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This is a big reduction. The data is from http://planningcommission.nic.in/news/press_pov1903.pdf. (Thanks to Umashankar Das for the pointer.)

Some of the interesting aspects of the above data are as follows:

• In 2009-10 the total number of persons below poverty line in Odisha is 153.2 lakhs. The number for Andhra Pradesh is 176.6 lakhs, Bihar is 543.5 lakhs, Chhatisgarh is 121.9 lakhs, Gujarat is 136.2 lakhs, Jharkhand is 126.2 lakhs, Karnataka is 142.3 lakhs, MP is 261.8 lakhs, Maharashtra is 270.8 lakhs, Rajasthan is 167 lakhs, Tamil Nadu is 121.8 lakhs, UP is 737.9 lakhs and West Bengal is 240.3 lakhs. So the number of persons below poverty limit in Odisha is close to that of Gujarat, Karnataka and Tamil Nadu, states considered to be more industrialized and richer.
• In 2009-10 the number of persons below poverty line in the urban areas are: 17.7 lakhs in Odisha, 11.2 lakhs in Assam, 48.7 lakhs in Andhra Pradesh, 44.8 lakhs in Bihar, 13.6 lakhs in Chhatisgarh, 22.9 lakhs in Delhi, 44.6 lakhs in Gujarat, 19.6 lakhs in Haryana, 24 lakhs in Jharkhand, 44.9 lakhs in Karnataka, 18 lakhs in Kerala, 44.9 lakhs in MP, 90.9 lakhs in Maharashtra, 18.4 lakhs in Punjab, 33.2 lakhs in Rajasthan, 43.5 lakhs in Tamil Nadu, 137.3 lakhs in UP, 7.5 lakhs in Uttarakhand and 62.5 lakhs in West Bengal. So the urban poverty numbers in Odisha is less than that of Haryana, Punjab and Delhi and much less than the most of the other states mentioned above. But this is partly because Odisha has a much smaller overall urban population
• The above numbers are based on cut-offs calculated by the "Tendulkar Methodology" and these cut-offs vary from state to state and are different for rural and urban areas. As shown in the first table, Odisha has the lowest cut-off numbers for both rural and urban areas. For rural areas of Odiha the cutoff is Rs 567.1 per month and for urban areas it is Rs 736. (See the recent Hindu and Business Standard articles for criticisms about the methodology that has been used above.)

The following is obtained from the planning commission’s web page on approved plan outlays.

In terms of total plan allocation Odisha’ position has inched from being the 17th state to being the 14th state. In the process it has overtaken Delhi, Punjab and Kerala.

In terms of per capita plan allocation (using the 2001 population numbers) Odisha has inched from 28th to 23rd. But in the process it has overtaken UP, Assam, Kerala, Tamil Nadu and MP. It was ahead of Bihar and West Bengal and continues to be ahead of them.

Odisha has a good chance of overtaking Maharashtra, Punjab and Rajasthan in the next 1-2 years. Note that based on the 2011 census it is already closer to them.

(Thanks to http://orissadiary.com/CurrentNews.asp?id=26974.)

Hon’ble Deputy Chairman, esteemed Members of the Planning Commission, Hon’ble Chief Ministers of the eastern region, senior officers of the Planning Commission and State Governments. 

2. Let me convey my appreciation to the Planning Commission for initiating the regional consultation process with State Governments and other stakeholders for finalizing the Approach to the 12th Five Year Plan.  The Planning Commission has identified twelve strategy challenges for the Twelfth Plan.  These strategy challenges need to be carefully analyzed at the State level.   While it may not be possible to discuss in detail all strategic issues, I would like to highlight a few major aspects concerning the development needs of States like Odisha. 

3. The first challenge of the 12th Plan is to enhance the economy’s capacity for growth and to mobilize adequate resources from various sources.  It may be worth mentioning that the economy of Odisha has historically grown and diversified at a very slow pace except in the last decade when it has achieved a real average growth rate of more than 9 percent per annum at 1999-2000 prices.  The per capita income of Odisha is much lower than the national average and the poverty and other human development indicators for the State are very adverse.  The State has a limited capacity to raise its own resources.  Though the State has been making all possible efforts to raise resources needed for public investment to maintain the growth momentum, there would still be a substantial gap between investible funds that can be mobilized by the State and the level of investment required.  To meet this gap, there has to be a national framework by which larger resources can flow to Odisha and similarly placed states.  Any national growth strategy has to give special attention to states having special development needs.  Odisha, with about 40 percent population of Scheduled Tribes and Scheduled Castes, has a special need to accelerate their development and improve their human development indicators.     

4. Odisha favours a development approach that encourages less developed states to grow faster than the national average over a long period of time in order to bridge the widening income gap between poor and rich states and to reduce poverty at a faster pace.   The development approach should also focus on: (a) scaling up investments in agriculture and allied sectors that need to perform above the national average over a long period of time, (b) mitigating adverse impacts of natural calamities and other shocks including climate change, (c) accelerating the development of depressed regions and marginalized classes including Scheduled Tribes, Scheduled Castes and women to substantially reduce regional, social and gender disparities and ensuring inclusive growth, (d) building and substantially improving rural and urban productive infrastructure such as roads, bridges, irrigation projects and ports, (e) strengthening social security system by way of allocating higher resources to primary education, health services and nutrition programmes, (f) addressing the problem of unemployment and under-employment, particularly among young persons and improving their employable skills, education and soft skills to harness opportunities that the growing economy may create, (g) improving the delivery of public services for the poor, (h) increasing convergence of resources from various sources and development programmes for faster poverty reduction and (i) continuing vigorously Public Sector Reforms Programmes, enabling policy framework and improving investment climate.      

5. In Odisha and other eastern states, large populations still live in villages and majority of them subsist on agriculture and allied sectors.   We, therefore, endorse the view of the Planning Commission that transforming rural areas and achieving high sustainable growth in agriculture and allied sectors is a crucial challenge for the 12th Plan.  There is an urgent need to take appropriate measures to raise productivity of the agriculture and allied sectors so that the income and employment opportunities in these sectors are enhanced in a sustained manner.  A vibrant rural economy is needed to ensure increased rural incomes and employment which would be a strong contributor for poverty reduction.  The strategy paper should focus on expansion of irrigation, watershed development and saturation of watersheds, diversification of crops, rural marketing, strengthening of agricultural extension and technology transfer, crop insurance and rural infrastructure.  The plan strategy should also look at ways in which farmers can get remunerative prices for their produce and ensure that the terms of trade do not move adversely against the farm sector.  Availability of credit is also critical for increasing farm output.  We, therefore, urge Government of India to put in place an appropriate macro policy framework to make the farm sector productive and profitable and to liberally fund development activities of agriculture and allied sectors, particularly in less developed states.  

6. Increasing irrigation potential and drought proofing are critical pre-requisites to enhance agricultural productivity.  In Odisha, substantial areas need to be brought under assured irrigation.  Out of about 59 lakh hectare irrigable area, we have been able to tap the potential only of about 30 lakh hectare by now.  We, therefore, urge that the funding under AIBP be stepped up adequately.  I would like to add that there is a need to extend AIBP funding to lift irrigation projects and innovative community based irrigation programmes such as our Biju Krushak Vikas Yojana (BKVY).  It is worth mentioning that the BKVY has been lauded and promoted by NABARD.

7. A major concern, however, is that though the share of agriculture and allied sectors has been declining in Gross State Domestic Product, the proportion of people dependent on agriculture and allied sectors has not been declining in the same proportion.  Major benefits of the economic growth, which has occurred mainly in the service and industrial sectors, flow largely to educated and skilled manpower.  There is, therefore, an urgent need to raise the skill levels of large sections of the population, particularly youth, so that they may find remunerative employment and livelihood opportunities.  A growth strategy that promotes desired skills and skill-based employment opportunities to youth and others has to be given prominence in the approach paper for the 12th Plan. 

8. Development of small scale industries in clusters, ancillarisation, linking industries to supply chains would have to be accorded due attention in the 12th plan strategy.  Employment potential, income generation and export potential of micro enterprises, handicrafts, handlooms and other traditional sectors have not been tapped fully.  Promotion of tourism and other service sector activities are to be given greater importance in the plan strategy.  The efforts of the States in these areas will have to be strengthened by appropriate resource flow and policy inputs by Government of India and this has to be emphasized.  

9. For Odisha and other mineral bearing states, mining and related industrial activities are very important.  Achieving strong growth in these sectors is critical in increasing incomes and poverty reduction.  However, these activities impose significant economic, environmental and social costs in terms of displacement of people on account of land acquisition, loss of their livelihoods and mounting pollution problems.  There is a need for a national policy framework to address these problems in an efficient, equitable and sustainable manner.

10. We have taken several initiatives including the single window clearance mechanism, transparent procedures and well thought out R&R policy, which have been put in place for facilitating setting up of industries.  As a result, there has been a surge in the private sector investments in mining and related industries. We would like to consolidate and strengthen this with due regard to sustainable development and environmental protection as a part of the growth strategy for next plan.  However, in order to attract private sector investment, there is immediate need for high levels of investment in infrastructure like roads, ports, railways, power generation and power transmission and distribution.  My state has already initiated PPP mechanism for infrastructure development in the field of port and road development.  But PPP alone cannot be the answer to infrastructure development in most eastern states including Odisha.  In fact, poor states like Odisha need greater investments in the non-PPP mode than more advanced states where returns on investment in infrastructure will be much higher.  Mobilizing adequate resources for high quality infrastructure in poor states is a greater challenge and the 12th Plan should have appropriate central schemes for liberal funding of infrastructure projects in poor states.

11. Macro policy distortions are proving to be a hindrance to Odisha and possibly other States, which are rich in minerals, in proper husbanding of those resources.  Royalty structures are such that the States are losing out substantially in resource generation potential due to very low royalty rates and delayed revisions of royalties on coal, iron and other minerals.  We urge the Government of India to revise the rates of royalty on coal and other minerals in a timely manner and to compensate the mineral bearing states for revenue losses sustained by them due to late revision of mineral royalties and other causes, as recommended by the 13th Finance Commission.  We reiterate our earlier demand for increasing mineral royalties on ad valorem basis from 10 percent to 20 percent of market prices of coal and other minerals.

12. With a view to contributing to the national efforts for augmenting power production, the State has planned production of 50,000 MW of power.  The establishment of new power plants, however, imposes significant economic, environmental and social costs on Odisha and other mineral bearing states in terms of displacement of people on account of land acquisition and loss of their livelihoods and mounting pollution problems.  Whereas power and coal consuming states benefit because of low costs of coal and power, revenues from electricity duty on consumption and revenue from sales of surplus power, the host states like Odisha bear most of economic, environmental and social costs.  This scenario leads to an inequitable sharing of costs and benefits from the coal mining and thermal power generation.  We have been repeatedly requesting the Government of India to put in place, by way of suitable amendments to the Electricity Act 2003 and the National Thermal Power Policy, appropriate institutional arrangements which would result in fair sharing of costs and benefits of coal mining and thermal power generation.  It is our long standing demand that the host states should get 25% free power from Independent Power Producers and 33% free power from coal reject based power plants on the lines of the National Hydro Power Policy.  We also urge  Government of India that the funds collected under the National Clean Energy Fund should be given back to the States from where coal has been mined to help them take up environment remediation measures.  

13. The 12th Plan should also focus on substantially improving human development indicators and stepping up investments in social sectors, particularly health, education, poverty eradication and other social safety nets.  There is also need to make adequate provisions for gender equality, child and women welfare and welfare of other disadvantaged sections.  Special efforts are needed to arrest fast declining sex ratio among children in 0-6 year age group and to improve the welfare of girl children. 

14. Correction of intra-state imbalances has been receiving special attention in the plan strategy of my State.  Heavy incidence and persistence of poverty in KBK region of the State has been a cause of concern for the State Government.  Though the region has improved through implementation of the Revised Long Term Action Plan, it still lags behind many other regions of the State.  In order to bring this region at par with other areas, the RLTAP has to be extended for at least ten years beyond the 11th Plan with increased funding.  We would also suggest that backward district initiative may be extended to more districts of my State which are equally backward.  

15. We have taken a number of steps to promote decentralized planning at district and sub-district level.  District Planning Committees have been constituted and are functional in all 30 districts in Odisha.  We have also constituted District Planning & Monitoring Units in all 30 districts to assist District Planning Committees for consolidating district plans and monitoring the implementation of various development programmes.  I may add that Odisha has been preparing annual district plans since 2008-09 in a consultative and participatory manner.  Summaries of district plans have been incorporated in the State Annual Plans since 2010-11.  Increasing efficiency and expenditure has been a thrust of our reform initiatives.  Outlays are being increasingly linked to outputs and outcomes both on Plan and Non-Plan side.

16. We support this consultative process for preparing the approach paper for the 12th Plan.  We may also like to add that a uniform policy and uniform programmes for the country as a whole have produced distorted growth, and created inequalities, within different parts of the country.  As a result, regional imbalances have cropped up.  The objective of the 12th Plan should be to correct these distortions by region-specific interventions.  I hope the regional consultations will prove the right beginning for such an approach for the 12th Plan.

17. Orissa should be declared a special category state.
  
Thanking you. 

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I think it is time the tone of Odisha’s request change.  We should not ask to be declared a special category state.

We should forcefully demand that Odisha gets properly compensated for its minerals; years of neglect on some of its infrastructure aspects (such as railways) be corrected; environmental impact due to mining (especially coal mining) and power production be suitably addressed; the tribal areas (of Odisha as well as other states) be declared as special regions and special funding (to the tune of J & K and North East) be allocated to address them; and various central ministries must be ordered to treat each state fairly instead of channelling bulk of their funds to the states from where the ministers come from.

Following is from a PIB report.

The size of the annual plan for 2011-12 for the State of Orissa was finalized here today at a meeting between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister, Shri Naveen Patnaik. The State will have a plan size of Rs.15200 crores.

Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia complimented the State Government for the progress achieved in many areas. He said Odisha was figuring amongst the State doing well in poverty eradication and human development. Satisfactory progress has been recorded in social sectors including education and health.

Planning Commission appreciated the State Government for achieving a real average growth rate of 9.57 per cent during the first three years of the eleventh Plan. He said in the agriculture and allied sector growth rate of 4.8 per cent has been achieved during the same period. The State Government was advised to focus on making progress more inclusive and on reducing regional disparities. The State Government was also advised to better utilize science and technology in addressing the development related problems of the State. Attention was drawn to the condition of tribal and women and children in the State. It was pointed out that the State has done a good work in reforms and port sector was doing exceptionally well.

The Planning Commission has offered expertise in handling the problems which the State was facing following reforms in the power distributing sector. A team from the Commission will be visiting State with a purpose to find solution.

Mr. Naveen Patnaik said that the State has been assiduously pursuing the development agenda to achieve a sustainable and inclusive higher economic growth, accelerated overall development and a faster rate of poverty reduction. The development strategies include: strengthening human development sectors such as education, health services, food and nutritional security; improving welfare of marginalized groups such as Scheduled Castes. Scheduled Tribes and women; reducing regional, social and gender disparities; and scaling up investment in agriculture, allied sectors and infrastructure sectors.

He said removal of disparities is one of the important development strategies adopted by the Government. Several Key initiatives have been taken to address severe problems of underdevelopment and regional disparities. To expedite development of KBK districts an Eight Year Perspective Plan for KBK districts from the year 2009-10 to 2016-17 for a projected outlay of Rs.4,550 crore has been developed.

To get a better idea on how Odisha is doing, I created the following spreadsheet for the various states of India. State by state data is available at http://planningcommission.nic.in/plans/stateplan/index.php?state=b_outbody.htm.

The spreadsheet shows how Odisha’s plan outlay has grown from 5100 crores for 2007-08 to 15200 crores for 2011-12. While we don’t yet have the plan outlays for all states for 2011-12, it is expected that the only state doing better than Odisha in terms of the growth in plan outlay is Haryana. Following are a few comparative observations from the spreadsheet.

• For 2007-08 Odisha’s plan outlay was 5105 crores and Kerala’s was 6950 crores. This translated to Rs 1352 per person for Odisha and Rs 2144 for Kerala. For 2011-12 Odisha’s plan outlay is 15200 crores and Kerala’s is 11030 crores which translates to Rs 4025 per person for Odisha and Rs 3402 per person for Kerala.
• For 2007-08 Punjab’s plan outlay was 5111 crores which translated to Rs 2032 per person. For 2011-12 Punjab’s plan outlay is 11520 crores which translates to Rs 4580 per person. Odisha seems to be fast catching up.
• The 2011-12 numbers for Maharashtra is not out yet, but based on the 2010-11 numbers, Odisha is fast catching up with Maharashtra in terms of per person outlay.
• The 2011-12 numbers for West Bengal is not out yet, but based on the 2010-11 numbers Odisha’s per person outlay may be close to twice the number for West Bengal.

The planning commission web site shows where the plan outlays are to be spent and most of the spending is more beneficial to the poor. This explains the popularity of the current BJD government among the people. But many do not see the forest for the tree and there are more brickbats than bouquets for the current Odisha governemnt  and bureaucrats.

Non-ideologues and open-minded people need to look at the above spreadsheet and make fair assessment of the government and need to stop following the communist leaders from Kerala and West Bengal who have demonstratably dragged down their state and their people. In that regard it is ridiculous that many leaders from Odisha invite communist leaders from these states to Odisha and give them a platform to talk about how Odisha should follow their negative path.

Update: The Odisha CM is making the case that five more districts be included in the list of naxal-hit districts that should be targeted for infrastructure development schemes. Those are: Koraput, Mayurbhanj, Sundergarh, Keonjhar and Kandhamal.

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Following is the content of an email that summarizes a point that I have tried to make over the last couple of years. It seems the planning commission has started thinking along the same lines.

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The nations attention at this time seems to be focused on the Maoist issue. While the law and order steps are probably necessary, this is a good time to recall the lessons that India learned (and that seems to have worked) in J& K and North East.

What is that lesson?

The lesson is regarding what worked in the North East and J & K is not just policing but the  investment of vast amount of funds towards development programs there.

A similar approach at the same level of funding needs to be taken for the areas that are affected by the Maoist problem.

What is the level of funding for North east and J & K?

Following is extracted from the attached document from the Ministry of Home GOI.
(I can not locate it in their web page now, but I have uploaded the copy I had downloaded from their site to the site http://www.orissalinks.com/bigfiles/internal%20security.pdf )

• PM’s reconstruction plan for J&K announced in Nov 2004  is for Rs. 24,000 crores.
• 1,83,018 crores is allocated for economic development in the North east.

In contrast,  for the Maoist affected areas  in the states of Andhra Pradesh, Bihar, Chhatisgarh, Jharkhand, Maharashtra, Orissa and West Bengal; only Rs. 3007.50 crores were spend via Backward Districts Initiative and Rs. 1930.52 crores via Backwards Region Grant Fund.

What is the impact?

J & K and North east vs Maoist affected areas in terms of violence:

• Militancy in J & K resulted in the killing of 1,883 civilians and 789 security forces personnel.
• The militancy-related fatalities in the north-east were 1,909 civilians and 361 security forces personnel."

In contrast 2,281 civilians and 821 security forces personnel were killed between 2004 and 2008 (up to August 31) due to Maoist activity.

Thus there were more civilians and security forces killed between 2004-2008 due to Maoist activity than each in J& K and North east.

I think India needs to pay as much attention (in terms of money and development programs) to the Maoist affected areas as it is paying to J&K and North East.

Moreover, the Maoist affected areas are much poorer, much less literate, and overall more backward in all parameters than J&K and the Northeast. While J&K and Northeast are in the physical frontier of India, the Maoist affected areas are the third frontier. One must note that many countries have had more lives lost in fighting or other uphevels in their interior than in fighting an extrenal enemy. Following are some examples:

In US, 625 thousand people died during the civil war which is more than the number that died in World war 1 and 2 put together. (see http://en.wikipedia.org/wiki/United_States_casualties_of_war )
In Russia/Soviet Union, the number of deaths estimated are as high as 20 million deaths during Stalin’s regime, 9 million during civil war 1917-1922, and 10 million during the second world war.    (See http://users.erols.com/mwhite28/warstat1.htm )
• In China, the number of deaths is estomated at 2.5 million during their civil war (1945-1949), 40 million during Mao’s regime, and 10.45 million in the Second world war. (See http://users.erols.com/mwhite28/warstat1.htm )

Thus, just because the Maoist affected areas are in the interior, they should not get less development related attention than J&K and Northeast. As the above numbers show, trouble in the interior can be actually worse than trouble in the physical frontier.

In other words, it would be prudent for GOI to take the Maoist affected areas of India as seriously as J&K and Northeast, and perhaps even more seriously, as they are more backward than J&K and Northeast and put as much or more development resources in those areas.

Currently train lines, roads, airports (in general connectivity) to J&K and Northeast are being fast-tracked and sometimes labeled as National projects. A similar approach to connectivity (rail, roads, etc.) and other development in the Maoist affected areas of India (that includes KBK, Kandhamala, Sudnergarh, Mayurbhanj etc. of Orissa) must be taken urgently. 

Dear Sirs: I would like you to use the above numbers, recall the lessons learned from J & K and North East and take a balanced approach to the maoist problem; Law and order aspects combined with development programs at the same scale as in J & K and Northeast.

 

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There is now an indication that the planning commission has started thinking along the same lines.Following is an excerpt from a report in Indian Express. 

The Plan panel would be ready with the final draft of the Integrated Action Plan (IAP) for development

of the 35 naxal-hit districts spread over nine states in a month’s time.

“The Commission should be ready with the final draft of IAP in a month as consultations with organisations like civil societies are still on,” Member Planning Commission Mihir Shah told reporters after a meeting on IAP with non-government organisation here.

… Shah said funding under the IAP would be done for three years. There are suggestions from civil societies that in the naxal hit districts, Panchayti Raj institutions like Gram Sabha and Panchayat should be used for inclusive development.

… Last week, Ahluwalia had indicated that the panel is working on Rs 13,742 crore financial package for these 35 districts.

He had also disclosed that the proposal came from the Cabinet Committee on Security and would be for a three-year period for infrastructure development.

… The commission is also looking at the possibility of implementing the PESA (Panchayats Extension to Schedule Areas) Act, 1996, to give tribals the right to use minor forest produce.

Parts of as many as nine states — Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, Uttar Pradesh and West Bengal

— are in the grip of Naxalism.

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Among these 35 districts five are in Odisha. They are: Malkangiri, Rayagada, Gajapati, Sambalpur and Deogarh. The Orissa government is pushing to include Koraput in that list.

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Although this is a good start, I think much more needs to be done and to the larger area that I refer to as the third frontier. Perhaps a larger plan can be made for the 12th plan starting 2012. The approach to the 12th five year plan could be a good starting point to submit our feedback. I think the package of Rs 13,742 crores for 35 districts is a good start but not enough. The amount has to be much higher and the number of districts need to be more. In Odisha (see forest map) Kandhamala (51.51% ST), Mayurbhanj (57.87 ST), and Nabarangpur (55.27% ST)  (Keonjhar and Sundergarh also have high ST percent, but they are being developed for other reasons anyway) need to be included and the infrastructure to be fast-tracked must also include Railway lines such as Khurda-Balangir line and the Chakulia-Buaramara line.

The current five year plan is from 2007-2012. The next five year plan (12th plan) will be from 2012-2017. From now until until 2013 various details of the 12th plan will be put in place. we need to watch out the discussions and news reports on this and make sure that Odisha gets its due share. Following are excerpts from an Hindu news report on an initial meeting about the 12th plan.

The Planning Commission, Deputy Chairman, Mr Montek Singh Ahluwalia, on Saturday held a meeting with experts from various fields on the approach for the 12th five year plan.

“The meeting was for consultation with experts for the ‘Approach’ for the 12th Plan. We discussed broad issues today.

… On the issue of growth, the Deputy Chairman said, “The Prime Minister has asked us that we should aim for 10 per cent growth in the next Plan.

“Everybody feels and we also think that growth should be inclusive and sustainable. That means without environmental damage.”

The meeting was attended by the Chairman of the Unique Identification Authority of India (UIDAI), Mr Nandan Nilekani, the former Nasscom President, Mr Kiran Karnik, and the former Thermax Chairperson, Ms Anu Aga, among others, apart from officials of the Planning Commission.

We should not be only reactive, rather we should be proactive in pushing issues that will help Odisha. Following are some initial thoughts.

• Odisha should push that India’s Maoist/Tribal/forested belt that includes a large part of Odisha and adjoining states of Chhatisgarh, Jharkhand, Andhra Pradesh and West Bengal should have investment amounts and priority (with respect to infrastructure development) similar to what is accorded to the North Eastern states and J & K. This would entail expediting planned Rail connectivity in these areas;
• Work in Progress

Following is from Samaja. Its unacceptable that Orissa only spent 650 crores out of the allocated 1100 crores for NREGS during 2008-2009. The unspent money could have built half of Khurda-Balangir line. The Orissa government needs to do a better job at spending this money.

The following is from http://rc.orissa.gov.in/index3.asp?linkid=30&sublinkid=272.

ORISSA’S 11^th Five Year PLAN SIZE FIXED AT RS.32,225 CRORE

 AIMS AT 9% GROWTH

 

Addressing the 54^th meeting of the National Development Council (NDC) at Delhi, Chief Minister of Orissa Naveen Patnaik announced that the 11^th five year plan for Orissa has an outlay of Rs.32,225 crore and targeted 9% growth for the plan period. This was set against the achievement of 7.26% growth during the first four years vis-à-vis the target of 6.2% of the 10^th five year plan.

 

In his address, the Chief Minister, Orissa stated that tackling the challenging task of reduction of regional, social and gender disparities and achieving faster, broad-based and inclusive growth needed a three-pronged strategy that included:

(i)               Increasing flow of untied Central assistance to less developed states,

(ii)            Providing greater fiscal space to the states for mobilizing higher resources, and

(iii)          Helping states to reduce their debt burden by swapping high cost debt, including Small Savings debt, with low cost loans.

He impressed that a growth strategy that promotes employment has been rightly given prominence in the 11^th Plan.  Orissa has already put employment generation on a mission mode for achieving convergence of resources and activities under different programmes to generate more employment opportunities for unemployed people.  Development of small scale industries in clusters and ancillarization are also going to be given more attention during the 11^th Plan.

 

He also stressed that increasing irrigation potential and drought proofing were critical pre-requisites to enhance agricultural productivity.  With a view to increasing assured irrigation in Orissa, he urged Government of India to substantiality increase Accelerated Irrigation Benefit Programme (AIBP) funding for Orissa and to expand the scope of AIBP to include Lift Irrigation projects.  He further requested Government of India to significantly enhance allocations under Jawaharlal Nehru National Urban Revival Mission (JNNURM) and Urban Infrastructure Development Schemes for Small and Medium Towns (UIDSSMT) for providing basic infrastructure facilities in urban and semi-urban areas in Orissa.

 

The Chief Minister, Orissa further outlined several interventions that were urgently needed for expeditious and inclusive growth of backward states like Orissa.  Some such interventions included:

(i)               higher Central Assistance for infrastructure development in the areas of roads, ports and railways in Orissa and other backward states,

(ii)            enhancement of funding for the World Bank sponsored Orissa State Road Project from US $ 250 million to US $ 360 million and increased Central support for the proposed Ranchi-Vijayawada Highway,

(iii)          establishment of prestigious Central institutions like IIT, IIM and IIIT in Orissa to meet growing needs of skilled manpower for upcoming industries,

(iv)          exemption from income tax and central excise for 10 years for the KBK region on the lines of Special Category States in order to promote industrialization,

(v)             timely revision of royalty on coal and other minerals, on  ad valorem basis and  equitable share of export duty levied by Government of India on major minerals to the mineral rich states,

(vi)          just and adequate compensation for power producing states which bear the brunt of pollution and displacement, and

(vii)        expeditious coverage of all 30 districts under RGGVY and release of funds for the same.

 

The Chief Minister, Orissa also stressed that the mineral rich states needed to benefit from their natural endowment in a fair and efficient manner and that these states needed to be consulted in assigning mineral concessions.  He stated that value addition within the mineral bearing states needs to be given emphasis and hoped that Government of India shall fully address the concern of the mineral bearing states while finalizing the proposed mineral policy.  He further urged the Central Government to declare Orissa as a Special Category State.

 

This has been reported in Tathya.in, Kalinga Times, and Odisha.in so far. Odisha. in has the two letters.

• Letter to the PM
• Letter to the CM

We appeal to the readers with interest in Orissa to contact their local organization (Outside Orissa, the local Orissa/Oriya/Kalinga organization) and through them send a similar letter to the PM and CM at the earliest. The planning commission has been asked by the PM on September 14th to make the location decisions in two months. So time is running out on this.

(1) ECOR GM Shri Surendra Singh Khurana in his Independence Day address (available at http://eastcoastrailway.gov.in/custom/press_release/index.php) while talking about ECOR, said:

 “With only 4% of the track of Indian Railways, we cater for about 12% of total loading of Indian railway and about 7% of total earning of IR.”

(2) From http://finance.groups.yahoo.com/group/irfca/messages

For the 2003-2004 and 2004-05 the working expense as part of gross earnings of the ECOR zone is the second best at 66.64% and 61.75% respectively.

• The profit making zones in those years were
  • South east central (62.8% and 56.1%),
  • ECOR (66.64% and 61.75%),
  • North central (76.33% and 66.71%),
  • Central (80.29% and 82.48%),
  • South eastern (81.24% and 83.51%),
  • South Central (85.72% and 83.62%),
  • West Central (80.99% and 84.08%),
  • South Western (91.35% and 86.15%),
  • Western (93.21% and 90.85%),
  • Northern (91.08% and 92.89%) and
  • East Central (93.65% and 98.9%).

• The loss making zones were:
  • metro Kolkata (247% and 264.38%),
  • North Eastern (151.93% and 160.88%),
  • Northeast Frontier (147.98% and 159.45%),
  • Eastern (161.3% and 152.84%),
  • Southern (118.55% and 120.79%) and
  • North Western ( 106.26% and 104.98%).

(3) Based on (1) and (2) above ECOR probably makes about 10% of Indian Railways profit.

Why does not ECOR have the track length commensurate with the earnings it makes?

Why are no serious efforts being made to correct this; especially with many planned lines being given only minimal annual budgets which in many cases are less than the annual inflation.

In terms of rail density: the average rail density (2004-05) for India is 19.13; the rail density is highest in Delhi (138.2) followed by West Bengal (43.4), Punjab (41.6), Haryana (36.1), Bihar (35.9), Uttar Pradesh (35.8), etc. while Chhatisgarh (8.6) and Orissa (14.6) are among the states with low rail densities.

(6) The data from (1-3) and (5) show that while Indian Railways is making a lot of revenue and profit from ECOR (big part of which is in Orissa) and also SER (part of which is in Orissa), both ECOR and Orissa have been grossly neglected. This is true about the past; what about the future?

Mr V. N. Mathur, Member (Traffic) of the Railway Board is reported to have said:

“We’ve submitted to the Planning Commission a Rs 251,000-crore proposal for implementation by the end of the Eleventh Plan. We’ve indicated mobilisation of Rs 90,000 crore from within and 29 per cent of the projected estimate by way of market borrowing. For the balance, we may have to approach the government for support. But then nothing has yet been finalised.”

 (8) Many expensive and highflying plans by Indian Railways for the 11^th plan, but most bypass Orissa and ECOR.

(8A) Freight Corridor: Various news reports suggest that the 11^th plan (next 5-7 years) will take up the western and eastern corridors.

http://www.indianexpress.com/story/9030.html

Western Corridor: 1,483-km Delhi-Mumbai route

http://www.hindu.com/2006/09/17/stories/2006091708640400.htm reports that the “Chennai-Kolkata and Chennai-Mumbai corridors will be included in the second phase of the Dedicated Freight Corridor Project.” 

(8B) High Speed Corridors:

“Delhi-Chandigarh-Amritsar, Mumbai-Baroda-Ahmedabad, Chennai-Bangalore-Coimbatore and Howrah-Asansol-Patna — were announced in the current rail budget.”

(8C) Metro Rails and rapid transit systems: From http://en.wikipedia.org/wiki/Transportation_in_India#Metro   and

http://en.wikipedia.org/wiki/Bangalore_Metro

The following are the existing or under construction/expansion metro rail projects.

• Delhi Metro
• Hyderabad Metro
• Kolkata Metro
• Kolkata Suburban Railway
• Lucknow MEMU 
• Chennai Metro
• Mumbai Suburban Railway
• Bangalore Metro
• Mumbai Metro •
• Thane Metro
• In planning:
  • Ahmedabad Metro
  • Kochi Metro
  • Goa
  • Pune

(9) In essence revenue and profit generated in ECOR is being ploughed into other parts of India, which by itself is not wrong as Orissa is a part of India, but lets analyze who are the losers: the adivasi and backward areas of Orissa (and hence of India) who are backward partly because lack of proper connectivity, and this neglect continues to keep them backward and prevents them from catching up.

No, here are the data and following it is what planning commission teams have themselves said.

(10) The tribal population percentage of the KBK districts are as follows:
Malkangiri 58.36% (+19.96% SC), Rayagada 56.04% (+14.28% SC), Nabarangpur 55.27% (+15.09% SC), Koraput 50.67% (+13.41% SC), Nuapada 35.95% (+13.09% SC), Kalahandi 28.88% (+17.01% SC), Sonepur 22.11% (+9.5% SC), Balangir 22.06% (+15.39% SC). Two adjacent districts also have high tribal population. They are Kandhamala 51.51% (+18.21% SC) and Gajapati 47.88% (+8.77% SC).  Tirbal percentage of Mayurbhanj is 57.87% and Sundergarh is 50.74%.

(11) The literacy rates in the KBK districts are abysmally low. Malkangiri 31.26%, Nabarangpur 34.26%, Rayagada 35.61%, Koraput 36.2%, Nuapada 42.29%, Kalahandi 46.2%, Balangir 54.93%, Sonepur 64.07%. Two adjacent districts also have low literacy: Gajapati 41.73% and Kandhamala 52.95%. The state average is 63.1%.

(12) Population below the poverty line in southern Orissa (of which KBK is a part) is reported to be 89.17% of the people according to the 1999-2000 NSS data and 72% of the families according to the 1997 census.

(13) From http://www.mainstreamweekly.net/article174.html

Table 1 provides State level data on poverty ratios during 2004-05. The lowest poverty ratio was 5.4 per cent for Jammu and Kashmir and highest poverty ratio was for Orissa (46.4 per cent). States with poverty ratio of less than 15 per cent were Jammu & Kashmir, Punjab, Haryana, Himachal Pradesh, Delhi and Andhra Pradesh. As against them, States with poverty ratio above 30 per cent were Maharashtra, Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh, Chattisgarh, Uttarakhand and Orissa.

Table 1: Number and Percentage of Population Below Poverty Line (2004-05) based on URP Consumption

Rural

Urban

Combined

State	% of Persons	No. of persons (in lakhs)	% of Persons	No. of Persons (in lakhs)	% of persons	No. of persons(in lakhs)
S.No.	(1)	(2)	(3)	(4)	(5)	(6)
1 Jammu & Kashmir	4.6	3.7	7.9	2.2	5.4	5.9
2 Punjab	9.1	15.1	7.1	6.5	8.4	21.6
3 Himachal Pradesh	10.7	6.1	3.4	0.2	10.0	6.4
4 Goa	5.4	0.4	21.3	1.6	13.8	2.0
5 Haryana	13.6	21.5	15.1	10.6	14.0	32.1
6 Delhi	6.9	0.6	15.2	22.3	14.7	22.9
7 Kerala	13.2	32.4	20.2	17.2	15.0	49.6
8 Andhra Pradesh	11.2	64.7	28.0	61.4	15.8	126.1
9 Gujarat	19.1	63.5	13.0	27.2	16.8	90.7
10 Assam	22.3	54.5	3.3	1.3	19.7	55.8
11 Rajasthan	18.7	87.4	32.9	47.5	22.1	134.9
12 Tamil Nadu	22.8	76.5	22.2	69.1	22.5	145.6
13 West Bengal	28.6	173.2	14.8	35.1	24.7	208.3
14 Karnataka	20.8	75.0	32.6	63.8	25.0	138.9
15 All-India	28.3	2209.2	25.7	808.0	27.5	3017.2
16 Maharashtra	29.6	171.1	32.2	146.3	30.7	317.4
17 Uttar Pradesh	33.4	473.0	30.6	117.0	32.8	590.0
18 Madhya Pradesh	36.9	175.7	42.1	74.0	38.3	249.7
19 Uttarakhand	40.8	27.1	36.5	8.9	39.6	36.0
20 Jharkhand	46.3	103.2	20.2	13.2	40.3	116.4
21 Chattisgarh	40.8	71.5	41.2	19.5	40.9	91.0
22 Bihar	42.1	336.7	34.6	32.4	41.4	369.2
23 Orissa	46.8	151.8	44.3	26.7	46.4	178.5

Note: States have been arranged in the ascending order on the basis of combined poverty ratio in 2004-05. Poverty line: Rs 356.0 in rural areas and Rs 538.6 in urban areas (Per capita monthly expenditure).

Source: Planning Commission, Press Release, March 2007.

Five States, namely, Uttar Pradesh, Maharashtra, Bihar, West Bengal and Orissa accounted for 166 million poor (about 55 per cent of the total poor estimated at 302 million). This shows the high concentration of poor in these five States.

(14) Planning Commission: The Planning Commission in its report comparing the development status of economic infrastructure of Orissa, especially the KBK region, vis-à-vis the country says:

"Railways have always played an important role in economic development and rapid social transformation in all parts of the globe. It is one of the key economic infrastructures. However, it is most unfortunate that in a poor and backward state like Orissa, development of rail networks has received much less attention of the Central Government in the post-independence period. There are as many as seven districts like Boudh, Kandhamal, Deogarh, Nayagarh, Kendrapara, Malkangiri and Nabarangpur out of the 30 districts of the state, which do not have any railway line passing through them. In the year 1998-99, the density of railway route length per 1000 sq. km of area in Orissa was only 15.03 km as against 42.66 km in West Bengal and 19.11 km. at all-India level”.

 (15) What we are asking with respect to KBK and adivasi areas of Orissa?

We are asking the current PM and the current planning commission to pay attention to what the planning commission report says in (15) and the data in (11)-(14).

In particular, we would like the following lines to be completed during the 11^th plan.

1)     Khurda – Balangir (This brings Railways to districts of Boudha, Sonepur and Nayagarh and bring Balangir – a part of KBK- closer to the state capital. This line of 290 km, initially budgeted at 700 crores, has all the necessary studies done, and its survey was complete before May 2004. It should be targeted to be completed within the next 2-3 years.)

2)     Gunupur-Theruvali (The Orissa govt. is ready to use PPP for this. This should also be done in 2-3 years together with the broad gauge conversion of Naupada-Gunupur line)

Lanjigarh Rd – Bhawanipatna – Junagarh – Nabarangpur- Jeypore – Malkangiri – Bhadrachalam Rd in Andhra Pradesh. (The first phase of this Lanjigarh Rd – Junagarh is 56 km with an estimated cost of 120 crores. 15% of it was completed before May 2004. This should be completed immediately within 1-2 years. This line lies completely within the KBK districts and when finished will bring Railways to the districts of Nabarangpur and Malkangiri. Moreover, the Malkangiri-Bhadrachalam Rd part could go through a bit of Chhatisgrah. This line will create a shorter and alternative Ranchi-Hyderabad route and bring connectivity to an area that is currently havited by many extremist groups. Not much has been done beyond Junagarh, so this must be immediately approved and work started so that the line gets completed by the end of the 11^th plan.)

Talcher – Bimlagarh (This is 154 km long and was estimated at Rs 727 crore. This will bring the tribal district of Sundergarh much closer to Orissa, connect a dangling line, and will bring passenger rail to big parts of Sundergarh. This should be completed in 3-4 years.)

(These lines connect dangling lines and will bring passenger rail to big parts of the tribal district of Mayurbhanj. Not much has been done, so this must be immediately approved and work started so that the line gets completed by the end of the 11^th plan.)

Badampahar-Keonjhar (This line also  connecst dangling lines and will bring passenger rail to big parts of the tribal district of Mayurbhanj. Not much has been done, so this must be immediately approved and work started so that the line gets completed by the end of the 11^th plan.)

1. Parlakhemundi, the district headquarter of Gajapati (part of KBK+) will be on Broad gauge rail and will be 305 kms from Bhubaneswar (the state capital).
2. Sonepur, the district HQ of Sonepur district will be on connected by rail and will be 259 kms from Bhubaneswar (the state capital).
3. Boudh, the district HQ of Boudha district will be connected by Rail and will be 217 kms from Bhubaneswar (the state capital).
4. Nayagarha, the district HQ of Nayagarha district will be connected by Rail and will be 84 kms from Bhubaneswar (the state capital).
5. Bhawanipatna, the district HQ of Kalahandi district (part of KBK) will be connected by Rail and will be 450 kms from Bhubaneswar via Balangir and 504 kms from Bhubaneswar (the state capital) via Gunupur.
6. Malkangiri, the district HQ of Malkangiri district (part of KBK) will  be connected by Rail.
7. Nabrangpur, the district HQ of Nabrangpur district (part of KBK) will be connected by Rail.
8. Balangir, the district HQ of Balangir district will now be 309 kms from Bhubaneswar instead of the earlier 397 kms.
9. Nawapara Rd, near the district HQ of Nawapara district will now be 459 kms from Bhubaneswar instead of the earlier 547 kms.
10. Rayagada, the district HQ of Rayagada district will now be 419 kms from Bhubaneswar instead of the earlier 502 kms.
11. Koraput, the district HQ of Koraput district will now be 573 kms from Bhubaneswar instead of the earlier 676 kms.
12. Titlagarh, a major junction will now be 373 kms from Bhubaneswar instead of the earlier 461 kms.
13. There will be an alternate shorter path from Ranchi to Hyderabad via Titlagarh-Bhawanipatna-Nabrangpur-Jeypore-Malkangiri-Bhadrachalam Rd

(17) Is the Indian railway under the UPA government neglecting Orissa than the previous government?

(18) In the 2004 railway budget given at http://pib.nic.in/release/release.asp?relid=869 (items 35,37) the then Railway Minister Nitish Kumar had proposed the Remote Area Rail Sampark Yojana which aimed to complete lines like Khurda-Balangir within the next 5 years. This has been completely sidelined by the UPA government. This is what he said.

(18 A) Following is the exact wording, in items 35 and 37 of the 2004 Railway budget.

    * 35. Railways have a large shelf of over 230 projects worth about Rs. 43,000 cr, for construction of New Lines, Gauge Conversion, Doubling, Electrification and Metropolitan Transport Projects. Even with the enhanced budgetary support, non-budgetary initiatives under National Rail Vikas Yojana and other cost sharing mechanisms apart from Defence funding of some projects of strategic importance, there will still be projects valuing Rs. 20,000 cr which would remain unfinished even after the next five years. A large number of these have been sanctioned on socio economic considerations with the intention of connecting remote and backward areas with the rail network. However their progress is very slow on account of inadequate funding, which causes dissatisfaction. Connecting these areas with the rail network will facilitate the economic and social development of these areas and will provide major employment opportunities during construction and thereafter. Keeping these factors in mind, it has been decided to speed up the execution and completion of these projects also in the next five years. I am happy to inform the House that this would be done through an ambitious ‘Remote Area Rail Sampark Yojana’, with an additional outlay of Rs. 20,000 crore.
    *

    * 37. This decision to accelerate the completion of all projects in five years is expected, on a broad estimate, to provide yearly employment to about 3 lakh persons during the construction period. Once opened for traffic, these lines would also require about 18000 persons per year for normal maintenance and operations, on incremental basis. Apart from this, it is expected that there will be scope for indirect employment of nearly 55000 persons per year. The ‘Remote Area Rail Sampark Yojana’ will go a long way in changing the economic and social scenario of the remote and backward regions of the country and bringing the people of these areas into the mainstream. Further, the demand for steel, cement, rolling stock, fittings, components, plant and machinery will also be generated, boosting the economic growth of the entire country.

(18 B) World Bank:

http://info.worldbank.org/etools/docs/library/240060/India%20%20financing%20infrastructure%20-%20addressing%20constraints%20and%20challenges.pdf
June 2006 report (page 70 above Table A8)

The second project envisaged by the railways was announced in the interim Budget of 2004- 05 and is called Remote Area Rail Sampark Yojana (RARSY). This involves executing and completing hitherto sanctioned projects related to connecting remote and backward areas with the rail network till 2010. The total investments in these projects is valued at Rs.200 billion. Presumably this is to be entirely funded by budget
support.

(18 C)   http://164.100.24.208/ls/CommitteeR/Railways/16th-Report.pdf
Railway Standing Committee Report 2005-06

Page 19:

To bridge this gap and considering the slow progress, projects especially in backward, underdeveloped and remote areas due to constraint of resources, Government had announced "Remote Area Rail Sampark Yojana" (RARSY) in the Interim Budget 2004-05 which envisages investment of about Rs.20,000 crore in a period of 5 years on ongoing projects taken up on socio-economic considerations. However, the funds for the Yojana are yet to be tied up. Government in has attached priority to  infrastructure development. Keeping this commitment in view, a proposal has  been mooted for creation of Remote Area Rail Infrastructure Fund for financing the RARSY. If the Government approves the funding of this Yojana, all the ongoing projects will get completed in five years. The yojana is being processed in consultation with the Ministry of Finance for approval of the Government duly identifying the funding sources. A note in this regard is under process in the Ministry for consideration of Government.

3.10 Giving the details of the new initiatives to address the foregoing funds constraints, the Chairman, Railway Board stated as under:-
"Over the last few years, certain initiatives have been taken to see how we will fund over projects so that the pace of adding new lines, gauge conversion and doubling speeds up. We have introduced funding through defence for strategic lines. We have got some of the projects declared as the national projects where the funding is given directly by the Government. We have also initiated private participation in some cases, we have also
launched the Rail Vikas Nigam Limited which is generating funds through various sources including the market borrowing. Our need was to generate about Rs.47,000 crore to take care of the projects on the shelf. Out of this, we found that we can generate about Rs.12,500 crore or so out of the normal Budgetary support as per the past trends. We would be generating about Rs.18,000 crore due to the new initiatives that have been taken in the past few years. It still leaves us a gap of about Rs.17,000 crore to take care of
the projects which are by and large non-remunerative projects but they are on the shelf. These are the projects which are connecting distant areas, backward areas. They were sanctioned on socio-economic considerations and so many other considerations. Even for the sum of Rs.17,000 crore, which is our requirement, in the year 2004, in the Interim Budget, a scheme of Remote Area Rail Sampark Yojana was introduced. We are yet to finsalise the funding pattern under this scheme. The effort is to involve the State Government’s participation into this scheme as also through other means.
We are yet to give it a final shape."

3.11 In response to the concern of the Committee as to why the completion targets of the projects are not being fixed, the Chairman, Railway Board stated as under:-

"most of these projects will not be completed in the next few years. In fact, the projects where target has not been given is because normally we give targets for projects which are going to be over in the next two to three years.  But where it is going to be a distant period and where we do not know as to how much funds would be allocated for these projects, we do not give targets for those projects. So, wherever targets are given these are the projects which will take more than two to three years to get completed depending on how much funds are given. On our part, we have tried to revive the CapitalFund to see that we can put in more money.

Page 22: Talks about National Projects

3.12 In the absence of adequate internal generation of revenues by the Railways,
the following projects has been declared by the Government as the national Projects in the National interest. The funding for these projects are ensured by the Central Exchequer in the form of additional Budgetary Support to the Railways.

(18 D) Summing up this point:

In summary, based on earlier planning commission report as excerpted in (14) the 2004 Rail budget had the scheme RARSY which would have completed KBK connectivity lines like Khurda-Blangir. But the UPA government has buried that plan and has talked about burdening the state government for these lines, which since they can not afford, basically means abandoning these lines. This approach needs to be reversed and while India and Indian Railway marches ahead it must not forget the backward and adivasi areas of India and Orissa; especially when it makes money from transporting freight (minerals) from these areas.

(19.5) While the above are finished during the 11^th plan, we will patiently wait for the 12^th plan

• for the 2^nd phase of freight corridor involving Howrah-Chennai that will pass through Orissa;
• for high speed rail between Howrah-Bhubaneswar-Visakhapatnam, Visakhapatnam-Hyderabad, and Visakhapatnam-Chennai;
• for a metro rail for greater Bhubaneswar; and
• additional lines such as Jaleshwar-Digha, Berhampur-Phulbani, Bargarh-Nawapara Road and Talcher-Berhampur.

 

The report by the high level committee on National Mineral Policy (Hoda committee report) is available in the planning commission’s web page. The “Conclusions and Recommendations” of the initial Hoda committee report is available here. Orissa government’s response to the initial Hoda committee report is here and further lobbying the PM on this issue is here. To understand the various nuances this old Business world article is very useful.

(Note: Earlier we compiled several mining related links here.)