effects of both of these upon planning. Many districts in India are
characterised by:
politicians who attempt to serve their constituency (i.e. the people who elected
them) as best they can while ignoring other concerns. While there is nothing wrong
with this proper expression of democracy, it makes representative bodies into forums
where constituency interests predominate and collective concerns are overshadowed.
87
administrators who change frequently: as a result, the administrative commitment
to have a plan prepared and see it through to implementation is disturbed by constant
transfers and new faces.
technical officers-who prefer to follow guidelines from State or Centre and are
reluctant to innovate or consider change even if district preferences have been clearly
identified.
It is probable that this environment will change. Indeed it must if the objectives of
decentralisation contained in the Constitutional Amendments are to be achieved. But it is only
realistic to assume that these problems will continue and that they will continue to affect
planning implementation.
Therefore, the planner needs to acquire certain skills and work in ways that deal with these
problems and bring the district plan closer to realisation. The skills and techniques needed
to put the plan into action are:
the ability to work to a schedule that fits in well with the district's own annual
cycle of operations
the ability to lay-out the plan in a readable and concise form that lends itself to the
preparation of annual action plans
the ability to negotiate the implementation of the plan with all concerned parties:
reconcile the different interests that are involved; and create a commitment
to
implementation within the district as a whole.
This chapter deals with these needs.
The chapter is divided into three further sections:
operationalising the planning process. Operationalising in this context

means setting up a simple planning office within the district capable of
producing the plan document and drawing up a calendar for work, both on an
annual basis and for a medium-term perspective plan for five years.
laying out the plan document. Whilst flexibility is important, there are
advantages in a plan that is systematically and clearly laid out so that all can
understand it.
negotiating the plan. The final section offers some advice about the task of
negotiation: reconciling interests and creating a sense of commitment to the
plan's proposals.
88
8.3 Operationalising the planning process
The emphasis in this Guide is that planning should be as simple and transparent a process as
possible.
Definition
Transparency
People are often suspicious of planning for two reasons:
they do not understand the procedures behind the process of planning.

Complicated language, mathematical formulae, diagrams and graphs as well as
excessive length add to confusion and hence to suspicion.
became they do not understand the procedures, people often read ulterior
motives into the plan which are not there. They suspect that the plan serves
special interests, whether of particular groups in society or simply the
convenience of the administrators. They find it difficult to believe that the plan
has been prepared for the good of the district as a whole.
Consequently, a plan should be as transparent as possible. This means it should be

clear why the plan has been prepared; what kind of data and other information (e.g.
requests from panchayats) has been used; how the plan has reached its conclusions;
and how and where the plan has been discussed and agreement reached.
Because the procedures used are simple, the planning office needs few staff and simple
equipment. A specifically appointed planning officer with relevant qualifications and
experience (for example, in administration, planning itself, economics and statistics) is an
advantage although the Planning Guide is designed to be used by those new to the subject.
Additional staff to help with data collection, data analysis, touring and discussion and plan
preparation are also advantageous.
The equipment needed includes simple data processing equipment (calculators) and tools for
map preparation including a map table (tracing table). However, both the data specified by
this Guide and the formats it uses are designed to be computerised. All can easily be entered
into any of the currently popular spreadsheets or database packages (for example Lotus 123
and dBase). This would speed up the work.
A working calendar needs to be drawn up. This Guide is designed to produce a district plan
for a period of at least five years together with a one year financial plan upon which annual
action plans will be based. The plan itself is designed to be produced in the first year of this
five year period.
89
Definition
Annual action plan
Annual action plan is a document listing out the activities to be carried out to
achieve the specific objectives within the coming financial year. This manual does
not deal with action plans in detail since most districts in India are familiar with
their preparation and a common format (which combines an introduction with
departmental and other programmes) is well understood. The main modification
which would be useful would be an expanded introduction which describes the
district plan's objectives, summarises progress so far and discusses changes this
year (for example further expansion of programmes or new projects) in the action
plan.
Subsequent years should he used for updating the data base and monitoring implementation.
An illustration of such a working calendar is given on the following page.
8.4 Laying out the plan
A single plan document is essential. Although it should be short, it should contain enough
data and discussion to show how its conclusions have been reached (see the definition of
transparency above). The following format is recommended:
introduction: describing the purpose of the plan and the broad outline of the
planning process. Include sections on:
o the role of the plan in district development

o very simply, how data are collected and analysed. Reference to important
matrices help but excessive technical description will hinder understanding.
o briefly, how consultation and decision making are carried out.
o how the plan will be implemented via action plans.
• district summary tables and district profile together with base maps. These are
discussed in Chapter 3.
• district objectives laid out in sequence with the reasons for each. The material for
this comes from Chapter 4.
• district programmes: each described briefly together with proposals for

change or modification. This section is based upon Chapter 5.
• ideas for new projects. These will probably still have to be worked out in
detail and introduced as the plan is revised. Procedures are described by Chapter
6.
• how the plan will be financed for the coming year based upon the summary
tables in Chapter 7.
90
Illustration
Working calendar for a district
Tasks to be performed
Year 1 The State Planning department indicates the
By July financial ceiling for the annual plan for Zilla
Parishads and Panchayats.
By first week of August Gram sabha identifies programmes and sends them
to Panchayat Samitis.
By middle of August Panchayat Samitis send them on to Zilla Parishad
with their recommendations.
By the end of September Zilla Pafishad prepares a district plan and sends it to
the Planning department and heads of various
departments at the state level.
By the end of October The State Development Council tentatively finalizes
the District Plan.
By mid-November The State departments consolidate the Zilla
Parishad schemes and build them into sectoral
programmes.
By January-February The resultant draft annual Action Plan is sent to the
National Planning Commission which fixes the
State Plan outlays and discussions are conducted
with the state officials.
By first week of March Based on the discussion, modifications, if any, are
made and state budget is presented to the
legislature.
April onwards The District Plan is implemented
Year 2 Update the District data. Monitor progress of
April to June Action Plan and commence the preparation of shelf
of new projects.
By September Prepare the District Plan for second year.

Year 3 Carry out mid-term review of progress and prepare
April to June modifications to the District Plan and forward it to
State Planning department.
July to September Prepare the Action Plan for the third year as per
above guidelines.
Year 4
As year 2. Same as in year 2.
Year 5 The updating of data base to commence in this year
and also simultaneously the plan document for the
fifth year to be prepared.
Year 6 The achievements and feedbacks are taken into
account in redrafting the District Plan for the sixth
year following the calendar of the first year.
91
8.5 Negotiating and reaching an agreement on the plan
As the opening section of this Chapter emphasised, implementation of the district plan will
depend upon successful negotiation.
Definition
Negotiation
Negotiation is the process by which the differences are discussed, common grounds
are identified, adjustments are made and agreement is reached. A plan rests
upon assumptions of common goals and ways of reaching those goals. If the plan
takes as one of its objectives the provision, as rapidly as possible, of clean drinking
water to every village or a push towards universal adult literacy, the assumption
is that all agree that clean water or literacy are both desirable and important
enough to claim scarce resources. This will not be (he case; not all will agree.
Whether at panchayat level or in the district administration, there will be strongly
expressed opinions about whether these objectives are really of primary importance
or whether other directions should be taken. There will be competing claims for
different villages or blocks. It is impossible to force a plan upon the public.
Rather, the planner, working with the district administration and peoples'
representatives needs to be able to secure agreement by persuasion that the plan
is fundamentally sound and by compromise on its details. As many interests as
possible will have to be reconciled if agreement is reached.
Who is likely to be involved in negotiation ? The structure of decision making at district

level is uniform across the States and the finalised district plans must be discussed and
approved by a district body which may:
combine elected, nominated and departmental members in the District Planning

Committees
predominantly elected. The obvious example of this kind of body is the Zilla
Parishad.
The district planner is likely to have the task of presenting plan proposals to either body and
help them to come to an agreement.
There are two kinds of negotiation:
positional bargaining
interest-based bargaining.
92
Positional bargaining
This type of negotiation assumes that interests are fundamentally different, but that trade-offs
(i.e., movement on one difference is rewarded by movement on another) are possible. The
opening positions of all the parties to the negotiation reflect their differences: as discussion
continues, each parties concede a little ground until agreement is reached. All lose a little but
this is outweighed by the value to all of reaching agreement. Bargaining over goods in a
market or bazaar is an example of positional bargaining. In most cases, the buyer ends up
paying more than his opening offer but still thinks the agreed price worth paying - and vice-
versa in the case of the seller.
Interest-based bargaining
This type of negotiation assumes that interests are not fundamentally different but that there
are common interests and needs. Once these have been clearly identified, the parties to the
negotiation jointly search for a variety of settlement options that will satisfy everybody.
Trade-offs may be made but these do not necessarily involve losses; and trade-offs may well
be seen in hindsight to have led to a wiser decision.
The negotiation process
Planners are not usually in a position to bargain positionally. They have little power and less
assets to trade and their contribution to negotiation must be one of facilitating compromise.
The assumption is usually made in the public sector that there are common beliefs,
expectations and goals. These are embodied in the Constitution, in Central and State
Government policy and in much of public debate including discussions in the press. The
relief of poverty, the generation of employment, the reduction of sickness, the widening of
human opportunity are all things which most people in India will accept and strongly support.
Where therefore proposals in the plan are directed towards these things, it should be assumed
that there is common ground and negotiation should be carried out in a way that gets there.
There are several steps in interest-based bargaining:
identify as far as possible the common ground upon which there is agreement.
begin the discussion with a statement of this common ground: for example when
a drinking water programme is being discussed, introduce the facts of the situation
in the district and why further provision should get priority.
make sure that all parties are informed about individual concerns and interests.
state the problem at issue - try to frame it in a way that it can be solved without
anybody losing.
identify general criteria that must be present in an acceptable settlement.
keep as many options as possible on the table.
93
work towards agreement. This involves:
o use the agreement-in-principle process (that is, come to a general level of

agreement and then deal with detailed problems and differences)
o try to reduce tension and to dispel individual feelings of being exposed to

criticism or under pressure to agree
o demonstrate trust: put yourself in a position where you occasionally give way
without reward
o listen and make sure all involved are aware that their position and interests are
being carefully considered
once agreement has been reached, identify what the agreement involves, restate the
content and write it down.
But interest-based bargaining has to co-exist in the real world with positional bargaining. It
is important for the district planner to know what the latter approach entails. It has the
following characteristics:
the other negotiator(s) are opponents: be hard on them,
a win for one means a loss for the other
the goal is to win as much as possible
concessions are a sign of weakness
there is a right solution - mine.
This is an exaggerated description perhaps, but one that is recognisable in real life.
The positional bargainer operates in certain ways. These are:

start by asking as much as possible: this is used to identify everybody else about
what is desired or to identify how far they will have to move to reach an
acceptable settlement.
keep quiet about what will be acceptable: secretive and non-trusting behaviour
hides what the bottom line really is.
bluff if necessary: this is used to make other negotiators grant concessions based
on misinformation.
make incremental concessions if one has to: these are small benefits used to bring
negotiators together.
cling to the bottom line as long as one can while making it as hard as possible for
others to push further.
The planner's task is to recognise the situations where positional bargaining of this kind is
taking place, to confine it to areas where it is probably unavoidable, and to steer the
negotiation as far as possible back to the search for compromise,
94
8.6 Conclusion
In this final chapter, we have reviewed some of the tasks facing the planner once the main
body of the plan is complete. In particular, the operational requirements of planning have
been discussed and the complex problem of negotiation taken up.
95
TRAINING MATERIALS FOR AGRICULTURAL PLANNING
No 1 CASE STUDY - South Nyanza Sugar Project - Kenya, 1983
No 2 CASE STUDY - Dakawa Rice Farm Project - Tanzania, 1983
No 3 - CASE STUDY - Mkata Ranch Project - Tanzania, 1983
No 4 - Proceedings of the FAO/EADB In-Scrvicc Training Course on Project Analysis - 1983
No 5 - Note on Monitoring and Evaluation Terminology - 1983
No 6 CASE STUDY - Ondo State Opticom Centres - Nigeria, 1983
No 7 CASE STUDY - Waling Lift Irrigation Project - Nepal, 1983
No 8 - ETUDE DE CAS - Projet de developpemenl de la production alimenlaire en Casamance -
Senegal, 1983 (non disponible)
No 9 CASE STUDY - Waling Lift Irrigalion Project - Dasi Project Analysis - Nepal, 1983
No 10 - Schema theorique dc deroulemcnt d'une operation dc dcveloppemenl rural, 1983
No 11 CASE STUDY - Credit and Marketing Project for Small-Holders in Swaziland, 1985
No 12 Training in Policy Impact Analysis - Preliminary Plan of Action for an FAO Training
Programme, 1988
No 13 - CASE STUDY - On Credit for the Wadi Arab Dam Area - Jordan, 1988
No 14 - Policy Analysis for Food and Agricultural Development : Basic Data Scries and their Uses,
1988
No 15 - Structural Adjustment Programmes in Sub-Saharan Africa, 1989
No 16 - Identification and Appraisal of Small-Scale Rural Energy Projects, 1989
No 17 - Design of Monitoring and Evaluation Syslems (Corum-Cankiri, Turkey), 1989
No 18 - Linkages between Policy Analysis, National Planning and Decentralized Planning for Rural
Development, 1989
No 19 - Manuel de preparation dcs micro realisations, 1988
No 20 - Preparac.ao participativa dos projcctos de dcsenvolvimenlo agricola/rural: Documento

metodologico, 1988
No 21 - Rural Area Development Planning; A Review and Synlhcsis of Approaches, 1990 (E/F)
DOCUMENTS FOR CAPPA (Computerized system for Agricultural and Population Planning Assistance
and training)
96
No 22 - CAPPA Manual, 1992 (E/F/S)
No 22/1 The use of scenarios in agricultural sector analysis - The CAPPA system and other
approaches, 1991 (E/F/S/A)
No 22/2 Setting targets for agricultural planning: From macroeconomic projections to commodity
balances: an illustration with the CAPPA system, 1991 (E/F/S/A)
No 22/3 Reference international data for CAPPA applications, 1992
No 22/4 Projection of agricultural supply in CAPPA, 1991 (E/F/S)
No 22/5 A case study of the use of the CAPPA system: Cappa - Ghana, 1993
No 22/6 Analysis of a Cappa Scenario, 1993 (E,F)
No 22/7 Population et main d'oeuvre dans CAPPA, 1994
No 23/1 Energy for Sustainable Rural Development Projects - A Reader, 1991
23/2 " " " - Case Studies, 1991
No 24 - Guide pour la formation de formateurs, 1991
No 25 Structural Adjustment and Agriculture, Report of an In-service Training Seminar for FAO
Staff, 1991
No 26 Planification r^gionale du secteur agricole: Notions et techniques economiques, 1991
No 27/1 - Rural Area Development Planning: Principles, Approaches, and Tools

27/2 of Economic Analysis. Volumes 1 and 2. 1991
No 28 Programmation et preparation de petites operations de developpement rural, 1992
No 29 Training for Decentralized Planning: Lessons from Experience, 1987 (E/F)
No 30 Economic Analysis of Agricultural Policies: A Basic Training Manual wilh Special
Reference to Price Analysis, 1992 (E/F/AJ-')
No 31 Agricultural Price Policy: Government and the Market, 1992 (E/F)
No 32 L'approche gestion des terroirs: ouvrage collectif. 1993
No 33 Trainer's Guide: Concepts, Principles, and Methods of Training with Special Reference to
Agricultural Development, 1993
No 34 - Guidelines on Social Analysis for Rural Area Development Planning, 1993
No 35 - Note de m£thodologte generale sur 1'analyse de filiere: utilisation de Panalyse de filiere pour
1'analyse economique des politiques, 1993
97
No 36 Analyse de filiere: application a I'analyse d'une filiere d'exportation, 1993
No 37/1 - District Planning: Lessons from India - Planning Guide, 1995
No 38/1 - Sustainability Issues in Agriculture and Rural Development Policies - A Training Package.
38/2 Volumes 1 and 2, 1994
Copies of these materials can be requested from:
Distribution and Sales Section

FAO
Via delle Terme di Caracalla
00100 Rome, Italy
providing full details on title and number.
98

District Planning Lessons From India, Planning Guide, 1995

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TRAINING

District Planning : MATERIALS

Lal Bahadur Shastri National

Agricultural Policy Support Services,

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

Concurrently with changes in macro-economic policies, the Government of India also

M. Cox N.C. Saxena

Chapter 1: Purpose of this Guide

1.1 Many district plans have been prepared in India

Chapter 2: How to use this Guide

Chapter 3: District Analysis

3.1 Purpose of this chapter

Chapter 4: District Objectives

4.1 Purpose of this chapter

Chapter 5: Analysis of Programmes and Schemes

5.1 Purpose of this chapter

Chapter 6: Planning New Projects

6.1 Purpose of this chapter

Chapter 7: Financing the Plan

7.1 Purpose of this chapter

Chapter 8: Putting the Plan into Practice

3.1 Land and agricultural resources matrix

3.3 Trend data table

4.1 Cumulative listing of potentials, problems, needs and gaps

5.1 Consistency table layout

7.1 Financial resources table

Ms Aneetha Benninger (Centre for Development Studies and Activities, Pune)

Dr S.P Jain (National Institute of Rural Development, Hyderabad)

Dr Ramachandran Pillai and Dr M.A Oomen (Institute of Management in Government,

Dr Om Prakash and Dr. J, George (National Institute of Rural Development. Hyderabad)

Professor A.K Sengupta (University of Lucknow)

PURPOSE OF THIS GUIDE

1.2 A better district plan has five important characteristics:

• it is simple to read and can be easily explained if necessary to many different

HOW TO USE THIS GUIDE

2.2 The layout of the Planning Guide

• reviewing and adjusting where possible district level programmes to enable

• planning financial allocations to enable the plan to be put into operation:

2.3 The presentation of material on the pages of the Guide

Each chapter is laid out in the same way.

2.5 Matrices, tables and formats

• most Government officers are familiar with them

This Guide is designed to produce a medium-term perspective district plan (approximately

 Firstly, planning has to be done within the calendar of district operations,

 It is important to keep concerned functionaries and peoples' representatives at

3.1 Purpose of this chapter

 the current physical, economic and social situation

which will make it possible in a later chapter to:

 assess the poverty and employment situation

3.2 Layout of the chapter

3.3 Assembling a district data matrix

A matrix, (plural - matrices) is a way of defining pieces of information visually and

Step 1: collect the data necessary under four headings:

 land, agricultural and allied resources

 we are reasonably certain it will be used in the analysis

 heading 1 - land, agricultural and allied resources:

o number of land holdings - subdivided into different size classes. This

o cropping pattern and production - gross cropped area, percentage

o land, water and other natural resources - adversely affected by

 heading 2 - human resources

o settlement and population - number of towns and inhabited villages.

o employment - subdivided into cultivators, agricultural labourers, household

o poverty distribution - subdivided into numbers beneath the poverty line

Firstly, planning has to be done within the calendar of district operations,

It is important to keep concerned functionaries and peoples' representatives at

the current physical, economic and social situation

assess the poverty and employment situation

land, agricultural and allied resources

we are reasonably certain it will be used in the analysis

heading 1 - land, agricultural and allied resources:

heading 2 - human resources

heading 4 - industry categorised by sectors. Show the number of firms in each

its natural resources have still to be fully exploited

it has not yet received a full range of government services

it lacks the infrastructure needed to exploit its potentials

the second row is used for the district total.

percentage disparity per unit area =

percentage disparity per unit population =

trends in the nature of industrial development.

it can be difficult to distinguish work or economic activities from household

national level bodies, e.g. Indian Council of Agricultural Research (ICAR).

forecasting by simple extrapolation (method 1)

relief and drainage

environmental vulnerability - should be identified for particular variables by

analyses of disparities in provision between blocks for a range of important variables.

a short district profile, supported by summary tables. This will be important in

a series of base maps to support the profile.

potentials and opportunities