Soon after independence , the Government of India under the leadership of

the then Prime Minister , Jawaharlal Nehru wanted rapid industrialization as

the path to economic growth and prosperity . In order to steer this growth
in a sustained and planned manner the institution of Union Planning
Commission was created . The strategy that was followed for
industrialization of the country's economy was called creating " commanding
heights of economy " which included such core sectors as steel , cement ,
coal , power etc. that is how the giant steel plants were set up in
different parts of the country . The Union Planning Commission was assigned
the onerous task of designing first Five Year Plan as a document to steer
growth in the determined path . Many such Five Year Plans followed suit .
The thrust of such Five Year Plans has been to allocate resources amongst
States in an effective and efficient manner after due consultative sessions
with States . While the UPC has over the years been able to discharge its
functions quite efficiently , a few criticisms have been voiced about its
hegemonistic manner of functioning. UPC is reported to have exceeded it
brief by arbitrarily allocating resources without reference to the
genuineness of demands of States . This has , say the critics , violated the
principle of federalism . Right now UPC has come under fire . The present
Government at the Centre has already announced that it will replace this
body by a suitable arrangement which will rectify the anomalies that have
crept into the functioning of UPC over the years . But such a move also has
its own critics who argue that the better solution would be to restructure
rather than replace the institution . This debate will continue for some
time till some clarity emerges . Whatever be the solution the country needs
an institution which should recognise the current reality of States emerging
as powerful partners in national growth .
Regards
Sarangi