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Jf:j [JjJJ
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INDIA 2005

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Land and the People

INDIA is one of the oldest civilisations in the world with a kaleidoscopic

variety and rich cultural heritage. It has achieved multifaceted socio-economic
progress during the last 57 years of its Independence. India has become selfsufficient in agricultural production and is now the tenth indus~i~!is~d
~untry jn tbt:'_.~()r~d and the ~!~__Tl~tion _to have gone into outer space
to conquer nature for tht:' ~ne~! of the people. It covers an area of
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by the Great Himalayas in the north, it stretches southwards and at the Tropic
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east and the Arabian Sea on the west.
Lying e~~l.Yi!!_th~.Tlorthern hemisp~re, the mainland extends between
latitudes 84~ ~IlQ_ 376'._.north, longitudes 687' and 9725' east and measures
abo~ii14._km_from-~or!h_~I?~~uthbetween -th~' extieme latitudes and about
2,933Jgnfrol11.t~ast to west between the extreme longitudes. It has a land frontier
Of about . 15,206- kID. The total length of the co~HiIw of themamIand;Lal<S1ladweep Islands and Andaman and Nicobar'1SIands, is 7,516.6 kn)..

Countries having a common border with India are Afghanistan and Pakistan
to the north-west, China, Bhutan and Nepal to the north, Myanmar to the
east and Bangladesh to the east of West Bengal. Sri Lanka is separated from
India by a narrow channel of sea formed by the Palk Strait and the Gulf of

The mainland comprises four regions, namely, the great mountain zone, plains
of the Ganga and the Indus, the desert region and the southern peninsula.
The Himalayas comprise three almost parallel ranges interspersed
with large plateaus and valleys, some of which, like the Kashmir and Kullu
valleys, are fertile, extensive and of great scenic beauty. Some of the highest
peaks in the world are found in these ranges. The high altitudes admit travel
only to a few passes, notably the Jelep La and Nathu La on the main IndoTIbet trade route through the Chumbi Valley, north-east of Darjeeling and
Shipki La in the Satluj valley, north-east of Kalpa (Kinnaur). The mountain
wall extends over a distance of about 2,400 km with a varying depth of 240
to 320 kIn. In the east, between India and Myanmar and India and Bangladesh,

Provisional as on 31 March 1982

India 2005

hill ranges are much lower. Garo, Khasi, Jaintia and Naga Hills, running
almost east-west, join thl' chain to Mizo and Rkhine Hills running north-south.
The plains of the Ganga and thl' Indus, about 2,400 km long and 240
to 320 km broad, an' formed by basins of three distinct river systems - the
Indus, the Ganga and the Brahmaputra. They are one of the world's greatest
stretches of flat alluvium and also one of the most densely populated areas
on the earth. Between the Yamuna at Delhi and the Bay of Bengal, nearly
1,600 km away, there is a drop of only 200 metres in elevation.
The desert region can be divided into two parts - the great desert and
the little desert. The great desert extends from the edge of the Rann of Kuchch
beyond the Luni river northward. The whole of the Rajasthan-Sind frontier
runs through this. The little desert extends from the Luni between Jaisalmer
and Jodhpur up to the northern wastes. Between the great and the little deserts
lies a zone of absolutely sterile country, consisting of rocky land cut up by
limestone ridges.
The Peninsular Plateau is marked off from the plains of the Ganga and
tht' Indus by a mass of mountain and hill ranges varying from 460 to
1,220 metres in height. Prominent among these are the Aravalli, Vindhya,
Satpura, Maikala and Ajanta. The Peninsula is flanked on the one side by
the Eastern Ghats where average elevation is about 610 metres and on the
other by the Western Ghal,; where it is generally from 915 to 1,220 metres,
rising in places to over 2,440 metres. Between the Western Ghats and the
Arabian Sea lies a narrow coastal strip, while between Eastern Ghats and the
Bay of Bengal there is a broader coastal area. The southern point of plateau
is formed by the Nilgiri Hills where the Eastern and the Western Ghats meet.
The Cardamom Hills lying beyond may be regarded as a continuation of the
Western Ghats.
The geological regions broadly follow the physical features and may be
grouped into three regions: the Himalayas and their associated group of
mountains, the Indo-Ganga Plain and the Peninsular Shield.
The Himalayan mountain belt to the north and the Naga-Lushai
mountain in the east, are the regions of mountain-building movement. Most
of this area, now presenting some of the most magnificent mountain scenery
in the world, was under marine conditions about 600 million years ago. In
a series of mountain-building movements commencing about 70 million years
ago, the sediments and the basement rocks rose to great heights. The
weathering and erosive agencies worked on these to produce the relief seen
today. The Indo-Ganga plains are a great alluvial tract that separates the
Himalayas in the north from the Peninsula in the south.
The Peninsula is a region of relative stability and occasional seismic
disturbances. Highly metamorphosed rocks of the earliest periods, dating back
a.<; far as 380 crore years, occur in the area; the rest being covered by the

Land and the People

coastal-bearing Gondwana formations, lava flows belonging to the Deccan

Trap formation and younger sediments.

The river systems of India can be classified into four groups viz., (i) Himalayan
rivers, (ii) Deccan rivers, (iii) Coastal rivers, and (iv) Rivers of the inland
drainage basin. The Himalayan rivers are formed by melting snow and
glaciers and therefore, continuously flow throughout the year. During the
monsoon months, Himalayas receive very heavy rainfall and rivers swell,
causing frequent floods. The Deccan rivers on tht> other hand are rainfed and
therefore fluctuate in volume. Many of these are non-perennial. The Coastal
streams, especially on the west coast are short in length and have limited
catchment areas. Most of them are non-perennial. The streams of inland
drainage basin of western Rajasthan are few and far between. Most of them
are of an ephemeral character.
The main Himalayan river systems are those of the Indus and the GangaBrahmaputra-Meghna system. The Indus, which is one of the great rivers of
the world, rises near Mansarovar in Tibet and flows through India and
thereafter through Pakistan and finally falls in the Arabian sea near Karachi.
Its important tributaries flowing in Indian territory are the Sutlej (originating
in Tibet), the Beas, the Ravi, the Chenab and the Jhelum. The GangaBrahmaputra-Meghna is another important system of which the principal subbasins are those of Bhagirathi and the AJaknanda, which join at Dev Prayag
to form the Ganga. It traverses through UttaranchaJ, Uttar Pradesh, Bihar and
West Bengal. Below RajmahaJ hills, the Bhagirathi, which used to be the main
course in the past, takes off, while the Padma continues eastward and enters
Bangladesh. The Yamuna, the Rarnganga, the Ghaghra, the Gandak, the Kosi,
the Mahananda and the Sone are the important tributaries of the Ganga.
Rivers Chambal and Betwa are the important sub-tributaries, which join
Yamuna before it meet." the Ganga. The Padma and the Brahmaputra join
inside Bangladesh and continue to flow as the Padma or Ganga. The
Brahmaputra rises in Tibet, where it is known as Tsangpo and runs a long
distance till it crosses over into India in Arunachal Pradesh under the name
of Dihang. Near Passighat, the Debang and Lohit join the river Brahmaputra
and the combined river runs all along the Assam in a narrow valley. It crosses
into Bangladesh downstream of Dhubri.
The principal tributaries of Brahmaputra in India are the 5ubansiri, Jia
Bhareli, Dhansiri, Puthimari, Pagladiya and the Mana!: The Brahmaputra in
Bangladesh receives the flow of Tista, etc., and finally falls into Ganga. The
Barak river, the Head stream of Meghna, rises in the hills in Manipur. The
important tributaries of the river are Makku, Trang, Tuivai, Jiri, Sonai, Rukni,
Katakhal, Dhaleswari, Langachini, Maduva and Jatinga. Barak continues in
Bangladesh till the combined Ganga-Brahmaputra join it near Bhairab Bazar.

In the Deccan region. most of the major river systems flowing generally
in east direction fall into Bay of Bengal. The major east flowing rivers are

India 2005

Godavari, Krishna, Cauwry, Mahanadi, etc. Narmada and Tapti are major
West flowing rivers.
Tht, Godavari in thl' southern Peninsula has the second largest river
basin cOVl'ring 10 pcr cent of the area of India. Next to it is the Krishna basin
in the region, while the Mahanadi has the third largest basin. The basin of
the Narmada in the uplands of tilt' Deccan, flowing to the Arabian Sea, and
of the Kaveri in tht south, falling into the Bay of Bt'ngal are about the same
size, though \>vith different character and shape.
There are numerous coastal rivers, which are comparatively small. While
only handful of such rivers drain into the sea ncar the delta of east cost, there
are as rn,my as hOO such rivers on thl' west coast.
A few rivers in Rajasthan do not drain into the sea. They drain into salt
lakes and get lost in sand with no outlet to sea. Besides these, there are the
desert rivers which flow for somt' distance and are lost in the desert. These
an' Luni and others, Machhu, Rupen, Saraswati, Banas and Ghaggar.


Thl' climate of India may be broadly described as tropical monsoon type.

There are four seasons: (i) winter (January-February), (ii)"llot weather summer
(March-May); (iii) rainy south-western monsoon (June-September) and
(iv) post-monsoon, also known as north-east monsoon in the southern
Peninsula (October-December). India's climate is affected by two seasonal
winds - thl' north-east monsoon and the south-west monsoon. The north-cast
monsoon commonly known itS winter monsoon blows from land to sea
whereas south-west monsoon known as summer monsoon blows from sea to
land after crossing the Indian Ocean, the Arabian Sea and the Bay of Bengal.
The south-west monsoon brings most of the rainfall during the year in the

With a wide range of climatic conditions from the torrid to the arctic, India
has a rich and varied vegetation, which only a few countries of comparable
sizto' possess. India can be divided into eight distinct-floristic-regions, namely,
the western Himalayas, the eastern Himalayas, Assam, the Indus plain, the
Ganga plain, the Deccan, Malabar and the Andamans.
The Western Himalayan region extends from Kashmir to Kumaon. Its
temperate zone is rich in forests of chir, pine, other conifers and broad-leaved
temperate trees. Higher up, forests of deodar, blue pine, spruce and silver
fir occur. The alpine zone extends from the upper limit of the temperate zone
of about 4,750 metres or even higher. The characteristic trees of this zone are
high-level silver fir, silver birch and junipers. The eastern Himalayan region
extends from Sikkirn eastwards and embraces Oarjeeling, Kurseong and the
adjacent tract. The temperate zone has forests of oaks, laurels, maples,
rhododendrons, alder and birch. Many conifers, junipers and dwarf willows

Land and the People

also occur here. The Assam region comprises the Brahmaputra and the Surma
valleys with evergreen forests, occasional thick clumps of bamboos and tall
grasses. The Indus plain region comprises the plains of Punjab, western
Rajasthan and northern Gujarat. ft is dry and hot and supports natural
vegetation. The Ganga plain region covers the area which is alluvial plain
and is under cultivation for wheat, sugarcane and rice. Only small areas
support forests of widely differing types. The Deccan region comprises tht~
entire table land of the Indian Peninsula and supports vegetation of various
kinds from scrub jungles to mixed deciduous forests. The Malabar region
covers the excessively humid belt of mountain country parallel to the west
coast of the Peninsula. Besides being rich in forest vegetation, this region
produces important commercial crops, such as coconut, betelnut, pepper,
coffee and tea, rubber and cashewnut. The Andaman region abounds in
evergreen, mangrove, beach and diluvial forests. The Himalayan region
extending from Kashmir to Arunachal Pradesh through Nepal, Sikkim,
Bhutan, Meghalaya and Nagaland and the Deccan Peninsula is rich in
endemic flora, with a large number of plants which are not found elsewhere.
India is rich in flora. Available data place India in the tenth position
in the world and fourth in Asia in plant diversity. From about 70 per cent
geographical area surveyed so far, 47,000 species of plants have been described
by the Botanical Survey of India (BSI), Kolkata. The vascular flora, which
f(;rms the conspicuous vegetation cover, comprises 15,000 species. Of these,
more than 35 per cent is endemic and has so far not been reported anywhere
in tht' world. The flora of the country is being studied by the BSI and its
nine circle/field offices located throughout the country along with certain
universities and research institutions.
Ethno-botanical study deals with the utilisation of plants and plant
products by ethnic races. A scientific study of such plants has been made by
BSI. A number of detailed ethno-botanical explorations have been conducted
in different tribal areas of the country. More than 800 plant species of ethnobotanical interest have been collected and identified at different centres.
Owing to destruction of forests for agricultural, industrial and urban
development, several Indian plants are facing extinction. About 1,336 plant
species are considered vulnerable and endangered. About 20 species of higher
plants are categorised as possibly extinct as these have not been Sighted during
the last 6-10 decades. ~.._E.!!ngs out an inve~~~!L..?_f en~a._r:tg.~d plants in
the form of a publication titled Red Data Book.
The Zoological Survey of India (251), with its headquarters in ~ and
16 regional stations is responsible for surveying the faunal resources of India.
Possessing a tremendous diversity of climate and physical conditions, India
has great variety of fauna numbering 89,451 species. Of these, protista number
2,577, mollusca 5,070, abthropoda 68,389, amphibia 209, mammalia 390,
reptilia 456, members of protochordata 119, pisces 2,546, aves 1,232 and other
invertebrates 8,329.

India 2005

The mammals include the majestic elephant, tht, gaur or Indian bisonth(> largest of existing bovines, the great Indian rhinoceros, the gigantic wild
sheep of the Himalayas, tht swamp deer, thl' thamin spotted deer, "j/~ai, the
four-horned antelope, the Indian antelope or black-buck - the only
representatives of these genera. Among the cats, the tiger and lion are the
most magnificent of all; other splendid creatures such as the clouded leopard,
the snow leopard, the marbled cat, etc., are also found. Many otht'r species
of mammals are remarkable for their beauty, colounng, grace and uniqueness.
Several birds, like pheasants, geesl', ducks, mYllalJs, parakeets, pigeons,
cranes, hornbills and sunbirds inhabit forests and wetlands.
Rivers and lakes harbour crocodiles and ~lwria/s, the latter being the
only representative of crocodilian order in the world. The salt water crocodile
is found along thl' eastern coast and in the Andaman and Nicobar Islands.
A project for breeding crocodiles started in 1974, has been instrumental in
saving the crocodile from extinction.
The great Himalayan range has a very interesting variety of fauna that
includes the wild sheep and goats, markhor, ibex, shrew and tapir. The panda
and the snow leopard are found in the upper reaches of the mounta~.
Depletion of vegetative cover due to expansIOn of agriculture, habitat
destruction, over-exploitation, pollution, introduction of toxic imbalance in
community structure, epidemics, floods, droughts and cyclones, contribute to
the loss of flora and fauna. More than 39 species of mammals, 72 species of
birds, 17 species of reptiles, three species of amphibians, two species of fish
and a large number of butterflies, moth and beetles arc considered vulnerable
and endangered.

The Census of India 2001, is historic and epoch making being the first census
of the twenty-first century and the third millennium. It reveals benchmark
data on the state of abundant human resources available in the country, their
demography, culture and economic structure at a juncture, which marks a
centennial and millenial transition.
The population enumeration of 2001 census was undertaken during
9-28 February 2001 with a revisional round from 1-5 March 2001. The Census
moment, the referral time at which the snapshot of the population is taken
was 00.00 hours of the 1 March 2001. Until the 1991 Census, the sunrise of
1 March was taken to be the census moment. The houseless population, as
has been the usual practice, was enumerated on the night of 28 February 2001.

India's population as on 1 March 2001 stood lat 1,028 million (532.1 million
males and 496.4 million females). India accounts for a meagre 2.4 per cent

Land and the People

of the world surface area of 135.79 million sq km. Yet, it supports and sustains
a whopping 16.7 per cent of the world population.
The population of India, which at the tum of the twentieth century was
around 238.4 million, increased to r~ach 1,028 million at the dawn of the
twenty-first century. The population of India as recorded at each decennial
census from 1901 has grown steadily except for a decrease during 1911-21.
Decadal growth of population from 1901 is shown in table 1.1.
Table 1.2 gives the selected indicators of population growth in different
States and Union Territories. The per cent decadal growth of population in
the inter-censal period 1991-2001 varies from a low of 9J2.J.!:t1'S..erala to a very
high 64.41 In..N.agaland. Delhi with 46.31 per cent, Chandigarh with 40.33 per
cent aMsikktmwith 32.98 per cent registered very high growth rates. In
addition to Kerala, Tamil Nadu and Andhra Pradesh registered low growth
rates during 1991-2001. The per cent decadal growth rate has declined during
the census decade 1991-2001 as compared to the previous census decade, in
all the States/Union Territories except Haryana, Uttar Pradesh, Bihar, Sikkim,
Nagaland, Manipur, Gujarat, Daman and Diu and Dadra and Nagar Haveli.
The States and Union Territories that have shown increases in per cent decadal
growth together constitute about 32 per cent of India's popUlation.

One of the important indices of population concentration is the density of
population. It is defined as the number of persons per sq km. The population
density of India in 2001 was 324 per sq km,.
The density of population was increased in all States and Union
Territories between 1991 and 2001. Among major states, West _~~J}gaLa still
the most thickly yoC.!-!~ with a popUlation density--of 903 in 2001.
Bihar rsnowtI\e second highest densely populated state pushing Kerala to
the third place. Ranking of the States and Union Territories by density is
shown in table 1.3.

Sex ratio, defined as the number of females per thousand males is an
important social indicator to measure the extent of prevailing equality between
males and females in a society at a given point of time. The sex ratio in the
country had always remained unfavourable to females. It was 972 at the
beginning of the twentieth century and thereafter showed continuous decline
until 1941. The sex ratio from 1901-2001 is given in table '1..4.

For the purpose of census 2001, a person aged seven and above, who can
both ~and write with understanding In any language, is treat~ a~rate.
A person, who can only read but cannot write, is not literate. 'iI\ the censuses
prior to 1991, children below five years of age were necessarily treated as

India 2005





In .....















v, rr-,














Land and the People

The provisional results of 2001 reveal that there has been an increase
in literacy in the country. The litt.>racy rate in the country is 64.84 per cent,
75.26 for males and 53.67 for females. The steady improvement in literacy
is apparent from the table 1.6.
Kerala retained its position by being on top with a 90.86 per cent literacy
rate, closely followed by Mizoram (88.80 per cent) and Lakshadweep (86.66
per cent). Bihar with a literacy rate of 47.00 per cent ranks last in the country
preceded by Jharkhand (53.56 per cent) and Jammu and Kashmir (55.52 per
cent). Kerala also occupies the top spot in the country both in male literacy
with 94.24 per cent and female literacy with 87.72 per cent. On the contrary,
Bihar has recorded the lowest literacy rates both in case of males (59.68 per
cent) and females (33.12 per cent). Table 1.5 shows the literacy rate among
persons, male and female in States and UTs, and their ranking.

in 2()()l

State 1
Union territori~





Uttar Pradesh
West Bengal
Andhra Pradesh
Tamil Nadu
Madhya Pradesh
Jammu and Kashmir'
Himachal Pradesh


Per cent to total

Population of India

in 1991
























































India 2005














Arunachal Pradesh











Andaman and Nicobar Islands






Dadra and Nagar Haveli






Daman and Diu













India and M,mipur figures are final and include estimated figures for th~ of the three
sub-divisions viz., Mao Maram, Paomata and Purul of Senepati district of Manipur as
population census 2001 in these thn.>e sub-divisions were cancl'1led due to technical and
administrative reason~ although a population ct'nsus was carried out in these sub-division
also as per schedule,


The 1991 Census could not bP held owing to disturbed conditions prevailing in Jammu
and Kashmir. Hence the population figure~ for 1991 of Jammu and Kashmir have been
worked out by 'interpolation' on the basis of 2001 final population.


in 20(JI

Union territories




Daman and Diu
Wt'St Bengal
Uttar Pradesh
Tamil Nadu
Dadra and Nagar Hawli
Andhra Pradesh
Madhya Pradesh



in 1991







1 ""





Land and the People



Himachal Pradesh
Jammu and Kashmir
Andaman and Nicobar Islands
Arunachal Pradesh













Manipur figures include estimated figures for the three sub-divisions, viz., Mao Maram,
Panmata and Purul of Senapti district of Manipur as population census 2001 in these
three sub-divisions were cancelled due to technical and administrative reasons.



Census Year

Sex Ratio
(females per 1,000 males)
























For 1981. interpolated figures for Assam have been used.


For 1991, interpolated figures based on final population of 2001 census for Jammu
and Kashmir have been used.


India figures for 2001 census are final and exclude those of the three sub-<iivisions,
viz., Mao Mar"m, Paomata and Puru! of Senapati district of Manipur as population
Census 2001 in these three sub-divisions were cancelled due to technical and
administrative reasons although a population census was carried out In these subdivisions also as per schedule.

India 2005











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Land and the People

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India 2005


Census Year




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Notes :


Literacy rates for 1951, ]961 and 1971 Censuses relates to population aged five years
and above. The rates for the 1981, 1991 and 2001 Censuses relate to the population
aged seven years and above.


TIll' 1981 Literacy rates exclude Assam where the 1981 Census could not be conducted.


The 1991 Literacy rates exclude Jammu and Kashmir where the 1991 Census could not
be conducted due to disturbed conditions.



Union Territory


Scheduled Caste
of total





Scheduled Tribe
of total









































Jammu and Kashmir

Himadloll Pradt.'tih







Uttar Pradesh






Arunachal Pradesh

































































'94.46.' /


Land and the People


West Bengal




























Madhya Pradesh














Daman and Diu






Dadra and Nagar Haveli
















Andhra Pradesh




























1iunil Nadu







Andaman and Nicobar Islands








India and Manipur figures exclude those of the three sub-divi.'lions, viz., Mao Maram,
Paomata and Purul of Senapati district of Manipur as population census 2001 in
these three sub-divisions were cancelled du{' to technical and administrative reasons
although a population census was carried out in these sub-division also 8.<; pM'


Census Year



Note :

Percentage of
lolal population

Population (Million)










India 2005

Tilt' 1'141 Census could not be held owing to disturbed conditions prevailing in Jammu
and K.lshmir. Hence the population figure. for 1991 of Jammu and Kashmir have been
worked (Jut hv 'mtcrpol,ltion' on the basis of 200] final population.


The 1'1111 census could Itot be held in AS5am. The figures tor 1981 for Assam have been
worked out by interpolation.


Population in '000s

l,on,O()(] and aboVl'
















5o,mll . 'I'!,m








2(1,l)OO - 49,'I'!9










- 19,'19'1








5,()()(] .










Less than S,()()(l





















All c1assse~
Urban population as
pen:entag.. to total
Population 1

Excludes figures for J,lmmu ,md Kashmir in 1991 wheT{' 1991 Census was not conducted
owing to disturb,mn's. For comparative purposes, the figures of Jammu and Kashmir have
also bt.'tm ('xcluded for 1901 tn 1981.
Excludes figures for Assam in 1'181 where census of 1981 was not held.
}, Data includes Jammu and Kashmir and Assam.



States/ UTs

Jammu and Kashmir





Himachal Pradesh

1,(J()() to

2,(J()() to



5,000 to i1O,(J()() and Total No,

9 999 I above fof inhabited
























































Uttar Pradesh






97,942 v
















Land and the People



Arunachal Pradesh












































WI'S! Bengal'





























Madhya Pradesh
















Daman and Diu


Dadra and Nagar Haveli













498 '







27,481 . /









Andhra Pradesh
















lamil Nadu








Andaman and
Nicobar Islands














India and Manipur figures exclude those of the three sutKiivisions, viz., Mao Maram,
Paomata and Purul of Senapati district of Manipur as population census 200] in these three
sub-divisions were cancelled due to technical and administrative reasons although a
population census was carried out in these sub-divisions also as per schedule.


Seventeen villages in Bihar and ten villages in West Bengal spread across two sub-districts
and therefore, counted twice.


Land and the People


















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National Symbols


THE National flag is a horizontal tricolour of deep saffron (kesaria) at the

top, white in the middle and dark green at the bottom in equal proportion.
The ratio of width of the flag to its length is t!Yo to three. In thl' centre of
the white band is a navy-blue wheel which represents the chakra. Its design
is that of the wheel which appears on the abacus of the Sarnath Lion Capital
of Ashoka. Its diameter approximates to the width of the white band and it
has 24 spokes. The design of the National Flag was adopted by the
Constituent Assembly of India on 22 July 1947.
Apart from non-statutory instructions issued by the Government from
time to time, display of the National Flag is governed by the provisions of
the Emblems and Names (Prevention of Improper Use) Act, 1950 (No. 12
of 1950) and the Prevention of Insults to National Honour Act, 1971 (No.
69 of 1971). The Flag Code of India, 2002 is an attempt to bring together
al1 such laws, conventions, practices and instructions for the guidance and
benefit of all concerned.
The Flag Code of India, 2002, takes effect from ~ January 2002 and
supersedes the 'Flag Code-lndias' as it existed. As per the provisions of
the Flag Code of India, 2002, there shall be no restriction on the display of
the National Flag by members of general public, private organisations,
educational institutions, etc., except to the extent provided in the Emblems
and Names (Prevention of Improper Use) Act, 1950 and the Prevention of
Insults to National Honour Act, 197] and any other law enacted on the subject.
The state emblem is an adaptation from the Samath Lion Capital of Ashoka.
In the original, there are four lions, standing back to back, mounted on an
abacus with a frieze carrying sculptures in high relief of an elephant, a
galloping horse, a bull and a lion separated by intervening wheels over a bellshaped lotus. Carved out of a single block of polished sandstone, the Capital
is crowned by the Wheel of the Law (Dhamla Chalcra).
In the state emblem, adopted by the Government of India on 26 January
1950, only three lions are visible, the fourth being hidden from view. The
wheel appears in relief in the centre of the abacus with a bull on right and
a horse on left and the outlines of other wheels on extreme right and left.
The bell-shaped lotus has been omitted. The words Satyameva Jayate ,from
Mundaka Upanishad, meaning 'Truth Alone Triumphs', are inscribed below
the abacus in ~1IQg~pt.

India 2005


The song lana-gana-mana, composed originally in Bengali by Rabindranath

Tagore, was adopted in its Hindi v~~_ion by the Constituent Assembly as
the National Anthem of India-C;-~ 24 January 1950. It was first sung on
27 December 1911 at the Calcutta Session of the Indian National Congress.
The complete song consists of five stanzas. The first stanza contains the full
version of the National Anthem:
!ana-galla-marw-adhiltayaka, jaya III.'
Pu tl jab-S i ndl1-G ujarat-Ma ra tlta
Dravida- Ll tkala- Ba Ilgll
Vi tldh ya- H i nrachllla- Yamu lla-Ganga
Uchchala- laladhi-tarallga.
Tava sllUbha naml' jage,
Tava shublw asisa mange,
Galre tava jaYIl gatfln,

Jana-gana-mallgala-dayakll jaya he
laya he, jaya Ill', jaya Ill',
!ayll jaya jaya, jaya he!

Playing time of the full version of the national anthem is approximately

52 seconds. A short version consisting of the first and last lines of the stanza
(playing time approximately 20 seconds) is also played on certain occasi~ns.
The following is Tagore's English rendering of the anthem :
Thou art the ruler of the minds of all people,
dispenser of India's destiny.
Thy name rouses the hearts of Punjab, Sind,
Gujarat and Maratha,
Of the Dravida and Orissa and Bengal;
It echoes in the hills of the Vindhyas and Himalayas,

mingles in the music of Jamuna and Ganges and is

chilllted by the waves of the Indian Sea.
They pmy for thy blessings and sing thy praise.
The saving of all people waits in thy hand,
thou dispenser of India's destiny.
Victory, victory, victory to thee.

National Flag

National Emblem

National Symbols


The song Vande Mataram, composed in sanskrit by Bankimchandra Chatterji,
was a source of inspiration to the people in their struggle for freedom. It has
an equal status with Jana-gana-mana. The first political occasion when it was
sung was the 1896 session of the Indian National Congress. The following
is the text of its first stanza

Vande Mataram!
Sujalam, supha/am, malayaja shitalam,
Shasyashyamalam, Mataram!
Shubhrajyotsna pu/akitayaminim,
Phullakusumita drumadala shobhinim,
Suhasinim sumadhura bhashinim,
Sukhadam varadam, Mataram!
The English translation of the stanza rendered by Sri Aurobindo in prose 1
is :
I bow to thee, Mother,
richly-watered, richly-fruited,
cool with the winds of the south,
dark with the crops of the harvests,
The Mother!
Her nights rejoicing in the glory of the moonlight,
her lands clothed beautifully with her trees in flowering bloom,
sweet of laughter, sweet of speech,
The Mother, giver of boons, giver of bliss.
The national calendar based on the Saka Era, with Clj_aitra as its first month
and a normal year of 365 days was adopted from 22 March 1957 along with
the Gregorian calendar for the following official purposes: (i) Gazette of India,
(ii) news broadcast by All India Radio, (iii) calendars issued by the Government
of India and (iv) Government communications addressed to the members of
the public.
Uates of the national calendar have a permanent correspondence with
dates of the Gregorian calendar, 1 Chaitra falling on 22 March normally and
on 21 March in leap year.

1 As published in Volume Eight of Sri Auroblndo Birth Centenary Library, Popular Edition 1972


lndi3 2005


The magnificent tiger, Panthera tigris is a striped animal. It has a thick yellow
coat of fur with dark stripes. The combination of grace, strength, agility and
enormous power has earned the tiger its pride of place as the national animal
of India. Out of eight races of the species known, the Indian race, the Royal
Bengal Tiger, is found throughout the country except in the north-western
region and also in the neighbouring countries, Nepal, Bhutan and Bangladesh.
To check the dwindling population of tigers in India, 'Project_TIger' was
launched in April 1973. So far, 2? tiger reserves have
established in
the country unaerThr;; project, covering an area of 37,761 sq km.



The Indian peacock, Pavo cristatus, the national bird of India, is a colourful.
swan-sized bird, with a fan-shaped crest of feathers, a white patch under the
eye and a long, slender neck. The male of the species is more colourful than
the female, with a glistening blut' breast and neck and a spectacular bronzegrt'en train of around 200 elongated feathers. The femalt' is brownish, slightly
smaller than the male and lacks the train. The elaborate courtship dance of
the male, fanning out the tail and preening its feathers is a gorgeous sight.

Lotus (NelumllO Nllcipera Gaertn) is the National Flower of India. It is a
sacred flower and occupies a unique position in the art and mythology of
ancient India and has been an auspicious symbol of Indian culture since time
India is rich in flora. Currently available data place India in the tenth
position in the world and fourth in Asia in plant diversity. From about 70
per cent geographical area surveyed so far, 47,000 species of plants have bt.>en
described by the Botanical Survey of India (B51).

The Polity

~ auu.1MIP'J' ~

INDIA, a Union of States, is a Sovereign Socialist Secular Democratic Republic
with a parliamentary system of government. The Republic is governed in
terms of the Constitution, which was ado'p-ted by Constituent Assembly on
26 November 1949 and came into force on 26 January 1950.

---------- -----

The Constitution which envisages parliamentary form of government is

federal in structure with unitary features. The President of India is constitutional
head of executive oltheUnion. Article 74(1) of the Constitution provides that
there shall be a Council of Ministers with the Prime Minister as head to aid
and advise President who shall in exercise of his functions, act in accordance
with such advice. Real executive power thus vests in Council of Ministers
with Prime Minister as head. Council of Ministers is collectively responsible
to the House of the People (Lok Sabha). Similarly, in states, Governor is head
of executive, but it is the Council of Ministers with Chief Minister as head
in whom real executive power vests. Council of Ministers of a state is
collectively responsible to the Legislative Assembly.
The Constitution distributes lea~l!ltive _power between Parliament and
state legislatures and provides for vesting of residual powers in Parliament.
Power to amend the Constitution also vests in Parliament. The Constitution
has provision for independence of judiciary, Com..!rolle!_and Auditor-General,
Public__~rvice_~_?mmissions and CllkLEle.cti.on Commissioner.


India comprises 2lf States and seven Union Territories. They are: Andhra
Pradesh, Assam, Arunachal Pradesh, Bihar, Chhattisgarh, Goa, Gujarat,
Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram,
Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttaranchal,
Uttar Pradesh and West Bengal. Union Territories are : Andaman and Nicobar
Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi,
Lakshadweep and Pondicherry.
The Constitution of India provides for a si!ts!e citize~hi_.p for the whole of
India. Every person who was at the commencement of the Constitution
(26 January 1950) domiciled in the territory of India and: (a) who was born
in India; or (b) either of whose parents was born in India; or (c) who has
been ordinarily resident in India for not less than five years became a citizen
of India. The Citizenship Act, 1955, deals with matters relating to acquisition,
determination and termination of Indian citizenship after the commencement
of the Constitution.


India 2005

'The Constitution offers all citizens, individually and collectively, some basic
freedoms. Thest' are guaranteed in the Constitution in the form of six broad
categories of Fundamental Rights which are justiciable. Article 12 to 12
contained in Part III of the Constitution deal with Fundamental Rights. These
are : (i) right to equality including equality before law, prohibition of
discrimination on grounds of religion, race, caste, sex or place of birth and
equality of opportunity in matters of employment; (ii) right to freedom of
speech and expression; assembly; association or union; movement; residence;
and right to practice any profession or occupation (some of these rights are
subject to security of the State, friendly relations with foreign countries, public
order, decency or morality); (iii) right against exploitation, prohibiting all
forms of forced labour, child labour and traffic in human beings; (iv) right
to freedom of conscience and free profession, practice and propagation of
religion; (v) right of any section of citizens to conserve their culture, language
or script and right of minorities to establish and administer educational
institutions of their choice; and (vi) right to constitutional remedies for
enforcement of Fundamental Rights.

By the 42nd Amendment of the Constitution, adopted in 1976, Fundamental
Duties of the citizens have also been enumerated. Article 51 'N contained
in Part IV A of the Constitution deals with Fundamental Duties. These enjoin
upon a citizen among other things, to abide by the Constitution, to cherish
and follow noble ideals which inspired India's struggle for freedom, to defend
the country and render national service when called upon to do so and to
promote harmony and spirit of common brotherhood transcending religious,
linguistic and regional or sectional diversities.


The Constitution lays down certain Directive Principles of State Policy which
though n~justiciablel are 'fundamental in _governance of the country' and
it is the duty of the State to apply these principles in making laws.- These
lay down that the State shall strive to promote the welfare of people by
securing and protecting as effectively as it may a social order in which
justice--social, economic and political-shall form in all institutions of
national life. The State shall direct its policy in such a manner as to secure
the right of all men and women to an adequate means of livelihood, equal
pay for equal work and within limits of its ecohomic capacity and development,
to make effective provision for securing the right to work, education and to
public assistance in the event of unemployment, old age, sickness and
disablement or other cases of undeserved want. The State shall also endeavour
to secure to workers a living wage, humane conditions of work, a decent
standard of life and full involvement of workers in management of

The Polity


In the economic sphere, the State is t", direct its policy in such a maImer
as to secure distribution of ownership and control of material resources of
community to subserve the common good and to ensure that operation of
economic system does not result in concentration of wealth and means of
production to common detriment.
Some of the other important directives relate to provision of opportunities
and facilities for children to develop in a healthy manner, free and compulsory
education for all children up to the age of 14; promotion of education and
economic interests of scheduled castes, scheduled tribes and other weaker
sections; organisation of village l1allchayats; separation of judiciary from
executive, promulgation of a uniform civil code for whole country; protection
of national monuments; promotion of justice on a basis of equal opportunity;
provision of free legal aid; protection and improvement of environment and
safeguarding of forests and wildlife of the country and promotion of
international peace and security, just and honourable relations between
nations, respect for international law, treaty obligations and settlement of
international disputes by arbitration.

The Union executive consists of the President, the Vice-President and the
Council of Ministers with the Prime Minister as the head to aid and advise
the President.
The President is elected by members of an electoral college consisting of
elected members of both Houses of Parliament and Legislative Assemblies of
the states in accordance with the system of proportional representation by
means of single transferable vote. To secure uniformity among state inter se
as well as parity between the states, as a whole, and the Union, suitable
weightage is given to each vote. The President must be a citizen of India,
not less than 35 years of age and qualified for election as member of the Lok
Sabha. His term of office is five years and he is eligible for re-election. His
remoyal from office is to be in accordance with procedure prescribed in
Article 61 of the Constitution. He may, by writing under his hand addressed
to !Fe Vice-PresidenLresign his office.
Executive power of the Union is vested in the President and is exercised
by him either directly or through officers subordinate to him in accordance
with the Constitution. Supreme command of defence forces of the Union also
vests in him. The President summons, prorogues, addresses, sends messages
to Parliament and dissolves the Lok Sab~; promulgates Ordinances at any
time, except when both Houses of Parliament are in session; makes
recommendations for introducing financial and money bill., and gives assent
to bills; grants pardons, reprieves, respites or remission of punishment or


India 2005

suspends, remits or commutes sentences in certain caSt's. When there is a

failure of tht, constitutional machinery in " state, Iw can assuml' to himself
all or any of the functions of the govt'rnment of that state. The President can
prod aim emergency in the country if he is satisfied that a grave emergency
exists whereby security of India or any part of its territory is threatened
whether by war or external aggression or armed rebellion.
The Vice-President is elected by members of an electoral college consisting
of members of both Houses of Parliament in accordance with the system of
proportional representation by means of single transferabk vote. He must be
a citizen of India, not less than 35 years of age and eligible for f;:'lection as
a member of the Rajya Sabha. His term of office is five years and he is eligible
for re-tllction. His removal from office is to be in accordance with procedun'
prescribed in Article 67 b.
The Vice-President is cx-(~ffici(l Chairman of the Rajya Sabha and acts
as President when the latter is unable to discharge his functions due to
absence, illness or any other cause or till the elt'ction of a new President (to
be held within six months when a vacancy is caused by dl'ath, resignation
or removal or otherwise of President). While so actin~ he ceases to perform
the function of the Chairman of the Rajya Sabha.
Therl' is a Council of Ministers headed by the Prime Minister to aid and advisl'
the President in exercise of his functions. The Prime Minister is appOinted
by the President who also appoints other ministers on the advice of Prime
Minister. The Council is collectivel res onsible to the Lok Sabh . It is the
duty of the Pri~e . Ister to communicate to the President all decisions of
Council of Ministers relating to administration of affairs of the Union and
proposals for legislation and information relating to them.
The Council of Ministers comprises Ministers who are members of
Cabinet, Ministers of State (independent charge), Ministers of State and
Deputy Ministers.
Legislature of the Union which is called Parliament, consists of President and
two Houses, known as Council of States (Rajya Sabha) and House of the
People (Lok Sabha). Each House has to meet within six months of its previous
sitting. A joint sitting of two Houses can be held in certain cases.

The Constitution provides that the Rajya Sabha shall consist of 250 members,
of which 12 members shall be nominated by the President from amongst


The Polity

persons having special know ledge or practical experience in respect of such

matters as literature, science, art and sodal service; and not more than 238
representatives of the States and of the Union Territories.
Elections to the Rajya Sabha an~ indirect; members representing States
are elected by elected members of legislative assemblies of the States in
accordance with the system of proportional representation by means of the
single transferable vote, and those representing Union Territories are chosen
in such manner as Parliament may by law prescribe. The Rajya Sabha is not
subject to dissolution; one-third of its members retire every second year.
Rajya Sabha, at present, has 245 seats. Of these, 233 members represent
the States and the Union Territories and 12 members are nominated by the
President. The names of members of Rajya Sabha and party affiliation arc
given in Appendices.

The Lok Sabha is composed of representatives of people chosen by direct
election on the basis of adult suffrage. The maximum strength of the House
envisaged by the Constitution is now 552 (530 members to represent States,
20 to represent Union Territories and not more than two members of the
Anglo-Indian community to be nominated by the President, if, in his opinion,
that community is not adequately represented in the House). The total elective
membership of the Lok Sabha is distributed among States in such a way that
the ratio between the number of seats allotted to each State and population
of the State is, as far as practicable, the same for all States. The Lok Sabha
at present consists of 545 members. Of these, 530 members are directly elected
from the States and 13 from Union Territories while two are nominated by
the President to represent the Anglo-indian community. Following the
Constitution 84th Amendment Act~~tal numbe~_ .of existing seMs as
allocated to vanous States m the [ok Sabh.~ on the basis of the 1971 census
shall remain unaltered till th;-first census to be taken after tiley-ear -2:026.



~. "~.- ~-

.. -.--.-



The term of the Lok Sabha, unless dissolved earlier is five years from
the date appointed for its first meeting. However, while a proclamation of
emergency is in operation, this period may be extended by Parliament by law
for a period not exceeding one year at a time and not extending in any case,
beyond a period of six months after the proclamation has ceased to operate.
Fourteen Lok Sabhas have been constituted so far. The term of each Lok Sabha
and its Speaker(s) is given in table 3.1.
The State-wise allocation of seats in the two Houses and the party
position in the Lok Sabha is given in table 3.2. The names of members of
the Fourteenth Lok Sabha, their constituencies and party affiliations are given
in Appendices.


In order to be chosen a member of Parliament, a person must be a citizen
of India and not less than 30 years of age in the case of Rajya Sabha and

India 2005
not less than 25 ycars of age in the case of Lok Sabha. Additional qualifications
may he prescribed by Parliament by law.
As in other parliamentary democracies, the Parliament of India has the
cardinal functions of legislation, ov('rseeing of administration, passing of
budget, ventilation of public grievances and discussing various subjects like
development plans, international relations and national policies. The distribution
of powers betwccn the Union and the States, followed in the Constitution,
emphasist,s in many ways thl' general predominance of Parliament in the
legislatiVt' (i(-'Id. Apart from a wide-rangt' of subjects, even in normal times
the Parliament can, under certain circumstances, assume legislative power
with respect to a subject falling within the sphere exclusively reserved for
the States. The Parliament is also vested with powers to impeach the President
and to remove the Judges of Supreme Court and High Courts, the Chief
Eledion Commissioner and the Comptroller and Auditor General in accordance
with the proccdun> laid down in the Constitution.
All legislation requires consent of both the Houses of Parliament. In the
case of money bills, however, the will of the Lok Sabha prevails. Delegated
legislation is also subject to review and control by Parliament. Besides the
power to legislate, the Constitution vests in Parliament the power to initiate
amendment of the Constitution.
The functions of Parliament are not only varied in nature, but considerable
in volume. The time at its disposal is limited. It cannot make very detailed
scrutiny of all legislative and other matters that come up before it. A good
deal of its business is, therefore, transacted in committees.
Both Houses of Parliament have a similar committee structure, with a
few exceptions. Their appointment, terms of office, functions and procedure
of conducting business are also more or less similar and are regulated under
rules made by the two Houses under Article 118(1) of the Constitution.
Broadly, parliamentary committees are of two kinds-standing committees
and ad hoc committees. The former are elected or appointed every year or
periodically and their work goes on, more or less, on a continuous basis. The
latter are appointed on an ad hoc basis as need arises and they cease to exist
as soon as they complete the task assigned to them.

Standillg Committees: Among standing committees, the three financial

committees-Committees on Estimates, Public Accounts, and Public
Ulldertakings-conc;titute a distinct group and they keep an unremitting vigil
over Government expenditure and performance. While members of the Rajya
Sabha are associated with Committees on Public Accounts and Public
Undertakings, members of the Committee on Estimates are drawn entirely
from the Lok Sabha.

The Polity


The Estimates Committee reports on 'what economies, improvements in

organisation, efficiency or administrative reform consistent with policy
underlying the estimates' may be effected. It also examines whether the money
is well laid out within limits of the policy implied in the estimates and
suggests the form in which estimates shall be presented to Parliament. The
Public Accounts Committee scrutinises appropriation and finance accounts of
Government and reports of the Comptroller and Auditor-General. It ensures
that public money is spent in accordance with Parliament's decision and calls
attention to cases of waste, extravagance, loss or nugatory expenditure. The
Committee on Public Undertakings examines reports of the Comptroller and
Auditor-General, if any. It also examines whether public undertakings are
being run efficiently and managed in accordance with sound business
principles and prudent commercial practices.
Besides these three financial committees, the Rules Committee of the Lok
Sabha recommended setting-up of 17 Department Related Standing
Committees. Accordingly, 17 Department Related Standing Committees were
set up on 8 April 1993. In July 2004, rules were amended to provide for the
constitution of seven more such committees. The functions of these Committees
are: (a) to consider the Demands for Grants of various ministries/ departments
of Government of India and make reports to the Houses; (b) to examine such
Bills as are referred to the Committee by the Chairman, Rajya Sabha or the
Speaker, Lok Sabha, as the case may be, and make reports thereon; (c) to
consider Annual Reports of ministries/ departments and make reports thereon;
and (d) to consider policy documents presented to the Houses, if referred to
the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as
the case may be, and make reports thereon.
Other standing committees in each House, divided in terms of their
functions, are (i) Committees to Inquire: (a) Committee on Petitions examines
petitions on bills and on matters of general public interest and also entertains
representations on matters concerning Central subjects; and (b) Committee of
Privileges examines any question of privilege referred to it by the House or
Speaker / Chairman; (ii) Committees to. Scrutinise: (a) Committee on
Government Assurances keeps track of all assurances, promises, undertakings,
etc., given by ministers in the House and pursues them till they are
implemented; (b) Committee on Subordinate Legislation scrutinises and
reports to the House whether the power to make regulations, I1lles, sub-rules,
bye-laws, etc., conferred by the Constitution or Statutes is being properly
exercised by the delegated authorities: and (c) Committee on Papers Laid on
the Table examines all papers laid on the table of the House by ministers,
other than statutory notifications and orders which come within the purview
of the Committee on Subordinate Legislation, to see whether there has been
compliance with provisions of the Constitution. Act, rule or regulation under
which the paper has been laid; (ill) Committees relating to the day-to-day
business of the House: (a) Business Advisory Committee recommends


India 2005

allocation of time for items of Government and other business to be brought

before the Houses; (b) Committee on Private Members' Bills and Resolutions
of the Lok Sabha classifies and allocates time to Bills introduced by private
membt,rs, recommends allocation of time for discussion on private members'
resolutions and examines Constitution amendment bills before their introduction
by private members in the Lok Sabha. The Rajya Sabha does not have such
a committee. It is the Business Advisory Committee of that Houst, which
recommends allocation of time for discussion on stage or stages of private
members' bills and resolutions; (c) Rules Committee considers matters of
procedure and conduct of business in the House and recommends amendments
or additions to the Rules; and (d) Committee on Absence of Members from
the Sittings of the House of the Lok Sabha considers all applications from
members for leave or absence from sittings of the House. There is no such
committee in the Rajya Sabha. Applications from members for leave or absence
are considered by the House itself; (iv) Committee on the Welfare of Scheduled
Castes and Scheduled Tribes, on which members from both Houses serve,
considers all matters relating to welfare of scheduled castes and scheduled
tribes which come within the purview of the Union Government and keeps
a watch whether constitutional safeguards in respect of these classes are
properly implemented; (v) Committees concerned with provision of facilities
to members: (a) General Purposes Committee considers and advises Speaker /
Chairman on matters concerning affairs of the House, which do not
appropriately fall within the purview of any other parliamentary committee;
and (b) House Committee deals with residential accommodation and other
amenities for members; (vi) Joint Committee em Salaries and Allowances of
Members of Parliament, constituted under the Salary, Allowances and Pension
of Members of Parliament Act, 1954, apart from framing rules for regulating
payment of salary, allowances and pension to Members of Parliament, also
frames rules in respect of amenities like medical, housing, telephone, postal,
constituency and secretarial facility; (vii) Joint Committee em Offices of Profit
examines the composition and character of committees and other bodies
appointed by Central and State governments and Union Territory
administrations and recommends what offices ought to or ought not to
disqualify a person for being chosen as a member of either House of
Parliament; (viii) The Library Committee consisting of members from both
Houses, considers matters concerning the Library of Parliament; (ix) On 29
April 1997, a Committee on Empowennent of Women with members from
both the Houses was constituted with a view to securing, among other things,
status, dignity and equality for women in all fields; (x) On 4 March 1997,
the Ethics Committee of the Rajya Sabha was constituted. The Ethics
Committee of the Lok Sabha was constituted on 16 May 2000.

Ad hoc Committees : Such committees may be broadly classified under

two heads (a) committees which are constituted from time to time, either by
two Houses on a motion adopted in that behalf or by Speaker/Chairman to
inquire into and report on specific subjects, (e.g., Committees on the Conduct
of certain Members during President's Address, Committees on Draft FiveYear Plans, Railway Convention Committee, Committee on Members of

The Polity


Parliament Local Area Development Scheme, Joint Committee on Bofors

Contracts, Joint Committee (m Fertilizer Pricing, Joint Committee to enquirt
into irregularities in securities and banking transactions, Joint Committee on
Stock Market Scam, Joint Committees on Security in Parliament Complex,
Committee on Pr011ision of Computers for Members of Parliament, Offices (~f
Political Parties and Officers of the Lok Sabha Secretariat; Committee on Food
Management ill Parliament House Complex; Committee on Installation of
Portraits/Statues of National Leaders and Parliamentarians in Parliament
House Complex, etc.) arid (b) Select or Joint Committees on Bills which are
appointed to consider and report on a particular bill. These committees are
distinguishable from other ad hoc committees inasmuch as they are concerned
with bills and the procedure to be followed by them as laid down in the Rules
of Procedure and Directions by the Speaker / Chairman.
In keeping with their important role, the Leaders of Opposition in the Rajya
Sabha and the Lok Sabha are accorded statutory recognition. Salary and other
suitable facilities are extended to them through a separate legislation brought
into force on 1 November 1977.
The Minister of Parliamentary Affairs is entrusted with the responsibility of
coordinating, planning and arranging Government Business in both Houses
of Parliament. In the discharge of this function, he is assisted by his Ministers
of State. For this purpose, the Ministry works under the overall direction of
Cabinet Committee on Parliamentary Affairs. The Minister also keeps close
and constant cOlltact with the presiding officers, the leaders as well as chief
whips and whips of various parties and groups in both Houses of Parliament.
During 2003, 56 Bills were passed by both Houses of Parliament.
The Ministry of Parliamentary Affairs constitutes consultative committees of
Members of Parliament attached to various Ministries and arranges meetings
thereof. The Minister / Minister of State in-charge of the Ministry concerned
acts as the Chairman of the Consultative Committee of that Ministry.
The main purpose of these Committees is to provide a forum for informal
discussions between the Government and Members of Parliam~nt on policies
and programmes of the Government and the manner of their implementation.
Meetings of these Committees are held both during the session and intersession periods of Parliament. Besides this, informal consultative committees
of the Nine Railway Zones are also constituted and their meetings arranged
during the session periods.
Further, before dissolution of 13th Lok Sabha, there were 30 Consultative
Committees for various Ministries/Departments and total number of meetings
of these Committees held during 2003 were 135.

India 2005



The Minister of Parliamentary Affairs nominates Members of Parliament on
committees, councils, boards and commissions, etc., set-up by the Government
in the various Ministries. The Members are nominated on such bodies keeping
in view their special interest and aptitude in the subject.
In order to develop democratic ethos in the younger generation the Ministry
conducts Youth Parliament Competitions in various categories of schools and
colleges/universities. The Youth Parliament Scheme was first introduced in
the schools in Delhi in 1966-67. Kendriya Vidyalayas located in and arowld
Delhi were incorporated into the ongoing scheme for Delhi schools in 1978.
Subsequently, a separate scheme of Youth Parliament for Kendriya Vidyalayas
at the National Level was launched in 1988. Similarly, in 1997-98 two new
Youth Parliament Schemes at the national level, one for Jawahar Navodaya
Vidyalayas and the other for Universities/Colleges were launched.
During 2003-04, the 38th Youth Parliament Competition for Delhi schools
was completed and 67 schools participated. The 16th National Youth Parliament
for Kendriya Vidyalayas was held and 90 Kendriya Vidyalayas participated.
The 7th National Youth Parliament Competition for Jawahar Navodaya
Vidyalayas is in progress. The Sixth National Youth Parliament Competition
for Universities/Colleges was also organised and 41 Universities/Colleges
participated. Orientation Courses for holding the Competitions during 200405 has already been finalised and are in progress.





The Ministry of Parliamentary Affairs, Government of India has been
organising All India Whips' Conference from time to time, with the purpose
of establishing suitable links amongst the whips of various political parties
at the Centre and the States who are concerned with the practical working
of the legislatures to discuss matters of common interest and to evolve high
standards to strengthen the institution of Parliamentary democracy. The
Twelfth All India Whips' Conference was held in Srinagar, Jammu and
Kashmir in 1997.
The Ministry of Parliamentary Affairs takes follow-up action on matters raised
under Rule 377 of the Rules of Procedure and Conduct of Business in Lok
Sabha and by way of Special Mentions in Rajya Sabha. Also, after 'Question
Hour' in both Houses of Parliament, Members raise matters of urgent public
importance. Though it is not mandatory, Ministers sometimes react to the
points made by the Members. When the concerned Ministers are not present
the Minister of Parliamentary Affairs assures the House or the individual
Members that their sentiments would be conveyed to the concerned

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The Ministry culls out assurances, promises, undertakings, etc., given by
Ministers in both Houses of Parliament, from the daily proceedings and
forwards them to the concerned Ministries/Departments for implementation.
Statements showing action taken by the Government in implementation of
the assurances, after due scrutiny of the implementation reports received from
the various Ministries / Departments concerned, are laid periodically on the
table of the Houses by Minister / Minister of State for Parliamentary Affairs.

The Government of India (Allocation of Business) Rules, 1961 are made by
the President of India under Article 77 of the Constitution for the allocation
of business of the Government of India. The Ministries/Departments of the
Government are created by the President on the advice of the Prime Minister
under these Rules. The business of the Government are transacted in the
Ministries/Departments, Secretariats and offices (referred to as 'Department')
as per the distribution of subjects specified in these Rules. Each of the Ministry
(ies) is assigned to a Minister by the President on the advice of the Prime
Minister. Each department is generally under the charge of a Secretary to assist
the Minister on policy matters and general administration.
The Cabinet Secretariat is under the direct charge of the Prime Minister. The
administrative head of the Secretariat is the Cabinet Secretary who is also the
ex-officio Chairman of the Civil Services Board. In the Government of India
(Allocation of Business) Rules, 1961 'Cabinet Secretariat' finds a place in the
First Schedule to the Rules. The subjects allotted to this Secretariat are: (i)
Secretarial assistance to Cabinet and Cabinet Committees; and (ii) Rules of
The Cabinet Secretariat is responsible for the administration of the
Government of India (Transaction of Business) Rules, 1961 and the Government
of India (Allocation of Business) Rules 1961, facilitating smooth transaction
of business in Ministries/Departments of the Government by ensuring
adherence to these rules. The Secretariat assists in decision-making in
Government by ensuring Inter-Ministerial coordination, ironing out differences
amongst Ministries/Departments and evolving consensus through the
instrumentality of the standing and ad hoc Committees of Secretaries. Through
this mechanism, new policy initiatives are also promoted.
The Cabinet Secretariat ensures that the President, the Vice-President and
Ministers are kept informed of the major activities of all Ministries/Departments
by means of monthly summary of their activities. Management of major crisis
situations in the country and coordinating activities of various Ministries in
such a situation is also one of the functions of the Cabinet Secretariat.
The Cabinet Secretariat is seen as a useful mechanism by the departments
for promoting inter-Ministerial coordination since the Cabinet Secretary is also
the head of the civil services. The Secretaries felt it necessary to keep the


India 2005

Cabinet StcTltary informed of developments from time to time. The Tran...action

of Business I{ules also Tl'quire them to keep the Cabinet Secretary informed
spt'cially if there arc any departurt's from these rules.
National Authority, Chemical Weapons Convention (CWe) was set up by a
resolution of Cabinet Secrt'tariat dated 5 May 1997 to fulfil the obligations
enunciated in the Chemical Weapons Convention initially signed by 130
countries in a conference which mncluded on 14 January 1993 for the purpose
prohibiting of tht, dl'velopment, production, execution, transfer, use and
stockpiling of all chemical weapons by Member-States is a non-discriminatory
process. To fulfil its obligations, each State Party has to designate or establish
a National Authority to serVt' as the national focal point for effective liaison
with Organisation for Prohibition of the Chemical Weapons (OPCW) and other
Statl' Partit's and hence the NA, cwe under the administrative control of the
Cabinet Secretariat was set-up.
A high-level steering committct' under the Chairmanship of the Cabinet
Secretary with Secretary (Chemical and Petrochemicals), Foreign Secretary,
Secretary, Defenc(' Research and Dt:'velopment, Defence Secretary and Chairman,
National Authority as its other members would oversee the functions of tht'
National Authority. The NA, CWC is responsible for implementation of CWC
Act, liaison with ewe imd other State Parties, Collection of data fulfilling
of declaration obligations, negotiating facility agreements, coordinating OPCW
inspections, providing appropriate facilities for training national inspectors
and industry personnel, ensuring protection of confidential business
information, checking declarations for consistency, accuracy and completeness,
registration of entitlt'S engaged in activities related to CWC, etc.
The Government consists of a number of Ministries/Departments, number
and character varying from time to time on factors such as volume of work
importance attached to certain items, changes of orientation, political expediency,
etc. On 15 August 1947, the number of Ministries at the Centre was 18.


1. Ministry of Agriculture (Krishi Mantralaya)

Department of Agriculture and Cooperation

(Krishi allr Sahkarita Vibhag)


Department of Agricultural Research and Education

(Krishi Anllsandhan aur Shiksha Vibhag)

(iii) Department of Animal Husbandry and Dairying

(Pashupalan aur Dairy Vibhag)

2. Ministry of Agro and Rural Industries (Krishi Evam Gramin Udyog



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3. Ministry of Chemicals and Fertilizers (Rasayan aUT UnlaTak MantTalaya)


Department of Chemicals and Petro-Chemicals






Department of Fertilizers fUn'arak v'ibhag)

4. Ministry of Civil Aviation (Nagar Vimanan Mantralaya)

5. Ministry of Coal and Mines (Koyala aUT Khan MantTalaya)

Dt'partment of Coal (Koyala Vibhllg)


Department of Mifll's (Kltllll Vibhag)

6. Ministry of Commerce and Industry (Vanijya aliT Udyog Mantralaya)



Department of Commerce fVanijya Vil,hog)

Department of Industrial Policy and Promotion
(Alldyogik Niti aur San)1JardhllJ1 Vihhag)


Ministry of Communications and Information Technology (SanchaT

aUT Soochana PTaudyogik-i Mantralaya)

Department of Telecommunications (Doorsanchar Vibhag!

(ii) Department of Post (Dak Vibhllg)
(iii) Department of Information Technology
(Sooc/rana fJratldyogiki



Ministry of Culture (Sanskriti Man tTa laya )


Ministry of Defence (Raksha MantTalaya)


Department of Defence (Raksha Vibhag)


Department of Defence Production and Supplies

fRaksha Utpadan aur Poorti Vibhag)

(iii) Department of Defence Research and Development

(Raksha AnU$andhan aur Vikas Vibhag)

10. Ministry of Environment and Forests (ParyallaTan aUT Van MantTalaya)

11. Ministry of External Affairs (Videsh Mantralaya)
12. Ministry of Finance (Vitta Mantralaya>

Department of Economic Affairs (Arthik KarYIl Vibhag)


Department of Expendi'ture (Vyaya Vibhag)

(iii) Department of RevenuE' (Rajaswa Vibhag)

(iv) Department of Disinvestment Winivesh Vibhag)

13. Ministry of Company Affairs (Company Karya Mlmtraiya)
14. Ministry of Consumer Affairs, Food and Public Distribution
(Ul'bhokta Mamie, Khadya aur Sarvajanik Vitaran Mantralaya)

Department of Consumer Affairs

(Uphhokta MamIe Vibhag)


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Department of Food and Public Distribution

(Khadya aur Sarvajanik Vitaran Vibhag)

15. Ministry of Food Processing Industries

(Khadya PTasanskaran Udyog Mantralaya)
lb. Ministry of Health and Family Welfare

(Swasthya aUT ParillaT Kalyan Mantralaya)


Department of Health (SU'asthya Vibhag)


Department of Family Welfare (Parivar Kalyan Vibhag)

Department of Ayurveda, Yoga-Naturopathy, Unani, Siddha and

(Ayurvcda, Yoga-Prakritik Chikitsa Paddhati, Unani, Siddha aur
Homoeopathy Vibhag)
17. Ministry of Heavy Industries and Public Enterprises
(Bhari Udyog aUT Lok Udyam Mantralaya)


Department of Heavy Industries mhari Udyog Vibhag)


Department of Public Enterprises (Lak Udyam Vibhag)

18. Ministry of Home Affairs (Grih Mantralaya)

(i) Department of Internal St.'CUrity
(Antarik Suraksha Vibhag)

Department of States (Rajya Vibhag)

(iii) Department of Official Language (Raj Bhasha Vibhag)

(iv) Department of Home (Grih Vibhag)

Department of Jammu and Kashmir Affairs

(fammu tatha Kashmir Vibhag)

19. Ministry of Human Resource Development

(Manav Sansadhan Vikas Mantralaya)

Department of Elementary Education and Literacy

(Prarambhik Shiksha aur Saksharta Vibhag)


Department of Secondary Education and Higher Education

(Madhyamik aur Uchchatar Shiksha Vibhag)

(iii) Department of Women and Child Development

(Mahila aur Bal



20. Ministry of Information and Broadcasting

(SoochlJna aUT PrasarlJn Mllntrlllaya)
21. Ministry of Labour (Shram MllntrlJ14YIJ)
22. Ministry of Law and Justice
(Vidhi Ilur Nytlya MllntriJlaYIl)

Department of Legal Affairs (Vidhi Karya Vibhag)


Legislative Department (Vidhayee VibJuzg)

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(iii) Department of Justice


(Nyaya Vibhag)

23. Ministry of Non-Conventional Energy Sources

(Aparamparik Dorya Srota Mantra14ya)
24. Ministry of Non-Resident Indians Affairs (Apravasi Bharatiyon Kt'
Mamalon Ka Mantralya)

25. Ministry of Parliamentary Affairs (Sanslldiya KIIrya Mllntndllya)

26. Ministry of Personnel, Public Grievances and Pensions
(Karmik Lok Shikllyat tlltha Pension Mantra14ya)

Dt.'Partment of Personnel and Training

(Karmik aur PTashikshan Vibhag)


Department of Administrative Reforms and Public Grievances

(Prashasanik Sudhar aur Lok Shikayat Vibhag)

(iii) Department of Pensions and Pensioners' Welfare

(Pension aur Pension Bhogi Kalyan Vibhag)

27. Ministry of Petroleum and Natural Gas

(Petroleum aur Prakritik Gas Mantralaya)

28. Ministry of Planning (Yojana Mantralaya)
29. Ministry of Power (Vidyut Mantralaya)
30. Ministry of Railways (Rail Mantraillya)
31. Ministry of Road Transport and Highways (S4rak Parivahan aur Raj

Marg Mantralaya)
32. Ministry of Rural Development (Gram;n Viklls Mllntralaya)

Department of Rural Development

(Gramin Vikils Vibhag)


Department of Land Resources

(Bhumi Sansadhan Vibhag)

(iii) Department of Drinking Water Supply

(Peya Jal Poorti Vibhag)

33. Ministry of Science and Technology (Vigyan aur Pnaudyogiki

Department of Science and Technology

(Vigyan aUT Praudyogiki Vibhag)


Department of Scientific and Industrial Researdl

(Vigyan aUT Audyogik Anusandhan Vibhag)

(iii) Department of Bio-Technology (Biotechnology Vibhag)

34. Ministry of Small Scale Industries (lAghu Udyog Mtmtndaya)

35. Ministry of Statistics and Programme Implementation
(Sankhyiki IIU' KIIryakram KtnyfIrmflylln MflntnJlllya)
36. Ministry of Shipping (pot PlIri"Dflhan MtmtnJlIIYfl)

India 2005


37. Ministry of Steel (lspat MantTalaya)

38. Ministry of Textiles (VastTa MantTalaya)

39. Ministry of Tourism (Paryatlln MantTalaya)

40. Ministry of Tribal Affairs (Janjati Karya MantTalaya)

41. Ministry of Urban Development (Shahari Vikas MantTalaya)

42. Ministry of Urban Employment and Poverty Alleviation

(Shahari Rozgar aur Caribi Upshaman MantTalaya)

43. Ministry of Water Resources (lal Sansadhan Mantralaya)
44. Ministry of Social Justice and Empowerment

(Samajik Nyaya aur Adhikarita Mantralaya)

45. Ministry of Youth Affairs and Sports (yut'a Karyakram aur Knei

46. Department of Atomic Energy (Pannanu Dorja Vibhag)
47. Department of Ocean Development (Mahasagar Vikas Vibhag)

48. Department of Space (Antariksh Vibhag)

49. Cabinet Secretariat (Mantrimandal Sachillalaya>
50. President's Secretariat (RashtTapati Sachit,alaya)
51. Prime Minister's Office (Pradhan Mantri Karyalaya)
52. Planning Commission (Yojana Ayog)
53. Department of Development of North-Eastern Region

(Uttar Poort'; KshetTa Vikas Vibhag)

Prior to Independence, the Indian Civil Service (ICS) was the senior most
amongst the Services of the Crown in India. Besides the ICS, there was also the
Indian Police Service. After Independence, it was felt that though the ICS was
a legacy of the imperial period there was need for the All India Services for
maintaining the unity, integrity and stability of the nation. Accordingly, a
provision was made in Article 312 of the Constitution for creation of one or
mo~ Services ~!.!l-~ th~__ g_ntoii-- and $!_a_!~. The Indian
Administrative Service and The Indian Police Service are deemed to be
constituted by the Parliament in terms of Article 312 of the Constitution. After
the promulgation of the Constitution, a new All India Service, namely, The
Indian Forest Service, was created in 1966. A common unique feature of the
All India Services is that the members of these services are recruited by the
Centre but their services are placed under various State cadres and they have
the liability to serve both under the State and under the Centre. This aspect of
the All India Services strengthens the unitary character of the Indian federation.

The Polity


Of tht> thrt..>t.' All India Services, namely, the Indian Administrative

Service (lAS), the Indian Police Service (IPS) and the Indian Forest Service
(IFS), the Ministry of Personnel, Public Grievances and Pensions is the cadre
controlling authority for the lAS. The recruitment to all the three services is
made by the UPSC. These officers are recruited and trained by the Central
Government and then allotted to different State cadres. There art' now 24 State
cadres including three Joint cadf('s, namely, (i) Assam and Meghalaya,
(ii) Manipur and Tripura and (iiD Arunachal Pradesh, Goa, Mizoram and
the Union Territories (AGMUT).

The Central Secretariat has three services, namely, (i) Central Secretariat
Services (CSS), (ii) Central Secretariat Stenographers' Services (CSSS) and
(iii) the Central Secretariat Clerical Service (CSCS). The Section Officers'
Grade and Assistants' Grade of CSS, Steno Grade 'D' 'C, 'A' and '8' (merged)
of CSSS and LDC and UDC are decentralised. The grades of Principal Private
Secretary and Senior Principal Private Secretary of CSSS and selection grade,
and Grade 1 of CSS are centralised. Appointments and promotions in the
Centralised Grades are made on all secretariat basis. In respect of the
decentralised grades, Department of Personnel and Training monitors and
assesses the overall requirements of different cadres for fixing zones of
promotion against the vacancies in seniority quota and arranges centralised
recruitment against direct recruitment and departmental examination quota
vacancies through open competitive and departmental examination.
Pursuant to the recommendation of the Parliamentary Standing Committee
on Home Affairs, the Government set-up a committee on the Cadre
Restructuring of CSS in February 2001. The committee submitted its Report in
February 2002, making several recommended actions. The Government after
careful considerations has taken several decisions in October 2003 for improving
the career prospects of the CSS personnel.

The Constitution provides for an independent body known as Union Public

Service Commission (UPSC) for recruitment to Group 'A' and Group '8'
Gazetted posts under Central Government and for advice in various service
matters. The Chairman and ~~!!!J~r~Lthe Commission are appointed by the
President for tenutt_ of six years,. or till they attain the age of 65 years,
whichever is earlier. To ensure independence, members who were at the
service of Government at the time of appointment are deemed to have retired
from Government service on their appointment in the Commission. The
Chairman and members are aL"o not eligible for further employment under the
Government. They cannot be removed except for the reasons and in the
manner providt..>d for in the Constitution.

Staff Selection Commission initially known as Subordinate Services Commission

was set up on 1 July 1976. It has been entrusted with the work of making
recruitment to (i) all non-gezetted Group 'D' posts in the various Ministries/


India 2005

Departments of the Government and their Attached and Subordinate Offices

which are in the pay scales of Rs 6,500-10,500 and (ii) all non-technical Group
'C' posts in the various Ministries/Departments of the Government and their
Attached and Subordinate Offices, except those posts which are specifically
exempted from the purview of the Staff Selection Commission. The Commission
is an attached office of the Department of Personnel and Training and
comprises of a Chairman, two Members and Secretary-cum-Controller of
Examinations. The tenure of Chairman/Members is for five years or till they
attain the age of 62 years, whichever is earlier. The Commission's headquarters
and the office of its Northern Region are in New Delhi. The offices of Central,
Wesh.>m, Eastern, North-Eastern, Southern and Kamataka-Kerala region are at
Allahabad, Mumbai, Kolkata, Guwahati, Chennai and Bangalore respectively.
Its sub-regional offices of Madhya Pradesh-Chhattisgarh region and NorthWestern region are at Raipur and Chandigarh respectively.


Article ~3. (1) of the Constitution provides that Hindi in Dellanagari script
shall be the Official Language of the Union. Article-343(2) also provided for
continuing the use of English in official work of the Union for a period of 15
years (i.e., up to 25 January 1965) from the date of commencement of the
Constitution. Article 343(3) empowered the parliament to provide by law for
continued use of English for official purposes even after 25 January 1965.
Accordingly, section 3(2) of the Official Languages Act, 1963 (amended in
1967) provides for continuing the use of English in official work even after 25
January 1965. The Act also lays down that both Hindi and English shall
compulsorily be used for certain specified purposes such as Resolution."
General Orders, Rules, Notifications, Administrative and other Reports, Press
Communiques; Administrative and other Reports and Official Papers to be
laid before a House or the Houses of Parliament; Contracts, Agreements,
Licences, Permits, Tender Notices and Forms of Tender, etc.
In 1976, Official Language Rules were framed under the provisions of
section 8(1) of the Official Languages Act, 1963. Its salient features are as
under: (i) they apply to all Central Government Offices, including any office
of a Commission, Committee or Tribunal appointed by the Central Government
and Corporation or Company owned or controlled by it. (ii) Communications
from a Central Government Office to State/Union Territories or to any person
in Region "A" comprising the States of Uttar Pradesh, Uttaranchal, Himachal
Pradesh, Madhya Pradesh, Chhattisgarh, Bihar, Jharkhand, Rajasthan, Haryana
and UTs of Andaman and Nicobar Islands and Delhi, shall be in Hindi,
(iii) Communications from a Central Government Office to States/UTs in
Region "B" comprising the States of Punjab, Gujarat, Maharashtra and the
Union Territory of Chandigarh, shall ordinarily be in Hindi. However,
communication to any person in Region ''8'' may be either in English or Hindi.
(iv) Communications from a Central Government Office to a State Government
Office in region 'C' comprising all other States and UTs not included in region
'A' & 'B' or to any office (note being a Central Government Office) or person

The Polity


shall bE.> in English. (v) Communications between Central Government Offices

and from Central Government Offices to the Offices of the State Governments/
Union Territories and individuals, etc., will be in Hindi in such proportion'i as
may be determined from time to time.
(vi) All Manuals, Codes and other
Procedural literature relating to Central Government Offices are required to be
prepared both in Hindi and English. All Forms, Headings of Registers, Name
Plates, Notice Boards and various items of stationery, etc., are also required to
be in Hindi and English. (vii) It shall be the responsibility of the officer signing
the documents specified in section 3(3) of the Act to ensure that these are
issued both in Hindi and English.
In compliance with the Official Language Resolution, 1968, an Annual
Programme is prepared by the Department of Official Language in which
targets are set for the offices of the Central Government with regard to
originating correspondence, telegrams, telex, etc., in Hindi. A Quarterly Progress
Report is called for from the offices of th(, Central Government regarding
achievements vis-a-vis the said targets. An Annual Assessment Report is
prepared on the basis of the Quarterly Progress Reports, which is laid on the
Tables of both Houses of the Parliament and copies endorsed to State
Governments and tht' Ministries/Departments of the Central Government.
Eight Regional Implementation Offices have bt'en established at Bangalore,
Cochin, Mumbai, Kolkata, Guwahati, Bhopal, Delhi and Ghaziabad to monitor
the implementation of Official Languag' Policy of the Union.
A Committee of Parliament on Official Language was constituted in 1976
under section 4 of the Official Languages Act, 1963 to periodically review the
progress in the use of Hindi as the Official Language and to submit a report
to the President. The Committee consists of 20 Members of the Lok Sabha and
10 of the Rajya Sabha. The Committee has decided to submit its report in parts.
It has so far submitted to the President seven parts of its report. The Presidential
Orders on five parts of its report have bt'en issued and work is in progress on
the sixth and seventh parts.
The Kendriya Hindi Samiti was constituted in the year 1%7. It is chaired
by the Prime Minister. It is the apex policy making body and lays down the
guidelines for the propagation and use of Hindi as the Union's Official
Under the directions of the Kendriya Hindi Samiti, Hindi Salahaj(.ar
Samitis have been constituted in all Ministries/Departments under the
chairmanship of the Ministers concerned. These Samitis periodically review
the progress in the use of Hindi in their respective Ministries/Departments
and the offices / undertakings and suggest measures to promote the use of
Besides, the Central Official Language Implementation Committee (headed
by Secretary, Department of Official Language and consisting of Joint Secretaries


India 2005

(In-charge of Official Language) of all tht, Ministries as ex-officio members)

revi{'ws the status of USt' of Hindi for official purpost's of the Union, training
of its t'mployL't.'s in I !indi and Official Language and suggests measures for
removing tht, shortcomings and difficulties noticed in implementing these
Town Official Language Impll'mentation Committees are constituted in
different towns having tl'n or more Central Government offices, etc., to review
the progress in the USl' of Hindi in their member offin's and exchange
ex perit'nCl's.

The scheme, Indira Gandhi Rajbhasha Awards has been in operation since
]lJI{6-H7. Awards-are h'lvm each year to Ministries/Departments, Banks and
Financial Institutions, Public Sector Undertakings and Town Official Languagt'
Implementation Committees for outstanding achievl'ments in the
implementation of the Official Language Policy of the Union. Cash awards are
given to the working! retired employees of the Central Government, Banks,
Financial Institutions, Universities, Training Institutions and Autonomous
Bodies of the Central Government for writing original books in Hindi.
The National Awards Scheme for Original Book writing on Gyan-Vigyan
for promoting writing of books in Hindi on all branches of modern knowledge
has been introduced since 2001-(12 and is open to all citizl'ns of India.
At Regional level, Regional Official Language Awards an' giv('n each
year to the Regional/Subordinate Offices, PSUs, Town Official Language
Implementation Committees, Banks and Financial Institutions of the Central
Government for outstanding achievements in implementing the Official
Language Policy of the Union and accelerating the progressive ust' of Hindi.

Undl~r the Hindi Teaching Scheme, administered by the Department of Official
Language, training in Hindi language is being imparted through 134 full-time
and 46 part-time Centres throughout the country. Likt>wisc, training in Hindi
Stenography and Hindi Typing is being provided through 24 full-time and 41
part-time Centres. Five Regional Offices at Kolkata, Mumbai, Delhi, Chennai
and Jabalpur are providing academic and administrative support to the Hindi
Teaching Scheme in the East, West, North, South and Central Regions.

The Kendriya Hindi Prashikshan Sansthan was established on 31 August

19H5, as a subordinate office of the Department of Official Language, with the

objective of providing Hindi Training through condensed courses in Hindi

language /Typing and Stenography as also training through correspondence in
Hindi language and Hindi Typwriting. Its sub-institutes were opened in
Mumbai, Kolkata and Bangalore in 1988 and in Chennai and Hyderabad in
1990. For usc of modern equipment in the Government offices, training in
Hindi Typing/Word Processing on computers is also imparted at various
Centres throughout the country.

The Polity


The Central Translation Bureau was set-up for translation of different

types of non-statutory literature, Manuals / Codes, Forms, etc., of various
Ministries/Departments, Central Government Offices and its rsUs, Banks, etc.
Tht, Bureau has also been entrusted with the responsibility of conducting
translation work. Initially, 3-months translation training courses were being
conducted only at Delhi. In order to strengthen training facilities and meet
regional requirements, Training Centres haw been established in Mumbai,
Bangalore and Kolkata. Besides, Central Translation Bureau also conducts
short-term translation courses for Central Government employees.
Tn order to promote the use of Official Language with the help of Mechanical
and Electronic equipment, especially computers, a Technical Cell was set-up in
the Department in October 19R3. The main activities of the Cell are :
(i) Printing and distribution of literature giving information regarding bilingual
software. (ii) Organising seminars on bilingual computers and exhibitions.
(iii) Arranging programmes for imparting training for working in Hindi on
computers. (iv) Producing multi-media films on Hindi computers.
(v) Development of Hindi learning software. (vi) Helping and guiding the
Ministries/Departments, PSUs and Banks in devl'loping their wcbsites in
The Department of Official Language has now set-up its portal
The Department of Official Language brings out Rajbhasha Bharati, a quarterly
magazine, in Hindi. So far 103 issues have been published. Likewise, Annual
Programme for implementation of the Official Language policy is brought out
every year. Annual Assessment Report regarding the use of Official Language
in different Ministries/Departments and offices of the Central Government
Public Sector Undertakings, etc., is also brought out every year and laid on the
tables of both the houses of Parliament. Official Language Manual, Posters,
etc., are also brought out to give information regarding the activities relating
to propagation and use of Hindi as the Official Language.
Comptroller and Auditor-General is appointed by the President. Procedure
and grounds for his removal from office are the same as for a Supreme Court
Judge. He is not eligible for further office under the Union or a State
Government after he ceases to hold his office. The President on advice of
Comptroller and Auditor-General prescribes the form in which accounts of tht>
Union and states are to be kept. His reports on accounts of the Union and
states are submitted to the President and respective governors which are
placed before Parliament and state legislatures.


The Department of Administrative Reforms and Public Grievances in the


India 2005

Ministry of Personnel, Public Grievances and Pensions is the nodal agency of

tht Government for Administrative reforms as well as red ressa I of public
grit'vances relating to the Central Government organisations in particular and
State governments and UT administrations in general. The Department provides
management consultancy services to Central Government Ministries/
Departments. The Department disseminates information on important activities
of the GOVl'rnment relating to administrative reforms and public grievances
rl'dn~ssal through various publications.
The i)('partment coordinates tht' efforts to formulate and operationalise
Citizen's Charters by the Central Government Ministries/Departments, etc.,
and their PSUs / autonomous / statutory bodies in varioul' States / UTs in areas
in which they provide services to the members of the public. These Charters
publicise tht:' commitment of the organisation, the expt'cted standards of
service delivery, time frame, grievance redress mt'chanism, laying their
performance open to public scrutiny and ensure accountability. A Core Group
has be<'n set-up under the Chairmanship of Secretary (Personnel) to review the
forn1ulation and implementation of Citizen's Charters by various Central
agencies. The State governments have also been advised to constitute similar
Core Croups for formulation of Citizen's Charters.
The Departmtnt brings out the following publications: (i) Civil Services
Ntws (a monthly newsletter); and (ii) Management in Government (a quarterly
The Ministry of Personnel, Public Grievances and Pensions is an
in<;titutional member of Commonwealth Association for Public Administration
and Management (CAPAM) since 1997. CAPAM has started its Biennial
Intt'rnationallnnovations Awards Programme since 1998. The Ministry is also
an institutional member of International Institute of Administrative Sciences
(IlAS), Brussels, Belgium.

The enactment of Administrative Tribunals Act in 1985 opened a new chapter
in the sphere of administering justice to the aggrieved government servants.
Administrative Tribunals Act owes its origin to Article 323-A of the Constitution
which empowers Central Government to set-up by an Act of Parliament,
Administrative Tribunals for adjudication of disputes and complaints with
respect to recruitment and conditions of service of persons appointed to the
public service and posts in connection with the affairs of the Union and the
States. In pursuance of the provisions contained in the Administrative Tribunals
Act, 1985, the Administrative Tribunals set-up under it exercise original
jurisdiction in respect of service matters of employees covered by it. As a
result of the judgement dated 18 March 1997 of the Supreme Court, the
appeals against the orders of an Administrative Tribunal shall lie before the
Division Bench of the concerned High Court.
The Administrative Tribunals exercise jurisdiction only in relation to the
service matters of the litigants covered by the Act. The procedural simplicity

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of the Act can be appreciated from the fact that the aggrieved person can also
appear before it personally. The Government can present its case through its
departmental officers or legal practitioners. Thus, the objective of the Tribunal
is to provide for speedy and inexpensive justice to the litigants.
The Act provides for establishment of Central Administrative Tribunal
(CAT) and the State Administrative Tribunals. The CAT was set-up on
1 November 1985. Today, it has regular benches, 15 of which operate at the
principal seats of High Courts and the remaining two at Jaipur and Lucknow.
These Benches also hold circuit sittings at other seats of High Courts. In brief,
the tribunal consists of a Chairman, Vice-Chairman and Members. The Members
are drawn both from judicial as well as administrative streams so as to give
the Tribunal the benefit of expertise both in legal and administrative spheres.

The system of government in states closely resembles that of the Union.

State executive consists of Governor and Council of Ministers with Chief

Minister as its head. The Governor of a state is appointed by the President for
a term of five years and holds office during his pleasure. Only Indian citizens
above 35 years of age are eligible for appointment to this office. Executive
power of the State is vested in Governor.
Council of Ministers with Chief Minister as head, aids and advises
Governor in exercise of his functions except in so far as he is by or under the
Constitution required to exercise his functions or any of them in his discretion.
In respect of N~galand, Governor has special responsibility under Article 371
A of the Co~tution with respect to law and order and even though it is
necessary for him to consult Council of Ministers in matters relating to law
and order, he can exercise his individual judgement as to the action to be
Similarly, in respect of Arunachal Pradesh, Governor has special
responsibility under Article 37tH of the Constitution with respect to law and
order and in discharge of his functions in relation thereto. Governor shall, after
consulting Council of Ministers, exercise his individual judgement as to the
action to be taken. These are, however, temporary provisions if President, on
receipt of a report from governor or otherwise is satisfied that it is no longer
necessary for Governor to have special responsibility with respect to law and
order, he may so direct by an order.
Likewise, in the Sixth Schedule which applies to tribal areas of Assam,
Meghalaya, Tripura and Mizoram as specified in para 20 of that Schedule,
discretionary powers are given to Governor in matters relating to sharing of
royalties between district council and state government. Sixth Schedule vests
additional discretionary powers in Governors of Mizoram and Tripura in


India 2005

almost all their functions (except approving regulations for levy of taxes and
money lending by non-tribals by district councils) since December 1998. In
Sikkim, Governor has been given special responsibility for peace and social
and economic advanceml:'nt of different sections of population.
All Governors while discharging such constitutional functions as
appointment of Chief Minister of a statl:' or sending a report to President about
failure of constitutional machinery in a state or in respect of matters relating
to assent to a Bill passed by legislature, exercise their own judgement.

The Chief Minister is appointed by the Governor who also appoints other
ministers on the advin' of the Chief Minister. The Council of Ministers is
colll'ctivl'ly responsible to legislative assembly of the State.

For every state, there is a legislature which consists of Governor and one
House or, two Houses as the case may be. In Bihar, Jammu and Kashmir,
Karnataka, Maharashtra and Uttar Pradesh, there are two Houses known as
legislative council and legislative assembly. In the remaining states, there is
only one House known as legislative assembly. Parliament may, by law,
provide for abolition of an existing legislative councilor for creation of one
where it does not exist, if proposal is supported by a resolution of the
legislative assembly conCt)rned.

Legislative Council (Vidhall Parishad) of a state comprises not more than onethird of total number of members in legislative assembly of the state and in no
case less than 40 members (Legislative Council of Jammu and Kashmir has 36
members vide Section 50 of the Constitution of Jammu and Kashmir). About
one-third of members of the council are elected by members of legislative
assembly from amongst person.'> who are not its members, one-third by
electorates consisting of members of municipalities, district boards and other
local authorities in the state, one-twelfth by electorate consisting of persons
who have been, for at least three years, engaged in teaching in educational
institutions within the state not lower in standard than secondary school and
a further one-twelfth by registered graduates of more than three years standing.
Remaining members are nominated by Governor from among those who have
distinguished themselves in literature, science, art, cooperative movement and
social service. Legislative councils are not subject to dissolution but one-third
of their members retire every second year.

Legislative Assembly (Vidhan Sabha) of a state consists of not more than 500
and not less than 60 members (Legislative Assembly of Sikkim has 32 members
vide Article 371F of the Constitution) chosen by direct election from territorial

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constituencies in the state. Demarcation of territorial constituencies is to be

done in such a manner that the ratio between population of each constituency
and number of seats allotted to it, as far as practicable, is the same throughout
the state. Term of an assembly is five years unless it is dissolved earlier.
State legislature has exclusive powers over subjects enumerated in List II of
the Seventh Schedule of the Constitution and concurrent powers over those
enumerated in List III. Financial powers of legislature include authorisation of
all expenditure, taxation and borrowing by the stat(' government. Legislative
assembly alone has power to originate moOt'y bills. Legislative council can
make only recommendations in respect of changes it considers necessary
within a period of fourteen days of the receipt of money bills from assembly.
Assembly can accept or reject these recommendations.
The Governor of a state may reserve any Bill for the consideration of the
President. Bills relating to subjects like compulsory acquisition of property,
measures affecting powers and position of High Courts and imposition of
taxes on storage, distribution and sale of water or electricity in inter-state river
or river valley development projects should necessarily be so reserved. No
Bills seeking to impose restrictions on inter-state trade can be introduced in a
state legislature without previous sanction of the President.
State legislatures, apart from exercising the usual power of financial control,
use all normal parliamentary devices like questions, discussions, debates,
adjournments and no-confidence motions and resolutions to keep a watch
over day-to-day work of the executive. They also have their committees on
estimates and public accounts to ensure that grants sanctioned by legislature
are properly utilised.

Union Territories are administrated by the President acting to such extent, as
he thinks fit. through an Administrator appointed by him. Administrators of
Andaman and Nicohar Islands, Delhi and Pondicherry are designated as
Lieutenant Governors. The Governor of Punjab is concurrently the
Administrator of Chandigarh. The Administrator of Dadra and Nagar Haveli
is concurrently the Administrator of Daman and Diu. Lak<;hadweep has a
separate Administrator.
The National Capital Territory of Delhi and Union Territory of Pondicherry
each has a legislative assembly and council of ministers. Legislative assembly
of Union Territory of Pondicherry may make laws with respect to matters
enumerated in List n or List ill in the Seventh Schedule of the Constitution in
SO far as these matters are applicable in relation to the union territory. The


India 2005

legislative assembly of National Capital Territory of Delhi has also these

powers with the exceptions that Entries I, 2 and 18 of the List II are not within
the legislative competence of the legislative assembly. Certain categories of
Bills, however, require the prior approval of the Central Government for
introduction in the legislative assembly. Some Bills, passed by the legislative
assembly of the Union Territory of Pondicherry and National Capital Territory
of Delhi are required to be reserved for consideration and assent of the

Municipal bodies have a long history in India. The first such Municipal
Corporation was set-up in the former PreSidency Town of Madras in 1688; and
was followed by similar corporations in the then Bombay and Calcutta in 1726.
The Constitution of India has made detailed provisions for ensuring protection
of democracy in Parliament and in the state legislatures. However, Constitution
did not make the local self-government in urban areas a clear-cut constitutional
obligation. While the Directive Principles of State Policy refer to village
Panchayats, there is no specific reference to Municipalities except the implicity
in Entry 5 of the State List, which places the subject of local self-governments
as a responsibility of the states.
In order to provide for a common framework for urban local bodies and
help to strengthen the functioning of the bodies as effective democratic units
of self-government Parliament enacted the Constitution (74th Amendment)
Act, 1992 relating to municipalities in 1992. The Act received the assent of the
President on 20 ApriI1993. The Government of India notified 1 June 1993 as
the date from which the said Act came into force. A new part IX-A relating to
the Munidpalities has been incorporated in the Constitution to provide for
among other things, constitution of three types of Municipalities, i.e., Nagar
Pllnchayats for areas in transition from a rural area to urban area, Municipal
Councils for smaller urban areas and Municipal Corporation for large urban
areas, fixed duration of municipalities, appointment of state election
commission, appointment of state finance commission and constitution of
metropolitan and district planning committees. State/UTs have set-up their
election Commissions. EJection..,> to municipal bodies have been completed in
all States I UTs except Jharkhand and Pondicherry.
Article 40 of the Constitution which enshrines one of the Directive Principles
of State Policy lays down that the State shall take steps to organise village
panchayats and endow them with such powers and, authority as may be
necessary to enable them to function as units of self-government.
In the light of the above a new Part IX relating to the Panchayats has
been inserted in the Constitution to provide for among other things, Gram

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Sabha in a village or group of villages; constitution of Panchayats at village

and other level or levels; direct elections to all seats in Panchayats at tht
village and intermediate level, if any, and to the offices of Chairpersons of
Panchayats at such levels; reservation of seats for the Scheduled Castes and
Scheduled Tribes in proportion to their population for membership of
Panchayats and office of Chairpersons in Panchayats at each level; reservation
of not less than one-third of the seats for women; fixing tenure of five years
for Panchayats and holding elections within a period of six months in the
event of supersession of any Panchayat.

The superintendence, direction and control of preparation of electoral rolls
for, and the conduct of, elections to Parliament and State Legislatures and
elections to the offices of the President and the Vice-President of India are
vested in tht: Election Commission of India. It is an independent constitutional
authority. Since its inception in 1950 and till October 1989, the Commission
functioned as a single member body consisting of the Chief Election
Commissiont?r. On 16 October 1989, the President appointed two more
Election Commissioners on the eve of the Gt:'neral Election to the House of
the People held in November-December 1989. However, the said two
Commissioners ceased to hold office on 1 January 1990 when those two posts
of Election Commissioners were abolished. Again on 1 October 1993, the
President appointed two more Ell'ction Commissioners. Simultaneously, the
Chief Election Commissioner and other Election Commissioners (Conditions
of Service) Act, 1991 was amended to provide that the Chief Election
Commissioner and other Election Commissioners will enjoy equal powers and
will receive equal salary, allowances and other perquisites as payable to a
judge of the Supreme Court of India. The Act further provided that in case
of difference of opinion amongst the Chief Election Commissioner and/ or two
other Election Commissioners, the matter will be decided by the Commission
by majority. The validity of that Act (renamed in 1993 as the Election
Commission) (Conditions of Service of Election CommL..sioners and Transaction
of Business) Act, 1991 was challenged before the Supreme Court. The
Constitution Bench of the Supreme Court consisting of five judges, however,
dismissed the petitions and upheld the provisions of the above law by a
unanimous judgement on 14 July 1995.
Independence of the Election Commission and its insulation from
executive interference is ensured by a specific provision under Article 324(5)
of the Constitution that the Chief Election Commissioner shall not be removed
from his office except in like manner and on like grounds as a Judge of the
Supreme Court and conditions of his service shall not be varied to his
disadvantage after his appoinbnent. The other Election Commissioners cannot
be removed from office except on recommendation of the Chief Election
Commissioner. The term of office of the Chief Election Commissioner and


India 2005

other Election Commissioners is six years from the date he / she assumes office
or till thl' day he / she attains the age of 65 years, whichever is earlier.
The Parliament on 22 March 21X)3 enactl'd the Election Laws (Amendment)
Act, 2003 and Conduct of Elections (Amendment) Rules, 2003 which carne
into forn' with effect from 22 St>ptember 2003. By these amendments in the
Act and Rules, thoSt' st'rvicc voters belonging to tht, Anned Forces and
nll'mhers belonging to a Force to which provisions of the Anny Act applies,
haw been provided the facility to opt to vote through proxy. Such service
votl'r who opt to vote through proxy have to appoint a proxy in a prescribed
fomla! and intimate thl' Rl'turning Officer of tht, constituency.
TIll' Election and Other Rt'latl'd Laws (Amendment) Act, 2003 (46 of
20tH) was enacted in II StTtl'mber 2003. By this amendment, new Section

29B and 29C wert' inserted in the Principal Act providing for contribution
by any person or company other than a Government company to political
parties, subject to the condition that any contribution in excess of Rs 20,000
shall hl reportt'd to the Election Commission for any claim for Tax relief under
the Income Tax Act, 1961. The Act also inserted Part A (Section 78A and 78B)
regarding supply of copies of electoral rolls and certain other items to
candidates of recognised political parties. This Act also amended Section 77(1)
rq!;arding maintenance of election expenses by candidates whereby expenditure
incurred by specified number of 'leaders' of a political party on account of
travel by air or by any other means of transport for propagating programmt:'
of the political party alone shall N' exempted from being included in the
account of election expenSt's incurred by the candidate in connection with the
Tht:' Parliament on I January 2004 enacted the Delimitation (Amendment)
Act. 2003 whereby Section 4 of the Principal Act was amended to provide
that the Delimitation will be held on the basis of the 2001 Census figures.
The Parliament on 2R August 2003 enacted the Representation of the
Pl'ople (Amendment) Act, 2003 whereby open ballot system was mtroduced
at elections to the Council of States. In this system an elector who belongs
to a political party is required to show the ballot paper after marking his vote
to an authorised agent of that political party. The requirement that a candidate
contesting an eiel"iion to the Council of States from a particular State should
be an clt'ctor in that particular State was also dispensed with.
In c.w.P. No. 4912 of 1998 (Klishra Bharat Vs. Union of India and Others),
the Delhi High Court directed that infonnation relating to government dues
owed by candidates to the departments dealing with Government
accommodation, electricity, water, telephone and transport (including aircrafts

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and helicopters) and any other dues should be furnished by the candidates
and this information should be published by the election authorities under
the Commission in at least two newspapers having local circulation, for
information of electors. Accordingly, the Commission modified items 3(a)(iii)
of the format of the affidavit prescribed vide its order dated 27 March 2003
relating to right to information of electors regarding the background of
candidates and also issued necessary directions to the District Election Officers
regarding publication of the information furnished by the candidates in the
newspapers as directed by the Delhi High Court.


Elections in India are events involving political mobilisation and organisational
complexity on an amazing scale. The General Elections to the 14th Lok Sabha,
the House of People were due in October 2004 but consequent to early
dissolution of the House, the Election Commission of India decided to hold
th~' elections to the Lok Sabha, State Legislative Assemblies of Andhra
Pradesh, Karnataka, Orissa and Sikkim, as well as fifteen bye-elections in
variuos states during April-May 2004.
General Elections 2004
Total Seats (Lok Sabha)
Number of election personnel
Number of EVMs used
Direct expenditure incurred


Approx. 4 million excluding paramilitary and police personnel

1.075 million
Approx. Rs 13,000 million

Number and Types of Lolc Sabha Constituencies

For General Candidates
Reserved for Scheduled Caste
Reserved for Scheduled
Tribe Candidates
Total Constituencies




On 29 February 2004, the Election Commission of India announced the

schedule of elections, with polling to be held in four phases on 20 and 26
April and 5 and 10 May 2004. The phasing of the elections has become a
necessity over the years due to large requirement of paramilitary forces and
time needed for their movement across various states. The phasing of polls
pays rich divide;tds was brought out by the fact that poll related violence
came down substantially. Later, the Commission decided to hold elections for


India 2005

two seats in Tripura on 22 April in<;tead of 20 April 2004 and for ont:' seat
in Andaman and Nicobar Islands on 20 April instead of 10 May 2004.

Electronic Voting Machine: The Repn.-sentation of People Act, 1951 was

amended by the Indian Parliament in 1989 to facilitate the use of EVMs.
However, they wt:'re really put to use only after a decade, when the
Commission took a bold initiative for introducing EVMs in 16 Assembly
Constituencies during Statt:' Legislative Assembly Elections in November 1998.
In Gl'Oeral Elections 2004, EVMs were used for the first time throughout the
country making the elections go fully electronic. The user-friendly EVMs could
be used even by the illiterates with ease. Since the EVMs work on battery,
eltctricity was not a problem. The polling personnel carried EVMs in
convenient boxes. Tht' use of EVMs was preceded by an elaborate training
programmt> and widespread campaign to educatl the voters, candidates,
political parties, media and the election staff. The failure rate of the machines
was negligible. The use of EVMs saved around 1,50,000 trees which would
haw otherwise been cut for production of about 8,000 tonnes of paper
required for printing the ballot papers, if traditional system of ballot boxes
was adoptlJd. The USt of EVMs made possible reduction in tht' number of
polling stations from 0.77 million to about 0.7 million, as the maximum
number of voters pt'r polling station could be incrl'ased to 1,500 from earlier
prescribed limit of 1,200. EVMs wert transportt'd to polling stations by all
imaginablt' means.

Political Parties : For these elt'ctions, there wert' six National Parties, fortyfive State Partips and 702 Registered Unrecognised Parties. Since about a
decadl', regional and smaller parties gained importance in Indian polity. They
havl.:' played a major roll' in Government formation through pre-poll and postpoll allianct's. There are no permanent friends or foes in politics becomes clear
when Indian context is analysed.
Canditlates : There wt're 5,435 candidates for 543 Lok Sabha seats and 4,504
candidates for 697 seats in four State Legislative Assemblies. The number of
women candidates was 354 and 324 respectively. Though the ceilings for
expenses to be incurred by the candidates were raised, due to strict observance
of Model Code of Conduct and monitoring of election expenses, the overt
publicity remained subdued. To ensure a level playing field, the Supreme
Court of India ordered regulation of advertisements on electronic media to
lx' put by the candidates and political parties. The candidates were required
to file affidavits declaring their assets and liabilities, educational qualifications,
Government dues and criminal cases pending against them, if any. These
affidavits were displayed on the notice boards of the offices of the Returning
Officers, and placed on the website of the Commission to enable the electors
make their informed choice. Some NGOs compiled this information and
circulated the same for the benefit of the voters.
Results : There were more than 1,200 counting centres spread over about 850


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towns in the country. The counting of votes for Andhra Pradesh State
Legislative Assembly was undertaken on 11 May 2004 and for Lok Sabha,
other State Legislative Assemblies and bye-elections on 13 May. The use of
EVMs made the process of counting easier and faster. The Commission made
elaborate arrangements to receive directly results from the Returning Officers
using GENESYS software. Th(' Commission's website received more than 10
milljo~ the day of counting.

Elections to Legislative Assemblies: The General Election to the Legislative

Assemblies of Gujarat and Jammu and Kashmir were held on 12 December
and in September-October 2002 respectively. Similarly poll to thE.> Legislative
Assemblies of Himachal Pradesh, Meghalaya, Nagaland and Tripura were
held on 26 February 2003. The General Elections to the Legislative Assemblies
of Mizoram was held on 20 November 2003 and that of Chhattisgarh, Madhya
Pradesh, Rajasthan and NCT of Delhi were held on 1 December 2003.
General Ele(. tion
to Legislative Assemblies of Andhra Pradesh, Karnataka,
Orissa and Sikkim were held in different phases as detailed below :
Statc(s) I UT(s)


Andhra Pradesh

20 Apri! 2004

26 April 2004
20 April 2004



26 April 2004
20 April 2004



Date of Poll

26 April 2004
10 May 2004


India 2005




The Polity


India 2005






























J.U 0





0 ~















The Polity

. r ...







, 'It' , 'E-








....... ;1,






AGRICULTURE is the mainstay of the Indian Economy. Agriculture and Allied

sectors contribute nearly 25 per cent of Gross Domestic Production (GOP),
whik ilbout 05-70 per cent of the population is dependent on agriculture for
thpir livelihood. The agricultural output, however, depends on mons(xm as
nearly 00 pt>r ccnt of area sown is dl'pendent on rainfall. During 2003-04 the
country experienced a very favourable monsoon which in turn pavl'd the way
for comfortable crop prospect during the year. According t(l the fourth
advance estimates on production of foodgrains and commercial crops releast'd
on 5 August 2004, the production of foodgrains during 2003-04, is estimated
at 212.05 million tonnes, which is more than tilt' food grains production of
2002-03 by 37,Ro million tnnnes or 21.7 per cent. The estimated production
of ric' at 87 million tOI1I1es is higher by ]4.34 million tom1es or 19.7 per cent
as compared to 2002-03. The production of wheat estimaif.'d af 72~06 million
tonnes also exceeds last year's (that is 2002-(3) production by 6.96 million
tonnes or 10.7 per Ct'nt. The production of coarse cereals estimated' at mi)
million tonnps is mort' than tht' last year's production by 12.47 million tonnes
or by 49.3 per cent. This quantum jump in tht> production of coarse cereals
is mainlv due to baj~!!laizl'. The production of baira is estimated at 11.79
million tonnes indicating a spectacular increase of 154.6 per cent over the last
year production of 4.63 million tonnes. In case of maize the production is
estimated at 14.72 million tonncs which is more than last years production
by 4.42 mill_inn tonnes or 42.9 per cent. The expected production of total pulses
at l~~. million tonnes shows 36.7 per cent increase over last year's production
of 11.14 million tonnes.
The estimated production of total oilseeds at ~ million tormes is more
than the last year's production by 10.09 miJIions tormes or by 67.0 per cent.
The production of cotton in 2003-04 is estimated at 13.79 million.!!.ales of 170
kg each which is more than the last year's production level by 5.07 million
bales indicating an increa~ of 58.2 per cent. Jute and Mesta production during
2003-04 is estimated at 11.20 million bales of 180 kg each which is lower than
the last year's production of 11.38 million bales. Sugarcane production is likely
to be 236.18 million tonnes, showing a reduction of 45.40 million tonnes or
16.1 per cent over previous year's production of 281.58 million tormes.
Annual growth of crop area, production and yield in respect of cereals,
oilseeds and other crops is given below:




(per a>nt per dnnum)

















-5 h5



Coarse Cereals







'llltal Cereals





1 HA7


Total PuISt,S



14, J:l

















Cotton (Lint)




-lh (]4

-12,H I
















All Principal Crops'










Prod urtion Yield


Based on Index Numbers with Triennium ending 1993-94- HXJ

There are three main crop seasons, namely, khtlrif, rabi and summer. Major kharif
crops are rice, jowar, bajra, maize, cotton, sugarcane, soyabean and ground nut.
Major rabi crops are wheat, barley, gram, linseed, rapeseed and mustard. Rice,
maize and groundnut are grown in summer season also.
Land utilisation statistics are available for 93.1 per cent of total geographical
area of 3,287.3 lakh hectares (ha). According to Land Use Statistics available
from States, area under forest had increased from 404.8 lakh hectares in 195()..
51 to 690.2 lakh hectares in 1999-2000. Net sown area increased from 1,187.5
lakh hectares to 1,412.3 lakh hectares during the same period. Broad cropping
pattern indicates that though food grains have a preponderance in gross
cropped area as compared to non-food grains, their relative share came down
from 76.7 per cent during 1950-51 to 65.8 per cent during 1999-2000. According
to Agricultural Census, the area operated by large holdings (10 hectares and
above) has declined to 14.8 per cent in 1995-% compared to 17.3 per cent


India 2005

in 1990-91. Similarly, the area operated under marginal holdings (less than one
hectare) has increased to 17.2 per cent in 1995-% from 15.0 per cent in 199091. This indicates that land is being fragmented.
The Technology Mission on OiISl.>eds was launched by the Central Government
in 19R6 to increase the production of oil seeds to reduce import and achieve
self-sufficiency in edible oils. Subsequently, pulses, oil palm and maize were
also brought within the purview of the Mission in 1990-91, 1992 and 199596 respectively. In addition, the National Oilseeds and Vegetable Oils
Dl'velopment (NOVOD) Board is also supplementing the efforts of Technology
Mission on Oilseeds, Pulses and Maize (TMOP) by opening of newer areas
for non-traditional oilseeds. It is promoting tree-borne oilseeds. The schemes
implemented under TMOP are (i) Oilseeds Production Programme (OPP);
(ii) National Pulses Development Project (NPDP); (iii) Accelerated Maize
Development Programme (AMDP); (iv) Post Harvest Technology (PHT);
(v) Oil Palm Development Programme (OPDP); and (vi) National Oilseeds
and Vegetable Oils Dl'velopment Board (NOVOD).
During the Tenth Plan, these schemes have been restructured as
(i) Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) by
converging the ongoing schemes of OPP, NPDP, AMDP and OPDP;
(ii) Research and Development in Post Harvest and Processing Technology
(PHT) in Oilseeds, Pulses, Oil Palm and Maize including TMOP headquarters;
and (iii) Integrated Ol'velopment of Tree-borne Oilseeds to be implemented
by NOVOD Board.
(Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize: In order to
provide flexibility to the States in implementation based on regionally
differentiated approach, to promote crop diversification and to provide
focused approach to the programmes, the four on-going schemes of OPP,
OPOp, NPOP and AMDP have been merged into one Centrally-Sponsored
Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) during
the Tenth Five Year Plan which is being implemented from 1 April 2004. The
scheme is implemented by 14 states for oilseeds and pulses, 15 states for Maize
and 10 states for Oil Palm.
The ISOPOM has the following special features (i) Flexibility to the states
to utilise the funds for the schemel crop of their choice; (ii) Annual action
plan to be formulated by the state governments for consideration and
approval of the Government of India; (iii) Flexibility to the states for
introducing innovative measures or any special component to the extent of
10 per cent of financial allocation; (iv) Involvement of private sector by the
state governments for the implementation of the programme with a financial
cap of 15 per cent; (v) Flexibility for inter component diversion of funds upto
20 per cent for non-seed components only; (vi) Diversion of funds from seed



components to non-seed components with the prior approval of the Department

of Agriculture and Cooperation; and (vii) Increase under staff and contingency
not permitted except by revision of pay scale and increase in rate of Dearness
Allowance with the prior approval of the Department of Agriculture and
New components of ISOPOM included during Tenth Plan are:
(i) Inclusion of HOPE pipes; (ii) Publicity; (iii) Involvement of Private Sector
including NGOs, Farmers' Organisation, Cooperative bodies, Public Sector
Agencies, etc; (iv) Innovative measures and additional components;
(v) Training of Officers/Extension workers; and (vi) Foreign Visits.
Implementation of oilseeds production programme has helped in
increasing the production of oilseeds from 108-30 lakh tonnes in 1985-86 to
249.80 lakh tonnes during 2003-04. The pulses production in the country
increased from 128.60 lakh tonnes in 1989-90 to 148.90 lakh tonnes in 200304. The area under pulses increast..d from 234.10 lakh ha in 1989-90 to 262.30
lakh ha in 2003-04. The area under Oil Palm increased from 8,585 ha at the
end of 1992-93 to 44,789 ha by the end of the Ninth Plan (2001-2002). Actual
production of Fresh Fruit Bunches (FFBs) at the end of the Ninth Five year
Plan (2001-2002) was 1,28, 873 tonnes, yielding around 22,613 tonnes of crude
palm oil (CPO). The production on Maize increased from 88.84 lakh tonnes
in ]994-95 to ]39.5 lakh tonnes in 2003-04 and the area under Maize increased
from 61.36 lakh ha in 1994-95 to 76.0 lakh ha in 2003-04.
UNDP Sub-Programme on Maize-based Cropping System for Food
Security in India: A Suh-programme on maize-based cropping system for
food security in India under GOI-UNOP Food Security programme for a total
amount of US $ 8,14,000 being fully funded by UNOp, for implementation
in six districts in three states viz., Bihar, Rajasthan and Uttar Pradesh for four
years, from 1999-2000, has also been undertaken.
Research and Development in Post harvest and processing Technology
in Oilseeds, Pulses, Oil Palm and Maize: The scheme of Post Harvest
Technology (PUT) for Oilseeds, Pulses and Maize was brought under the
purview of the TMOP & M with the objective of stepping up their production
through efficient scientific processing for realising the ultimate objectives of
self-reliance in edible oils and other crops and bringing about a position of
zero imports.

The Technology Mission has been emphasising on development of Post

Harvest Technology (PHT) with the follOwing objectives: (i) Optimising oil
recovery from oilseeds by developing efficient modern oil expellers;
(li) Tapping full potential of Rice Bran Oil (RBO) - in the country;
(iii) Developing value-added products in respect of oilseeds, pulses and maize
so that farmers are able to get a better/remunerative price; (iv) Designing
and developing indigenous technology for processing of non-conventional and
tree-bome oilseeds including oil palm; (v) Developing of indigenous technology

India 2005
in maize processing suitable in the context of Indian situation..; and
Dissemination of the R&D Technologies developed through demonstration
The indigenous technologies developed through R&D programmes are
popularised by setting up demonstration units in industries with partial grantin-aid assistance from TMOP&M, Department of Agriculture and Cooperation.
The partial grant-in-aid assistance is provided in the form of plant and
Integrated Development of Tree-borne Oilseeds by NOVOD Board:
National Oilseed and Vegetabll' Oils Development (NOVOD) Board is
exploring and augmenting the potential of Tree-borne Oilseeds (TBO's) in the
country by undertaking activities like nursery raising, plantation, installation
of pn'-processing and processing facilities, capacity building and need-based
research, etc.
Board has initiated plantation programmes of Jatroph~~c~s, and
pil1nala) for bio-diesel production in the country in more
than 1,150 h~ in various states. Besides, 5.10 lakh seedlings of other TBOs
like Neem, Wild Apricot, Tung, Cheura, Kokum, etc., have been raised and
planted in the potential states. Under awareness programme, 2,300 farmers
have been trained and motivated for raising TBOs. Eight oil expellers have
bet'n installed in the states of Andhra Pradesh, Bihar, Karnataka and Tamil
Nadu. R&D programmes have been made by making National Network on
Jatropha and Karanja by involving 28 institutions for conducting need based


For increasing production and productivity of various crops in the country,
the Statl' Governments submit Work Plan proposal under Macro Management
Scheme. The individual crop-wise schemes, viz., (i) Integrated Cereal
Development Programme in Wheat-based Cropping Systems Area (ICDPWheat, (ii) Integrated Cereals Development Programme in Rice-based Cropping
Systems Area (ICDP-Rice); (iii) Integrated Cereal Development Programme on
Coarse Cereal-based Cropping Systems Area (ICDP-Coarse Cereals);
(iv) Sustainable Development of Sugarcane-based cropping System (SUBACS);
and (v) Special Jute Development Programme (SJDP) have been subsumed
under Macro Management Mode since October 2001 to give more flexibility
to the State Governments. Central Sector Minikit Programmes of Rice, Wheat
and Coarse Cereals have been discontinued from 2002-03.
The Centrally-sponsored Scheme of Intensive Cotton Development
Programme (lCDP) which was merged with the Technology Mission on
Cotton, is continuing during 2003-04. This scheme is being implemented. with
collaboration between Ministry of Agriculture and Ministry of Textiles. This
scheme is being implemented in 13 States. The aim of the scheme is to increase



the production and quality of cotton. The scheme provides assistance for
extension and development activities.
As a new initiative, a Centrally-sponsored Scheme - On Farm Water
Management for encouraging crop production in eastern India has bt.>en
launched in March 2002. The objective of the scheme is to increase the
production and productivity of food grains through focus on exploitation of
ground / surface water and its efficient utilisation. The scheme will help in
enhancing the income of the farmers and diversifying agriculture production
in eastern India. The Scheme is in operation in all districts of Assam,
Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Manipur, Mizoram,
Orissa, nine districts of West Bengal and 35 districts of eastern Uttar Pradesh.
Ihe main components of the scheme are: (i) assistance for installation of
shallow tubewells with pump sets; (ii) assistance for electric/ diesel pump sets;
(iii) assistance for community lift irrigation points; and (iv) assistance for dug
wells in the plateau region. The scheme is being implemented as credit linked
back-ended subsidy basis through NABARD in coordination with the State
Governments. The funding pattern of the scheme is 20:30:50 basis, i.e., 20 per
cent contributed by the beneficiaries, 30 per cent subsidy from Government
of India and 50 per cent as bank loan.
India, with its wide variability of climate and soil, has good potential for
growing a wide range of horticultural crops such as fruits, vegetables, potato,
tropical tuber crops and mushrooms, ornamental crops; medicinal and
aromatic plants, spices and plantation crops like coconut, cashew nut, cocoa,
etc. Since the mid eighties, the Government identified horticulture crops as
a means of diversification for making agriculture more profitable through
efficient land use, optimum utilisation of natural resources and creating skilled
employment for rural masses, especially women folk with the past efforts
rewarding. India has emerged as the largest producer of coconut, arecanut
cashew nut, ginger, turmeric, black pepper and the second largest producer
of fruits and vegetables. Among the new crops, kiwi, olive crops and oil palm
have been successfully introduced for commercial cultivation.
The changing scenario encourages private investment to go for hi-tech
horticulture with micro-propagation, protected cultivation, drip irrigation,
fertigation, and integrated nutrient and pest management, besides making use
of latest post-harvest measures, particularly in the case af perishable
commodities. As a result, horticulture crop production has moved from rural
confines to commercial ventures.
Fruits: A large variety of fruits are grown in India. Of these mango, banana,
citrus, pineapple, papaya, guava, sapota, jackfruit, litchi and grape among the
tropical and sub-tropical fruits; apple, pear, peach. plum. apricot, almond and
walnut among the temperate fruits and anoia, ber, pomegranate, annona" fig,


India 2005

phalsa among the arid zone fruits are important. India accounts for about 10
per cent of the production of fruits in the world. It leads the world in the
production of mango, banana, sapota and acid lime and has recorded highest
pwductivity in grape. Mango is the most important fruit covering about 39
per cent of the area and accounts for 23 per cent of total fruit production
in the country. India's share in the world production of mango is about 54
per cent. Citrus ranks second in area and accounts for about 10 per cent of
total fruits in the country. Limes, lemons, sweet orange and mandarin cover
bulk of the an'a under this group of fruits. Banana ranks third in area covering
about 13 per cent of the total area. However, it is first in total production
being nearly one-third of total fruit production. Moreover, India occupies the
first position in banana production of 1.23 million tonnes. The percentage
share of production of fruit like guava, papaya is about four per cent and
litchi is about one per cent. The arid zones of the country are potential areas
for fruits like anoia, ber, pomegranate, annona, etc. There has been a steady
increase in the area and production of these fruits particularly anoia, ber and
pomegranate in the country as a result of identification and development of
suitable varieties and production technologies. In addition of these, date palm
and fig cultivation is also finding favour in suitable areas.
Vegetables: More than 40 kinds of vegetables belonging to different groups,
namely, solanaceous, cucurbitaceous, leguminous, cruciferous (cole crops),
root crops and leafy vegetables are grown in India in tropical, sub-tropical
and temperate regions. Important vegetabll' crops grown in the country are
tomato, onion, brinjaJ, cabbage, cauliflower, okra and peas. India is next only
to China in area and production of vegetables. India contributes about 13 per
cent to the world vegetable production and occupies first position in the
production of cauliflower, second in onion and third in cabbage in the world.
Spices : Spices constitute an important group of horticulture crops. India is
known as the home of spices and produces a wide variety of spices like black
pepper, cardamom (small and large), ginger, garlic, turmeric, chilly and a large
variety of tree and seed spices. Among various spices grown in the country,
chilly is the most widely grown spice with a share in the total production
of 33.7 per cent. The demand for chilly as a spice and its oleoresins as a natural
colouring material is growing in the domestic as well as international market.
Turmeric has a share of 21.6 per cent in the total production of spices.
Plantation Crops: Other than tea, coffee and rubber, rest of the crops which
are grown for commercial purpose in the country are covered under plantation
crops which include coconut, arecanut, cashewnut, cocoa, etc.
Coconut is an important crop and about 10 million people depend on
coconut cultivation, processing and related activities. In India, coconut is
grown mainly along the coastal states of the country and also in the NorthEast region. The coir obtained from processing coconut husk is of high
commercial value. Besides coir, shell based products have also gained entry



into the national and international markets. The coir pith made into brick like
structure is now used for raising horticultural plants especially in greenhouses.
Cashewnut assumes an important place in the Indian economy. India
produces 45 per cent of the global production of cashew. Besides, India is
the largest producer, processor, consumer and exporter of cashew in the world.
Flowers: Though flower cultivation has been practiced in India since time
immemorial, floriculture has blossomed into a viable business only in recent
years. Considering the potential this sector has in generating income and
employment opportunities, promoting greater involvement of women and
enhancement of exports, it has bt..>en identified as an Extreme Focus Area for
exports by the Government. India is known for growing traditional flowers
such as jasmine, marigold, chrysanthemum, tuberose, crossandra and aster.
Commercial cultivation of cut flowers such as rose, orchids, gladiolus,
carnation, anthurium, gerbera and lilies has also become popular.
Medicinal and Aromatic Plants: This sub-sector has high potential for health
management considering the importance being given to herbal products.
Concerted efforts have been made to consume the bio-diversity of the herbal
wealth by establishing 226 hectares of herbal gardens along with 16 nurseries
to provide quality planting material. Besides, 335 hectares have been developed
for production of quality planting material of aromatic plants. More than 6,000
demonstration-cum-seed production plots have been established in the farmer's
Bee-Keeping: In order to maximise horticulture production, honey bees can
be used as an important input for increasing the productivity of horticultural
crops through cross pollination. About 85 per cent crop plants are crosspollinated as they need to receive pollen from other plants of the same species
with the help of external agents. Honey bees wax and royal jelly give
additional income to the farmers.
Agriculture being a State subject, the primary responsibility for increasing
agriculture production, enhancing productivity and exploring the vast untapped
potential of the sector rests with the States. The role of the Centre is to
compliment and supplement their efforts in a catalytic way so that the efforts
of the States in agricultural development yield quick results, and benefits
percolate down to the poorest farmers. The Macro Management of Agriculture
Scheme which was evolved by integrating 27 identified schemes is being
implemented in all States/Union Territories since 2000-01. Under this scheme,
the states have been given flexibility to develop and pursue activities on the
basis of their regional priorities.
The new approach ensures that the funds placed at the disposal of the
States are not diverted for non-developmental and non-agriculture purposes
and are utilised for development of agricultural through specific interventions.

India 2005


The central assistance is released in lump sum on the basis of the proposals
contained in the Work Plan. The State Agriculture Department which is the
Nodal Department for the Macro Management Scheme further allocates funds
to other Departments/implementing Agencies in their States. The position
regarding Budget Estimates, Revised Estimates and Expenditure incurred
under the scheme for the years 2000-01 to 2003-04 is indicated below:(Rs


Budget Estimate

Revised Estimate

in Crore)



















Soil and Water Conservation measures are one of the essential inputs for
increasing agricultural output in the country. These programmes were first
launched during the First Plan. From the very beginning, emphasis has been
on development of technology for problem identificatio", enactment of
appropriate legislation and constitution of policy coordination bodies. While
conceptual framework of soil and water conservation activities has been
changed, concept of programmes has undergone considerable revision during
successive Five-Year Plans.
The Centrally-sponsored Scheme of Soil Conservation in the catchments
of River Valley Project (RVP) was started in Third Five-Year Plan. Subsequently
another scheme of Flood-Prone Rivers (FPR) was started in the Sixth Five Year
Plan keeping in view the magnitude of floods in the year 1978. Now, both
schemes have been clubbed together during the Ninth Five-Year Plan on
recommendation of Expenditure Finance Committee and further subsumed
under Macro Management Mode since November 2000. Under the programme
for the catchment management of River Valley Projects and Flood Prone
Rivers, 53 catchments are covered, spread over 27 States. The tota] catchment
area is %.14 mha with Priority Area needing urgent treatment in 26 mha.
Out of this 5.86 mha have been treated till 2003-04 with an expenditure of
Rs 1,743 crore.
A Centrally-sponsored Scheme of reclamation of alkali soil was taken
up in Punjab, Haryana and Uttar Pradesh during the Seventh Five-Year Plan.
The scheme was further extended to the States of Gujarat, Madhya Pradesh
and Rajasthan during the Eighth Five-Year Plan. During Ninth Plan extension
of the scheme to all other States of India was approved where alkali soil
problems exist as per scientific parameter. The scheme aims at improving
physical conditions and productivity status of alkali soils for restoring



optimum crop production. The major components of the scheme include,

assured irrigation water, on farm development works like land levelling,
bunding and ploughing, community drainage system, application of soil
amendment organic manures, etc. An area of 0.62 mha out of 3.5 mha of alkali
land has been reclaimed till the end of 2003-04 in the country. The scheme
at present, stands subsumed in Macro Management Scheme.
Another project for alkali land reclamation and development has been
taken up in D.P. and Bihar with the help of EEC at an estimated cost of
Rs 85.80 crore out of which Government of India's share is Rs 6.88 crore. The
project envisages reclaiming 15,000 hectares (ha) of alkali soils during its life
span of seven years. An area of 30,825 ha has been reclaimed till the end
2000-01 (terminal year).
The scheme of Watershed Development Project in Shifting Cultivation
Areas (WOPSCA) was launched in seven north-eastern States during the
Eighth Plan from 1994-95 with 100 per cent Central assistance to the State
Plan. The scheme aims at overall development of jhum areas on watershed
basis. During Eighth Plan an amount of Rs 40.826 crore was released to the
States of north-east region and 0.67 lakh ha area was treated through treatment
packages. During Ninth Plan up to March 2002, 1.5 lakh ha have been treated
with an expenditure of Rs 82 crore (against the approved programme and
unspent balance of Eighth Plan). The new guidelines of the scheme on the
basis of new watershed to common approach has been effective from
November 2000 in the revised cost norms of Rs 10,000 per ha on net treatable
area basis with additional activities and improved institutional mechanism.
During Tenth Plan, an area of 0.4 lakh ha has been treated at an expenditure
of Rs 40 crore up to 2003-04.

Rainfed Farming is complex, diverse and risk prone and is characterised by

low levels of productivity and low input uses. The Government has accorded
high priority to the holistic and sustainable development of rainfed areas
through integrated watershed development approach. The key attributes of
the watershed approach are conservation of rain water and optimisation of
soil and water resources in a sustainable and cost-effective mode. Improved
moisture management increases ~e productivity of improved seeds and
fertiliser. So conservation and productivity enhancing measures become
A National Watershed Development project for Rainfed Area (NWDPRA)
was launched in 1990-91 in 25 states and two UTs. The project was continued
during Ninth Five Year Plan in 28 states inclusive of three newly created states
and two UTs with the purpose of increasing agriculture productivity and
production in rainfed areas. The guidelines for NWDPRA has been radically
restructured by retaining the technical strength and incorporating community
participation. The watershed development programme is now planned,
implemented., monitored and maintained by watershed communities. During


India 2005

Ninth Plan, an area of 27.66 lakh ha has been treated. Now the scheme of
NWDPRA has been subsumed in macro-management of agriculture. The
scheme is being continued for implementation during Ninth Plan under the
revised guidelines, with people's partidpation, covering more than 6,000
micro-watersheds. It is estimated to develop an area of about 20 lakh ha
during Tenth plan.
A Watershed Development Fund (WDF) has been established at NABARD
with the objectiw of integrated watershed development in 100 priority
districts of 18 States through participatory approach. A total corpus of WDF
is Rs 200 crore. Under WDF two-third of amount is given for loan-based
projects and one-third of amount is given for grant-based project in the State.
A number of externally aided projects are also under implementation on
watershed approach, which covers an area of about 1.5 lakh ha. annually.


The main concern of INM Division is to ensure adequate availability of quality
fertilizers to farmers through periodical demand assessment and timely
supply through ECA allocations, promoting soil test based judicious and
balanced use of chemical fertilizers in conjunction with organic manures and
bio-fertilizers, promotion of organic farrning and ensuring quality control of
fertilizers through implementation of Fertilizer (Control) Order, 1985, to give
additional thrust on integrated USf' of all sources of plant nutrients through
chemical fertilisers and organic manures, etc.

India~ is the third largest producer and consumer of fertilizers in the

world after China and USA. Against 16.09 million tonnes of fertilizer nutrients
(NPK) consumed during 2002-03, the nutrient consumption is estimated to
17.47 million tonnes during 2003-04. The consumption of major fertilisers,
namely, Urea, DAp, MOp, SSP and Complexes are estimated to be 20.00, 6.05,
2.01, 2.61 and 5.12 million tonnes respectively during 2003-04. India is 100
per cent self-sufficient in respect of urea and about 95 per cent in case of
DAP. All-India average fertiliser consumption is ~2.l kg per ha though there
is wide variation from State to State from 181 kg in Punjab, 167 kg in Haryana
to less than 10 kg in States like Arunachal Pradesh, Nagaland, Sikkim, etc.
Considering the skewed pattern of fertilizer use, Government is promoting
the balanced and integrated use of fertilizer nutrients through various
initiatives. As a result, NPK consumption ratio has improved to 6.5:2.5:1
during 2003-04 from 7.0:2.7:1 during 2000-01.
The Government is implementing a Centrally-sponsored Scheme 'Balanced
and Integrated Use C1f Fertilizers' to popularise soil test based judidous
application of fertilisers in combination with organic manures and biofertilisers.
In addition finandal assistance was provided for setting up / strengthening of
new soil testing laboratories for advising farmers on major and micro nutrients
application, training and demonstration on balanced use of fertilisers and also



production of useful organic manure from city waste / garbage. It has now been
subsumed in macro-management Scheme and the State / UTs can implement the
programmes through their Work Plans.
The Central Sector scheme 'National Project on Development and Use of
Biofertilisers' provides assistance for setting up of new production capacities
of different types of biofertilisers, its promotion and quality control through a
National Bio-fertiliser Development Centre at Ghaziabad and its six regional
centres located at Jabalpur, Nagpur, Bangalore, Bhubaneswar, Hissar and
lmphal. There are presently around 125 biofertiliser production units in the
country with an annual capacity of 18,000 tonnes of different types of
biofertilisers and the annual production is about 10,000 metric tonnes. This
scheme will be subsumed into new scheme on '~~tional_P._rQie.ct...on._Organic
Farmi~ during the remaining period of Tenth Plan. It has been formulated
forthe production, promotion, market development and regulation of organic
farming in the country with an outlay of Rs 63.26 crore during the remaining
period of the plan.
The Government ensures the quality of fertilizers through Fertiliser
Control Order (FCO) issued under Essential Commodities Act to regulate the
price, trade, policy and distribution of fertiliswers in the country. The State
Governments are the executive agencies to implement the various provisions
of FCO. The Order strictly prohibits the manufacture, import and sale of any
fertiliser, which does not meet the prescribed standards. The Central Fertilizer
Quality Control and Training Institute at Faridabad and its three Regional
centres located at Navi Mumbai, Chcnnai and Kalyani have been set up for
inspection and analysis of imported and indigenous fertilisers, giving technical
advice and providing training on quality control to State enforcement agencies
and Analysts. The Institute has also developed a quick testing kit for onthe-spot detection of adulteration in fertilizers.
The FCO has been recently amended to make it more user-friendly and
ensuring effective enforcement. The important amendments include provision
for repackaging of cut or tom fertiliser bags and reprocessing of damaged
fertiliser due to natural calamities and provisions for commercial trials of
provisional fertilizers. Accordingly; National Fertilizers Limited (NFL), 'IndoGulf Fertilisers and Shri Ram Fertilisers have been permitted to manufacture
neem-coated urea for commercial trials and IFFCO has been permitted to
manufacture fortified complex fertilisers with Boron and Zinc. Printing of
MRP on all fertilisers including urea is now mandatory and also the printing
of month and year of manufacture of fertilizer import.

Price of fertilizers and Concession/Subsidy: The price of urea fertilizer is

fixed by the Government. To ensure adequate availability of fertilizers to
,farmers at reasonable rates, subsidy is provided by Government. Urea, the

India 2005


,--------------- .- . _---- -_._.._ - - - - - - - - - - - - - ,

Agricultural Production
(In Lakh Tonnes)
,~ .















Est/"."s II on5 August 20tU



most consumed fertilizer, is subsidised under the New Urea Pricing Scheme,
whereas P and K fertilizers, which are decontrolled, are covered under
Concession Scheme. The existing scheme for special freight subsidy has been
continued for supplies to the north eastern States and Jammu and Kashmir.
The price of Urea continues to remain same during 2003-04 at Rs 4,830 per
MT. Rate of concession on sale of decontrolled P and K fertilizers during
2003-04 (as on 31 March 2004) and MRP is as under:
(Rs. per MTs)
Fertilizer Product



DAP (Indigenous)



DAP (Imported)








Price of SSP is fixed by

State Governments


Plant Protection continues to play a significant role in achieving targets of
crop production. The major thrust areas of plant protection are promotion of
Integrated Pest Management, ensuring availability of safe and quality pesticides
for sustaining crop production from the ravages of pests and diseases,
steamlining the quarantine measures for accelerating the introduction of new
high-yielding crop varieties, besides eliminating the chances of entry of exotic
pests and for human resource development including empowerment of
women in plant protection skills.
Presently, two Central Sector Plan Schemes are being implemented to
achieve -the main objectives of Plant Protection strategy in the country :

Strengthening the Modernisation- of Pest Matulgement A1'1'f'Oach in India:

This scheme has the following four components: (i) Promotion of Integrated
Pest Management; (ti) Locust Control and Research; (iii) Tr'aining in Plant
Protection; and (iv) Implementation of Insecticides Act.

Promotion of Integrated Pest Matulgement : Keeping in view the ill effects

of chemical pesticides such as development of pest resistance, pest resurgence,
outbreak of secondary pests, pesticide residues in food, fodder, soil, air and
water resulting in human health hazards and ecological imbalances, Government
has adopted Integrated Pest Management (!PM) as cardinal principle and
main plank of plant protection strategy in the country. !PM is an eco-friendly


India 2005

approach aimed at minimum use of chemical pesticides by employing available

alternative methods for pest control like cultural, mechanical and biological use
of bio-pesticides.
As one of the main features of this programme, emphasis has been laid
on human resource development. In addition, FAO-EU Project on Cotton IPM
in Asia has also organised Training of Facilitators (ToF) courses on Cotton.
To enhance the production of bio-control agents/bio-pesticides,
Government earmarked Rs 1,500 lakh as grants-in-aid during Eighth and
Ninth Plans for the establishment of 30 State Bio-control Laboratories.
With the adoption of IPM approach, consumption of pesticides has come
down from 72,133 MT (tech. grade) during 1991-92 to 41,020 MT (tech. grade)
during 2003-04 and there is consistent increase in use of bio-pesticides which
are environmentally safe. In some of the States, farmers have stopped using
chemical pesticides and have adopted organic farming.

Locust Control and Research : The Locust Warning Organisation, Jodhpur

with its five locust circle offices and 23 locust outposts monitors two lakh
sq km Scheduled Desert Area in Rajasthan, Gujarat and Haryana for locust
surveillance and control. Ouring 2003-04, an area of 240 lakh ha. has been
surveyed and 24 locust bulletins have been issued. Close liaison is being
maintained with other locust-prone countries and, the FAO to keep watch over
possible locust invasion.


Training in Plant Protection : Until 1966, there was no training facility in

India to cater to the needs of the States. To bridge this gap, the National Plant
Protection Training Institute was established in 1966 at Hyderabad (A~dhra
PraaesFif'The Iilstittitellas been recognised as a Regional Training Centre for
Plant Protection by Food and Agricultural Organisation of the United Nation')
and also as an Advancr'd Centre for training in Plant Protection Technology
by the World Bank. The Institute has conducted 843 courses and trained 15,553
officers/ officials including 216 foreigners up to 2003-04.
Implementation of Insecticides Act : Pesticides are commonly used in crop
protection measures for sustaining food production. These are also used for
the control of vector borne diseases. Besides, being toxic by their nature, they
are hazardous to human beings and ecosystem. The residues enter into food
chain and cause harm to human and animal health. Keeping this in view, their
import, manufacture, sale and use, etc., are being regulated under the
Insecticides Act, 1%8 and the Rules framed thereunder.
The Central Government has constituted Central Insecticides Board to
advise the Central and State Governments on technical matters arising out
of the administration of this Act. Director General, Health Services is the
Chairman of the Board with 29 members. The Central Government has
constituted Registration Committee to register pesticides after examining their



formulae verifying their efficacy and safety to human beings, animals and
The Government has also set up a Central Insectiddes Laboratory with
the major objectives of pre and post registration verification of the properties,
performance and hazards of pesticides and the proposed use claimed by the
manufacturers. To supplement the resources of the States/UTs in the analysis
of pesticides, two Regional Pesticide Testing Laboratories have also been set
up at Chandigarh and Kanpur with an analysis capadty of 900 samples per
annum each ..
Plant Quarantine activities are intended to prevent and control/contain exotic
pests and diseases into the country by adoption of suitable domestic plant
quarantine measures. In order to achieve this goal, the provisions of
Destructive Insects and Pests Act, 1914 and the Plants Quarantine (Regulation
of Import into India) Order, 2003 are being implemented. Besides, the work
pertaining to Post Entry Quarantine inspection/ surveillance in respect of the
identified plants/planting material in pursuance of Plant Quarantine Order,
2003 assigned to the Inspection Authorities who are the scientists of the State
Agricultural Universities. The Export certification and issuance of phytosanitary
certificate is undertaken by the Plant Quarantine Stations. Five Regional Plant
Quarantine Stations at New Delhi, Mumbai, Chennai, Kolkata and Amritsar
have been strengthened under UNDP Project in view of increased import and
export of agricultural commodities under WTO provision. Out of 33 Plant
Quarantine Stations, 10 Stations are located at Airport, 10 Stations at Seaports
and 13 Stations at Land Frontiers.
Strategies and programmes have been directed towards replacement of
traditional and inefficient implements by improved ones, enabling the farmers
to own tractors, power tillers, harvesters and other machines, availability of
custom services, support services of human resource development, testing and
evaluation and research and development. A large industrial base for
manufacturing of the agricultural machines has also been developed.
Introduction of technolOgically advanced equipment through extension and
demonstration besides institutional credit has also been taken up. Equipments
for resource conservation have also been adopted by the farmers.
Under various Government sponsored schemes like Macro Management
of Agriculture, On Farm Water Management, Technology Mission for Oilseeds
and Pulses, Technology Mission on Horticulture and the Technology Mission
on Cotton, financial assistance is provided to the farmers for the purchase
of identified agricultural implements and machines.

Farm Machinery Training and Testing Institutes : Farm Machinery Training

and Testing Institutes (FMT&TIs) have been established at Budni (Madhya
Pradesh), Hissar (Haryana), Garladinne (Andhra Pradesh) and at Biswanath


India 2005

Chariali (Assam) having capacity to train 5,000 personnel annually on various

aspects of agricultural mechanisation. These institutes also undertake testing
and performance evaluation of agricultural machines including tractors in
accordance with the national and international standards. The new programme
on outsourcing of training for farmers through identified institutes in the
States has also been, recently, approved. This would enable to train large
number of farmers at near by institutions.

State Agro Industries Corporations : Seventeen State Agro Industries

Corporations, the Joint Sector Companies have been promoted by the
Government of India and by the certain State Governments. The objectives
of these Corporations envisage manufacture and distribution of agricultural
machines, distribution of agri-inputs, promotion and execution of agro-based
industries and providing technical services and guidance to the farmers and
others. The Government of India's share in six State Agro Industries
Corporations, namely, Tamil Nadu, Kamataka, Rajasthan, Gujarat, Uttar
Pradesh and West Bengal have been disinvested in favour of the respective
State Governments.
Legislative Framework: The Dangerous Machines (Regulation) Act, 1983,
came into force with effect from 14 September 1983. The act provides for the
regulation of trade and commerce and production, supply and use of products
of any industry producing dangerous machines with a view to securing the
welfare of persons operating any machine and for payment of compensation
for death or bodily injury suffered while operating any such machine. Power
threshers used for threshing of the agricultural crops have been brought under
the ambit of thi.... Act. The Government of India have notified the Dangerous
Machines (Regulation) Rule, 1985 laying down the specifications for the
feeding chutes and for installation of the power threshers.
The Department of Agriculture and Cooperation lays down major policy
guidelines on extension matters and the Directorate of Extension implements
specific programmes and activities. The thrust areas include extension reforms,
augmentation of mass-media support, agriclinic-agribusiness centres and
other extension programmes, etc.
Seed is a critical and basic input for enhancing agricultural production and
pfoductivity in different agro-climatic regions. Indian seed programme largely
adheres to the limited generation system for seed multiplication. The system
recognises three generations, namely, breeder, foundation and certified seeds
and provides adequate safeguards for quality assurance in the seed
multiplication chain to maintain the purity of variety as it flows from the
breeders to the farmers. The level of certified/ quality seed distributed to the
farmers during 1999-2000 to 2002-03, anticipated during 2003-04 and the target
for 2004-05 is given below :



(in IIIkh quint.'s)


Certified / quality seed distribution










117.00 (Anticipated)


127.40 (Target)

Structure of seed industry: Indian seed programme includes the participation

of Central and State Governments, Indian Council of Agricultural Research
(lCAR), State Agricultural Universities (SAU) system, public sector, cooperative
sector and private sector institutions. Seed sector in India consists of two
national level corporations, i.e., National Seed Corporation (NSC) and State
Farm Corporation of India (SFCI), 13 State ~ Corporations (SSCs) and
about 100 major sector seed companies. For quality control and certification,
there are 22 State Seed Certification Agencies (SSCAs) and 101 State Seed
Testing Laboratories (SSTLs). The private sector has started to play a
significant role in the production and distribution of seeds. However, the
organised seed sector particularly for food crops cereals continues to be
dominated by the public sector.
Legislative Framework. and Policy: The Seeds Act, 1966 provides for the
legislative framework for regulation of quality of seeds sold in the country.
The Central Seed Committee (esc) and the Central Seed Certification Board
(CSCB) are apex agencies set up under the Act to deal with all matters relating
to administration of the Act and quality control of seeds. The proposed Seeds
Bill, 2004 in replacement of the Seeds Act, 1966 is currently under consideration.
In order to encourage export of seeds in the interest of farmers, the
procedure of export of seeds has been simplified. Seeds of various crops have
been placed under Open General Licence (OGL) except seeds of wild varieties,
germplasms, breeder seeds, jute seeds and onion seeds, which are on restricted
list under the new Export and Import Policy for 2002-07.
Establishment and maintenance of Seed Bank Scheme: This Department
launched a Central Sector Scheme during the Ninth Plan period. The main
objective of the scheme is to make available seeds for any contingent situation
arising out of natural calamity, etc., and also to develop necessary infrastructure
for storage of seed. The scheme is being implemented through National Seeds
Corporation, State Faxms Corporation of India and 12 State Seeds Corporations.
The scheme is being continued during Tenth Plan period and participation
from those states is also being solicited where seed corporations have not been


India 2005

Legislation on Plant Varieties and Farmers Right Protection: In order to fulfil

the obligations under TRIPS Agreement of the World Trade Organisation (WTO)
which India has ratified, the DAC has enacted legislation on a sui generis system
for protection of plant varieties and Farmer' Rights. In order to provide
necessary back up support for enactment of above legislation, a Central Scheme
for implementation of PVP Legislation has been formulated. The required rules
and regulations under the Plant Varieties and Farmers' Rights Act have been
notified in 2003. The Protection and Plant Varieties and Farmers' Rights
Authority envisaged under the Act will be set up shortly.

The Directorate of Marketing and Inspection (OM!) extends support to the

Central and State Governments on agricultural marketing policies and
programmes and implement various schemes under them. It has its Head
Office at Faridabad, Branch Head Office at Nagpur, 11 regional offices, 32 sub~
offices and 23 Regional Agmark laboratories spread allover the country.
Tht' DMI administers the Agricultural Produce Grading and Marketing
Act, 1937 as amended in 1986. The grade standards notified under the Act
are popularly known as Agmark standards and such standards have been
formulated and notified under the Act in respect of 165 agricultural and allied
produce. As a result of special efforts initiated to increase grading under
Agmark, 319 new packers were enrolled during 2003-04. During 2003-04
commodities valued at Rs 32 crore were graded for export. During this period,
agricultural commodities worth Rs 4,100 crore were graded under Agmark
for domestic trade.
The DMl undertakes marketing, research, surveys and in-depth studies
of marketing system for various agricultural commodities in the country and
suggests remedial measures. The Directorate has conducted country level
studies on estimation of marketable surplus and post-harvest losses of 12
foodgrains. Reports for all the 12 foodgrains, viz., Paddy, Wheat, Jowar, Bajra,
Maize, Red Gram Lentil, Green Gram, Ragi, Bengal Gram, Barley and Black
Gram are under finalisation. Reports for remaining food grains are under
preparation. So far, DM] has brought out 328 reports on marketing of various
agricultural and allied commodities. Under Research Grants Scheme, 33
research studies have been carried out on subjects related to agricultural
marketing. The DM! is implementing the Meat Food Products Order, 1973
which stipulates ensuring quality control and hygienic manufacturing conditions
of meat food products for domestic consumption. A total of 200 lice~R are
operating under the Order. Meat food products valued at Rs 34.37 crure were
manufactured during 2003-04 by thtse licensed manufacturers. The scheme
of MFPO, 1973 has since been transferred to Ministry of Food Processing
Industries from 2 April 2004.
The Directorate is implementing a Central Sector Scheme 'Market
Research and Information Network' to establish a nationwide network for
speedy collection and dissemination of market information. Under this
scheme, 735 important agricultural produce markets and 48 offices of State



Agricultural Marketing Boards/INpartments as well as 27 DMI offices (total

810 nodes) have been provided with computer facilities and internet connectivity
till 2002-03.

With a view to create scientific storage capacity with allied facilities in

rural areas to meet the requirements of farmers for storing farm produce,
processed farm produce, consumer articles and agricultural inputs, promotion
of grading, standardisation and quality control of agricultural produce to
improve their marketability, prevention of distress sale immediately after
harvest by providing the facility of pledge financing and marketing credit and
to strengthen agricultural marketing infrastructure in the country, another new
scheme 'Construction of rural godowns' is also being implemented by the
Directorate. Under the scheme, 25 per cent back-ended subsidy on the proje<.."'t
costs have bt.>en provided for the purpose. The scheme which was initially
introduced for two years (2001-02 to 2002-(3) was extended upto 30 September
2004. Under the scheme, so far 4,380 number of projects involving storage
capacity of 90.87 lakh tonnes have been sanctioned by NABARD/NCDC for
creation of rural god owns. Besides, projects with capacity of 0.66 lakh tonnes
were sanctioned by NCDC for renovation of godowns.
Ch. Charan Singh National Institute of Agricultural Marketing (NIAM):
Ch. Charan Singh National Institute of Agricultural Marketing started
functioning at Jaipur (Rajasthan) with effect from 8 August 1988. The institute
has been imparting training to senior and middle level executives of
agricultural and horticultural departments, agro industries, corporations, state
marketing boards, Agricultural Produce Marketing Committees and apex level
cooperatives, Commodity board, export houses recognised by Agricultural
and Processed Food Products Export Development AuthOrity (APEDA),
Commercial banks and non-governmental organisations. Besides these clients,
the institute also imparts training to farmers on marketing management.
The Institute is managed by a Governing Body under the Chairmanship
of Minister for Agriculture and an Executive Committee under the
Chairmanship of Secretary, Department of Agriculture and Cooperation.


The Cooperative movement in India traces its origin to the agriculture and
allied sector and was evolved as " mechanism for pooling meager resources
of the people with a view to providing them the advantages of economics
of scale. After independence, the cooperatives were considered as part of the
strategy of planned economic development. The cooperatives are today at the
cross road of existence particularly in view of the fast emerging scenario of
economic liberalisation and globalisation. These institutions in general suffer
from resource constraint, poor governance and management, inefficiency and
inviability. The cooperative reforms are, therefore, vital to the future of the


India 2005

Autonomy of Cooperatives: The new Multi-State Cooperative Societies (MSCS)

Act, 2002 broad based on the recommendations of the Ch. Brahm Perkash
Committee has been enacted by the Parliament and brought into force from 19
August 2002. The Act aims at providing full functional autonomy and
democratic management to the societies. The Government's powers to give
direction and suppression of the Board has been restricted to such societies
in which the Government holds 51 per cent or more equity. The societies are
free to raise resources by receiving deposits, raising loans and grants. Under
the Act, the federal cooperatives have more responsibilities and the disputes
would be settled through arbitration at the choice of the society. Auditor would
be appointed by the society itself.
The NCDC (Amendment) Act, 2002 : The NCDC (Amendment) Act, 2002 has
been enacted and has come into effect from 16 September 2002. Now, NCOC
shall be financing more activities allied to agriculture, like animal husbandry
products such as milk, meat, skin, wool, etc., to help augment the earnings in
the rural areas. Similarly, service sector and industrial cooperatives including
goods produced by the cottage and village industries will come within the
purview of the NCDC. The NCDC would also be able to undertake direct
financing of cooperatives against reasonable security and without State / Central
Government guarantee.
National Policy on Cooperatives: National Policy on Cooperatives has been
formulated by the Government in consultation with States/Union Territories.
The objective of the National Policy is to facilitate all round development of
the cooperatives in the country. Under the policy, cooperatives would be
provided necessary support, encouragement and assistance, so as to ensure
that they work as autonomous, self-reliant and democratically managed
institutions accountable to their members and make a significant contribution
to the national economy, particularly in areas which require people's
participation and community efforts.
The policy envisages, inter-alia, that the regulatory role of the Government
will be mainly limited to the conduct of timely elections, audit of the
cooperative societies and measures to safeguard the interest of the members
and other stake holders in the cooperatives. There shall, however, be no
interference in the management and working of the cooperatives. The
Government recognises the apolitical nature of cooperatives.
A Plan of Action for implementation of the Policy has been formulated.
The Action Plan envisages amendments of State Cooperative Acts on the lines
of model cooperative act suggested by Ch. Brahm Perkash Committee and
removal of restrictive provisions of the cooperative acts. State Governments
are being persuaded to undertake reforms in cooperative sector in accordance
with the Action Plan.


Animal Husbandry and Dairy Development plays a prominent role in the



rural economy in supplementing the income of rural households, particularly,

the landless and small and marginal farmers. It also provides subsidiary
occupation in semi-urban areas and more so for people living in hilly, tribal
and drought prone areas where crop output may not sustain the family.
Animal husbandry output constitutes about 30 per cent of the country's
agricultural output.
India is endowed with the largest livestock population in the world. It
accounts for 57 per cent of the world's buffalo population and 15 per cent
of the cattle population. According to Livestock Census (1997), the country
has about 19.9 crore cattle and nine crore buffaloes as compared to 15.5 crore
cattle and 4.3 crore buffaloes in 1951.
The contribution of livestock sector to the food basket in the form of milk,
eggs, and meat has been immense in fulfilling the animal protein requirement
of ever-growing human population. The present availability of human protein
in an Indian diet is 10 gm per person per day, as against a world average
of 25 gm. However, keeping in view the growing population, the animal
protein availability has to increase at least two-fold for maintaining the
nutritional level of growing children and nursing mothers in India.
Milk Production : During past five year plans, several measures have been
initiated by the Government to increase the productivity of livestock, which
has resulted in significant increase in the milk production to the level of 86.7
million tormes at the end of 2002-03 as compared to 17 million tormes in 195051. India has become the largest producer of milk in the world. The per capita
availability of milk is estimated to have increased to 230 gm per day during
2002-03 from 200 gm per day in 1996-97.
Egg Production : Poultry development in the country has shown steady

progress over the years. Egg production during 2002-03 was 39.8 billion
compared to only 11 billion over two decades ago. The target of Egg
Production was 41 billion during 2003-04. Currently, India ranks fifth in egg
production in the world.
Wool Production : The wool production in the country was 50.7 million kg
during 2002-03 as against 38 million kg in 1984-85. Wool Production target
for 2003-04 was set at 51.8 million kg.

Other Livestock Products : Livestock sector not only provides essential

protein and nutritious human diet through milk, eggs, meat, etc., but also
plays an important role in utilisation of non-edible agricultural by-products.
Livestock also provides raw material/by products such as hides and skins,
blooc:t. bone, fat, etc.
India possesses 27 acknowledged indigenous breeds of cattle and seven breeds
of buffaloes. Various Central and Centrally-Sponsored schemes are being


India 2005

implemented for genetic improvement of cattle and buffalo with a view to

enhance the per capita availability of consumption of milk through increased
milk production. Efforts are also made to protect and preserve the indigenous
cattle and buffalo in their native tract, which are facing threat of extinction.
The elite animals are selected and registered on the basis of their performance
for production of superior pedigree bulls, bull-mothers, frozen semen and
frozen embryos for future breeding improvements.
The National Project for Cattle and Buffalo Breeding envisages 100 per
cent grant-in-aid to implementing agencies. The Project will also promote
about 14,000 private artificial insemination (AI) practitioners and buildup an
annual frozen semen production capacity of 66 million doses. Since inception,
24 States have been assisted with Rs 159.11 crore for participating in the
A Central Herd Registration Scheme for identification and location of
superior germplasm of cattle and buffaloes, propagation of superior germ
stock, regulating the sale and purchase, help in formation of breeders' society
and to meet r('quirement of superior bulls in different parts of the country
is also being implemented. The Government has established Central Herd
Registration Unit in four breeding tracts, i.e., Rohtak, Ahmedabad, Ongole and
Ajmer. 92 milk-recording centres are functioning to register these breeds of
cattle, viz., Gir, Kankrej, Haryana and Ongole and in Buffalo Jasffrabadi,
Mehsani, Murrah and Surti.
The seven Central cattle breeding farms at Suratgarh (Rajasthan),
Chiplima and Sunabeda (Orissa), Dhamrod (Gujarat), Hessarghatta (Kamataka),
Alamadi (Tamil Nadu) and Andeshnagar (Uttar Pradesh) are engaged in
scientific breeding programmes of cattle and buffaloes and production of high
pedigreed bulls and frozen semen for cattle /buffalo breeding projects. During
2003-04, these farms produced 307 bull calves and supplied 157 high
pedigreed bulls for use under Artificial Insemination Programme in various
parts of the country. The Central Frozen Semen Production and Training
Institute, Hessarghatta (Karnataka) produced 10.81 lakh doses and supplied
10.28 lakh doses of frozen semen of high pedigreed Holstein Friesian, Jersey,
crossbred and Murrah bulls to different states for their AI programmes.

Poultry Development in India has made impressive progress during the last
three decades. At present, India ranks among the top five nations in egg
production in the world.
The private organisations are very well placed to meet the requirement
of high producing birds suited only for the intensive organised poultry sector,
but the unorganised sector is still neglected. It has been decided to club all
the existing 13 Central Poultry Development Organisations region-wise into
four Centres to converge the poultry development activities in a single



window system. Their major mandate now is only to encourage backyard / rural
During 2003-04,0.61 lakh of parent stock chicks were supplied by Central
Poultry Breeding Farms and 0.99 lakh ducklings were produced at Central Duck
Breeding Farm. Further, around 4,059 feed samples were analysed at Regional
Feed Analytical Laboratory and 1,027 farmers were trained at different Central
Poultry Development Organisations in various areas of poultry production.
A new Centrally-sponsored scheme called Assistance to State Poultry
Farms is being implemented during the Tenth Plan where one time assistance
is provided to suitably strengthen the farms in terms of hatching, brooding
and rearing of the birds with provision for feed mill and their quality
monitoring and in-house disease diagnostic facilities. The total allocation for
the scheme during Tenth Plan is R<; 25 crore. During the first two years of
the Tenth Plan, Rs 16,]4 crore was released for assisting 31 farms.
There are about 57.49 million sheep and 122.72 million goats in the country.
About five million households in the country are engaged in the rearing of
small ruminants (sheep, goats and rabbits) and other allied activities. The
estimated wool production was about 460 lakh kg during 2003-04.
Central Sheep Breeding Farm, Hissar is producing acclimatised exotic/
cross bred superior quality rams. The farm has supplied 510 rams and 50 ewes
during 2003-04 to different states.
The population of some of the pure bred small ruminants, equines, pigs and
pack animals has come down considerably and such breeds have come to the
category of threatened breeds in the country. The farms or the farmers unit
in their respective breeding tract are to be established with 100 per cent
Central assistance for breeds of these animals wherein their population is less
than 10,000 with active participation of State Governments and NGOs, etc.
A new Centrally-Sponsored Scheme for conservation of such threatened
breeds has been started during Tenth Plan with a budget outlay of Rs 1,500
lakh and a sum of Rs 345.50 lakh has been released to the States of Gujarat,
Karnataka, Punjab, Rajasthan, Tripura and Mizoram during first two years of
Tenth Plan under the scheme. There is a budget provision of Rs 600 lakh under
the scheme during 2004-05.
A Centrally-sponsored Scheme "Assistance to States for modernisation/
improvement of abattoirs and establishment of carcass utilisation centres and
primary hide flaying units" was implemented. The objectives of the Scheme
were to provide wholesome and hygienic meat, gainful utilisation of animal
by-products, prevention of environmental pollution and cruelty to animals.


India 2005

Under the scheme, financial assistance of Rs 1.97 crore for projects at Nammakal
(Tamil Nadu) and Raipur (Chhattisgarh) was provided and Rs one crore
revalidated for Amritsar (Punjab) during 2003-04. The scheme has been weeded
out from 31 March 2004.

There are more than 128 lakh pigs in the country of which approximately 14.5
per cent are graded and exotic variety. There are about 158 pig breeding farms
in the country run by the State Governments / Union Territories. Exotic breeds
like Large White Yorkshire, Hampshire and Landrace are maintained at these
A Centrally-sponsored Scheme namely, Assistance to State for Integrated
Piggery Development, was implemented for strengthening the pig breeding
farms in the States during Ninth Plan. During the period, an amount of
Rs. 1,521.87 lakh was released for strengthening the pig breeding farms in
various States. The scheme has been discontinued at the start of Tenth Plan.

For improvement of vast livestock resources through proper scientific methods,

availability of nutritious feed and fodder is essential. To make available
scientific fodder production technology, seven regional stations have been
established in different agro-climatic zones. These are engaged in production
and propagation of certified quality fodder seeds. During 2003-04, these
stations produced 130.80 MT of fodder seeds and conducted 1,880 field
demonstrations of new fodder varieties.
A Central fodder seed production farm at Hessarghatta (Karnataka)
produced 41.40 MT seeds of different varieties of fodder grasses/legume seeds
during 2003-04 and conducted 150 field demonstrations of new fodder
varieties. A Central minikit demonstration programme of fodder crops is
under implementation for popularising high-yielding fodder varieties on a
large scale.
Besides, a Centrally-Sponsored Scheme, viz., Assistance to State for Feed
and Fodder Development is being implemented for establishment of fodder
banks and enrichment of straw and cellulosic waste. This scheme has been
weeded out since 2002-03 but two components of the above scheme, i.e.,
establishment of fodder banks and enrichment of straw was revived up to
March 2004 on 75 per cent and 100 per cent Central share basis respectively.
During 2003-04, financial assistance of Rs 123.02 lakh has been provided
for enrichment of straw / cellulosic waste and Rs 76.99 lakh provided for
establishment of fodder bank.

The Indian Dairy Industry acquired substantial growth during the Eighth Plan,
achieving an annual output of over 69 million tonnes of milk. India's milk
output has not only placed the industry first in the world, but also represents



sustained growth in the availability of milk and milk products. The Government
implemented two schemes in the dairy sector during 2003-04.

(a) Integrated Dairy Development Projects in Non-operation Flood, Hilly

and Backward Areas : The scheme launched during the Eighth Plan period
is being continued during Tenth Plan with an outlay of Rs 175 crore. So far,
53 projects with an outlay of Rs 292.19 crore have been sanctioned in 23 States
and one UT. A sum of Rs 209.12 crore has been released to various State
governments up to 31 March 2004 and 149 districts have been covered. The
scheme has benefitted about 6.6 lakh farm families and organised about 11,059
Village Level Dairy Cooperative Societies till 31 March 2004. On the basis of
the recommendations of the evaluation studies, the process of modifying the
scheme has been initiated.
Assistance to Cooperative: The scheme aims at revitalising the sick dairy
cooperative unions at the district level and Cooperative federations at the state
level. The scheme is being continued during the Tenth Plan with an outlay
of Rs 130 crore. During the year 2002-03, an amount of Rs 16.65 crore was
released by the Government fOi' rehabilitation of 15 sick milk unions against
budgetary allocation of Rs 15 crore. The allocation for the year 2004-05 has
been fixed at Rs 15 crore for continuation of the scheme.

(d Milk and Milk Product Order-1992 : The Government notified the Milk
and Milk Product Order in June 1992. As per the proVisions of this order, any
person/dairy plant handling more than 10,000 litres per day of milk or 500
MT of milk solids per annum needs to be registered with the registering
authority appointed by the Central Government.

The Order was amended from time to time as per the decision taken by
Milk and Milk Product Advisory Board and as per request received from State
Governments. As per the amendment dated 26 March 2002, the provisions of
assigning milk shed has been done away with. The power of granting
Registration to the units up to two lakh litres per day processing capacity
where entire activities of units lies within a state has been delegated to
concerned State Registering Authority.

So far, Central Registering AuthOrity and State Registering Authority

have granted registration to 700 units with a combined capacity of 870.64 lakh
litres per day of milk up to 31 March 2004.

The Department of Animal Husbandry and Dairying has been undertaking

various production, input supply and infrastructure development programme
and welfare-oriented schemes besides formulating/initiating appropriate
policies to increase production and productivity in the Fisheries Sector.

India 2005

Fish production since 1980-81 is shown in the table below:

(lakh tmlnes)

































































P: Provisional

The fisheries sector has been one of the major contributors of foreign
exchange earnings through export. Export of fish and fishery products has
grown manifold over the years. From about 15,700 tormes valued at Rs 3.92
crore in 1961-62, exports have grown to 5.21 lakh tonnes valued Rs 6,793.05
crore in 2002-03.



The ongoing scheme of Development of Freshwater Aquaculture and Integrated
Coastal Aquaculture have been combined with four new programmes on
Development of Coldwater Fish Culture, Development of Water-logged Area
and Derelki water bodies into Aquaculture Estates, Use of Inland Saline /
Alkaline Soil for Aquaculture and programme for augmenting the Productivity
of Reservoirs. This scheme broadly has two components - Aquaculture and
Inland Capture Fisheries.




The Government has been implementing an important programme in inland
sector, viz., Development of Freshwater Aquaculture through the Fish Farmers
Development Agencies (FFDAs). A network of 429 FFDAs covering all
potential districts in the country are in operation. During 2002-03, about
23,032 ha of water area was brought under fish culture and 27,250 fish farmers
were trained in improved aquaculture practices through FFDAs.
With the objective of utilising the country's vast brackishwater area for shrimp
culture, an area of about 26,375 ha. was developed for shrimp culture till 200203 through 39 Brackishwater Fish Farmers Development Agencies (BFDAs) set
up in the coastal areas of the country. The agencies have also trained 340
Fishers in improved practices of shrimp culture during 2002-03. Presently
about 50 per cent of shrimp exported from the country is from aquaculture.
The Government is providing subsidy to poor fishermen for motorising their
traditional craft, which increases the fishing areas and frequency of operation
with consequent increase in catch and earnings of fishermen. About 37,950
traditional crafts have been motorised so far. The Government has also been
operating a scheme of reimbursing the Central excise duty on HSD oil used
by fishing vessels below 20 metre length to offset the operational cost, incurred
by small mechanised fishing boat operators.
The Government has been implementing a scheme with the objective of
providing infrastructure facilities for safe landing and berthing to the fishing
vessels. Since inception of the scheme, six major fishing harbours viz., Cochin,
Chennai, Visakhapatnam, Roychowk, Paradip and Sassoon Dock (Mumbai),
38 minor fishing harbours and 142 fish landing centres have been constructed.
14 minor fishing harbours and 46 fish landing centres are at various stages
of construction.
Important programmes for the welfare of traditional fishermen are (i) Group
Accident Insurance Scheme for active fishermen; (ii) Development of Model
Fishermen Villages; and (iii) Saving-cum-Relief Scheme.
The fishermen identified or registered with the States/UTs are insured
for Rs 50,000 against death or permanent total disability and Rs 25,000 against
partial disability. About 10.54 lakh fishermen were insured during 2003-04.
Under the Development of Model Fishermen Villages, 10,172 houses have
been sanctioned for the benefit of fishermen in 2003-04. Under the Savingcum-Relief component, financial assistance is provided to the fishermen
during the lean fishing season. About 4.l41akh fishermen were assisted under
the saving-cum-relief programme in 2003-04.


India 2005

The Central Institute of Fisheries, Nautical and Engineering Training, Kochi,
with units at Chennai and Visakhapatnam, aims at making available sufficient
number of operators of deep-sea fishing vessels and technicians for shore
establishments. Integrated Fisheries Project, Kochi, envisages processing,
popularising and test marketing of unconventional varieties of fish. The
Central Institute of Coastal Engineering for Fisheries, Bangalore, is engaged
in techno-economic feasibility study for location of fishing harbour sites.
Fishery Survey of India (FSI) is the nodal organisation responsible for survey
and assessment of fishery resources under the Indian Exclusive Economic
Zone (EEZ).


The Department of Agricultural Research and Education (DARE) Ministry of
Agriculture is responsible for coordinating research and educational activities
in agriculture, animal husbandry and fisheries. Besides, it helps to bring about
inter-departmental and inter-institutional collaboration with national and
international agencies engaged in the same and allied fields. Department
provides government support, service and linkage to the Indian Council of
Agricultural Research (ICAR).
ICAR has played a pivotal role in developing agricultural technologies, input
material and critical scientific base leading to self-sufficiency in food. The ICAR
is an autonomous apex body at the national level, which promotes science and
technology programmes in the areas of agricultural research, education and
extension education. The Council is directly involved in undertaking
fundamental as well as applied researches in the traditional and frontier areas
to offer solutions to problems relating to the conservation and management of
resources and productivity of crops, animals, fisheries, etc.
The research set-up of ICAR comprises 52 Central Institutes, 32 National
Research Centres, 12 Project Directorates and 91 All India Coordinated Research
Projects (AICRPs). For higher education in agriculture and allied fields there
are four deemed to be universities, 37 State Agricultural Universities (SAUs)
and one Central Agricultural University at Imphal.
The year 2003-04 received normal monsoon in over 90 per cent of the country.
Fortunately, during the year there was no major incidence of drought, disease
or insect pests. As a result of favourable weather conditions and timely and
adequate availability of inputs such as seeds, fertilizers, pesticides, feeds,
vaccines, medicines etc., India's foodgrains production is estimated to be 210.78
million tonnes.
Under Crop Improvement and Management germplasm being basic and
essential, 11,889 accessions of crops and their wild relatives were collected



through 186 explorations in different parts of the country. Besides, 33,092

accessions of diverse crops from various countries including 25 of transgenic
crops, were introduced and 45,093 accessions were processed for quarantine
clearance. The national Seed Genebank has been enriched with 20,453 accessions
and over 200 phyto-sanitary certificates were issued for export material. More
than 600 varieties and elite germplasm lines of 15 crops were fingerprinted.
Also, marker was identified to determine rate of ripening in tomato.
During the year, 19 varieties and one hybrid in rice, seven varieties in
wheat, one variety in barley, 11 cultivars in maize, two hybrids in sorghum,
three open-pollinated varieties and one hybrid in pearl millet were released for
their commercial cultivation in food crops for various agm-ecologies. Rice
variety Nidhi was found suitable for direct seeding under puddle conditions.
Besides, 10 varieties of wheat, two varieties of barley, five hybrids of pearl
millet and one variety of proso millet were identified for release. One variety
of foxtail millet was notified for cultivation in Rajasthan. In forage crops, five
varieties, one each in cowpea, tall fescue grass, Setaria grass, pearl millet and
berseem were released for cultivation.
Among pulses three varieties of pigeonpea, two varieties each of chickpea
and urdbean and one variety each of field pea and lentil were released/identified
for cultivation. Two varieties of arid legumes were identified for pre-release
seed multiplication. In oilst'eds, two varieties each of groundnut and rapeseedmustard, four of sesame, and one variety each of niger, soybean, sunflower,
safflower and linseed have been released / identified for cultivation. A stemrot-resistant groundnut genotype (CS 19) of interspecific origin was developed
for the first time. In commercial crops, six varieties/hybrids of cotton and five
varieties of sugarcane were released/notified/identified for commercial
cultivation. One variety of tobacco was also recommended for release.
The national test guidelines were framed for distinctness, Uniformity and
Stability (DUS) testing for all major crops. An atlas was prepared for quality
parameters of wheat. Other major achievements in the crop sector include:
production of 3,067 tonnes of breeder seed of different crops, popularisation of
rice-fhickpea system swer rice-wheat system for higher economical returns,
effective control of Kamal bunt on wheat with two foliar sprays of Trichoderma
viride, standardisation of simplified growth-room screening technique for
studying BotrJI.tis grex,-rot in detached spike of castor and development of
Expert System BIORICE for bio-control of rice pest.

In Improvement and Management of Horticultural Crops, 15 accessions of

guava and seven wine varieties and four natural mutants of grape were added
to gene bank. In banana, a novel technique to feed bunches through distal end
was developed to increase bunch weight. Packaging technology for banana
was standardised for export purpose. Embryo-rescue technique was
standardised in grape. Besides, improvement in sheJHife of grapes was noted
with, pre-harvest treatment of chitosan alone or in combination with
Trichodermll. In papaya, adoption o~ plant density of 555 trees per ha resulted
in 48 per cent more yield.

India 2005


In arid zone fruits, major accomplishments include collection of 12 new

frost-resistant genotypes of aotlia from mid-hills region of Himachal Pradesh,
introduction of six varieties of pomegranate and three varieties of fig, and
recommendation of two varieties (Kaithali and Gola) of ber and one variety
(APK 1) of pomegranate for commercial cultivation in rainfed Vertisols in
Arupukkotai region. Collection of apricot selection Suka, having red cheeks,
was a major finding in temperate fruits.
In vegetable crops, one variety and two hybrids of tomato and two varieties
of garlic were released for cultivation. One variety and one hybrid of chili; one
variety each of cowpea, pea and French bean; two varieties of okra; one hybrid
each of tomato, capsicum, bitter-gourd and cauliflower; and two hybrids of
brinjal were identified for release. Other major accomplishments include:
standardisation of technology producing quality tomato and capsicum and
discovery of a new species of be omo virus causin leaf curl in tomato. In
potato, four hybrids have been recommen ed or release an ~ssions
added to gerrnplasm. In tropical tuber crops, 65 new accessions/collection
have been added to germplasm.
In cassava, two triploid clones with higher extractable starch have been
identified for industrial use. In mushroom, 2] new wild mushroom species
have been collected. Oyster mushroom could be successfully grown on wheat
straw, rice straw and on leaves and stalk of maize. A cryopreservation technique
for preservation of Volvariella and Morchdla cultures was developed.
Six varieties of rose and five of gladiolus were released. About 450 species
belonging to 93 genera of orchids have been collected. The concerted research
efforts resulted in release of two high-yielding and high-quality ginger varieties
(IISR Mahima and IISR Rejatha) and one nutmeg clonal selection (IISR
Vishwashree) for cuitivation in Kerala and addition of accessions of ginger,
cardamom, turmeric, Garcinia, Citlnamomum and of nine seed spices to

In Natural ResourcE' Managl'ment, soil resource atlases of 24 districts for

sustainable land use, and soil erosion maps of Rajasthan, Madhya Pradesh and
Chhattisgarh were brought out, besides identification of important benchmark
soil series in four districts of Assam. Sustainable cropping system in rice fallows
of Brahmaputra valley of Jorhat, Assam, and critical areas for prioritised land
treatments in watersheds were identified. Mixed biofertilizer formulations
consisting of nitrogen-fixing organisms and phosphate-solubilising bacteria
(PSB) proved superior to individual inoculants.


The water resource development proved beneficial for cyclone-affected

farmers of coastal Orissa. Other salient achievements under water management
had been improvement in yield and quality of banana under drip irrigation,
gross benefit of Rs 5,070 per ha under zero tillage compared to conventional
method in wheat and usefulness of fish pond-cum-reservoir for economised
and multiple uses of water. The research conducted in saline coastal soils led
to the maintenance of rice and wheat yields even at 50 per cent NPK when



used in conjunction with farmyaro manure (FYM) or green manuring,

development of technologies for skimming and recharging freshwater in saline
groundwater regions, identification of caust.~s and remedial measures for
resodification of reclaimed soils in Uttar Pradesh, development of organic
practices for rice-based cropping systems in saline coastal soils and reclamation
of alkali Vertisols under rainfed condition.
Conservation furrow plots could store 4-37 per cent additional soil
moisture and resulted in higher bean and set'd yit'ld of castor and pigeonpea.
Tolerance of sorghum to biotic strcss could be tmhanced through genetic
manipulation. Development of a new technique of growing mattype nursery
for rice transplanters, improvement in nitrogl'n and phosphorus-uSt-' efficiency
through inclusion of forage cowpea in rice-wht.'at system and enhancement in
yield, soil organic carbon and available P and K with soil application of ferrous
sulphate, zinc sulphate and uft'a along with Asrlrr~i/lu!> awamoral' and
Trichoderma viridi in rice-wheat system are the salient features of crop
production research.
A low-cost passivl' cold chamber was developed for short-duration
preservation of vegetables and fruits. Spraying 2, 4-0 at the rate of 1.5-2.0 kg
per ha, glyphosate at the rate of 1.5 kg per ha on actively growing plants or
new soots of Ipomoea carnea, the most problematic weed, proved effective in
its control. An integrated management package for lantana had been developed.
In agroforestry research, 80 per cent success with in-sitll veneer grafting in
August-September and 25 per cent success with chip budding in August was
recorded when these were done on two or three years old plants of chironjee.
High survival, increased tree height, canopy diameter, dry leaf fodder and fuel
wood of Albizia procera were noticed during seventh year in natural grassland.
In ncem, 276 accessions were collected from eight states. On-line computerised
database was also developed for system of agroforestry in India. A website
named "Crop-Weather Outlook" has been developed under AICRPAM and
operates from CRIDA, Hyderabad. The site provides useful information on
crop-weather conditions in the country.

Under Livestock and Poultry Improvement and Management, database on
Indian livestock resources, infrastructure, animal production, products and
utilisation was made available in a single user-friendly package. Po_!ymorphism
of growth hormone gene inJ(aran Fries cattle and Murrah buffalo was revealed
for the first time in developing a strategy tor genetic selection ot dairy bulls.
Immune competence of purelines ot poultry was profiled, primarily for breeding
purposes. Buffalo ovary-released protein was identified as a marker for oestrous
and pregnancy detection. Genetic distance measures revealed that Nali and
Chokla sheep are genetically closer, while Carole sht..>ep is a distinct population.
Since Nicobari and Kashmir Favorolla poultry populations showed recent
genetic bottleneck, these require their special conservation efforts. For the first
time, neighbour-joining tree ot Indian goat breeds with wild goats could be


India 2005

Aseel and Kadakanath poultry breeds were utilised to develop CARINirbheek and CARI-Shyama for backyard poultry. A preliminary attempt was
made to grow embryonic stem cells in buffalo. Double window embryo culture
system for production of turkey embryos was developed for first time in the
world. This technique could be used for transgenesis, production of chimeric
birds and production of pharmaceutical proteins with egg gene promoters. The
technique will help in conserving rare and endangered poultry species.
The Frieswal cows recorded 3,570 kg milk yield in 300 days with peak
yield of 14.27 kg and lactation length 315 days. Average milk yield of Murrah
buffaloes was 2,928 kg. Genetic improvement studies are in progress in Hariana,
Gir, Ongole and tharparker breeds. In sheep, Chokla, Marwari and Magra are
being studied for carpet wool production and Madras Red, Ganjam,
Muzaffamagari, Nellore and Deccani for mutton production. In Barbari and
Jamunapari goats, genetic improvement and sire evaluation are in progress.
The National Research Centre on Pigs was established at Rain, Guwahati,
Assam. The Caribro-Tropicana birds ranked third in nineteenth Random Sample
Poultry Performance Test (RSPPT), Gurgaon, showing 1,750 gram body weight
by seven weeks of age. The CARl layer bird strain achieved top position in
hen-housed egg production at 31st RSPPT, Hessaraghatta, Bangalore. The
CARIBRO-Dhanraj birds could achieve 1,875 gram body weight at seven weeks
of age.
Complete nucleotide (nt) sequence of foot-and-mouth disease virus Asia
1 vaccine strain (IND 491/97) was determined. The National Animal Disease
Referral Expert System was evolved for monitoring and forecasting animal
diseases. Immunised kids showed reduction in growth of Theileria annulata.
Molecular techniques could be developed to unravel mysteries of disease
outbreak in natural conditions. Low volume saponified HS (Hemorrhagic
septicemia) vaccine for cattle and buffalo was prepared and is under trial in
a large number of cattle. Primer for identification of gastro-intestinal parasites
was developed for the first time. In pigs, diagnostic test was developed for
porcine reproductive and respiratory syndrome (PRSS). An indigenous killed
vaccine using EHV-l strain was developed, showing better immune response
than commercially available vaccine. PCR-ELISA was developed for differential
diagnosis of capri-pox virus. PCR was found to be the test of choice in
surveillance and monitoring of camel surra or trypanosomiasis. Non-isotropic
DNA probe was developed for detection of swine fever. A primer pair was
synthesised for using in duck plague virus detection by PCR. Diagnostic kits
were developed for rinderpest and pest des petits ruminants (PPR) and live
attenuated vaccine for PPR. Recombinant antigen-based diagnostics could be
developed for detection of bovine viral diarrhoea virus.
The potential dry-matter availability of animal feed resources increased
in Kamataka. Grain : straw ratio was found useful in determining dry fodder
availability. Cellulase gene from Ruminococus alb us could be cloned in
Escherichia coli. Feeding of chaffed maize improved the body weight in
crossbreed calves. Orphinomyces sp. (C 14) proved a better ruminal fungal
isolate in improving nutritive value of wheat straw-based diet. Rag; straw was
found to be a better source of dry matter, crude protein and fibre than paddy



straw. A technology was developed for preparation of chelate minerals. Nutritonal

remedies were suggested for sustainable cattle milk production.
Citric acid and neem bark powders were used to prevent fungal infestation
of stored feeds. Substitution of barley by Prosopis juliflora in sheep diet proved
satisfactory. Feed pellets for feeding goats were prepared using leaves of
subabul, neem, ber, peepul, siris, mulberry and desi babul. Milk Replacer
containing 24 per cent crude protein was found economical than mother's milk
for finisher goat kids. Approximately 15 species of rumen ciliates have been
identified in mithun.
The nutrient requirement was updated for various avian species.
Methionine-supplemented red sorghum diet improved the growth in birds.
Feed supplement zeosil plus could counter the adverse effects of aflatoxin.
Measured feeding of metabolizable energy in grower phase regulated body
weight gain and helped in achieving optimum performance. Krishibro chicks
performed normal even with low lysine diets. Dietary supplementation of
natural agents minimized production losses due to aflatoxin in feeds and
improved cellular immune response, dressing yields and liver fat content.
Recommendation of reduced Ca and P in birds' diet resulted in decreased feed
cost without affecting the growth or bone mineralisation. Seasame and sunflower
protein-meal resulted in lean broiler meat.
A laboratory procedure was evolved to accurately predict fertility of bulls
in making selection procedure more effective. Improvement in cryopreservation

method of semen could reduce rejection rate of ejaculates by 20 per cent. Milk
progesterone profile successfully demonstrated the reproduction status in
buffalo and it was utilised for timely remedy of reproductive disorder in animal.
Estrus synchronisation in Malpura ewes resulted in 75 per cent solutions. The
scientific management practices resulted in reduced calf mortality in loose
housing system. Artificial insemination (AI) and pregnancy diagnosis could be
perfected in equines. Yaks were successfully induced into heat. Enzyme immuno
assay was evolved for determination of growth hormone in mithun. Antibiotics
reduced the bacterial count in foam of quails. Birds immunised against vaso
active intestinal peptide showed higher egg production.
Whey-based jaljeera drink was standardised and its dried form was also
developed. Inulin at the rate of three per cent resulted in better growth and
add production in symbiotic yogurt preparation. Immuno--modulatory property
of dahi stimulates immune system and protects against enteric infection. Twinscrew plasticizer was developed for production of ghee-based butter. A model
was evolved for poremembrane formation by dass IIa bacteriocins from grampositive lactic acid bacteria. Low fat/sugar-free frozen dessert could be
developed for diabetic patients. Energy auditing was done for identifying
potential for improvement in energy effidency in model diary plant. Assays
were standardised for detection of antibiotic residues in milk. A process was
standardised for soft cheese preparation from camel milk. Customer response
to chevon pickle indicated that it has good market potential.

In Fish Production and Processing, marine fish landings improved by 13.5 per


India 2005

cent over previous year. Under inland sector, a multimatrix index of fish
assemblages was developed for fish species in river Hooghly. Hilsa continued
to be a major component, contributing 10.4 per cent of total yield from Hoogly
t'stuary. The GIS was developed on water bodies for eight districts of Bihar
and a digital map was prepared for six districts of Rajasthan.
In culture fisheries, important research achievements during the year were
seed production in Macrobrachium rosenbergi/ using underground saline water
with necessary ionic amendments at Rohtak, Haryana, breeding of Labeo
fimiJriatLis using a portable hatchery at Bangalnre and in-vitro cell culture of
freshwater pearl mussel. Research efforts in the field of cold water fisheries led
to development of natural lake as conservation site for the threatened mahseer
species Tor r1Lltitora, evolvement of eye ova of rainbow trout under warmer
conditions for the first time, and advancement in maturing period of grass and
silver carps with harmone treatment and raiSing water temperature at high
altitude. The work conducted under brackish water aquaculture led to successful
testing of shrimp feed in a farmer's pond, development of a latex aggulation
kit for the dt'tl'ction of white spot virus in shrimps and preparation of immune
index to access the health status of tiger shrimp.
In maricuiture, natural spawning of groupers Epinephe/us tauvitla and E.
polypllf'kadion could be observed under captive conditions. In five species of
damsel fishes, viz., filamentous tail black damsel, yellow tail damsel, blue
damsel, peacock damsel and Indian dascyllus, broodstocks were successfully
developed. Identification of molecular markers and natural genetic variation
in important fish species, karyological characterisation of fish species endemic
to Western Ghats, development of sperm cryopreservation protocols for Ompok
ma/anricus, and diagnostic capability of PCR in detecting exotic pathogens for
fish quarantine were some salient accomplishments in fish genetic resources.

In Agricultural Engineering and Technology, a number of implements such

as lug-wheel puddler, seven-row till-plant machine, pneumatic planter for
vegetables, two-row vegetable transplanter, zero-till seed-cum-fertilizer drill
for wheat, MPKV muli-crop planter, semi-automatic potato planter and flailtype forage harvester-cum-chopper were developed as tractor-operated
machines. Zero-till drill machine, orchard sprayer, ~UAT ground nut digger
and chipper shredder for cotton-stalks and other agricultural waste were the
implements fabricated under power-tiller-operated machinery. In case of selfpropelled machinery, two-row cultivator for biasi operation, riding type (10row) rice seeder and power weeders were developed. Likewise, CIAE planter
for groundnut, maize, pigeonpea, sorghum and other oilseed and pulse crops
under animal-drawn machinery, and indigenous seed counter, high-capacity
pigeonpea thresher, maize dehusker-cum-sheller and ANGRAU sugarcane leaf
stripper under stationery machinery were developed.
A strength measurement set-up for agricultural workers and antivibration devices for comfort of power-tiller and tractor operators were
evolved. A low-cost and energy-saving fruit and vegetable preservator has



been fabricated that increases self-life by 7-12 days and reduces handling
damages. In post-harvest engineering technology, prototype of cleaner to
arrest dust emission in dal mills, process for making fermented banana
beverage, double stage filtration system for sugarcane juice and electronic
thermometer for striking point in jaggery making were developed. The
technology of making ginger-and-vanilla-flavoured chips of coconut was
transferred to coconut entrepreneurs.
The work carried out under cotton technology led to the development
of light-weight cotton-gin which can be operated by remote as well. For the
first time, coir-cotton composite yam was developed through friction spinning
technology for industrial uses. In lac technology, successful propagation of
Flemingia semialata - a recently identified potential bushy host, identification
of rare variants of Bufea monosperma and development of water-thinnable
coating compositions for cementitious surfaces were the important findings.
Salient achievements in jute technology include successful blending of coir
with jute and of sisal with jute, besides the development of bagasse-based
gasifier, improved cook stove for low pollution and roof integrated unglazed
solar-air heater and solar refrigerator. Pantnagar adjustable collar harness and
Allahabad harness were modified to provide comfort to the animals during
work. Technologies of soy-processing, manufacturing package for serrated
sickle, etc., have been transferred to users. For commercialisation, 31 technologies
have been assigned by the ICAR to the National Research Development


Under Agricultural Human Resource Developmellt, Model Course Curricula

and Syllabi of eight UG and 44 PG programmes were developed and provided
to all agricultural universities along with academic regulations, and majority
of SAUs and Deemed Universities (DUs) have implemented these courses.
During the year, 127 students from 22 countries were admitted in various
degree programmes in ICAR-DUs/SAUs. In Centres of Advanced Studies and
Summer / Winter Schools / Short Courses, 4,250 scientists I faculty members
were trained in diverse subjects of agricultural and allied fields. For the award
of National Talent Scholarships (NTS), 218 candidates were recommended on
the basis of their merit. Junior Research Fellowships were awarded to 438
candidates and Senior Research Fellowships to 202 candidates.
The rural women and rural girls were trained in scientific child-care and
also to undertake activities such as candle preparation, mushroom cultivation,
etc. As a part of its HRD activities, the NAARM organised 36 programmes
through which 828 scientists were trained with respect to agricultural research
and education management.


In Social Sciences and Policies, a study has shown that the demand for
livestock products has increased with improved rural income, indicating a
need for faster growth in production of livestock products. Coping mechanism


India 2005

was evolved to reduce the impact of climate-induced natural disasters.

Integrated technology package was prepared for food security in tribal,
backward and hilly areas and initial impacts were assessed.

Technology Assessment, Rf:finement and Transfer is accomplished through

Krishi Vigyan Kendras (KVKs), Institution-Village Linkage Programme (IVLP)
and Agricultural Technology Information Centres (ATICs). There are 376
KVKs, 70 IVLP Centres, and 44 ATICs. The ATiCs provided technological
products, diagnostic services and technology information to farmers and endusers. During the year, 19,880 training programmes were organised benefiting
4,70,000 farmers and farm women, 1,10,000 rural youth and 60,911 participants.
The production potential of newly released technologies in oilseeds,
pulses and other crops were demonstrated through front-line demonstrations.
The KVKs identified more than 330 technologies for on-farm testing to assess
their impact on location-specific basis in different farming systems. Also
quality seed / planting material of cereals, pulses, oilseeds, vegetables, fruits
and spices, and livestock strains were produced by KVKs and provided to
The TICs organised 216 training courses, benefitting more than 4,100
participants. From the inception of Mission Mode Project, more than 4,000
ITKs were documented and three publications were brought out in the form
of hwentory (~f ITK in Agriculture. Validation and promotion of IPM
technologies were carried out in selected crops in different agro-ecological
Eight projects were initiated nearly on all aspects of role of Women in
Agriculture. The Krishi Vigyan Kendras trained nearly 2,00,000 farm women,
girls and women extension workers. Innovative marketing outlets were
developed for self-help groups. Cafeteria for women in agriculture was
d{veloped and offered to states to guide the development of new programmes
for women in agriculture. Five components of the All-India Co-ordinated
Research Project on Home Science moved towards empowerment of rural
women and their main achievements are : mobilisation of self-help groups
and creation of learning environment, strengthening empowerment process,
and assessment of empowerment gains for women.

In agricultural research planned especially for Tn'baJ and HiJ1 Regions, nine
varieties of crops were released and one variety each of wheat, finger millet
and amamath identified at the Vivekananda Parvatiya Krishi Anusandhan
Shala, Almora, for release in North-westem/Uttaranchal hills. Identification
of eight rice genotypes for multiple-disease tolerance, isolation of a new strain
of bacterium (Yersinia sp.) from infected white-grub larvae and development
of Vivek thresher-rum-pearler for mandUil and madira had been the other
significant findings.



The work conducted at the ICAR Research Complex for NEH Region,
Umiam, led to development of ten guava hybrids for cultivation in mid-hills
of North-eastem hills region. Rich contents of vitamins and minerals were
found in young shoots of edible bamboo. A methodology was developed for
boar semen preservation. Dies and fixtures were developed for fabrications
of wheel hand hoe, octagonal maize sheller and other tools.
At the Central Agricultural Research Institute, Port Blair, a protocol was
developed in rice varieties compatible for other indica varieties for developing
transgenic plants with economically important genes. Five varieties of rice
could be identified for large scale cultivation under humid tropics of Bay
Islands. Cultivation of capsicum, Beans and tomato was found economically
viable under protected conditions. Other achievements were the successful
control of mastitis, enteritis and hump sore in cattles, development of synthetic
layer suitable for backyard farming in Bay Islands, standardisation of dairy
calves management for hot and humid climate, successful breeding of clawn
fish (Amphiprion permla) in captivity and first time breeding of A. sandarocinos
on formulated feed.
In organisation and management of the National Agricultural Technology
Project, major thrust has been put now by the Council for commercialisation
of technologies. The National Centre for Agricultural Economics and Policy
Planning (NCAP) in consultation with PIU has selected 14 technologies of
national Significance for impact assessment. A software Nitriguide has been
developed for assessing the food intake in the Indian context. The National
Academy of Agricultural Research and Management (NAARM) has launched
a web site for getting jnformation on Indian agriculture.
Research on production systems resulted in 40-50 per cent additional
yield of oilseed crops owing to water-harvesting and drought-mitigation
technologies and 75-90 per cent increase in income of tribal farmers by crop
diversification. Further, new arboreum cotton varieties were identified for
dryland areas under rainted agro-ecosystem. The research conducted under
irrigated agro-ecosystem led to the release of muli-cut sorghum hybrid and
variety with enhanced nutritional quality, increase in income through zerotillage technology in wheat, development of direct sensitive micro-filter plate
enzyme-immuno-assay method for the first time for estimation of oxytocin,
LH, GH, FSH and PGFM and 3-4 times increase in productivity and
production of fish reservoir with proper stocking of bigger-size fingerlings.
In case of coastal agro-ecosystem, the major finding were popularisation of
backyard poultry for landless and marginal fanners, development of technology
for tissue-cultured pearls that can manipulate colour, hue and luster, process
for manufacturing of shell-bead nucleus using indigenous materials and
machinery and sera-diagnostic kit for early diagnosis of basal stem rot
pathogen of coconut. Control of khejri drying and development of skin
fibroblast cell technology for livestock gennplasm conservation under arid
agro-ecosystem and development of cost-effective technology for treatment of


India 2005

choes (rainy-season torrents) under hill and mountain ecosystem were the other
In mission mode research, five special explorations were made in different
inaccessible areas and areas not surveyed earlier. Standard descriptors were
prepared for fruit and medicinal and aromatic plants. Quality St.'eds of crops
and planting material of fruit and vegetable crops, improved sheep, poultry,
pigs, quality seeds for freshwater aquaculture were supplied to farmers in tribal,
backward and hilly areas in 15 states. Thirty seven hybrids of crops having
improved quality, yield and disease resistance were released. Commercialisation
of tt>chnology for pouch processing for fish curry preparation, prototype
fabrication of 44 agricultural implements, development of eqUipment and
technology for direct sprouted rice seeding that could save 70-75 per cent in
labour, 85-90 per cent in operational energy and 80-85 per cent in operation
cost and empowerment of women in tribal, backward and hilly areas with
implements to reduce drudgeries in farm operations, were the other
Under Team of Excellence (ToE), 30 genes of eight groups of viruses and
citrus viroid were cloned, sequenced and deposited in genebank. Transgenic
to tomato leaf curl virus incorporating Rf'P gene of virus was generated.
Immunity was developed in buffaloes using antibodies against bursal diseases
and infectious bronchitis. Other achievements under ToE include, development
of royal jelly extractor, mapping of pearl mussel resources in different agroecological regions of the country, preparation of a holistic quality management
programme for production and processing of wholesome meat and
establishment of three Referral Laboratories for quality assurance of plant,
animal and fishery products.
In competitive grants programme, novel abiotic stress-responsive genes
were identified and characterised in rice. Rare and high-valued medicinal
plant species in north-eastem India were propagated on large scale using
tissue-culture technology. Molecular markers for natural disease resistance in
Nicobari fowl were identified. Technologies were developed for aquaculture,
breeding and hatchery production of marine ornamental fishes. The other
significant findings were standardisation of techniques for off-season
chrysanthemum flowering in plastic greenhouse-cum-rain shelter, preparation
of computer models for optimal allocation of water and water-table management
in the existing irrigation projects, and standardisation of process for product
development, value-addition and waste utilisation in banana and plantains.

The DARE and ICAR have been operating Partnership and Linkages in
agricultural research an education at the national and international level
through the Memoranda of Understanding (MoUs)/Work Plans/Projects/
Training Courses/Exchange Visits, etc. One MoU and three Work Plans were
signed between the ICAR and France and Sri Lanka, Cuba and Iran for
scientific and technical co-operation in field of agriculture and education.
Under International linkages nine projects have been approved / initiated.




The Directorate of Information and Publications of Agriculture (DIPA) brought

out 50 publications in English and 10 in Hindi besides regular research
monthly journals / magazines. Special issues / accent numbers of periodicals
were also brought out on the occasions/themes of World Food Day, ICAR
Foundation Day, etc. Recently, the DIPA has entered into e-publishing and
developed five CDs - DARE / ICAR Annual Report 2002-03, All-India Coordinated Research Project Database, ICAR Telephone Directory, Terminated
ICAR Ad-hoc Research Projects and ICAR Institutes' Research Project
Information. The DIPA earned R., 4.78 million through sale of its publications,
advertisements, etc., and participated in various exhibitions and displayed its
Publicity and Public Relations Unit issued materials of current importance
to various newspapers, agricultural and current affairs magazines and
electronic media to cover the achievements of the Council in agricultural
research, extension and education at national and regional levels. The video
films prepared on the activities and achievements of the Council are being
distributed to leAR institutees, KVKs, Extension Directorates of SAUs and
others for wider dissemination of information for technology led growth in
agriculture and allied sectors.

Art and Culture

THE Department of Culture in the Ministry of Information & Broadcasting

and Culture plays a vital role in the preservation and promotion of art and
culture. Its aim is to develop ways and means by which basic cultural and
aesthetic values and perceptions remain active and dynamic among the
people. It also undertakes programmes for the promotion of various
manifestations of contemporary art. The Department is a nodal agency for
commemorating significant events and celebrating centenaries of great artists.


To promote and propagate understanding of Indian art, both within and

outside the country, the Government of India established Lalit Kala Akademi
(National Akademi of Arts) at New Delhi in 1954. The Akademi has regional
centres called Rashtriya Lalit Kala Kendras at Lucknow, Kolkata, Chennai,
Garhi in New Delhi and Bhubaneswar with workshop facilities in painting,
sculpture, print-making and ceramics.
Since its inception, the Akademi has been organising national exhibitions
of contemporary Indian art with 15 national awards, each of Rs 50,000. The
46th National Exhibition of Art was held in Cochin in February 2004. Every
three years, the Akademi also organises Triennial India, an International
exhibition of contemporary art in New Delhi. The Xlth Triennial India is being
organised in January-February 2005.
The Akademi honours eminent artists and art historians every year by
electing them as Fellows of the Akademi. During 2004, Shri Bikash Bhattacharjee
was felicitated as fellow of the Akademi. To propagate Indian art outside, the
Akademi regularly participates in International Biennials and Triennials
abroad and also organises exhibitions of works of art from other countries.
To foster contracts with artists from outside, it sponsors exchange of artists
with other countries under the various Cultural Exchange Programmes and
Agreements of the Government.
The Lalit Kala Akademi accords recognition to art institutions / associations
and extends financial assistance to these bodies as well as State Akademies.
It also gives scholarships to deserving young artists of its regional centres.
Under its publication programme, the Akademi brings out monographs on
the works of Indian contemporary artists in Hindi and English and books on
contemporary, traditional, folk and tribal arts authored by eminent writers and
art critics. The Akademi also brings out bi-annual art journals, Lalit
I Kala Cotltemporary (English), LAlit Kala Atlcient (English) and Samkaleen
Kala (Hindi). Apart from these, it brings out large size multi-colour
reproductions of contemporary paintings and graphics from time to time. The

Art and Culture


Akademi has started a regular progldmme on research and documentation.

Scholars are given financial assistance to undertake projects in contemporary,
folk, field projects on various aspects of Indian society and culture.


Two main schools of classical music-Hindustani and Carnatic continue to

survive through oral tradition being passed on by teachers to disciples. This
has led to the existence of family traditions called gharmtas and sampradayas.

Dance in India has an unbroken tradition of over 2,000 years. Its themes are
derived from mythology, legends and classical literature, two main divisions
being classical and folk. Classical dance forms are based on ancient dance
discipline and have rigid rules of presentation. Important among them are
Bharata Nat yam, Katlzakali, Kathak, Manipuri, Kucltipudi and Odissi. Bharata
Natyam though it derives its roots from Tamil Nadu, has developed into an
all India form. Kathakali is a dance form of Kerala. Katlwk is a classical dance
form revitalised as a result of Mughal influence on Indian culture. Manipur
has contributed to a delicate, lyrical style of dance called Mallipuri, while
Kuchipudi is a dance form owing its origin to Andhra Pradesh. Odissi from
Orissa, once practised as a temple dance, is today widely exhibited by artistes
across the country. Folk and tribal dances are of numerous patterns.
Both classical and folk dances owe their present popularity to institutions
like Sangcet Natak Akademi and other training institutes and cultural
organisations. The Akademi gives financial assistance to cultural institutions
and awards fellowships to scholars, performers and teachers to promote
advanced study and training in different forms of dance and music, especially
those which are rare.

Theatre in India is as old as her music and dance. Classical theatre survives
only in some places. Folk theatre can be seen in its regional variants practically
in every region. There are also professional theatres, mainly city-Oriented.
Besides, India has a rich tradition of puppet theatre, prevalent forms being
puppets, rod puppets, glove puppets and leather puppets (shadow theatre).
There are several semi-professional and amateur theatre groups involved in
staging plays in Indian languages and in English.

The Sangeet Natak Akademi-India's national academy for music, dance and
drama-is the first National Academy of arts set-up by the Republic of India.
The first President of India, Dr Rajendra Prasad, inaugurated it on 28 January
1953. The Akademi's charter of functions was expanded along the original
lines in 1961, when the Sangeet Natak Akademi was reconstituted by the


India 2005

Government as a society and registered under the Societies Registration Act,

1860 (as amended in 1(57). These functions are set down in the Akadcmi's
Memorandum of Association, adopted at its registration as a society on 11
September 1961.
Since its inception thp Akademi has been functioning as the apex body
of the performing arts in the country, preserving and promoting the vast
intangiblt.> heritage of India's diverse culture expressed in the forms of music,
dance and drama. In furtherance of its objectives the Akademi coordinates
and collaborates with the govermnents and art academies of differer,t States
and Territories of the Union of India as also with major cultural institutions
in the country. The Akadcmi establishes and looks after institutions and
projects of natural importance in the fi(;'ld of performing arts. The first of their
two national institutions of dance-Jawaharlal Nehru Manipur Dance Academy
in Imphal and Kathak Kendra (National Institute of Kathak Dance) in New
Delhi - were set up in ]964 respectively. National Projects of Support to
Kutiyattam - the age-old Sanskrit theatre of Kerala - Chhau dances of eastern
India and Sattriya traditions of Assam have been launched subsequently. After
ten years of intensive work under the Kutiyattam project, the UNESCO
declared Kutiyattam as a Masterpiece of Oral and Intangible Heritage of
Humanity in May 200]. It organises performances of music, dance, and
Thl' Akademi Awards are the highest national recognition conferred on
practicing artistes. The Akademi also confers Fellowships and Scholars, their
number being restricted to 30 living recipients. The Fellowship and Awards
carries a prize money of Rs 5{),000, a shawl and tamrapatra.
Thl-' Akademi's Audio-visual archive comprising audio/video tapes,
photographs and films is the largest in thc country and is extensively drawn
upon for research on the performing arts. The Akademi maintains a reference
library consisting of books in English, Hindi and some regional languages.
The Akademi has a gallery of musical instruments in Rabindra Bhavan, New
Delhi, where more than 200 musical instruments an' displayed. It also has
a documentation unit, which has collected and recorded works of maestros
in the field of music, dance and theatre on audio and video to help researchers
in the field.
The Sangeet Natak Akademi is presently an Autonomous Body fully
funded by the Government for implementation of it" schemes and programmes.
The National School of Drama (NSD) - one of the foremost theatre institutions
in the world and the only one of its kind in India was set up by Sangeet
Natak Akademi in 1959. Later in 1975, it became an autonomous organisation,
totally financed by Department of Culture. The objective of NSD is to train
students in all aspects of theatre, including theatre history, production, scene
design, costume design, lighting, make-up, etc. "!he training course at NSD

Art and Culture


is of three years' duration. Each year, 20 students are admitted to the course.
The eligible applicants for admission to the course are screened through two
stages. The Diploma of NSD is recognised by the Association of Indian
Universities as equivalent to M.A. Degree for appointment as teachers in
colleges/universities and for purposes of registration of Ph.D.
The School has a performing wing, a Repertory CompmlY which was
set up in 1964 with the dual purpose of establishing professional theatre on
one hand and continuing with the regular experimental work on the other.
The NSD has made a Significant contribution in promoting children's theatre.
Tht' Theatre-ill-Education Company (renamed as Sanskar Rang Tali) was
founded in 1989 and has been actively involved in production of plays for
children, organising summer theatre workshops in the schools of Delhi and
also promoting children's theatre through Saturday Club. Since ]998, the
School has organised National Theatre Festival for Children christened 'Jashne
Bachpan' every year. The first ever National Theatre Festival christened Bharat
R.ang Mahotsav was held from 18 March-14 April 1999 to commemorate the
50th year of India's Independence. Encouraged by the success of the first
Bharat Rnllg Mahotsllv, it has been made an annual feature.
To reach a vast majority of theatre artistes in various states with diverse
languages and cultural backgrounds, who cannot have access to the regular
training course provided by the School, a sort-term teaching and training
programme titled 'Extension Programme' was started in 1978. Under this
Programme, the School organises workshops in collaboration with the local
theatre groups / artistes and these programmes are invariably held in the local
languages. The workshops could be broadly divided under three categories,
Production Oriented Workshops, Production Oriented Children Workshops
and Teaching and Training Programmes in lheatre, etc. The School has also
set up a Regional Research Centre at Bangalore to cater the theatrical needs
of the four Southern States and Pondicherry.
Another important activity of the School is the publication of textbooks
on theatre, arrange the translation of important books on theatre from English
into Hindi.

Sahitya Akademi is the Indian National Academy of Letters meant to promote

the cause of Indian literature through publications, translations, seminars,
workshops, cultural exchange programmes and literary meets organised all
over the country. lhe Akademi was founded in March 1954 as ari autonomous
body fully funded by the Department of Culture. It was registered as a
Society in 1956 under the Societies Registration Act, 1860. lhe Akademi has
recognised 24 languages. It has an AdviSOry Board for each of the languages
that suggests various programmes and publications in the concerned languages.
There are four Regional Boards to promote regional interaction among the
languages of the north, west, east and south. Besides its Head Office in New
Delhi, it has four offices in Kolkata, Mumbai, Bangalore and Chennai. The


India 2005

Akademi has two translation centres at Bangalore and Kolkata, besides a

project office at Guwahati for promotion of oral and tribal literature and an
Archives of Indian literature. It maintains a unique multilingual library at
New Delhi and at its regional offices at Bangalore and Kolkata, having about
1.5 lakh books in over 25 languages.
The highest honour conferred by the Akademi on a writer is by electing
him its Fellow. This honour is reserved for the 'Immortals of Literature' and
limited to 21 at any given time. So far 66 writers have been elected for this
honour. Sahitya Akademi has till data recognised 850 authors, 283 translators
with its translation prizes, fellowships for distinguished contribution to
literature, and 31 Bhasha Sammlll1 awards, meant to promote peripheral
languages, Honorary Fellowships for foreign scholars who have done Significant
work in Indian literature and senior and junior fellowships to scholars
undertaking projects in the field of literary art. The Akademi publishes books
in 24 languages including translations of Award-winning works, monographs
on the great pioneers of Indian literatu.rt's, histories of literature, Indian and
forei/-,'T1 classics in translation, anthologies of fiction, poetry and prose, biographies,
Registers of Translators, Who's Who of Indian Writers, National Bibliography
of Indian Literature and Encyclopedia of Indian Literature. So far, the Akademi
has published over 4,000 books in these different categories. It has three journals,
Illdiall Liff'ratllre (hi-monthly in English), Samakaleena Bharatiya Sahitya (bimonthly in Hindi) and Samskrita Pratibha (half-yearly in Sanskrit). About 238
books were published between April 2003 and March 2004.
Sahitya Akademi holds a number of regional, national and international
seminars every year on various topics in literature, literary history and
aesthetics. The Akademi also regularly holds Translation Workshops.
The Akademi holds annually a weeklong 'Festival of Letters' every year,
usually in February. It has certain special projects like the Ancient Indian
Literature, Medieval Indian Literature and Modern Indiall Literature together
constituting ten volumes of the best of Indian writing over five millennia. An
th(>se volumes have since been published.
In 2004-0S, the Akademi is celebrating its Golden Jubilee with special
programmes like the international Seminar on the 'Mahabharata', a SAARC
Writers Meet and 'New Voices: a series of young writers' meet', and bringing
out special publications like a history of 50 years of the Sahitya Akademi,
Anthologies of poetry and fiction, etc. The Akademi introduced a new series
of programme entitled Sur Sahitya as part of the Golden Jubilee celebrations.


To provide financial support to outstanding artistes for creative work in
various fields of performing, plastic and literary arts, the following schemes
are being implemented by the government.

Art and Culture



The sche~e has been introduced in 1998-99 with the objective to encourage
application of modem ideas, principles, methodolOgies and technology to art
and culture related issues. The fields covered are: (i) ideology; (ii) cultural
economics; (iii) Museo)ogy, etc. The senior fellowships (age group of 41 years
and above) amount is Rs 12,000 per month. The junior fellowships (age group
of 25-40 years) amount is Rs MOO per month from 2002-03. The fellowships
are awarded for a period of two years.
The scheme of Emeritus Fellowship and Kumar Gandharva Fellowship
has been discontinued from 2002-03. The scheme of Senior/Junior Fellowships
has been transferred to the National Akademies, i.l'., Sangeet Natak Akademi,
Sahitya Akademi, Lalit Kala Akademi and National School of Drama from
Under the schenle, financial assistance is given to outstanding artistes, in the
age-group of 18-25 years for advanced training within India, in the fields of
music, dance, painting, drama and sculpture, etc. The duration of scholarship
is two years and the value is Rs 2,000 per month.
Financial assistance is given to institutions of all-India character, engaged in
the development of cultural activities, to meet part of their expenditure on
maintenance and development activities. The institutions assisted are the
Institute of Historical Studies, Kolkata, and the Institute of Traditional Culture,
The Archaeological Survey of India (AS}) established in 186] functions as an
attached office of the Department of Culture. Its major activities are :
maintenance, conservation and preservation of Centrally-protected monuments/
sites and remains; conducting archaeological explorations and excavations;
chemical preservation of monuments and antiquarian remains; architectural
survey of monuments; development of epigraphical research, numismatic
studies and publications; setting up and re-organisation of site museums in
lndia; development of environment at Centrally-protected monuments; and
training in archaeology. At present there are 3,644 Centrally-protected
monuments of national importance which include 17 monuments on the list
of world heritage. The number of individual structures being maintained by
ASI is over 5,000.
Museums are repositories of India's cultural heritage and are meant for
acquisition., conservation and preservation of historical, technical and other
materials against decay and for their transmission to posterity as records of
history. They also serve as important audio-visual means of education.


India 2005

The National Museum was established on 15 August 1949 in the Durbar

Hall of the Rashtrapati Bhawan. It was formally inaugurated on 18pecember
1960 at its present premises. Now there are more than two lakh works of art
of diverse nature, both of Indian and foreign origin, covering a time-span of
five thousand years of cultural legacy of Indian sub-continent.

There are now 26 permanent galleries. New galleries have been added
such as Duddhist Art, Decorative Arts, Evolution of Indian scripts and coins,
Tanjore and Mysore School of Paintings and Jewellry Gallery. The National
Museum Library today possesses 53,668 books on ancient and medieval
history, archaeology, fine arts, anthropology, etc.
Nehru Memorial Must:'um and Library, New Delhi, is the centre for a
personalia Museum on the life and times of Jawaharlal Nehru. The Library
has a pre-emim'nt position among the social science libraries in the country.
The organisation places considerable emphaSiS on its research programmes
and on the extension of research facilities to scholars.
The National Council of Science Museums (NCSM), Kolkata, an
autonomous organisation under the Department of Culture, is primarily
engaged in popularising srit'nce and technology amongst the students in
particular, and masses in gl'neral, through a wide range of interactive
programmes and activities. The NCSM administers 28 science centres all over
India. Four major science mUSt'ums and centres of NCSM operate from
Kolkata, Bangalore, Mumbai, and Delhi under which several satellite centres
The Council provides catalytic support to other institutions in India and
abroad. Exhibiting its immensl' potential of developing exhibits of international
standards the Council, on a turnkey basis set up the Rajiv Gandhi Science
Centre at Mauritius and a similar project is being taken up at Nepal. The
Council also developed and delivered exhibits for the Australian, Israeli and
Bangladesh Science Centres. For the first time in our country a panorama
centre depicting the great epic of Mahablzarata has been set up at Kurukshetra
and a large planetarium in the Memory of Late Kalpana Chawla is in the
making. The National Agricultural Science Museum for ICAR at Delhi and
a Science Centre at the Andaman and Nicobar Islands has been designed and
developed by the Council.

The Allahabad Museum founded in 1931 was declared as an institution

of national importance by the Central Government in ]985. The Museum is
famous for its collection of Bharhut, Bhumara and Jamsot sculptures and for
the terracotta from Kausambi, Bhita, Jhusi, PatIiputra, Sarnath, Rajghat and
Ahichhatra. The Museum illso has paraphernalia and family heirlooms of the
Nehrus, including manuscripts of An Autobiography by Jawaharlal Nehru
and a large volume of correspondence. Among the Museum collections are
paintings of the Bengal School of Painters and Vijayavargiya. Among the
foreign painters represented in the Museum, mention may be made of
Nicholas Roerich, his son Svetoslav Roerich and Angarika Govinda.

Art and Culture


The National Rl'search Laboratory for Conservation of Cultural Property

(NRLC), Lucknow is a scientific institution engaged in the conservation of
cultural heritage. Its activities include conducting research in materials and
methods of conservation, study of materials and technologies of art objects,
training in conservation and, rendering technical advice and assistance
to museums and allied institutions. The library of the laboratory has a good
collection of literature on different aspects of conservation and it provides
documentation services like abstracting, annotated bibliographies on selected
topics, etc., to other institutions. Publication of technical notes and manuals
for conservators is another important activity of the laboratory. The laboratory
conducts each year an orientation workshop for Directors and Curators on
preventive conservation and a six-month training course for conservators. A
regional centre of NRLC for the southern region is established at Mysore. The
NRLC is an Associate Member of the International Centre for the study of
the Preservation and Restoration of Cultural Property (ICCROM), Rome and
is represented at its council.
The National Gallery of Modem Art (NGMA) was founded in 1954. The
main aim of the NGMA is the promotion and development of contemporary
Indian Art. The collection of NGMA comprises 16,049 works of art, representing
about 1,742 contemporary Indian artists. The collection has been built up
mainly by purchase and also by gift. The Gallery's important collections
include, paintings, sculpture, graphic arts and photographs. NGMA organises
exhibitions from its collection and under cultural exchange programme
periodically. Several colour reproductions have been brought out. NGMA's
objective is to help people look at the works of modem art with understanding
and sensitivity. In keeping this in view, NGMA, Mumbai was inaugurated
in 1996, while a new one is being set up at Bangalore.
The Salar Jung Museum, Hyderabad came into being on 16 December
1951. It is a rich repository of Global Art collections. Named after the erstwhile
noble family of the Salar Jungs, the collectors of this treasure trove, the major
portion of the Museum's collection was acqUired by Mir Yousuf Ali Khan
popularly known as Salar Jung-III (13 June 1889-2 March 1949). The collection
consists of Indian Art, Middle Eastern Art, Far Eastern and European Art,
representing nearly 36 countries in 50 mediums. Apart from this, there is a
gallery devoted to the illustrious Salar Jung family, a Children's Section, a
rich reference library, a reading room and a rare manuscripts section with
Arabic, Urdu, and Persian manuscripts. The Museum has prepared an action
plan for the reorgnisation of 21 galleries under the Tenth Plan.

The National Archives of India (NAI), New Delhi known until independence
as Imperial Record Department was originally established in Kolkata on 11
March 1891. It is the official custodian of all non-current records of permanent
value to the Government of India and its predecessor bodies. It has a regional
office at Bhopal and three record centres at Bhubaneswar, Jaipur and


India 2005

Major activities of the Archives include : (i) Making public records

accessible to various Government agencies and research scholars; (li) preparation
of reference media; (iii) preservation and maintenance of records and
conducting of scientific investigations for the said purpose; (iv) evolving
records management programmes; (v) rendering technical assistance to
individuals and institutions in the field of conservation of records;
(vi) imparting training in the field of archives administration, records management,
reprography, repair and conservation of records, books and manuscripts at
professional and sub-professional levels; and (vii) creation and promotion of
archival consciousness in the country by organising thematic exhibitions.
The National Archives of India provides financial assistance to State /
UT archives, voluntary organisations and other custodial institutions, so that
the documentary heritage is preserved and archival science is promoted.

India initiated underwater archaeological research in 1981 by establishing

Marine Archaeology Centre in the National Institute of Oceanography, Goa.
The main objective of Marine Archaeology is to reconstruct the history of past
seafaring activities from material remains and study of submerged
archaeological sites.
Since 1983, underwater archaeological explorations have been carried out
almost every year in the waters of ancient Dwarka. Successive investigations
of Dwarka in about 4 to 12m water depth have revealed the presence of a
number of submerged stone building blocks. The explorations during 1992
to 1995 were carried out mainly to demarcate the limits of the submerged
Dwarka and also to document properly the submerged structures and objects
noticed. At Dwarka, approximately 9,80,000 sq m area was explored between
the water depth of 3 to 12m off Samudranarayana Temple.
Preliminary underwater explorations off Sornnath were carried out
during 1992-95. The findings were a three-holed triangular stone anchor and
a three-holed prismatic stone anchor measuring in length about a meter, and
a one-holed circular stone object similar to that found in Dwarka.
Marine archaeological explorations are being carried out since 1991 in
Poompuhar waters in collaboration with the Department of Archaeology,
Government of Tamil Nadu. The main objective of this survey was to delineate
the submerged extension of the ancient town of Kaveri-poompattinam, north
of the present river Kaveri and to explore the deep water where aU-shaped
structure was noticed during earlier explorations. Off-shore exploration was
carried out in shallow waters, north of river Kaveri and south of the present
Poompuhar village. A few dressed stone blocks were found in various water
Explorations carried out in deeper waters (23 m depth) revealed the
presence of an U-shaped stone structure which was located about five Ian
seaward of Kadaikkadu. The structure lies in a north-south direction. It is

Art and Culture


believed that this man-made structure perhaps, pertains to a Buddhist relic.

Geophysical explorations carried out with the sub-bottom profiler revealed
a submerged palaeochannel of the river Kaveri in the north of Poompuhar. The
width of the channel varies from 300 m to 500 m and it is buried 20 m below
the sea bottom. This channel extends up to deeper water structures, suggesting
that the ancient shoreline was about five km seaward of the present shoreline.
The wreck found in Poompuhar explorations seems to belong to the Dutch
rulers in India and might have sunk during a war against the French in 179293 as indicated by a few lead ingots from the wreck. Two of them bear the
symbol of a crown below which is the letter '0'. This symbol of the crown over
'0' is engraved on the coins issued by the Dutch in India.
The on-shore explorations of Lakshadweep revealed the presence of
significant potsherds of red ware, red-polished ware, dull red ware, red and
black ware and buff ware from Kavaratti, Androth and Amini. Two Buddha
heads (one 95 em and the other 55 em high) carved out of locally available
coral rock found earlier by inhabitants of Androth, were examined and
assigned to the 6th-7th century AD. The presence of red polished ware
suggests that the earliest habitation on these islands dates about 100-500 AD.

Libraries are the keepers of our history and culture. Development of library
systems is an important component of the scheme of non-formal and
continuing education. Constitutionally the subject 'libraries' is included in the
State List. The Centre has jurisdiction only over libraries established by it and
institutions of nationaJ importance as dedared by it. There are more than
60,000 libraries in the country.
National Library, Kolkata serves as a permanent ~s~~ of all
reading and information material produced in India as well as printed
material written by Indians/foreigners concerning India wherever published
and in whatever language. Under the Delivery of Books and Newspapers
(Public Library) Act, 1954, the National Library is entitled to receive one copy
of each publication published in the country. It is also a repository of the
United Nations publications. It renders multifaceted services and extends
different types of bibliographical assistance to numerous readers and scholars,
ministries, nationaJ and international organisations. The Library has established
exchange relations with 215 libraries I institutions in 90 countries and has a
stock of over 25 lakh books. During the centenary year 2000:.04 the Library
organised an international conference and several seminars. To overcome the
space shortage a new six-storied building called Bhasha Bhawan has come
up within its campus. Its website is

The Central Reference Ubrary, Kolbta is responsible for the compilation,

publication and sale of the Indian National Bibliography. This is a monthly
record of current Indian publications in 14 languages including English based


India 2005

on receipts in the National Library, Kolkata, under the provisions of the Delivery
of Books and Newspapers (Public Libraries) Act, 1954. The Library is also
compiling and publishing Index Indimla, an annual index of select articles
appearing in current Indian periodicals in major Indian languages.
Raja Rammohan Roy Library Foundation has made great strides in
promoting library services in the country since its inception in 1972. The main
objective of the Foundation is to promote and support the public library
movement in the country by providing adequate library services and by
popularising reading habits, particularly in the rural areas, with active
cooperation of state library authorities and voluntary organisations working
in the field of library services. Currently it operates two types of schemes
of assistance, i.e., matching and non-matching. Matching schemes are operated
from the joint fund created with state government's contribution along with
equal share from the Foundation whereas non-matching schemes are operated
fully from the Foundation's own resourCt!S. During the year 2003-04 the
Foundation has rendered assistance worth Rs 1,700 lakh (approx.) for 9,000
libraries all over the country under the two schemes combined. The Foundation
also gipes awards to best maintailled libraril'S in different zones oj the country
alld a Fellowship to honour olltstanding contributions made by an illdilliduai
jor promotion (~f" library movemellt ill the country. Besides, cash awards are
also given to best articles for its journal 'Granthana'. A special Project for
converting all the State Central Libraries of the north eastern region including
Sikkim into model libraries has also been initiated.
Rampur Raza Library is housed in Hami Manzil in the fort of Rampur
and is a treasure house of Indo-Islamic learning and art. It has a priceless
collection of about 75,000 printed books and 16,000 manuscripts, besides more
than 5,000 miniature paintings and 2,500 specimens of Islamic calligraphy and
3,500 books of Laharu collection.
The Delhi Public Library, Delhi established in 1951 with financial and
technical assistance from UNESCO, has since developed into a metropolitan
public library system consisting of a central library at S.P. Mukherjee Marg,
a zonal library at Sarojini Nagar, and three branches at Patel Nagar, Karol
Bagh and Shahdara; 23 sub-branch libraries; 23 libraries in re-settlement
colonies; six community libraries, seven reading-rooms which inculcate
reading habits among the weaker sections of society; a Braille library with
a network of mobile service points for the visually handicapped; three sports
libraries of the status of sub-branches located in different stadia in Delhi; one
library at Central Jail, Tihar for the prisoners; 18 deposit stations which are
run by various societies/ associations and a network of 67 mobile Art and
Culture service stations to serve the urban and rural areas in the National
Capital Territory of Delhi. It has recently opened reading rooms in some of
the Community Centres also besides one at Quila Rai Pithora. The Delhi Public

Art and Culture


Library is a recipient Library under the Delivery of Books and Newspapers

(Public Libraries) Act. Its books stock is more than 14 lakh.
Khuda Bakhsh Oriental Public Library, Patna was established in 1891
was declared as an institution of national importance in 1969. It has a rich
collection of over 20,000 Arabic, Persian, Urdu, Turkish, Pali and Sanskrit
manuscripts and over 2,000 Mughal and Rajput paintings besides two lakh
printed documents. Mol'(' than 1,650 audio and video cassettes have been
prepared. The Library has instituted a few fellowships at par with UGc. It
has been recognised by seven universities as a centre of research for awarding
the degrees of Ph. 0./0. Litt. Tht' Library has also instituted a prestigious
award of Rs one lakh and a citation.
Thanjavur Maharaja Serfoji's Saraswati Mahal Library (TMSSM) is
one of the few medieval libraries that exist in the world. It symbolises a
priceless repository of culture and time defying treasure house of knowledge,
built up by the successive dynasties of Nayaks and Marathas of Thanjavur.
The Library was made a public library in 1918 by the Madras Government
and was registered on 9 July 1986 as a society. Now the Library is administered
by both the Central Government and he Government of Tamil Nadu. The
Library has 46,695 manuscripts in Sanskrit, Marathi, Telugu, Tamil and other
languages in both palm leaf and paper form. Miniature paintings, colour
drawings, atlases, maps, charts and rare prints in its collection are very
attractive and reflect th( TanjoTe school of painting. Besides, it has 54,009
books in Indian languages covering various diSCiplines and a rare collection
of about 4,500 books in European languages collected by Raja Serfoji II. Th('
Library has published more than 425 books from the unpublished manuscripts.
Connemara Public Library, Chennai became the State Central Library
with effect from 1 April 1950 under the provisions of Tamil Nadu Public
Libraries Act, 1948 and from 11) September 1955, it became one of the four
recipient libraries under the provisions of Delivery of Books and Newspapers
(Public Libraries) Act, 1954. The expenditure for maintaining the Library is
met from the funds allocated in the budget of Tamil Nadu Government.
However, the Government of India meets half of recurring expenditure and
two-third of non-recurring expenditure in respect of maintaining the Delivery
of Books Act Section of this Library. The Library was accepted as UNESCO
Associated Project in 1955 and accordingly, it became a Depository of
publications of UN and its specialised agencies and so it serves as UNESCO
Information Centre also. Besides, at present it is also functioning as "Asian
Development Bank Depository Library" since 1992. The stock of volumes in
the library stands at 7.50 lakh.
The State Central library, Mumbai came into existence on 1 July 1994
by taking over of the Central Library by the state government from the Asiatic
Society of Bombay under the provisions of Maharashtra Public Libraries Act,
1%7. It is now under the control of the Directorate of Libraries, Mumbai and
is one of the four recipient libraries under the 1954 Act referred to above. This


India 2005

apex library in Maharashtra serves as a permanent repository of all reading

and information material. It has nearly all printed material by Indians and
foreigners on India in any language. Over eight lakh books, besides periodicals,
maps, and newspapers are housed in this library.
Depository Libraries Under the Delivery of Books and Newspapers
(Public Libraries) Act, 1954, four libraries are entitled to receive a copy of
new books and magazines published in the country. These are the National
Library, Kolkata, State Central Library, Mumbai, Connemara Public Library,
Chennai and the Delhi Public Library, Delhi. There are also specialised
libraries for researchers. Prominent among them are Nehru memorial Museum
and Library, New Delhi; Indian Council of World Affairs, New Delhi; Indian
Statistical Institute; Kolkata; Gokhale Institute, Pune; Theosophical Society,
Chennai; National Council of Applied Economic Research, New Delhi and
Indian Institute of Public Administration, New Delhi.
Central Secretariat Library originally known as Imperial Secretariat
Library, Kolkata was established in the year 1891. Since, 1969 the Library has
been housed at Shastri Bhawan, New Delhi. Its collection of 6.5 lakh
documents is the largest collection among the other Government of India
libraries and deals with various social science and humanities subjects. It has
a strong collection of government documents especially of the Central
Government and its related area of studies. Besides this its biographical
collection is very large and has extremely rich, rare book documents. It has
also large number of microfilm collections. The main objective is to provide
library facilities for reference and research to Central Government offices/
organisations and has revised rules to provide borrowing facilities to
academicians, researchers, faculty members, corporate communities from
different universities, research institutions, etc. The Library has two branches
namely, Tulsi Sadan Library, New Delhi that houses about 1.9 lakh volumes
of Hindi and 13 other constitutionally approved Indian regional language
books and the Text Book Library located at R.K. Puram, New Delhi catering
to the needs of students whose parents are central ~()ven lInent employees.
In the recent past CSL has undertaken the development of IT based products
by digitizing the Government of India Gazette and in addition has also
developed the OPAC system for its collection which will be made Web based
for wider accessibility.
Asiatic Society, Kolkata was founded in 1784 by Sir William Jones (1746-1794),
an eminent indologist, with the objective of inquiring into the history, science,
arts and literature of Asia. Directly or indirectly, it has contributed to the
growth and development of most of the major antiquarian, scientific and
literary institutions in India. Its historic importance was recognised and the
Government declared it as an 'institution of national importance' in 1984, its
bicentenary year. The Society maintains a museum which includes an Ashokan
rock edict and copper plates ranging from the third century BC, and important

Art and Culture


documents and coin collections for the study of Indian history and culture. It
contains approximately 47,000 manuscripts in various languages. With its
library of printed books, archives and the collection of manuscripts, it is one
of the leading centres of study of indology in the world. The Society has
expanded its activities considerably in the sphere of establishing intercultural
relationship with various countries of the world. Three main activities of the
society concerning the scientific pursuit of the knowledge are : (i) Library
services, (ii) Academic activities and (iii) Publications. The Library of the
Society has more than 2,50,000 volumes comprising, among others, a vast
treasure of rare books, journals and other printed materials on Asiatic Arts
and Sciences. The Asiatic Society is a member of DELNET for sharing of
resources available with other member Libraries of the Delnet. The facility
is also available for the readers.


After Independence, a number of institutions have been set up in the country
for preservation of Tibetan culture, philosophy, literature, etc. The Government
is also implementing a scheme of financial assistanct: to such organisations.
The Central Institute of Higher Tibetan Studies, Varanasi, an autonomous
organisation fully financed by the Centre, was established in 1967 with the
objective of preservation of Tibetan culture and tradition, rt'storation of ancient
Indian literature preserved in Tibetan languages and to provide higher
education in Buddhist studies to students from the border areas. The Institute
prepares students for various courses. It has been given the status of deemedto-be university.
The Central Institute of Buddhist Studies, Leh was established
in 1959
to train students in Buddhist philosophy, literature and arts. It is affiliated
to Sampurnanand Sanskrit Vishwa Vidyalaya, Varanasi.
The Namgyal Institute of Tibetology an autonomous organisation under
administrative control of Government of Sikkim, was establishEd for spreading
the knowledge of Chhos (Doctrine of the Buddha).
The Library of Tibetan Work and Archives, Dharamsala, acquires and
preserves Tibetan books and manuscripts. The main activities of the library
are to provide research facilities, to run regular courses on Buddhist philosophy
and Tibetan languages, hold classe!;> on Tibetan traditional woodcarving and
tankha paintings, etc.
Nava Nalanda Mahavihara, Nalanda was set up in 1956. 'Its objectives
are : To develop a residential centre of education of international importance
for the studies in Pali and Buddhism, Buddhist philosophy, logic and
epistemology; to admit graduates and oriental scholars of recognised
universities/ institutions to train them in post-graduate programmes of Buddhist
studies and research; to grant academic awards, fellowships, scholarships;
to translate and publish Buddhist works from Pali, Sanskrit and other
languages; to organise a library of the Buddhist literature, etc.


India 2005


Anthropological Survey of India established in December 1945, is a scientific
research organisation with its headquarters in Kolkata and seven regional
centres, a sub-regional centre and eight field stations located in different parts
of the country including a camp office in New Delhi. Since its inception as
a nodal organisation of scientific research in anthropology and allied disciplines,
it has the enviable record of conducting bio-cultural research covering the
entire rangl' of human evolution in the country. The Anthropological Survey
of India has already initiated the approved Tenth Plan Research Projects,
which include: Cultural Dimensions of Tourism, Study of Syncretism in India,
Dormitory System in India, Physical Growth of Adolescents and DNA study
on ancient skeletal rl'mains and on contemporary populations.


Indira Gandhi Rashtriya Manav Sangrahalaya (National Museum of Mankind)
Bhopal, is dedicated to the depiction of an integrated story of humankind
in global perspective with special focus on India. The Sangrahalaya as open
air museum is supported by an indoor display related to three broad fields:
(a) human evolution and variation; (b) culture and society in pre and protohistoric times; and (c) contemporary cultures. It has set-up open air
exhibitions on tribal habitat, coastal village, desert village and Himalayan
village through life-size exhibits in authentic environmental settings. The rock
shelters found on the museum premises, with historic and pre-historic rock
of art paintings, have been developed as another open air exhibition titled
'The Rock Art Heritage'. The Sangrahalaya is also developing an indoor
museum in Bhopal. The other programmes being carried out by this
organisation tne salvage of anthropological objects of national heritage,
reSl'arch projects and multi-media documentation of cultures.
The museum also undertakes audio, video, photo, cine and textual
documentation and research and field projects on various aspects of Indian
society and culture for better understanding, salvage and revitalisation of the
rich cultural heritage of the country.

The Centre for Cultural Resources and Training (CCRT) is one of the premier
institutions working in the field of linking education with culture. The Centre
was set up in May 1979 as an autonomous organisation by the Government
of India. Today it operates under the administrative control of Department
of Culture, Ministry of Information, Broadcasting and Culture, Government
of India. With headquarters in New Delhi, it has also Regional Centres at
Udaipur and Hyderabad.
The broad objectives of the CCRT have been to revitalise the education
system by creating an understanding and awareness among students about

Art and Culture


the plurality of the regional culture.. of India and integrating this knowledge
with Eo'ducation. The main thrust is on linking education with culture and
making students aware of the importance of culture in all dl'velopment
programme. One of the CCRT's main functions is to conduct a variety of
training programmes for in-service teachers drawn from all parts of the
country. The training provides an understanding and appreciation of the
philosophy, aesthetics and beauty inherent in Indian art and culture and
focuses on formulating methodologies for incorporating a culture component,
in curriculum teaching. This training also stresses the role of culture in science
and technology, housing, agriculture, sports, etc. An important component of
training is to create awareness among students and teachers of their role in
solving environmental pollution problems and conservation and preservation
of the natural and cultural heritage. To fulfill these objectives, the Centre
organises variety of training programmes for teachers, educators, administrators
and students throughout the country.
One of the most important functions of CCRT is to implement the
Cultural Talent Search Scholarship Scheme, which was taken over from the
Department of Culture in 1982. The scheme provides scholarships to outstanding
children in the age group of 10 to 14 years, studying either in recognised
schools or belonging to families practicing traditional performing or other arts
to develop their talent in various cultural fields particularly in rare art forms.
The scholarships continue till the age of 20 years or the first year of a
University degree. About 300 scholarships are offered every year.
The Centre has also instituted CCRT Teachers award which is given
every year to selected teachers in recognition of thl' outstanding work done
by them in the field of education and culture. The Award carriers with it a
citation, a plaque, an allgavastram and Rs 10,000.


The Ramakrishna Mission Institute of Culture, Kolkata a branch Centre of the

Ramakrishna Mission was conceived in 1936 as one of the permanent
memorials to Sri Ramakrishna (1836-1886) on the occasion of his first birth
centenary. It was formally established on 29 January 1938 as a branch centre
of the Ramakrishna Mission founded by Swami Vivekananda to propagate
the message of Vedanta as propounded by Sri Ramakrishna who5' basic
teachings stressed: (i) the equal validity of all religions; (ii) the potential
divinity of man; and (iii) service to man as a way of worshipping God-a
new religion for mankind.
Indira Gandhi National Centre for the Arts (IGNCA) is a premier national
institution engaged in the pursuit of knowledge on arts and culture and in
the exploration of relationships of arts and culture with various disciplines
of learning and diverse aspects of life. Established in 1985 in the memory of
the Late Prime Minister Smt Indira Gandhi, it has multifarious activities such
as research, publication, training, documentation. dissemination and networking


India 2005

and is poised to grow into a large repository of information pertaining to the

arts in India. The IGNCA seeks to place the arts within the natural and human
environment by providing a forum for creative critical dialogue between the
diverse arts, between the arts and sciences, between arts and the traditional
and current knowledge systems. The IGNCA promotes interaction and
understanding between diverse communities, regions, social strata, and
between India and other parts of the world.
IGNCA has been designated as a nodal agency for setting up a National
Data Bank on Arts, Humanities and Cultural Heritage. It has an outstanding
reference library, documented material including audio / video material,
manuscripts, slides, photographs and artifacts. A major initiative is a Cultural
Informatics lab (CIl), which employs an integrated methodology to develop
application') to access diverse media on all fields relating to arts through multimedia and digital technology. Broadly, the major activities of CIl can be
classified under thre(> categories of digitization, web-enabled digital library
and CDROM/DVDROM project.


One of the important activities undertaken by the Government has been the
commemoration of centenaries of distinguished Indians who have left an
indelible impression on the history and life of the nation. National committees
are set up for the centenaries which are considered to be of such importance.
Yearlong programmes are drawn up by the committees for implementation
during the centenary year. These programmes normally include organisation
of national seminars, installation of statues, release of commemorative stamps
and coins, publications and exhibitions and other functions. The Department
of Culture also provides financial assistance to registered voluntary
organisations for celebrating the centenaries of outstanding personalities
which are not taken up for celebration by the Government.
Gandhi Smriti and Darshan Samiti (GSDS) was set up by the Department of
Culture in 1984 primarily to maintain and look after the national memorial
where Gandhiji was assassinated, now called 'Gandhi Smriti' and a permanent
photo exhibition at Rajghat called 'Gandhi Darshan', which was created at
the time of Gandhiji's birth centenary in the year 1969. The institution has
brought out a number of books on Gandhi, communal harmony and national
integration. It also publishes a quarterly newsletter to create awareness about
the GSDS and also organises annual Gandhi Memorial Lectures by eminent
scholars both in India and abroad.
Gandhi Smriti at Tees January Marg, New Delhi is a national memorial
now. It houses many memories of the last 144 days of Mahatma Gandhi and
forms part of the rich national heritage. Gandhi Darshan offers a comprehensive
exhibition on Gandhi.

Art and Culture



Maulana Abul Kalam Azad Institute of Asian Studi(~s is the centre for research
and training of the life and works of Maulana Abul Kalam Azad and for the
study of the social, cultural, political and economic movement in Asia from
the middle of the 19th century. The Institute also maintains a library of books,
newspapers, still photographs and materials on the secular traditions of
modem India and events of the 19th century. It maintains a personal museum
at th(' former residence of Maulana Abul Kalam Azad, which highlights the
life and works of Maulana Abul Kalam Azad as a distinguished national
leader and thinker. The Institute has embarked upon its research programmes
in the North-East region of India from the year 2000.

On 2 October 1994, on the occasion of the 125th birth anniversary of Mahatma

Gandhi, the Government instituted an Annual Int('rnational Gandhi Peace
Prize to encourage and promote the significance of Gandhian values the world
over. The Prize carries a cash award of Rs one crore, a citation and a plaque.
The Prize is decided by a five-Member Jury headed by the Prime Minister
of India. The first ever Gandhi Peace Prize for 1995 was given to Dr Julius
K. Nyererc, former President of Tanzania. The Gandhi Peace Prize for the year
2003 was awarded to Mr Vaclav Havel, former President of Czech Republic.

The Festival of India was introduced with the objective of giving a focussed
glimpse of the vast heritage as well as contemporary dynamism of Indian
culture. The Festivals also help in promoting cultural links with foreign
countries through reciprocal festivals of those countries in India. As the
Festival creates greater awareness amongst the people of the receiving country
about India, it also helps in creating an appropriate climate of goodwill and
understanding which is the prerequisite for greater cooperation in different
spheres, viz., technology, commerce and tourism, etc.
Since 1982, Festivals of India have so far been held in the U.K., U.S.A.,
Japan, Sweden, Germany, China and Thailand. Reciprocal Festivals of erstwhile
U.s.S.R., Japan, France, China, Sweden and China were held in India. During
2003-04 Festival of India was organised in Bhutan.

The National Research Laboratory for Conservation of Cultural Property

(NRLC), which was established in 1976, is a Subordinate Office of the
Department of Culture, and is recognised by the Department of Science and
Technology as a scientific institution of the Government of India. The aims
and objectives of the NRLC are to develop conservation of cultural property
in the country. To meet its objectives, NRLC provides conservation services


India 2005

and tl'chnical advice in matters concerning conservation to museums, archives,

archaeology departml'nt~ and other similar institutions, imparts training in
different aspects of conservation, carries out research in methods and materials
of nlOscrvation, disseminates knowledge in conservation and provides library
services to conservators of thl' country. The headquarters of NRLC is situated
at Lucknow, and to further the cause of conservation in the Southern region
of the country, a regional centn' of the NRLC, the Regional Conservation
Laboratory is functioning at Mysore. For more information visit NRLC at
http:// www /

Basic Economic Data

INOlA is rich in natural resources and manpower. These resources have,

however, not been exploited fully and are capablc of greater utilisation. The
Indian economy is still predominantly agricultural. About one-fourth of the
national income is derived from agriculture and allied activities, employing
about three-fifth of the working force. Since 1947, the national endeavour has
been t;-dfversify the economy.
The Ministry of Statistics and Programme Implementation consists of
two wings namely: Statistics Wing and Programme Implementation Wing. The
Ministry is the apex body in the official statistical system of the country. It
is the cadre controlling authority of the Indian Statistical Service (ISS). It is
also the administrative Ministry for the Indian Statistical Institute, an
autonomous registered scientific society of national importance. The Ministry
includes, in/a-alia, Central Statistical Organisation (CSO) and the National
Sample Survey Organisation (NSSO).


The Cl'ntral Statistical Organisation (CSO) is responsible for formulation and
maintenance of statistical standards, work pertaining to national accounts,
industrial statistics, consumer price indices for urban non-manual employees,
conduct of economic census and surveys, training in official statistics,
coordination of statistical activities undertaken within the country and liaising
with international agencies in statistical matters. The eso b headed by a
Director General, and is located in Delhi. A major portion of its work relating
to industrial statistics is~ed out in Kolkata.
National income is defined as the sum of incomt'S accruing to factors of
production, supplied by normal residents of tht' country bdore deduction of
direct taxes. It is identically.!9u~~_ to_~t't_na.t.i_?_f\9.:Lr':~)li_uctat factor cOlit. Table
6.1 gives estimates of nationaf ana per capit<l incon1(; at current and 199394 prices, while table 6.2 gives relationship of national income and other
aggregates at current prices. Table 6.3 gives performance of the public sector
and table 6.4 gives private final consumption expenditure, net domestic saving
and capital formation since 1993-94.
For the 2001 census, the population was divided into main workers, marginal
workers and non-workers. Data released so far shows total workers subdivided into main workers and marginal workers and distribution of total
workers in four broad categories in rural and urban areas as on 1 March 2001.
These are presented in table 6.5. Employment in the organised sector has been
shown in table 6.6.


India 2005

._ __ _-_ _-_._-_. .





1993-94 price



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1998-99 1999-2000 2000-01




Basic Economic Data


The number of persons on the live register of the employment exchanges gives
an idea of the trend of unemployment subject to certain limitation~. Employment
exchanges cover mainly urban areas. Not all the unemploYl'd register their
names in exchanges. Further, somt' already employed get registered for better
employment. Tablt' 6.7 gives registrations, vacancies, placements and job
seekers on the 'live register' for the, period 1994-2003.


The National Sample Survey (NSS) was set-up in ]950 for conducting largescale surveys to meet the data needs of the country tor the estimation of
national income and other aggregates. It was reorganised in 1970 by bringing
together all aspects of survey work under a single agency, known as the
National Sample Survey Organisation (NSSO) under the overall technical
guidance of Governing Council to impart objectivity and autonomy in the
matters relating to collection, processing and publication of the NSS data.
Besides a non-official Chairman, the Governing Council consists of two
statisticians from Indian StatistiLal Institute, three Economists/Social Scientists
from Universities, Research Institutions and other private organisations and
Senior Statistical Officers of the Ministry of Statistics and Programme
Implementation, i.e., Director General of Central Statistical Organisation,
Heads of Computer Centre and the four Divisions of the NSSO. The Director
General and Chief Executive Officer (DG&CEO) of NSSO, is the MemberSecretary to the Council.
The DG and CEO as executive head of the NSSO is responsible for
conducting and supervising the activities of the organisation. It has four
divisions, namely, (i) Survey Design and Research Division (SDRD) (ii) Field
Operations Division (FOD) (iii) Data Processing Division (DPD) and
(iv) Coordination and Publication Division (CPO). Each Division is headed
by a Deputy Director General except the Field Operations Division, which
is headed by an Additional Director General.
The SDRD has its headquarters at Kolkata. FOD has its headquarters
at Defui with a network of six zonal offices located at Lucknow, Kolkata,
Nagpur, Bangalore, Jaipur and Guwahati, 48 regional and 117 sub-regional
offices spread throughout the country. The DPD with its headquarters at
Kolkata functions through the Data Processing Centres located at Delhi,
Girid.ih, Nagpur, Kolkata, Ahmedabad and Bangalore. The CPO located at
Delhi functions as the Secretariat of DG and CEO.
The subject coverage of the socio-economic surveys conforms to a welldefined cycle of surveys extending over a period of 10 years. Surveys on
consumer expenditure, employment and unemployment, social consumption
(health, education, etc.) manufacturing enterprises and service sector enterprises
in the unorganised sector are covered once in five years, while subjects like
land holdings and livestock holdings, debt and investment, are covered once


India 2005

in 10 years. Thus, out of a cycle of 10 years, pre-assigned subjects are allocated

for nine years while one year is kept for an open round to cover special topics
of current interest to mE'E't the demand of the data users. The data on
consumer expenditun' and employment and unemployment are also collected
in every round from a thin sample along with the main survey of enquiry.
The NSS 57"' round (July 2001 - June 2002) was earmarked for collection
of data on economic and operational cha,racteristics of unorganised enterprises
in the servin's sector (excluding trade and finance). The NSS 58th round (July
2002 - December 2002) survey was on disability, hOUSing condition, village
facilities and slum particulars besides household consumer expenditure and
The NSS 59 th round survey (January-December 2003) was on land and
livestock holdings, debt and investment. A Situation Assessment Survey of
Farmers was also conductl'd along with the 59'" round, on behalf of the
Ministry of Agriculture. The NSS 60th round survey (January - June 20(4) is
on morbidity and health can' besides consumer expenditure, employment and
The results of NSSO surveys are brought out in the form of NSS reports.
So far, 4H8 reports have been brought out. NSS reports (hard and soft copies)
are available for sale. Summary results are also published in Sarvekshana,
a biannual technical journal of the NSSO. Validated unit level data relating
to various surveys of the NSSO an' available on CD-ROM for sale at nominal
The NSSO undertakes the fieldwork of Annual Survey of Industries
under statutory provisions of tht' Collection of Statistics Act, 1953 (Central
Rules, 1(59) covering all factories registered under Sections 2m (i) and 2m
(ii) of the Factories Act, 1948, and bidi and cigar units registered under the
Bidi and Cigar Workers (Conditions of Employment) Act, 1966.
The NSSO also provides technical guidance to states in the field of
agricultural statistics for conducting crop estimation surveys and keeps a
continuous watch on the quality of crop statistics through the Improvement
of Crop Statistics Scheme.
The NSSO regularly collects rural retail prices on monthly basis from
shops I outlets in selected markets located in a sample of 603 villages and 59
urban centres for compilation of Consumer Price Index numbers.
The NSSO conducts Urban Frame Survey (UFS) for providing sampling
frame of first stage units in the urban sector. It is carried out in a cycle of
five years, thereby providing updated frame twice in a span of 10 years.

The new series of index numbers of wholesale prices (base 1993-94-100) was
introduced from 1 April 2000. These series have 435 distinct commodities as

Basic Economic Data


against 447 commodities in the old series (baSIC' 1481-82=1 1)0). Tlw number of
price quotations has also been revised from 2,371 in the earlier series to 1,9Hl
in the nt'W series.
Table h.8 gives index numbers of wholesale prices (1993-94 =100) for the
period 1995-96 to 2002-03 for all commodities and for selected groups Jsubgroups of thret' major groups, namely: (i) primary articles; (ii) fuel, power,
light, lubricants; and (iii) manufactured products.

Tahle 6.9 gives consumer price index numbers for industrial workers for the
period 1993-94 to 2003-04 and tabll:' 6.10 gives consumer prict' index numbers
for urban non-manual employees for the period 1':193-1'4 to 2003-04 at the alJIndia level and somt' sell;'cted centres.


Central Statistical Organisation (CSO) undertook a countrywidt' Economic
Census, first of its kind, in 1977 to provide a better frame for follow-up
surveys and background information, viz., distribution of non-agricultural
t'nterprises, employmt'nt, I;'tc., needed for efficient sampling design, to bridge
tht' data gaps in thc unorganised sector of non-agricultural economy covering
non-agricultural establishments, i.e., employing at least one hired worker on
a fairly regular basis. The first Economic Census was followed by two sample
surveys-one in 197R-79 relating to un organised manufacturing and the
second in 1979-80 devoted to trade, hotels and restaurants, warehousing and
The second Economic Census was conducted in 1980 alongwith the
houselisting operations of Population Census 198] with enlarged scope and
coverage of all types of enterprises, viz., (a) Own Account Enterprises (OAE),
(b) Non-Directory Establishments (NDE), and (c) Directory Establishments
(DE) in the non~agricultural sector except crop production and plantation. The
items of information collected include location of enterprise, nature of
operation, type of ownership, social group of owner and total number and
number of hired persons usually working in the enterprise. According to this
cen'!lUS, there were 18.4 million enterprises (excluding Assam) in the country
employing 53.6 million persons. Among these, there were 16.9 million
enterprises (58.4%) in rural area~ engaged in non-agricultural activities
employing 50.7 million person., (43.3%) in rural areas. Based on the frame
and information from this census, three follow-up surveys were carried out,
one in 1983-84 on hotels and restaurants, transport, storage and warehousing
and services; second in 1984-85 on unorganised manufacturing, and third in
1985-86 on whole-sale trade and retail trade. In addition, OAEs and NOEs
engaged in manufacturing and repairing activities were surveyed by NSSO
during July 1984-June 1985 and July 1989-June 1990 respectively and OMEs
were surveyed during October 1984-September 1985 and October 1989 to
September 1990. The sampling frame of 1980 census was updated during 198788 in 64 towns.


India 2005





































Basic Economic Data






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India 2005

The third Economic Census 1990 was conducted along with the houselisting operations of 1991 Population Census in all States/UTs except Jammu
and Kashmir. The all-India results of 1990 were brought out by CSO. On the
basis of the frame thrown up by Economic Census 1990, follow-up survey
covering sectors of mining and quarrying and storage and warehousing was
conducted during 1992-93 and survey on hotels and restaurants was conducted
during January to September 1994 and another follow-up survey covering
directory trade establishments was conducted during 1996-97. In addition, the
first integrated survey on unorganised manufacture covering Own Account
Manufacturing and Repairing Enterprises, NDE Manufacturing and Repairing
Establishments and Directory Manufacturing and Repairing Establishments
were undertaken during NSS 51" round by NSSO. As per the results of
Economic Census 1990 (including Jammu & Kashmir) there were 25 million
enterprises out of which 22.7 million were in the non-agricultural sector. The
total number of persons usually working were 72.1 million. Of these, 40.2
million were hired workers. A total of 17.7 million enterprises operated without
any hired labour on a regular basis and were mainly run by the household
members themselves.
The fourth and tht, latest Economic Census was conducted during 1998
in all States/VTs in collaboration with concerned State/VT Directorates of
Economics and Statistics. It has been de-linked from the Population Census
with a view to building up a time series with a shorter interval. The All-India
Report had been released by CSO. The report is available on the website of
till' Ministry (
As per all-India results, there were 30.35 million enterprises of which
26.87 million relate to tht non-agricultural sector. Total number of persons
usually working was 83.30 million, of which 43.29 million were hired workers.
A total of 21.38 million enterprises operated without any hired workers on
regular basis. This census covered all the enterprises, viz., Directory
Establishments (DE), Non-Directory Establishments (NOE) and Own Account
Enterprises (OAE). As a follow-up of this, survey on unorganised manufacturing
was conducted during 56th round by NSSO. In this survey, information from
1998 Economic Census was used for stratification and list of villages and blocks
was used as frame for selection of first stage units.
The fifth Economic Census is proposed to be conducted in the year 200405. The census as in the fourth Economic Census would cover all entrepreneurial
activities throughout the country (except crop production and plantation). The
number of household and enterprises for which data are to be collected would
be around 2,114 lakh and 400 lakh respectively. For this purpose a Standing
Committee has been constituted under the Chairmanship of Director General,
Central Statistical Organisation to look into various aspects relating to conduct
of fifth Economic Census. The Standing Committee recommended constitution
of three Working Groups, namely, Working Group-I for planning of the survey
and finalisation of content of formats of the schedules, Working Group-II on
conduct of field survey work and the working Group-ID for processing and
release of results, etc.

Basic Economic Data


Planning Commission has accorded in principle approval for conduct

of fifth Economic Census with budget outlay of Rs 70 crore for annual plan
2004-05 and total outlay of Rs 99.20 crore for the Tenth Five Year Plan. There
are certain new features to the fifth Economic Census that includes canvassing
of a separate Address Slip among the establishment for compilation of
directory for larger establishments.


The Annual Survey of Industries (ASI) is the principal source of industrial
statistics in India. It provides statistical information to assess and evaluate,
objectively and realistically, the change in the growth, composition and
structure of the organised manufacturing sector comprising activities related
to manufacturing processes, repair services, generation, transmission, etc., of
electricity, gas and water supply and cold storage. The survey is conducted
annually under the statutory provisions of the Collection of Statistics Act,
1953. The ASI extends to the entire country except the States of Arunachal
Pradesh, Mizoram and Sikkim and Union Territory of Lakshadweep. It covers
all factories registered under Sections 2m(i) and 2m(ii) of the Factories Act,
1948. The survey also covers bidi and cigar manufacturing establishments
registered under the Bidi and Cigar Workers (Conditions of Employment) Act,
1966. Certain services and activities like cold storage, water supply, repair of
motor vehicles and of other consumer durables like watches, etc., are covered
under the survey. Defence establishments, oil storage and distribution depots,
restaurants, hotels, cafe and computer services and also the technical training
institutes are excluded from the purview of the survey. The data collected
through ASI relate to capital, employment and emoluments, consumption of
fuel and lubricants, raw material and other input/ output, value added, labour
turnover, absenteeism, labour cost, construction of houses by employers for
their employees and other characteristics of factories/industrial establishments.
Field work is carried out by the Field Operations Division, NSSO. The CSO
processes the data and publishes the results.
The ASI 2001"'()2 detailed estimates for factory sector indicate a total of
1,28,549 working factories in all States and Union Territories except the States
of Arunachal Pradesh, Mizoram and Sikkim and Union Territory of
Lakshadweep. This number does not include the electricity units registered
with the CEA. These factories together had a total fixed capital worth
Rs 4,31,96,013 lakh, productive capital Rs 5,32,36,598 lakh and invested capital
Rs 6,05,91,285 lakh. These factories provided gainful employment to about
7.69 million persons and distributed Rs 51,05,957 lakh as emoluments to
The latest ASI 2002-2003 quick estimates for factory sector indicate a total
of 1,28,039 working factories in all States and Union Territories except the
states of Arunachal Pradesh, Mizoram and Sikkim and Union Territory of
Lakshadweep. This number also does not inlcude the electricity units


India 2005

registered with the CEA. Tlwse factories provided gainful employment to

about 7.R9 million persons and distributed Rs 68,70,748 lakh as emoluments
to employees.

The Industrial Statistics Division of eso also brings out a publication on
energy statistics containing tinw series data of diffl>rent energy SOUrCl$, viz.,
coal, crude pdroleurn, natural gas and electricity (hydro and nuclear), etc.
For the first time in 200(]-OI, diltd on installations made under major nonconventional energy programmes at State and all-India level are also
presented in this publication. The Statistics presented in this publication art'
based on thl' latest data supplied by the concerned government departments/
organisations, viz., Office of Coal Controller; Ministry of Petroleum and
Natural Gas; Office of the Economic Adviser, Ministry of Commerce dnd
Industry; Centr"l Electricity Authority; and Ministry of Non-Conventional
Erwrgy Sources. Efforts afe being made for fl'gular updation of this publication.
TIl(> latest publication "Energy Statistics" for the year 2002-03 is eleventh in
the Sl'r;ps of documents brought out from timl' to time by the eso to med
the information lwpds of national and international policy makers,
administrators and researchers n>nCt'rned with energy sector. Time series data
relating to production, availability, consumption and prieto indices of major
SOlll"Cl'S of energy in India for 33 years (from 1970-71 to 2002-03) has been
prt'sented in the publication "Energy Statistics" for the year 2002-03.





Total l'opulation




l()t.11 Workers










20111 (','nsus

Marginal Workers
Main Work... r~

( 'ultivators





Agricultural L\bourers





Household Industry Workers





Other Workers




Note : India figures exdud ... thoSt of the three sub-divisions viz, Mao Maram. Paomata and
Purul of Senapati district of Manipur as population Census 2001 in these three sub-divisions
were cancelled due to technical and administrative reasoll.'i although a population census was
carried out in these sub-divisions as per schedule.


Basic Economic Data

~ "E N8


















'" '"












....... 8:






















































... is:







... ,



























....... ......














"E... ""~
















'" '"

















India 2005



Number of
Exchangcs l





at the
end of

increase in
Live Register
previous year








































































Including University Employment Information and Guidance Bureaus.

Source; DGE&tT

Basic Economic Data






_ ------


t .....




. In a:.




















----_ _-














,.....- .....







India 2005













All India


Linking Factor



















































































































Dclhi/NC'w Delhi






2J 1






























































Note: A New Series ot Index Numbers on Base 1984-85 - 100 was introduced from November
1987. All India Index on New Bilse may be converted to Old Base (1%0-100) by multiplying
the conversion factor 5.32. Conversion factors in respect of Mumbai, Kolkata, Chennai, Delhi /
New Delhi are 5.38,4_51,5.77 and 5.08 respectively.


FOREIGN trade has played a crucial role in India's economic growth. India's
exports covl'r a wide range of items in the agricultural and industrial sectors
as also handloom, cottage imd handicraft articles and of-late, petroleum
products. Project exports which include consultancy, civil construction and
turn key contracts have also made a significant progress in recent years.
Computer software exports have also increased significantly. Imports have
increased substantially, bulk of which comprise items likl' petroleum and
petroleum products, fertilisers, precious and semi-precious stones for export
production and capital goods, raw materials, consumablcs and intermediates
for industrial production and technological upgradation.


(Rs LTon')




























1. 72.64 'i














1, S4,17h


































(P) : Provisional Data

India's total external trade (exports plus imports including re-exports) in the
year 1950-51 stood at Rs 1,214 crore. Since then, this has witnessed continuous
increase with occasional downturns. During 2003-04 the value of India's

India 2005


external trade reached Rs 6,45,558 crore. A statement indicating India's total

export, import, total value of foreign trade and balance of trade from the year
1990-91 to 2003-04, in rupee terms, is given in table 7.1.
India's exports of merchandise goods in dollar terms during 2003-04 are
valued at US $ 63.5 billion. With this achievement, which implies a growth
rate of 20.36 per cent, the target of 12 per cent fixed for 2003-04 has been
exceeded. With this, exports have exceeded the targeted growth rate in the
first two years of the Tenth Five Year Plan. In Rupee terms, the exports of
merchandise goods during 2003-04 are valued at Rs 2,91,582 crore compared
to Rs 2,55,137 crore in 2002-03 with a growth rate of 14.28 per cent. India
has achieved this at a time when the world economy was struggling to revive
and even many of the developed countries have found it difficult to achieve
growth in their exports.
At tht' same time, imports increased from Rs 2,97,206 crore in 2002-03
to Rs 3,53,976 crore during 2003-04 thereby registering a growth of 19.10 per
cent. In dollar terms imports increased by 25.44 per cent. In rupee terms the
trade deficit in 2003-04 was Rs (-) 62,394 crore as against Rs (-) 42,069 crore
during 2002-03.
India has trading relations with all the major trading blocks and all the
geographical regions of the world. Region-wise and sub region-wise spread
of India's trade during 2002-03 and 2003-04 is given in table 7.2. In dollar
terms, Asia and Oceania accounted for 46.35 per cent of India's total exports,
followed by West Europe (24.02 per cent) and America (21.10 per cent) during
2003-04. India's imports were highest from Asia and Oceania (34.54 per cent)
followed by West Europe (23.58 per cent) and America (8.59 per cent), during
the same period.
(Rs crore)





West Europe




East Europe





CIS and Baltic States























Asia and Oceania

Latin American Countries


Exports in Rupee terms have shown an increasing trend and diversification

of its base over the years. While there are year-to-year variations, the



commodities whose exports have been increasing over the last few years and
also in 2003-04 include agriculture and allied products, ores and minerals,
gems and jewellery, chemical and allied products, engineering goods, electronic
goods, textiles, petroleum products and procesSt'd foods. Exports of principal
commodities during 2003-04 as compared to the corresponding period of
previous year are given in table 7.3.
(Rs cfore)












Marine products




On'S and Minerals




Leather and manufactures










Chemical and related products




Engineering goods





















Agricultural and allied pmducts

('..ems and Jewl>llery

Sports goods

Electronic goods

Project goods



Petroleum products




Unclassified Exports


11 ,831.13


Cutton Raw (including CottlID waste)

Imports are made to meet the essential requirements of domestic consumption,
investment, production and as inputs for exports. Bulk imports as a group
registered a growth of 15.71 per cent in rupee terms during 2003-04 and
accounted for 37.87 per cent of the total imports. This group includes,
fertilisers, edible oils, newsprint and petroleum products. The other principal
imports consist of pearls, precious and semi-precious stones, machinery,
electronic goods, iron and steel, medicinal and pharmaceutical products,
organiC and inorganic chemicals, coal, coke and briquettes, artificial resins,
etc. The details of Indian imports of principal commodities during 2002-03
and 2003-04 are given in table 7.4.









in crnf(')


A. Bulk Imports

1,1 'i,HM. 75

I ,34,01>7.4~


H1I 11






Edible Oil




Pulp i1nd wash' paper




j'dr"r board and llldilufacturt'"




I. 134. hI>






'i. 74h.n





I'etrol('um crude and product.,




B. J'l'arJs, Prl'cious and



on's and m(,tal scrilp

Iron and Stet'l


Semi-Precious Stones

C. Machinery



21 '11;









2,251 IIi


Coa!. coke and nri4ulltls



Nonm .. tallic milwrdl n1dllUf.lctur.. s










Ml'di<:inal and Phantl.! Products




Artifid<ll J'('sins, etc.




Chemical pwducts

2,1 H7.3H



Other Tl'xtrl,' yam, h,bri('s, ete.



















D. Project Goods
E. Others

Organic and In('rganic chemic,lis





ot metab



Electronk' goods

Wood and wood products

Gold and Silver






;' OU,oon


i 1},O 1)00




i __







SolJrc., DGCI & s, KolkM,)


India 2005


A Medium-Term Export Strategy which is co-terminus with the Tenth plan

period (2002-07) was announced in January 2002 with the objective of
enhancing India's exports. A number of programmes/schemes have been
launched which include schemes like Assistance to States for Developing
Export Infrastructure (ASIDE), establishing Agri Export Zones, Market Access
Initiative, strengthening "FoclIs LAC" programme, introducing "Focus Africa"
programme, etc. In the Exim Policy, 2003-04 and Exim Facilitation Measures
announcld in January 2004, bt.sides, tht' focus on Service exports and policies
to strengthen Special Economic Zones (SEZs), a new programme called "Focus
CIS" has been introduced. Thus measures are being taken from time to timE;'
to increase India's exports.


The North America Free Trade Agreement (NAFIA) was signed in 1994. It
is free tradt area with a custom union between United States of America,
Canada and Mexico. This is the largest and most important trading bloc of
the world. The import of NAFTA is about 25 per cent of world's total.imports
and the exports constitute about 19 per cent of world's total exports. The intraregional trade between three partner countries is around US $ 707 billion. This
trade bloc has special significance for India as USA is not only the biggest
trading partner of India but also plays a major role in the diversification and
creation of trad(' within the NAFTA region.
India-USA Bilateral Trade: USA is India's largest trading partner and plays
a dominant role in India's trade. It accounts for 19.8 per cent of India's exports
and around 655 per cent of India's imports. But, India accounts for only about
one per cent of USA's total exports and imports. India's export and import
to / from USA have been as under :
(in US $ million)

per Cl'nt


per rent

Balance of







(-) 1.'1'1

(+) 355'1.34





(-) 2.20

(+) 4B:i5.39


(-) 15.31

(+) 6290.12


(+) 3021.22






(-) 8.510


(+) 4.46

(+) 5363.73





(+) 41.08

(+) 6452.18




(+) 5572.11




(. )1.48


(+) 14.57

(+) 4929.06



Exports: During the period April-January 2003-04 India's export to USA were
at US $ 8,031.53 million declined by 1.48 per cent from the corresponding
period of the previous year, when the exports were US $ 9,065.62 million.
The share of India's exports to USA out of India's global exports has been
recorded at 18.33 per cent during April-January 2003-04 which was 21.21 per
cent during the corresponding period of the previous year. The major items
of export to USA during April-January 2003-04 are as below :
(in US $ million)

Gems and Jewellary


(32.44 per cent)

RMG cotton including accessories


(9.79 per cent)

Cotton yam, fabrics, madeups


(4.66 per cent)

Manufactures of metals


(4.10 per cent)

Drugs, Pharmaceutics and


(4.01 per cent)

Fine chemicals

.Imports : India's imports from USA during April-January 2003-04 have been
recorded as US $ 4,002.47 million showing an increase of 14.57 per cent over
the imports in the corresponding period of the previous year when they were
recorded at US $ 3,493.51 million. During this period, the share of India's
imports, have been recorded as 6.42 per cent, which was 6.97 per cent during
the corresponding period of the last year. The major items of import from
USA during April-January 2003-04 are as below :
(in US $ million)

Electronic Goods


(20.82 per cent)

Machinery except electric

and electronic


(11.99 per cent)

Other commodities


(8.96 per cent)

Transport equipment


(7.43 per cent)

Professional instruments, etc.,


(5.79 per cent)

except electronics

During the period April-January 2003-04, the balance' of trade has

remained in favour of India at US $ 4,929.06 million. In the corresponding
period of last year it was US $ 5,572.11 million.

India-Canada Bilateral Trade: Indo-Canadian bilateral trade has increased

from US $ 848.73 million in 1997-98 to US $ 1,256.91 million in 2002-03,
registering 48.09 per cent increase within a period of five years. India's exports
were increased by 35 per cent and imports by about 26 per cent during this


India 2005

period. The bal.1nce of tr,lde has been in favour of India for the last fiw years.
The pattl'nl of tr,llit- during last five years has been as follows:
(in US $ million)


I ()97(jH





pl'r cl'nt


p,'r cent

Ilal,mn' of


(-) HAO


57H :,7

lHO "I

( ) 1..11




JIll' 07



( )10.<12







57.' .. 11





April "lIllJar\'

WI ..10



(-I Ill,


[xT,orts : During April-Jdnuary 20OJ-04, India's l'xp(lrt~ to Canada at US $

601.3() million rl'gistered a positive growth of 5.06 per cent over the
corrl'~pol1ding pl'riod of tIll' previous yl'<lr when tIll' exports were at US $
572.31 million. The share of India's exports, to Canada (lut of India's global
l'Xpurts during 20():I-04 was recorded at 1.23 per Cl'nt. which was 1.34 per
cent during till' m1Tesponding period of the previous year. The major
cummodities of exports to Canad" during the period Apnl-}i1l1uary 2003-04,
were ,15 below:

LIS $ millioll)

Ri\1(, ('ottOIl (incilldin),; ,Il'l'('ssoril's)


Drugs, ph'lrl1l<ln'util'i1I~ ,llld


(11.:16 per cent)

Cotton yarn, fabric;., maLiPlIps, ptc


(7,()4 pl'r cpnl)

M,HlUfactUfl'S of ll11'tdls


(5.16 per cent)


(4.18 per cenl)

(2.1.19 Ilt'r l't'nt)

tinl' chl'micals

Imports: During April-January 2003-04, India's imports from Canada were

recorded at US $ 497.19 million shOWing a negative growth of 1.36 per cent
over the imports in corresponding period of the previous year when they were
recorded, US $ 504.05 million. The sharl' of lndia's imports from Canada out
of India's global imports, were rcwrded at 0.80 per cent during this period,
which were 1.01 per cent during the corresponding period last year. The major



commodities of imports from Canada during the period April-January 2003-04

wert' as below :




(20.85 per cent)



(19.17 pt'r cm!)

Ferti lizeTS manufactured


(12.23 p('r cent)

Pulp and wasil' paper


(10.21 per ct'nf)

Electronic Goods


(5.40 per cmf)

IlIil/iOIl )

During April-January 2003-04 the balance of tradl' was in favour of India

at US $ 104.11 million. In the corresponding pl>riod of last yt'dr it was US
$ 68.27 million.

India-Mexico Bilateral 1,ade: As in the case of other Latin American

countries, growth in trade between Mexico ilnd India has bpen inhibited by
such factors, as distance, difference of language, hold of multinationals in the
neighbourhood, etc.
In spite of constraints, India's trade has grown consistently at a good
pace over the years. The Indo-Mexican trade during the last five years has
been as under:
(in US$ million)


Export (;r(lwth
rer n'nt


Import Cr(lwth
peT ('{'nt


flillilllCt' (If


lJ l.OH

















(-) 44.21

























Exports : Ouring April-January 2003-04, India's exports to Mexico were at

US $ 195.86 million, registering a negative growth of 12.73 per cent over the
corresponding period of the previous year when the exports were at US $
224.44 million, The share of India's exports to Mexico out of India's total
exports during this period was recorded at 0,40 per cent which was 0.53 per


India 2005

cent during the corresponding period of the previous year. The major
commodities of exports to Mexico during April-January 2003-04 were as
(in US $ million)

Drugs, Pharmaceuticals and Fine Chemicals


(26.19 per cent)

RMG Cotton (including accessories)


(16.31 per cent)

Transport equipments


(11.01 per cent)

Inorgank / organic / agro chemicals


(4.67 per cent)

Machinery and Instruments


(4.52 per cent)

Imports : During April-January 2003-04, India's imports from Mexico were

recorded at US $ 61.07 million showing an increase of 22.28 per cent over
the imports in the corresponding period of the previous year when it was
recorded at US $ 49.94 million. During this period, the share of India's import
from Mexico out of India's total import has been recorded as 0.10 per cent
which was also 0.10 per cent during the corresponding period of last year.
The major commodities of imports from Mexico during April-January '20C304 were as below :
(in US $ million)

Electronic Goods


(23.76 per cent)

Medicinal and Pharmaceutical Products


(20.42 per cent)

Iron and Steel


(12.58 per cent)



(9.93 per cent)

Metaliferous ores and metal scrap


(6.69 per cent)

During April-January 2003-04 the balance of trade was in favour of India

at US $ 134.79 million. In the corresponding period of last year it was
US $ 174.50 million.
European Countries account for about 25 per cent of India's total trade at
US $ 34 billion. During 2003-04 India's exports to Europe were US $ 15.56
billion and imports were US $ 18.53 billion. During the same year the bilateral
trade registered a growth of the 21 per cent.
European Union (EU) presently consists of 25 countries. Prior to 1 May
2004, 15 countries, viz., Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and
UK were members of EU. Ten more countries, viz., Cyprus, Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and



Slovenia have joined the EU on 1 May 2004. Three countries, viz., Bulgaria,
Croatia and Romania would be joining the European Union in the year 2007.
European Union is India's !argest trading partner accounting for about
21 per cent of India's global trade. However, despite the fact that more than
US $ 14 billion exports of India are directed to EU, India's share in Ell's global
imports is around one per cent and India ranks 20th as Ell's trading partner.
The top five items of India's exports to Europe are cotton readymade garments
including accessories, gems and jewellery, cotton yam/fabrics, made-ups,
machinery and instruments and drugs/pharmaceuticals/fine chemicals. The
top five items of India's imports from Europe are pearls/precious/semiprecious stones, gold, machinery, electronic goods and organic chemicals.
India and the EU countries have healthy economic relations both
individually and collectively. These relations are built on the foundations of :
(i) India-EU Cooperation Agreement on Partnership and Development;
(ii) India-EC Joint Commission. India also has bilateral trade/economic
cooperation agreements with individual EU countries. These agreements/fora
provide a permanent platform for periodic review of bilateral economic and
commercial relations. Among the non-EU countries, India has similar agreements
with Bosnia Herzegovina, Bulgaria, Croatia and Romania.
Commercial Relations : There are more than 50 countries in the Sub-Saharan
African region. Sub-Saharan Region accounted for 4.19 per cent (approx) of
India's total trade during 2002-03. India's share in global trade of Sub-Saharan
Africa has been low due to distance. language barriers and lack of information
on both sides about business opportunities. India's trade in the region is
largely with 10 countries, namely, South Africa, Nigeria, Mauritius, Ivory
Coast, Tanzania, Senegal, Kenya. Ethiopia, Benin, and Ghana.
In spite of various constraints, India's trade with the region has grown
rapidly. The total trade between India and Sub-5aharan Africa has grown from
US $ 4,273.61 million 2001-02 to US $ 5,335.38 million in 2002.,2003 ~
a growth of about 24.84 per cent. The trade with the region during AprilJanuary 2003-04 stood at US $ 4,65275 miUion as against US $ ~.41 miHion
over the same period in the pleVious year ~1i1\g a growth of 3.64 per

Exports : India's exports

to Sub-Saharan Aftica constitute a mere 4.69 per

cent (approx.) of the total ~l exports of Iadia during 2002-03. India's
exports to the region has increased by 13.45 per cent from US $ 2,161.03 million
in 2001-02 to US $ 2,451.77 million in 2002-03. f:nd:ian exports during AprilJanuary 2003-04 stood at US $ 2,337.41 million as against US $ 2,033.93 million
over the same period in the previous 'Yft!' ft!8istering a growth of 14.92 per

Imports : India's imports to Sub-Saharan Africa constitute a mere 4.71 per

cent (approx) of the total global imports of India. during 2002-03. India's
imports, from the region has increased by 36.50 per cent from US $ 2,112..58


India 2005

million in 20m-02 to US $ 2,88:1.61 million in 2002-03. Indian imports during

April-January 2003-04 stood at US $ 2,315.34 million as against US $ 2,455.48
million over tht' same period in thl' previous year registering a decline of
5.71 pl'r cent.
Major Items of Exports: (a) Cotton yam, fabrics, made ups., etc., (b) Drugs,
pharmaceuticals and fine chemicals (c) Manufilctures of Metals (d) Machinery
ilnd Instruments, (l') Man-mad(' Yarn, Fabrics, Madl'ups (f) Transport equipment
(g) Primary and Semi Finished Iron and Steel (h) RMG Cotton including
Accessories (i) Plastic and Linoleum Products, ilnd (j) Inorganic / Organic /
Major Items of Imports: (a) Cold, (b) Coal, coke and briquettes, etc., (c)
Inorganic Chemicals, (d) Metalifer ores, metal scrap, (e) Pearls, Precious and
semi pn'ciolls stones, and (f) Fl'rtilizers, crudl', etc.
Bilateral Cooperation: Bilateral Trade Agreements are one of tht> tools to
promott' trade with countril's in Sub-Saharan Africa. Such Trade Agreeml'nts,
exist with 2,) countries in the fl'gion. A trade Agn'ement with Zambia was
sigm'd in April 2003.
foclls Africa Programme : The "Focus ; Africa" Programme was launched
on 11 March 2002 along with the announCl'ment of EXIM policy for the years
2002-07, with a view to enhance the trade with Sub-Saharan African Countries.
During the first year i.e., 2002-03 of the Focus Africa Programme emphasis
was laid only on sevpn targeted countries namely South Africa, Ghana,
Tanzania, Mauritius, Nigeria, Kenya and Ethiopia. From 1 April 2003 the
Focus Africa Programme has been extended to all the countries of Sub-Saharan
Africa where India has Missions as also to six countries of Northern Africa
Region. The total number of countries covered under the Focus Africa
Programme have increased from til(' initial seven to twenty-four.


A scheme for setting up Special Emnomic Zones (SEZs) in the country to
promote exports was announced by thl' Government in thl' Export and Import
Policy on 31 March 2000. The SEZs are to provide an internationally
competitive and hassle-free environment for exports and are expected to give
a further boost to the country's exports.
The Policy has provided proviSions for setting up SEZs in the public
joint sector or by State Governments. It was also announced that some
of the existing Export Procl'ssing Zones would be converted into Special
Economic Zones. Accordingly, the Government has issued notification for
conversion of all the existing Export Processing Zones (EPZs) into Special
Economic Zones. In addition the Government have also granted approval for
setting up of 25 Special Economic Zones in the private/joint sector/by the
State Governments at Positra, Mundra and Dahej (Gujarat), Navi Mumbai and
Kopta (Maharashtra), Nanguncri (Tamil Nadu), Kulpi, Salt Lake and Calcutta



Leather Complex, (West Bengal), Paradeep and Gopalpur (Orissa), Bhadohi,

Kanpur, Moradabad and Greater Noida (U.P.), Kakinada and Visakhapatnam
(Andhm Pradesh), Indore (Madhya ['radl~sh), Sitapura and Jodhpur (Rajasthan),
VallJrpadam/f'uthvypl'l~n (Kerdla), Hassan .:md Baikampady (K.rrnataka) and
R<lIlchi (Jharkhand).
Some of the distinctive feah.Irl's of thl' scheme are: a designatl'd dutyto be trc,lted as foreign territory for trade operations and dutit'S
,1lld tariffs; SEZ units could be for manufdcturing/ sl'rvicl's; no routine
('X.l111indtion of export ,md import Cdfgo by clistoms; sale in domestic market
on full duty and import policy in forn'; SEZ units to be pOSitive nl't foreign
exchange earners in thn'l' years; no fixl'd wilstagl' norms; duty-free goods to
be utilised within tlw approval period of five years; performance of SEZ units
to he l1lonitort'd hv " COl1llllittt'l' mnsisting of till' Development Commissioner;
subnlJ1tracting (If P,lI't of production and production process allowed for all
sl'ctors, including jl'wellel'Y units; IO() per cent foreign direct illvestment
through <lutOITILltiC roult' in the rn,lI1ufactllring sector; 100 per cent Inconwl,l'l( exemption fnr five year~ ,lnd 50 pl'f cent flit' two years thereafter and 50
per cent of the ploughed b,ICk profit for tIlt' next thn'' years; external
commercial borrowing thJ'(lugh automatic route, etc


At present 711 units arc in operation in eight SEZs. Exports by SEZ units
during 2003-04 Wl'IV of the order of K<; 14,004 crore as compared to Rs 10,057
crore during 20Ol-(D.
The Export Oriented Units (EOUs) scheme introduced in early 1981, is
('(Jll1plcnwntary to the SEZ srhl'me. It nftl'rs <l wide option in locations with
reference to factors like source of rclW IlItlteJ'ials, ports of export, hinterland
fclcilities, and availability of technologiccll skills, existence of an industrial base
and tht net.'d for a larger arl'a of bnd for the project. The EOUs have put
lip their own infrastructure. Exports by EOUs during 2002-03 were of till'
order of Rs 22,729 crore while exports during 2003-04 were estimated at
({s 27,012 crore.
The World Trade Organisation (WTO) came into being ;,s a result of the
t'volution of the multilateral trading system since thl' establishment of GAn
in 1947. The protracted Uruguay Round negotiations spanning 1986-1994,
which resulted in the establishment of WTO, substantially extended tilt' reach
of multilateral rules and dL<;ciplines related to trade in goods, and introduccd
multilateral rules applicable to trade in Services as well as trade in knowledge
(Intellectual Property Rights). Uruguay Round negotiations also resulted in
a separate agreement on agricultural product:,. Besides, a phased programme
of integration of textile and clothing products into the GATT framework was
also agreed to. The rules prescribed by GATT and its associate agreemenb
were to be subscribed to by all the member countries of WTO as a 'Single
Undertaking'. WTO agreements were ratified by the Government after taking
into account the perceived balance of rights and obligations conferred by these

India 2005


India is a founder member of both GAIT and WTO. (WTO provides

a rule based, transparent and predictable multilateral trading system, which
protects the member countries from the pressures of stronger trading partners.
WTO rules envisage non-discrimination in the form of National Treatment and
Most Favoured Nation (MFN) treatment to India's exports in the markets of
other WTO Members. National Treatment ensures that India's products once
imported into the territory of other WTO Members would not be discriminated
vis-a-vis the domestic products in those countries. MFN treatment principle
ensures that Members do not discriminate among various WTO Members not
only in their tariff regim~s but also in respect of various other rules,
regulations, incentives, etc. If a member country feels that the due benefits
are not accruing to it because of trade policies practiced by another trading
partner, it may file a dispute under the Dispute Settlement Mechanism (DSM)
of the WTO.


@lere are also co-!!tjn_g~.,:,isio~ built into WTO rules, enabling

Member countries to take care of exigencies like balance of payment problems
and situations like surge in imports. In case of unfair trade practices causing
injury to the domestic producers, there are proviSions to impose AntiDumping or Countervailing duties as provided for in the Anti-Oum'ping
Agreement and the Subsidies and Countervailing Measures Agreement.)
(However, during the implementation of WTO Agreements --~rtain
imbalances and inequities have been found) Many of the Special and
Differential Treatment Clauses in favour of developing countries in various
WTO agreements have remained unoperationalised. India along with other
like-minded Members has highlighted these "implementation related concerns"
in WTO.

wro Membership : The present strength of WTO Membership is HZ. This

includes China and Nepal whose accession was approved by the WTO
Ministerial Conferences held in Doha and Cancan in November,2001 and
September 2Q03 respectively. There are presently 30 countries in thl' process
of accession to the WTO.
wro Ministerial CO'Jerences .~ 'The highest decision-making body of the
WTO is the Ministerii., Conference, which has to meet at .least every two yelU's.
The Ministerial Conference can take decisions on all matters under any of
the multilateral trade agreements., Since the coming into being of the WTO
in January 1995, five Ministerial Conferences have been held, namely,
Singapore (9-13 December 1996); Geneva (18-20 May 1998); Seattle (30
November - 3 December 1999); Doha (9-14 November 2001); and Cancun
(10-14 September 2003).
(The Singapore Ministerial Conference saw the interested Members of the
WTO 'negotiating an Information Technology Agreement and the launch of

work programme on the four so-called Singapore Issues, namely, Rel~!io~p

between Trade and Investment; Interaction betweeIl Trade and Co.m~ti~on
Policy; Transparency in Government Procurement; and Trade Faci:li.~tion. The



Geneva Ministerial Conference was timed to coincide with the celebrations

of the 50 years of the GAIT multilateral trading systt~m. The Seattle Ministerial
Conference collapsed without being able to reach a consensus on the
Declaration to be adopted by the Ministers.
The Doha Ministerial Conference adopted a comprehensive Work Programme,
Called the Doha Development Agenda, launching negotiations on some issues
and setting out additional parameters and timeframes for the negotiations on
agriculture and services that had commenced on 1 January 2000 in accordance
with the mandates in the respective WTO Agreements. The Doha Ministerial
Conference also adopted a Declaration on TRIPS Agreement and Public Health
and a Decision on Implementation-related Issues and Concerns.
In the statement made at the Plenary Session of the Doha Ministerial
Conference, India attached the highest priority to the resolution of the
Implementation~related concerns relating to existing WTO Agreements and
further emphasised that the development dimension in the shape of Special
and Differential (S&D) treatment to developing countries be effectively
int('grated into the future work programme. India stressed that food security
and rural development concerns sh0l!ld be safeguarded in addition to phasing
out of market distorting subsidies.: In the Services negotiations that had
commenced from 1 January 2000, the importance of movement of natural
persons was emphasised. India also underlined the need for sufficient
flexibility and clarity in the Trade Related Aspects of the Intellectual Property
Rights (TRIPS) Agreement to enable the members, in particular the developing
countries, to implement their public health policies. Further, India reiterated
its position of the need for completion of the study on the four Singapore
issues by the respective Working Groups/WTO bodies before any negotiation
could be considered. India also opposed the inclusion of non-trade issues like
labour within the ambit of WTO and attempts to widen the environmental
window for legitimising trade restrictive measures.
The salient features of the Doha Ministerial Declarations and Decisions
are summarised as follows :
(i) TRIPS and Public Health (The MiIlisterial Declaration on the T~PS an.d
Public Health is one of the most significant outcomes of the Doha Ministerial
Coruerence. It -recogruses iliat the .TRIPS .A_greement can and.~houl(f-be
irrterpreted and Implemeniea-in-a' in~~;r s~p;rtiv; ~f
M;~bE!rs' right
to prcifecf P"ubHcHeahh and to p-romote access -to medkine~ for-all. It would
enabIeInfuta-have fleXibility in complilsory licensmgand-paraITer imports,
particularly, for diseases like HIV / AIDS, tuberculosis, malaria, and other
epidemics. The Declaration would enable more flexible interpretation of the
TRIPS Agreement in the Dispute Settlement Process of WTO in the context
of public health problems.)



India 2005

(ii) Implementation Issues : Forty-thn'p implementation issues have been

,lddrcssed in the Decision on implel1H'ntation-rl'lated issues and concerns. The
Decisions which concern significant benefits to India include: (a) Longl'r time
I r,lIlW 01 six munths for compliance with new
and TBT measUlVS;
(b) Mur,ltori lIlll 01 two Yl'ars on nOll-violation complaints under the TRIPS
Agrl'l'llwnt; (e) Inv\'stigdting iluthoritil's tll examine with special Ciln' for
initj,1tioll III bolck-lo-b,1(k .mti-dumping investigation within 365 days;
(d) Members to oHn cooper,1liol1 and assistancl' including furnishing
inform.ltiotl ,1l>uul <'xporl \',du" when the customs administration of an
ill1plll'ting ML'tt1bl'r<., hdS n'dSlll1,lbll' grounds to doubt the truth or accurc1CY
of thl' dt'd,l!"l'd \',tlut'; (l') TIlt' issue of extension of the hight'f Il'Vel of
proteclilJn of gl'll~~r.tphic,d indicdlions provided for in Article 23 to products
(ltl1l'r th,1I1 winl'<" ,1I1d spirit... would be ilddrl'ssed by tht' TRIPS Council. as
part ot rl'drl'~sdl (II ttnf,ll'llwflt,ltion isslles; (f) Tht' issul' (If advilncil1~ of
growth Oil gr(lwth lit ljuot,1 levels for ll'xtill' products was actively pursued
at till' Minisl('ri,d Cnllft'rl'lKl'_ Illlwl'vcr, this WdS not ,1grt'ed to and is being
tXdlllilltd 11\' 1111' Cowh'il for Tr.1dl' in CooLis.


It h,ld ais(l lwell oIgn'l'd rwgotiations on all the other outstanding
impll'l1ll'ntdtioll issues sh.!11 be an Il1tegrill part of the Work I'rogramn1l' of
tl1\' WTl) l'llIllclwd by tlk' Dohel Ministerial Conil'n't1n. For the first tinll',
thus, resolutillll 01 impll'tlll'llt,lti(ln-rt'lated conCl'rns 11,lS bel'n built into tht'
i'vlinistl'rt,11 DeciMation or tl1\' Work Programme.

(iii) Sped.11 and Differential Ire,ltrnent: Tlw nl'goti,ltiol1s sh,lll fully t.lkl' intll
,1CCllunt tIll' prlllciple ot spl'ci.ll ,1I1d diffcfl'ntial (S&D) trl'iltTlll'nt for developing
l'(llltltries_ It h,lS ,1IS(l bl'cn ,lgrl'('d th,lt ,111 S&D provisiolls in WTO Agreements
shelll be revil'wl'd with ,I view tIl strl'llgthl'ning them and making them mon
prl'CiSl" effectiv!' illld O},tl\ltioll,lI.
(iv) Agriculture : III Agriculture, the on-going negotiations would aim at
reduction of ,III forms of l'Xpllrt subsidies with tht' vit'w t(l phaSing out, ,1I1d
substantial red lIctiollS in tl".1(I(' distorting domestic support bt'ing givt.'n by the
dcvl'lopl'd countries. Sped'll ,md difftorel1tialtreatnll'nt for devl'loping countril.~
to dkctiVIly tdke into ,1Ccount of tlwir dl'velopment needs, including fnod
security ,md rllral dl'vl'lopnll'nt would become an integr,11 part of these
rll'gotidtion~. These Ilt'goti.ltions would n'sult in greater markd access for
agricultur,ll prouucts of dl'vl'loping countries Iikl' India, while allowing them
to rl'l.1in the necessary flexibility. The contents of thl' declaration significantly
go beyond tIll' I,111 gu agl.' of Article 20 of the Agn.:'t'lllcnt on Agriculture
m,mdating such Ilq~ntiations,
(v) Services : The negDtiations will be conducted on tilt' basis of Negotiating
Cuidt'lines and Procedurts (NGP) adopted in Milfl~h 2001. The NCr is largely
b.lsl'll Oil thl' propos'll of India and 23 other developing countries and
rt'cogllisl'~ ,1ppropridte f1l'xibility for dlvdoping countries and the primacy
of tht' reqm'st-oHer approach as the main method of negotiations. The
recognition of proposals on movement of natural pcrsons is welcome and a
distinct g<lin as it is .111 iSSllt.' of cort' interest to India.



(vi) Negotiations on Market Access for Non-Agricultural Products :

Negotiations 011 market access, including tlw rl'duction or elimination of tariff
peaks, high tariffs and tariff escalation, in particular on products of export
interest to dewloping countries, taking fully into account thl?ir special 11l-'t'ds
and interests, would provide greater market access to lndia's products in thl'
developed countries.
(vii) Rules : It has been decided to initiate negotiations on Anti-Dumping
Subsidies Agreement for clarifying and improving the underlying
disciplines. Addressing outstanding implementation issues on these subjects
w(luld bl' an integral part of these negotiations. Strengthening the disciplines
would curtail the arbitrary use of anti-dumping measures and countervailing
duties for protlx'tionist purpoS(.'s beyond what is mandated by the respective

(viii) Dispute Settlement Understanding: Tht' Declaration also provides for

negotiations on improvements and clarification to thl' Dispute Settlement
Understanding. While it is expectl'd that the 'Sequencing' issues may form
tilt' main focus of such negotiations it is possible that it may see a widened
scope it members' bring othl'r proposills for consideration.
Ox) Trade and Environment: On Environment, it was dl'cided to initiate
Jwgpliations on tl1(' relationship between existing WTO rult's and MEAs,
limited in scopc' to the applicability of such existing WTO rules as among
parties to the MEA in question, procedurl' for information exchange between
MFA Secretariats and WTO and market access for environmental goods and
services. Thl' negotiations on market access for environnwntal goods and
sl'JTices would also be covered under market access negotiations for non,lgricultural products. Tht' WTO Committce on Tradt and Environment (CfE)
has been asked to pursue work on all itl'ms on its agenda, while giving
particular attention to the issues of dfect of l'nvironn1l'ntal measures on
11Iarh,t access, the relevant provisions of the TRIPS Agreement and labeling.
TIll' items of TRIPS Agreement and the effecl of environmental mt'aSUf($ on
m<lrket access were included for particular focus based on India's proposal.
eTE shall submit a report to the Fifth Millis{t:,rial Conference.

(x) Singapore Issues: The Singapore Issues of ; (il) Trade and Investnll'l1t,
(b) Trade and Compdilion, (c) Trade Facilitation, and (d) Transparency in
Covernment procurement will continue ttl be pursued in the study process.
It has bt't'n further agreed that negotiations on these subjects can be taken
up after the Fifth Ministerial Confef(~nct' only on the basis of a decision to
be taken by 'explicit consensus', at that Conference. While earli{,f such 'explicit
consensus' was a prerequisite for negotiation for two of the four Singapore
Issues, (Le., Investment and Competition), this prerequisite is now necessary
for the two other Singapore Issues as wl'11.
(xi) Labour: The Declaration recognises that lLO is the appropriate forum
to address the issue of core labour standards.
(xii) Work Programme: The Doha Ministerial Declaration mandates that the


India 2005

negotiations under the Work Programme shall be completed not later than
1 January 2005. The outcome of the negotiations shall be treated as parts of
a single undertaking. The negotiations shall be supervised by a Trade
Negotiations Committee, which shall appoint appropriate negotiating
mechanisms as necessary to supervise the progress of negotiations. Elements
of work programme not involving negotiations will be pursued under the
overall supervision of tht General Council. In respect of negotiations on
improvements and clarifications of the DSU, it was aimed that agreement in
this regard would be reached not later than May 2003. The Doha Ministerial
Declaration also mandated that the Fifth Session of the Ministerial Conference
will take stock of progress in the negotiations, provide any necessary political
guidance, and take decisions as necessary. Further, when the results of the
negotiations in all areas have been established, a Special Session of the
Ministerial Conference will be held to take decisions regarding the adoption
and implementation of those results.
In spite of the complexities of international negotiations, India managed
to protect its interests to a larger measure. The salient points in this regard
are : \(i) Able to keep out the issue of Core Labour Standards from the WTO
by getting a reiteration from the Ministers that this issue belonged to the ILo;.
(ii) Key interests in Agriculture, Services and Non-Agricultural Products
protected; (iii):,_ Was able to get the study process on the four Singapore issues
continued thereby deferring a decision on negotiations by two years) A
decision regarding 'modalities for negotiations on these four issues will require
a decision by the fifth Ministerial Conference on the basis of explicit con..-;ensus
of all Members; (iv) Bringing to the centre of WTO's work programme issues
of interest to India such as implementation issues, TRIPS and Transfer of
Technology; (v) Incorporation of strong safeguards in the mandate for
negotiations as well as the work programme relating to the area of environment;
(vi) Major gains in TRIPS and Public Health by getting a separate Declaration
adopted; and (vii) Finally, getting the developmental goals and priorities of
developing countries like India into the centre stage of the Work Programme.
Even though development had been sought to be given the centre stage of

the Doha Work Programme, later events leading up to the Fifth Ministerial
Conference in Cancun showed that it was not to be.~ the Doha deadlines
on issues of critical importance to the developing countries, such as the TRIPS
and Public Health; Implementation issues; and Special and Differential
Treatment were missed. Even the implementation of paragraph 6 of the Doha
Ministerial Declaration on TRIPS and Public Health, an issue very critical to
the African countries to counter the HIV / AIDS menace, took such a long time
and the decision was taken on 30 August 2003 after unnecessary and
protracted negotiations: \

Prior to Cancun, the US and the EC made a joint submission on

modalities for negotiations on Agriculture that did not take into account the



concerns of developing countries. (While not willing to agree to engage in

elinunation of trade-distorting export subsidies and domestic support, this
proposal sought steep tariff cuts by developing countries to gain increased
markets for the product., of th~ developed countries. This led to the birth of
a coalition of developing countries, now called the G-20, that played a very
major role at Cancun in shaping its deliberations
The Cancun Ministerial Conference was meant mainly to be a forum to
review the progress of negotiations under the Doha Work Programme
mandated at Doha and give guidance / directions wherever necessary with a
decision expected only on one outstanding issue, namely, the status of the
Singapore issues. The Conference also provided ample opportunity to test the
seriousness of developed countries with regard to the development dimension
of the Doha Work Programme. \}Iowever, the Cancun Ministerial Conferen<;:e
became complex in view of the serious differences in the ambition levels of
wro Members on the two most contentious issues, namely, Agriculture and
Singapore issues;

the imbalance in the revised draft text circulated by the Chairman of

the Conference on 13 September 2003 was loaded heavily against the interests
of developing countries and triggered strong opposition from the developing
countries and resulted in the failure to adopt Ministerial Declaration: The
Cancun Ministerial Conference adopted a short Ministerial Statement on 14
September 2003 that recognised that more work needed to be done in some
key areas to enable the Members to proceed towards the conclusion of the
negotiations in fulfillment of commitments taken at Doha. The Ministers
instructed the officials to continue working on outstanding issues with a
renewed sense of urgency and purpose and taking fully into account all the
views expressed in the Cancun Ministerial Conference. Further, the Ministers
asked the Chairman of the WTO, to coordinate this work and to convene a
meeting of the General Council at Senior Officials level no later than 15
December 2003 to take the action necessary at that stage to enable the wro
to move towards a successful and timely conclusion of the negotiations. The
Ministers reaffirmed their commitment to implement the Doha Declarations
and Dedsions fully and faithfully.
(One positive outcome at Cancun is the solidarity expressed by developing
countries for protecting their interests and their ability to stay together in spite
of pressures exerted by developed countries to break the coalitions?It should
be seen as a positive development since up till now, the trade majors had
decided among themselves on what the agenda should be and implanted such
decisions on the WID Membership. Anotht'r positive development was the
role of G-20 in effec;;tively placing the viewpoints of the world community
dependent on agriculture for livelihood, before the Cancun Ministerial

Post-cancun Developments: Even though the Cancun Ministerial Conference

failed, the WID Members continued consultations under the General Council


India 2005

process in Gl'm'v,). As directed by the Ministers dt Cancun, the General

Coullcil met on 15-16 December 2003 dnd started efforts for reaching a
consensus on the various issut's. India and other Members strongly supported
the Ceneral Council Chairman in his efforts to rt'viVl' the process.
The C-20 played a very crucial role in the aftermath of the Cancun
Ministeri,)1 Conference. India and Brazil represented the G-20 Group in the
npgotiatinns, especially on agriculture, with the dt'vl'loped countries to reach
an undlrstanding as the failure to achieve progress in agriculture had a
tleg.ltive impact on the progress on other issues under negotiation. The group
of five c()untrics, commonly called Fiw Jnterpsted Parties (FlPs), comprising
of lI~qia and Brazil from the G-20 and Australia,-Uw Ee and tht, US from
the developed world htld rt'gular meetings to arrive at a consensus. India
actively participated in these meetings that were held at both official and
ministerial levels to ensure that its concerns especi<llly on food and livelihood
sl'curity and mral development wen' taken on board. India was successful
at the end with its concerns being taken on board while adopting thl'
Framework Agreement on 1 August 2004. Throughout the Geneva process,
India reiterated its stand on forward movement in implementation and special
and differential treatment issues for achieving tangible results in other areas.
The i.;('Illral Council Decision of 1 August 2004 has set a timeframe for
resolving these issUt's.
This Framework Agreement of I August 2004 sets out the guidelines for
further negotiations under the Doha Work Programme, encompassing key
areas of agriculture, non-agricultural market access, services and trade
facilitation, until the Sixth Ministerial Conference. The General Council has
decided to schedult' the Sixth Ministerial Conference to be held in Hong Kong,
China for December 2005.


As India's largest international trading company, Minerals and Metals Trading
Corporation (MMTC), a Golden Super Star Trading House, is actively
involved in cultivating markets overseas for exporters and locate raw material
or product sources that meet the needs of importers. Core areas covered by
the company include minerals, metals, fertilizers and fertilizers raw materials,
precious metals, agro-products, coal and hydro-carbon and general trading.
During the year 2003-04 MMTC has achieved a turnover of Rs 9,178
crore, comprising of exports Rs 1,920 crore, imports Rs 6,761 crore and
domestic business of Rs 497 crore. This represents a growth of 49 per cent
in turnover, over corresponding period of last year. After recording a highest
over export turnover of Rs 2,336 crore during 2002-03, the export turnover
of Rs 1,920 crore achieved by the company during 2003-04 was the second
best export turnover achieved since its inception.



Commodities Boards: There art' fiw statutory Commodity Boards under the
Dl'partment of Commerce namely, 'lea Board, Coffel' Board, Rubber Board,
Spices Board and Tobacco Board. These BOilrds arc rt'sponsibll' for production
and dcwlopment of tea, coffee, rubbl'r, spic('s and tobacco respectively.
Export Inspection Council : The Export Inspection Council, New Dplhi an
autonomous body, is responsible for the enforcement of quality control and
compulsory pre-shipment inspection of various exportable commodities covered
under the Export (Quality Control and Inspection) Act, 1963.
Indian Institute of Foreign Trade : The Indian Jnstitult, of POTt'ign Trade,
New Delhi registered under the Societies Rt'gistration Act, is ('ngaged in the
following activities : i) Training of personlll'l in modern techniques of
international tradt' : ii) Organisation of research in problems of foreign trade;
iii) Organisation of marketing research, area surveys, commodity surveys,
market surveys; and iv) Dissemination of information arising from its activities
relating to research and market studies.
Indian Institute of Packaging: The Indian Institute of Packaging, Mumbai,
is registered under the Societies Registration Act. The main aims of thl'
Institute are to undertake research of raw materials for the packaging industry,
to organise training programmes on packaging technology and to stimulatl'
consciousness of the need for good packaging, etc.
Marine Products Export Development Authority : The Marine Products
Export Development Authority, Cochin a statutory body, is responsible for
development of the marine products industry with special reference to
Agricultural and Processed Food Products Export Development Authority:

The Agricultural and Processed Food Products Export Development Authority,

New Delhi is also a statutory body which serves as the focal point for
agricultural exports, including the export of processed foods in value added
There are, at present, ten Export Promotion Councils under the administrative
control of the Department of Commerce. These Councils are registered as nonprofit organisations under the Companies Act/Societies Registration Act. The
Export Promotion Councils perform both advisory and executive functions.
They are also the registering authorities under the Export and Import Policy,
1997-2002. These Councils have been assigned the role and functions under
the said Policy.
Federation of Indian Export Organisations : The Federation of Indian Export
Organisations (FIEO), New Delhi is an apex body of various export promotion


India 2005

organisations and institutions. It also functions as a primary servicing agency

to provide integrated assistance to Government recognised Export Houses/
Trading Houses and as a Central Co-ordinating Agency in respect of Export
Promotional efforts in the field of consultancy services in the country. The
FlEO organises seminars and arranges participation in various exhibitions in
India and abroad. The Federation continued to publish FLEO News during
the year for creating awareness amongst its member exporters and importers.

Indian Council of Arbitration: The Indian Council of Arbitration set-up

under the Societies Registration Act promotes arbitration as a means of
settling commercial disputes and popularises the concept of arbitration
among the traders, particularly those engaged in international trade. The
Council, a non-profit service organisation, is a grantee institution of the
Department of Commerce. The main objectives of the Council arc to promote
the knowledge and usc of arbitration and provide arbitration facilities for
amicable and quick settlement of commercial disputes with a view to
maintaining the smooth flow of trade, particularly, export trade on a sustained
and enduring basis.
Indian Diamond Institute : The Indian Diamond Institute (101), Surat is
registered under the Societies Registration Act. It was established in 1978 with
the objective of strengthening and improving the availability of trained
manpower for the gems and jewellery industry by conducting various
Diploma/Post Graduate Diploma level courses.


THE establishment of modern Postal System in India can be traced back to

the second half of 18th century. This ~tal system, established by Lord Cliv!
in the year 1766L_was further developed by Warren Hastings by establishing
Calcutta G.P.O. under a Postmaster General in the year 1774. In other
Presidencies of Madras and Bombay, there came into existence the General
Post Offices in the year 1786 and 1793 respectively. The Act of 1837 first
regulated the post office on a uniform basis to unite the post office
organisation throughout the three Presidencie!t' into one all-India Service. The
Post Office Act of 1854 reformed the entire fabric of the Postal system, and
the Post Office of India was placed on the present administrative footing on
1 October 1854. Besides providing postal communication facilities, the post
office network also provided fadlities for remittance of funds, banking and
insurance services from the latter half of the 19th century.

At the time of independence there were 23,344 post offices throughout the
country. Of these 19,184 post offices were in the rural area and 4,160 in the
urban area. Today, the country has 1,55,837 post offices, of which, 1,39,280
are in rural areas and 16,557 in urban areas. As a result of this seven-fold
growth in the postal network, India has the lariest postal network in the
Expansion of postal network to increase access to postal counter fadlities,
espedally ill rural areas, was effected through opening part-time Extra
Departmental Post Offices, a system unique to the Department of Posts. Under
this system. local residents are employed, subject to fulfillment of certain
criteria, to man the post office for a period not exceeding five hours a day,
and to deliver and convey mails for payment of certain allowances. On an
average, a post office serves an area of 21.09 sq km and a population of 6,602.
Post offices in rural areas are opened subject to satisfaction of norms regarding
population, income and distance stipulated by the Department. There is an
element of subsidy for the rural postal network. Subsidy is given to the extent
of 85 per cent of cost for operating post offices in hilly, desert and inaccessible
areas whereas in normal rural areas, it is limited to the extent of 66.7 per
cent of the cost.

The postal network consists of four categories of post offices, viz, Head
Post Offices, Sub-Post Offices, Extra Departmental Sub-Post Offices and Extra
Departmental Branch Post Offices. All categories of post Offices retail similar
postal services, while delivery function is restricted to some offices. In terms
of management control, accounts are consolidated progressively from Branch
Post Offices to Sub-Post Offices and finally in Head Post Offices. Therefore,


lndii1 2005

thl' 848 Head Post Offices in the country serVl' as accounting hubs of the postal
First class mail, viz, post cards, inland letter cards and envelopes are
transported by air, wherever found advantageous, without any surcharge.
Second class mail, viz., book packets, registered newspapers and periodicals
are carried by surface transport, i.t,., through train and road transport.
The Department has handll'd approximately 909.40 crore pieces of mail
during the year 2002-03. Out of this, 782.77 crore constituted first class mail
which comprised household mail as well as official and business
corr('spondl'ncc. 5<_'cond class4ltmail was to the extent of 126.62 crore. The
volume' of unregistered mail handled during 2002-03 was 887.16 crore, of
which rural mail constituted 351.1] crure and urban mail 536.04 crore. The
registered mail handled during 2002-03 was 22.24 crorc.
Automatic Mail processing Centres : For efficient handling of mail in the
metros, the Department has set up two Automatic Mail Processing Centres
at Mumbai and Chennai. This has enabled processing of a large volume of
mail efficiently. Thl' Department has plans to set up more such centres.
Money Order : Money Order service was introduced in 1880. Under the
ordinary money order scheme, remittancl' of an amount up to Rs 5,000 can
be made through each money order. It also provides facility to send a message
to the addresSt't' along with thto> money transmitted. In 2002-03, 10.50 crore
Mom'y Orders were booked for a value of Rs 8,650 crore.
Money Order transmission through VSAT Network : As apart of
modernisation strategy, in 1994, the Department of Posts successfully introduced
Satellite based Money Order Service for speedy transmission of money orders
throughout the country. 150 high-speed Very Small Aperture Terminals
(VSAT<;) were established in major post offices during the Ninth Five Year
Plan which are in tum connected to more than 1,300 Extended Satellite Money
Order Stations (ESMOs), located in neighbouring Post Offices through
telephone network.
With a view to ensuring a dedicated mail transmission system catering to
special customer needs, local mail is segregated from non-local mail. For the
pUrpOSl' of giving priority in transmission, non-local mail is further segmented
as household mail, official mail, corporate mail, patrika and periodical mail,
packets and parcels. First class, household and official mail are identified as
priority mail.
Computerisation of Registration Sorting : As a part of the modernisation
programme, computerisation of registration sorting work in major mail offices



was undertaken. A beginning in this regard was made during tht' financial
year 1995-96 by computerising registration sorting work at Delhi, Mumbai,
t Iyderabad and Chennai. Up to 3] March 2003 n'gistration sorting work in
(19 mail offices were computerised.
Computerisation of Transit Mail Offices : Another area identified for
computerisation is the Transit Mail Offices (TMOs). The TMOs have a vital
rok in the smooth handling and transmission of closed mailbags. Two TMOs,
lldmely, Delhi Airport TMO and Bombay Airport TMO were computerised
Juring the financial year 1996-97. 28 transit mail offices were computerised
till 31 March 2003.
Modernisation of Mail Offices : To improve the ergonomics and ambience
of Mail OffiCt's, these are being modernised with belter operational eguipment
and improwd furniture. The project was started during the financial year
1995-96, when 22 Mail Offices were modernised. By 31 March 2003, 274 mail
offices Wl're modernised.
Computerisation of Head Record Offices : As a part of the modernisation
programme, computerisation of the Head Record Offices (HROs) for proper
maintenalKl' of records and their prompt retrieval and efficient office
management, was undertaken. A beginning in its regard was made during
11,197-98 by computerising HRO Hyderabad Sorting Division. 32 Head Rl'cord
Offices were computerised up to 31 March 2003.
The dtwlopment in the field of communications and information technology
has given rise to the need for modernising postal services. The efforts of the
Department of Posts to modernise its services began in the early 1990s.
A road map for technology induction has been prepared with the aim
of computerising and networking major Post Offices, transmitting money
orders through high-speed/VSAT network, setting up more Automatic Mail
Processing Centres and implementing various e-governance policies of the
Government in the Tenth five Year Plan.
The Standing Committee on Technology, comprising representatives from
the Indian Institute of Technology, the National Informatics Centre, the
Department of Telecommunications and Department of Electronics, guides
and advises the Department of Posts in identifying appropriate technology
from time to time.


Computerisation in the Department of Posts with PC based Multi-Purpose
Counter Machines (MPCMs) started on a pilot basis during the last year of
the Seventh Five Year Plan. By the end of the Ninth Five Year Plan, 506 Head
Post Offices and 1,266 other Departmental Sub Post Offices were computerised.
These machines are being used for public transactions across the counters


India 2005

providing full range of postal services like Registratio~ Money Orders,

Parcels, Speed Post, Postal Life Insurance and Savings Bank operations.
Computers are also deployed for back office functions like supervisory
functions, record management, and Management Information System (MIS).
The process of computerisation is being continued during the Tenth Five Year
Plan, and it is proposed to computerise and network the remaining 339 Head
Post Offices, 5,600 large Departmental Sub Post Offices along with all Circle
and Regional Administrative Offices, all Postal Accounts Offices and 205
Divisional Administrative Offices during the Tenth Five Year Plan.
e-Post and e-Bill Post: The Department introduced two Internet based valueadded services namely, e-Post and e-Bill Post. Through e-Post, electronic
messages are booked at any Post Office in the country and are downloaded
at an identified Post Office and delivered to the recipient(s) as hard copies
thereby connecting individuals who do not have access to the PC I Internet
and thus reducing the digital divide. e-Post also offers customers the
opportunity to send messages to multiple destinations from a single source.
e-post facility is currently available in 620 Head Post Offices in the country.
e-Bill Post is another service, which allows customers to pay their
(multiple) utility bills like telephone, mobile phone, electricity, water supply,
municipal taxes, etc., at one window through Post Office counters. This service
can be availed at any computerised post office in the country, which is located
in areas identified by the provider of utility services, keeping in view their
customer base.
A Business Development Directorate was set up in 1996 with the objective
of marketing and promoting premium services for meeting the needs of
specific customer segments. Some of the premium services offered by the
Department are given below :
Speed Post: Speed Post Service was introduced on 1 August 1986. Under
this service, letters, documents and parcels are delivered within a given time
frame failing which full refund of postage is given to the customer. The speed
post network comprises 150 National and 753 State Speed Post Centres. This
service is also available internationally to 97 countries.
Business Post : The Department launched Business Post with effect from
1 January 1997 in order to meet specific needs of bulk customers. It provides
value addition to all traditional services offered by the Post in the form of
collectio~ insertio~ addressing, sealing, franking, etc.
Express Parcel Post : The Express Parcel Post seeks to provide a reliable and
time bound parcel service through surface transport. It provides door-to-door
delivery and VPP service up to Rs 50,000 to cater to corporate users and
business establishments on contractual basis. Express Parcel Post can be
booked in 100 cities of the country where National Speed Post Centres



Media Post : The Department offers a unique media to help the corporate
and government organisations reach potential customers through Media Post.
Under this facility, Customers can use the following for their branding
exercise, (a) Advertisement on post cards, inland letters, aerogram and other
postal stationery and (b) Space sponsorship options on letter boxes as well
as mail motor vehicles.
Retail Post : Through its vast network of more than 1.5 lakh post offices,
the Department offers the facility to collect all public utility bills and sale of
application form.<; for government and other private organisations.
Greetings Post: Greetings Post is a product introduced in September 2000.
The greeting card comes with an envelop upon which a postage stamp is
printed, which is a miniature replica of the design of the card as well as the
postage impression. This is specially beneficial to corporates who wish to
brand their products.
Speed Net : The Internet based track and trace service was launched on
J January 2002. Apart from prOviding tracking facility for Speed Post articles
to the customer, it also provides information to the management about the
quality of service, business performance, marketing, customer service, etc. It
is now operational from all 150 National Speed Post Centres.
Special and commemorative postage stamps issued by the Department cover
a wide range of themes reflecting the rich natural and cultural heritage of
the country. Important national/international events, famous personalities,
institutions, etc., are honoured through the medium of commemorative
postage stamps. These stamps enjoy wide popularity in the world of philately.
During 2003, the Department issued 71 commemorative special postage

India has been a member of the Universal Postal Union (UPU) since 1876
and of the Asian Pacific Postal Union (APPU) since 1964. These organisations
aim at extending, facilitating and improving postal relations among member
countries. India exchanges mail with more than 217 countries by air and
Money can be remitted from selected foreign countries to India by way
of Money Orders and Postal Orders. India has two-way Money Order service
with Bhutan and Nepal, wherein Money Orders can be sent to and received
from these countries. With the remaining 25 countries only inward service is
available wherein Money Orders booked in these countries can be paid in
India. British Postal Orders and Irish Postal Orders are encashable in India
at selected Post Offices.
International EMS which started in 1986 with five countries, is now
extended to 97 countries. With a view to facilitate export and import to and


India 2005

from fort:ign destinations Principal Foreign Offices of Exchange were set up

at Mumbai, Kolkata, Chennai and New Delhi. In addition, six sub foreign post
offices are established at Ahmedabad, Bangalore, Jaipur, Cochin, Srinagar and
Noida. Export Extension Windows are also operative at Varanasi, Kanpur,
Surat, Ludhiana, Moradabad and Guwahati to cater to the needs of the
exporters / tourists in the areas.
Modernisation and computerisation of foreign mail operations are taken
up in the current Five Year Plan for improving the quality of service. The
department also introduced bar-coding for all international accountable
articles to improve quality and accountability.

Post Office Savings Bank (POSB) has a customer base of 14 crore account
holders with annual deposits exceeding Rs 80,000 crore and a branch network
of over 1,55,000 branches, which is double the size of all the banks in the
country put together. There are seven financial products retailed from all post
offices across the country. These are Savings Account schemes, Recurring
Deposit schemes, TIme Deposit schemes, Monthly Income schemes, Public
Provident Fund schemes, Kisan Vikas Patras and National Savings Certificate.
On 31 March 2003, the outstanding balance under all National Savings
schemes in Post Offices stood at Rs 3,13,000 crore.
This service, which is operated in association with a multi-national company,
Western Union Financial Services International, provides customers the facility
of receiving instantaneous remittances from more than 196 countries on real
time basis. The service is currently available in more than 4,500 Post Offices,
and has delivered remittances in excess of US $ 140 million from April 2001
to May 2004. The service has provided the common man who has no bank
account or access to Internet, a viable channel for receiving remittances from
their relatives and family members abroad.
Since February 2001, a growing network of nearly 220 post offices is
distributing select Mutual Funds and Bonds(Principal/Prudential-IOO/SBI/
lOCI Capital/IDBI/RBI Bonds). The service, while extending the reach of the
capital market of the country also provides the common man easy access
to market based investment options.
Launched in April 2001, this service leverages the VSAT network of the
Department to facilitate end-to-end fund transfers by Banks (UTI/IDSI/
HDFC) on behalf of the corporate sector as well as the Capital Market. To
date, over Rs 1,400 crore have been transferred using EFI' service.




This scheme launched in January 2002, has facilitated the redemption of over
73,000 dividend warrants of UTI and Citibank worth more than Rs 100 crore
through the postal network, establishing the ability of the Department to
undertake the service, which is critical for the Capital Market of the country.
The Post Office provides like no other institutions, a single-window facility
to issue and payout warrants across the country.

Postal Life Insurance (PU) was introduced in 1884 as a welfare measure for
postal employees. Over the years, it was extended to the employees of
Central/State Government, Public Sector Undertakings, Universities,
Government aided Institutes, Nationalised Banks, Financial Institutions and
Grameen Oak Sewaks of the Postal Department.
PU offers five Insurance Schemes, namely, (i) Suraksha (Whole Life
Assurance), (ii) Suvidha (Convertible Whole Life Assurance), (iii) Santosh
(Endowment Assurance), (iv) Sumangal (Anticipated Endowment Assurance),
and (v) Yugal Suraksha Goint Life Endowment Assurance for couple). As on
March 2003, total number of active policies was 20,98,577.
The Rural Postal Life Insurance (RPU) was introduced by the PU
organisation on 24 March 1995 to provide insurance cover at low premium
to the common man and to weaker sections of society in rural areas. It is
now allowed to continue on permanent basis. There are five types of plans
under RPU namely, : (i) Gram Suraksha (Whole Life Assurance), (ii) Gram
Suvidha (Convertible Whole Life Assurance), (iii) Gram Santosh (Endowment
Assurance), (iv) Gram Sumangal (Anticipated Endowment Assurance), and
(v) Gram Priya (10 year Anticipated Endowment Assurance).
On 31 March 2003, the total number of active policies was 17,95,070.
During the year 2003...()4, approximate business worth Rs 2,926 crore in respect
of 2,64,396 PLI policies and R.. 6,520.68 crare in respect of 11,25,099 RPLI
policies was secured.


The Department has about 2.92 lakh departmental employees and about 3.09
lakh Gramin Dak Swales. Their training needs are met through a well
developed training infrastructure. At the apex is the Postal Staff College India
(PSCI), Ghaziabad which meets the training and developmental rleeds of
Indian Postal Service Officers and other Gazetted Officers. The Postal Training
Centres (PTCs) at Darbhanga, Madurai, Mysore, Saharanpur and Vadodara
impart induction, in-service and computer training to Postal operative and
Supervisory cadres. A new PTC was opened at Guwahati to look after the
training needs of the staff working in the North-East Region. In addition, 39
Workplace Computer Training Centres (WerC) are also functioning at the
Headquarters of Circles/Regions for imparting basic Computer skills. Efforts


India 2005

are also being madl' to set up 21 more wacs at the Circles/Regional

Headqudrters in the near future.
Since 194H, thl' Department of Posts has a well-established system of redressal
of public grievances with 1,165 Computerised Customer Care Centres (CCCs)
at the District Headquarters/Divisional Headquarters. This network covers
all Head Post Offices in the country with thE' objective of providing easy and
speedy access to information and help required by the customer, apart from
redressal of grievances. Since 2003, the Department also introduced a webbased system for handling grievances, which facilitates customers to register
their complaints on line at its official web-site The
Department has started implementing its Citizen Charter in all major post
offices of the country.

The Telecommunication services were introduced in India soon after the
invention of telegraphy and telephone. The first Telegraph line between
Kolkata and Diamond Harbour was opened for traffic in 1851. By March 1884,
telegraph messages could be sent from Agra to Kolkata. By 1900, telegraph
and telephone started serving Indian Railways. As in the case of telegraph,
telephone service was also introduced in Kolkata in 1881-82, barely six years
after the invention of telephone. The first automatic exchange was commissioned
at Shimla in 1913-14 with a capacity of 700 lines.
The Telecommunication services in India have improved significantly
since independence. With the opening of Telecom sector to private investment
and establishment of an independent regulator, the matter of separation of
service provision functions of the Department of Telecommunications (DOT)
and providing a level playing field to various service providers including the
government service provider, has been achieved. On 1 October 2000, a Public
Sector Undertaking, viz., Bharat Sanchar Nigam Limited (BSNL), was formed
to take over all the service providing functions of the erstwhile Department
of Telecommunication Services (DTS).
Initially, the telephone exchanges were of manual type, which were
subsequently upgraded to Automatic Electro-Mechanical type. In the last oneand-a-half decade, a significant qualitative improvement was brought about
by inducting Digital Electronic Exchanges in the network on a very large scale.
The number of departmental exchanges which was 321 as on 31 March 1948,
has increased to 37,313 by May 2004. Today aU the telephone exchanges in
the country are of electronic type.
By the end of 2003-04, India was the tenth largest telecom network in
the world, measured in terms of number of phones. As on 31 May 2004, the
network comprises of 77.93 million telephone connections and over 1.79
miHion Public Call Offices (PCOs). There are over 27.17 million cellular
subscribers in the country and the cellular customer base is 2I'Owin2 at the



rate of about one million per month. In the field of basic telecom service, there
were 31 private licences and two public sector licences at the end of March
2004. After tht' introduction of Unified Access Service Licence regime in
November 2003 27 licences out of thest 31 licenct's were converted to Unified
Access Service Licences. Eighteen more licences were issued for Unified
Access Service during the current financial year. Further, in the area of mobile
telephone, of the total 78 licences, 55 were in the private sector and 23 in
public sector. Of the total roll (lut of telephone connections (basic and cellular)
as on 31 May 2004, privatt.- sector accounted for about 41 per cent and public
sector accounted for 59 per cent.
Fully automatic International Subscriber Dialing (ISD) service is available
to almost all the countries. The total number of stations connected to National
Subscriber Dialing (NSD) as on 31 May 2004 is 31,686. In thl' field of
international communications, tremendous progress was made by the use of
satellite communication and submarine optical fibre links. The voice and nonvoice telecom services, which include data transmission, facsimile, mobile
radio, radio paging and leased line service, cater to a wide variety of needs
of both residential and business customers. Integrated Services Digital
Nf'twork (ISDN) facility is available in a number of cities. A dedicated Packet
Switched Public Data Network with international access for computer
communication services is also made available.
Communication Convergence Bill 2001: In pursuance of the New Telecom
Policy (NTP) - 1999, action was taken to prepare a new comprehensive statute
to replace the Indian Telegraph Act 1885 keeping in view the rapid
convergence of telecom, computers, television and electronics. Accordingly, the
Communication Convergence Bill, 2001 was introduced in the Lok Sabha on
31 August 2001. The Bill was referred to the Standing Committee on
Information Technology for examination. The Committee submitted its Report
on 20 November 2002.
Regulatory framework in the Telecom Sector: In early 1997, the Telecom
Regulatory Authority of India (TRAI) was established to regulate the
telecommunication services and for matters connected therewith or incidental
thereto. The establishment of the Regulator was considered necessary in the
context of Iiberalisation and private sector participation in the Telecom Sector
and to provide a level playing field for all operators.
By amendments made to the TRAI Act, the entire telecom regulatory
framework, including the disputes settlement mechanism were strengthened.
Besides bringing about clarity in the role and functions of the Regulator
(TRAI), certain additional functions were also entrusted to it. A separate
disputes settlement body known as the Telecom Disputes Settlement and
AppelJate Tribunal was also constituted for expeditious settlement of disputes.
Tariff Rebalancing Measures: In response to the policy changes in the Indian
Telecom Sector, the tariff structure has been altered substantially. The


India 2005

Telecommunication Tariff Order (ITO) 1999, issued by the Regulator (TRAJ)

had begun the process of tariff rationalisation with an increase in monthly
rental and decreasing SID and ISD tariffs. This rebalancing exercise was
implemented by ITO 1999 in thn'e steps, regaining with the first phase in
May 1999 and the third from 14 March 2002. This resulted in a reduction of
NLD and ISO tariffs considerably. In the area of cellular telephony also, the
tariff rates have decreased substantially and the regime of Calling Party Pays
(CPP) is already in practice. TRAI is continuously engaged in tariff review
exercising for rationalising the tariff structure which is expected to result in
further tariff rebalancing. The new initiatives taken by TRAI in the telecom
sector to achieve the set of objectives include issuances of orders on
interconnection usage charges, monitoring the quality of services of all service
providers, conducting an objective survey on Quality Of Service (QOS)
parameters of basic and cellular service in different circles through an
independent agency, finalisation of the System of Accounting Separation (SAS)
and deregulation of tariffs for cellular mobile services under certain conditions.
Grameen Sanchar Sewak (GSS) Scheme: It is a pilot scheme launched on
24 December 2002 by the Prime Minister through Grameen Oak Sewak
Delivery Agents (GOSDA) of the Department of Posts (DOP), attached to the
rural post offices, who are willing to work as franchisee for BSNL on the
existing SID/ISD/PCO franchisee basis. In this scheme, GDSDA volunteers
are called Grameen Sanchar Sewaks (GSS), who carry a mobile fixed wireless
terminal (FWf) with display unit in a carry bag and visit door to door to
provide telephone facility to the rural population in his routine beat in the
villages. The FWT is supplied by the BSNL and the scheme has been
implemented throughout the country except in Andaman and Nicobar,
Haryana and Punjab telecom circles. As on 31 March 2004, 10,786 villages
are being covered by 2,544 GSSs.
USF and Disbursement of Funds: In order to enhance the teledensity in rural
and remote areas, guidelines for implementing Universal Service Obligation
(USa) were issued, effective from 1 April 2002. Administrator for
implementation of usa was appointed on 1 June 2002. To meet the investment
requirement, initially a five per cent Universal Levy is imposed on the
Adjusted Gross Revenue on all telecom operators excluding the pure value
added service providers. The usa Fund (USOF) was established as a separate
non-lapsable fund through a Bill passed by the Parliament in December 2003.
A sum of Rs 300 crore and Rs 200 crore was allotted to USOF for the year
2002-03 and 2003-04 respectively, which was utilised for extending the
Universal Service subsidy for more than five lakh Village Public Telephones
(VPTs), uneconomic rural DELs and replacement of 1.8 lakh MARR based
VPTs to improve the quality of service.

Based on the recommendations of Telecom Regulatory Authority of India

(TRAl), the Government announced guidelines on 25 January 2001 for issue
of licences, with unrestricted open entry, to new Basic Service Operators in



all the Service areas including the six service areas where private licencees
already existed. The country is divided into 21 territorial service areas for the
grant of Basic Service licence. The minimum paid-up capital and promoters'
combined net worth for each service area are to be in accordance with
prescribed norms. The Licence fee, which is in the form of revenue share, is
8 per cent/ID per cent/12 per cent of the annual gross revenue, depending
on the service area. The Spectrum charges are two per cent of revenue earned
from wireless access system. The roll out obligations are linked to establishment
of Points of Presence in a Short Distance Charging Area (specified geographic
region). The Basic Service Operators are permitted to carry their own long
distance traffic within their service area. 31 licences are issued in addition
to two public sector undertakings.
Introduction of Unified Licencing Regime: Con..<;equent to the acceptance
of recommendations of TRAI by the government on 31 October 2003, an
addendum to the NTP-1999 was issued by the Department of
Telecommunications including the Unified Licence for telecommunication
services and licence for Unified Access (Basic and Cellular) service. While the
former enabled the licencee to provide all telecommunication/ telegraph
services covering various geographical areas using any technology, the latter
permitted licencee to provide basic and / or cellular services using any
technology in a defined service area. After the issue of guidelines for Unified
Access Service, 27 of the 31 basic service licences were converted to Unified
Access Service Licence. Also, 18 new licences were issued for Unified Access
Service this year.
National Long Distance (NLD) service was opened to the private sector from
13 August 2000. Indian registered companies haVing a net worth of Rs 2,500
crore and paid up equity of Rs 250 crare are eligible to apply. The total foreign
eqUity in the applicant company must not exceed 49 per cent at any time
during the entire licence period. Investment in the equity of the applicant
company by an NRI / OCB / International funding agencies is counted towards
its foreign equity. The entry fee of Rs 100 crare is to be submitted before
signing the licence agreement along with four bank guarantees of Rs 100 crore
each. There is no restriction on number of operators. An NLD operator can
carry inter-cirde traffic in the country. The licence for NLDO is issued on nonexclusive basis, for a period of 20 years and is extendable by 10 years at one
time. In addition to Bharat Sanchar Nigam Limited (BSNL), three other
companies signed licence agreement for National Long Distance service. The
competition resulted in lowering of tariff.
The International Long Distance (ILD) service is basically a network carriage
service, providing international connectivity to the network operated by
foreign carriers. In accordance with the New Telecom Policy 1999, the
Government opened the International Long Distance Service from 1 April 2002


India 2005

to the private operator~. There is no restriction on tht, number of operators.

The Indian registered companies having a net worth of R.. 2S (.Tore are eligible
to apply. The total foreign equity in the applicant company must not exceed
49 per c~nt at any timl' during the entire licence period. Investment in the
equity of tht' applicant company by an NRI / OCB / International funding
agencies is countcd towards its foreign equity. The entry fee of Rs 25 crore
is to be submitted bdore signing licence agreement along with bank
guarantees of Rs 25 crore. The licence is valid for 20 years from the date of
licence dgrt."t.'ment. In addition to Vidcsh Sanchar Nigam Limited (VSNL), four
other companies signed licence agreement for International Long Distance
An W-ll licencee is permitted to lease / rent out / sell end-to-end bandwidth,
i.e., digital transmission capacity capable of carrying a message. This was
opened to private sector from 13 August 2000. The total foreign equity in the
applicant company is limited to 74 per cent. The applicant company is
required to pay Rs 10,000 as processing fee along with the application. There
is no entry {('C. However, a performance bank guarantee of Rs Five crore is
required to be submitted before signing the agreement. The licence is valid
for 20 years from tht' date of licence agreement. Six companies have so far
signed licence agreement for Infrastructure Provider Category-II.
The applicant company for IP-I requires registration only with DoT. Companies
registered as IP-] can providp assets such as dark fibre, right of way, duct
spacl' and tower. All Indian registered companies are eligible to apply. There
is no restriction on foreign equity and number of entrants. There is no entry
fee and bank guarantee. The applicant company is required to pay Rs 5,000
as processing fee along with the application. So far 75 companies have been
registered as Infrastructure Provider Category-I.
The country is divided into 19 Telecom Circles Service areas and four Metro
Service areas for the Cellular Mobile Telephone Service. There are three private
operators and one state-owned operator in each service area. At present there
are over 27 million cellular subscribers and are growing at the rate of over
one million per month. The Licence fee, which is in the form of revenue share,
is 8 per cent/l0 per cent/12 per cent of the adjusted gross revenue, depending
on the area of their operation.
Introduction of IUC Regime: In January 2003, TRAI notified the
Interconnection Usage Charges Regulation, 2003 which covered arrangements
among service providers for payment of interconnection usage charges,
covering Basic Services including WLL(M), Cellular Mobile Services, NLD and
ILD Services. This regulation provided for charges payable by one operator
to another for origination, transit and termination of calls in a multi-operator



environment. During 2003-04, based on several representations received from

telecom service providers and stakeholders with respect to the ruc Regime
as well as tariff under the new regime, TRAI carried out an extensive review
of the ruc Regulation and issued the Telecommunication Interconnection
Usage Charges Regulation on 29 October 2003. The new IUC Regime came
into force from 1 February 2004. The main features of the new rue Regime
are lower total amount of Access Deficit Charges (ADC), uniform termination
charges of Rs 0.30 per minute irrespective of terminating network, reduction
of ADC on NLD and ILD calls, all of which resulted into lower-tariff
environment on voice telephony.
New policy for Voice Mail / Audiotex Service, in terms of NTP-l999, was
annowlced in July 2001 by incorporating a new service, namely, Unified
Messaging Service (UMS). UMS is a system by which voice mails, fax and
e-mails (all three) can be received from one mail box using telephone
instrument, fax machine, mobile phones, internet browsers etc. Presently, six
companies have 13 licences to provide these services in eight cities.
Policy for Public Mobile Radio Trunk Service (PMRTS) in terms of NTP-1999
was announced on 1 November 200]. The new PMRTS licences are being
granted in digital technology only. PSTN connectivity is also pt'rmitted to
PMRTS service. Presently 15 companies are granted 42 licences to provide
these services in 25 cities.
Policy for grant of licence for Global Mobile Personal Communication by
Satellite (GMPCS) service in terms of NTP-l999 was announced on 2
November 2001. Detailed Information about these services is available on the
websites of the department.
Internet Services are opened for private participation since November 1998.
The licence fee was waived off up to 31 October 2003 and from 1 November
2003 it is only Re one per annum. Any Indian Registered Company is eligible
for getting the licence and no prior experience is required. Foreign equity up
to 100 per cent is permitted for Internet Services Providers (ISPs) without
gateways and upto 74 per cent is permitted for Internet Services Providers
(ISPs) with gateways. There are about 42 lakh Internet subscribers. As on
31 March 2004, 385 ISP licences were issued out of which 121 have been
pennitted to offer Internet Telephony service. Internet exchanges are set up
at STPI, NOIDA, Mumbai and Chennai to ensure switching of Internet traffic
within the country. One more exchange at Kolkata is expected to be
operational soon.


India 2005


Services like Tele-education, Tele-medicine, Tele-banking, Call Centre, etc, as

defined in NTP-1999, are covered under Other Service Providers (OSPs). Only
registration is required for specific service. There is no licence fee. Call
Centres/Business Process Outsourcing (BPOs) are permitted Internet and
IPLC connectivity on the same Local Area Network (LAN). Interconnectivity
of call centres of the same group of companies is also permitted for
redundancy and load balancing.
So far over 700 registrations are issued under the OSP category.
Total direct and indirect employment provided by Call Centres/BPOs is over
1.5 lakh. Major multinational companies like Microsoft, Oracle, IBM, GE, etc.,
have opened their Call Centres/BPOs in India. Revenue in this sector is
increast'd from Rs 2,400 crore in 1999-2000 to Rs 11,700 crore in 2002-03. The
annual growth rate of this scctor is over 67 per cent.

In order to upgrade the skills, knowledge and managerial effectiveness of the

Telecom personnel, BSNL has a set up of vast network of 45 training centres.
Starting at the apex level are, Advanced Level Telecom Training Centre
(Al,TIC) at Ghaziabad, Bharat Ratna Bhim Rao Ambedkar Institute of Telecom
Training (BRBRAITT) at Jabalpur and National Academy of Telecom Finance
and Management (NATFM) at Hyderabad followed by 42 Telecom Training
Centres at Regional, Circle and District levels for imparting training to the
personnel in technical, managerial, building science and finance branches of
Telecom services.
Advanced Level Telecom Training Centre, Ghaziabad was established by
the Government in 1975 with the assistance of United Nations Development
Programme (UNDP) and International Telecommunications Union (ITU). The
centre develops and imparts training in high-tech telecommunications and
modem management practices for the base, middle and top level engineers
and managers of the government and countries of South East Asia and ESCAP
region including English speaking countries of Far East, Middle East and
Africa. It functions as resource centre in providing developed course materials,
audio-visual instructional aids, computer-based training, software support
and training of trainers. Over 5,000 officers are trained annually in the centre
induding trainees from foreign countries.

The Telecommunication Engineering Centre (TEC) is an institution of

Department of Telecommunications with headquarters at New Delhi. It has
five regional centres at New Delhi, Kolkata, Mumbai, Bangalore and Hyderabad
and two sub-centres at Chennai and Pune. Its role and objectives are:
(i) Standardisation, Framing of Generic Requirements (GRs) and Interface
Requirements (IRs) for telecom products, equipment, systems, services and
networks; (ii) Technology forecast and assessment; (iii) Evaluation of new



products, equipment and systems; (iv) Technical support to the Telecom

Commission; (v) Preparation of National network plans; and (vi) Technical
and engineering support to the public sector organisations, viz., BSNL and

The Centre for Development of Telematics (C-DOT), an autonomous registered

society was set up in 1984 with the objective of developing a new generation
of switching systems relevant to the Indian conditions. Its sphere of operations
was widened in 1989 when it was entrusted with the development of
transmission systems. The C-OOT has developed a range of cost-effective
products with the built-in qualities of upgradability. The C-DOT is today
recognised as a pioneer in the field of rural telecommunications.
A wide range of products developed and technology transferred to many
indigenous manufacturers parallely, who supplied 25 million telephone lines
to the field constituting 87 per cent of the exchanges of varying capacities
and about 50 per cent of the total fixed lines in the Indian network. These
switches range from 256 lines to 40,000 line capacity.
For urban and semi-urban use, a family of Digital SWitching System
(DSS) from 1,500 line to 40,000 lines is developed, named as C-DOT DSS MAX
(Main Automatic Exchange). The C-DOT DSS MAX products have the proven
ability to serve as local, toll, transit and Integrated Local-cum-Transit (LeT)
switches. These exchanges can currently handle traffic of 8,00,000 call attempts
in an hour. In the area of transmission, C-DOT has developed low capacity
digital-radio technologies for inter-connecting rural and urban exchanges;
satellite systems for integrated voice and data communications, digital
multiplexes and optical communication systems. Other major technologies
developed and the products delivered include: (i) Setting up of Intelligent
Network-operational in over 200 sites offering popular services like Virtual
Card Calling; (ii) Network Management System (NMS) - capable of working
with all the technologies; being deployed in about 40 cities to enhance the
call success rate and decongestion of the route; (iii) New technology switches
requiring lesser power and space offering higher termination capacity; and
(iv) Access network systems, e.g., digital loop carrier, Asynchronous Transfer
Mode (AIM), etc.
The technologies deployed in the field are being supported during their
entire life cycles by removing obsolescence, adding new hardware and
software retrofits to provide continuously new features and services to
increase the utility and relevance of these systems in the competitive and fast
changing telccom environment. Besides, C-DOT supports more than 70
manufacturers for the various products and more than 650 vendors, who in
turn, support these manufacturers by way of components and subsystems.
Significantly, C-OOT products have proliferated throughout the country with
about 2.5 crore C-OOT exchange lines manufactured and supplied. C-DOT
products are exported to various countries.


India 2005


Wireless Planning and Coordination Wing (WPC), established in 1952, is the
national radio regulatory authority responsible for coordination and regulation
of radio spectrum usages in tht country. It is a nodal agency for all matters
concerning International Telecommunications Union (ITU), a specialised
agency of the United Nations for all telecommunication matters and Asia
Pacific Telecommunity (APT), an inter-governmental organisation of the
f('gion. WPC assisted by its Monitoring Organisation performs all functions
rplating to planning, coordination, assignment, regulations and administration
of the uses of the radio frequencies in India, clears site for installation of
wireless stations and issues licences for establishment, maintenance and
working of wireless stations in India, etc., under the Indian Telegraph Act,
1885. It is responsiblt for all matters concerning assignment of frequencies
for all terrestrial, Geo-stationary Satellitt> Orbit (GSO) and Non-GSO based
satellite networks, induding positions in GSO and necessary coordination in
this regard both at national and international levels. It also conducts
examinations to award certificate of proficiency for aeronautical and maritime
mobile services and for radio amateurs. The decision of Government to make
available basic as well as value added services by the private service
providers, increasl' of broadcast coverage as well as Information Technology
Sector with the liberalisation of economy has resulted in a very large demand
on the radio spectrum and orbit resources.
The total Foreign Direct Investment (FDI) received in the telecom sector from
August 1CJ91 up to January 2004 is Rs 9,872.5 crore. The FDI approved in
telecom sector during this period is Rs 57,260.14 crore which is second highest
next only to Power and Fuel sectors.


Bharat Sanchar Nigam Limited (BSNL) was incorporated on 15 September 2000.
It took over the business of providing telecom services of erstwhile Department
of Telecom Services, and Department of Telecom. Operations of the Ministry
of Communications (Department of Telecommunications), on an on-going
concern basis on a provisionally assessed value of Rs 63,000 crare from
1 October 2000. The authorised capital of BSNL is Rs 17,500 crore and prudup capital is Rs 12,500 crore comprising Rs 5,000 crore of equity and Rs 7,500
crore of preference capital. The entire issued and paid-up capital is held by
the government.
\ jJ./X) BSNL is man~ated to provide entire range of telecom services _~~pt
, 1ntefna...,!iQrl~UQ1)..g .,:i1~tance service and having physical jurisdiction of whole
cm:iiltry except De_~-=~'f::g~Eaf:-With a work force of approximately
3.6 lakh, BSNL is"one of the largest psll~ in the country and is contributing
Significantly to the national objective -as enshrined in New Telecom Policy



(NTP)-1999 for achieving telephone density of seven by March 200S and 15

BY-=-=Marai201O. Out of about s~_L'Lkh villages in the country, mort' than five
la~h have already been provided -with telephone facilitate by B~;NL.--<


BSNl's countrywide Cellular Service under brand of 'Cell One' was

launched on 19 October 2002 at Lucknow, followed by major citieS-of each
state. Within a short-span 'of about two year, it achieved subscriber base of
about 5.3 million and covered more than 1,642 cities across the country as
on 31 March 2004. The service also comprises of prepaid services with brand
name ~l' and includes host of value added services based on SMS, unified
messaging-platform and wireless application protocol ~W:':1'):. ._.".,..
BSNL is also deploying WLL elWipment in very large scale in its network
throughout the country and had achieved a subscriber base of about 9.6 lakh
as on 31 March 2004. The company also provides internet telephony'ServTCes
under the brand name of 'WEBPHONE' besides host of other services such
as In~e1Jigent network, b:oaa-b~~e~-~~~ess, internet services, etc.

The Mahanagar Telephone Nigam Limited (MTNL) came into existence on

1 April 1986 .as a company wholly-owned by the Government under the
Deparl!!l~!)1 of Telecommunications, Ministry of Communications. MfNl is
entrusted with the management, control and operations of telecom services
(excluding public telegraph service) in metropolitan limits of Mumbai (including
Kalyan, New Mumbai and Thane) and Delhi.
The last decade and a half has been an eventful period in the existence
of MTNL. There has been all-round development and growth and improved
operational efficiency. MTNL provides a host of telecom s7I"ices like. fixed
telephpne service, GSM based Mobile Service, CDMA based Q:Vireless~!!!.!-Cal
LoopJnternet and Leased Line services. The network of MTN[ is fully digital .
.~~ has 335 telephone exchanges in Delhi and 184 in Mumbai as on
31 May 2004. The total switching capacity is 6.62 million and MTNL is
operating 4.81 million direct exchange lines including cellular lines. MTNL
is also providing a total of 43,269 leased lines circuits and 21,177 ISDN
connections as on 31 March 2004.
MfNL started GSM based cellular mobile telephone service in February
2001 both in Delhi and Mumbai under the brand name 'DOLPHIN'.
Introduction of this service resulted in the decrease of tariffs by'the -private
operators by almost 50 per cent.~MTNL Jallnrhed--CDMA based limited
mobility service in both the cities during the year 2001-02 with the brand name
~J IDA'. In addition to the telephone service, MTNL is providing a variety
of IN based and Phone Plus Services. These include - premium rate service,
pre-paid service, virtual private network, universal number, televoting, etc.,
which are based on the intelligent network platform and phone plus services
~~ch ~.~m.p~t~ris.e..4m.~!:"!n_g_!l!~~ v~i~.~m,,!il, call forwarding, call waiting,
etc. Payments of bills by subscribers tlirough Internet, through Master Card
at selected petrol pumps and through automatic teller machines have also

India 2005


been introduced. MTNL has also launched various CRM services such as
automatic rent rebate, change number announcement service, customer service
management system, etc. i, MTN~ was listed on New York._S!~c~ange
(NYSE) durirlS tilt' year2OQI-02. IMTNL wast,he ~inth Indian Com_any-iiiO
. Second ITIdian PSU to be listed" on NYSE. 'As a Navratna -Company, it has
Joint Venture in Mis United Telecom Limited (lJ11.) with TCIL, VSNL for
providing CDMA service in Nepal. The authorised equity share capital of the
company is Rs 8OQ.crore, the paid-up capital is Rs 630 crore. The Government
now owns about ~.:~5 per cent of the MTNL paid up capital.
Videsh Sanchar Nigam Limited (VSNL) is privatised from 13 February 2002
with 25 per cent of Government equity being bought by Mis Panatone Finvest
Limited (lATA). The management control of VSNL is also passed over to
Mis Panatone Finvest Limited. Government still holds 26.12 per cent equity
in VSNL.
The Indian Telephone Industries (m) Limited, Bangalore was set up in 1948.
ITI has contributed more than 70 per cent of the existing telecom network
in the country. The company offers the entire range of telecom equipments
covering the whole spectrum of switching (large and rural switching),
transmission (digital, microwave fibre optic and back bone products), access
products I subscribers premises equipment. ITI offers the latest telecom solutions
and customised support to a variety of business by virtue of its strong inhouse R&D, select collaborations and strategic alliances with global leaders.
The company has consolidated its diversification into IT and IT-enabled
services by employing its vast telecom expertise and infrastructure.
Telecommunications Consultants India Limited (TCIL) set up in 1978 is now
a 'multi disciplinary telecom organisation' which provides complete telecom
solutions from concept to completion. The core competence of the company
is in network projects, software support, switching and transmission system.
cellular services, rural telecommunications, optical fibre based backbone
network, etc. The company is likely to~~!..jnto__b~JlJc ~!yi~ irl ~nya where
it has formed a joint venture company. The company has also fonneaa joint
venture in Nepal for operations of WLL communication there.


TCIL h(\s widespread operations in various regions I countries of Middle

East, South East Asia, Africa, Europe and Central Asia. Starting with an equity
of Rs 10 lakh in 1978, the company through issue of bonus shares has equity
of Rs 14.40 crore as on date. The company achieved a turnover of Rs 590.45
crore during the year 2002-03 with a net worth of Rs 387.42 crore.

9 Defence
INDIA'S defence policy aims at promoting and sustaining durable peace in
the sub-continent and equipping the defence forces adequately to safeguard
from any aggression.
The Supreme command of the Armed Forces vests in the President of
India. The responsibility for national defence, however, rests with the Cabinet.
The Defence Minister (Raksha Mantri) is responsible to Parliament for all
matters concerning defence of the country. Administrative and operational
control of the armed forces is exercised by the Ministry of Defence and the
three Service Headquarters.
The principal task of the Ministry of Defence is to obtain policy directions
of the Government on aU defence and security related matters and communicate
them for implementation to the Service Headquarters, Inter-Service
Organisations, Production Establishments and Research and Development
Organisations. It is also required to ensure effective implementation of the
Government's policy directions and the execution of approved programmes
within the allocated resources.
The Ministry of Defence consists of follOWing four Departments:
Department of Defence: The Department of Defence deals with Integrated
Defence Staff and the three Services and various Inter-Service Organisations.
It is also responsible for the Defence Budget, establishment matters, defence
policy, matters relating to Parliament, defence cooperation with foreign
countries and coordination of all activities. (ii) Department of Defence
Production : The Department of Defence Production deals with matters
pertaining to defence production, indigenisation of imported stores, equipment
and spares, planning and control of departmental production units of the
Ordnance Factory Board and Defence Public Sector Undertakings.
(iii) Department of Defence Research and Development: The Department
of Defence Research and Development deals with scientific aspects of military
equipment and logistics and the formulation of research, design and
development plans for equipment used by the Services. (iv) Department of
Ex-Servicemen Welfare: The Department of Ex-Servicemen Welfare, recently
created, is asSigned the responsibility of matters relating to Ex-Servicemen
including pensioners, Ex-Servicemen Contributory Health Scheme, Directorate
General of Resettlement and Kendriya Sainik Board and administration of
Pension Regulations relating to the three Services.

The Integrated Headquarters of the Ministry of Defence, viz, the Army

Headquarters, the Naval Headquarters and the Air Headquarters function
under the Chief of the Army Staff (COAS), Chief of the Naval Staff (CNS)
and the Chief of the Air Staff (CAS) respectively.


India 2005


Based on the recommendations of the Kargil Review Committee, the
Government decided to carry out a compiehenSlve- reView of tne-National
Security System in its entirety and the following structures have been
established which have since started functioning: (i) Integrated Defence Staff;
(ii) Defence Acquisition Council; (iii) Defence Intelligence Agency; (iv)
Strategic Forces Command; (v) Andaman and Nicobar Command. This is the
first tri-Service Command in the country.
Integrated Defence Staff: With a view to ensure higher degree of jointness
amongst the Services and attempt inter-service and intra-service prioritisation,
the Government has set-up the Integrated Defence Staff, headed by Chief of
Integrated Defence Staff functioning under Chiefs of Staff Committee (COSC).
The role of casc is to supervise the Integrated Defence Staff, to chair all
multi-Service bodies and the Defence Crisis Management Group (DCMG).
Chiefs of Staff Committee is also responsible for the coordination of long-term
plans, five-year plans and annual budgetary proposals of the three Services
in consultation and coordination with the Integrated Services Headquarters.
The Chief of Integrated DefenCt' Staff to Chairman, Chiefs of Staff Committee
(ClSC) renders advice to the Government on prioritisation, on developing
force lewIs through restructuring proposals, undertakes net assessment of the
national capability, formulates joint doctrines, conceptualises policy and
programmes on joint planning and military education, renders adviCt' for
evolving responses to non-conventional and conventional threats to national
security. ClSC also proposes measures for jointness amongst the Armed Forces
with a view to enhance efficiency and effectiveness.
Defence Acquisition Council: The Government has also set-up Defence
Acquisition Council headed by the Raksha Mantri for decision making in
regard to the totality of new planning process, which inter alia involves
according 'in principle' approval of capital acquisitions in the long-term
perspective plan and according 'in principle' approval for each capital
acquisition programme. The decisions flowing from the Defence Acquisition
Council are to be implemented by the following three Boards: (i) Defence
Procurement Board headed by the Defence Secretary; (ii) Defence Production
Board headed by the Secretary (Defence Production); and (iii) Defence
Research and Development Board headed by Secretary (Defence Research
and Development). These Boards have been entrusted with specific functions.
A Defence Acquisition Wing headed by Secretary (Acquisition) has also been
created to assist the Defence Procurement Board in its functioning.
Defence Intelligence Agency: The Government has set-up the Defence
Intelligence Agency (OIA) to coordinate and synergise the intelligence Wings
of the Services. The DIA is responsible for providing integrated intelligence
inputs to the higher echelons of Defence Management.
Strategic Forces Command: The Strategic Forces Command (SFC), created
to manage our strategic assets, has worked towards establishment of an



effective Command and Control Structure. The Command is working towards

operationalisation of the strategic assets of the country, based on the directions
given by the Nuclear Command Authority.
Andaman and Nicobar Command: The tri-5t'rvice Command for Andaman
and Nicobar (A&N) was established in October 2001. Thl' Commander-inChief of A&N Command exercises control over all force components of the
three Services and the Coast Guard located in Andaman and Nicobar islands.
Further, the three Service Headquarters, which were used to be attached
offices of Ministry of Defence are now integrated with the Ministry and known
as Integrated Headquarters of the Ministry of Defence.

The Army is headed by the Chief of the Army Staff. He is assisted by tht'
Vice-Chief of the Army Staff and seven other Principal Staff Officers, namely,
the two Deputy Chiefs of the Army Staff, Adjutant Generat Quarter-Master
General, Master General of Ordnance, Military Secretary and Engineer-inChief.
The Army is organised into operational Commands. Each Command is
under a General Officer Commanding-in-Chief who holds the rank of
Lieutenant General. The major field formations are Corps, Division and
Brigade commanded by a General Officer Commanding of the rank of
Lieutenant Generat a General Officer Commanding of the rank of Major
General and Brigadier, respectively. The static formations are Area, Independent
Sub-Area and Sub-Areas. An Area is commanded by a General Officer
Commanding of the rank of Major General and an Independent Sub-Area and
Sub-Area by a Brigadier.
The Army consists of a number of arms and services. These are
Armoured Corps, Regiment of Artillery, Corps of Air Defence Artillery, Army
Aviation Corps, Corps of Engineers, Corps of Signals, Mechanised Infantry,
Infantry, Army Service Corps, Military Nursing Service, Army Medical Corps,
Army Dental Corps, Army Ordnance Corps, Corps of Electrical and Mechanical
Engineers, Remount and Veterinary Corps, Military Farms Service, Army
Education Corps, Intelligence Corps, Corps of Military Police, Judge Advocate
General Department, Army Physical Training Corps, Pioneer Corps, Army
Postal Service, Territorial Army and Defence Security Corps. In addition, the
Army has its own Recruiting Organisation, Record Offices, Depots, Boys
Establishments and Selection Centres and Training institutions.


Si~ the major sea routes of the world. It has a coastline 0!l,512... ...
km with a total of 1,197 island territories in the Bay of Bengal and the Arabian


Sea. India has an Exclusive Economic Zone (EEZ) of 2.01 million sq. km. 90
per cent by volume India's trade C!Ul?U from
the seas. The resource rich EEZ provides 68 per cent of its oil production and


India 2005

fish production of 2.82 million tonnes. In addition, the entire import of oil
and gas comes by the sea. India's economy and therefore its development
is crucially dependent on the sea on account of the critical role of maritime
trade as well as oil and gas, fisheries and other mineral resources. The
responsibility for the defence and security of these maritime interests and
assets devolves upon the Indian Navy.
The Navy is headed by the Chief of the Naval Staff. He is assisted by
four Principal Staff Officers, namely, Vice-Chief of Naval Staff, Deputy Chief
of Naval Staff, Chief of Personnel and Chief of Material.
The Navy has thn.>e Commands, i.e., Western, Eastern and Southern with
their headquarters at Mumbai, Visakhapatnam and Kochi respectively. Each
Command is headed by a Flag Officer Commanding - in - Chief of the rank
of Vice-Admiral. The Western and the Eastern Commands are the operational
Commands, while the Southern Command is responsible for training. Indian
Navy has two fleets, the Western and the Eastern Fleet comprising ships and
aircraft, these fleets operate under the Western and the Eastern Commands
respectively. Goa and Arkonnam are the major Naval air bases. In addition,
Indian Navy also has air bases at Visakhapatnam, Port Blair and Car Nicobar
(Adaman and Nicobar Islands). The major naval bases are located in the three
Command Headquarters and other minor naval establishments are in Chennai,
Kolkata, Chilka, Lonavala and Jamnagar.
Indian Navy is a three-dimensional force consisting of sophisticated
missile capable warships and aircraft. The Indian Naval inventory includes
submarines aircraft carrier, guided missile destroyers, frigates and corvettes.
The Indian shipbuilding industry is very advanced and many of the warships
are indigenously designed and built. These indigenously built warships with
state-of-the-art equipment are of comparable capability with those constructed
by the advanced countries. Modem dockyard facilities of the Navy and the
PSU shipyards maintain and support the naval forces.

With the adoption of the provisions of United Nations Third Conference on
the Laws of the Seas, a need was felt to create peacetime Marine Force to
regulate maritime laws and safeguard national interests in India's Exclusive
Economic Zones of the surrounding seas. For this purpose the Indian Coast
Guard was created on 1 February 1977. The Coast Guard's broad Charter of
Duties includes: (a) safety and protection of off-shore installations and
artificial islands; (b) providing protection to fishermen in distress; (c) protection
of maritime environment; (d) assisting Customs in anti-smuggling operation;
(e) enforcement of Maritime Zones of India (MZI) Act; (f) safety of life and
property at sea; and (g) prevention and Control of Marine Pollution.
The Director General Coast Guard under the Ministry of Defence
exercises the general superintendence, direction and control of the Coast



The entire coastline of India and the national maritime zones have been
divided into three Coast Guard regions, namely, Western, Eastern and
Andaman and Nicobar Islands. The Regional Headquarters are located at
Mumbai, Chennai and Port Blair. The Coast Guard Regions are divided into
eleven Coast Guard Districts based in maritime states. In addition, there are
Coast Guard Station and Air Enclaves at various locations.

The Indian Air Force is today a modem, technology-intensive force equipped
with a wide array of_.!llQ.9~m_ aircraft .and suWrt.~QYipment. weapon
systems, communiCations and detection systems which gives it formidable
offensive and defensive capabilities. Since its formation on_8_.Qt2~r..1.932,
the Indian Air Force has co~e a long way from its modest beginning to
become a pre-eminent Air Force in the region and a formidable bulwark of
na~.l!al defence. The teeth of the Air Force are its air-superiority fighters,
multi-role combat and strike / air defence / reconnaissance aircraft. The Indian
Air Force believes in deterrence during peace and force projection during war.
In addition to peacetime training for traditional wartime roles, the Indian Air
Force also provides significant aid to civil authorities during natural calamities
_- - - ' -~
. ~_' - _.'
and internal disturbances.
The Chief of Air Staff at Air H':.adquarte!s i~ New Delhi is assisted by
the Vice-Chief of Air Staff, responsible for operations while the Deputy Chief
of Air Staff is responsible for acquisition and planning. The Director General
(Inspection and Safety) looks after assessment of operational readiness,
inspection and flight safety. Air Officer-in-Charge Maintenance is responsible
for the maintenance of the large inventory of aircraft and equipment. The Air
Officer-in-Charge Administration'looks after all administrative aspects of the
Air Force excepting matters connected with personnel administration. The Air
Officer-in-charge Personnel assists the Chief of Air Staff on all aspects of
personnel administration, including training.
The Indian Air Force has five regional and two functional commands.
The operational commands are the Western Air Command with its headquarters
in Delhi, the South Western Air Command with its headquarters in Gandhinagar,
the Central Air Command with headquarters at Allahabad. The Eastern Air
Command has its headquarters at Shillong and the Southern Air Command
has its headquarters in Thiruvananthapuram. The functional Commands are
the Training Command with its headquarters at Bangalore and the Maintenance
Command with its headquarters at Nagpur.
Recruitment and training of the personnel of Indian Air Force is broad
based and Specialised. The Service has opened its doors to induction of women
officers in all its branches including flying branch.
The IAF has served India with courage and effectiveness in peace time
and war. It forms the core of national defence and hence contributes towards
the stability and security of the region.

India 2005


The following are the commissioned ranks in the three Services; each rank
is shown opposite its equivalent in the other Service:



Air Force



Air Chief Marshal

Lieutenant General


Air Marshal


Rear Admiral

Air Vice-Marshal



Air Commodore



Group Captain

Lieutenant Colonel


Wing Commander


Lieutenant Commander

Squadron Leader



Flight Lieutenant



Flying Officer


The Armed Forces epitomise the ideals of service, sacrifice, patriotism and
India's composite culture. The recruitment to the Armed Forces is voluntary
and every citizen of India, irrespective of his caste, class, religion and
community is eligible for recruitment into the Armed Forces provided he
meets the laid down physical, medical and educational criteria. Recruitment
into the Army is carried out according to Recruitable .Male Population (RMP)
of each state.
Eligible women are recruited as officers on Short Service Commission basis
in the following branches of the Armed Forces: ARMY: EME Corps, Signals
Corps, Education Corps, Ordnance Corps, Service Corps, Military Intelligence
Corps and Judge Advocate General's Branch. NAVY: Engineering (Naval
Architects), Logistics, Law, Education, Air Traffic Control. AIR FORCE :
Flying, Aeronautical Engineering (Electronics), Aeronautical Engineering
(Mechanical), Education, Administration, LOgistics, Accounts and Meteorology.
Recruitment of Commissioned Officers in the Armed Forces is mainly done
through the Union Public Service Commission (UPSC). Recruitment is made
directly through the respective Recruiting Directorates for the Army, the Navy
and the Air Force for Technical Branches, Women Special Entry Scheme, Nee
Special Entry Scheme and service entries.



The UPSC holds an all-India competitive examination, known as the

Combined Defence Services Examination (CDSE)' twice a year. University
graduates including those studying in the final-year, are eligible to appear
in the examination. Successful candidates are put through the Services
Selection Board (SSB) intervil'ws. Finally selected candidates join the respective
training academies, viz., the Indian Military Academy (IMA) for the Army,
the Naval Academy for the Navy and the Air Force Academy for the Air Force.
The UPSC also holds an examination for entry into the National Defence
Academy (NDA) twice a year. Candidates on completion of the 10+2
examination or while in the 12th standard, are eligible to compete in this
examination. Successful candidates on completion of their NDA course are
sent to the respective Service academies for their pre-commission training.
Recruitment through Services Selection Board / Air Force Selection
Board is made for the following branches of the Army, Navy and Air Force
: ARMY: All Arms and Services except Army Medical Corps and Army Dental
Corps; NAVY: Electrical Engineering, Engim.-ering (Naval Architects), Logistics,
Law, Education, Air Traffic Control, Executive, Hydro, Naval Armament
Inspection; AIR FORCE: Flying Pilot, Aeronautical Engineering (Electronics),
Aeronautical Engineering (Mechanical), Education, Administration, Logistics,
Accounts and Meteorology.
Final/pre-final year students in the notified engineering disciplines are
eligible to apply for commission into the Technical Arms/ Services of the
Army under the University Entry Scheme. Finally selected candidates are
required to undergo one-year training at IMA, Dehradun, before being
Engineering graduates from notified disciplines of Engineering including
those studying in the final-year are eligible to apply for Short Service
Commission into Technical Arms/ Services through Short Service Commission
(Technical) Entry. Selected candidates are commissioned after ll-months
training at Officer Training Academy (OTA), Chennai.
Medical graduates from the Armed Forces Medical College, Pune are
directly inducted as permanent Commissioned Medical Officers in the Armed
Forces. For recruitment of Regular Commissioned /Short Service Commissioned
Medical Officers from the Graduates/ Post-Graduates of Civil Medical
CoUeges, the Director General of the Armed Forces Medical Services conducts
an all-India competitive examination.
University graduates possessing NCC 'e Certificate with minimum 'B'
grade and 50 per cent marks in graduation are eligible to apply for
commission into the Navy and Air Force as Regular Commissioned Officers
and as Short Service Commissioned Officers in the Army. These graduates
are exempted from appearing in the CDSE conducted by the UPSC and
selected through the SSBs.
The Government has approved the creation of a 6,000 strong Support
Cadre of Special Commissioned Officers to be filled-up by eligible JCOs and


India 2005

ORs. Under this entry, serving JCOs/NCOs/ORs in the age-group of 30-35

years, with an Army Senior School Certificate Pass (Class XI CBSE Pattern)
or any other recognised Technical or Non-1echnical examination/ certificate/
diploma of one-year or more duration passed from school! Board/ Institution
rt.>cognised by Government of India after doing matric or equivalent
qualification, will be eligible for commission after screening/ selection through
Service Selection Board and a Medical Board. They will retire at the age of
57 years after serving about 20-25 years as officers. The scheme will not only
improve the career prospects of the existing JCOs/NCOs/ORs but will also
help in making up the deficiency of officers in the Army to a considerable
Qualified 10+2 CBSEI State Board candidates with PhYSiCS, ChemiStry
and Maths are eligible for commission in the Army under the Technical Entry
Scheme (10+2 TES). On selection, they undergo one-year basic training at IMA
Dehradun and thereafter undergo three-years Engineering degree course. On
being commissioned they are further put through one-year specialised
training. Though technical entrants, they are liable for commissioning into any
Arm/Service of the Army.
Recruitmtmt to the Army is carried out according to the Recruitable Male
Population (RMP) of each State. The RMP of a state is reckoned to be 10 per
cent of the male population of that State.
Under the revised system introduced with effect from 1 April 1998,
recmitment of jawans in the Army is carried out through open recruitment
rallies planned well in advance, keeping in view the geographical,
demographical and topographical considerations. Advance publicity is made
of an ensuing rally in a particular area / district.
There are approximately 184 trades for Persons Below Officer Rank
(PBOR) in the Army grouped into 'X', 'Y' 'Z' category. The educational
qualification is non-matric for 'Z' group trades, matric and 10+2 standard for
'Y' group trades and Diploma / 12th / Graduation for 'X' group trades. In
addition, dispensation in educational qualification for enrolment to Soldier
General Duty (matric entry) is given to certain select regions/ classes/
communities due to lack of education facilities and socio-economic factol"i.
Recruitment of Airmen in the Air Force is done through a centralised
selection system on all-India basis. Unmarried male Indian citizens irrespective
of caste, creed and religion and domicile (subject of Nepal) are eligible for
recruitment to the Indian Air Force provided they meet the laid down
physical, age and educational criteria.
Recruitment of Sailors in the Navy is carried out by Naval Recruitment
Organisation of the Directorate of Manpower Planning and Recruitment at
Naval Headquarters for the following entries: (a) Direct entry artifirers with
three years diploma (DEDH), (b) Artificer Apprentices (AA) - (10+2), (c)



Matric Entry Recruits (MER), (d) Non-Matric Entry Recruits (NMER), (e)
Direct Entry Petty Officers (outstanding sportsmen). Recruitment into the
Navy is carried out on all-India basis.

The Territorial Army is a voluntary, part-time citizen's Army. The c.onceptual
framework for the Territorial Army is based on the fundamental idea that
it should exist for war-time employment, and should be maintainable at the
lowest cost during peace time. The concept encompasses the employment of
disciplined, dedicated and a low-cost force of gainfully employed citizens
from all walks of life to supplement and augment the resources of the regular
Army. These citizens on joining the Territorial Army undergo a short period
of rigorous training, which makes them reasonably competent soldiers.
Subsequently, they join their units for two months every year for refresher
training, to keep in touch with the art of soldiering.
Infantry Battalions (TA) have been embodied for operational services
since the raising of the force. They participated in 1962, 1965 and 1971 conflicts
and remained embodied continuously for long durations. In recent times, a
maximum of 22 units were embodied in 'Operation Rakshak' and 'Operation
Vijay'. In Operation Parakram, all 31 Infantry Battalions (TA) were embodied
and continue to be embodied to date since December 2001 for ongoing
Counter Insurgency I Counter Terrorism (CI/Cf) Operations. Infantry Battalions
(TA) have also been embodied for counter insurgency operations in North-East
and Jammu and Kashmir.
Units of the Territorial Army have participated in all wars alongside the
regular Army. They have been utilised to maintain essential services like
railways, oil supply and medical (departmental units) during emergencies.
Some units have been organised for national development tasks in fields like
ecology and afforestation and they have rendered commendable services.
The National Cadet Corps (NCC) estab~~!t_~~_~~ 15 July 1948 has emerg_ed
as the sii\gie largest structured you,ili ITl_9Y.e.!1le.!l_t 10_Ind!!. It has a sanctioned
strength of 13 lakh boys and girls in the Senior and Junior Divisions in the
Army, Navy and Air Force Wings.
The Directorate General, NCC New Delhi controls and oversees various
activities of the NCC through 16 NCC Directorates spread across the c~ntry.
There is a Central Advisory Committee for the NCC to provide overall policy
guidelines. The NCC is manned by the service personnel, whole-time lady
officers, teachers I professors and civilians. One lecturer I teacher in each
educational institution is appointed as Associate NCC officer.
The NCC whose motto is 'Unity and Discipline' has the following aims:
(a) to develop character, comradeship, discipline, leadership, secular outlook,
spirit of adventure and the ideals of selfless service amongst the youth of the
country; (b) to create a human resource of organised, trained and motivated


India 2005

youth to provide leadership in all walks of life and always available for the
servict.' of the nation; (c) to provide a suitable environment to motivate the
youth to takl' up a career in the Armed Forces.

It is premier All Arms Tactical Training Institution for officers and performs
important functions of evaluation of concepts and doctrines in the fields of
tactics and operational logistics. The institution was earlier known as College
of Combat, Mhow and has been re-designated as 'Army War College, Mhow'
from 1 January 2003.

The Infantry School, Mhow is the largest and the oldest military training centre
of the Indian Army. The institution is responsible to develop the complete
spectrum of tactical drills and concepts pertaining to infantry operating in
varied terrain and environment and introduce them from time to time. This
premier institution also trains the National Shooting Team under the aegis
of Army Marksmanship Unit (AMU) which is part of Infantry School.
The Junior Leaders Wing, Bclgaum is part of Infantry School, Mhow and trains
junior officers and junior leaders in sub-unit level in tactical and special
mission techniques to enable them to carry out assigned operational missions
in varied terrain conditions under severe stress and strain.
The Institute of Defence Management (10M), Secunderabad was established
in June ]970 to impart modem, scientific management training to the Armed
Forces Officers. The IDM was renamed as College of Defence Management
(COM) in 1980. The College has trained over 5,000 officers of the rank of Major
to Major General and equivalents of the three Services through its on-campus
programmes. It has also given exposure in defence management to a large
number of officers through external capsules. Officers from Para-Military
Forces, Ministry of Defence, Research and Development Organisations and
friendly foreign countries also attend various on-campus programmes.
The Defence Services Staff College (DSSC), Wellington is a premier tri-service
training establishment imparting training to middle level officers (Majors and
equivalent) of the three wings of Indian Armed Forces, friendly foreign
countries and Indian civil sel'llices.
The National Defence Academy (NDA), Khadakwasla is a premier InterService training institution where future officers of Armed Forces are trained.



The training involves an exacting schedule of three years before the cadets
join their respective Service Academics, viz., Indian Military Academy, Naval
Academy and Air Force Academy.
The Indian Military Academy (IMA), Dehradun transforms young men into
wurageous, dynamic and erudite young officers of integrity, who are to bear
the brunt of battle, or hardship whilst guarding the Nation's frontiers. The
1M A established in 1932, caters training to cadets for c;ommission into the
The Officers Training Academy (OTA), Chenoai moulds young men and
women into courageous, dynamiC and honourable officers of the Indian Army.
The training at the OTA aims at inculcating in the Gentlemen and the Lady
cadets (GCs/LCs) moral values, leadership traits, mental and physical
prowess, a spirit of adventure and a will to win.
High Altitude Warfare School: The High Altitude Warfare School (HAWS),
Gulmarg is a unigue training establishment imparting specialised Mountain
Warfare and Winter Warfare Training to Indian Army personnel.
Armoured Corps Centre and School : The Armoured Corps Centre and
School (ACCS), Ahmednagar is a premier institution of the Army. It imparts
training pertaining to employment of mechanical forces in battle and
development of concepts for future battle.
School of Artillery : School of Artillery, Deniali is a premier institution of
the Army and imparts effective traini:1g, evaluation of new equipment for
induction and development of new concepts/ doctrine for application of
artil1ery fire.
Army Air Defence College: The Army Air Defence College (AADC),
Gopalpur imparts training for provision of effective Air Defence Artil1ery
protection to ground forces against long and medium altitude enemy air
attacks and also to preserve specified tactical and strategic vital areas and
pivotal points from critical danger and destruction from enemy air attacks.
College of Military Engineering: The role of College of Military Engineering
(CME), Pune encompasses three aspe~s, Le., training, advisory. projects
research and experimentation.
Military College of Telecommunication Engineering : The Military' College
of Telecommunication Engineering (MerE), Mhow is a premiere training
institute of the Corps of Signals. A variety of courses catering for the training
needs in Information Technology and Communication for the Indian Army
are conducted at MerE. A number of courses are attended by students from
friendly foreign countries and Para-Military Forces also.
Counter Insurgency and Jungle Warfare (CIJW) School : Popularly known


India 2005

as CIJW School, Vairengte (Mizoram), this premier institution imparts training

as per its motto 'Fight the Gureilla like a Gureilla'. The institution has risen
to be nodal agency for imparting counter insurgency training.
Junior Leader's Academy <ILA), Bareilly and Ramgarh: The Junior Leader's
Academy (JLA), Bareilly and Ramgarh conduct institutionalised leadership
training for Junior Leaders comprising of Junior Commissioned Officers and
Non-Commissioned Officers of the Army.
Army Supply Corps (ASc) Centre and College : The ASC Centre and
College, Bangalore imparts training to Officers, personnel below officer rank
of Army Service Corps and other arms and services indicating personnel from
foreign countries in various disciplines of Suppliers, Fuel, Oil and Lubricants,
Mechanical Transport, Animal Transport and Air dispatch. The Centre also
trains recruits for induction into service into Army Service Corps.
Army Medical Corps (AMC) Centre and School : The AMC Centre and
School, Lucknow conducts from basic to advance courses for Army Medical
Corps and Military Nursing Service Officers. The Centre also trains recruits
for induction into service into Army Medical Corps.
College of Materials Management (CMM), Jabalpur : The College of
Materials Management (CMM), Jabalpur is the hub centre of all logistics
courses for Army. It runs courses like advance material management, higher
mention course and quarter master courses for officers, JCOs and NCOs. It
also imparts basic training to store keepers technical.
Military College of Electronic and Mechanical Engineering : The Military
College of Electronics and Mechanical Engineering (MCEME), 5ecunderabad
(Andhra Pradesh) is a premier institution of technical education in the Army.
The College was awarded 150-9001 for excellence in training and also won
the coveted Golden Peacock National Training Award-1997 as well as Golden
Peacock National Quality Award.
Remount and Veterinary Corps (RVC) Centre and School : The RVC Centre
and School, Meerut Cantt, imparts basic military and technical training to
young veterinary graduates on commission and to various technical tradesmen
of the corps like Dressors, Riders, Ferriers, Army Dog trainers and lab
attendants. The Centre also trains recruits for induction into service into
Remount and Veterinary Corps Centre and School.
Army Education Corps (AEC) Training College and Centre : The AEC
Training College and Centre, Pachmarhi is a Category 'X establishment, a
Regimental Training Centre for AEC personnel and an Autonomous College
affiliated to Barkatullah University, Bhopal.
Corps of Military Police (CMP) Centre and School: The CMP Centre and
School, Bangalore imparts basic military training to all personnel enrolled in
Corps of Military Police and also conduct courses for officers on deputation
to the corps.



Army School of Physical Training : The Army School of Physical Training

(ASPT), Pune is a class' A' Establishment running physical and allied Sports
Training Course for Army personnel. central police organisation, paramilitary
forces and friendly foreign countries to train instructors capable of imparting
physical training and sports coaching at appropriate level.
Army Airborne Training School : The Army Airborne Training School
(AATS), Agra imparts training in aerial delivery and air transportation of men
anci material. It is also responSible for carrying out Research and Trial
pertaining to air portability and para dropping of all types of equipment.
Institute of National Integration: The Institute o( National Integration (INI),
Pune imparts training to Officers, Personnel Below Officer Rank and Religious
Teachers in a phased manner, highlighting rich cultured heritage, spirit of
tolerance and national amity.
Institute of Military Law: The Institute of Military Law (IML), Kamptee
imparts training to officers of Judge Advocate General Branch as well as other
arms and services in military and allied law.
Military School: The five Military Schools in the country at Aimer, Bangalore,
Belgaum, Chail and Dholpur are affiliated to CBSe. The Military Schools
admit boys in class VI, based on an all-India Entrance Examination. The aim
of Military Schools is to impart quality education to enable the students to
take All-India Secondary School Examination and Senior Secondary Examination
conducted by CBSE and also to facilitate their entry into the National Defence
Army Sports Institute : To restore national pride in the hearts of our fellow
countrymen and to project a winning image of the Army, the Government
has approved the establishment of an Army Sports Institute (ASl) at Pune
and Army Sports Nodes in selected disciplines at various places in the country.
Appropriate funds have been earmarked for state-of-the-art infrastructure and
equipment coupled with food habitat, foreign exposure and training under
foreign coaches.
Rashtriya Indian Military College : The Rashtriya Indian Military College
(RIMC), Dehradun was founded on 13 March 1922 with the object of
providing necessary preliminary training for boys of Indian birth or domicile,
Wishing to become officers in Indian Arm~ Forces. The institution now serves
as a feeder institution to the National Defence Academy, Khadakwasla (Pune),
wherein cadets of the Army, Navy and Air Force receive their initial l!aining.
Sainik Schools : The scheme to establish Sainik Schools was started in 1961
to broad-base recruitment and remove regional imbalance in the officer's cadre
of the Defence Forces. Sainik Schools are a joint venture of the Central and
State Governments. At present, 18 Sainik schools are being administered by
Sainik Schools Society. These schools are affiliated to Central Board of
Secondary Education and follow 10+2 pattern in science stream only.
National Defence College: The National Defence College (NOC) inaugurated

India 2005


on 27 April 1960 is the only institution in the country that imparts knowledge
on all aspects of national security and strategy. Senior Defence and Civil
Service Officers participate in a 47-wl'ek comprehensive programme of
national security and strategy.
Army Cadet College : Army Cadet Colltge (ACq, Dehradun is a Wing of
IMA which caters for training of service cadets selected for commission. The
academic format is similar to the NDA on the lines of 10+2+3 and the syllabus
is common. On completion of the course, these cadets also qualify for a B.A.
or BSc. degree, recognised by the Jawaharlal Nehru University.

The primary role of the Department of Defence Production is to equip the
armed forces of the country with the latest equipment and weaponry systems
and to contribute to modernisation of the armed forces. This task is being
undertaken through 39 ordnance factories and eight Defence Public Sector
There are 39 ordnance factories under Ordnance Factory Board (OFB). One
more ordnance factory at Nalanda (Bihar) is also being established. These
factories play a vital role in equipping the armed forces with weapons,
ammunitions, tanks, etc. The objective of the organisation is to meet the
requirements of the armed forces, particularly of the army for conventional
lethal and non-lethal hardware. Adequate and timely supply of defence stores
of stringent quality specification at minimal cost is the primary consideration.
The factories produce military transport vehicles, infantry combat vehicles,
armoured vehicles, optical and opto-electronic instruments, field cables,
summer and winter uniforms, tentages, parachutes, miscellaneous leather
goods, float bridges, general stores, civil blasting explosives, etc. Facilities also
exist for design and manufacture of captive special purpose machine tools
for production of arms and ammunition components.

Besides supply of arms, ammunition and other items to the Armed

Forces, the needs of police and the para-military organisations are also catered
to. Items an> also produced for the Railways, Public Sector Undertakings and
other Government departments.
The major functions of Supplies Wing are: (i) Indigenisation and function as
the nodal wing of the Ministry of Defence for matters relating to purchase
policies; (ii) policy issues relating to Private Sector Participation in Defecne
Production and consideration of proposals from Private Industry for grant of
Industrial License for Defence Production; (iii) Quality Assurance of Defence
Equipment and Cadre Control of DGQA Establishment, through Directorate
General Quality Assurance; (iv) Standardisation and Codification of Defence
Equipment; and (v) Administrative Control of Bharat Dynamics Limited(BDL).



In order to encourage civil industry for indigenous development of

defence stores, a scheme of National Award for excellence in indigenisation
was introduced in the year 1993-94. To help the civil sector familiarise itself
with the requirement of Armed Forces, permanent sample rooms are maintained
in four metropolitan cities.
In so far as the task of development of defence supplies is concerned,
the value of tht' development of defence supply orders placed on the private
sector has risen from apprOXimately Rs 60 crore per annum during the early
eighties to around Rs 200 crore per annum. During the year 2003-04, 606 items
worth Rs 210 crorc (approx.) were indigenised.
In May 2001, Government decided to open up Defence Industry Sector
for participation by Indian Private Companies with FDi up to 26 per cent
of the equity, both subject to licensing. So far, the Department of Industrial
Policy and Promotion has issued 16 Letters of Intent / Industrial licence in
consultation with Ministry of Defence.
The Defence Public Sector Undertakings (DPSUs) were structured with a
flexible form of operation, decentralised management and adequate operational
autonomy. Eight Public Sector Undertakings currently function under the
Department of Defence Production. These are Hindustan Aeronautics
Limited(HAL), Bharat Electronics Limited (BEL), Bharat Earth Movers
Limited(BEML), Mazgaon Dock Limited (MDL), Garden Reach Shipbuilders
and Engineers Limited (GRSE), Goa Shipyard Limited(GSL), Bharat Dynamics
Limited (BDL) and Mishra Dhatu Nigam Limited (MIDHANI).
The Hindustan Aeronautic8 Limited (HAL) was set-up in 1964 with its
corporate office at Bangalore. The company has 16 divisions and nine R&D
centres located in six States. It is the largest public sedor undertaking under
the Department of Defence Production. Originally incorporated as a private
limited company, it was converted into a public limited company on 10 July
1995. The HAL's products range consists of aircraft, engines, accessories,
avionics, structures for aerospace vehicles, satellites and industrial and marine
gas turbine engines. The Divisions of HAL have ISO 9001 /2000 accreditions.
Eight of the divisions have also obtained ISO 14000-1996 environment
management system certification. The HAL has produced over a period of
time 11 types of aircrafts of its own design and 13 types of aircrafts under
license covering small aircraft, fighters, trainers, helicopters and their
corresponding engines, avionics and accessories. The Company has produced
as of now, about 3,500 aircraft and 3,540 engines and has also overhauled
about 7,960 aircraft and 26,800 engines. The Company has designed and
developed different variants of Advanced Light Helicopter(ALH) in Military
and Utility versions. The HAL has exported its goods and Defence Services
to the countries like USA, France, UK, Japan, Oman, Mauritius, Malaysia,
Nepal, Namibia, etc. The HAL has established joint ventures BAe-HAL, IndoRussian Aviation Ltd., with international participation. Further strategic
alliances are being worked out with other international companies such as


India 2005

Snecma, Eurocopter, Sukhoi Design Bureau, etc. HAL is also working on

developing long-term partnership with the Indian industry.
Bharat Electronics Limited (BEL) established in 1954, with its corporate
office at Bangalore, has nine units in the country. It is engaged in the design
development and manufacture of sophisticated state-of-the-art electronics
equipment / components for the use of defence services, para-military
organisations and other governmental users like All India Radio, Doordarshan,
Department of Telecommunications, Police Wireless, Meteorological
Department, etc. BEL is also the premier indigenous source for professional
electronic equipment. Nine Units/SBUs were certified for ISO 9000: 2000
during the year 2003-04. With this all Units/SBUs (except Pune and
Machilipatnam Units) have been certified for QMS. Six Units/SBUs were
certified for ISO 14000: 1996 during the year 2003-D4. With this the Company
has a total of 10 EMS certifications, out of the planned 17. The balance seven
are planned in the current financial year.
The Bharat Earth Movers Limited (BEML) was established in May 1964 and
commenced its operations from January 1965. With the disinvestment of
shares, Government is still the major shareholder in the Company with a
holding of over 61.23 per cent of equity shares as of end March 2004.
The BEML has three manufacturing divisions located at Bangalore, Kolar
Gold Fields (KGF) and Mysore. All the production units of BEML are equipped
with necessary general purpose machines and special purpose machines like
heavy duty lathes, CNC boring machines, computer numerically controlled
(CNC) machines, CNC bevel generating systems, flexible manufacturing
system, heavy and large size fabrication facility, welding robots, etc., to
manufacture transmission and axles, hydraulic control valves, cylinders and
pumps, diesel engines, railway coaches, rail buses, railway wagons, Alternating
Current Electrical Multiple Units(AC EMUs), heavy duty all-terrain multi-axle
trucks, earth moving machines and tracked military vehicles like Armoured
Recovery Vehicles, self-propelled gun, tanks, and other military vehicles like
Heavy Recovery Vehicles, bridge laying tank, truck-based mobile bridge
system, mounted gun system on truck chassis, rocket launcher systems among
Garden Reach Shipbuilders and Engineers Limited (GRSE) was incorporated
with its corporate office at Kolkata as a joint stock company in 1934, under
the name M / s Garden Reach Workshop Limited. The Government acquired
the company in 1960. The GRSE builds and repairs warships and auxiliary
vessels for the Navy and the Coast Guard. Its product range includes frigates
carrier and oil tankers, patrol vessels, attack craft, high technology ship bome
equipment, portable Bailey type steel bridges, tubing pumps for the agricultural
sector, marine sewage treatment plants, diesel engines, etc. Chemical Laboratory
of GRSE was certified by the National Accreditation Board for Testing



Goa Shipyard Limited (GSL) located at Vasco-da-Gama primarily builds

small and medium size Naval vessels and repair/re-fit ships/vessels. The
company has undertaken construction/re-fit of variety of vessels for the
Indian Navy and the Coast Guard as well as for the non-defence sector. Its
production includes Advanced off-shore patrol vessels, VPY, FPV and XFAC.
The Bharat Dynamics Limited (BDL) was set-up in 1970 with corporate office
at Hyderabad for manufacture of guided missiles. It possesses the capability
to piOduce advanced guided missile systems. The company has two units at
Kanchanbagh and Medak. The company is the prime production agency for
missile weaponry systems. BDL has been accorded ISO 9002 certification.
Mishra Dhatu Nigam Limited (MIDHANI) located at Hyderabad was
incorporated on 20 November 1973 with the primary objective of ushering
in self-reliance in special metals and alloys for strategic sectors like Defence,
Space and Atomic Energy as well as hi-tech Commercial Industries in India.


Defence Research and Development Organisation (DROO) was formed in 1958
by amalgamation of then already functioning Technical Development
Establishments (TOEs) of the Indian Army and the Directorate of Technical
Development and Production (DTDP) with the Defence Science Organisation
(DSO). DRDO laboratories are engaged in ever-widening spectrum of Defence
Technologies covering various disciplines like aeronautics, armaments,
electronics, combat vehicles, engineering systems, instrumentation. missiles,
advanced computation and simulation. special materials, naval systems, life
sciences and agriculture, to name a few.
The Department of Defence Research and Development came into
existence in 1980. It is dedicated to the mission of progressive enhancement
of self-reliance in defence systems and state-of-the-art defence technolOgies.
To facilitate accomplishing this mission. there is a mission-mode structure
headed by the Scientific Adviser to RaksluJ Mantri, who is also the Secretary,
Department of Defence Research and Development an~ Director General,
Research and Development.

DRDO has developed and led to production of a large number of defence

systems, equipment and other products as per operational requirements of
the Armed Forces projected from time to time.
Maiden flight of Technology Demonstrator (lDl) of Light Combat
Aircraft (LeA) 'TEJAS' took place on 4 January 2001 at Bangalore. Since then.
two technology demonstrators and prototype vehicle (PV1) of LeA has
completed 237 flight tests, till 30 June 2004. The equipping of the fourth Tejas
aircraft (PV2) is in progress, which is of the production standard. Design
activities on LCA Trainer Variant LCA (PV5), ensuring commonality with LCA
(Navy), has been initiated.

The I<averi engine for the Tejas is undergoing development trials. As

:>n date two Kabini prototypes (CliO) and five I<averi engine prototypes


India 2005

(K1 to KS) have bt_>en built for engine testing apart from various modules and
components manufactured for their testing in the rigs to assess their
aerodynamic and structural integrity performance.
The limited series production of Pilotless Target Aircraft (PTA) 'Lakshya', a reusable aerial target system, remotely operated from ground to
provide training to gun and missile crew and to air defence pilots is in
progress for training of all the three Services. Samyukta Communication
Segment (an electronic warfare system) has been handed over to Army.
During the financial year 2003-04, 59 new projects with an aggregate
value of Rs 1,657 lakh (approx) were researched upon in various academic
institutions in the country. Grant-in-Aid worth Rs 30 lakh were also provided
to various scientific and academic institutions and societies for holding
national/international conferences / seminars / workshops.

The Directorate General of Resettlement (OCR) under the Ministry of Defence
looks after matters connected with the resettlement and welfare of Exservicemen (ESM) and their dependents. The Ex-servicemen population is
mainly concentrated in the States of Uttar Pradesh, Punjab, Haryana,
Maharashtra, Kerala, Tami] Nadu, Rajasthan and Himachal Pradesh. A
Kendriya Sainik Board (KSB) under the Chairmanship of the Raksha Mantri
lays down general policies for the welfare of ESM and their dependents, for
the administration of welfare funds, and also for coordinating the work of
the Sainik Boards in the country. Similarly, at the state level the Rajya Sainik
Boards (RSBs) and at the district level the Zila Sainik Boards (ZSBs) have been
established. The Central Government bears 50 per cent of expenditure
incurred on the organisations of RSBs while the remaining expenditure is
borne by the respective State Governments.

With a view to resettle / re-employ Ex-Servicemen, the Central Government
arranges the following: (a) Training programme to re-orient retiring defence
personnel towards civil employment; (b) Reservation of posts for providing
employment opportunities in government/ semi-government/public sector
organisations in C and D posts; and (c) Schemes for self-employment.

Vocational training for preparing both Ex-servicemen and retiring service
personnel for their resettlement in civil life is one of the major functions
entrusted to the Directorate General of Resettlement. The emphasis of the
programmes run by the DGR has been to organise employment/selfemployment oriented training programmes.
Officers Training : All officers are entitled to avail resettlement training
facility. Specially designed courses are organised in diversified fields for
officers of three Services. The avenues covered by this training include



lnfonnation Technology, St'CUrity, tourism, tmtrepn.'tll'urship development, materidl

management, agro-bast..-d industries, seafaring, business managemtmt, eh.:.
Personnel Below Officer Rank (PBOR) : To prepare rl'tiring defence
personnel for employment/ self-employment and to ensun' their smooth
transition to second can.>er, ddburate n.>settiemcnt training programmes are
being conducted. This is in thl' form of reorientation courses both technical
md non-technical in various vocations to facilitate career transition. This
traming is organised with various government, semi-govemmtnt and private
institutions spread allover the country. The Government departments and 27
PSUs provide 'On-the-Job Training' in different trades.
The Central and State Government.. provide a number of concessions to ExServicemen for their re-employment in Central/State Government posts.
These include limited reservation of C & LJ posts I relaxation in age and
educational qualifications, exemption form payment of application I examination
fees, priority employment to disabled ex-servicemen and dependants of
deceased service personnel on compassionate grounds.
The Central Government has reserved 10 per cent of Group 'C' posts and
20 per cent of Group '0' posts for ex-servicemen. Central Public Sector
Undertakings and Nationalised Banks provid(_' 14.5 per cent reservation in
Group 'C' and 24.5 per cent in Croup '0' posts to them. 10 per cent posts
of Assistant Commandants in Para-Military forces are also rt'served for
ex-servicemen. In addition, most of the State Covemments, except for the
StatL'S of Arunachal Pradesh, Assam, Bihar, J&K, Kerala, Andhra Pradesh and
Meghalaya, are pnwiding reservations to ex-servicemen in the State Government
jobs. It has, however, not been possible to have statutory backing to the
reservations being provided to them, inter alia, due to the overall ceiling of
50 per cent imposed by the Supreme Court and 49.5 per cent reservation
already having been provided in the government jobs for SC I ST / OBe.
Therefore, the reservation being provided to ex-servicemen is not of vertical
nature as in the case of reservation for SC/ST lOBe. It is of horizontal nature,
which implies that ex-servicemen selected against the vacancies reserved for
them are subsequently adjusted against the relevant category, i.e., SC/ST IOBC
or General to which they belong. There is also no carry forward of unfilled
reserved vacancies under horizontal vacancies.

Ex-servicemen have been provided age relaxation to the extent of military

service plus three years against reserved/1lIl1'e8efVed vacancies in Groups 'C'
and '0' posts. The age relaxation is restricted to five years in Groups' A' and
'6' posts which are filled by competitive ewniRation.

have been granted relaxation in prescribed educational


India 2005

qualifications. Army Class I, II and III certificates have been equated to eighth
class, sixth class and fourth class respectively in the civil field. For reserved
vacancies for which the minimum educational qualification is matriculation,
an ex-serviceman, who has put in at least 15 years of service and has passed
Army class I or equivalent is considered eligible. For the reserved jobs, for
which the minimum ('ducational qualification is graduation, an ex-serviceman
who has put in at least 15 years of service in the Army and has passed
matriculation or equivalent examination is considered eligible.
The Directorate General of Resettlement (DGR) registers/sponsors Security
Agencies for providing Security Guards to various Public Sector Undertakings
and industries in private sector. The Scheme offers self-employment
opportunities to retired Defence Officers and employment opportunity to exPBOR. The Department of Public Enterprises had issued instructions to the
I'SUs to get security personnel through DGR sponsored Security Agencies.
111e Scheme has shown good results. The OCR has also written to Chief
Secretaries of all States urging them to issue suitable instructions to all
concerned under their jurisdiction to obtain security cover through DGR
empanelled agencies, thereby furthering the cause of resettling ex-servicemen.
A case has also been taken-up with the Government of Maharashtra to exempt
Security Agencies operating in that State from the Maharashtra Security Guard
Regulations of the Employment and Welfare Act, 1981.
Important schemes for self-employment for ex-servicemen have been launched
in collaboration with the Small Industries Development Bank of India (5IDB1),
National Bank for Agricultural Rural Development (NABARD) and the Khadi
and Village Industries Commission (KVIC). These schemes are given in
succeeding paragraphs.
SEMFEX-I scheme was launched in April 1987. Under this scheme, financial
assistance is provided to ex-servicemen to set-up small-scale industrial
projects for self-employment. Loans under this scheme are provided by the
respective State Financial Corporation. The scheme is currently under review.
The scheme has been promoted with the assistance of NABARD to set-up
agriculture and allied activities including Small Road Transport Operators
(SRTO) and also for setting-up of village, cottage, tiny and small-scale
industries in rural areas. There is no upper age limit for loan in respect of
projects under farm sector including agro/food processing units. The financial
assistance in case of non-farm sector activities is available up to 551 limit for
setting-up industries in rural areas. This schemes is operative from the year



SEMFEX-III SCHEME (Sena Se Gramudyog)

The Scheme is operative in collaboration with the Khadi and Village Industries
Commission (KVIC). The maximum loan limit for individual entrepreneurs,
cooperative societies / institutions and trusts is Rs 25 lakh per project to setup industries/service sector activities in rural areas. The financial assistance
is available through the Scheduled Commercial Banks, Regional Rural Banks,
Co-operative Banks, Private Commercial Banks and other Financing Institutions
of ftate and Central Government, as approved by the KVle. The margin
money grant (subsidy) is provided @ 30 per cent of the project cost for loan
amount up to Rs 10 lakh and balance 15 lakh will be @ 10 per cent of the
project cost. The ex-servicemen borrowers are required to invest only 5 per
cent of the project cost as margin money. The KVIC Central Office has
allocated State/UT-wise margin money grant to the State KVIBs and Regional
KVles to provide subsidy to the borrowers through the financing Banks.
Under the Scheme, Rs 10.29 crore have been sanctioned to 961 Ex-Servicemen
by the Bank since inception and up to March 2004.


The Scheme has been launched in collaboration with the Small Industries
Development Bank of India (SIDBI). The financial assistance is available to
set-up projects in tiny / small-scale sector, service enterprises and also for
undertaking expansion, technology up gradation, modernisation and revival
of viable sick units in 551 Sector. Maximum loan limit is Rs 50 lakh per project.
Soft loan is available up to 25 per cent of the project cost subject to a maximum
of Rs 10 lakh per project. SlOB) provides refinance to the financing Banks.
Loan is available through Scheduled Commercial Banks, State Co-operative
Banks, select Urban Co-operative Banks and State Financial Corporations/
Twin-function Industrial Development Corporations. The projects can be setup irrespective of location in rural and urban areas. Loan up to Rs 25 lakh
will be provided under the Scheme without collaterals and / or third party
guarantee, to small-scale industrial ventures including those engaged in IT /
Software industry. Under the Scheme, Rs 1.07 crore have been sanctioned to
34 Ex-Servicemen by the Bank since inception and up to March 2004.
The other major self-employment schemes for rehabilitation of ESM /
Widows/ dependants are as follows :
Allotment of Army Surplus Vehicles : The ESM/Widows of Defence
personnel who died while in service are eligible to apply for allotmet1t of an
Army surplus phased out Class V B vehicle. The application forms are routed
through Zila/Rajya Sainik Boards in case of retired personnel and through
units for those in last six months of service to DGR for registration.

Ex-servicemen Contributory Health Scheme, introduced with effect from

1 April 2003 is based on the pattern of Central Government Health Scheme.
On retirement, every service personnel drawing pension will compulsorily


India 2005

become a member of the scheme by contributing his/her share. Similarly, exservicemen who have already retired can become members by making a onetimp CDl1tribution or in three consecutive yearly instalments. The rates of
contribution vary from Rs 1800 p.m. 10 Rs 18,000 p.m. based on pension/
family pen<.;ion. The war widows have been exempted from payment of ECl-IS
Ex-sprvicemen I dependents who are non-pensioners would continue to
get financial assislanct from Armed Forces Flag Day Fund for treatment of

specified serious diseases.

DCR sponsors ESM Coal Transport Companies for the execution of
loading and transportation ot coal in various coal subsidiaries of Coal India

The widows of Defence personnel who died while in service due to causes
attributablt' to military service can be sponsored bv DCR for attaching one
tipper truck in their name with an Ex-Serviceman Coal Transport Company.
The functioning of these compani{'s is monitorpd by OCR.
The Ministry of Petroleum and Natural Gas has reserved eight per cent of
the oil product agencies, i.e., LPG Dealership, Petrol Pumps, Kerosene
Distributorship, etc., in the marketing plan for widows and dependants of
those who died in war I peace with death attributable to Military Service and
disablt>d soldil'rs with disability of 50 per ccnt and above attributable to
Military Service. Eligible persons can apply as and when such vacancy under
D('fence Category is advertised in the newspapers by petroleum companies.
The ]COs / DRs an' allotted Mother Dairy milk shops and Fruit and Vegetable
shops. As on date 670 milk shops and 280 Fruit and Vegetable shops are being
operated by l'x-servicemen. Dependant sons (where ESM are not eligible) are
abo considered for allotment of Fruit and Vegetable shops in and around
The scheme for management of CNG stations belonging to Indraprastha Gas
Limited was launched as a pilot project in July 2001. On success of pilot project
the scheme was extended to other retired officf'rs. As on date there are 55
retired officers managing 70 CNG stations. This scheme is presently available
in Delhi only.



BEFORE 1976, education was the exclusive responsibility of the States. The
Constitutional Amendment of 1976, which included education in the Concum'nt
List, was a far-reaching step. The substantive, financial and administratiw
implication required a new sharing of respon<;ibility between the Union
Government and the States. While the role and responsibility of the States
in education remained largely unchanged, the Union Government accepted
a larger responsibility of reinforcing the national and integrative character of
education, to maintain quality and standards including those of the teaching
profession at all levels, and the study and monitoring of the educational
requirements of the country.

The Central Government continut.'S to playa leading role in the evolution

and monitoring of educational poliCies and programmes, the most notable of
whjch an' the National Policy on Education (NPE), 19H6 and the Programme
of Action (POA), ] 986 as updated in 1992. The modified policy envisages a
National System of Education to bring about uniformity in education, making
adult t!ducation programmes a ma<;s movement, providing universal access,
retention and quality in elementary education, special emphasL<; on education
of girls, establishment of pace-setting schools like Navodaya Vidyalayas in
each district, vocationalisation of secondary education, synthesis of knowledge
and inter-disciplinary research in higher education, starting more Open
Universities in the States, strengthening of the All India Council of lechnical
Education, encouraging sports, physical education, Yoga and adoption of an
effective evaluation method, etc. Besides, a decentralised management structure
had also been suggested to ensure popular participation in education. lOe
POA lays down a detailed strategy for the implementation of the various
polk]' parameters by the implementing agencies.

The National System of Education as envisaged in the NPE is based on

a national cumcular framework, which envisages a common core alongwith
other flexible and region-specific components. While the policy stresses
widening of opportunities for the people, it calls for consolidation of the
existing system of higher and technical education. It also emphasises the need
for a much higher level of investment in 'education of at least six per cent
of the national income.
In order to facilitate donations including smaJler amounts from India and
abroad for implementing projects / programmes connected with the education
sector, the Government has constituted "Bharat Shiksha Kosh" as a Society.

In line with the commitment of augmenting resources for education, the
allocation for education has, over the years, increased significantly. The Plan
outlay on education has increased from Rs ] 5] crure in the First Five-Year

India 2005














Primary LrttI (Class I-V) Age 6-11


198HO 1999-2000 2000-01



Middle LIVtI (Class VI-VIII) Age 1H. YIII1



Plan to Rs 43,825 crore in the Tenth Five-Year Plan. The expenditure on

Education as a percentage of GOP also rose from 0.64 per cent in 1951-52
to 3.98 per cent in 2002-2003 (BE).
The outlay for Education in the Tenth Five-Year Plan of Rs 43,825 crore,
is higher than the Ninth Plan outlay of R<; 24,908.38 crore by 1.76 times.
Rs 30,000 crore has been provided for the Department of Elementary
Education and Literacy and Rs 13,825 crore for the Department of Secondary
and Higher Education. The outlay for education during 2004-05 is Rs 6,000
crore for the Department of Elementary Education and Literacy and Rs 2,225
crore for the Department of Secondary and Higher Education. The expenditure
during the plan periods on thl' different sectors of education is given in table
10. J.
After independence, the Government have taken number of steps to strengthen
the educational base of the persons belonging to the Scheduled Castes and
Scheduled Tribes. It is true, however, that these communities still have a long
way to go before they can come up
tht level of the other communities
in the field of educational development.


Pursuant to tht:' National Policy on Education 1986 and the Programme

of Action (POA) 1992, the following special provisions for SCs and STs have
been incorporated in the existing schemes of the Departments of Elementary
Education and Literacy and Secondary and Higher Education: (a) Relaxed
norms for opening of Primary / Middle schools; a primary school within ]
km walking distance from habitations of population up to 200 instead of
habitations of population up to 300; (b) Abolition of tuition fee in all states
in government schools at least up to the upper primary level. In fact, most
of the states have abolished tuition fees for SC/ST students up to the senior
secondary level; (c) Incentives like free textbooks, uniforms, stationery, school
bags, etc., for these students; (d) The Mid-Day Meal scheme, a successful
incentive programme, covers all students of primary classes in all the
Government and local body and Government-aided schools in the country
with the aim to improve enrolment, attendance and retention while
simultaneously impacting on the nutritional status of the children; (e) Sarva
Shiksha Abhiyan (SSA) is a historic stride towards achieving the long
cherished goal of Universalisation of Elementary Education (UEE). While
bridging social, regional and gender gaps in society, the programme lays
emphasis on the education of the girl child. The main features of the
programme are: (i) Focus on girls, especially belonging to SC/ST communities
and minority groups, (ii) Back to school camps for out of school girls, (iii)
Free textbooks for girls, (iv) Special coaching/remedial classes for girls and
a congenial learning environment, (iv) Teachers' sensitization programmes
to promote equitable learning opportunities, (v) Special focus for innovative
projects related to girls' education, (vi) Recruitment of 50 per cent female
teachers; (f) District Primary Education Programme (DPEP) provides
infrastructural facilities and special interventions for the education of girls,


India 2005






SCs, STs, disabled, etc; (g) The Constitutional (86 th Amendment) Bill, notified
on 1.3 December 2002 provides for free and compulsory elementary education
as a Fundamental Right, for all children in the age group of 6-14 years; (h)
Mahila Samakhya (MS) addresses traditional gender imbalances in educational
ilccess and achievement. This involves enabling women (especially from
socially and economically disadvantaged and marginaliSt.~d groups) to address
and deal with problems of isolation and lack of self-confidence, oppressive
social customs and struggle for survival, all of which inhibit their empowerment;
(i) The scheme of Kasturba Gandhi Swatantrata Vidyalaya is to improve
JitE'racy among the women belonging to SCs, STs, OBC., and Minorities. It is
proposed to st't up 500 residential s("hools in districts having less than 10 per
cent literacy among women. Initially, schools would be up to class V and
subsequently upgraded in rural areas; (j) Edu("ation Guarantee Scheme and
AJtt'rnative and Innovative Education (ECS and AlE) has been launched to
provide access to school-less habitations; (k) Shiksha Karmi Project (SKP) aims
at universalisation and qualitative improvement of primary education in
Tt'mote, arid and socio-economically backward villages in Rajasthan with
primary attention to girls. It is note-worthy that in Shiksha Karmi Schools,
74 per cent of the students are from SCs, Sls and OBCs; (I) Reservation of
st'ats for SCs and STs in Central government institutions of higher education.
There is also relaxation in the minimum-qualifying cut-off stages for admission,
apart from reservation; (m) The UCC has established SC/ST Cells in 113
Universities including Central Universities to ensure proper implementation
of the reservation policy; (n) To improve academic skills and linguistic
proficiency of students in various subjects and to raise their level of
comprehension, remedial and special coaching is provided for SC 1ST students
and for those who marginally fail in the entrance examination are provided
a one-year preparatory course and those who qualify are admitted to the FirstYear of the B.Tech. Course; (0) The UGC provides relaxation of five per cent
at the Master's level for appointment as Lecturer for SC 1ST candidates. The
Commission has also reduced the minimum percentage of marks reqUired for
appearing in the NET examination to 50 per cent at Master's level for SCs I
Sl<.,; (p) UGC awards Scholarships, Research Associateships, Fellowships
exclusively to SC/ST students. UCC also awards Junior Fellowships every
year in Science and Humanities including Social Sciences to SC I ST candidates
who appear in the National Eligibility Test (NET) of the UGC and qualify
the eligibility test for lecturership; (q) SC/ST candidates are provided
relaxation up to 10 per cent in cut off marks for the Junior Research Fellowship
ORF) Test and all the SC and ST candidates qualifying for the JRF are awarded
fellowship; (r) IITs have a scheme under which SC/ST students, whd fail to
qualify in the entrance examination, are admitted to the preparatory courses
run by IITs with those who qualify at thE" end of the preparatory courses,
being offered admission; (s) Tuition fee exemption, Book Bank facility and
scholarships are given to SC/ST students in lITs; (t) Out of 43,000 scholarships
at the secondary stage for talented children from rural areas, 13,000 scholarships
are exclusively reserved for SC 1ST students subject to fulfilment of criteria
laid down (u) 225 scholarships are exclusively reserved for SC/ST students


India 2005

under the National Talent Search Scheme conducted by NCERT; (v) The
Central Institute of Indian Languages, Mysore has a scheme of development
of Indian Languages through research, developing manpower and production
of mat~rials in modem Indian Languages including tribal languages. The
Institute has worked in more than 90 tribal and border languages; (w) Under
the Scheme of Strengthening of Boarding and Hostel Facilities for Girl
Students of Secondary and Higher Secondary Schools cent per cent financial
assistance is given to Voluntary Organisations to improve enrolment of
adolescent girls belonging to rural areas and weaker sections. Preference is
given to educationally backward districts particularly those predominantly
inhabited by SCs/STs and educationally backward minorities; (x) 146 districts
have been identified as low female literacy districts to be given focussed
attention by the Centre as well as States/Union Territories for implementation
of Programmes/Schemes; and (y) From the allotted budgets of the Departments
of Elementary Education and Literacy and Secondary and Higher Education,
15 per cent and 7.5 per cent are allocated under the Special Component Plan
and thl' Tribal Sub-Plan for Scheduled Castes and Scheduled Tribes respectively.
In the Education Sector, State and Central Sector projects involving Rs 444.90
have so far been approved for funding from the Non-Lapsable Central
Pool of Resources in the North-Eastern Region. Funds totaling Rs 355.13 crore
have been released to the implementing agencies as on 31 March 2004. The
projects are in various stages of implementation.


In the Central Sector, these proposals mainly relate to infrastructuraJ

development of Central Institutions like, the North-Eastern Regional Institute
of Science and Technology (NERIST), Itanagar: five Central Universities in the
North-East (two in Assam, one each in Meghalaya, Mizoram and Nagaland)
JNU and IGNOU. Under IGNOU's project, Regional Centres have been made
operational in all the eight State Capitals of the NE Region. All of these are
equipped with Tde Learning Centres where advanced courses such as BIT,
ADI1~ MCA and BeA are offered. The number of study centres has also
increased significantly from 80 to 125 and 80 study centres have been provided
with downlink facilities.

The Parliament has passed the Constitution 86d1 Amendment Act, 2002 to make
elementary education a Fundamental Right for children in the age-group of 6-14
years. It is proposed to bring in a follow-up legislation with detailed mechanism
to implement this act.
The Scheme of Sarva Shiksha Abhiyan(SSA) was launched in 2001. The
goals of SSA are as follows: (i) All 6-14 age children in school/Education
Guarantee Scheme Centre/bridge course, (ii) All 6-14 age children complete five
year primary education by 2007; (iii) All 6-14 age children complete eight years
of schooling by 2010; (iv) Focus on elementary education of satisfactory quality
with emphasis on education for life; (v) Bridge all gender and social category



gaps at primary stage by 2007 and at elementary education level by 2010; and
(vi) Universal retention 2010.
The assistance under the programme of SSA was on a 85:15 sharing
arrangement during the Ninth Plan, 75:25 sharing arrangement during the Tenth
Plan, and 50:50 sharing thereafter between the Central Government and State
The programme covers the entire country and addresses the needs of 192
millon children in 11 Lakh habitations. 8.5 lakh existing primary and upper
primary schools and 33lakh existing teachers would be covered under the scheme.
The programme seeks to open new schools in habitations which do not have
schooling facilities and strengthen existing school infrastructure through provision
of additional class rooms, toilets, drinking water, maintenance grant and school
improvement grant. The SSA has a special focus on girls and children of weaker
sections. A number of initiatives including free textbooks, target these children
under the programme. The SSA also seeks to provide computer education even
in rural areas to bridge the digital divide.
During 2003-04, the SSA approved 67,190 new schools, 3,98,189 appointment
of new teachers, 40,960 construction of school buildings, 68,779 additional class
rooms, construction of 46,272 toilets and provision of Drinking Water for 33,161
schools, EGS facilities for 47,04,400 children, AlE for 64,18,238 children, lED for
14,59,589 children, free textbook for 4,69,59,451 children, School Grant for 6,93,303
schools and teacher grant for 29,67,053 teachers against annual district elementary
education plan for 596 districts. A sum of Rs 2,698.38 crore was released by Central
Government to the States / VTs.
Education Guarantee Scheme and Alternative and Innovative Education (EGS
and AlE) is an important component of Sarva Shiksha Abhiyan (SSA) to bring
out-of-school children in the fold of Elementary Education. The scheme envisages
that child-wise planning is undertaken for each out-of-school children.
EGS addresses the inaccessible habitation where there is no formal school
within the radius of one km and atleast 15-25 children of 6-14 years age group
who are not going to school are available. In exceptional cases remote habitations
in hilly areas even for 10 children an EGS school can be opened.
Alternative Education interventions for specific categories of very deprived
children e.g., child labour, street children, migrating children, working children,
children living in difficult circumstances and older children in the 9+ age group
especially adolescent girls are being supported under EGS and AlE all over the
A sizeable number of out-of-school children are in the habitations where
schooling facility is available but these children either did not join the school or
dropped out before completing their schooling. 'nlese children may not fit into
the rigid fonnal system. To bring such children back to school, back to school
camp and bridge courses strategies have been implemented. Bridge courses and


India 2005

Back to school camps can be residential or non-residential depending upon the

need of children.

The National Programme of Nutritional Support to Primary Education (NPNSPE), popularly known as the Mid-Day Meal Scheme, was formally launched
on 15 August 1995. The objective of the programme is to give a boost to
universalisation of primary education by increasing enrolment, attendance and
retention, and also improving nutritional status of children in primary classes
studying in Government, Local Body and Government-aided schools. From
October 2()02, the programme has been extended to children studying in
Education Guarantee Scheme (EGS) and other Alternative and Innovative
Education (AlE) Learning Centres also.

Under the scheme central assistance is provided to States for the following:
(a) W(} grams of foodgrains per child per school day where there is a meal
programme, alternatively three kg per child pt'r month for 1() months, and (b)
admissible transport subsidy for transport of foodgrams from the~ nearest FCI
depot to the school sub;ect to a ceiling of Rs 50 per quintal.
Cost of converting foodgrains into cooked meal is expected to be borne
under the present programme by State Governments/Local Bodies.
Apart from this States have been permitted to meet certain other
requirements of Mid-Day Meal Programme from various other Centrally-assisted
schemes, as follows: i) To partially alleviate State Governments' resourCl~
constraint in providing cooked meal, 15 per cent of additional Central assistance
under the Pradhan Mantri Gramodaya Yojna (pMGY) has been earmarked by
the Plalming Commission from 2004-05 for meeting cooking cost; ii) States have
been permitted to construct kitchen shed in existing rural schools from funds
available under Sampurna Gramin Rozgar Yojana (SGRY), and for existing urban
schools from those available under National Slum Development Programme
(NSDP) and Urban Wage Employment Programme (UWEP) component of
Swama Jayanti Shahri Rozgar Yojana (SJSRY). In other urban areas construction
of kitcht'Il sheds in existing schools has been permitted under Sarva Shiksha
Abhiyan (SSA). Besides, construction of kitchen sheds has also been permitted
as a part of all new school buildings built under SSA; and iii) States have also
been allowed to spend a part of annual school grant of Rs 2,000 per annum per
school given under SSA for purchase of cooking utensils.

States have been advised to utilise services of women's Self-Help Groups

(SHGs) for cooking purpose as much as possible, in the interest of quality.
During 2003-04, 10.57 crore primary school children were covered under
the scheme. A total of 26.84lakh MTs of foodgrain was allocated to various States/
UTs .lgainst which 21.30 l.tkh MTs (79.4 per cent) of foodgrain was actually lifted
by them.
During 2003-04, 30 States/ UTs provided meals to about 5.78 crore children
against current year's target of 10.57 crore children which was about 54.6 per



In Karnataka, 20 NGOs, including lSKCON, are serving cooked meals to

about 1.16lakh children studying in 670 schools under overall supervision of the
State Government. Recently a mod\?l for public-private partnership has evolved
in Hyderabad where the Nandi Foundation manages a central kitchen to provide
cooked meals to about two lakh children in Hyderabad.

The Centrally-Sponsored Scheme of District Primary Education Programme

(DPEP) was launched in 1lJ94 as a major initiative to revitalise the primary
education system and to achieve the objective of universalisation of primary
DPEP adopts a holistic approach to universaliSt access, retention and
improve learning achievement and to reduce disparities among social groups.
Adopting an 'area-specific approach' with district as the unit of pl,mning, the
key strategies of the programme have been to retain the contextuality and
sensitivity to local conditions and ensuring full participation of the community.
It also. seeks to strengthen the capacity of national, state and district
institutions and organisations for planning, management and professional
support in the field of primary education.
DPEP is based on the principle of 'additionalily' Jnd is structured to
fill in the existing gaps by providing inputs over and above the provisions
made under Central and State Sector schemes for primary education. State
Covernments are required to at Il'ast maintain expenditure in real terms at
base year level.
The programme components include construction of classrooms and new
schools, opening of Non-formal/Alternative Schooling Centres, appointment
of new teachers, setting up early childhood education centres, stnngthening
of State Councils of Educational Research and Training (SCERTs)! District
institute of Educational Training (DIETs), setting up of Block Resource
Centres/Cluster Resourct' Centres, teacher training, development of Teaching
Learning Material, Research based intt.'rventions, special interventions ft'f
promoting education of disadvantagt'd groups, girls, SC/ST, etc., initiatives
for providing integrated education to disabled children and distanct' education
for teacher training have also been incorporated in the DPEP Scheme.
Under the programme parameters, investment per district is limited to
Rs 40 crore over a project period of 5-7 years. There is ceiling of 33.3 per
cent on civil works component and 6 per cent on management cost. The
remaining amount is required to be spent on quality improvement activities.
DPEP is an externally aided project. 85 per cent of the project cost is
met by the Central Government and the remaining 15 per cent is shared by
the concerned State Governmt'nt. The Central Government share is resourced
through external assistance. At present External Assistance of about Rs 3,718
(Tore which includes grant as well as external assistance from ECI DFIDI
UNICEF I Netherlands has been tied-up for DPEP.


India 2005

Presently DPEP is in operation in nine States covering 129 districts. DPEP

at its peak was operational in 273 districts in 18 States. However, with the
progressive closure of the programme, it is now in existence in only 129
The programme is supervised through periodic Supervision Missions. So
far, 15 Internal Supervision Missions and 17 Joint Review Missions (comprising
representatives of Government and External Funding Agencies) have been
carried out. The reviews and various evaluatory studies of the programme
have brought out that the programme has resulted in significant increase in
enrolment, improvement in learning achievement, reduction in repetition
rates / drop-outs with increased community involvement, improvements in
classroom processes, etc.
Major Achievements of DPEP : (i) DPEP has so far opened more than
1,60,000 new schools, including almost 84,000 alternative schooling (AS)
centres. The AS centres cover nearly 3.5 million children, while another
1,70,000 children are covered by bridge courses of different types; (ii) The
school infrastructure created under DPEP has been considerable. Works either
complete or in progress include 45,900 school buildings, 46,800 additional
classrooms, 15,302 resource centres, 19,000 repair works, 46,500 toilets, and
16,700 drinking water facilities; (ill) The Gross Enrolment Ratio (GER) for
Phase-I states was around 93 to 95 per cent for the last three years. After
the adjustment for the Alternative Schools /Education Guarantee Centres'
enrolment, the GER in 2001-02 works out above 100 per cent. In the districts
i.'ov~~red under subsequent phases of DPEp, the GER including enrolment of
AS/EGS was abow 85 per cent; (iv) The enrolment of girls has shown
significant improvement. In DPEP I districts, the share of girls enrolment in
relation to total enrolment has increased from 48 per cent to 49 per cent, while
this increase in the subsequent phases of DPEP districts has been from 46 per
cent to 48 per cent; (v) The total number of differently-abled children enrolled
is now more than 5,60,0(}(), which represents almost 70 per cent of the nearly
8,10,000 differently-abled children identified in the DPEl' States; (vi) Village
Education Committees/School Management Committees have been set-up in
almost. all project villages/habitations/ schools; (vii) About 1,77,000 teachers,
including para-teachers/Shiksha Karmi'i have been appointed; (viii) About
3,380 resource centres at block level and 29,725 centres at duster level have
been set-up for providing academic support and teacher training facilities.

The scheme of Operation Blackboard (OBB) was launched in 1987-88 with the
aim of improving human and physical resource available in primary schools
of the country. Provision of at least two reasonably large rooms, at least two
teachers and essential teaching/learning materials for every existing primary
school were the components of the scheme. However, OBB could not cover
the entire spectrum of schools. The SSA will qualitatively improve and expand
the existing structure. No fresh teacher recruitment will take place under OBB
once SSA programme became operationalised.



The scheme has been subsumed in Sarva Shiksha Abhiyan (SSA) from
2007.-03. However, the Planning Commission had decided that as special case,
the Central Government would meet the committed expenditure of teachers
salaries in North-East States only under the aBB scheml~ for one more plan
period, i.e., Tenth Plan period from SSA funds with the sharing ratio of 75:25
bt:tween Central and State Governments during Tenth Plan.
An innovative project "Lok Jumbish" with assistance from Swedish International
Development Agency (SIDA) was launched in Rajasthan to achieve education
for all through peoples' mobilisation and their participation. Lok Jumbish
Project (LJP) has set-up innovative management structures incorporating the
principles of decentralisation and delegation of authority as well as building
partnership with local communities and the voluntary sectors, intensive
community mobilisation, and schools mapping, processing as well as
development of innovative design for community centre school buildings
The first phase of the project was implemented during June 1992 to June
1994 at a cost of Rs 14.03 crore shared between SIDA, Government of India
and Government of Rajasthan in the ratio 3:2:1. The second phase of the
project was implemented between 1 July 1994 to June 1998 and subsequently
extended up to 31 December 1999. The expenditure incurred during this phase
was Rs 96.92 crore. The third phase was from 1 July 1999 to 30 June 2004.
The project received assistance from Department for International Development
(DFID), UK during this phase and the total project cost was Rs 400 crore.
The ratio of sharing expenditure between the three partners remained the
same as during the first and second phase. An amount of Rs 360.51 crore
was released against DFID and Government of India share.
At the end of Phase-II of the Lok Jumbish Project 75 blocks were covered
with 305 dusters taken-up for operationalisation and 8,675 villages in which
environment building was done. However, in Phase-Ill, 102 blocks were
covered with 561 clusters taken-up for operationalisation and 14,559 villages
in which environment building was done. The districts covered under this
project were Ajmer, Banswara, Barmer, Bikaner, Chittogarh, Dungarpur,
Jaisalmer, Jalore, Jodhpur, Pali, Udaipur, Baran, and Rajasamand.
The Fifth Joint Review Mission ORM) visited Rajasthan in January 2004,
to undertake a review and appreciated the progress of the project. The JRM
recommended that the good processes and practices of LJP be mainstreamed
after integration of the project in SSA.
The Shiksha Karmi Project (SKP) aims at universalisation and qualitative
improvement of primary education in remote and socio-economically backward
villages in Rajasthan with primary attention given to girls. The project
identifies teacher absenteeism as a major obstacle in achieving the goal of
Universalisation of Elementary Education (VEE).


India 2005

The projpcl at present covers 3,092 villages in 150 blocks in Rajasthan.

The Project providl'!'i primary education to 2.74 lakh children in day schools
and Prehar Pathshalas (PPs) (schools of convenient timings). Thl' experience
of SKI' demonstrates that the motivation of Shiksha Karmis working in
difficult conditions can be sustained over a long period of time by recurrent
and effective training; sensitive nurturing; communi tv support; regular
participat(lrv rt'vit'w; and problem solving approach. The success of SKP has
attrdctl'd national and international rt'cognition.
I'lta"e I LInd II of Shiksha Karmi Project (SK!') was implementl'd with
dssistcllll'l' from Swedish International Development Cooperation Agl'ncy
(SIDA) from 19R7 to ]91.)4 and 1944 tn 1Y9H respl'ctivt.'fy.

Phasl' III of thl' projl'ct was implemented from 1 July 1999 to 30 June
2001 with financial assistancl' from Departml'nt for International Development
(Dill)) 01 UK and Government of RaJasthan on ')0:50 basis. A proposal for
the ('Xll'll"ion of Phase III of thl' projl'ct for a further of two years, i.l'., from
1 Jllly 2()(J:\ to 3() JUIl\' 2()O:; is under process.

The Mahila Samakhva I'rowamn1l' (Education for Wllmen's Equality) started
in 1lJH9 is a nmcrdl' programme for the educatioll dnd l'mpowerment of
women in rural areilS, particularly of womell from socially and economically
marginafis('d groups. It is lwing impk'mt'nted in mOfl' than B,OOO villagl's
in 6() districts of nine states.

T111' objl'lti\'l's of the sclll'llll' <lrl' to t'nhanCt.' tl1(' self-image and selfumtidl'llcl' of WOIlIt'Il; to CTt'<lil' an l'1l\'ironnll'nt where women can seek
knowll'dgt' and IlItnrrniltillll which empowers them 10 playa positiw' roll' in
sncid\'; 1<1 "st.tblish <1 dl'cl'ntrdli'il'd ,md participative mode of management;
to ('I1.1hll' A1ahila Sllllgha~ to ,h ti\'l'Iv assess and monitor educational activities
in till' villages; to provide opportuTlitil's for education for women and
adniescl'nt girls and 10 bring about grl'aler participation of women and girls
ill both tonnal dnd non-formal education programml'.
Til,' M,lilild Sangha is till' nodal point where all activities are planned
dilL! which pwvidl'S the SP,H l' where Wollll'n Gill ml'el, be together and discuss
tlwir problpll1s. A group III two or Illlll',' women called Saldli or Sahayaki an'
trained to work ,IS l\lt,llvsts who LKilitdte the formation as wdl as discussions
in thl' Sangha. The funds l'drmOlrked for tlw Sangha Ciln bt' <it'posited in a
Bank / Post OfficI' dccmlllt 'and t';)ll [1(' used collectivt'ly by the women for a
period up to thrl'p yt'clfS. SaiIlH/t>SilllS look after a group of 10 villages and
work as motivators, Sllpptlrtl'rs ,ll1d guides.
Janshala (COl-UN) Programme is i1 collaboratiw effort of the Government
of Indid and fiVl' UN agencies _. UND1~ UNICEF, UNESCO, ILO and UNFPA
- to provide programme suppurt t(1 the ongoing efforts towards achieving
[_, EF. /alls/1IIIa, a community bas<'d primilry education programme, aims to



make primary ('ducanon mof(' accessible and effective, especially for girls and
children in deprived communities, mar~inalist'd groups, SC/ST /minorities,
working children and children with specific needs. A unique feature of the
lanshala is that it is a block bas('d programme with emphasis on community
participation and deCl'ntralisation. Th(' blocks have been S(>lected on the basis
of different indicators such a!' low female lit{'racy. incidence of child labour,
,md concentration of SC and ST population.
UNDP, UNICEF and UNFI'A have committed a contribution of US $ 20
million for the programme, while UNESCO and liD have offl'red technical
know-how. This is tht' first-!'wr programme in the world where five UN
a!~(,JlCies have collahorated and pooled resources to support an initiative in
Tht' programme cowrs D9 blocks including 1() cities in 30 districts of
nine states with a total project ollllay of I{s W,1.13 crort'. The programme which
W3;, to conclude on 31 Deceml"lt'r 2002 was extended for two years.

/\.;, enVisaged in the National POlil'V nn Fducation (NPE) and Programnw of
Action (POA) -19Rn, the Centrallv-Sponsored Schemt' of Restructuring and
Rporganisation of Teacher Education was taken up in 191'17 to creah' a viable
JI1stltutional intrastruchJTl', academic ,md lechmcal resource bast' for orientation,
trallling and continuous upgraddtioJl of knowledge, competence and
Iwd,)gogieal skill:- of ~chool teach~r ... 111 the country. The scht'me envisages
setting up of DIETs in pach district of tht' country to provide academic and
re..,nur~'l' support to eleml'ntarv grade tt'(lch('rs and non-formal adult education
The Central C;overnml'nt provides financial assistance to States/UTs for
..... Uing up of DIETs/CIEs/IASEs. DIETs an' l'stablished by upgrading existing
Ficmentary Teacher Education Institutions (EIEls) or by setting up new
institutions. The land for the purpose is provided by State Governments freeof-co:-t. CTEs/lASEs are sct-up by upgrading existing Secondary Teacher
Lducation institutions (STEb) offering H.Ed., courses, and lASEs by upgrading
ColJt')~{'s and University Departments of Education off(>ring M.Ed., courses.
4YB DIETs, 86 CTEs and 31'1 lASEs haw been established so far under the
~dlt.'me. The norms for Central assistance for non-recurring and recurring
grant was n'vised in April 2003 with the approval of the Cabinet.
The Planning Commission has agreed in principll) (or continuation of
the Centrally-Sponsored Scheme on Teacher Education and allocated Rs 950
lTOTl' for tht> entire Plan period and Rs 207 crore has be<>n allocated for the
year 2004-05. On the recommendation of til(> Working Group on Tenth Plan
the scheme has been revised on 12 January 2004 after approval by EFC. During
2004-05, it is expected that the implementatiun of the scheme will be at the
desired level.


The National Council for Teacher Education (NCTE) was established in


India 2005

August 1995 with a view to achieve planned and co-ordinated development

of teacher education system throughout the country and for regulation and
proper maintenance of norms and standards of teacher education. Some of
the major functions of NCTE are laying down norms for various teacher
education courses, recognition of teacher education institutions, laying down
guidelines in respect of minimum qualifications for appointment of teachers,
surveys and studies, research and innovations, prevention of commercialisation
of teacher education, etc.
Four Regional Committees of the Council have been set-up at ]aipur,
Bangalore, Bhubaneswar, and Bhopal for Northern, Southern, Eastern and
Western regions rt:$pectively. These Regional Committees primarily look after
recognition of teacher training institutions in their respective regions and are
empowered to grant permission to thest:' institutions to run teacher training
courses as per the provisions of the National Council for Teacher Education
Act. As on 31 March 2004, 2,995 teacher training institutions offering 3,329
courses have been f('cognised by NCTE with an approval intake of 2,56,477
teacher trainees.

National Bal Bhavan (NBB), New Delhi is an autonomous body fully funded
by the Ministry of Human Resource Development which was established for
children in the age group of 5-16 years. Objectives of the National Bal Bhavan
are to enhance the creative potential of children and to inculcate in them
scientific temper and a spirit to challenge, experiment, innovate and create.
National Bal Bhavan was founded by Pt. Jawahar Lal Nehru in 1956.
Since its beginning the National Bal Bhavan has grown substantially and
the Hal Hhavan movement has gained momentum over the years. At present
there are 73 Bal Bhavans across the country which are affiliated to the NBS.
With the objective of reaching out to the maximum number of children
who calmot avail the facilities provided by the NBB at the headquarters, 52
Bal Bhavan Kendras have been opened in different localities of Delhi. These
Kendras cater to the under-privileged children living in slum areas, rural
area:-;, and re-settlement colonies, and are manned by part-time instructors.
Objectives of National Bal Bhavan are achieved through many activities
encompassing a wide spectrum of subjects like science, creative arts and crafts,
performing arts, photography, tailoring / stitching, games, publication related
activities, etc. The National Training Resource Centre (NTRC) is a resourO'
centre for imparting training to teachers and teacher trainers in creatiw
activities organised by the NBB. NTRC imparts training to primary teachers
and Trained Graduate Teachers.

The Bal Shree scheme of National Bal Bhavan honours exceptionally

talented children in the creative arts and is awarded after a rigorous process
of selection at the zonal and national levels. National Bal Bhavan, besides
organising its own local and national level programmes, also takes part in
Cultural Exchange Programmes with other Countries.




During the Tenth Plan, it has been decided to introduce a composite Centrally
Sponsored Scheme "Quality Improvement in Schools" by inter-alia converging
the following components: (i) National Population Education Project; (ii)
Environmental Orientation to School Education; (iii) Improvement of Science
Education in Schools; and (iv) Promotion of Yoga in Schools.
The proposal is under consideration at present. A brief of the components
1111.' National Population Education Project (NPEP) was launched in April
19HO with a view to institutionalise population education in the school
education system. This was an externally-aided project, which was fully
funded by United Nations Population Fund. This project is also being
implemented in Higher and Adult education sector. The Fourth cycle of the
project was completed in December 2002. In view of it<; achievements and
significance, Government decided to continue it in the Tenth Five-Year Plan
with the objective to focus on the integration of the elements of the
reconceptualised framework of population education.
However, for the Tenth Plan period beginning from 2003-04 a budgeting
support of Rs 7.29 croce has been provided by UNFPA for undertaking the
in-school adolescent programmes through NCERT.
The National Policy on Education (NPE)-1986 provides that the protection of
environment is a value which, along with certain other values, must form
an integral part of curricula at all stages of education. Centrally-sponsored
Scheme "Environment Orientation to School Education" was initiated in 198889. The scheme envisages assistance to voluntary agencies for conduct of
experimental and innovative programmes aimed at promoting integration of
educational programmes in schools with local environmental conditions.
To improve the quality of science education and to promote the scientific
temper a Centrally-sponsored Scheme; "Improvement of Science Education
in Schools" was initiated during 1987-88. Under the scheme financial
assistance was being provided to States / UTs and voluntary agencies: While
voluntary agencies were provided assistance for conducting experimental and
innovative programmes States/Union Territories were assisted for provision
of science kits to Upper Primary Schools and setting-up / up-gradation of
science laboratories in Secondary / Senior Secondary Schools, etc.
One of the important components of this scheme was participation of
Indian Students at school level in the International Science Olympiads, viz.,
International Mathematical Olympiad (since 1989), International Physics


India 2005

Olympiad (since 19(8), International Chemistry Olympiad (since 1999) and

International Biology Olympiad (since 2000).
During 2003-04, three voluntary organisations were provided financial
assistance to the extent to Rs 124.25 lakh under this Scheme. In addition, four
States/ UTs were provided financial assistance for purchase of various
components to the extent of Rs 559 lakh. Indian delegations to the above
Science Olympiads won five Gold, four Silver and two bronze medals during


A Centrally-Sponsored Scheme for Introduction of Yoga in Schools was
launched in 1989-90. The scheme provided for Central assistance for expenditure
on training of teachers, building up infrastructure, i.e., hostel building for yoga
trainees and furnishing grant and upgrading library facilities. This scheme
is being implemented through the concerned Education Departments of the
States / UTs and NGOs.
During the financial year 2003-04, ten voluntary organisations were
provided financial assistance to the tune of Rs 29.02 lakh in plan side and
Rs 65 lakh to one agency on non-plan side.


Under the scheme financial assistance is being given to eligible voluntary
organisations to improve the enrolment of adolescent girls belonging to rural
areas and weaker sections. Preference in providing assistance is given to
hostels located in educationally backward districts, particularly those
predominantly inhabited by SCs/STs and educationally backward minorities.
The scheme is now operative under the new scheme "Access with Equity".
To address the issue of Access with Equity in providing education to
girls at the secondary stage, the existing scheme of Strengthening of Boarding
and Hostel Facilities for Girl Students is being revised by incorporating the
following: It is proposed to give financial assistance to hostels run by eligible
voluntary organisations by giving following types of grants: (a) Rs 7,500 per
boarder from the existing Rs 10,000 keeping in view the rates of Jawahar
Navodaya Vidyalaya which is Rs 5,000 as mess charges for nine months.
Maximum number of students is restricted to 150. (b) (t will include scttingup new St'Condary schools and upgradation of existing upper primary schools
to secondary / higher secondary level. Grant of Rs 25 lakh for construction of
20 rooms @ R.. 1.25 lakh per room. Grant of Rs 10 lakh for infrastructure
facilities like furnishing classrooms, laboratories, equipment, etc. A recurring
honorarium grant of Rs 3 lakh per school for three years from the second
year of release of grant to meet expenses of teachers on contract basis and
maintenanc(' grant @ Rs 2 lakh per school for a period not exceeding three
years from the fourth year of completion of the building of the school.

The National Policy on Education-1986 envisaged setting-up of model schools,



one in each District of the Country. Accordingly, a scheme was formulated

under which it was decided to set-up co-e<iucational residential schools (now
cailed Jawahar Navodaya Vidyalayas). Navodaya Vidyalayas are fully
residential co-t.'Ciucational institutions providing education up to senior
secondary stage. The scheme which started with onJy two schools on
experimental basis in 1985-86, has now grown to 506 schools covering as many
districts in 34 States/UTs, with over 1.5H lakh students on rolls as on 31 March
2004. About 30,000 new students are admitted every year. The Vidyalayas
envisaged a new style of growth with identification and development of
talented, bright and gifted children predominantly from rural areas who may
otherwise be denied good educational opportunities. Efforts are made to
ensure that at least 33 per cent of the students enrolled are girls. Migration
is a unique feature of Navodaya Vidyalaya scheme whereby 30 per cent of
students of Class IX from a Vidyalaya located in Hindi Speaking area spend
one academic year in a Vidyalaya located in non-Hindi speaking area and
pice-versa to promote national integration through understanding of the
diversity and plurality of country's people, their language and culture.

The Government approved the scheme of Kcndriya Vidyalaya Sanxathan in

19h2, on the recommendations of tht' Second Pay Commission. Initially, 20
regimental schools in different States were taken over as Central Schools. In
1%5, an Autonomous Body called Kt'lldriya Vidyaillya Sangathan was
('stablished with the primary objective of setting-up and monitoring Kendriya
Vidyalayas to cater to the educational needs of the children of transferable
Cl'ntral Government Employees including Defence Personnel and ParaMilitary forces by providing common programme of education. At present,
there are 923 Kcndriya Vidyalayas (as on 1 April 2(04) out of which one each
is in Kathmandu and Moscow. All Kendriya Vidyalayas follow a uniform


The National Council of Educational Research and Training (NCERT) is an

ap~x resource organisation set-up in September 1961, with headquarters at
New Delhi. It assIst'> and advises the Central and State governments on
academic matters related to school education. The Council is fully funded by
the Central Government.
The NCERT provides academic and technical support for qualitative
improvement of school t!ducation through its constituent units, namely,
National Institute of Education (NIE), New Delhi, Central Institute of
Educational Technology (CIET), New Delhi, Pandit Sunderlal Sharma Central
Institute of Vocational Education (PSSCIVE), Bhopal and Regional Institutes
of Education at Ajmer, Bhopal, Bhubaneswar, Mysore and Shillong. The
Council conducts, aids, promotes and coordinates research in school education


India 2005

and teacher education, organises pre-service and in-service training programmes

for teachers, extension services for institutions; develops and experiments with
improved educational techniques, practices and innovations; collects, compiles,
processes and disseminates educational information; assists the States/UTs in
developing and implementing programmes for qualitative improvement of
school education; collaborates with international organisations; serves as the
academic secretariat of the National Development Group (NDG) for the Asia
and the Pacific Programme of Educational Innovation for Development
(APEID), UNESCO, Bangkok and develops, prints and distributes textual
materials, etc. Recently, NCERT has also set-up a National Resource Centre
for Value Education (NRCVE), a Centre for Special Needs Education, National
Centre for Computer Extended Education I Multimedia Laboratory and a
centre of UNESCO's International Project on Technical and Vocational Education
Recently, NCERT has launched rational as well as emperical evaluation
of its new generation textbooks developed as per National Curriculum
Framework for School Education-2000. It has also developed Corriculum
Framework for Teacher Education-2004, model syllabus of Environmental
Education for all stages of school education as per the verdict of Hon'ble
Supreme Court of India, Compendium of Educational statistics, Teacher
Empowerment, and Encyclopedia of Indian Education, etc.
The National Council of Educational Research and Training started the
National Science Talent Search Scheme in 1963 to identify brilliant students
of Class X as a pilot project for the Union Territory of Delhi. It was extended
throughout the country during 1964 with a total number of 350 scholarships.
Tht' scheme undersent various changes over the years and was renamed as
'National Talent Search Scheme' with effect from 1977. The present number
of scholarships is 1,000, which include 150 for SC and 75 for ST category.
Tht' steps have been taken to nurture the talent of NTS scholars.


At present, there are 306 university-level institutions in India (including 18
Central Universities, 186 State Universities, five Institutions established under
State Legislature Act, 89 Deemed Universities and 13 Institutes of national
importance). Of these, 38 Institutions provide education in agriculture
(including forestry, dairy, fisheries and veterinary science), 21 in medicine
(including Ayurveda), 44 in engineering and technology, and four in Information
Technology, four in Legal Studies. The number of Open Universities is nine
and that of Women Universities is five. The total enrolment of students in
universities and colleges is 88 lakh while the number of teachers is more than
four lakh.


The University Grants Commission (UGC) was established in 1956 to take,



all such steps as it may think fit for the promotion and coordination of
university education and for the determination and maintenance of standards
of teaching, examination, and research in universities. The vec serves as a
coordinating body between the Union and State Governments and the
institutions of higher learning. It also acts as an advisory body to these
Governments and institutions on issues relating to higher education. To fulfil
its objectives, the Commission can enquire, among other things, into the
financial needs of the universities; allocate and disburse grants to universities
and colleges for the maintenance and devdopment; establish and maintain
common services and facilities; recommend measures for improvement of
university education; make rules and regulations consistent with the Act, and
give advice on allocation of grants and establishment of new universities. The
Commission consists of the Chairman, Vice-Chairman and 10 other Members
appointed by the Central Government. It has its Regional Offices at Hyderabad,
I'tille" Bhopal, Kolkata, Guwahati and Bangalore. The Northern Regional
Office which was earlie~ located at Ghaziabad, has now been merged with
the VGC Head Office located at New Delhi and renamed as Northern Region
Colleges Bureau.


The Indian Council of Historical Research (ICHR), New Delhi, set-up in 1972,
fl'vicws the progress of historical research and encourages scientific writing
of history. It operates research projects, finances research projects by individual
scholars, awards fellowships and undertakes publication and translation work.
The Indian Council of Philosophical Research (lCPR), functioning from
1977 with offices in New Delhi and Lucknow, reviews the progress, sponsors
or assists projects and programmes of research in philosophy, and gives
financial assistance to institutions and individuals to conduct research in
philosophy and allied diSciplines.
The Indian Institute of Advanced Study (lIAS), Shimla set up in 1965
is a residential centre for advanced research on humanities, social sciences
and natural sciences. It is a community of scholars engaged in exploring new
frontiers of knowledge aimed at conceptual development and offering inter~
disciplinary perspectives on questions of contemporary relevance.
The Indian Council of Social Science Research (lCSSR), New Delhi, is
an autonomous body for promoting and coordinating social science research.
Its main functions are to review the progress of social science research, give
adVice on research activities in government or outside, sponsor research
programmes and, give grants to institutions and individuals for research in
social sciences.
The National Council of Rural Institutes (NCR!) was set-up in 1995 as
an autonomous organisation fully funded by the Central Government to
promote rural higher education on the lint:l:I of Mahatma Gandhi's revolutionary
ideas on education, consolidate network and develop educational institutions


India 2005

and voluntary agencit's in accordanc(' with Gandhian philosophy of education

and, promote research as a tool of social and rural development.


The Indira Gandhi National Open University (lGNOU), established in
September 19R5, is responsihle for the introduction and promotion of open
university and distance education system in the educational pattern of the
country ~nd for coordination and determination of standards in such systems.
Tht' ~ajor objectives of the university incJudl' widening access to higher
education to larger segments of the population, organising programmes of
continuing education and initiating special programmes of higher education
for sp<>cific target groups lik(' women, and people living in backward regions
and hill~1 areas, etc.
The IGNOl) provid(':-; an innovative system of univ{'rsit~' level education,
f1pxihlt' and open in f('gard to methods and pan> of learning, combination
of courses, eligihility tor enrolment, age of entry, methods of evaluation, Pte.
The University has adopted an intt-grated multimedia instructional strategy
consisting of print('d materials, audio-visual aids, and teleconft>rencing,
supportt'd hy counselling sessions at a network of studY centres throughout
tfw country. It conducts hoth continuous evaluation as wpll as term-end
The IGNOU introduced its programmes in 19R7 and has so far launched
H2 programmes consisting of mon' than 800 courses consisting of Ph.D,
Master's Degree Programml's, Advanced/Post Graduate Diploma, Diploma
Programmes and Certificate Programmes, de During 20m over :i.20 lakh
students Wl're registert'd tor various programml's of study. The UniverSity has
established an extensive stud"nt support servin's network consisting of 4R
fl>gional centres and 1,1 J 9 study centres situated in diffefl'nt parts of the
countrv. leNOU has t:'staolishl'd 269 study centrt'S for womt'n, SC 1ST and
physically challenged perSlll1s. A Distance Education Council, estahlished bv
the University as a statutory authority, is an apex body for coordination and
determination of standards in distance education in the county. On 26 January
20(H, lGNOU launched an education channel-Gyallliarshan which is now a
24-hour channt'1. ICNOU has also launched, in Novembt.'r 20m, FM Radio
Network for providing additional studl~nt support, which is to be expanded
to 40 FM stations in course of time. Thc launch of anotht'r satellite chanm1
for tt'chnological education, \'iz., 'Ekllrl'ya chOlmc/' on 26 January 2003 jr,
another milestone in the growth and development of distance education in
thl' countrv.
At Prt'Sf'Ilt. there are ten other open universities in the country, viz" B.R.
Ambedkar Open University, Hyd('rabad (Andhra Pradesh), Kota Open
University, Kota (Rajasthan), Nillanda Open University, Nalanda (Bihar),
Yashwant Rao Cha"h<m Mahdrashtrd Open University, Nasik (Maharashtra),
Madhya Pradesh Rho; Opl'l1 University, Bhopal (Madhya Pradesh), Ambedkar
Open University, Ahmpdabad (Gujarat), Kamataka State Open University,
Mysort' (Kamataka), Nl'taji SubhilSh Open University, Kolkata (West Bengal),



Riljrishi Tandon Open University, Allahabad (Uttar Pradesh) and Tamil Nadu
State Open University, Chennai (T.N). There are 104 correspondence course
institutions, imparting education through the distance mode in the conventional

The Technical Education System in the country covers courses in engineering,
tl'('hnology, management, architecture, pharmacy, etc. The Ministry of Human
Resource Development caters to programmes at undergraduate, postgraduate
and research levels. The tl'chnical education system at the central level
wmprises, among others, the following: a) The All India Council for Technical
Education (AICfE), which is the statutory body for proper planning and
coordinated development of the technical education system; b) Seven Indian
Institutes of Technology (IITs); c) Six Indian Institutes of Management (IIMs);
d) Indian Institute of Science (IlSc), Bangalore; e) Indian Im;titute of Information
Tf'chnology and Management (HITM), Gwalior and Indian Institute of
Information Technology (lUT), Allahabad; and 18 National Institutes of
Tt'chnology (NITs) (converted from RECs with 100 per cent central funding).
A total of 1,%9 degree institutions and 2,475 post-graduate institutions
haw bt.>en approved by AICTE. A National Programme of HRD in IT has been
drawn to meet the emerging need for quality manpower in IT and the related
An All India Engineering Entrance Examination (AIEEE) has been
launched for admission to engineering, architecture, pharmacy and planning
programmes. Similarly an All India Master of Computer Application Test
(AIMCET) was launched for admission to MeA programme and guidelinies
for admission to Master of Business Administration (MBA)/PGDM were
Technical Education Quality Improvement Programme (TEQIP) has been
launched with the assistance of World Bank aims at upscaling and supporting
of ongoing efforts of the Government in improving quality of technical
education. The Programme has been under implementation as a centrallycoordinated multi-state long-term programme from March 2003.
The Government has decided to set-up two Institutes of Information
Technology Design and Manufacturing at Kanchipuram and Jabalpur at a total
project cost of Rs 114.60 crore for both the institutions during Tenth Plan.

The National Literacy Mission (NLM) set-up in May 1988 aims to attain a
sustainable threshold level of 75 per cent literacy by 2007 by imparting
functional literacy to non-literates in the age-group of 15-35 years, which is
the productive and reproductive age-group and constitutes a major segment
of the work foroe. Apart from pre-determined levels of reading, writing and
numeracy with comprehension, functional literacy which includes imbibing


India 2005

values of national integration, conservation of environment, women's equality,

observance of small family norms, etc. Literacy, as enunciated in NLM, is not
an end in itself but has to be an active and potent instrument of change
ensuring achievement of these social objectives and creation of a learning
socil'ty. The acquisition of functional literacy results in empowerment and a
definite improvement in the quality of life.
The Total Literacy Campaign (TLe) is the principal strategy of NLM
for eradication of illiteracy. These campaigns are - area-specific, time-bound,
participative, cost-effective and outcome oriented. These are implemented
through Zilla Saksharata Samitis (district level literacy committees) as
independent and autonomous bodies, having due representation of all sections
of socidy. Apart from imparting functional literacy, TLe also disseminates a
'basket' of other socially relevant messages such as enrolment and retention
of children in schools, immunisation, propagation of small family norms,
women's equality and empowerment, peace and communal harmony, etc.
These literacy campaigns generated a demand for primary education.
The Continuing Education Scheme provides a learning continuum to the
efforts of Total Literacy and Post-Literacy Programmes in the country. The
main thrust is on providing further learning opportunities to nco-literates by
setting-up of Continuing Education Centres (CECs) which provide areaspecific, need-based opportunities for basic literacy, upgradation of literacy
skills, pursuit of alternative educational programmes, vocational skills and
also promote social and occupational development. The programmes of
Residual llliteracy are also being taken up to address the requirements of
geographically remote regions and segments of population requiring special
focus particularly SCsi STsl Women.
Non-Governmental Organisations: The National Literacy Mission (NLM)
fully recognises the vast potential of NGOs in furthering its objectives and
has taken measures to strengthen its partnership with NGOs and has assigned
them an active promotional role in the literacy movement. Apart from
imparting literacy, the NGOs provide academic and technical resource support
through experimental and innovative programmes.
The State Resource Centres (SRCs) managed by NGOs provide academic
and technical resource support in the form of training material preparation,
extension activities, innovative projects, research studies and evaluation, etc.
At present, there are 26 SRCs.
Special interventions for female literacy: As per Census 2001, 45 districts
in U.P., Bihar, Iharkhand and Orissa were identified where the female literacy
is below 30 per cent. These districts have a sizeable population of women
from weaker sections and minorities.
In U.P., 97 NGOs were involved in an Accelerated Programme for Female
Literacy. Approximately, 27 Jakh women were covered. The results of the
programme were very encouraging and achievements as high as 95 per cent
were obtained during external evaluation.



In Bihar, the literacy programme has focused on involvement of women

volunteers including a sizeable number from the minorities. Approximately,
2.0 lakh women in 15-35 age group attended literacy classes in about 2.5 lakh
centres in 13 districts. In Jharkhand, a speCial programme for improving
female literacy is being implemented in five districts covering about five lakh

In Orissa, approximately 9.10 lakh women are being made literate in nine
lo\-v-female literacy districts, with the help of 117 NGOs.

Jan Shikshan Sansthan : The objective of the Jan Shikshan Sansthans 055)
is educational, vocational and occupational development of the socioeconomically backward and educationally disadvantaged groups of urbani
rural population particularly neo-literates, semi-literates, SCs, STs, Women and
girls, slum dwellers, migrant workers, etc. At present, there are 140 JSSs in
the country. More than 250 types of courses and activities are offered by these
institutions. About two lakh persons are given vocational training annually.
Of these, over 75 per cent arl' women.
Directorate of Adult Education: The Central Directorate of Adult Education
provides academic and technical resource support to National Literacy
Mission. It has also been playing an important role in the development of
il network of resource support particularly production of media material and
harneSSing of all kinds of media for furtherance of the objectives of NLM.
Achievements: (i) The literacy rate in 200] recorded at 65.38 per cent as
against 52.21 per cent in 1991. The 13.17 percentage points increase in the
literacy rate during the period is the highest increase in any decade. (ii) 108.42
million persons made literate as on 31 March 2003. (iii) The rate of growth
is more in rural areas than in urban areas. (iv) The gap in male-female literacy
rate decreased from 24.84 per cent in 1991 to 21.70 per cent in 2001. (v) Female
literacy increased by 14.8 per cent, i.e., from 39.3 per cent to 54.16 per cent
whereas male literacy increased by 11.72 per cent, i.e., from 64.1 per cent to
75 per cent during the last decade. (vi) Gender equity and women's
empowerment is also visible as about 60 per cent of participants and
beneficiaries were women. (vii) The population in 7+ age group increased by
171.6 million while 203.6 million additional persons became literate during
1991-2001. (ix) In all States and Union Territories, the male literacy rate is
now over 60 per cent. Kerala recorded .the highest literacy rate of 90.92 per
cent and Bihar the lowest at 47.53 per cent. (x) Significant decline in absolute
number of non-literates from 328.88 million in 1991 to 296 million. in 2001.
(xi) Out of the total 600 districts in the country, 596 districts were covered
by NLM under literacy programme.
The Government provides scholarships to Indian scholars for Post-Graduate /
Research/Post-Doctoral studies abroad on the basis of offers received from
foreign Governments under the various Cultural/ Educational Exchange
Programmes. The amount and other facilities provided by foreign government


India 2005

varies from country to country and time to time. 110 scholarships were
awarded during the year 2003-04 under various Cultural Exchangt'
Programmes I Educational Exchange Programmes.

Language being the most important medium of communication and education
its development occupies an important place in the National Policy on
Education and Programl e of Action. Therefore, the promotion and development
of Hindi and other Languages listed in the Constitution of India haw received
due attention.
In order to assist non-Hindi speaking States/ UTs to effectively implt'ment tht'
three-language formula, support for provision of facilities for teaching of
Hindi in these States I UTs is provided by sanctioning financial assistance for
appointment of Hindi teachers in schools under a C(>ntrally-sponsored
scheme. Assistance is also given to Voluntary Organisations for enabling them
to hold Hindi-teaching classes. Through the Kendriya Hindi Sansthan, the
Government promotes development of improved methodology for teaching
Hindi to non-Hindi speaking students. A spt'cial course for teaching Hindi
to foreigners is being conducted by tht' Sansthan.
The Central Hindi Directorate runs programmes relating to purchase and
publication of books and its free distribution to non-Hindi speaking States
and to Indian missions. It extends financial support of NGOs engaged in
development and promotion of Hindi.
The Commission for Scientific and Technical Terminology, New Delhi,
prepares and publishes definitional dictionaries and terminology in various
disciplines in Hindi and in other languages.
Financial assistance is given to voluntary organisations and individuals to
bring out publications like encyclopaedias, dictionaries, books of knowledge,
original writings on linguistic, literacy, indologicaJ, social anthropological and
cultural themes, critical editions of old manuscripts, etc., for the development
of Modem Indian Languages. States are given special help for the production
of University-level books in regional languages. The National Council for
Promotion of Urdu Language (NCPUL) has been functioning since April 1996
as an autonomous body for the promotion of Urdu language and also Arabic
and Persian languages. One of the outstanding areas of operation of NepVL
has been transfer of Information of Urdu speaking population into productive
human resource and making them part of the employable technological
workforce in the emerging information technological scenario and penetration
of computer education to the grass-root level in minority concentration block..,.
The Government has set-up National Council for Promotion of Sindhi
Language, a fully-funded autonomous organisation for promotion and
development of the Sindhi Language.



The Government also provides fadliti<"S for study of all Indian languages.
this the Central Institute of Indian Languages (CIIL), Mysore conducts
research in th{' areas of language analysis, language pedagogy, language
ttchnology and language use. It runs Regional Language Centres to help in
meeting the demand for training of teachers 10 implement the three-language
fonnuJa. The Regional Language Centre also provides training for mother
tongue teachers in different Indian languages at various levels.

In the Tenth Fiw-Year Plan, two major Schemt's relating to minorities

have been clubbed together to form the 'Area Intensive and Madarsa
Modernisation Progrilmme (AIMMP), in a unified programme, i.e., Area
Intensive Programme for EducationaJly Backward Minorities and the Scheme
ot hnancial AssistilJ1('l' for the Modernisiltion of Madarsa Education.
The Central Institute of English and Foreign Languages, Hyderabad, a fully
hmded autonomous organisation, inh'r-alia, conducts training programmes for
school teachers, develops t{'aching materials, implements/monitors the scheme
of E~lish Language Teaching Institut{s and provides financial assistance for
publication, purchase of books in the English language.
The National Policy on Education, 19R(i (revised in 1992) and its Programme
of Action-1992 has laid considerable E>mphasis on value education by

highlighting the need to make education a forceful tool for the cultivation
of social and moral values,

To fulfil the objectives of the National Policy on Education, a Central

St>ctor Scheme of Assistann' for Strengthening of Culture and Values in
Education is being implemented. Under this Scheme, financial assistance is
given to Governmental and non-Governmental organisations, Panchayati Raj
Institutions, etc., to tht' extent of 100 per cent of grant for the project proposals
approved subject to a ceiling of Rs ten lakh for strengthening cultural and
value education from pre-primary education system to higher education
including technical and management education.

Sanskrit has played a vital role in the development of all Indian Languages
and in the preservation of the cultural heritage of India. The Government of
India gives 100 per cent financial assistance through State Governments for
: a) eminent Sanskrit Scholars in indigent circumstances; b) Modernisation of
Sanskrit Pathshalas; c) Providing facilities for teaching Sanskrit in Highl
Higher Secondary Schools; d) Scholarships to students studying Sanskrit in
High and Higher Secondary Schools; e) Various schemes for the promotion
of Sanskrit; and ) improving the methodology of teaching Sanskrit in schools,
Sanskrit Colleges/Vidyapeeths. Presently the Scheme is under revision.

A Sanskrit Net has been launched under BhasIuz MondJami.


India 2005

Presidential Awards are given to eminent Scholars in Sanskrit, Pali,

Arabic, and Persian in recognition of their outstanding contribution towards
the propagation of the language, every year on Independence Day.
The Maharshi Sandipani Rashtriya Veda Vidya Prathisthan is an
autonomous organisation which promotes: a) Preservation, conservation and
development of the oral tradition of Vedic studies; b) Study of the Vedas
through Pathashalas as well as through other means and institutions; c)
Creation and promotion of research facilities; d) Creation of infrastructure and
other conditions for the collection of information and storage of relevant
Rashtriya Sanskrit Sansthan : Rashtriya San"krit Sansthan, New Delhi is an
autonomous organisation established by the Government in 1970. It is a nodal
agency for the propagation, promotion and development of Sanskrit Education
in the country. It is fully funded by the Government. Rashtriya Sanskrit
Sansthan has been granted the status of a Deemed to be University.
Rashtriya Sanskrit Vidyapeeth : Rashtriya Sanskrit Vidyapeetha, Tirupati,
provides courses of study from Prak Shasti (Intermediate) to Vidya Vardhi
(Ph.D.). The Vidyapeetha has upgraded the Department of Pedagogy 'to an
Institute of Advanced Studies in Education (lASE).
Shri Lal Bahadur Shastri Rashtriya Sanskrit Vidyapeeth : Shri Lal Bahadur
Shastri Rashtriya Sanskrit Vidyapeeth, New Delhi provides courses of study
from Shastri to Vidya Vachllspti (D. Lit.). From 1997-98 the Vidyapeeth started
diploma in vedic and refresher courses. Two degrees, namely, Vidya Vardhi
(Ph.D) and Manad Upaadhi (Honorary D.Lit). are also being offered by the


The National Book Trust, India an autonomous organisation was established

in 1957. The activities of the NBT are: (i) publishing; (ii) promotion of books
and reading; (iii) promotion of Indian books abroad; (iv) assistance to authors
and publishers and (v) promotion of children's literature. It produces books
in Hindi, English and fiftet>n other major Indian languages under its various
series and in Braille. Every alternate year, NBT organises the World Book Fair
in New Delhi, which is the largest book fair in Asia and Africa. The Trust
also observes 14 - 20 November every year as National Book Week.

New Delhi, the capital of India has been declared as the World Book Capital
during 2003. UNESCO, the International Publishers Association and a number
of other books-related international agencies, which have found India to be
the most suitable country to be given this honour have jointly taken this
decision. New Delhi, India has been selected from amongst a large number
of countries. The NBT was designated as the nodal agency to celebrate the
occasion. The World Book Capital was celebrated all over the country and



the year-long celebrations culminated on 23 April 2004, which is also

celebrated as World Book and Copyright Day.
Administering the Copyright Act, 1957, one of the several legislations in India
in the area of Intellectual Property Rights (lPRs), is the responsibility of the

Union Ministry of Human Resource Development. The Copyright Office was

established in January 1958 to regil'ter copyright of works under different
categories. The Central Government also registers copyright societies for doing
coypright business. The Copyright Act was comprehensively amended in 1994
takIng into account the technological developments. The amended Act was
brought into force on 10 May 1995. The Act is further amended in 1999 and
came into force on 15 January 2000. Under the r:oovisions of the Copyright
Art, 1957, the Government constituted a Board to be called the Copyright
Board. The Copyright Board is a quasi-judicial body consisting of a Chairman
and not less than two or more than fourteen other members. The Chairman
and other members of the Board are appointed for a term of five years. The
Copyright Board was reconstituted for a term of five years with effect from
22 February 2001. The Board hears cases regarding rectification of copyright
registration, disputes in respect of assignment of copyright and granting
licences in works withheld from public.
International Standard Book Number (ISBN) : Raja Rammohan Roy
National Agency for ISBN has introduced ISBN System in India in 1985.
National Agency for ISBN has been giving ISBNs to Indian Publishers,
Authors, government organisations such as Universities and Institutions, etc.,
for publishing of books. The ISBN is a unique International Publishers
Identifier Number meant for monographic publications. It is also known as
a short machine-readable identification number that makes a book separate
and easy to access. Since its inception, the National Agency allocated 8,531
prefixes to different publishers in different categories, which covers the period
up to May 2004.
Intellectual Property Education, Research and Public Outreach: During the
Ninth Plan period, two Plan Schemes, namely, (i) Scheme for Financial
Assistance on Intellectual Property Right Studies and (ii) Scheme of Organising
Seminars and Workshops on Copyright Matters were introduced for
implementation in August 1998. The Scheme for Financial Assistance on
Intellectual Property Rights Studies was introduced with an aim of creating
general awareness about IPR matters among academic community and
encouraging study of Intellectual Property Rights (IPRs) in the universities
and other recognised institutions, etc. The Scheme of organising seminars and
workshops on copyright matters was introduced for creating public awareness
about copyright-related issues, training of enforcement personnel, etc. Both
the schemes were merged into a single scheme-"Scheme of Intellectual
Property Education. Research and Public Outreach (IPERPOt together with
another Plan Scheme, namely, Financial Assistance on wro Studies, in the
Tenth Plan.


India 2005

Through these schemes, several Universities, Educational Institutions

and NGOs in the field are provided assistance every year to conduct research,
seminars, studies, hold conferences, establish IPR Chairs and Depositories.
Copyright Enforcement in India: The Indian Copyright Act, 1957, provide~
penalties for the offences committed under the Copyright Act and empowers
the police to take necessary action. The actual enforcement of the law is the
concern of the State Governments. However, during the last few years, the
Central Government has taken various steps to improve the enforcement of
the Copyright Act to curb piracy. These measures include the setting-up of
a Copyright Enforcement Advisory Council (CEAC), which has as its members
from all concerned departments and representatives of industry to regularly
review the implementation of the Copyright Act including the provisions
regarding anti-piracy. Several other measures taken by the Central Government
include, persuading the State Governments for: (i) the setting-up of Special
Cells in State Governments for enforcement of Copyright Laws; (ii) appointment
of nodal officers in the States for facilitating proper coordination between the
industry organisations and enforcement agencies; (iii) holding of seminars/
workshops, etc., for sensitising the public about Copyright Laws; (iv)
Collective Administration by Copyright Societies and (v) Holding of Conference
of Nodal Officers.
Cooperation with WIPO: India is a member of the World Intellectual
Property Organisation (WIPO), a specialised agency of the United Nations
which deals with copyright and other intellectual property rights and plays
an important role in all its deliberations.
An annual contribution of R<; 40 lakh is earmarked as a contribution to
WIPO, subject to foreign exchange rate fluctuations.
General Agreement on 'Trade in Services (GATS): The last round of General
Agn.>ement on Tariffs and Trade (GA'IT) in 19'i4 gave rise to multilateral
agreement on Trade under World Trade Organisation (WTO). Prior to
emergence of WTO, there was no multilateral agreement on services. WTO
came into existence on 1 January 1995. The next round negotiations in 1996
led to comprehensive agreement on international trade in services. The
objective of the agreement is progressive liberalisation of trade in services.
It is to provide secure and more open market in services in similar manner
as GAIT has done for trade in goods. Education is one of the twelve services,
which are to be negotiated under the General Agreement on Trade in Services
(GATS), Education has been divided into following five categories for the
purposes on negotiations: Higher Education. Secondary Education, Primary
Education. Adult Education. and other Education.
The GATS prescribes the following four modes of Trade in Services
including Education Services: (i) Cross-Bonier Supply of a service includes
any type of course that is provided through d.istanc:E education or the internet,
any type of testing service, and educational materials which can C1'068 national
boundaries; (ii) Consumption Abroad mainly involves the education of
foreign students and is the most common form of trade in educational service;



(iii) Commercial Presence refers to the actual presence of foreign investors

in a host country. This would include foreign universities setting-up c"urses
or entire institutions in another country; and (iv) Presence of Natural Persons
refers to the ability of people t) move between countries to provide
educational services.
No 'Request' or 'Offer' has been made so far for Education Services.
The National Policy on Education, 1986, updated in 1992 envisages paying
greater attention to the education of the educationally backward minorities
in the interest of equity and social justice. In pursuance of the revised
Programme of Action (POA) 1992, two new Centrally-sponsored schemes, i.e.,
(i) Scheme of Area-Intensive Programme for Educationally Backward Minorities;
and (ii) Scheme of Financial Assistance for Modernisation of Madarsa
Education were launched during 1993-94.
Over a time, it has been felt that all these schemes need to be
implemented in an integrated way so as to have wider coverage, greater thrust
and visibility of minority education programmes. In th' Tenth Plan the
aforesaid two schemes have been merged to form the 'Area-Intensive and
Madarsa Modernisation Programme.
India has been a member of the United Nations' Educational, Scientific and
Cultural Organisation (UNESCO) since 1946. The Government set-up an
interim Indian National Commission for Cooperation with UNESCO (INeCU)
in 1949, which was later put on a permanent footing in 1951. The Commission
consists of five Sub-Commissions namely, Education, Natural Science, Social
Sciences, Culture and Communication.
The main objective of the Commission is to advise the Government in
matters falling in the domain of UNESCO and to play a role in UNESCO's
work, particularly in the formulation and execution of its programmes. The
Minister for Human Resource Development is the President of the Commission
and the Secretary of the Government of India in the Department of Secondary
and Higher Education is its Secretary General. The membership of the
COmmission is of two categories; (i) Individual and (ii) Institutional Members
distributed among its five Sub-Commissions.
The National Commission acts as an advisory, coordinating and llaison
agency at the national level in respect of all matters within the competence
of UNESCO. It also collaborates with the National Commissions of the Region
and with UNESCO's Regional Offices, for fostering regional, sub-regional and
bilateral co-operation in education, science, culture and information.



ENERGY is an essential input for economic development and improving the

quality of life. Development of conventional forms of energy for meeting the
growing energy needs of society at a reasonable cost is the responsibility of
the Government. Development and promotion of non-conventional/alternate /
IWW and renewable sources of energy such as solar, wind and bill-energy, etc.,
are also getting sustained attention. Nuclear energy development is being
geared up to contribute significantly to the overall energy availability in the

Power development in India commenced at the end of the 19th century with
the commissioning of electricity supply in Darjecling during 1H97, followed
by commissioning of a hydropower station at Sivasamudram in Karnataka
during 1902. In the pre-independence era, the power supply was mainly in
the private sector that too restricted to the urban areas. With the formation
of State Electricity Boards during Five -Year Plans, a significant step was taken
in bringing about systematic growth of power supply industry all over the
country. A number of multi-purpose projects came into being and with the
setting up of thermal, hydro and nuclear power stations, power generation
started increasing Significantly.
The Ministry of Power is primarily responsible for the development of
electrical energy in the country. The Ministry is concerned with perspective
planning, policy formulation, processing of projects for investment decision,
monitoring of the implementation of power projects, training and man-power
development and the administration and enactment of legislation with regard
to thermal and hydro power generation, transmission and distribution. In all
technical and economic matters, Ministry of Power is assisted by the Central
Electricity Authority (CEA).
The construction and operation of generation and transmission projects
in the Central Sector are entrusted to Central Sector Power Corporations, viz.,
the National Thermal Power Corporation (NTPC), the National HydroelectriC
Power Corporation (NHPC), the North-Eastern Electric Power Corporation
(NEEPCO), and the Power Grid Corporation of India Limited (PGCIL). The
Power Grid is responsible for all the existing and future transmission projects
in the Central Sector and also for the formation of the National Power Grid.
Two joint-venture power corporations, namely, Satluj Jal Vidyut Nigam (SJVN)
(formerly known as NJPC) an9 Tehri Hydro Development Corporation
(THDC) are responsible for the execution of the Nathpa Jhakri Power Project
in Himachal Pradesh and projects of Tehri Hydro Power Complex in
Uttaranchal respectively. Three statutory bodies, i.e., the Damodar Valley
Corporation (DVC), the Bhakra-Beas Management Board (BBMB) ;md Bureau



of Energy Efficiency (BEE), are also under the administrative control of the
Ministry of Power. Programmes of rural electrification are provided financial
C1~sistance by the Rural Electrification Corporation (REC). The Power Finance
::-orporation (PFC) provides term-finance to projects in the power sector. The
lUtonomous bodies (societies), namely, Central Power Research Institute
CPR!) and the National Power Training Institute (NPTI) are also under the
ldministrative control of the Ministry of Power. A Power Trading Corporation
1a~ also oc'Cn incorporated primarily to support the Mega Power Projects in
Jrivate sector by acting as a single entity to enter into Power Purchase
<\gn'cments (PPAs).
:apacity Addition: To meet the projected power requirement by 2012 an
Idditional capacity addition of 1,00,000 MW is required in the next two Five
rear Plans. A capacity of nearly 41,110 MW would be set up in the Tenth
'Ian and the remaining in the Eleventh Plan with a stronger focus on hydro
)ower. The Central Sector would contribute 22,832 MW, the State Sector 11,157
viW and Private Sector 7,121 MW in the Tenth Plan. Another 25,051 MW
,",'orth power projects are under execution and 6,000 MW worth projects are
mder awards process.
The installed power generation capacity in the country has increased
rom 1,400 MW in 1947 to 1,12,058.42 MW as on 31 March 2004 comprising
1'7,968.53 MW thermal, 29,500.23 MW hydro, 1,869.66 MW wind and 2,720
v1W nuclear. A capacity addition programme of 5,245.52 MW has been fixed
or the year 2004-05. Considering the fact that a large chunk of proportion
If the installed capacity will come from the public sector, the outlay for the
)ower sector has been raised from Rs 45,591 crore during the Ninth Plan to
{s 1,43,399 crore in the Tenth Plan. This would include a gross budgetary
,upport of R" 25,000 crore and the remaining Rs 1,18,399 crore would be
ntemal and extra budgetary resources.
Power generation during 2003-04 was 558.134 BUs comprising 466.618
IUs thermal, 73.796 BUs hydro and 17.720 BUs nuclear. The target of power
;cneration for 2004-05 has been fixed at 566.590 BUs. The plant load factor
las shown a steady improvement over the years and has improved from 52.8
)er cent in 1990-91 to 72.7 per cent in 2003-04.
\.ccelerated Rural Electrification PrograDlme (AREP): Rural Electrification
nvolves supply of energy for two types of programmes: (a) Production)riented activities like minor irrigation, rural industries, etc.. and
b) Electrification of villages. Rural Electrification Programmes are formulated
Ind executed by the SEBs/State Power Departments. Under the rural
'Iectrification programme, 4,73,892 villages out of 5,87,556 villages were
'Iectrified up to March 2004. Similarly, 1,40,02,634 pumpsets were energised
Ip to March 2004 out of the total estimated potential energisation of 19.5
nillion pumpsets. Under Kutir Jyoti Programme over 62.31 lakh single point
onnections were released at a cost of about Rs 516.39 crore to the rural
louseholds of families below poverty line by March 2004.../)


India 2005
'Jo give impetus to rural electrification, the Government would pay


attention for creation and augmentation of Rural Electridty Distribution

BackbOlw <ll1d Village Electridty Infrastructure so as to cover all unelectrified

vill"ges ilnd rural households within a span of five years, Rural Electridty
Supply Technology Mission (REST) has been set up to oversee tht>
impleml'ntation of schemes under AREP. ')
(50,000 MW Hydro-Initiative: Hydro power is a renewable and

l'llvironmentally benign source of energy. India has a very large potential of

which only II' per cent has been exploited. The 50,000 MW Hydro-initiative
launched last year has been completed and pre-feasibility reports for many
schemes are now available for development particularly in the North East and
in the states of J&K, Himachal Pradesh and Uttaranchal. The schemes have
bl'l'n prioritised based on their techno-economic feasibility so as to ensure that
hydro power development is taken up in an appropriate sequence. During
till' last one year, 2,950 MW of hydeJ power projects were commissionea.
1,00,000 MW Thermal Initiative: The 16th Electric Power Survey (EPS)
carritd by the Central Electricity Authority has projected a peak demand of
1,15,705 MW and an energy requirement of 7,19,907 MU by the end of Tenth
Plan while the requirement by the end of Eleventh and Twelfth Plan has been
projected as 1,57,107 MW and 2,12,759 MW respectively.

Keeping in view the huge power generation capacity requirement to be

added during the Eleventh and Twelfth Plan periods, an urgent need is felt
for lar~e-scillc thermal power development in an environment-friendly manner
and thus the Government plans to launch 1,00,000 MW Thermal Initiative.
Powt'r Grid has envisaged establishing an integrated National Power Grid in
the country in a phased manner by the year 2012. The first phase was
completed in 2002, wherein regional grids were mainly connected by HVDC
back-to-back stations, and inter-regional power transfer capadty of 5,000 MW
was established. The implementation of second phase has already commenced
and with commissioning of Talcher-Kolar HYDe bipole (2000 MW) and
Raipur-Raurkela (1000 MW) transmission system, inter-regional power transfer
capacity has grown to 8,000 MW. It has created a synchronous grid from
Arunachal Pradesh to Goa spanning across a length of 2,500 km, encompassing
an area of 16lakh sq km, with an installed capacity of over 50,000 MW. Second
phase of National Grid having inter-regional capacity of 23,500 MW would
bt, completed by the year 2007, depending upon materialisation of planned
generation projects. The third phase would involve development of high
capacity transmission highways, interconnecting Eastern and Northern Regions
with inter-regional transfer capacity of 30,000 MW by the year 2012.

The Central Electricity Authority (CEA), assists in all technical, financial and
economic matters. It is responsible for technical co-ordination and supervision

of programmes and is also entmsted with a number of statutory functions.
The CEA is particularly charged with the functions of developing a sound,
adequate and uniform national power policy, formulate short-term and longterm perspective plans for power development. It coordinates the activities
of planning agencies in relation to the control and utilisation of national power
resources, technical and commercial appraisal of power schemes, collection
of data, evaluation of financial performance of State Electricity Boards (SEBs),
analysis of tariff structure in the power industry, training of personnel and
promotion of research in power related matters. CEA is also charged with
the responsibility of monitoring of construction and operation of thermal,
hydro and power system schemes. A new dimension has been given to CEA
for monitoring of power reforms processing various states in respect of signing
of MoUs, unbundling of SEBs, constitution of SERCs and issuance of tariff
State Reforms Acts: Orissa, Haryana, Andhra Pradesh, Uttar Pradesh,
Uttaranchal, Karnataka, Rajasthan, Madhya Pradesh, Delhi and Gujarat have
enacted their State Electricity Reforms Acts, which provide, inter-alia, for
unbundling / corporatisation of SEBs, setting up of SERCs, ctc. The SEBs of
Orissa, Haryana, Andhra Pradesh, Karnataka, Uttar Pradesh, Uttaranchal,
Rajasthan, Delhi and Madhya Pradesh have been unbundled/corporatised.
Distribution was privatised in Orissa and Delhi.
State Electricity Regulatory Commissions : Twenty-three states have either
constituted or notified the constitution of SERe. Eighteen SERCs have issued
tariff orders.

Anti-theft legisiation : Several States, viz., Andhra Pradesh, Karnataka, Madhya

Pradesh, Uttar Pradesh, West Bengal, Maharashtra, Kerala, Gujarat and Bihar
have rasseo I crafted anti-theft laws.
The Electricity Act, 2003 has been enacted and the prOVISIOns of this Act
(except section 121) have been brought into force from 10 June 2003. With
the coming into force of the Electricity .Act, 2003 the Indian Electricity Act,
1910, Electricity (Supply) Act, 1948 and Electricity Regulatory Commissions
Act, 1998 stand repealed. The main features of the Act are as ~ollows :
(i) The Central Government to prepare a National Electricity Policy in
consultation with state governments; (ii) Thrust to complete rural electrification
and provide for management of rural distribution by panchayats, cooperative
societies, non-government organisations, franchises; etc.; (iii) Generation has
been delicensed and captive generation freely permitted. Hydro projects
would, however, need clearance from the Central Electricity Authority;
(iv) Transmission Utility at the Central as well as state level, to be a
government company - with responsibility for planned and coordinated
development of transmission network. Provision for private transmission


India 2005

licensees; (v) Open access in transmission from the outset with provision for
surcharge for taking care of current level of cross subsidy with the surcharge
being gradually phased out; (vi) Distribution licensees would be free to
undertake generation and generating companies would be free to take up
distribution licensees; (vii) The State Electricity Regulatory Commission made
mandatory; (viii) Provision for licence-free generation and distribution in the
rural areas; (ix) The SERCs required to permit open access in distribution in
phases with surcharge for current level of cross subsidy to be gradually
phased out along with cross subsidies and obligation to supply; (x) Provision
for payment of subsidy through budget; (xi) For rural and remote areas stand
alone systems for generation and distribution permitted; (xii) Trading, a
distinct activity is being recognised with the safeguard of the Regulatory
Commissions being authorised to fix ceilings on trading margins, if necessary;
(xiii) Thl' State Governments have flexibility to unbundle the SEBs or continu(.>
with them as distribution lict'nsees and State Transmission Utility; (xiv) The
Bill does not prescribe any model of reform, instead provides flexibility to
the State Government to choose the model suiting to their conditions; (xv)
Metering of all electricity supplied made mandatory; (xvi) An Appellate
Tribunal to hear appeals against the decision of the CERC and SERCs; and
(xvii) Provisions relating to theft of electricity made more stringent.
The Central Government is in the process of formulating National
Electricity Policy, National Tariff Policy and National Rural Electricity policy
under .the provisions of the Act. In pursuance of the Act, the consent of the
Central Government has been conveyed to thirteen States for continuation of
SEB for a further period of up to one year.

The Government has launched the Accelerated Power Development Reforms

Programme (APDRP) which aims at upgradation of Sub-Transmission and
Distribution system, in the country and improvement in commercial viability
of State Electricity Boards by reducing the aggregate technical and commercial
(AT&C) losses to around 15 per cent as against the existing over 50 per cent.
This will ensure reliability and quality of power supply with adequate
customer satisfaction. This involves a Six Level Invervention Strategy that
encompasses initiatives at National Level, State Level, State Electricity Board/
Utilities level, distribution circle level, feeder level and the customer level.
This strategy aims at technical, commercial, financial and IT invervcntion,
organisation and restructuring measures and incentive mechanism for cash
loss reduction.
The APDRP has two components: (a) investment component for
strengthening and upgradation of the sub-transmission and distribution
system - the Central Government provides additional Central assistance to
the States for strengthening and upgradation of sub-transmission and
distribution network. The Government has sanctioned 410 projects amounting
to Rs 16,610.19 crore in 29 States all over the country during last two years.
(b) under the incentive component, an incentive equivalent to 50 per cent of



the actual cash loss reduction by SEBs/Utilities is provided as grant. The

disbursement for the year 2003-04 was Rs 2,859.81 crore for both the
components under the scheme.
The Government announced a policy in 1991 which allowed private sector
participation in power generation schemes. It was decided in February 1995
that no private power project proposal would be considered by Central
Electricity Authority (CEA), if the project was not awarded through the
invitation of tenders under the international competitive bidding (ICB) route
aftl'f a cut-off date of 18 February 1995. However, certain categories of power
projects, where the MOU / negotiation route is considered feasible, have been
exempted from the requirement of ICB for award of tht' project. Since 1991,
,1 total of 37 private power projects of around 7,400 MW capacity have been
commissioned and twelve projects of around 4,500 MW capacity are under
To facilitate setting up of large sized thermal power plants in the country
and in order to derive the economies of scale, a mega power policy has been
introduced. Nineteen projects were identified in November 1998 as mega
power projects both in public as well as private sector. Power Trading
Corporation (PTC) has been incorporated, for the purpose of buying power
from mega power projects under long-term Power Purchase Agreements
(PPAs) and selling the same to the beneficiary states also under long-term
PPAs. Certain fiscal concessions were given to mega power projects to make
the tariff cheaper. the policy was further liberalised and any inter-state project
which meets the minimum threshold capacity limit, i.e., 1,000 MW for thermal
and 500 MW for hydel would be eligible to get the mega project benefits.


The National Thermal Power Corporation Limited (NTPC) was incorporated
in November 1975 with the objective of planning, promoting and organising
integrated development of thermal power in the country. NTPC is a schedule
'A' Navratlla company having a total approved investment of Rs 79,336.67
crore. The Corporation has under operation/implementation coal based super
thermal power plants projects at thirteen locations and combined cycle gas
power projects at seven locations. The commissioned capacity of NTPC owned
stations as on 31 March 2004 is 21,749 MW. In addition, it has acquired 314
MW of captive power plants of Steel Authority of India Limited (SAIL)
through formation of joint venture companies with it. During the year 200304, an all time high generation of over 1,49,161 MUs was achieved registering
an increase of 5.9 per cent over the previous year's generation of 1,40,868 MUs.
NTPC achieved ever-highest PLF of 84.4 per cent since inception. Besides its
own stations, NTPC also manages the Badarpur Thermal Power Station (BTl'S)


India 2005

in Delhi (705 MW). It is at present implementing eight power projects with

a capacity of 8,010 MW. Corporatl' Plan adopted by NTPC envisages it to
become a 40,000 MW plus company by the year 2012.
NTPC Hydro Limited is a wholly-owned subsidiary to carry out business
of implementing and opt'rating small and medium hydro power projects of
up to 250 MW capacity. NTPC has signed MoU with REC for setting up
Decentralised Distribution Generation scheme for rural electrification through
Non-conventional energy sources. NTPC Vidyut Vyapar Nigam (NVVN) a
subsidiary of NTPC transacted business with 18 State utilities trading in more
than 1,300 MUs in 2003-04. Consultancy wing of NTPC achieved tum over
of Rs 24.7 crore and profit of Rs 7.45 crore during the year 2003-04.
Thl' National Hydroelectric Power Corporation is a schedule 'A' enterprise
of the Government with an authorised share capital of Rs 15,000 crore at
present with investment base exceeding Rs 20,000 crore. It has been granted
ISO-9001 and ISO 14001 certificates for its Quality Management system and
Environment Management system for Corporate Office.
NHPC has got nine commissioned power stations with the installed
capacity of 2,475 MW and drawn a programme to add 4,357 MW of hydro
capac.ity in the Tenth Plan (2002-07) and 16,004 MW in the Eleventh Plan
(2007-12). It has formed joint venture with Government of Madhya Pradesh
to executt' two hydro projects with an aggregate capacity of 1,520 MW.
NHPC Power Stations generated 11,045.52 MUs and achieved capacity
index of 97 per cent during the financial year 2003-04. It earned gross sales
of Rs 1,411.52 crore and net profit of Rs 581.01 crore for the financial year
2003-04. It is a profit making organisation and registering profit consistently
for many years in a row and has been rated "Excellent" in MoV targets.
NHPC was entrusted to prepare PFR (Pre-Feasibility Report) of 43
number of hydro projects under 50,000 MW hydro power initiative. The PFRs
of all the 43 projects totaling installed capacity of 21,345 MW have been
prepared and submitted to CEA.
NHPC has been providing consultancy services in the area of hydro
power development for generating additional revenue in the form of
consultancy business. Consultancy assignments amounting to Rs 97.4 croft'
were awarded to it during the financial year 2003-04. It is registered as a
consultant in the area of Hydro Power with international funding agencies
like World Bank, Asian Development Bank, African Development Bank, etc.
The Power Grid Corporation of India Limited (pGCII.) was incorporated as
a Government enterprise on 23 October 1989 for establishment and operation
of regional and national power grids to facilitate transfer of power within and
across the regions with reliability, security and economy on sound commercial
principles. It has been recognised as a mini-ratno category-I PSU.



As on 31 March 2004, POWERGRlD is operating about 47,757 ckt kms

of transmission lines consisting of 563 ckt kms of 800 k V, 4,368 ckt kms, of
HVDC system, 33,281 ckt kms of 400 kV, 7,356 ckt kms of 220 kV and 2,152
ckt kms of 132 kV and 37 ckt kms of 66 kV lines along with 82 sub-stations
with 46,461 MVA transformation capacity. The transmission system availability
is maintained consistently over 99 per cent by deploying best operation and
maintenance practices at par with international utilities. Based on its network
~.ize and operational efficiency, POWER~~ iUllOllg- one ~)f_ t~~ largest
and bes!_~naged transmission utilItY in th~ W9!!'i:.. Presently, about 40 per
cent of total power generated in the country is being transferred over
I'OWERGRI~siol1 . .!'_etwork. During the year 2003-04, organisation
has earned a net profit of about Rs 740 crore on a turnover of about Rs 2,783
crore and commissioned 1,512 ckt kms of transmission lines and 3 new sub:
station and added transformation capacity of.-..--_.
1,725 MVA
__ .

rOWERGRID is establishing Unified Load Dispatch and Communication

(ULDC) schemes in all the five regions, namely, Northern, Western, Eastern,

Southern and North-Eastern regions of Indian power system. The ULDC

.~ch('mes have been envisaged to operate, monitor and control the regional
power grid in a unified, well coordinated and integrated manner.
POWERGRILJ is also in the process of establishing an integrated National
Power Grid in the country in a phased manner by the year 2012. The first
phase with an inter-regional power transfer capacity of 5,000 MW was
l'Ompleted in 2002. The implementation of second phase has already commenced
and with commissioning of Talcher-Kolar HVDC bipole (2,000 MW) and
Raipur-Raurkela (1,000 MW) transmission system, inter-regional power transfer
capacity has grown to 8,000 MW. Second phase of National Grid having interregional capacity of 23,500 MW would be completed by the year 2007,
depending upon materialisation of planned generation projects The third
phase would involve development of high capacity transmission highways,
interconnecting Eastern and Northern Regions with inter-regional transfer
capacity of 30,000 MW by the year 2012.
POVVERGRlD has diversified into Telecom business to utilise spare
elecommunication capacity available with its Unified Load Dispatch Centre
ULDC) schemes and leveraging on its country wide transmission infrastructure.
Under Accelerated Power Development and Reforms Programme (APDRP),
it has been assigned the role of Advisor-cum-Consultant to lend its managerial
imd technical expertise lor developing 105 distribution circles spread over 18
States. It has also undertaken implementation of projects under this programme
on turnkey on bilateral basis in States like Goa, Bihar and Meghalaya. In
addition, it is also executing Rural Electrification works of 2,400 villages in
Bihar on behalf of BSEB costing about Rs 174 crore, covered under Pradhmr
Mantri '$ Gramodaya Yojana (PMGY).


The Rural Electrification Corporation Limited (REC) was incorporated as a


India 2005

Company under the Companies Act, 1956 in 1969 with the main objective
of financing rural dectrification schemes in the country. The current mission
of REC is to facilitate availability of electricity for accelerated growth and for
enrichment of quality of life of rural and semi-urban population and to act
as a competitive, client-friendly and development oriented organisation for
financing and promoting projects covering power generation, power
conservation, power transmission and power distribution network in the
Over tht last 35 years, REC has cumulatively sanctioned Rs 63,456 crore
for 40,696 projects and disbursed Rs 37,110 crore as on 31 March 2004 as
financial assistance on relatively softer terms to the SEBs, Electricity Departments
of State Governments and other Power Utilities. Up to 31 March 2004, 3,05,064
villages have been reported electrified and 82,07,482 pumpsets have been
reported energised under the projects financed by REC. It has disbursed till
the end of 31 March 2004 an amount of Rs 6,017 crore for system
strengthening, intensive electrification of already electrified areas, energisation
of pumpsets and also for various generation projects. It has introduced new
category of scheme in February 2003 for providing loan assistance to State
Governments at concessional interest rates of one per cent per annum for
electrification of dalit bastis and three per cent per annum for villages and
The Power Finance Corporation Limited (PFC), New Delhi, was incorporated
on 16 July 1986 and was declared a public financial institution in August 1990.
The main objectives of the Corporation include, financing of power generation
projects, transmission and distribution works, renovation and modernisation
of power plants, system improvement and energy conservation schemes,
maintenance and repair of capital equipment.
The authorised share capital of the Corporation is Rs 2,000 crore and
paid-up capital is Rs 1,035.45 crore. Ttll 31 March 2004, Corporation has
sanctioned loans in the power sector amounting to Rs 60,975 crore and had
disbursed Rs 40,690 crore against these sandions. It has been declared as Mini
Ratna (category I) PSU. The Corporation has been consistently earning profits
since commencement of its financial operations. The post tax profit has been
Rs 1,617 crore for 2003-04. During 2003-04 the Corporation sanctioned an
amount of Rs 16,472 crore while the disbursement was Rs 8,975 crare. PFC
has received MOU Excellence Award from Hon'ble President of India recently.
The North-Eastern Region is blessed with the highest hydro power potential
in the country which is estimated at about 58,971 MW, out of which less than
two per cent of this potential has so far been harnessed. Besides this, there
is considerable thermal power potential, mainly in terms of gas reserves. With
a need to develop this huge power potential, North-Eastern Electric Power



Corporation (NEEPCO) was incorporated on 2 April 1976 as a wholly--owned

Government enterprise under the Ministry of Power, to plan, promote,
investigate, survey, design, construct, generate, operate and maintain power
stations in the NE Region. The authorised share capital of the corporation
presently stands for Rs 3,500 crore. The installed capadty of NEEPCO is 1,130
MW comprising of 755 MW of hydropower and 375 MW of gas based power.
Thc corporation currently meets more than sixty per cent of the energy
requirement of the North Eastern Region. It is an ISO 9001 : 2000 Company
wiLl-t its Corporate Office at Shillong.
Tht' Corporation plans to increase its generation capadty up to 4,230
MW during Eleventh five-year Plan. The five projects of total capadty of 2,650
MW are under execution by NEEPCO. During the period from 1 January 2003
to 31 March 2004, it generated 2,124 MUs from hydro stations and 2,733 MU
from thermal stations. It has also taken up the work of preparation of
Preliminary Feasibility Reports of 18 identified projects with an aggregatt~
capacity of mo~ than 5,000 MW in the NER under the 50,000 MW Hydro
Electric Initiative.


The Satluj Jal Vidyut Nigam (SJVN) Limited (formerly Nathpa Jhakri Power
Corporation Limited) was incorporated on 24 May 1988 as a joint venture
of the Government of India (GOl) and the Government of Himachal Pradesh
(GOHP) to plan, investigate, organise, execute, operate and maintain hydroelectric power projects in the Satluj basin in Himachal Pradesh. The present
authorised share capital of SJVN is Rs 4,500 crore. The equity-sharing ratio
of Gal and GOHP is 3:1 respectively. In addition to the finandal assistance
from the World Bank, SJVN has also been financed as a loan by a Consortium
of European Banks and the Power Finance Corporation.
The Nathpa Jhakri Hydro-electric Project (1,500 MW) is the first project
undertaken by SJVN. All the six units of 250 MW of Nathpa Jhakri Hydroelectric Project have been successfully test synchronised. Rampur Hydroelectric Power Project (439 MW) is another project being executed by SJVN.
It is also planning to take up the execution of more projects in the Satluj river
basin in the Himachal Pradesh during the Tenth-Eleventh Plan period.



THDC, a Joint Venture Corporation of the Government of India and

Government of U.P., was incorporated in July 1988, to Plan, promote and
organise an integrated and efficient development of hydro resources of
Bhagirathi river and its tributaries at Tehri and complementary downstream
development (the Tehri Complex) for power generation and other purposes
in all its aspects and to undertake in a similar manner the development and
harnessing of such hydroelectric sites/projects in Bhagirathi/Bhilangana
The Corporation has an authorised share capital of Rs 3,000 crore. The


India 2005

Corporation is presently engaged in the implementation of Tehri Hydro Power

Complex (2,400 MW) comprising of Tehri Dam and HPP, Stage-I (1,000 MW)
and 400 MW Koteshwar HE Project and Tehri Pumped Storage Plant (1,000
MW). The Tehri Stage-l is in advance stage of completion and is scheduled
for commissioning in the year 2()O4-05. The work on Koteshwar HEP is in
progress and is scheduled for commissioning in the year 2006-07.
Thc Tehri Hydro Power Complex (2,400 MW) will generate 6,200 million
units of energy per year on its completion (3,568 million units on completion
of Tehri Stage-f) and will provide addition irrigation facility to 2.70 lakh ha
of land. Besides stabilising existing irrigation facility in 6.04 lakh ha of land.
The Project will provide drinking water facilities for 40 lakh people in Delhi
and for 30 lakh people in town and villages of Uttar Pradesh.
The Damodar Valley Corporation (DVC), the first multipurpose river valley
project of the Government \\'as set up in July 1948 for the unified development
of Damodar Valley region spH'ad owr the states of Jharkhand and West
Bengal. It's objtctives include flood control and irrigation, water supply and
drainage, gelll'ration, transmission and distribution of electrical energy, both
hydro-electric and thermal, afforestation and control of soil erosion, public
health and agricultural, industrial, economic and general well-being in the
Damodar Valley. The DVe's main projects include four dams at Maitho",
Panchet, Tilaiya and Konar, with COI1l1l'cted hydro-electric power stations
(except at KOllar), thermal power station at Bokaro 'A', Bokaro 'B' Chandrapura,
Durgapllf, Mejia and also one gas turbine station at Maithon. DVC supplies
power to coal mines, steel plants, railways and other big industries, besides
Stab;' Electricity Boards of Jharkhand and West Bengal. The total derated
capacity of DVe in April 2004 was 2,761.5 MW comprising 2,535 MW of
thermal, 144 MW of hydl'l dnd 82.5 MW from gas turbine station. DVCs
transmission system runs to a total length of 6,021 ckt km. Th(' system is
supported hy 56 sub-stations and receiving stations. As a constituent of
Eastern Regional Grid, it is exporting surplus power to the deficit regions of
thl' country through thl' natiol.lal grid.
Thp Bhakra-Beas Management Board (BBMB) manages thc facilities cn-ated
for harnl'ssing the waters impounded at Bhakra and Pong in addition to those
diwrted at Pandoh through the BSL Water Conductor System. 1t was also
assigned the responsibility of dl'livel :ng water and power to the beneficiary
stall's in a ccordell1Cl' \vith their cntitled shares. The Board is responsible for
the admini~tr<ltion, lTIilinll'nal1l'l' and operation at BL1kra Nangal Projf'ds,
BeelS ]'Wjl'ct Unit I and Unit II including Power Houses and a network of
Il'cll1smissioll lint's and grid sub-stations. 'nl(, power g('neration of BBMB
p(lwl'r stations i!-. lwing evacuated through 8BMB power evacuation system
J'fllliling into .1,755 circuit km ]('ngth of 400 KV, 220 KY, 132 KV and 66 KV



transmission lines and 24 EIN sub-stations. The installed capacity of BBMB

power plants is 2,873.15 MW. The generation during 2003-04 was 11,441 MUs.
The Power Trading Corporation of India Limited (PTC) was set up in April
1999 with a mandate to catalyse development of Mega Power Projeds and

other Power Projects by acting as a single entity to enter into Pow!:'r Purchasl'
Agrt.'Cments (PPAs) with Independent Power Producers (IPPs) on tl1t' one side
and multipartite PPAs with users/SEBs under long-term arrangement on thl'
other, thus insulating the lIPs from protracted negotiations with multipartite
SEBs and receivable risks. The Government has identified PTC as a nodal
agency to deal with matters relating to exchange of power between India and
its neighbouring countries.
The PTC started trading with limited transactions during 1999-2000
(28.35 MUs) but trading on sustained basis commenced from June 2001 which
has grown to a figure of 11,016 MUs as on 31 March 2004. PTe has also
introduced 'differential pricing' concept for 'round the clock' and 'off-peak

The National Power Training Institute (NPTI), is a registered society and <111
ISO 9001 :2000 and ISO 14001 organisation is the head Institute for training
ilnd human resource development in power sector. With its Corporte Ct'l1tn'
ilt Faridabad, NPTI operates on an all-India basis through its fiw regional
institutes in different power zones of the country. The Corporate Centrt' and
its institutes are well equipped with world class hi-tech infr'l' lrudural
facilities for conducting different courses on technical as well as management
subjects. NPTI has trained more than 87,000 power professionals in its regular
programmes besides sensitising more than 93,000 people in Public Awarenl'ss
Programmes in Energy Conservation, Power Reforms, Electrical Safety ilnd
Energy-Environment linkage across the country. 210 MW and 500 MW Rl'(ll
time Power Plan Simulators have bt..>en set up at corporate centre and n'gional
institutes and over 6,700 operators/ engineers/ supervisors haw been trained
on thes<~ simulators.
Over 40 self-paced, menu-driven, cost-effective multimedia ('I)ll1pult't'
based training packages have been dev~loped and marketed hy NPTI. 115
attempts to weave formal education with industry oriented inputs ffiillerialised
with the launching of MBA in Power Management four years dq;ree, course
in B. Tech/B.E. (Power) and Post-Graduate Diploma in Thermal Power Planl
Engineering. These AICfE approved courses have an overvvhdming response
and the trained manpower are being recruited by various Public / Private
sector organisations through campus interviews as well. NPTJ has been able
to attract trainees from other countries.
The Central Power Research Institute (CPRI), a society registered under the


India 2005

societies Registration Act under the Ministry of Power, serves as a National

Laboratory to carry out applied research in Electrical Power Engineering. It
also functions as an independent National Testing and Certification Authority
for Electrical equipments for ensuring their reliability and improves, innovatt'
and develop new products and processes.
The Institute, since is existence for over four decades has built sophisticated
facilitips both in the afPas of research and testing. The important facilities
include 2,500 MVA Short-Circuit lesting with Synthetic Testing Facility at
Bangalore, Ultra High Voltage Research Laboratory at Hyderabad, ShortCircuit Testing Facility at Bhopal, Thermal Research Centre at Koradi, Nagpur
and Energy Research Centre at Thiruvananthapuram to cater to the R&D and
testing needs of the Power Sector. A state-of-art test facility for seismic
qualification of power equipment and Real Time Digital Simulation Facility
have lx>en set up and commissioned.
The most of CPRI's laboratories are accredited under National
Accreditation Board for Testing and Calibration of Laboratories (NABL), the
national body for accreditation of laboratories as per ISO I IEC 17,025 norms.
It has been given the 'Observer Status' in the group of Short-Circuit Testing
Liaison (STL) of Europe. Its laboratories are approved for testing for certain
products like communication cables, LT Capacitors, etc., by Under Writers
Laboratories (UL) and Canadian Standard Association (CSA).
Over the years CPRI has built up expertise in the areas of transmission
and distribution systems, power quality, energy metering energy auditing,
transmission line, Tower design, conductor vibration studies, power systems
instrumentation, transformer oil reclamation and testing, diagnostic studies,
condition monitoring and estimation of remaining life of equipment, new
materials for power system application, UHV testing, sort-circuit testing, HV
testing, seismic qualification of equipment and other related fields. It offers
consultancy services in these areas. The Institute has tie-up with many
international research and test houses like EdF, France, CESI, Italy and EPRI,
USA, etc.


The Bureau of Energy Efficiency (BEE) was established on 1 March 2002 by
merger of the Energy Management Centre (EMC) as per the provisions
contained in the Energy Conservation Act, 2001 and is the nodal agency to
implement the various provisions of the Energy Conservation Act. It is
responsible for spearheading improvements in energy efficiency in different
sectors of the economy through various regulatory and promotional instruments.
The mission is to develop policies and strategies focusing on self regulation
and market principles, within the overall framework of the Energy Conservation
Act, 2001 with the primary objective of reducing energy intensity of the Indian




The Central Electricity Regulatory Commission (CERC), an independent

statutory body with quasi-judicial powers was constituted on 25 July 1998.
It consists of a chairperson and four other members. Under the Electrify Act,
2003, the Commission shall inter-alia discharge the functions of regulating the
tariff of generating companies owned or controlled by the Central Government
ancl the inter-state transmission of electricity and deternlining tariff for it.

The commission has issued finill regulations on Open Access in interstate transmission and grant of power trading license. Thl> regulations
governing terms and conditions of tariff the period commencing ] April 2004
haw also been specified. The commission has also opened its web site
( which is regularly updated by posting all the programmes
and orders of the commission from time to time. The Commission disposed
of 155 petitions during 2003-04.

Coal is the main source of energy in the country and accounts for about 67
per cent of the country's commercial requirement. It is also an essential input
in steel and carbo-chemical industries.

As on 1 January 2004 coal reserves of India (down to a depth of 1200 meters)

have been estimated by the ,-~eologica[ Survey of India at 2,45,693 million
Lonnes. State-wise / category-wise distribution of coal reserves is given in
table 11.1
(million tonnes)

Andhra Pradesh
Arunachal Pradesh
Madhya Pradesh































India 2005













( )ris~a








West Illngal










Utl.u Pradesh

Tht' Coal production during 2003-04 was 361.17 million tormes (provisional)
(Coal India limited (CIl) 306.39 million tonnes, Singareni Collieries Company
Limited (SeCL) 33.85 million tonnes, Captive collieries 20.93 million tonnes].
In the year 2000 a new ,Solliery ~~!,!!.Ql_Order,__ ~QQQ_.was promulgated
which deregulated price-fixation oi all grades from 1 January 2000. Coal is
distributed on the basis of linkages / sponsorship. Short-term linkages of
important sectors like power and cement are decided on quarterly basis by
Standing Linkage Committl.>t' set up by the Government. Linkages to non-core
sector consumers are within the purview of Coal India Limited (CIL)_ As per
the nt'w coal sale policy for non-core sector these linkages are to be replaced
by Fuel Supply Agreements (FSAs) between the coal companies and consumers.
Offtake of coal during 2002-03 and to 2003-04 to major sectors of the economy
is give in table 11.2 :
(All India)
(million !onnes)
























, Provisiondl
: Excluding imports


The coal projects costing up to Rs 100 crore can be sanctioned by the Board
of Directors of Coal India Limited (CIl), and coal projects costing up to
Rs 50 crore can be sanctioned by the Board of Directors of Northern Coalfields
Limited (NCL), Western Coalfields limited (WCL), South Eastern Coalfields
Limited (SECL), and Mahanadi Coalfields Limited (MCL) subject to certain



Project costing more than Rs 100 crore are sanctioned by the Government.
After nationalisation of the coal industry in 1973 tiJI March 2004, the number
of projects sanctioned was 435 with a total investment of Rs 22,002.20 crore.
Out of 435 mining projects (costing more than Rs two crore), 332 projects have
since been completed and 103 projects are under various stages of
implementation. These projects on completion will have a capacity of 368.80
million tonnes of coal per annum.

Conservation of coal enjoins maximum recovery of in-situ reserves of coal.
The coal deposits in India occur mostly in thick seams and at shallow depths.
These aspects are taken into account during mine planning and operation in
ensuring maximum recovery. Mechanised open cast mining in India is an
important technology of coal production of thick seam from shallow depth.
Thl' percentage recovery by this method is up to 90 per cent of the ill-situ
coal reserves. The coal production from open cast method in Indian mining
is more than 80 per cent of total production. This trend is likely to continm'
in near future. The thick seam deposiLs earlier developecUn Board and Pillar ___.,_
(B&~_metbod -.or other methods of underground mining which had been
starlding on pillars for long in absence of a suitable technology of extraction
have now in many cases becomt' extractable by opencast mining. This method
has been tried with success in some of the mines where underground mining
was carried out in the past under tht' relatively shallow cover. ~e longwall
methods are being applied in the case of underground mines to achieve higher
underground production with higher percentage of recovery. The overall
recovery in longwall technology is comparatively more than the recovery in
B&P mining.
The Coal Conservation and Development Act, 1974 provides for imposition
of excise duty on coal despatches for meeting activitiesUke conservation of
coal, development/introduction of new technology in coal mines, safety in
mines and assistance in mining operation. A. number of research and
development activities in coal sector are carried out under the overall
guidance and supervision of the Standing Scientific and Research Committee
and its four sub-committees.


Special efforts to improve the standard of safety in the coal industry have
brought down the rate of fatalitie~r million tonne of output in Coal India
to 0.20 in the year 2003. A Standing
Limited from 2.62 in the year 1':1
Committee on Safety regularly reviews safety standards in coalmines.
Coal India Limited had 4.84 lakh employees as on 1 April 2004 and the
coal industry employs over seve.1 lakh workers. Since the nationalisation of
coal-mines, welfare of coal miners by way of providing facilities like housing,
water supply, medical care, education, etc., is being given greater attention.


India 2005


Lignite reserves in India have been estimated at around ~~,--6J{U]1illion tonnes

as on 1 January 2003. Out of this, 4,150 million tonnes i's in the Neyveli area
of Cuddalore district in Tamil Nadu of which about 2,360 million tonnes has
bet'n proved. Geological reserves of about 1,168 million tonnes of lignite have
been identified in Jayamkondacholapuram of Trichy district in Tamil Nadu.
In Mannargudi and East of Veeranam (Tamil Nadu) geological reserves of
around 22,898 million tonnes and 1,342.45 million tonnes of lignite have been
estimated respectively. Lignite reserves have Deen identified in Rajasthan,
Gujarat, Jammu and Kashmir and Kerala to the extent of 3,099 million tonnes,
1,778 million tonnes, 128 million tonnes and 108 million tonnes respectively.
Lignite reserves at Neyveli are exploited by Neyveli Lignite Corporation
Limited (NLC). Incorporated as a privatt> limited company in 1956, NLC was
wholly-owned by the Government and converted into a public limited
company with effect from 7 March 1986. Over the years, it has acquired
considerable expertise and has established itself as a premier organisation in
the field of lignite-mining and lignite based power generation. The NLC is
an integrated complex consisting of thret' lignite mines and three thermal
power stations.
During 2003-04, NLC produced 205.57 lakh tonnes of lignite and
16,388.21 million units of power.


The importance of renewable energy was recognised in the country in
the early 19705. India has today one of the largest programmes for renewable
energy. The activities cover all major renewable energy sources, such as biogas,
biomass, solar, wind, small hydropower and other emerging technologies.
Several renewable energy systems and devices are commercially available.
The Ministry of Non-Conventional Energy Sources (MNES) is the nodal
Ministry of Government for all matters relating to new and renewable
The renewable energy programmes cover the entire gamut of technologies,
including improved wood stoves, biogas plant, biomass gasifier, solar thermal
and solar photovoltaic systems, wind mill, co-generation, small hydro power,
energy recovery from urban/municipal and industrial wastes, geothermal
energy, hydrogen energy, electric vehicles and bio-fuels, etc. Each programme
has several components, which cover R&D, demonstration and extension.
Marketing outlets, namely, "Aditya..-S9~~H have been set-up in major
cities and towns with a view to promoting sale of renewable energy systems
and devices, servicing and repair of such systems and devices.
A manufacturing infrastructure has emerged for the manufacture and
supply of non-conventional energy equipment. These include small-scale and
medium/large-scale industries, both in the public as well as the private
sectors. Technical guidance and help has been provided to some developing
countries for the construction of biogas plants. Products, which are being



exported, include mainly solar photovoltaic modules and systems. Wind

turbines components have been exported to Europe, Australia and the USA.
A Swiss company has used Indian designs for the manufacture of small

During the last two decades, several renewable energy technologies have been
developed and deployed in villages and cities. Some of the achievements are
given in table 11.3 alongwith the estimated potential:




Achievements (as on
3 I March 2004)

A. Power from Renew.lIbles


Solar Photovoltaic Power

Wind Power

45,000 MW

2,483.00 MW


Small Hydro Power

(up to 25 MW)

15,000 MW

1,601.62 MW

Biomass Cogeneration Power

19,500 MW'

613.43 MW


Biomass Gasifier


Energy Recovery from Wastes

Power from Renewables (Total)


DecentraUsed Energy SY8tems


Family-size Biogas plants


Community I Institutional
Biogas plants


Improved wood-stoves

10. Solar Photovaltaic Systems

i. Solar Street Lighting Systems
ii. Home Lighting Systems
iii. Solar Lanterns
iv. SPY Power Plants

2.54 MW

60.20 MW

2,700 MW

41.43 MW

81,200 MW

4,802.22 MW

12 million

3.65 million

3,950 Nos.
120 million

20 MW/sq km
52,102 Nos.
3,07,763 Nos.
5,38,718 Nos.
851.00 kWp
140 milUon sq m
Collector area


Solar Water Heating Systems


Solar Cooking Systems

i. Box-type Solar Cookers
ii. Concentrating-type Community Cookers 10 Nos.
iii. ScheEler I dish type Solar Cookers

13. Solar PV Pumps

35.2 million

0.80 million sq m
Collector area

5,55,000 Nos.
2,000 Nos.
6,452 Nos.

India 2005


Wind Pumps

':145 Nos.


Hybrid Systems

370 kW


Battery Opt'ratl'd Vehicles

300 Nos.

SlJ k = s..lUill'i' Kilometer

KW - Kilowatt
kWp ~ Kilo watt pt'ak

Sq m - SquaTf' Meter


MW = Mt'ga-watt


Around 3.65 million family size biogas plants and 35.2 million improved wood
stoves have been installed so far. India is second only to China in these two
applications. In addition, enriched organic manurt:> is produced from biogas
plants to supplement and complement environmentally degrading chemical
The National Project on Biogas Development was initiated in 1981-82 for the
promotion of family size biogas plants with the aim of providing a clean and
cheap source of energy in mra! areas alongwith other benefits such as enriched
organic manure, improved sanitation and hygiene and reduction in dmdgery
for women. Three types of biogas designs, namely, the floating drum type
or KYIC design, fixed dome type and bag typt portable digester made of
mbberised nylon fabric art' being propagated under this programnw.
The biogas programme is implemented through the state governments
and administrations, corporate/registered bodies, KYle and non-governmental
organisations. Technical Back-up Units (TBUs) set up ilt eight locations an'
providing technical and training support in a decentralised mode. Commercial
and co-operative banks are proViding loans for the setting up of biogas plants.
The Integrated Rural Energy Programme (IREP) at undertaking village level
l'nergy planning for meeting the energy needs of the villages through a blend
of conventional and non-conventional sources of energy. Earlier the programme
was implemented taking the Block as a unit of planning and till 2002-03, 860
Blocks were covered. The programme was modified in 2003-04 and it
envisages preparation of district-level energy plans and its implementation
in a selected clusier of villages in the district.
253 districts in 16 States and one Union Territory were covered under
the modified IREP. Five Regional Training Centres set up under the programme
at Delhi, Lucknow, Amrol (Gujarat), Bangalore and Shillong meet the training
requirements of different target groups involved in planning and
implementation of IREP.
The Special Area Demonstration Programme (SADP) aims at demonstrating
renewable / non-conventional energy systems and devices in all parts of the


245 \





31 Mar






31 Mar

31 Mar





31 Mar
















31 Mar

31 Mar

31 Mar


31 Mar




31 Mar

31 Mar



India 2005

country with a view to create awareness and give publicity amongst students,
teachers and the public. About 200 Energy Parks were bt.>en set up till
31 March 2004.

Tht' Ministry of Non-conventional Energy Sources is implementing a programme

since 2001-02 for the electrification of remote census villages and all unelectrified remote hamlets through renewabll' energy means.
More than 24,500 villages/hamlets (which are not likely to bl' electrified
through grid-extension by 2012) werp tentatively identified for this purpose.
As on 31 March 2004, 1,563 remotp villages and 316 remote hamlets were
electrified and projects are under implementation in 1,517 remote villages and
721 hamlets. The target for the Tenth Plan period is electrification of 5,000
such villages.

Thl' projects are implemented through State Nodal Agencies for Renewable
Energy, Power Departments, ElectriCity Boards, Corporate Entities for power
generation, transmission and distribution set up by the Central or State
Govt'rnments, Non-Governmental Organisations, Cooperative Societies and
similar non-profit bodies, District-level bodies, Panchayati Raj Institutions,
Village Councils and Private Sector with emphasis being on provision of
energy services.

Solar-thermal devices are being utilised for water heating, cooking, drying and
can be utilised for space heating, water desalination, industrial process heat,
steam generation for industrial and power generation applications, operation
of refrigeration systems, etc.
Low-grade solar thermal devices (for temperature range 100-300 degree
C) like solar water heaters, air heaters, solar cookers, solar dryers, etc, were

developed and deployed in the country. Solar water heaters of capacity

ranging from 50 litre per day to 2,10,000 litre per day for domestic, commercial
and industrial applications were installed in the country. Over 8,00,000 sq
mt of collector area was installed ranging from domestic water heaters of 50HX)litre capacity in over one lakh homes to industrial and commercial systems
of up to 2,4{),000 litres of hot water per day. The manufacturing base of solar
water heaters is now well established in the country with 80 manufacturers
employing BIS standards.
Around half-a-million box type solar cookers were deployed. Solar
concentrating collectors were also installed for generating steam and in this
regard the world's largest solar steam cooking systems for cooking food for
15,000 people was installed in October 2002 at Tirumala, in Andhra Pradesh.
Efforts are also on to make use of solar passive architecture principles to
reduce energy consumption and improve comfort conditions in buildings.
Greenhouse Technology for growing vegetables, flowers, etc, in cold climate
regions has also been developed and introduced in the market.



More than 100 companies are involved in the manufacture of solar

thermal systems and devices.

Solar phototovoltaic (SPY) systems have emerged as a useful power source

in remote areas for applications such as lighting, water pumping and telecommunications.
The technology for the manufacture of SPY cells and modules has been
developed and commercialised by Central Electronics Limited on the basis
(If domestic R&D. About 35 MW of module production has been achieved,
whIch accounts for five per cent of the global production. More than 50
companies are involved in the production of Spy systems. SPY modules of
54.5 MWP capacity have so far been exported to various countries.
Over one million Spy systems aggregating to about 66.5 MW capacity
have been deployed. Solar lighting systems are being used in more than
7,70,000 households. About 2,20,000 rural radio-telephones are being powered
by SPY systems.
Under the Spy programme about 5.38 lakh solar lanterns; 3.07 lakh solar
home lighting systems; 52,102 solar street lighting systems; 6,452 solar water
pumping systems and non-grid power plants of 0.851 MWp aggregate
capacity have been installed till March 2004.

A total grid-interactive power generating capacity of 4,802 MW has been

added by 31 March 2004 from renewables, mainly wind, small hydro and
biomass. Most of this capacity has come throu~ commercial projects.

While the gross wind power potential is estimated at around 45,000 MW,
the potential that can be tapped at present is limited to about 13,000 MW
This is because the feasible potential is governed by grid capacity. A capacity
of 2,483 MW has so far been added through wind, which places India in the
fifth position globally after Germany, USA, Denmark and Spain.

The Biomass Power Programme especially through cogeneration projects aims

at utilisation of a variety of biomass materials, agro-industrial residues,. energy
plantations besides agro residues for power generation through the adoption
of conversion technologies like combustion, pyrolysis, gasification, etc. The
plants utilise gas I steam turbines, dual-fuel/gas engines or combinations
thereof, either for generation of power alone or cogeneration of power, for
either captive use or sale to grid.
The potential of biomass power in the country has been estimated at
about 19,500 MW, including surplus power generation potential of around
3,500 MW from bagasse-based cogeneration from existing sugar mills in the


India 2005

country. So far, a total capacity of 614 MW biomass based power-generating

systems has been installed in the country. Projects of a capacity of 643 MW
are under installation.

Gasifiers using biomass and wood chips have been developed for generating
thermal energy for industrial applications, water pumping and decentralised
power generation in kilo watt range. Biomass gasifiers aggregating to 60 MW
capacity haw so far been installed in the country till March 2004.

The potential for Small Hydro Power (SHP) has been assessed aground
I5,OaO MW. By 31 March 2004, a total of 1,603 MW capacity had been set
up. In addition, projects aggregating to 569 MW capacity are under various
stages of implementation.


The National Programme on 'Energy Recowry from Urban, Municipal and
Industrial Wastes' aims at promoting technologies for processing, treatment
of the wastes with attendant benefits of waste reduction, abatement of
environmental pollution and recovery of useful energy / power. The Ministry
is also executing a UNDP / GEF assisted Project on 'Dewlopment of high-rate
biomethall.ltion processes as a means of reducing greenhouse gasses emission'.
Twenty-fiw 'waste-to-energy' projects for generation of biogas/power for
captive use / sall' to grid. aggregating to 42 MWe capacity, have been
commissioned till March 2004.

Hydrogen Energy : A programme covering research and development
pertaining to production of hydrogen, its storage, safety, applications, etc., has
been undertaken in thl' country with a vit'w to create an alternate source of
cnt'rgy. A National Hydrogen Energy Board has been set up to guide and
OVl'rsce and preparation of a Hydrogen Energy Road Map and its
implementation through a National Programme on Hydrogen Energy.
Applications of hydrogen difl'ctly in internal combustion engines for transport
application as well as dccentralised power generation and also in fuel cells
for stationary, mobile and transport applications have been demonstrated.
Hydrogen powered two wheelers, threl' wheelers, catalytic combustors, and
power-generating sets haw been developed and demonstrated in the country.
A pilot project for field-tl'sting of 10 hydrogen-fueled motorcycles is under
progress. A pre-commercial pilot plant for production of hydrogen from
distillery waste has been set up.
Fuel Cells : Research and Development Projects for development of different
types of fuel cells likl' Proton Exchange Membrane Fuel Cells (PEMFC),
PhosphOriC Acid Fuel Cplls (PAFC), Solid Oxide Fuel Cells (SOFC), Direct
Methanol Fu('1 Cell (DMFC), Direct Ethanol Fuel Cells (DEFC) and Molten



Carbonate Fuel Cells (MCFC); components and materials for fuel cells
including control and instrumentation system are being supported. rAFC fuel
cell stacks up to 25 kW have been developed and demonstrated by BHEL
for power generation. SPIC Science foundation has developed PEMFC stacks
lip to five kW capacity for vehicular application and decentralised power
generation. A fuel cell-battery hybrid van has also been developed and
demonstrated by SrIC Scienn' Foundation. A 3kW capacity PEMFC power
pack, developed by SPTC Science Foundation, to work as an un-interrupted
powpr supply is currently undergoing modification for improving its
performance. The Indian Institute of Chemical Technology, Hyderabad is
working on the development of a 50 kW fuel cell system, using methanol
which will be reformed into hydrogen.
Geothermal Energy: Assessment of Geothermal energy potential of selected
sites in Jammu and Kashmir, Himachal Pradesh, Uttaranchal, Jharkhand and
Chhattisgarh has been / is being undertaken. Son1' more field investigations
induding deep drilling at potential geothermal sites would be required before
the sites can be taken up for dewlopment for power generation.
Ocean Energy: The various forms of ocean energy are waves, ocean energy
thermal conversion, current and tides. Of these, tidal energy has the potential
for being harnessed for power generation, in the medium term. A feasibility
H'Port for setting up a tidal power project at Durgaduani Creek in Sunderban..c.;
Mca of West Bengal has been examined and it is found that current technology
levels cannot produce electricity at economically acceptable rates.
Bio Fuels: Several R&D projects have been taken up in the country to develop
technOlogies to convert different non-edible vegetable oils to bio-diesel.
Attempts are being made to launch an operational programme on the use of
these bio-fuels in the transport sector. Field trials with ethanol blends in petrol
ilnd diesel have also been taken up under several projects financed by the
Battery Operated Vehicles : R&D projects on development of high energy
density batteries such as nickel-metal-hydride, lithium-ion and lithium polymer
electrolyte batteries and super capacitors for BOVs are being supported.
Prototypes of nickel-metal-hydride batteries developed have been demonstrated
for operating an electric auto-wheeler.
Specialised Technical Institutions : The Ministry has established the
following institutions for R&D and related applications : (a) Solar Energy
Centre : The Solar Energy Centre is being reactivated to act as a tec~cal
focal point for the development of cutting edge solar technologies; (b) Sardar
Swaran Singh National Institute of Renewable Energy (SSS-NIRE) : To
conduct R&D in renewable energy; and (c) Centre for Wind Energy
Technology (C-WET) : Th serves as a technical focal point for the development
of wind power systems.
The Indian Renewable Energy Development Agency (lREDA)

A public


India 2005

sector Non-Banking Financial Company fin,mces grid-interactive renewable

power projects. It has a paid up share capital of Rs 325.35 crore as on 31
March 2004. The cumulative disbursements are of the order of Rs 3,426 crore.
Some projects have been commissioned and are generating electricity.


Major policy initiatives taken to encourage investment in renewable energy
include: (i) provision of fiscal and financial incentives under a wide range
ut programm('s being implemented by the Ministry; and (ii) simplification of
proceduT's for privale investment, including foreign direct investment for
renewable energy projects. Thl' fiscal incentives include exemption from excise
duty ilnd sales tax and concl'ssional custom duty on the import of material,
components and equipments uSl'd in renewable energy projects. 80 per cenl
dl'preciation in the first year is allowed in wind power projects. Fourteen
statl's have also announcl;'d facilitating policies in respect of various renewabll'
energy systems.


The gross import of crude oil and petroleum products (including imports by
private and parallel marketers) during 2003-04 was 98.42H MMT valued at
Rs 93,721 cron', whereas the net import of crude oil and petroleum products
(excluding export) during the same Yl'cU was R4.176 MMT valued at Rs 77,404
(TOre. The export of petroleum products including private parties was 14.252
MMT valued at Rs 16,317 crore.
GAIL (India) Limitl;'d is the largest natural gas processing, transmission and
distribution Company in India. The Company owns and operates a network
of over 5,200 kilometers of pipeline in all the four regions of the country,
supplying about 62.6 MMSCMD of gas per day as a fuel to power plants
for generation of about 5,500 MW of power, as feedstock for gas based
fertilizer plants to produce about 10 MMTPA of urea. Gas transmission and
distribution forms the bulk of GAIL business today followed by gas processing
for LPG production and production of petrochemicals (HDPE and LLDPE).
In the LPG area, GAll has seven plants in production in various parts
of the country with a total design capacity of over one million tonnes per
alIDum. Total liquid hydrocarbon production including LPG in 2003-04 was
13.63 lakh tonnes. Jamnagar-loni LPG Pipeline is 1,240 km long and is the
world's longest exclusive LPG pipeline with a capacity t~ carry 2.5 MMTPA
of LPG per annum passing through Gujarat, Rajasthan, Haryana, Delhi and
U.P. States.
GAJlTEl, the tdecom wing of GAIL has entered the telecom business
armed with two licenses, IP-I1 and ISP licenses having 50 per cent of the fibre
along pipeline extending from Chandigarh in north to Mumbai in west and



Vizag in south and covering major cities in the States of Uttar Pradesh, Madhya
Pradesh, Gujarat, Maharashtra, Rajasthan and Andhra Pradesh. GAILTEL
network presently covers over 8,000 kms cOllnecting 73 cities.
GAIL has taken notable initiatives in Joint Venture companies, namely,
Mahanagar Gas Limitt'd (JV with British Gas of UK) in Mumbai and
InJraprastha Gas Limited (JV with Bharat Petroleum Corporation Limited)
in Delhi for City Gas Distribution Schemes including CNG for the transport
sector Besides, GAIL has an equity participation with IOC ONGC and BPCL
in M / s Petronet LNG Limited for setting up LNC terminals at Dahej in
Gujarat and Kochi in Kerala for import of LNC in the country. GAIL has joined
a coTlsortium, namely, Gujarat State Energy Generation Limited (GSEG) of
Cujarat State Enterprises and KRIBHCO for a 156 MW gas-bascd power plant
at Hazira in Gujarat. The power plant was commissioned in Dccembl'r 2001.
On 29 November 2002, GAIL entert,d into a Joint Vt'nture agrl.'Cment with
11f'CI, to distribute Piped Natural Gas, CNG and Auto LPG in the cities of
Andhra Pradesh. The TV has been incorporated as Bhagyanagar Gas Limited.


Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited (OIL)
and private / joint venture companies arc, engaged in exploration and production
of crude oil and natural gas in the country. The total production of crude
oil and natural gas in the country during 2003-04 was 33.378 Million Metric
lonnes (MMT) and 31,956 Million Cubic Metres (MCM) respectively which
is about om' per cent higher in case of crude oil and 1.8 per cent higher for
natural gas production over the previous year. The main reasons for increase
in oil and gas production during 2003-04 were implementation of various
IOR/EOR scheme by ONGC including redevelopment of Mumbai High field
and increase in gas production from few fields operated by private / joint
venture companies. During the year 2003-04 the shart~ of crude oil production
for ONGe, OIL and private/joint venture companies was about 78.1 per cent
1,1.0 per cent and 12.9 per cent respectively, while for gas production, the share
of ONGe, OIL and private / joint venture companies was about 73.8 per cent,
5.9 per cent and 20.3 per cent respectively.


The gross import of crude oil and petroleum products (including imports by
private and parallel marketers) during 2003-04 was 98.331 MMT valued at
Rs 93,205 crore, whereas the net import of crude oil and petroleum products
during the same year was 83.711 MMT valued at Rs 76,424 crore, The export
of petroleum products including private parties was 14,620 MMT valued at
Rs 16,781 crore.


After coal, petroleum products remain the primary energy source in India,
with its consumption increasing at a very steep rate from 3.5 MMT in 1950-


India 2005

51 to about 104.13 MMT in 20()2-03. It has reached a level of about 107.59

MMT in 2003-04.

Sale of ethanol-blended petrol has already started in the country. As on

date, the sale of ethanol-bll'ndt'd pltrol is being done in 10 States and thn:..>t>
Ufs. Th(. programme may tw t'xpanded further depending on the availability
of ethanol. Tht, issue regarding enhancement of quantity of ethanol to the
extent of 10 per cent can also be considered by the Government in future
if dhanol in sufficient lJuantity is available for the purpose on a sustainable
Another alternative fuel for conservation of petroleum product is biodiesl'l which is vegl'table oil/animal fat which can be mixed with conventional
diesel to be used as fuel. R&D studies have indicated that a bio-diesel blend
enhances the life of engine and results in comparatively lower pollution. In
India, two pilot projects have been set up under tht, guidance of the Ministry
of Petroleum and Natural Gas. MIs Hindusthan Petroleum Corporation
Limited (HPCl) have sd up an experimental project at Mumbai involving
25 BEST buses using blends of five per cent, 10 per cent and 20 per cent
of bio-diesel in diesel. Another pilot-project involving use of five per cent biodiesel hlended in diesel has been started at Rewari, Haryana, since 6 April
2004. In the initial phase, 10 buses have started plying on five per cent bindiesel blte'nds from the Gurgaon Depot of Haryana Roadways, along with 10
rcfNenCl' buses on diesel fuel. It is planned to increase the trials of five per
cent bio-diesel bll'l1ds gradually to 20 buses.
For promotion of hydrogen as a fuel, a roadmap has been set up by
Indian Oil Corporation Limited, Research and Development Centre flOC
(R&D)I, the nodal agency identified for hydrogen utilisation in scooters, threewheelers and buses.
Since its establishment in ]965, Engineers India Limited (Ell) has created an
impressive track record of implementing a large number of projects in India
and abroad. It has undertaken over 4,300 assignments and more than 320
major projects, with a total installed cost of more than $ 35 billion.
ElL has been associated with 40 major refinery projects including
grassroots projects as well as expansion I revamp projects. ElL provides a wide
range of design, engineering, procurement, construction, management,
commissioning assistance and project management services as well as EPC
services. It also provides specialised services in domains such as environment,
heat and mass transfer, information technology (IT), risk analysis and advance
control and optimisation for the petroleum and other process industries
including petroleum refineries, petrochemicals, oil and gas processing projects,
pipelines, offshore platforms and submarine pipelines, fertilizers, metallurgy,
etc. ElL now provides services for number of infrastructure areas also
including highways and bridges, intelligent buildings, urban development,
airports, etc. Thus, Ell today is a Total Solutions Consultancy Company and
EPC Contractor.



Quality management system with r~spect to Ell's services has been

upgraded to 150-9001 :2000. Ell uses state-of-the-art engineering tools including
PDS/PDMS and latest software to provide quality engineering. The
communication and IT infrastructure has been strengthened with substantial
investment in hardware, software and networking.



THE Ministry of Environment and Forests is primarily concerned with the

implementation of policies and programmes relating to conservation of the
country's natural resourcl'S including lakes and rivers, its biodiversity, forests
and wildlife, l'nsuring the welfare of its animals and prevention and
abatement of pollution. While implementing these policies and programmes,
the Ministry is guided by the principll' of sustainable development and
l'nhancement of human well-being. The Ministry also serves as tht' nodal
agency in the country for th( United Nations Environment Programme
(UNEP), South Asia Co-operative Environment Programmt' (SACEP),
International Centre for Integratt'd Mountain Development (ICIMOD) and for
the follow-up of thl' United Nations' Conference on Environment and
Developml'llt (UNCED). The Ministry is also entrusted with the issues relating
to multilateral bodies such as the Commission on Sustainable Development
(CSD), Global Environment Facility (GEF) and of regional bodies like
Economic and Social Council for Asia and Pacific (ESCAP) and South Asian
Association for Regional Cooperation (SAARC) on matters pertaining to
envi ronment.
Conservation and survey of flora, fauna, forests and wildlife, prevention
and control of pollution, afforestation and regeneration of degradt'd areas and
protection of environment are the mandates of the Ministry. These objectives
are sought to be fulfilled through environmental impact assessment, ecoregeneration, assistance to organisations implementing environmental and
forestry programmes, induding animal welfare programmes, promotion of
environmental and forestry research, education and training, dissemination of
environmental information and international cooperation and creation of
environmental awareness. These objectives are well supported by a set of
legislative and regulatory measures aimed at the preservation and protection
of environment.


Botanical Survey of India (BSI) was established in 1890 with the basic objective
of carrying out floristic surveys. It was~revlve(f" and reorganised in 1954..
During the successive plan periods, its functions have been graawllY
expanded. A thorough review of the objectives and perspectives was undertaken
in 2002. The Botanical Survey of India undertakes exploration, inventorisation
and documentation of phytodiversity in general and protected areas, hotspots,
fragile ecosystems and sacred groves in particular and publication of National,
State and District Floras. BSI has its headquarters at _!<.Q.lkata.and nine circle
offices located in different regions of the country.
The Zoological Survey of India (Z51), a premier institute under the
MinIstry has been undertaking survey, exploration and research leading to



the advancement of knowledge on the exceptionally rich faunal diversity of

the country since its inception i~J9J6. With its headquarters~olkata,and
sixteen Regional Stations locate<fIn 'aifferent parts of the country, ZSI in recent
vears, has reoriented its plan of work by grouping the survey and studies
under five major programmes, viz" (i) Fauna of States; (ii) Fauna of
Conservation Areas; (iii) Fauna of important ecosystems; (iv) Status Survey
of endangered species; and (v) Ecological studies. Besides ZSI undertakes
regular faunistic survey tours of the entire country. Eighty two extensive
faunai surveys were undertaken to different States/Union Territories
including important ecosystems and some selected conservation / protected
areas during 2003-04.
The Forest Survey of India (FSI), an organisation of Ministry, is engaged
in generating information and database on forest COVel and forest resources
in the country besides providing training, research and extension. Forest
Survey of India was established in 1981 as a successor to "Pre-investment
Survey of Forest Resources" (PISFR), a project initiated in 1965 by Government
of India and sponsored by FAO and UNDP. The main objective of PISFR was
to ascertain the availability of raw material for establishment of wood based
industries in selected areas of the country. Further, the National Commission
OJ) Agriculture (NeA), in its report in 1976, recommended the creation of a
National Forest Survey Organisationror collection of data on scientific lines
through country-wide comprehensive forest resources survey at regular
intervals. Consequently, PISFR was reorganised into FSI. After a critical review
of activities undertaken by FSI, Government in 1986, redefined its mandate
in order to make it more purposeful and relevant to the needs of the country.
The present mandat!:' of FS] is to prepare a comprehensive State of Forest
Report (SFR) including National Vegetation Map (NVM) once in every two
years. FSI will also prepare thematic maps through use of remote sensing data
with minimum essential ground truth verification (most ground-truth
verification would be done by the respective state governments) on a tenyear cycle.
The headquarters of the organisation is at Dehradun. The activities of
FSI include : (i) Forest Cover Mapping; (ii) Inventory Data Processing;
(iii) Training; (iv) Creation of National Basic Forest Inventory System (NBFIS);
(v) Special Studies; and (vi) Consultancy. 'The organisation has four zones,
each headed by a Regional Director, located at Shirnla, Kolkata, Nagpur and

Biosphere Reserves are areas of terrestrial and coastal ecosystems which are
internationally recognised within the framework of UNESCO's Man and
Biosphere (MAB) Programme, These reserves are required to meet a minimal
set of criteria and adhere to a minimal set of conditions before being admitted
to the World Network of Biosphere Reserve designated by UNESCO for

India 2005


inclusion in the World Network of Biosphere Reserves. The world's major

ecosystf'm types and landscapes are represented in this Network. The goal
is to facilitate conservation of representative landscapes and their immense
biological diversity and cultural heritage, foster economic and human
development which is culturally and ecologically sustainabll;' and to provide
support for research, monitoring, education and information exchange. So far,
13 Biosphl're Reserves have been set up. They are: Nilgiri, Nanda Devi,
-N~'k~~k, G~~t-Nicobar, Gulf of Mannt'r, Manas, Sunderbans, Similipal, Dibru
Daikhowa, Dehong Deband, Panchmarhi, Kanchanjanga and Agasthyamalai.
Out of 13 Biosphere reserves... threc haw been recognjsed on World Network
of Biosphere Reserves by UNESCO, namely, Nilgiri, Sunderbans and Gulf of
--_._ ,,'
Wetlands are lands transitional between terrestrial and aquatic system where
thl;' watl'r tabl(, is usually or near the water surface and land is covered by
shallow water. Thl'y are life support systems for people living around and
are effective in flood control, wastl;' water treatment, reducing sediment,
recharging of aquifers and also winter resort for a variety of birds for shelter
and breeding and provide a suitable habitat for fish and other flora and fauna.
TIll'y also act as buffer against the devastating effect of hurricanes and
cyclones, stabilise the shore-line and act as bulwark against the encroachment
by the sea and check soil erosion. Apart from that, they are valuable for their
educational and scientific interest and provide durable timber, fuelwood,
protein rich fodder fm cattle, edible fruits, vegetables and traditional medicines.
Identification of wetlands can be attributed to the following three main
factors, viz., (i) When an area is permanently or periodically inundated;
(ii) When an area supports hydrophytic vegetation; (iii) When an area has
hydric soils that are saturated or flooded for a sufficiently long period to
become anaerobic in the upper layers.
On these criteria, Ramsar Convention defines Wetlands as areas of marsh
or fen, peat-land or water, whether artificial or natural, permanent or
temporary, with the water that is static or flowing, a fresh brackish or salt
including areas of marine water, the depth of which at low tide does not
exceed six meter. Mangroves, corals, estuaries, bays, creeks, flood plans, sea
grasses, lakes, etc., are covered under this definition.
Taking into consideration deterioration of water bodies, a programme
on conservation of Wetlands was initiated in 1987. At present there are 27
identified wetlands covering 15 States. States Steering Committees have been
constituted in all the concerned States under the chairmanship of Chief
Secretary having members from various subject matter departments relating
to wetland con..c;ervation in the State.


are those that survive rugh salinity, tidal extremes,

stron~' wind velocity, high temperature and muddy anaerobic soil-a



combination of conditions hostilt, for other plants. Mangroves are successfully

adopted if.colonizing saline intertidal zone at the interfac(' betwpen the land
and sea along the deltas, shallow lagoons, mud flats, bays and backwaters
in tropical and subtropical sheltered coast lines. Mangroves not only protect
the coastal communities from the fury of cyclones and coastal storms, but also
promote sustainable fisheries and prpvent sea erosion. Of latc, tht' fragile
mangrove ecosystems have been subjected to various anthropogenic and biotic
pn'<;sures resulting in habitat destruction, loss of bio-diversity, affecting a
avifauna and their migration paths. The Ministry of Environment and Forest
launched Mangrove Conservation Programml' in 19R7 and, has so far,
idt'ntified 35 mangrove areas for intensive conservation and management.
These mangrove areas are identified on the recommendation of National
('ommittee on Mangroves and Coral Reefs on the basis of their unique
l'cosystems, biodiversity, etc. 100 per cent central assistance is given under
Managl'ment Action Plans (MAPs) for undertaking activities like raising
mangrove plantains, protection, catchml~nt area treatment, siltation control,
pollution abatement, biodiversity conservation, sustainable resource utilisation,
survey and demarcation, education and awareness, etc. This is further
supplemented by Research and developmental activities.
The mangroves in India comprise 69 species under 42 genera and 28
families. India is home to some of the best mangroves in the world. Thl'
Ministry has established a National Mangrove Genetic Resources Centre in
Orissa. Two mangrove species are endemic to India. ~~eli is Rhizophora
1I1111llmalllyana, occurring in Pichavaram, Tamil Nadu. An?ther species. in
HcrifiCrii::7(iimf;;;;;s that eXIsts only in Bhitarkanika of Orissa. Sunderbans
(WesT Bengal) have been included in the World List of Biosphere Reserves
by UNESCO. They represent the largest stretch of mangroves in the country.


The two separate schemes on Wetlands and Mangroves have now been
merged and is to be continued during the Tenth Five Year Plan. All the
concerned States/UTs have constituted Streering Committees to monitor
implementation of Management Action Plans for mangroves and coral reefs.
Coral reefs are shallow-water tropical marine ecosystems, characterised
by high biomass production and rich floral and faunal diversity. In the Indian

sub-continent the reefs are distributed along the East and West Coast of
restricted places. Fringing reefs are found iri the Gulf of Mannar and Palk
Bay as well as Andaman and Nicobar Islands. Platform reefs are seen along
the Gulf of Kutchchh and Atoll reefs are found in the Lakshadw'eep
Archipelago. Four coral reefs, namely, Gulf of Mannar, Andaman and Nicobar
islands, Lakshadweep Islands and Gulf of Kutchchh have been identified for
conservation and management. The Ministry has also been identified as the
national focal point of International Coral Reef Initiative (ICRI), Global Coral
Reef MOnitoring Network (GCRMN) as well as Coral Reef Degraded Action
in Indian Ocean (CORDIO). Gulf of Mannar coral ~j ~~._~_Ta~.I._~_~~u
has been included in the worla liSt or-bioSphere-reserves of UNESCO. '-- ',_.


India 2005


Biodiversity is the variability among living organisms and the ecological

complexes of which they are part, including diversity within and between
species and ecosystems. Biodiversity has direct consumptive value in food,
agriculture, medicine, and in industry. India is one of the 17 mega diverse
countries which together possess 60 to 70 per cent of the world's biodiversity.
India ratified the International Convention on Biodiversity (CBD) on
18 February 1994 and became party to the convention in May 1994. The CBO
is an international legal instrument for promoting conservation and sustainable
USt' of biological diversity taking into account the need to share cost and
benefit betwet'n developed and developing countries and the ways and mean~
to support innovation by local people. It was resolved to evolve an
International regime on access to genetic resources and benefit sharing with
the aim of adopting an instrument/instruments to effectively implement tht'
provisions of CBD.
The National Policy and Action Strategy on Biodiversity, which seeks
to consolidate the on-going efforts of con..ervation and sustainable use of
biological diversity and to establish a policy and programme regime for the
purpose, was released by the Ministry on 6 January 2000. The Bio-Diversity
Bill 20m Introduced in Parliament in May 2000, was passed by the Lok Sabha
on 2 December and by the Rajya Sabha on 11 December 2002. The main intent
of the legislation is to protect India's rich biodiversity and associated
knowledge against their use by foreign individuals and organisations without
sharing the benefits arising out of such use, and to check biopiracy.

Forests are a renewable source and contribute substantially to economic
development. They playa major role in enhancing the quality of environment.
The forest cover in the country is 6,75,538 sq km and constitutes 20.55 ~r
cent of its__geQgrapbjcal.~f this, dense forest constitutes 4,16,809 sq krn
(12.68 per cent) and open forest 2,58,729 sq km (7.87 ~r cent). A comparison
ofTorest cover assessment of 2001 with that of r999 reveals that there is an
overall increase of 38,245 sq km or six per cent. This constitutes an increase
of 1.16 per cent of geographical area. The increase in dense forest cover with
respect to 1999 assessment is 34,580 sq km (nine per cent) and increase in
open forest cover is 3,665 sq krn (1.4 per cent).
According to State of Forest Report, 2001 the mangrove cover in the
country occupies an area of 4,482 sq krn (0.14 per cent) of geographic area
of which 2,859 sq krn is dense mangroves and 1,623 sq krn is open mangroves.
The total tree / forest cover for the country (national area with 70 per
cent canopy density) has been estimated as 81,472 sq krn or about 2.48
per cent.


India is one of the few countries which has a forest policy since 1894.J!._was




revised in 1952 and again in 1988. The main plank of the forest policy is
protection, conservation and development of forests. It" aims are: (i) maintenance
of environmental stability through preservation and restoration of ecological
halance; (ii) conservation of natural heritage; (iii) check on soil erosion and
denudation in catchment area of rivers, lakes and reservoirs; (iv) check on
extension of sand dunes in desert areas of Rajasthan and along coastal tracts;
(v) substantial increase in forest tree cover through massive afforestation and
social forestry programmes; (vi) steps to meet requirement') of fuelwood,
fodder, minor forest produce and soil timber of rural and tribal populations;
(vii) increase in productivity of forest to meet the national need;
(viii) encouragement to efficient utilisation of forest produce and optimum
substitution of wood; and (ix) steps to create massive people's movement with
involvement of women to achieve the objectives and minimise pressure on
existing forest. As forestry has undergone many conceptual changes since the
adoption of Indian Forest Act, 1927, it was decided to bring suitable
amendments to this Act. The Ministry of Environment and Forests has
constituted the National Forest Commission on 7 February 2003 to review the
working of Forests and Wildlife Sector. The tenure of the Commission is of
two years. A National Forestry Action Programme (NFAP) has also been
formulated as a comprehensive strategic long-term plan for the next 20 years.
The objective of the NFAP is to bring one-third of the area of the country
under tree / forest cover and to arrest deforestation.
Under the provisions of the Forest (Conservation) Act, 1980, prior
approval of the Central Government is required for diversion of forest lands
for non-forest purposes. The Regional Chief Conservator of Forests are
empowered to decide cases on diversion of forestland for non-forestry
purposes up to the extent of five hectares except mining and regularisation
of encroachment. They have also been empowered to examine cases involving
forestland from five hectares to 20 hectares in consultation with the State
Advisory Group. The Government has notified Forest (Conservation) Rules,
2003 to supersede the Rules made in 1981.
In 1990, the Government issued guidelines to involve the village
communities in the development and protection of degraded forests on the
basis of their taking a share of the usufruct from such areas. The concept of
Joint Forest Management OFM) was accordingly initiated. The JFM Programme
was pursued vigorously and as a result JFM .resolution has now been adopted
in all the 28 States. 84,632 JFM Committees have been formed and 17.33
million hectares forest area have been brought under JFM Programme. About
85.28 Jakh families are involved in the Programme all over the country.
By merging the two schemes, 'Forest Fire Control and Management' and

'Bridging of Infrastructure Gaps in the Forestry Sector in the North Eastern

Region and Sikkim', a new Scheme 'Integrated Forest Protection Scheme' has
been formulated. The 100 per cent centrally-sponsored scheme is now being
extended to all the states and UTs during the Tenth Five Year Plan.


India 200S

The National Wildlife Action Plan provides the framework of strategy as well
as programme for conservation of wildlife. The first National Wildlife Action
Plan (NWAP) of 1983 has been revised and the new Wildlife Action Plan (20022016) has been adopted. The Indian Board of Wildlife, headed by till' Prime
Minister, is th( apex advisory body overst'eing and guiding the implementation
of various schl'n1es for wildlife conservation. At present, thl' protl'cted area
network comprises 92_-,~_a_t~~)na.! parks and 500 sanctuaries covering an area
of 15.67 million hectares. The Wildlife (Prot('ction) Act,_.I~l_ adopted by all
States except Jammu and Kashmir (which has its own Act), governs wildlife
conSl'rvation and protection of endangered species. The Act prohibits trade
in rare and endangered species. An Intl'r-State Committee has been set up
t(l review the Wildlife (Protection) Act, 1972 and otlwr laws. India is iJ
signatory t(l the Convention on International Trade in Endangered Spe(ies
(CITES) of wild flnri! and fauna. India is also a signatory to the Memorandum
of Understanding concerning the conservation of Siberian Cranes. Thl'
Government provides financial and technical assistance to States for
development and improved management of national parks; protection of
wildlifp and control of poaching and illegal trade in wildlife products; {'codevelopment in areas around national parks and sanctuaries; conservation of
elephant and its habitat; and conservation of rhinos in Assam.
Under the Project Tiger, launchl'd on 1 ~pIj_I_lm_28LIiger Reserves
have been sd up in 17 States covering an area of about 37,761 sq km. Financial
assistanct' is provided for voluntary relocation of tribal families from th('
Protection Areas.
Under the Project Elephant, which was launched in February 1992, States
having frel-ranging population of wild elephants are being given financial
as well as technical and scientific assistance to ensure long-term survival of
identified viable populations of elephants in their natural habitats. Fourteen
Elephant Reserves have been set up during ,he year. A Central Zoo Authority
has been set up to look after the management of zoological parks in the
country. It coordinates the activities of different zoos set up in the country
and also supervises thl' exchange of animals on a scientific basis. A national
policy on zoos prepared by the AuthOrity provides appropriate directions to
the Govemml:'Ot and other zoo operators.
The Animal Welfare Division became a part of the Ministry of Environment
of Forests in July 2002. Earlier the Division was under the Ministry of Statistics
and Programml' Implementation. The mandate of Animal Welfare Division
is to prevent the infliction of unnecessary pain or suffering to animals. Under
the Prevention of Cruelty to Animals Act, 1960, a new set of rules namely,
Animal Birth Control (Dog) Rules, 2001 was notified on December 2002. The
main task of the Division is to implement effectively the various provisions
of Prevention of Cruelty to Animals Act, 1960. Under this Act, a number of
Rules have been framed for various purposes.



Animal Welfare Board of India (AWBl) is a statutory body under Section

4 of tht' Prevention of Cruelty to Animals Act, 1960 with headquarters at
Chennai. Its basic mandate is to advise the Government on animal welfare
issues, and create awareness in animal welfare. AWBI gives financial assistance
to eligible Animal Welfare Organisations for Shelter Houses, Model Gaushalas
for setting up Bio-Gas Plants, Famine I Drought Relief, Earthquake Relief, etc.,
In various states. The number of Animal Welfare Organisations (AWOs)
registered with AWBI went up to 2,100 during the year.
So far State Animal Welfare Boards (SAWBs) have been constituted in
24 States! Uls.




For sustainable development and optimal lise of natural resources,

environmental considerations are required to be integrated in planning,
designing and implementation of development projPcts. Environmental Impact
Assessment (EIA) is one of the proven management tools for incorporating
environmental concerns in development process and also in improved
decision making. The programme of ETA, in vogue in the Ministry for tht
last two decades was initiated with the appraisal of River Valley Projects.
The scope of appraisal was subsequently enlarged to cover other sectors like
industrial projects, thermal power plants, mining schemes and infrastructure
projcct1:i. To give legislative stahls to the procedure of impact assessment, EIA
was made mandatory since January 1994 for thirty categories of development
activities. For facilitating preparation of quality EIA reports, a Manual on EIA
has been prepared which is also useful to apprising agencies and decision
makers, both at Central and State Levels. Thc Ministry has initiated a number
of activities to streamline the appraisal process in terms of simplification of
prlJccdures, involvement of stakeholders through public hearing, regular
meetings of Expert Committct$, etc. This has resulted in expeditions decision
on dt'velopment projects. Some amendments have been made in the EIA and
Coastal Regulation Zone (CRZ) Notifications based on consultations with all
the stakeholders. To ensure transparency, the status of forest and environmental
cll'arance has been brought out on website : httpJI envfor.nic.i!_1 since
foebruary 1999. Depending on the nature of the project, certain safeguards are
recommended. For monitoring and timely implementation of safeguards
suggested, six regional offices of the Ministry have been set up at ShiIlong,
Bhubaneswar, Chandigarh, Bangalore, Lucknow and Bhopal. The Ministry has
taken steps from time to time to streamline and rationalise the environmental
clearance procedure by amending the ErA Notification and by formulating
policy measures.
Mining proposal involving major minerals with lease area more than five
hectares in areas overed by the Aravalli Noti.fication has been brought under
the purview of EIA Notification. Widening and strengthening of existing
canals with land acquisition up to a maximum of 20 metres (on both sides
put together) along the existing alignments provided such canals do not pass
through ecologically sensitive areas has been exempted from the purview of
ElA Notification.


India 2005

The distance criteria, which was 25 krn in case of reserved forests and
ecologically sensitive areas, and 50 krn in case of interstate boundary has been
reduced to 15 km in both the cases. As a result power projects of co-generation
plants, captive power plants up to 250 MW (both coal and gas/Naptha based),
coal based plants up to 500 MW using fluidised bed technology, coal based
power plants up to 250 MW using conventional technology gas/naptha based
plants up to 500 MW and not falling within a critically polluted area, or within
a radius of 15 krn of boundary of reserved forests, ecologically sensitive areas
in any state can be considered and accorded environmental clearance by the
state governments themselves.
Environmental site clearance made mandatory for mega projects such
as green field airports, petrochemical complexes and refineries, isolated
petroleum product storages have been included along with petroleum
refineries including crude and product pipelines. Public hearing has been
exempted for offshore exploration activities, beyond 10 km from the nearest
habitated village boundary, goothans and ecologically sensitive areas such as
mangroves (with a minimum area of 1,000 sq mt) coral reefs, national parks,
marine parks, sanctuaries, reserve forests and breeding and spawning grounds
of fish and other marine life.
Draft Notification inviting suggestions / objections from all concerned
including the members of public on the proposed amendment in the EIA
Notification 1994 aims to include new projects relating to construction of
townships, industrial townships, settlement colonies, commercial complexes,
hotel complexes, hospitals, office complexes for 1,000 persons and above or
discharging sewage of 50,000 litres per day and above or with an investment
of Rs 50 crore and above and new industrial estates having an area of 50
hectares and above and the industrial estates irrespective of area if their
pollution potential is high, are proposed to be brought under the purview
of Environmental Impact Assessment Notification. The suggestions and
objections received in response to the draft notification is under examination.
In order to improve the environmental clearance process and to make
it more effective and time-bound, the Ministry of Environment and Forests
has undertaken a review of Environmental clearance under the World Bank
assisted Environmental Management Capacity Building (EMCB) project.
For the purpose of protecting and conserving the coastal environment
the Ministry had issued the Coastal Regulation Zone (CRZ) Notification. on
19 February 1991, declaring coastal stretches of seas, bays, estuaries, creeks,
rivers and back waters which are influenced by tidal action (on the land ward
side), up to 500 metres from the high tide line and the inter-tidal zone as
the Coastal Regulation Zone. The Notification imposes restrictions on the
setting up and expansion of industries and operations or process, etc., in the
Coastal Regulation Zone.


Realising the deteriorating air and water quality, increasing vehicular emission



and higher noise levels the Ministry adopted policy for abatement of pollution
which provides multi-pronged strategies in the form of regulations, legislations,
agreements, fiscal incentives and other measures. Over the years the thrust
has shifted from curative measures to pollution prevention and control
through adoption of dean and low-waste technology, re-use and recycling,
natural resource accounting, environmental audit and human resource
dt'velopment. To give effect to environmental measures and policies for
pollution control, various steps have been initiated which include stringent
n'gulations, development of environmental standards, control of vehicular
pollution, spatial environmental planning induding Industrial Estates and
preparation of Zoning Atlas. The scheme on Development and Promotion of
Clean Technologies, therefore, aims at promoting such tE'chnologies and
An "Eco-mark" label has been introduced to label consumer products
that are environment-friendly. So far, the Government has issued 19 notifications
on different products criteria. Submission of an Environmental Statement by
polluting units seeking consent either under the Water (Prevention and
Control of Pollution) Act, 1974 or the Air (Prevention and Control of Pollution)
Act, 1981 or both and the Authorisation under the Hazardous Wastes
(Management and Handling) Rules, 1989 has been made mandatory through
a Gazette Notification of April 1993 under the Environment (Protection) Act,
1l}86. The primary benefit of environmental audit is that it ensures costl'ffective compliance of laws, standards, rE'gulations and company policies, etc.
The policy statement for abatement of pollution lays emphasis on
preventive aspects of pollution abatement and promotion of technologies to
reduce the pollution. As a part of the Industrial Pollution Abatement through
preventive strategies, financial assistance is being provided for establishment
and running of waste minimization circles in clusters of small scale industries,
capacity building in areas of cleaner production, establishment of demonstration
units in selected industrial sectors, etc. The programme is being funded
through National Productivity Council who have pioneered in the activity.
A Network of 295 Ambient Air Quality Monitoring Stations covering 90
towns I cities all over the country has been set up by Central Pollution Control
Board in coordination with the State Pollution Control Boards I Pollution
Control Committees and other Institutions for carrying out regular monitOring.
The major objectives of the programme are : (i) to ascertain whether the
notified ambient air quality standards are maintained; (ii) to control and
regulate pollution from various sources; (iii) to understand the natural
cleansing process undergoing in the environment through pollution dilution,
dispersion, wind based movement, dry deposition, precipitation and chemical
transformation of pollutants generated; and (iv) health impacts.
Under National Air Quality Monitoring Programme (NAMP), four air
pollutants viz., Sulphur Dioxide (S02)' Oxides of Nitrogen as NO", Suspended
Particulate Matter (SPM) and Respirable Suspended Particulate Matter (RSPMI


India 2005

PM I")' have been identified for regular monitoring at all the locations. Besides
this, additional parameters such as Respirable Lead and other toxic trace
metals and Polycyclic Aromatic Hydrocarbons (PAHs) are also being monitored
in Sl'wn metro-cities of the country. The monitoring of meteorological
parameters such as wind speed and direction, relative humidity and tempcraturp
was also integrated with the monitoring of air quality. The monitoring of
pollutants is carried out for 24 hours with a frequency of twice a wel'k, to
have 104 observations in a vear.
As v(:,hicular emissions is tlw major caust' for deterioration of urban
ambil'nt air quality, Ministry of Environment and Forests is facilitating and
courdinating controlling of vehicular pollution in the field with the concerned
Ministries and its associat{'d bodies/ organisations including the Ministry of
Surface Transport, the Ministry of Petroleum and Natural Gas and the
Ministry of Industry in the areas such as up-gradation of automobile
technology, improvement in fuel quality, expansion of urban public transport
systems and promotion of integrated traffic management, de. The Gross
Emission Standards for vehicles have been pn'scribed from time to time and
a road map is prepared to improve the quality of fuel.
The Ministry has also been providing inputs for Harmonising the
Standards for Vehicles under WP 29 (World Forum for Harmonization of
Vehicle Regulations).

The Central Pollution Control Board (CPCB), an autonomous body of the

Ministry, was set up in Septembl'f 1974, under the provisions of the Water
(Prt'vention and Control of Pollution) Act, 1974. It coordinates the activities
of the State Pollution Control Boards (SPCBs) and Pollution Control Committees
(pees), and also advises the Central Government on all matters concerning
the prevention and control of environmental pollution. CPCB, SPCBs and
pecs are responsible for implementing the legislation, regulations and
guidelines relating to prevention and control of pollution; they also develop
rules and rl'gulations which prt!scribt' the standards for emissions and
effluents of air and water pollutants and noise levels. CPCB also provides
technical services to the Ministry for implementing the provisions of the
Environment (Protection) Act, 1986.
Seventeen categories of heavily polluting industries have been identified.
They are: cement, thermal power plant, distilleries, sugar, fertiliser, integrated
iron and steel, oil refineries, pulp and paper, petrochemicals, pesticides,
tanneries, basic drugs and pharmaceuticals, dye and dye intermediates,
caustic soda, zinc smelter, copper smelter and aluminium smelter. Out of a
total of 2,155 units identified so far under these categories, 1,877 units have
inc;talled adt'quate facilities for pollution control, 225 units have been closed
down and remaining 53 industries are defaulters. Legal actionc; under
the Environment (Protection) Act, 1986 were taken against all defaulting



The CPCB in collaboration with the Sl'CBs monitor:; the quality of fresh
water resources through a network of 784 monitoring stations located all over
the country. Of thesl', 414 stations are on rivers, 38 on lakes, 25 on
groundwater and 30 are situatl'd on other water bodies like canals, creeks
and drains.
Under the National Ambient Air Quality Monitoring Programme, 290
stations covering over 64 citil's/ towns are being monitorl'd by the CPCB.
Hazardous Substances Management Division is the nodal point within the
Ministry for planning and over-seeing the implementation of policies and
programmes on managt'mcnt of hazardous substances and chemical
pml'rgencics. The objective is to promote sate handling, management and use
ot hazardous substances including hazardous chemicals and hazardous wastes
in order to prevent potential damage to health and environment. The activities
are carried oul under thrt;'(' thrust areas, i.e., Chemical Safety, Sound
Management of Hazardous Wastes and MuniCipal Solid Wastes. Various Rules
have bl'en notified to ensure environmentally sound management of hazardous
substances and wastes in the country.
The Rules notified are implemented in association with CPCB/SPCBs/
I'CCs and regular monitoring is carried out by the Ministry. The Rules are
also modified / amended from time to time to rationalise and streamline the
policies and programmes to ensure environmentally sOlmd management of
hazardous substances.
A Central Control Room has been set-up in the Ministry to deal with
emergencies arising from hazardous chemicals. A Crisis Alert System has also
been established. A Red Book entitled Central Crisis Group Alert System
containing names, addresses and telephone numbers of Central and State
Authorities and Experts to be contacted in case of chemical emergencies has
been published and is regularly updated. A comprehensive National Chemical
Profile is being prepared. As on date there are 1,580 Major Accident Hazard
(MAH) Units in 234 districts of ]9 States/UTs of the country. Financial
assistance is being provided to the State Governments to strengthen
infrastructure for preparation of crisis management plans. So far, 1,107 onsite plans and 138 off-site plans have been prepared. Most States have
constituted State Level Crisis Groups. Under the Public Liability Insurance
Act, ]991 as amended in 1992, all the MAH units handling chemicals in excess
of the threshold quantities referred to in the Schedule are mandated to take
an insurance policy and deposit an equal amount in the Environment Relicf
Fund to ensure immediate payment to chemkal accident victims. Out of 180
hazard-prone industrial pockets, hazard analysis studies have been initiated
for 75 pockets.
As per current assessment, 4.4 million tones of hazardous wastes are
being generated by 13,011 units spread over 373 districts of the country. The
states of Maharashtra, Gujarat and Tamil Nadu account for over 63 per cent


India 2005

of the total hazardous wastes generated in the country. This data, which is
based on the waste categories indicated in the Hazardous Wastes (Management
and Handling) Rules, 19R9, is being revised in the light of the amendments
carried out in 2000 and 2003 and also in view of the directions of the Supreme
Tht, Ministry has so far supported the setting up of two common TSDFs
at Maharasthra (ITC-Belapur, Taloja), two in Gujarat (Ankleshear and Surat)
and one TSDF in Andhra Pradesh (RR District). The states of Kamataka and
Tamil Nadu are in the process of setting up such facilities.
The Municipal Solid Wastes (Management and Handling) Rules, 2000.
Fly-ash Notification 1999 and the Recycled Plastics (Manufacture and Usage)
Rules, 1999 amended in 2003 constitute the regulatory framework for the
management of solid wastes in the country. Use of fly-ash in construction,
laying of roads and reclamation of low-lying areas has been made mandatory.
Guidelines for use of fly-ash have also been formulated and circulated to the
State Governments. Manufacture and usage of plastic carry bags less than 8x20
inches in size has been banned.
The Batteries (Management and Handling) Rules, 2(XJ1 were notified in
May 2001 to regulate the collection, channelisation and recycling as well as
import of used lead acid batteries in the country. These rules inter-alia make
it mandatory for consumers to return used batteries. All manufacturers/
assemblers / reconditioners / importers of lead acid batteries are responsible for
collecting used batteries against new ones sold as per a schedule defined in
the Rules. Such used I(:~ad acid batteri's can be auctioned / sold only to
recyclers registered with the Ministry / CPCB on the basis of their possessing
environmentally sound facilities for recycling / recovery.
The Ministry is also the nodal point for three International Conventions,
namely, the Basel Convention on the Control of Trans-boundary Movement
of Hazardous Wastes and their Disposal, the Rotterdam Convention on the
Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade and the Stockholm Convention on Persistent
Organic Poll'Jtants (POPs). As a signatory to the Basel Convention, the
Ministry participates in all thl' technical and legal working group meetings.
India signed thl' Stockholm Convention on POPs on 14 May 2002. We are
yet to ratify the Convention. The Convention seeks to eliminate production,
usc, import and export of 12 POPs wherever techno-economically feasible and
in the interim period, restrict the production and use of these chemicals.

The National River Conservation Directorate (NRCD) functioning under the

Ministry of Environment and Forests is engaged in implementing the River
Action Plan under the National River Conservation Plan (NRCP) by providing
assistance to the State Governments. The objective of NRCI' is to improve the
water quality of the rivers, which are the major fresh water sources in the



country, through the implementation of pollution abatement schemes. So far

a toial of 31 rivers have been covered under the programme.
The first River Action Plan to bt' taken up under the NRCD was the
Ganga Action Plan. The objective of the GAP Phase-I was to improve the water
quality of the river Ganga. The action plan primarily addressed itself to the
interception and diversion for treatment of 873 million htres per day (MLD)
of municipal sewage in 25 towns. GAP Phase-l scheme has been closed on
31 March 2000. A sewage treatment capacity of 865 MLD has been created
under the programme and an amount of about Rs 452 crore has been spent.
The water quality of river Ganga is being monitored at 27 locations from
Rishikesh in Uttaranchal to Uluberia in West Bengal.
The Yamuna Action Plan (YAP) presently covers pollution abatement
works in 21 towns. The approved cost of YAP is Rs 509.45 crore of which
an expenditure by the states of Rs 474.57 crort' has been incurred so far. A
treatment capacity of 738 million litres per day (MLD) has been created. Of
the 179 schemes of pollution abatement sanctioned under Yamuna Action
Plan, 161 schemes have been completed. Additional pollution abatement
works in 15 towns of short gestation period amounting to Rs 222.60 crore
were approved in May 2001. All the works have been completed under this
Financial sanction for the second phase of Gomti Action Plan at Lucknow
has been accorded in June 2003 for Rs 263.04 croce. The project cost is to be
shared in the ratio of 70:30 between Central Government and state government.
The works in this phase will include two sewage treatment plants of a total
capacity of 375 MLD (over and above the 42 MLD capacity being set up in
tht, first phase), interception and diversion works of sewage of the remaining
drains and other miscellaneous items such as river front development, toilets,
plantation, public awareness and participation and acquisition.
The National Afforestation and Eco-Development Board (NAEB) was set up
in August 1992 for promoting afforestation, tree planting, ecological restoration
and eco-development activities in the country. Special attention is being given
to regeneration of degraded forest areas and lands adjoining forest areas,
national parks, sanctuaries and other protected areas as well as the ecologically
fragile areas like the Western Himalayas, Aravallis, Western Ghats, etc.
'The NAEB has evolved specific schemes to promote afforestation and
management strategies, which help the States in developing specific afforestation
and eco-development packages for augmenting biomass production through
a participatory planning process of Joint Forest Management (JFM).

MonitOring and Evaluation : All projects and schemes of NAEB are subject
lo close monitoring by implementing agencies, and concurrent and final
evaluations by independent evaluators. In addition, NAEB gets sample checks
conducted for plantations under 20-Point Economic Programme in 50 sample


india 2005

districts each year hy independent agencies. The institution of Forest

Dpwlopment Agency (FDA), which is a forest division-level federation of
village forest committees, has been formalised and supported under the
National Afforestation Programme (NAP) of NAEB in the Tenth Plan. The
initial monitoring reports of NAP assisted FDAs an' highly encouraging so
that it has been decided to extend NAP support to all possible 814 FDAs in
the country.
1~'~ional Cmtrl's : The NAEB has seven Regional Centres (Res) located in
Universities/ Nationallevd Institutions. These Centres help NAEB in promoting
extellsion of replicabl(' tl'chnologies and for dissemination of research findings.
They provide technical and extension support to the State Forest Department
in preparing projects for regeneration of degraded forests and adjoining lands
with pcople's participdtion, and also act as il forum for the exchange ideas
and ('xperil'nCl's amongst the States of the region as well across the regions.
In addition, these centres carry out problem-spt'cific studies as well as
('valuation of NAEB's programnws in the field, and organise training
programmes and workshops,

Professional and S,,'ciai Sen 1ices : NAEB takes up special studies of

important issues relating to policy formulation, programmt' impleml'ntation,
etc. The NAEB also ('ngagl's spl'ciill consultants for taking up a variety of
Em-Task forces: This is an on-going scheme. Ecological Task hlrces (ETFs)
of ex-st'rvict'mt'n are employed in remot(' and difficult areas to undertake
restoration of dl'gradt'd ecosystems through afforestation, soil conservation
and watef n'source management techniques.

Kl'l'ping in view the objectives of achil'ving 25 per cent tree I forest cover as
part of the monitorabll' target set out for the Tenth Five- Year Plan, the Ministry
ha~ launclwd a very ambitiolls afforestation programnw under NAEB with
fll'ople's inv(llvt'ment for the slistainablt' management of the country's forests.
Under this programme, all afforestation schemes of the Ministry have been
brought undef a single National Afforestation Programme being implemented
through decentralised Forest Development Agencies (FDA) set up at the forest
division level. The FDAs are a confederation of Joint Forest Management
Cllmmittees OFMCs) at the village level to provide an organic link between
the forest departments and the grass-root level communities.
During the Tenth Plan, an amount of Rs 1264.44 crore is earmarked
which will, apart from generating gainful employment, create community
assets for meeting for requirement of fuel wood, fodder and small timber.
As many as 515 NAP projects have been sanctioned so far with a physical
target of treating 7,61,206 hectares (ha) land. An amount of Rs 426.96 crore
has already been released during 2002-03 and 2003-04. Out of these 92 projects
with an outlay of Rs 225.41 crort' have been sanctioned for the North Eastern



States for the Tenth Plan treating an area of 1,41,79R ha. An amount of Rs
77.44 crore has been released during 2002-03 and 2003-04. Out of these 92
projects 14 projects are being implemented for ilium (shifting cultivation) land
An amount of Rs 230 crort' is proposed for 2004-05 out of which Rs 40
core is for north-eastern states under the NAP scheme.
lndia is a party to thl' UN Convention to Combat Dt.'sertification (UNCCD)
,lI1d Ministry of Environment and Forests is the National Coordinating Agency
for t)w implementation of the UNCCD in thl' country. As an affected party,
a 20-year comprehensiVl' National Action Programme (NAP) to combat
dpsl'rtification in the country has been prepared.
for the Tenth Five Year Plan, activities haw been initiated that include,
dll1tll1g others, assessment and mapping of land dpgradation, drought
nHdlitoring and early warning system groups, drought preparedness
contingency plans, and on-farm research activities for development of
Indigenous technology, etc.
Under UNCCD, a Regional Action Programme for Asian Countril~s has
b"en formulated to strengthen the existing capacity of the memb('r country
pM ties and to network with each other for effective measures to combat
dlsl'rtificatioll. Six Thematic Programme Nl'twork (Tf'N) has bel'n identified
tor this purpose.
India is host country for TPN - 2 "Agro-forest and Soil Conservation
in Arid, Semi-arid and Dry Sub-humid Areas". The Central Arid Zone
Rpsearch Institute (CAZRI), Jodhpur has been identifild as National Task.
Managt'r. Tprl- 2 has its Web site at htt:v.:1Lcazri.raj,ni~jI1 by CAZRI.
Similarly, India is participating actively in TPN - 1 "Desertification
Monitoring and Assessment". A pilot projPct is under progress through the
Indian Space Research Organisation (ISRO), Space Application Centre,
Ahmedabad at a cost of Rs 1.3'1 crore. India has also joim.'d the TPN - 4 "Water
Resources Management for Agricultun in Arid, Semi-arid and Dry Sub-humid
Areas". The Ministry of Water Resources has been identified as National Task
Manager for TPN - 4 while TPN - 3 on "Range and pasture Management"
has just been launched with Iran as host country. The remaining TPNs, i.e.,
TPN - 5 "Drought Preparedness and Mitigation in the Context of Climate
Change" and TPN - 6 "Strengthening Planning Capacities for Drought
Management and Controlling Desertification" are yet to be launched.
G.B. Pant Institute of Himalayan Environment and Development was
t'stablished in August 1988, at Kosi-Katarmal, Almora (Uttaranchal) as an
autonomous Institute of the Ministry of Environment and Forests. TIll' Institute

India 2005


is identified as a focal agency, to advance scientific knowledge, to evolve

integrated management strategies, demonstrate their efficacy for conservation
of natural resources and to ensure environmentally sound development in the
Indian Himalayan Region (IHR). The institute executes its mandate through
the headquarters located at Almora, and through four regional units located
at Mohal-Kullu (Himachal Unit), Srinagar (Garhwal Unit), Tadong-Gangtok
(Sikkim Unit) and Ita nagar (NE Unit), so as to promote S&T initiatives for
overall development in the IHR. The broad areas of concern are covered
through seven Core Programmes, namely, Land and Water Resource
Management. Sustainable Development of Rural Ecosystems, Conservation of
Biological Diversity, Ecological Economics and Environmental Impact
Assessment, Institutional Networking and Human Investment, Environmental
Physiology and Biotechnology and Indigenous Knowledge Systems.
Land and water are the two prime resources for sustaining life in the
IHR. To make the optimal use of these resources researches were conducted
and environment-friendly land management models were demonstrated and
trainings were imparted among the rural communities. Rain water harvesting
for rehabilitation of community wastelands was one of the approach. The
Institute followed watersht'd management approach to serve the local needs
for sustainable management and utilisation of bio-physical resources in several
watersheds across the IHR.

The Indian Council of Forestry Research and Education (ICFRE), Dehradun

is tht' pn'mier forestry research organisation of the country with the mandatt'
to formulate, organise, direct and manage forestry research, transfer the
technologit's developed to the states and other user agencies and impart
forestry education.
The following forestry research institutes and centrf'S under the Council
are responsible for undertaking research in their respective eco-climatic zones:

(i) Forest Research Institute, Dehradun; (ii) Arid Forest Research Institute,
Jodhpur; (iii) Rain Forest Research Institute, Jorhat; (iv) Institute of Wood
Sciences and Technology, Bangalore; (v) Tropical Forestry Research Institute,
Jabalpur; (vi) Institute of Forest Genetics and Tree Breeding, Coimbatore; (vii)
Himalayan Forest Research Institute, Shimla; (viii) Institute for Forest
Productivity, Ranchi; (ix) Centre of Social Forestry and Eco-rehabilitation,
Allahabad; and (x) Institute of Forestry Research and Human Resources
Development, Chhindwara. In addition, the Indian Plywood Industries
Research and Training Institute, Bangalore, an autonomous body of the
Ministry, is a premier institution engaged in research and training activities
on mechanical wood industries technology. The Indian Institute of Forest
Management, Bhopal, an autonomous organisation of the Ministry also
undertakes training, research and consultancy in forest management.

Research programmes in wildlife are carried out by the Wildlife Institute of



india, Dehradun, and the Salim Ali Centre for Ornithology and Natural
History, Coimbatore. Several projects on habitat evolution, elephant movement,
ecology of gharials and turtles, status of endangered species, behavioural
ecology, bio-diversity, resource study conservation, ecology and management
llf specific animals, etc., are being carried out by both these Institutes. They
nmduct research on the ecological, biological, socio-economic and management
aspects of wildlife conservation of various parts of country.
The basic objective of the National Natural Resources Management System
(NNRMS) is the utilisation of Remote Sensing Technology with the conventional
methods for optimal use and management of the natural resources of the
country. A Standing Committee on Bio-resources and Environment (SEB) has
been constituted and it has identified 49 priority areas, out of which more
than 20 priority areas have been covered. 73 remote sensing application
projects addressing key environmental and ecological issues such as
management of forests, grassland, faunal resources, wetland, coastal areas,
mangroves and coral resources, land degradation, impact of mining and
industrialisation, river pollution, etc. More than forty projects have so far been
Priority is accorded by the Ministry to promote environmental education,
create environmental awareness among various age groups and to disseminate
information through Environmental Information System (ENVIS) network to
all concerned. A major initiative to include environment education as a
s~'parate and compulsory subject in the education curricula has been taken
hy the Ministry at all levels of formal education, i.e., secondary, senior
secondary and tertiary levels.
The Ministry also accords priority for th,,' promotion of non-formal
environmental education and creation of awareness among all sections of the
society. It organises seminars / symposia / workshops, training programmes,
National Green Corps (NGC), eco-clubs, audio-visual shows, etc. A National
Environmental Awareness Campaign (NEAC) is organised every year. 'WaterElixir of Life' was the theme for th~~ year 2002-03. The Global Learning and
Observation to Benefit the Environment (GLOBE), and International Scheme
and Education Programme with stress on hands-on participatory approach
an' still continuing.
Nine Centres of Excellence have been set up by the Ministry to
strengthen awareness, research and training in priority areas of Environmental
Science and Management.
The National Museum of Natural History (NMNH) set up in New Delhi
in 197R, is concerned with the promotion of non-formal education in the area
of various aspects of environment, the muSt~um also conducts temporary
exhibitions and a number of educational programmes and activities for school
children, college youth and the general public. Three Regional Museums of
Natural History have been established at Mysore, Bhopal and Bhubaneswar.


India 2005

The Indian Council for Forestry Research and Education is the focal point
of forestry education and extension development in the country. The Indira
Gandhi National Forest Academy, Dehradun, imparts in-service training to
Indian forest Service (IFS) professionals. The Forest Survey of India (FSI)
organises training programme for forestry personnel on various aspects such
as application of n'motl' s('nsing techniques in forestry, dc. State Forest St'rvice
('olll'g(' provide training to thl' officers of tht' State Forest Service (SFS). The
Indian Plywood Industries Research and Training Institute, Bangalore, organises
short-term courses in the area of wood science. The Indian Institute of Forest
Management, Bhopal, also provides training in forest management and allied
subjects to persons from the Indian Forest Service, forest development
corporations, and forest-related industries to develop forestry programmes.
The Wildlife lnstituk' of India, Dehradun, provides in-service training to forest
officers, wildlife ecologists and other professionals for conservation and
manag('ml'llt of the wildlife resources of the country.
An Environmental Information System is the nodal point in the Ministry, for
Environmental Information System (EN VIS), operation of the National Natural
Resources Management System (NNRMS) Programmes and the NGO cell. A
new portal at URL httplj_~.w.~,~l]_~i_~"_I1j.ill was launched to Network
ENVIS Centres and Nodl's. This provides direct link to ENVIS Centres and
Instituted in 1987, the Illdira Gandhi Par.ttavaran Puraskar (IGPP), consisting
of a cash prize of ruP('('s five lakh, a stroll and a citation, is awarded every
yeM to an organisation and to an individual for significant contributions in
thl' field of environment.
Thl' Indira Pri.ttlldarsililli Vrikshmitra Award (IPVM) was constituted by
th(' Ministry in 1986 to recognise outstanding contribution of individual and
organisation in the field of afforestation and wasteland development.
Tht' awards are given on the basis of innovative efforts and outstanding
work in afforestation, with special reference to wastelands development and
involvement of the ppople.
The MaiJll1'riksJra PUraSkJlr, instituted by the National Afforestation and
Em-Development Board (NAEB) during 1993-94, is given every year to
individuals/ organisations for tfl'es of notified species haVing the largest girth
and height and in good vigour. The award consists of a cash prize of Rs 25,000,
a plaqup and a citation.
With the objective of encouraging original and applied research among
Group' A' scientists in the Ministry and its associated offices and autonomous
bodies, Paryavartln Vllm Vall Mantra/aya Vishist Vaigyanik Puras/cQr was

instituted in 1992-93. The scheme provides every year for two awards
Rs 2(),OOO each.



The Pitambar Pant National [1H-,iromnel1l Fellowship Award instituted

in 1978, is awarded annually to recognise, encourage and support exceJlenCt'
in any branch of research related to environmental science.
Instituted in 1995, the B.P. Pal Natiollal Em'ironml'nf Fellowship Award
for bio-diversity is in recognition of significantly important research and
devciopment contributions and is intended to encouragt' talented individuals
to (h'vote themselves fully to R&D pursuits in the field of wild-life conservation
ilnd research.
The Ministry has approved institution of Amritadevi Wildl!fc Protection
Award, in the name of Amritadevi Bishnoi, to be given to Village Communities
tor showing valour and courage for protection of wildlife. To encourage work
of t'xcdlence in taxonomy, the Ministry has instituted the Janaki Ammal
National Award ill Tiu:ollomy. The award carries a cash prize of Rs 50,000
and a citation.
The National Awards for Prevf'l1tion of Pollution and Rajiv Gandhi
Environment Awards for Clean Technology 2002-03 wert' given to five
categories of highly polluting industries in the large scale sector.

The Ministry has undertaken the formulation of a Comprehensive National
Environment Policy to harmonise the demands of development and
environment in response to the need to weave environmental considerations
into the fabric of development process and national life. The Government's .
policies on environment had its beginning in the Fourth Five Year Plan. In
the Fourth Plan, a specific focus on the need for harmonising india's
dl'velopment with environment was brought out. This was followed by the
setting up of National Committee on Environmental Planning and Coordination
and the Tiwari Committee recommended the creation of separate Department
of Environment to coordinate issues arising out of economic development and
social needs. The Department of Environment was created in 1980 and the
Ministry of Environment and Forests was established in September 1985.
The Water (Prevention and Control of Pollution) Cess Act, 1977, was
enacted to provide for levy and collection of Cess on water consumed by
specified industries and local authorities so as to augment the resources of
th(' Central and State Pollution Control Boards. To augment the resourCes an
Art was passed amending the earlier Cess Act and the amended Act, was
enforced in May 2003.

International Cooperation and Sustainable Development (ICSD) Division is the
nodal point within the Ministry for United Nations Environment Programme
(UNEP), Nairobi, South Asia Cooperative Environment Programme (SACEP),


India 2005

Colombo and the matters relating to sustainable development. The Division

also handles bilateral issues and matters pertaining to multilateral bodies such
as the Commission on Sustainable Development, Global Environment Facility
(GEF) and the regional bodies like Economic and Social Commission for Asia
and Pacific (ESCAP), South Asian Association for Regional Cooperation
(SAARC), European Union (EU) and the India-Canada Environment Facility.
The Ministry is also the nodal agency for various environment related
multilateral conventions and protocols. These include Convention on Wetlands
of International Importanct!, especially as Waterfowl habitat, Vienna Convention
for the protection of the Ozone Layer, Montreal Protocol on Substances that
deplete the Ozone Layer, Conventions on Biological Diversity, UN Framework
Convention on Climate Change, Kyoto Protocol, the Basel Convention on
Trans-boundary Movement of Hazardous Substances, Convention to Combat
Desertification and Stockholm Convention on Persistent Organic Pollutants,
Global efforts to protect the ozone layer started in the early seventies leading
to the adoption of the Vienna Convention on Ozone Depleting Substances
(ODS) in 1985 and the Montreal Protocol in 1987. India acceded to the
Montreal protocol, along with its London Amendment in 1992. To meet the
country's commitmt'nt on ODS phase-out under the protocol and to disseminate
information on ozone and ODS, the Ministry has established an Ozone Cell.
The Ministry provides custom / excise duty exemption for ODS phase-out
projects and detailed guidelines/ procedures have been finalised to grant duty
exemption for new investments with non-ODS technologies. The Reserve Bank
of India has issued directions to all financial institutions and commercial banks
not to finance new establishments with ODS technology. Licensing system has
been adopted to regulate import and export of ODS. A ban has also been
imposed on trade of ODS with non parties. The Notified Ozone Depleting
Substances (Regulation and Control) Rules, 2000, provides a legal framework
for ensuring compliance of the Montreal Protocol. It sets the deadline for
phasing out of various Ozone Depleting Substances, besides regulating
production, trade, import and export of ODS. The rules prohibit the use of
CFCs in the manufacture of various products beyond 1 January 2003 except
in metered dose inhalers and for other medical purposes. Similarly, use of
halons is prohibited after 1 January 2001 except for essential uses. Other ODS
such as carbon tetrachloride and methyl chloroform and CFC for metered dose
inhalers can be used up to 1 January 2010. Further the use of methyl bromide
has been allowed up to 1 January 2015.

India is party to thl' United Nations Framework Convention on Climate
Change (UNFCCC). The objective of the UNFCCC is to stabilise Greenhouse
Gas (GHG) concentrations in the atmosphere at a level that would prevent



dangerous human induced interference with the climate system. The convention
enjoins upon the parties to communicate to the conference of parties through
its Secretariat the following elements of information: (i) a national inventory
of anthropogenic emission by sources and removal by sinks of all greenhouse
gases not controlled by Montreal Protocol, to the extent its capacity permit;
(ii) A general description of steps taken or envisaged by the party to
implement the convention; (iii) Any other information that the party considers
relevant to the achievement of the objective of the convention; and (iv) The
Ministry is the executing and implementing agency of the project.
India acceded to the Kyoto Protocol in August 2002 and one of the
objectives of acceding to the Kyoto Protocol was to fulfill prerequisites for
implementation of Clean Development Mechanisms (CDM) in accordance
with the national sustainable priorities. The Kyoto Protocol commits the
developed countries, including economies in transition to reduce emissions
of greenhouse gases by an averagE' of 5.2 per cent below 1990 levels during
2008-12. A National COM Authority was approved by the Cabinet in
December 2003 and has since started functioning. The Authority has so far
approved 25 projects mainly in the field of Renewable Energy. MUnicipal Solid
Waste, Hydrofluorocarbons (HFCs), Small Hydro and Energy Efficiency, etc.
lt is expected that implementation of these projects would help in attracting
foreign investment as well access to more efficient technologies. At the Ninth
Conference of Parties (COP-9) held in Milan, Italy during 1-12 December 2003,
the major decisions adopted relate to setting forth the modalities and
procedures for the Sinks projects in the first commitment period; guidance
to the GEF to make operational at the earliest the Special Climate Change
Fund; provide further guidance to the Least Developed Countries Fund. The
high-level political debate during the conference took place through three
informal ministerial roundtables focusing on adaptation, mitigation, sustainable
development, technology and assessment. Ministers agreed that climate
change remains the most important global challenge to humanity and that
its adverse effects are already a reality in many parts of the world. One of
th(' obligation of India under the Convention is to furnish information to
UNFCCC Secretariat regarding implementation of Convention in the form of
an initial National Communication has now been submitted.



THE Ministry of Finance is responsible for administration of finances of the

Government. It is concerned with all economic and financial matters affecting
the country as a whole including mobilisation of resources for development
and other purposes. It regulates expenditure of the Govt'rnment including
transfer of resources to the states. This Ministry now comprises four
departments, namely, (i) Economic Affairs, (ii) Expenditure, (iii) Rt'vcnue, and
(iv) Disinvestment.


The Departml'nt of Economic Affairs (DEA) consists of nine main divisions,

viz., (i) Economic; (ii) Finance; (iii) Budget; (iv) Banking (including Insurance);
(v) Capital Market, External Commercial Borrowing and Pension Reforms;
(vi) Bilateral Cooperation; (vii) Foreign Trade and Investment; (viii) Fund
Bank, (ix) Infrastructure and ADB; (x) Japan and I~E/UN; (xi) Currency and
Coinage; (xii) Administration and (xiii) Aid, Accounts and Audit. Thl'
Department ill/a alia monitors current economic trends and advises the
Government on all matters having bearing on internal and external aspects
of economic management including, prices, credit, fiscal and monetary policy
and investment regulations. This Department also supervises policies relating
to Nationalised Banks, Life and General Insurance besides managing
Governmcnt of India Mints, Currency Presses, Security Presses and Security
Paper Mills. All thc external financial and technical assistance n'ceived by
India, l'xcept through specialist'd International organisations like FAO, IlO,
UNIDO and except under international/bilateral specific agreement in the
field of sciencl' and technology, culture and education are also monitored by
this Department. Department of Economic Affairs is also responsible for
preparation and presentation to the Parliament of Central Budget and the
Budgets for the State Covernments under President's Rule and Union
Territory Administrations.
Recent developments: Some of the major goals enunciated in the Budget
2004-05 art' doubling agricultural credit in three years, providing farm
insurance and live stock insurance, more housing for the poor, improving
access to medical can' through health insurance, greater emphaSis on watel
harvesting and drinking water supply and providing electricity for all. The
Budget has proposed an additional budgetary support of Rs 10,000 crore to
the Annual Plan over the amount of Rs 1,35,031 crore provided in the Interim
The Budget 2004-05 has proposed a new programme in the Central sector
to upgrade 500 Industrial Training Institutes (lTls) over the next five years
in order to enhance the quality of technical education and to meet the
technological demands of the industry. The universal Health Insurance
Schemt' introduced in 2003-04 is proposed to be redesigned to target people



below poverty line. A new group health in"urance scheme is propost'd to be

Intwd,lccd for members of St'lf-Ht'lp Croups and other credit Iinkt'd groups.
;\ Ill'W schemt' called the 'S(;:'nior Citizens Savings Schenw' offcring an interest
1"<11t' of nine per cent per annum, has been proposed to protect th(, interest
income of senior citizens replacing the \lilri~lJtll ['cllsion Rima Y(I;lIna. The
C;p\'l'rnment's commitment to maintain a strong and effectin' public sector
llpl'rating in a competitive environment is manifest in tht' form of proposed
l'lluitv support of Rs 14,194 cron' and loans of Rs 2,132 crore to Central Public
'il'ctUI' enterprises (including Railway~;).
A numb{'r of initiatives have been announced to improve the financial
,itu<1tion of States. These incllldt' extension of dl'bt swap scheme to high-cost
Il"ms taken by States from NABARD and other agencies, rt'duction Df interl'st
on Central loans from 105 per cent 10 nine per ct'nl pt'r annum. Budget
2l1()4-05 has proposed a Backward States Grant Fund with a corpus of
R~ 25,O(lO cron,' over a five-year period to enable taking up social and physical
intrastructure programmes in thl' poorest and most backward districts in tht'

The Budget 2004-05 has outlim'd the need for il value addt'd tax and
p.lrll1l'rship with States in reforming and restructuring the fiscal institutions
and moving towards a single national markd. Thirteen more services have
bl'en brought under the tax net, widening thl' base of service tax and the rate
Ilf service tax has bl'en raised from existing level of pight per cent to 10 per
lm!. Budget 2004-05 has proposed introduction of a security transaction tax,
;Ibolition of long-term capital gains tax on securities and reducing short-term
capital gains tax on st'curities from l'xisting level of 30 per cenl to 10 per

The rules under the Fiscal Responsibility and Budget Management Act,
2()():1 were notified on 5 July 2004. The important numerical targets specified

these rules include reduction of fiscal deficit by a minimum of 0.3

percl'ntage points every year, reduction of revpnue deficit by a minimum of
d ..') per cent every year, cap for the guarantees given by the Central
Covemmt'nt at 0.5 per cent of CDP. Under the rules, additional liabilities
(including l'xtt'rnal debt at current exchange rate) shall not be in excess of
nil1l' per cent of GOP for 2004-05 and this shall bt' progressively reduced by
cit Il'ast one percentage point in each subsequent year. The operationalisation
of the Fiscal Responsibility and Budget Management Act will help in fiscal

lhe main sources of the Union tax revenue are customs duties, Union t'xcise
dUtit'S, service tax, corporate and income taxes. Non-tax revenues largely
comprise interest receipts, including interest paid by the Railways, dividend
and profits. The main heads of revenue in States are taxes and duties levied
bv the respective State Governments, share of taxes levied by the Union and
grants received from the Union. Property taxes, octroi and terminal taxes are
the mainstay of local finance,


India 2005

Devolution of resources from the Union to the States is a salient feature of
the system of federal finance of India. Apart from their share of taxes and
duties, State Governments receive statutory and other grants as well as loans
for various development and non-development purposes. The total amount
of resources directly transfE'rred to thE' states during each Plan period is shown
in table 13.1. In addition, resources are also transferred by Central Government
to the implementing agencies under various schemes without routing it
through State budgets.
(Rs in aon"

and Duties


























With effect from 1 April 2002, a new system of transferring the entire
net collections of small savings to States and UTs as loans from the Public
Account is in vogue.
An estimate of all anticipated receipts and expenditure of the Union for the
ensuing financial year is laid before the Parliament. This is known as 'Annual
Financial Statement' or 'Budget' and covers Central Government's transactions
of all kinds, in and outside India, occurring during the preceding year, the
year in which the Statement is prepared as well as ensuing year or the 'Budget
Year' as it is known.
The presentation of Budget is followed by a general discussion on it in
both the Houses of Parliament. Estimates of expenditure from the Consolidated
Fund of India are placed before the Lok Sabha in the form of 'Demands d
Grants'. All withdrawals of money from the Consolidated Fund are thereafter
authorised by an Appropriation Act passed by the Parliament every year, Tax
proposals of Budget are embodied in a Bill which is passed as the 'Finann'
Act' of the year. Estimates of receipts and expenditure are similarly presented
by the State Governments in their legislatures before the beginning of the
financial year and legislative sanction for expenditure is secured through
similar procedure. Budgetary position of the Union from 2001-2002 onwards
is shown in table J3,2.




Public debt includes internal debt comprising borrowings inside the country
like market loans, compensations and other bonds, treasury bills issued to
State Governments, commercial banks and other parties as well as nonnon-interest bearing rupees securities issued to the international
financial institutions, and; external debt comprising loans from foreign
countries, international financial institutions, etc. Table 13.3 gives an analysis
llf public debt and "other liabilities" at the end of selected years. The "other
liabilities" include outstandings against the various small saving schemes,
provident funds, securities issued to Industrial Development Bank of India,
Unit Trust of india and nationalised banks, deposits under the special deposit
schemes, reserve funds and deposits.


(Rs in crore)








Rpvenue Expenditure





Rt'venue Defidt





Capital Receipts





37,342 #I

79,125 #

1,68,507 $
31,100 #I




1,37,407 $





Total Receipts




4,77,829 $

Total Expenditure









Borrowings and other

C.lpital Expenditure



Revenue Receipts

Recoveries of Loans and

other Receipts



BUdgetary Deficit" (9-B)


fiscal Deficit [(1+5)-9-6+10) 1,40,955





Ba~'d on provisional a~'tua)s for 2002-03

not include R~. 60,000 crore to bto raised under Market Stabilisation Scheme, which
will remain in cash balance of Central Government and will not be used as expenditure.

Include receipts from States on account of debt swap scheme.

India 2005




(As at the end of March)

(Rs in (Tor,,)







Public Debt





Ii, 19, lO5































Total Publk Debt (1+2)





Other Liabilities @









Intl'rrl<l I Dent


to \'ii)

Markt,t L(lan


OtllL'r (includ{' spl. B.. arer Bonds)


91 1l"v' Tn',lsuc\, Bills


Sp,'cial St>curill ..s isstlt'd to the

Rill III l'OJ1Vl' fSi(Hl of TCt'olsury Bills

Sp",-ial tloating ,md other lo,ms


l ltlll'r sp"Ci,ll


St'curitit's 'Igilin," smoll)


Lxh'rn,ll Debt'




ri ties issUl'd to RBI


Total Public Debt and

Other Liabilities

Tht'st' !'I'l'cesent mainly lIon-negotiolble, no interest ixolring securihe, issued to intemahort.ll

financial institutions like Inh'rn.ltinnal Monetary Fund, lntemati(>llal Bank foc Reconstruction and Dl'velopment ilnd Asian Development B,lIlk.

Comprisl'~ accnwl, under National Small Sa\'ings Fund, Provident Funds, spt>cial deposit'
on Non-(;overnnwnt providt'nt funds and other reserve funds and dl'posits.

Not.. : Extl'nhll debt is at book villu ..

BE : Budget Estimates

Tn facilitate Open Market Operations (OMO) of RBI, the entire outstanding
babnn' of Rs 61.818 crort' of Special Securities issued earlier in lieu of ad
hoc Treasury Bills Wf'rt' converted into dated securities during the current

During the year, in continuation of the policy initiated during 2002-2003,

Central Government prepaid external multilateral and bilateral loans amounting
to about USD 3.7 billion by raising rupee resources through private placement
of Government securities with RBI and purchasing foreign exchange with the



The Central Government completed thp first ever Debt Buyback Scheme,
whl.'ft'in high coupon securities amounting to Rs 14,434 crore (Face value)
\\'(.'f(' bought back through a screen based auction resulting in lower interest
outgo and elongation of maturity profile of its market loans.
The Central Government in consultation with RBI. has launched Market
Scheme (MSS). The Scheme envisages issue of dated securities
and / or treasury bills within a specified ceiling, so as to absorb exCl'SS liquidity
in the market. The receipts are being maintained in a separate account with
RRi and are to be utilised only for rt'paymenl purposes. The scheme was
functional from April 2004.

The Central Government utilised the receipts under the Statl' Debt Swap
Scheme to repay its own high-cost liabilities to NSSF.

TIH' persistent fiscal deficits and concomitant growth in tht. public debt burden
h"ve been identified as the most difficult challenges aEfl'cting the country's
l'COJ1flmic growth prospects. To check the potentially damaging impact of
fiscal indiSCipline on macro-economic parametl'rs, the Parliament had passed
<1 law in August 2003. The Fiscal Responsibility and Budgement Management
(FRBM) Act, 2003 came into forct' on 5 July 2004.
The FRBM Act, inter alia, mandates the Government to eliminate the
r('venue deficit by 2007-08. On 8 July 2004 the Finance Minister has proposed
.In amendment to the FRBM Act to shift this target year to 2008-09. The FRBM
Rules prescribe a minimum annual reduction in the revenue deficit by 0.5
per cent of GOP.

Other obligations of the Government under the FRBM Act, 2003 and
FRBM Rules, 2004 : (i) To reduce the fiscal deficit by an amount by at least
OJ per cent of the GOP, so that deficit is less than three per cent of GOP
by the end of 2007-08. (ii) To limit Government guarantees to at most 0.5
pl'r cent of the GDP in any financial year. (iii) To limit additional liabilities
(inl'iuding external debt at current exchange rate) to 9 per cent of GOP in
2004-05, 8 per cent of GDP in 2005-06, 7 per cent of GDP in 2006-07, 6 per
cent of GOP in 2007-08. (iv) Not to borrow directly from the Reserve Bank
of India with effect from 1 April 2006. (v) To present three statements-before
the Parliament alongwith the annual budget Macroeconomic Framework
Statement, FiscaJ Policy Strategy Statement and Medium-term Fiscal Policy
Statement. (vi) To move towards greater fiscal transparency and start
disclosing specified information such as arrears of unrealised revenue,
guarantees and assets latest by 2006-07.
Thus, the FRBM Act not only mandates minimum quantifiable targets
for reducing the growth of debt, deficit and guarantees in a time bound
manner but also embeds a series of improvements in the area of fiscal
transparency and medium-term fiscal planning to improve budget management
and catalyse the process of true democratic control of fiscal policy through
informed public opinion on the risks inherent in unabated growth in debt
Lind deficit.


India 2005
The deficit targets envisaged in Budget 2004-05 are as follows:

S.No. Item


ReviS('d Estimates

Rev('nue f)(>ficit as

Budget Estimates




















p<'rcenlag(' of CDI'

Fiscal Defilit


percentage of GDP

T,lx rPvenu(' as

JX'rcentage of CDI'

Total outstanding
liabilities <IS
percentage of GOP

The Department of Economic Affairs (DEA) is the nodal department for
procuring and co-ordinating foreign assistance from multilateral/bilateral
agencies. The State Governments and other agencies that wish to avail
themselves of external assistance can forward their proposals to the DEA
through the Central Administrative Ministry. The Ministry/Department
recommends the proposals / schemes for foreign assistance to the DEA after
ensuring plan priorities, budgetary clearance, administrative clearance,
including clearances from Planning Commission at an appropriate stage.
For all externally aided projects, the loan agreements with the multilateral/
bilateral agencies are signed by the DEA (as the nodal department in the
Central Government) since this is a subject on the Union list. The DEA is
also responsible for all policy issues pertaining to external aid received by

The external assistance received from various multilateral and bilateral

agencies is passed on to the States as Additional Central assistance (ACA)
on terms and conditions as applicable to Central assistance for State plans.
For Special Category States, ACA is given in 90:10 mix of grants and loans.
For States not falling under the special category status, ACA is given in 30:70
mix of grants and loans.
During 2003-04 the total aid utilisation on Government and NonGovernment account was Rs 18,487.83 crore against Rs 15,206 crore during
2002-03. As ACA to the States/UTs, Rs 9,324.36 crore have been released
during 2003-04 against Revised Estimate (RE) of Rs 8,500 crore.
The Union Budget for 2003-04 announced that in future India would
receive bilateral assistance only from Japan, U.K., Germany, EC, USA and the
Russian Federation. Assistance from other bilateral partners, if any, would
be directed towards NGOs, etc.



The first bank of limited liability managed by Indians was Oudh Commercial
Bank founded in ~ Subsequently, Pl!.r:!1!~_N~tional Bank was established
in 1894. Swadeshi movement, which began in 1906, encouraged the formation
of a number of commercial ban~<;. Banking crisis during 1~13 -1917 and failure
of 588 banks in various states during the decade ended 1949 underlined the
need for regulating and controlling commercial banks. The Banking Companies
Ali was passed in February 1949 whi:h was subsequently amended to read
as Banking Regull.ltiQn Act, 19_~9. This Act provided the legal framework for
regulation of the banking system


The largest bank-IlTleeri<i1 Ba.rtk _9l_India -

was nationalised i~. __

and rechristened as ?t~!~J~ank,of India. followed by formation of its seven

Associate Banks in 1959. With a view to bringing commercial banks into the

mainstream of economic development with definite social obligations and

objectives, the Government issued an ordinance on 19 July 1969 acquiring
llwnership and control of 14 major banks in the country. Six more commercial
banks were nationalised from 15 April 1980.
As certain rigidities and weaknesses were found to have developed in
the banking system during the late eighties, the Government felt that these
had to be addressed to enable the financial system to play its role in ushering
in a more efficient and competitive economy. Accordingly, a high-level
Committee under the Chairmanship of Shri M. Narasimham on the Financial
System (CFS), was set tip'on 14 August 1991 to examine all aspects relating
to the structure, organisation, functions and procedures of the financial
systems. Based on the recommendations of the Committee (Chairman: M.
Narasimham), a comprehensive reform of the banking system was introduced
in 1992-93.

In ] 993, in recognition of the need to introduce greater competition, new

private sector banks were allowed to be set up in the Indian banking system.
These new banks had to satisfy certain requirements. Further, revised
b'Uidelines for entry of new banks in private sector were issued on 3 January
The applications for setting up new banks received within the stipulated
period were scrutinised by RBI and "in-principle" approvals were issued to
two entities on 7 February 2002 and one of which Kotak Mahindra Bank, on
satisfactory completion of other formalities, was granted banking licence on
6 February 2003. The bank commenced its operations with effect from 22
March 2003 and subsequently it has been included in the Second Schedule
to the Reserve Bank of India Act, 1934 on 12 April 2003. On satisfactory
completion of all formalities, licence has been granted to "Yes Bank Ltd.," on
24 May 2004. The bank is expected to commence banking operations sh?rtly.
The Reserve Bank of India has decided in January 2002 that it will only
consider inviting fresh applications for new banks in the private sector after


India 200S

thr(:'(' years, after furthl'r reviewing thl' working of the private sector banks.
A high-level Committee, undt'f the Chairmanship of Shri M. Narasimham
was constituted by the Government of India in December 1997 to review thl'
record of implementation of financial systl'm reforms recommended by the
CFS in 1991 and chart the reforms necessary in the years ahead. Tht'
Committee submiUt'd its report to the Governml:'l1t in April 1998. Some 01
the recomml'ndations of till' Committee, on prudential accounting norms,
particularly in the areas of Capital Adequacy Ratio, classification of government
guaranteed advances, provisioning requirements on standard advances and
mon' disclosures in thl' Halance Sheds of banks were dcn'pted and implemented.
Recl'nt majm initiativl's undertaken for stnmgthening the financial sector in
plIrsliancl' of th(' recommendations of the above Committee relate to guidelines
to banks on Asset-Liability Management and integrated risk management
sysh'ms, cllmpliancv with Accounting Standards, consolidated accounting and
supervision, fine-tuning of prudential norms for income recognition, assl'l
classification and provisioning for NPAs, etc. The guidelines on setting-up of
Off-shoTl' Banking Units in Special Economic Zones, fair Practices Code for
Lenders, Corporatl' Governance, Anti-Money Laundering measures, etc., an'
other important dt'vdopments in the banking sector. The Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002 is expected to facilitate NPA management by banks more effectively
The Rl'sl'rve Bank of India (RI:ll) was established on 1 April 1935 and
nation.llised on 1 January 1949. The Bank is tht, sole authority for issue of
currency in India other tha~~~ee coins an~ s.ubsidi~r..tc2ins and notes.
As till' agent of the<::'eiltraI Government, the Reserve Bank undertakt,s
distribution of one-rupee coin as well as small coins issued by the Government.
Tht, Bank acts as banker to the Central Government, and Statl' Governments
by virtue of agreements entered into with them, comm('rcial banks, state cooperative banks, and some of the financial institutions. The Reserve Bank also
handles the borrowing programme of the Central and State Governments. It
formulates and administers monetary policy with a view to ensuring pricl'
stability while promoting higher production in the real sector through proper
dt'ployml'l1t of credit. The RBI plays an important role in maintaining orderly
conditions in th(' foreign exchange market and acts as an agent of thl'
Government in respect of India's membership of International Monetary Fund.
The Reserw Bank also performs a varil'ty of developmental and promotional
functions. It regulates and supervises commercial banking system, Urban Cooperative banks and non-banking financial sector.
Commercial Banking System in India consisted of 286 scheduled commercial
banks (including foreign banks) as on 31 March 2004. Of the scheduled
commercial banks, 223 are in public sector of which 196 are regional rural
banks (RRBs) and these account for about 77.5 per cent of the deposits of



JlI sch{duled commercial banks. The regional rural banks were specially sd

up to increase the flow of credit to small borrowers in the rural an'as. The
remaining 27 banks in the public sector (i.e., nationalised banks and SBI
Croup) arc commercial banks and transact all types of commercial banking
busincss. Some important indicators in regard to progress of commercial
banking in India since 1997 are giwn in Table 13.4.
Amongst the public sector banks, as on March 2004, the nationalised
hanh group is the biggest unit with 33,090 offices, deposits aggregating
R~ 7,52,558 crore and advances of Rs 4,10,376 crore. The Statc Bank of India
gTOlIp (5BI and its S{'vcn Asso(iatcs) with 13,593 offices, deposits aggregating
R~ ~,67,057 crore and advances of Rs 2,12,420 crore is the second largest unit.
Tlw nationalised banks group accounts for around 65.9 per cent of aggregdtl'
banking business (aggregate of deposits and ildvances) ('onduct{'d by thp
public sector banks (excluding RRlb) and 46 per cent of the aggregatl' business
of all sclwduled commercial banks. The SRI and its Associates as a group
accounts for around 34."1 per l'ent of aggregatl' banking business conducted
by the public st'ctor banks (excluding RRBs) and around 2:1.1-\ per n'nt of the
clggregate business of all scheduled commercial banks.

Thl're has been a substantial increase in till' deposits of schedult'd commen.ial

banks in the post-nationalisation pl'riod. At the end of June 1969, deposits
of these banks aggregatt>d to only Rs 4,646 crore. In March 2004, this amount
hilS increascd 10 Rs 15,17,378 cron'. Dt'posil amount with public sectbr banks
was Rs 3,871 crore in June 1969. At the t'nd of March 2004, this amount stood
at i{s 11,75,439 CTore. Deposits mobilis('d by the banks are utilised for: (i) loans
'lTld advances; (ii) investments in government and other approved securities
in fulfillment of the liquidity stipulations; and (iii) investment in commercial
paper, shares, debentures, etc., up to a stipulated ceiling.
There has been a sib'11ificant increase in the investments of banks in
government and other approved securities from Rs 1, 361 crore in June 1969
to Rs 6,72,317 crore (provisional) as at the end of March 2004 (source:
Reserve Bank of India Bulletin - Weekly Statistical Supplement: Vol. 19,
No. 15). The Bank Credit of scheduled commercial banks have grown from
Rs 3,599 crore in June 1969 10 Rs 8,56,685 crore (provisional) at the end of
March 2004.
TABLE 13.4














Number of Commercial Banks








(a) Scheduled C.ommercial Banks








of which : Regional Rural Banks 196










India 2005

(b) NonScht'duled Commercial


Number of Bank Offil'es in India 63,550

Population per office



















(in thousands)

4 lJt>posill> of Schl.'duled
Commercial Banks in India








Per Capita Deposits of

Scheduled Commemal
Banks (R~)








i. Per Capita Credit of

Scheduled Commercial
Banks (R~)
















Credit of Scheduled
Commercial Banks in India

6,09,053 7,4M32

(Rs cnlrt')


[)(>posits of Scheduled
Commercial Banks as
percentagt' of National
Inrome (at current prices)

Induding Resurgent India Bonds (RIB) (Rs 17,945 crore)

Includes Resurgent India Bonds (RIB) (Rs 17,945 crOTe) and also India Millennium Deposits
(IMD) (Rs 2.5,662 crore)

Sourel' : Basic Statistical Returns of Scheduil'd Comml.'rcial Banks in India, Voluml.'-32 (March


Extension of credit to small borrowers in the hithertorteglected sectors of the
economy has been one of the key tasks assigned to the public sector banks
in the post-nationalisation period, To achieve this objective, banks have drawn
up schemes to extend credit to small borrowers in sectors such as agriculture,
small scale industry, road and water transport, retail trade and small business
which traditionally had very little share in the credit extended by banks.
Taking into account the need to provide financial resources through bank
credit to weaker sections for specific needs, consumption credit (with certain
limits) has been included in priority sector, Similarly, hOUSing loans up to
Rs 10 lakh per unit in rural/semi-urban areas/urban/metropolitan areas are
also classified as priority sector advances. Amount outstanding under priority
sector lending by public sector banks during the period June 1%9 to
September 2003 increased from Rs 441 crore to Rs 2,13,597 crore and
accounted for 44.54 per cent of their net bank credit as on the last reporting
Friday of September 2003.
With a view to augmenting credit flow to small and poor borrowers,
commercial banks were advised by the Reserve Bank of India to provide at



least 10 per cent of their net bank credit or 25 per cent of their priority sector
advances to weaker sections comprising small and marginal farmers, landless
laborers, tenant farmers and share croppers, artisans, village and cottage
industries where individual credit limits do not exceed Rs 50,000, beneficiaries
of Government sponsored schemes such as the Swarnajayanti Gram Swarojgar
Yojana (SGSY) for rural poverty, Swarna Jayanti Shahari Rozgar Yojana
(S}SRY) and the Scheme of Liberation and Rehabilitation of Scavengers (SLRS)
ilnd beneficiaries of the Differential Rate of Interest (DR!) scheme and
scheduled castes and scheduled tribes. As on the last reporting Friday of
March 2003, the amount of outstanding advances extended by public sector
banks to the weaker sections under the priority sector amounted to Rs 34,398
crore and accounted for 7.17 per cent of their net bank credit.
Banks were initially given a target of extending 15 per cent of the total
advances as direct finance to the agriculture sector to be achieved by March
llJ85. This target was subsequently raised to 18 per cent to be achieved by
March 1990. In terms of the guidelines issued by Reserve Bank of India in
October 1993, both direct and indirect advances for agriculture are taken
together for assessing the target of 18 per cent, with the condition that for
tht' purpose of computing their performance in lending to agriculture,
lendings for indirect agriculture should not exceed one fourth of the total
agriculture lending target of 18 per cent of net bank credit so as to ensure
that the focus of banks on direct lending to agriculture is not diluted. As at
the end of September 2003, public sector banks had extended Rs 76,700 crore,
constituting 15.85 per cent of the net bank credit, to the agriculture sector.
Private sector banks extended Rs 11,873 crore to agriculture at the end of
March 2003 constituting 10.8 per cent of net bank credit.
People belonging to the scheduled castes and scheduled tribes have been
recognised as the most vulnerable sectarians. Banks have been asked to make
special efforts to assist them with adequate credit to enable them to undertake
self-employment ventures to acquire income generating capital assets so as
to improve their standard of living. At the end of September 2003, the total
outstanding loan extended to scheduled castes/scheduled tribes by public
secto'r banks under priority sector lending was Rs 14,166 crore in 67.10 lakh
borrowal accounts.


Under the Differential Rate of Interest (DRI) Scheme, introduced in 1972,
public sector banks are required to fulfil the target of lending of at least one
per cent of the total advances as at the end of the preceding year to the
weakest of the weak sections of the society at an interest rate of four per cent
per annum. The scheme covers poor borrowers having an annual family
income of not more than Rs 6,400 in rural areas and Rs 7,200 in other areas


India 2005

and not having more than 2.5 acres of unirrigated of one acre of irrigated
land. They are given credit support of Rs 6,500 as tl'rm loan and working
capital loan for productive venturl's. The public sector banks had an
outstanding of DR! credit amounting to Rs 302.25 crore as at the l'nd of
September 2003.
The Union Ministry of Rural Development launched a restructured poverty
alleviation programme, Swamajayanti Gram Swarozgar Yojana (SGSY) with
effect from 1 April 1999, which has replaced IRDP and its allied schemes viz.,
Training of Rural Youth for Self Employment (TRYSEM), Development of
Women and Children in Rural Areas (DWCRA), Supply of Improved Toolkits
to Rural Artisans (STTRA), Canga Kalyan Yojana (GKY) and Million Wells
Scheme (MWS).
The scheme aims at establishing a large number of micro t'nterprises in
the rural areas of the country. The objective of the Scheme is to bring every
assisted family above thl' poverty line in three years by providing them
income generating assets through il mix of bank credit and government
subsidy. Tht' monthly income from the activity to be undertaken should not
be less than Rs 2,000, net of repayment to the bank, at least in the third ~ear:
SGSY is a holistic programme covering all tht, aspects of self emplo~ent
such as organisation of poor into Sdf Help Groups, training, credit, technology,
infrastructure and marketing. Thl' scheme is funded on 75 : 25 basis by centre
and states and is implementt'd by ORDAs through Panchayat Samitis. Major
shaft' of assistance is for 4-5 key activities identified at the block level.
The year 2003-04 was the fifth year of implementation of the schemt'
and during thl' Yl'ar (up to December 2003), tht, total number of Swarozgaris
assisted was 5,72,729. Bank credit to the tune of R" 533.19 crore and
Government subsidy amounting to Rs 199.15 crore were disbursed under the
scheme. Out of total swarozgaris assisted, 1,68,589 (29.43'Yo) were SC and ST,
1, 90,580 (33.27%) were women and 5,793 (1.01'1.,) were physically handicapped.
The Swarm Jayanti Shahari Rozgar Yojana (SJSRY) is in operation from 1
December ] 997 in all urban and semi-urban towns of India. Among other
com ponl'nts, the scheme has two sub-schemes where bank credits involved,
namely, Urban Self Employment Programme (USEP) and Development of
Women and Children in Urban Areas (DWCUA). The beneficiaries under the
scheme are identified by the urban local bodies on the basis of house to house
survey. Under the scheme, women are to be assisted to the extent of not less
than 30 per cent, disabled at three per cent and SC/STs at least to the extent
of the proportion of their strength in the local population. The scheme is
funded on a 75 : 25 basis between the Central and the State Governments.
Ouring the year 2003-04 (up to December 2(03), of the total 42,734



applications sanctioned under the scheme, 33,162 cases were disbursed

amounting to Rs 106.39 crore by the scheduled commercial banks.


The Prime Minister's Rojgar Yojana (PMRY) for educated unemployed youth
was launched on 2 October 1993. The objective of the scheme was to provide
sustained employment to about 10 lakh educated unemployed urban youth
in micro-enterprises during the Eighth Five-Year Plan. These enterprises cover
manufacturing, service and business ventures. The scheme was implemented
in urban areas during 1993-94 and from] April 1994, throughout the country.
During 2003-04, banks sanctioned loans amounting to Rs 904.07 crore in 1.44
lakh accounts, while disbursements amounted to Rs 531.83 crore in 0.87 lakh
accounts (data provisional).

During last two years, the housing sector has emerged as one of the sectors
attracting a large quantum of bank finance. Up to 2002-03, as per instructions
issued by RBI, banks were required to allocate a minimum of three per cent
of incremental deposits of the previous year towards housing finance.
However, banks have consistently exceeded the target during last few years.
Therefore, no specific allocation was made for 2003-04. The current focus of
RBI's regulation in the area is to ensure orderly growth of housing loan
portfolio of banks.


The Regional Rural Banks were set up to take the banking services to the
doorsteps of rural masses especially in remote rural areas with no access to
banking services. These banks were originally intended to provide institutional
credit to the weaker sections of the society called 'target groups'. The banks
were also intended to mobilise and channelise rural savings for supporting
productive activities in the rural areas. However, with effect from April 1997,
th(, concept of priority sector lending was made applicable to RRBs. The
interest rates on term deposits offered and interest rates on loans charged by
RRBs have also been freed. The credit outstanding of RRBs stood at Rs 22,158
crore as at the end of March 2003 and Rs SQ,OJ8 crore was mobilised as
deposits by RRB's till that date. RRBs which comply with certain prescribed
conditions are also permitted to open and maintain non-resident accounts in


The Industrial Development Bank of India (IDBI) is the principal financial
institution for providing credit and other facilities for development of
industry, co-ordinating working of institutions engaged in financing, promoting
or development industries and assisting the development of such institutions.
The IDBI has been providing direct financial assistance to large industrial
concerns. Aggregate assistance (provisional) sanctioned during 2003-04
amounted to Rs 5,631 crore registering a sharp decline of 4.5 per cent over

India 2005


the preceding year. Disbursements amounted to Rs 4,409


in 2003-04.


The Small Industries Development Bank of India (SIDBI) was established a~
a wholly-owned subsidiary of the Industrial Development Bank of India
(IDBI) as the principal financial institution for promotion, financing and
development of industries in the small scale sector. SIDBI started its operatiom
from 2 April 1990 and is engaged in providing assistance to the smal1-scalt
industrial sector in the country through other institutions like State Financial
Corporations, Commercial Banks and State Industrial Development Corporation.
The Financial assistance sanctioned and disbursed aggregated to Rs 8,224 crOft'
and Rs 4,413 crore, respectively, during 2003-04.
The Export-Import Bank of India (EXIM Bank) was established for financing,
facilitating and promoting foreign trade in India. During the year ended
31 March 2004, EXIM Bank sanctioned loans of Rs 9,266 crore while
disbursements amounted to Rs 6,957 crore. Net profit (before tax) of the Bank
for the period 2003-04 amounted to Rs 229.2 crore.
The National Housing Bank (NHB), the apex institution of housing finance
in India, was set up as wholly-owned subSidiary of the Reserve Bank of India
(RBI) which started its operations from July 1988. The authorised paid-up
capital of NHB stood at Rs 450 crore and the reserves and surplus were
Rs 1,087.9 crore as on 30 June 2003 (revised). NHB also mobilised Tier II capital
to the extent of R<; 400 crore during 2002-03.
The NHB is the regulator and supervisor of Housing Finance Companies
(HFCs) in the country. Total refinance extended by NHB to aI1 hOUSing finance
institutions including commercial banks and HFCs stood at Rs 6,610.93 croff.'
as on 30 June 2003. The bank monitors the performance of the Golden Jubilee
Rural Housing Finance Scheme being implemented through Scheduled Banks,
HFCs and Co-operative Sector Institutions. Against a target of 2.69 lakh
dwelling units for the year 2003-04, 1.53 lakh units had been financed up to
December 2003.
The National Bank for Agriculture and Rural Development (NABARD) came
into existence on 12 July 1982. It was established fO!'PIQ...\j~g_credit.for
promotion of agnciilture, small-scale industries, cottage Cl!lg_village indu_stries,
handicrafts and other allied economic activities in rural areas with a view
to promoting integrated rural development and secwmg prosperity of rural


As on 30 June 2004 ten Indian banks--eight from the public sector and two



from the private sector-had operations overseas, which had their presence
in 42 countries with a network of 93 branches (including six offshore units),
five joint ventures, 16 subsidiaries and 18 representative offices. Besides,
another three private sector banks had four representative offices abroad.
Bank of Baroda had highest concentration, with 38 branches, six subsidiaries
and one joint venture in 17 countries, followed by State Bank of India with
21 branches, five subsidiaries, two joint ventures and eight representative
offices in 28 countries and Bank of India with 18 branches, two subsidiaries,
two joint ventures and three representative offices in 16 countries.


The International Monetary Fund (IMF) was established along with the
lntefTli!tiol}'iI_B~~k for Reconstructi.Q_l}_~!1dDevelopment (also known as World
Bank) at the Conference of 4fnations held at Bretton Woods, New Ham~h.ire,
USA in July 1944. It was created to promote internationai ~onetaryCooPeration;
to faCilitate the expansion and balanced growth of international trade; to
promote exchange stability; to assist in the establishment of a multilateral
system of payments; to make its general resources temporarily available to
its members experiencing balance of payments difficulties under adequate
safeguards; and to shorten the duration and lessen the degree of disequilibria
in the international balances of payments of members. The Articles of
Agreement of IMF came into force on 27 December 1945. IMf is the Principal
International Monetary Institulionestablisfiedtopro~~te a cooperative and
stable global monetary framework. At present, 184 nations are members of
the IMF. East Timor became the newest member in JulY 2002.
Operations- Lending IPortfolio: The IMF's financial year is from 1 May
to 30 April. IMF lends to various member countries in the fonn of various
facilities (Extended Fund Facility, Standby Facility, Contingent Credit Lines,
Compensatory Facility, etc.) designed to serve specific purpose, but essentially
aimed at balance of payments stabilisation or meeting the emergent foreign
exchange needs. The poor countries are also helped by funding from Poverty
Reduction and Growth Facility. As on June 2004, the IMF was lending to 13
members in the fonn of Standby Facility, to 2 members under Extended
Arrangements and to 38 poor countries under Poverty Reduction and Growth
Facility. The total credit outstanding was 45.686 billion, 0.877 billion and 5.515
billion SDRs respectively.
Board of Governors arul Executive Board: The Board of Governors of the
IMF, consisting of one Governor and one Alternate Governor from each
member country, usually meets once a year - at the time of Annual Meetings
(generally held in September/October). The day-to-day management of the
IMP is carried out by the Managing Director. The Board of Executive
Directors, consisting of 24 Directors appointed/elected by member countries/
group of countries, is the executive body of the lMF, of which the Managing
Director is the Chairman. On 4 May ~ Rodrigo Rato, of Spain has been
elected as Managing Director andOlairman of the EXecutive Board for a five-


India 200S

year term. He succeeds Horst Kohler who resigned during March 2004. There
are thn_-'t:' Deputy Managing Directors, in place.
I.M.f.C. . The International Monetary and Financial Committee (IMFC) of the
Board of GOVl'rnors (formPTly called Interim Committee of the International
Monetary System) is an advisory body made up of 24 IMF Governors,
Ministers, or other officials of comparabk rank, reprl'senting thl' same
constituencies as in the IMP's Executive Board. The last meeting of till'
International Monetary and Financial Committee (IMFC) of the Board of
Governors of the IMF was Iwld on 24 April 2004 at Washington D.C.
India is a founder m('mber of till' IMF. Financ!:' Minister is tht' ex-officio
Governor on the Board of Governors of tht' IMF. The Governor, RBI is India'~
Alternate Governor. India is represented in the IMF by an Executive Director
(currently B.P. Misra) who also represents three other countries, viz.,
Bangladesh, Sri Lanka and Bhutan.

I1ldia's Quota and ranking: India's curH'nt quota in tht' IMF is SDR (Special
Drawing Rights) 4,158.2 million in the total quota of SDR 212 billion, giving
it a shan> holding of 1.961 per cent. India's relative position based on quota
is 13. However, based on voting share, India (together with its constituency
countries, viz., Bangladesh, Bhutan and Sri Lanka ) is ranked 21.
TIlt' SDR 4,158.2 million quota of India in IMF comprises of Fund's
holdings of currency of 3,271.14 million and Reserve Position of 887.09 million
SDRs allotment and holding by India: India has been allocated 681.170
million SDRs from the SDRs created by IMF. The IMF members can either
retain SDRs, use them in payments, etc., or sell them to other member
countries. Tht IMF remunerates the members holding SORs by charging all
tht' members for SDRs allocated to them.

Article IV consultations: As part of its mandate for international surveillance,

the IMF conducts Article IV consultations, with every member country to
review the economic situation and policy developments of the member
countries, normally, once a year. The last Article IV Consultations for India
were held in November 2003.
Article VIII, Section 5 : Recently the Board, added an Annexe to this Article
which required members to furnish data on additional variable including
reserve, or base money, broad money, balance sheet of the central bank,
external current account balance, export and import of goods and services,
etc. The deadline for submission of additional information is end of 2004.

Borrowings by India: India borrowed SDR 3.9 billion during the period 198184. Again during 1991 to 1993, India borrowed an amount of SOR 3.56 billion
(SDR 1,351.98 million under the Compensatory and Contingency Financing



FdciJity and SDR 2,207.925 million under Standby Arrangement). Repayment

of all the loans taken from International Monetary Fund has been completed.
Participation by India ill Financial Transactions Plan : India agreed to
participate in the Financial Transaction Plan (FTP) of tht IMF in late 2002.
This participation provides India the status of a creditor to the IMF. 43
LOuntries, including India, now are creditors to the IMF. By participation in
rT1', India is allowing IMF to encash its' rupee denominatl'd securities as part
ot uur quota contribution, for hard currency which is then lent to other
member countries who are debtors to the IMF. From May 2003 to December
2003, India transferrt:'d SDRs 5 million to Burundi, and first instaIml'nt of 200
million and st:'cond instalment of ] 50 million to Brazil and 43 million to
Indonesia. While tht:' participation in FT1' allows India to earn interest on its'
enhanced credit trancht:' position with IMF, the encashment of interest-free
rupee securities lead to enhancement of rupee borrowing for the Government
of India necessitating higher inten'st payments on rupee borrowing. To
,,,jdress this problem, it has bcen decided to replace special securities to the
IMF by non-interest bearing non-marketable securities to be issued to the RBI.
India's contribution to Iraq: FM approved India's contribution of US $ 0.35
million for the Multidonor Technical Sub-Account for Iraq and India has
contributed US $ 0.10 as "rst instalment.


The Asian Development Bank, an international partnership of 63 member
countries was established in December 1966 with its hl'adq~arte;:S in Manila;
Philippines to accere;~te economic and social development in the Asia and
I'alific region.
India started borrowing from ADB (Ordinary Capital Resources only)
in 1986. Since then the borrowings from ADB Public Sector Window have
increased from US $ 250 million in 1986 to US $ 1,430 in 2003. Taking into
account the projects approved by the ADB up to 31 December 2003, the total
borroWing by India amounts to US $ 12.911 billion for public sector (excluding
terminated loans). The cumulative disbursement under ADB public sector
projects till 31 December 2003 stood at US $ 6.923 billion. The total loan
assistance for private sector operations provided to India through ADB up
to 31 December 2003 stood at US $ 257.70 million.
The Bank's Technical Assistance (TA) support to India increased from
$ 0.6 million in 1988 to a cumulative amount of about $ 102 million for 192
TAs as on 31 December 2003. In Calendar year 2003, ADB has approved 22
TAs for an amount of US $ 14.67 million. The technical assistance provided
Was for increased support in Institutional Strengthening, effective project
implementation and also for policy reforms. There are now 27 ADB assisted
ongoing projects and 49 ongoing TAs in India.

India 2005


The LIe with its central office in Mumbai and seven zonal offices at Mumbai,
Kolkata, Delhi, Chennai, Hyderabad, Kanpur and Bhopal operates through
101 divisional offices including one salary savings scheme division at Mumbai
and 2048 Branch Offices. As on 31 March 2004, LIC has 10,98,910 lakh agents
spread all over the country. The Corporation also transacts business abroad
and has offices in Fiji, Mauritius and United Kingdom. An overseas subsidiary
of the Corporation namely, LIC (International) E.C. Bahrain was established
in 1989. LIC is also associated with joint ventures abroad in the field of
insurance namely, Ken-India Assurance Company Limited, Nairobi, a registered
joint venture company in Kathmandu, Nepal by the name of Life Insurance
Corporation (Nepal) Limited in Collaboration with Vishal Group Limited, a
local industrial group. LIC (Lanka) Limited, the latest joint venture subsidiary
of the Corporation was established in Sri Lanka on 1 March 2003 in
partnership with local company Mis Bartleet & Company Limited. An offshore company LIC (Mauritius) off-shore limited was registered to tap the
African Insurance market.
Ouring 2003-04, the total new business under Individual Assurances was
Rs 1,98,274 crore under 263.96 lakh policies. The Group Insurance business
during the year 2003-04 brought new business premium of Rs 3,612.29 crore

under 11,044 schemes covering 27.71 lakh people. The sum assured in respect
of conventional Group Insurance business is 12,543.71 crore. In addition. LIC
sold 3,25,538 new Individual Pension Policies.
The Life Fund of LIC as at 31 March 2004 as per the provisional results
amounts to Rs 3,32,712.48 crore. During 2003-04 the corporation made
payments of Rs 2,941.21 crore under death claim cases, Rs 16,658.53 crore
under Maturity Claims and Rs 1,103.05 crore under annuities.
Under Varishtha Pension Bima Yojana the corporation made payments
of Rs 8.33 crore under Death Claim cases and Rs 127.54 crare under annuities.
(Tlrese figures are provisional and unaudited).
A Social Security Fund (SSF) was set up in 1988-89 for providing social
security through group insurance scheme to the weaker and vulnerable
sections of the society. SSF is administered by LIC for meeting insurance
requirements of the poorer sections of the society.
As on 31 March 2004, about 43lakh people belonging to 24 occupational
groups I areas have been covered under various social security group schemes
financed from the SSF. Under these schemes, people in the age group of 1860 years are covered for a sum of Rs 5,000 on death due to natural causes
and Rs 25,000 on death I total permanent disability due to accident. The
amount payable is Rs 12,500 on partial permanent disability due to accident.



While the SSF subsidies 50 per cent of the premium, the beneficiary has to
pay the remaining 50 per cent.
All over the country, the Integrated Rural Development Programme
(IRDP), beneficiaries between the age g