PUNJAB ECONOMY

 

Punjab economy is predominantly an agrarian economy. Though Punjab is the

pioneer of Green Revolution in the country and is among top ranking states in terms of per

capita income and high monthly per capita expenditure, yet it continues to face certain

problems.The main concerns & prospects are discussed below:-

 

 

CONCERNS

 

Saturation in Agriculture and erosion of Soil health

Agriculture production has reached a plateau. The soil health in the State has been

deteriorating with the continuation of rice-wheat rotation by farmers due to assured profits as

compared to other crops. The higher yield realization per unit area is also responsible for

reduction of nutrients in the soil. To improve soil health it is necessary to add organic matter in

the form of farm yard manure, green manuring and incorporation of crop residual as well as

optimise soil testing. In a nutshell, the agriculture faces problems as the net area irrigated have

been fully exploited and the cropping intensity has reached a saturation point.Domination of

wheat-paddy in foodgrains, stagnating productivity, in the absence of breakthrough in new

high yielding varieties, strains on marketing infrastructure, dwindling ground water resources,

decline in profitability etc. is another set of problems which require immediate attention .

Contribution of primary sector, which comprises mainly agriculture and allied activity,

in the GDP of state is continuously declining since 2004-05 when it was 32.67%. It has came

down to 24.14% in 2010-11 quick estimates.Not only this time, the growth of primary sector in

Punjab is lower as compare to all India which proves that there is little scope for further growth

in this sector but the rural population which comprise about 62.51 % of the total population is

still mainly dependent on farm living. As Punjab’s agriculture was structured to produce food

(particularly wheat and rice) in response to national requirement which resulted in over use of

natural resources.

The State has to respond to the global mandate to be competitive. A concrete

programme of diversification and raising value addition in each agro-climatic region of Punjab

depending on the health of soil and water availability has to be developed.

Over Exploitation of scarce Water Resources

As irrigation facilities have been over used to increase agriculture production of

the State mainly wheat and paddy, the ground water level has decreased drastically since the

last one decade. About 98 percent of cropped area sown is already irrigated, so there is very

little scope to further increase the cropped irrigated area. Approximately 13.82 lakh tubewells

are working in the state which irrigate about 73 percent of the total irrigated area. Farmers of

Central Punjab areas have to install deep tubewell by spending huge amounts to ensure timely

requirement of water for irrigation, that have adversly affected the economic condition of

farmers. The water table in 9,058 sq.kms of central Punjab has gone down more than 20 metres

during the last decade and similar trend is continuing in some other districts also.

Sangrur, Barnala and Moga districts of Malwa region have been affected more

seriously.However,Punjab Soil Preservation of Sub Soil Water Act 2009 has controlled the

pace of falling water table to some extent. As per Dynamic Ground Water Resources Report

of Punjab ( March,2004 ) the utilisation of water is more than its recharge rate, due to which

103 blocks of the state have declared as over exploited, 5 blocks critical, 4 block semi critical

and only 25 block are safe. South- western adjoining area of the State where Bikanair canal

and Sirhind feeder are passing create water logging and degrade water quality which poses

different set of problems.

High Incidence of debt on Farmers

After Green Revolution consumtion level in rural area, particularly among farmers increased

considerably.Cost of cultivation under HYV, agriculture continued to increase while productivity/

hectare stagnated in case of major crops, as result the majority of cultivators are cash strapped.

In addition to it, financial position of rural families is upset either due to crop failure or sudden

increase in consumption expenditure on social ceremonies such as marriage, birth or death.

This is reflected in huge debt burden on farmers. The high debt burden on small and marginal

farmers has destroyed many and they have had to either sell or mortgage their land. This has

ultimately triggered instances of suicide by many farmers.

Lack of Storage Facilities

The increased food production and slow movement of foodgrains have compounded the

problem of food storage in the state. The total storage capacity in the state is about 200 lac MT

against the annual procurement of about 225 lac MT. The state is, therefore, required to store

about 20-25 lac MT of food grains in open resulting in damage to foodgrains. Government of

India had identified 71 lac MT of shortage of covered space under the Private Entrepreneurs

Godown scheme in 2008. The state was, however, allotted only 51 lac MT capacity and the

remaining 20 lac MT was diverted to other States.Govt of India should re allot the 20 lac MT

capacity to the state in the form of silos.

Heavy Public Debt

The net debt of the State increased to Rs. 77585 crore at the end of 2011-12. The total

committed expenditure on salaries, pensions and interest payments was Rs. 24015 crores in

2011-12 against the total revenue receipts of Rs. 32027 i.e. nearly 75% of its revenue income

is consumed by committed expenditure. The annual interest payment for debt servicing amounted

to Rs. 6530 crore in 2011-12. It was about 20.39% of the total revenue receipts. The State has

amended the Fiscal Responsibility Management Act as per the recommendation of 13th Finance

Commission. The debt GSDP ratio has, however, come down from 38.03 % in2006-2007 to

29.91% in 2011-12 against the target of 41.80% as per the road map of 13th Finance Commission.

Similarly, the fiscal deficit during the year 2011-12 was 3.44% against the target of 3.5%.

However, there has been slippage in the ratio of revenue deficit which is likely to be 2.39%

against the target of 1.80%.

The State is now practically borrowing the entire permitted amount of 3.5% of GSDP.

The State would make gross borrowing of Rs. 12983 crore during 2012-13 out of which 3397

crore would go towards payment of principle and Rs. 7120 crore towards payments of interest

leaving a balance of only Rs. 2466 crore for utilization. The annual interest liability is more than

about 20% of the revenue receipts. This level of debt is clearly unsustainable. The 13th

Finance Commission has identified Punjab and the two other States of Kerala and West Bengal

as debt stress states. A committee was constituted under the chairmanship of Secretary

Expenditure, Ministry of Finance, Government of India to explore ways to assist these States in

getting out of current fiscal stress. The Committee has held four sittings.. The State Government

has requested that the small saving component of Rs. 23264 crore in the net debt of Rs. 77585

crore in the first instance be written -off or alternatively there be moratorium on payment of

the principle as well as interest of the next five years. This would give an annual relief of about

Rs.3000 crore to the State.Without this relief, the state will find it difficult to implement the

annual plan.

Lower Plan Performance

Plan performance during the 10th plan period with an expenditure of Rs. 14823 crore was

89% whereas it declined to 80% during 11th period. The year wise plan performance during

the five year of 11th plan has been to the extent of 98% , 112% , 58%, 91% and 64% respectively.

The low plan performance of 58% during 2009-10 may be attributed to abandonment of

Mohali-Phagwara express way for Rs. 1200 crore and low utilisation of funds by Punjab State

Electricity Board on account of its un-bundling.The low plan performance of 64% during

2011-12 is on account of Model Code of Conduct firstly due to SGPC elections and than

due to assembly elections. Shortage of funds also affected implementations of some of the

schemes.

Industrial unfavourable State

In spite of availability of power and good infrastructure, Punjab is no longer considered

an attractive destination for investment due to its landlocked location with a hostile border.

Prolonged militancy and abolition of freight equalization policy for iron and coal and tax concession

to neighbouring states during the last decade have further contributed to decline in industrial

investment. Some specific measures need to be taken during the five year plan to rejuvenate

and revive the industry in the state. Industrial growth is very slow in the state as per ASI data

factories in Punjab have increased @ 1.96% during the year 2009-10 as compared to previous

year.Fixed capital has decline from 2648036 lacs in 2008-09 to 2610606 lacs in 2009-10@

1.41%. However number of employees and Net value addition have increased by 2.3% and

17.25% respectively during this period.Central Sector investment in Punjab is also only to

extent of about 1.5% of the total investment in country. There has been no major investment in

the state for past many years. Government of India may facilitate location of major project

such as Automobile Manufacturing Unit which will have large scale potential for ancillary

development.

The number of large & medium scale industrial units during the year 2010-11 was

425 (Provisional) with a fixed investment of Rs. 40000 crore,providing employment to 2.35 lac

persons with a turn over of Rs.82,000 crore.During the year 2011-12 these units have increase

to 450 with a fixed investment of Rs.45000 crore, which will generate employment to 2.50 lac

persons with a turn over of Rs. 95000 crores. Simultaneously during the year 2010-11

(Provisional) there were 168000 small scale industrial units with an investment of Rs. 8600

crore providing employment to 10.20 lac persons with a turn over of Rs. 54000 crore . During

the year 2011-12 this number will increase to 1,70,000* with a fixed investment of Rs. 9000

crore*which will provide employment to 10.40 lac persons with a production value of Rs.

80000* crore . Due to greater emphasis on technical and professional education, a large number

of professionally qualified persons are joining the skilled work force every year in view of this, a

strong linkage between educational institutions and the industrial sector is required. Large and

Medium units have more potential to absorb technically trained and skilled labour force.

During the year 2009-10 exports were to the tune of Rs.15972.48 crore.The main items

of export from the State are Yarn & Textiles, Readymade Garments and Hosiery, Sports Goods,

Engg., Cycle Parts, Hand Tools and Drugs.

Low Credit Deposit Ratio

Although the credit-deposit ratio of commercial banks in Punjab is improving, yet it is

very low as compared to many States. During the calender year 2009 , in Punjab, this ratio was

65.49% which was lower than 71.13%of National Average. However during 2010 this ratio of

Punjab (77.34%) was higher than (75.13%) to all India ratio. During these two years creditdeposit

ratio of Tamil Nadu (112.10% & 114.11%) , Andhra Pradesh (104.51 % & 109.95%),

Rajasthan (84.69% & 90.01%) and Maharashtra (82.43% & 81.31%) are significantly higher

than Punjab. To improve the credit-deposit ratio in the State, certain specific policy measures

are needed to be adopted.

High Revenue Deficit State

Punjab was a revenue surplus State till 1986-87. The rising expenditure on security

and long spell of President Rule during which no attempt was made to mobilize additional

resources contributed to growing revenue deficit. The State has burdened with Special Term

Loan by Government of India. Huge interest payments, implementation of recommendations of

Vth Pay commission and inadequate support from Government of India have further contributed

to the fiscal stress of the state .

The 13th Finance Commission has recommended a revised roadmap for fiscal

consolidation under which yearly targets for Revenue Deficit is to be achieved to zero level and

Fiscal Deficit 3.0% upto 2014-15. Target of Revenue Deficit for 2011-12 is 1.8% of the GSDP.

The Revenue Deficit of state as per 2010-11 pre actuals is 5288.71 crores which came to

around 2.31% of GSDP. The State has to mobilise additional revenue and cut non development

expenditure containing the high Revenue Deficit.

Unfavourable determinents of Central Assistance

The Centre supports the States in the form of sharing of Central Taxes, Normal Central

Assistance, Additional Central Assistance and Centrally Sponsored Schemes.The criteria for

devolution of central taxes as finalized by the Finance Commission is based on population, area,

fiscal capacity, distance and fiscal discipline. It is not favourable to developed states

like Punjab and States share in the Central taxes has gone down from 2.450% in 1970-75 to

1.389 % in 2010-15.

Gadgil Mukerjee formula determines the inter-state distribution of Normal Central

Assistance. It is also based on population, per capita income, performance and special

problems. It is also not favourable to states like Punjab. The state government has sought

amendment in Gadgil Mukherjee Formula and the criteria for devolution of central taxes. The

revised guidelines should take into account 30% SC population of the state and its contribution

to central pool for food grains. The state has the highest SC population in the country and State

has ruined its soil and water resources for food security at the national level.

The criteria for allocation of funds under Additional Central Assistance Schemes

like AIBP , JNNURM, RKVY and NSAP and other Centrally Sponsored Schemes like SSA,

NRHM , PMGSY, RGGY do not favour the developed states. As per the guidelines of most of

these schemes, major allocation is made for providing infrastructure in the uncovered villages/

areas. The allocations for state like Punjab which has created the requisite infrastructure in

terms of village roads, 100 percentage electrification of villages, construction of health institutions

and schools, irrigation infrastructure, is meager. However, the state is required to incur heavy

expenditure on maintenance of its huge infrastructure. The guidelines of these flaghips schemes

should have provisions for maintenance and upgradation of existing infrastructure. In this context,

the state government welcomes the recommencations of Chautervedi Committee Report on

the restructuring of the centrally sponsored schemes.

 

High Demand for Power

The installed power generation capacity of the State is 7035.35 MW as on

31-3-2011, out of which 3620.35 MW is from own Power Houses, 1258 MW from

Common Pool Projects i.e. under Bhakra Beas Management Board (BBMB), 184 MW

from Micro Hydel /Bio-Mass NRSE/PEDA & other projects and 1973 MW is Punjab’s

share from Central Sector Power Project. The demand for power in the State is rising

sharply on account of rapidly increasing use of electrical energy for agricultural operations,

progressive industrialization, high living standard of residents and intensive Rural

Electrification Programme. The peak unrestricted demand is about 9399 MW which is

likely to rise to 10009 MW in the next two years. Thus there is a short fall of 25% of the

peak demand.

Unemployement

Unemployement especially among youths continues to be a cause of serious concern

for the state. The number of unemployed candidates registered in Employment Generation

and Training Department as on 31st December 2010 are 378120 out of which 2,95,085

(78%)are the educated . There is a dire need to promote higher vocational education in the

State. But these figures do not accurately reflect the true picture of the unemployment

situation in Punjab.During Mass Counseling Programme 1,75,035 youth of 1178 schools,

colleges and institutions have been guided about various careers, job opportunities, training

and other facilities.During the year 2010-11, department has organised camps in which

22,307 youth joined out of which 12,372 youth were employed. Besides this for new camps

(boys), Shahid Bhagat Singh Nagar (Nawan Shehar), Shahidgarh (Fatehgarh Sahib), Nangal

(Ropar), Talwara (Hoshiarpur) and 2 New camps (Girls), Kairon (Patti) and at Mansa

have been opened in this period. During the year 2011-2012, in the camps of “Training

and Employment of Punjab Youth” (C-Pyte) 10,000-12,000 youth will be given training for

wage employment in the Defence Para Military Forces/Public and Private Sectors, for

this, proposal of Rs.10 crore has been sent to government for approval.

Environment Pollution

Punjab has set an example of economic development in the country. But at the same time

this has resulted in certain adverse effects on the environment of the State. Major issues of

concern are alarming fall in under ground water table, river water pollution, deteriorating soil

health due to intensive cultivation and air and sound pollution. In addition to it water and air

pollution caused by industrialisation is also emerging as a major environmental problem.To

check these problems Government efforts alongwith creation of public awarness are equally

important.

 

Low Sex Ratio

Historically, situation of women in Punjab had not been satisfactory. During the last

century number of females had been less than their male counterpart. However, number of

females have been improving since 1921 to1991. But in 2001 the situation has taken a negative

turn when sex ratio declined to 876 as compared to 882 in 1991. This trend has again changed

significantly in 2011. It is result of joint efforts of Govt. machinery and Socio-Religious institutions

of the state and the spread of education especially among girls helped to improve the sex ratio

to 893 in 2011 as compared to 876 in 2001.

High Incidence of Cancer

Punjab has seen rising No. of cases of Cancer patients specially in Southern Malwa

District. Three Medical Colleges are being upgraded for treatment for Cancer patients. A

Cancer treatment center is being set up by Baba Farid University of Health Centres at Bathinda

. Govt of India has included three districts namely Bathinda, Mansa & Hoshiarpur under the

National Cancer Control Programme.

Drug Abuse

Drug abuse is emerging as the one of the major problem, specially for the youth, of the

state. In order to combat drug abuse in the State, ” Drug De-additiction Centres” in the existing

hospitals and ” State Level Drug Dependence Treatment Centres” on line of National “Drugs

dependence treatment centres” would be established in Govt. Medical Colleges Amritsar.

 

PROSPECTS

 

Growth better than target

The Economic growth of State has shown considerable improvement during 11th Five

Year Plan as compared to 10th Plan.GSDP of the State has grown by 6.74% during 11th Five

Year Plan as compared to 5.11% during 10th Plan whereas the national economy has grown

almost at the level of 10th Plan during this period.The target for 11th Five Year Plan for the

State was 5.9% against which it has achieved 6.74% growth. This growth has been achieved

despite the fact that contribution of primary sector (comprising mainly of agriculture and allied

activities) is on continues decline since 2004-05 due to the lower growth in agriculture. It has

grown by 1.61% where as the growth at National level in this sector has been 3.41% . It is the

positive development for the State.

Power

The Punjab State Electricity Board was unbundled into Punjab State Power

Corporation Limited and Punjab State Transmission Corporation Limited. In order to address

25% of power shortage, 3 thermal power plants of 3920 MW capacity were allotted to private

parties and these plants are likely to be commissioned between May, 2013 to May, 2014.

2.20 The State Government has undertaken various Thermal Power Projects

viz.Talwandi Sabo 1980 MW, Rajpura 1400 MW,Goindwal Sahib TPS-540 MW, Gidderbaha

2640 MW. Punjab is also setting up 1000 MW gas basis thermal plant at the site of GGSSTP

Rupnagar for which gas supply agreement has been signed with M/S GAIL recently, PSPCL

was serving 73,20,631 consumers up to March, 2011 and it has drawn an ambitious road map to

further reduce its transmission and distribution losses from 17.96% during 2010-11.PSPCL has

signed MoU with M/S Piona Power Development Co.for setting up of 1320 MW (2×660) coal

based thermal plant at village Bhupal in Mansa District.

Creation of Infrastructure

Punjab has created the requisite infrastructure in terms of village Roads, 100 percent

Rural electrification, adequate health and education institutions and irrigation network which

has created sufficient condition for economic development.Health and education were the

other key sectors which received top priority during the 11th Five Year Plan. The ban on

recruitment was lifted and all the vacant posts of teachers, doctors and para-medicals were

filled up. A project of Rs. 350 crore for construction of new health institutions for creation of

infrastructure in the health department as per norms was completed. Two of three medical

colleges were up-graded at the cost of Rs. 258 crore. The 3rd Government medical college

would be covered in the current year 2012-13. A major project for creation of urban infrastructure

by way of providing cent percent water supply, sewerage and sewage treatment plants was

launched.

During the last plan period, 405Km of National Highways were four laned, 9 State

Highways of 520Km length were upgraded in Public Private Partnership mode on BOT basis.

The Government has constructed 8000Km of new link roads and 3200Km of other village

roads from its own funds and under PMGSY. The state made tremendous progress in providing

rural water supply and sanitation . The work was completed in 3280 not covered villages and

3435 partially covered villages. As of now , out of 15170 habitations, there are only 1058 not

covered villages and 2423 partially covered villages which will be taken up during the next two

years. A total of 10.89 lac toilets were constructed upto the 11th plan period leaving a balance

of 10 lac families without toilets.

Agriculture

Punjab had made considerable progress in food grains production. The State has

contributed 102.10 lakh tonne (45.4 percent) of wheat and 86.3 lakh tonne (25.3 percent) of

rice to the central pool in 2010-11(P) .The production of wheat and rice during 2010-11(P ) was

164.72 and 108.19 lakh metric tonne respectively.

In order to improve the sustainability of paddy-wheat system being practised by the

farmers in the state, stress is laid on popularization of low water conservation techniques

specially, zero tillage technology, raised bed plantations and sprinkler irrigation, etc. The zero

tillage technology has been adopted by the farmers on a large scale, which not only saves

money and power but also leads to increase in yield. It helps farmers in saving Rs. 2500/- per

hectare on account of diesel alone due to timely sowing . Due to its benefits, wheat area under

zero tillage which was just 750 hectare in 2000-01 has increased to 6.95 lakh hectare during

Rabi in 2010-11.The target fixed for 2011-12 is 7.00 lakh hectares.

National Food Security Mission (NFSM) is a 100% Centrally Sponsored Scheme

introduced in the State during 2007-08.Under this scheme State provided Rs. 43.08 crore as

subsidy during 2010-11 and proposal for 2011-12 is Rs. 46.08 crore. The main objective of the

scheme is to increase the production of various agriculture crops. It is targeted to provide 3.00

lac qtls.certified seed of wheat on subsidy to the farmers during current rabis Season through

Punjab State Seeds Corporation which acts as nodal agency. About 6500 demonstration plots

having subsidy of Rs. 2000/- per plot will also be sown with new varieties of wheat. Subsidy

worth Rs. 13.00 crore will also be distributed to the concerned farmers on micro nutrients i.e.

Zinc and Manganese sulphate. Agriculture machinery like zero tillage drill and rotavator provided

on subsidy amounting to Rs. 8.57 crore.Proposal for 2011-12 under this scheme is Rs. 9.37

crore.

Punjab Preservation of Sub Soil Water Act 2009

To improve the ground water level Punjab Govt has also enacted ” The Punjab

Preservation of Sub Soil Water Act 2009″ according to which no farmer will be allowed to sow

nursery of Paddy before 10th May of the agricultural year. Similarly no farmer can transplant

paddy before the date fixed by State Government by notification. In case of violation, authorised

officer is empowered to destroy the nursery of paddy or transplanted paddy as the case may

be at the expense of such farmer.Further to save water and make its best use Micro Irrigation

scheme is being implemented as Centrally Sponsored Scheme. An area of about 7000 hect. is

likely to be brought under this scheme during 2011-12.

Borlaug Institute for South Asia (BISA)

There is an urgent need to revitalize research in agriculture and related activities. The

state government welcomes the Government of India’s decision to set up Borlaug Institute for

South Asia (BISA) for wheat and maize in Ludhiana. It would give fillip to research in new

areas and help the state in achieving the new productivity levels. ICAR is considering shifting

its Directorate of Maize Research (DMR) to some place outside New Delhi.The State

Government has requested to shift DMR to Ladhowal ,Ludhiana adjoining the proposed site for

BISA as it would greatly strengthen research on Maize and encourage the farmers in shifting

from paddy to maize.

Horticulture Programme

Under the Horticulture Programme in the State, an area of 2,58,249 hectares has been

brought under horticulture crops up to 31st March, 2011. An additional area of 5000 hectares

under different fruits has been targeted during 2010-11. During the year an additional area of

1349 ha. (upto September,2011) has been covered.

Under National Horticulture Mission (NHM), during the year 2010-11 the financial assistance

of Rs.4338.16 lac and during the year 2011-12 Rs. 2349.48 lac has been provided under different

activities.The Government and private registered nurseries in the State have distributed 12.25 lac

and 6.00 lac good quality nursery fruit plants during the year 2010-2011 and 2011-12 respectively.

To establish new orchards during the year 2010-11, an amount of Rs. 762.00 lacs and during the

year 2011-12, an amount of Rs. 70.00 lac has been disbursed through the Punjab State Cooperative

Agriculture Development Bank (PADB) and other Commercial Banks in the from of institutional

loans. A quantity of 31362 Qtls. of Seed Potato and 329 Qtls. of other vegetable seeds were

produced in 10 Government Vegetables Seed Farm .

Under R.K.V.Y during the year 2010-11, an amount of Rs. 1744.50 lac have been allotted to

this department for the development of Citrus Estates, purchase of Agro-Chemicals, Hightech

Model Nursery and Potato Development Board for providing Potato Graders on 40%

subsidy and to participate in the India Potato Expo., Exposure visit and for Non-Mission Districts.

Insecticides and Pesticides have been provided on 50% subsidy to the growers of all the districts

by the department and for the cultivation of vegetables, 191 Net Houses have been installed by

providing the financial assistance to the tune of Rs.76.40 lac.

During the year 2011-12 Rs. 100.00 lakh for the purchase of agro-chemicals and Rs.

600.00 lakh for cultivation of the vegetables through cluster approach has been released and 56

Net houses have been installed by providing financial assistance to the tune of Rs. 22.40 lac.For

the safe handling of fruits and vegetable 40816 plastic crates have been provided on 50%

subsidy. The work is under progress.

For the promotion of Mushroom during the year 2010-11, 41925 spawn bottles were

produced and supplied to 9796 families in 365 adopted villages under door to door cultivation of

mushroom campaigns. During the year 2011-12 (Upto Sept., 2011) 17700 spawn bottles were

produced. Under Sericulture Scheme, 23427 Kg. cocoons were produced and 1,37,600 mulberry

plants were supplied to the silk worm rearers. During 2011-12 upto September, 6002 kg. cocoon

has been produced .

 

Punjab Agri Export Corporation Limited (PAGREXCO)

Punjab Agri Export Corporation Limited (PAGREXCO) has emerged as a nodal entity

for coordinating horticultural ,agri-processing and export activities in the State by i ) Setting up

of Permanent Perishable Cargo Center ii) Setting up of Pack Houses for Fruits and Vegetables

iii) Juice Dispensing Activity iv)Corpus Fund iv) Food Park vi) Punjab Small farmers Agri-

Business Consortium (PSFAC) respectively.

Dairy farming

Dairy farming can play a vital role in saturated and stagnant economy of Punjab.

Dairying has a vast untrapped potential for growth of agrarian economy of State. In view of

it, Dairy Development Department and Punjab Dairy Development Board together have made

all out efforts to tide over the problems and put the dairying in Punjab on fast growth track.

Dairy has grown at faster rate than agriculture.The Department of Dairy Development has

teamed up with the Board for the implementation of programmes chalked out by the department.

Commercialisation of dairy farming has been encouraged in the State. Subsidy @ 25% with a

cap of Rs.1.5 lac has been distributed to 351 dairy farmers amounting to Rs.526.30 lac for the

construction of modern cattle sheds as per the approved design. About Rs.60.00 lac have been

given for meeting the cost of insurance premium and cost of chip. Similarly Rs.10.99 lac have

been distributed to the dairy farmers for the installation of bulk milk coolers as subsidy @ 50%

with a cap of Rs.4.00 lac. Milking machines and harvester were subsidized @ 50%.and

distributed Rs. 70.00 lac to 350 dairy farmers during last 18 months up to 30.09.2011.

Commercial Banks have been roped in to provide institutional finance for the dairy entrepreneurs.

During the period under review, 113.29 crore institutional finance was got disbursed. Spreading

the dairy farming through motivation of the farmers is function of sustained extension and

education work undertaken by the Department and the Board. During last 18 months 32568

farmers were given basic information about the benefits of dairy farming by holding camps at

block level. The menence of adulteration in feed and milk is being checked by arousing awareness

among the consumers through holding campus and analysing samples free of cost with automatic

analysers placed in the mobile laboratories.

Veterinary Services

For providing efficient and effective veterinary services with scientific methods to the

livestock, there is a network of 1367 veterinary hospitals and 1485 veterinary dispensaries in

the state. Out of which 582 veterinary hospitals have been shifted to Panchyati Raj Institutions

besides this, 10 district level veterinary polyclinics are providing specialized multidisciplinary

veterinary services to the precious livestock in the State and 9 new veterinary Polyclinics are

also under construction. A Regional Disease Diagnostic laboratory has been set up in the

existing premises of Animal Health Institute, Jalandhar for providing accurate and latest timely

diagnostic facilities to help the veterinarians to administer accurate type of treatment of

precious livestock of Northern States. The Government also established Guru Angad Dev

Veterinary and Animal Sciences University at Ludhiana. The department is also implementing

various schemes of the Govt.of India and State Govt.which will help for the self-employment

educated unemployed youth and weaker sections of the society to increase their family income

and also to provide better nutrition. To increase milk production and productive animals in

Punjab, the department has imported 3.25 lacs doses of high quality genetic semen from USA,

Canada and Denmark. Besides this 5000 doses of sex semen tested also been imported during

the year.

Blue Revolution

To encourage blue revolution, an area of 1020.77 hectares was brought under fishculture

against the target of 1055 hectares during the year 2010-11. During the year 2011-12 (upto 30th

September,2011) an area of 764.15 hectares has been brought under pisciculture against the

target of 1055 hectare.

Cooperative Finance

The Central Cooperative Banks and Primary Agricultural Societies play an extremely

vital role in the agricultural economy of the state. NABARD was earlier providing short term

re-finance to Cooperative Banks at 4% rate of interest. The Cooperative Societies were providing

loan at 7% rate of interest. The 3% margin was shared between the Cooperative Banks to the

extent of 0.5% and Cooperative Societies at 2.5%. NABARD has now in Janurary 2012

increased the rate of interest on re-finance from 4% to 4.5%. This would compel the Central

Cooperative Banks to increase the rate of interest chargeable from Cooperative Societies by

0.5% . As a result, there is likelihood of large number of Cooperative Societies going into

losses. Efforts are made to restore the rate of interest on refinance to 4 % and interest rate on

RIDF loans from 7.5% to the old rate of 6.5% by NABARD. Under the refinance support of

National Bank for Agriculture and Rural Development (NABARD), the Punjab State

Co-operative Agricultural Development Bank has advanced loan amounting to Rs.496.41 crore

during the year 2010-11. During the year 2011-12 an amount of Rs. 257.53 crore has been

advanced upto 30.9.2011 against the target of Rs. 591.66 crore.

Industry

Punjab Small Industries and Export Corporation (PSIEC) has so far developed 27 industrial

focal points in the state, where 10,338 plots of various sizes have been developed.Out of which

9717 plots have been allotted upto 31.3.2011. Apart from this, under Industrial Housing Scheme,

a total number of 3868 residential plots of various sizes have been carved out, out of these 2,388

plots have been allotted upto 31.3.2011 in existing Focal Points.

Punjab Government has also allotted 227 acres of land for integrated industrial mixed use

Park at Kapurthala.The Govt. of India has also accorded approval for setting up an Apparel

Park at Ludhiana with a financial assistance of Rs.17.00 crores.The Park is being promoted

by Apparel Exporters Association of Ludhiana having a total cost of Rs.40.00 crores.

Information Technology

SAS Nagar the city adjoining Chandigarh , is emerging as an I.T. city representing the

modern outlook of the State. The State Govt is giving special attention for its development.

Punjab Information & Communication Technology Corpration Limited (Punjab Infotech) has

developed Mohali as a hub of Electronics and Information Technology Industry. Various

prestigious National and International Companies like Quark city, Dell, Reliance, Tata Group,

Semi-Conductor Complex Limited, Godrej-GE, PUNCOM, HCL Infosystems and HFCLhave

their presence in SAS Nagar. Punjab Infotech has engaged International Consultant Earnest

& Young to prepare ‘Strategy and Action Plan for promotion of IT/TES Industry in Punjab’. In

addition, Punjab Infotech is working on a multi pronged approach with focus on Infrastructure

Development, Human Resource Development through IT Education and acting as bridge

between academic and industry and investor relation to achieve the objective.There has been

tremendous growth in software export from Punjab region recording an increase from Rs.

420.15 crores in 2005-06 to Rs. 622 crores in 2007-08 and Rs. 725 crores in 2008-09 rising it to

Rs.729 crore in 2009-2010 and estimated figure of Rs 1400 crore in year 2010-11.

River Pollution

Government is making special efforts to maintain ecological balance of the State. A

special project has been launched to make the rivers pollution free which is being monitored by

Hon’ble Chief Minister of Punjab himself. Under this plan there is a target to make the three

rivers Satluj , Beas and Ghaggar polluton free . To create environmental awareness in new

generation many steps are being taken. In 2010 Punjab State Council for Science and Technology

initiated National Green Corpus programme in the State and 5000 schools for environment

pollution training center were covered. Air pollution control instruments were available in all

489 Large and Medium Air Polluting industries of the State and in case of small scale

industries 9585 were having these instruments and only 74 units were yet to install such

instruments. Similarly in 496 large and medium Water Polluting Industries, no unit is left to

install water pollution control instrument. Out of 3599 small scale Water Polluting industries

only 41 units were left to install water pollution control instruments. In order to control the

industrial pollution ,Punjab Pollution Control Board has classified units in different categories.

In the year 2010-11 Industries more prone to water pollution , 12971 were classified as

Red out of all type of Industries, 19 as Orange and 83 as Green out of Large & Medium Scale

of Industries. Industries more prone to Air pollution , 12877 were classified as Red out of all

type of Industries, 25 as Orange and 83 as Green out of Large & Medium Scale of Industries.

Education

Government is taking special measures for the upliftment of Education level of the

masses of the State. Many schemes under Sarva Shiksha Abhiyan are being implemented in

order to reduce the Rural-Urban gap among children. These schemes are (1) Education

Gurantee scheme now known as Alternative Innovative Education/Special Training Scheme

(2) Kasturba Gandhi Balika Vidyalaya (3) National Programme for Education of Girls at

Elementary Level (4) Mid-Day Meal Scheme. These schemes/activities undertaken during

2010-11 & 2011-12 (till September 2011) alongwith status of funds approved & spent are given

as follows. An amount of Rs. 720.63 crores has been released for these schemes during

2010-11 and total 20.20 lacs children have benefitted from these schemes. Total 94559 Out of

School Children (OoSC) were covered under AIE during the year 2011-12 ( Up to 30 September,

2011) Rs. 374.76 crores were released & 20.53 lac children benefitted from these schemes.

Child Development

Under ‘Bebe Nanaki Ladli Beti Kalyan Scheme’ a sum of Rs. 20000/ is invested with

LIC on the birth of every girl child in families having annual income upto Rs. 30000/-. The girl

child would receive cash assistance at various stages of her schooling. Under Mata Kaushalaya

Scheme, an incentive of Rs. 1000/- is given to mothers for deliveries in governnment hospitals.

The Centrally Sponsored scheme , ‘Integrated Child Protection Scheme’ for the protection of

rights of children shall be implemented with an outlay of Rs. 21 crore during 2012-13. The

outlay for above schemes and other women oriented schemes like Shagun Scheme, Widow

Pension Scheme, Attendance Scholarship to Primary Girl Students, Free Education to Girls (9th

to 12th class) etc. coupled with women component under various schemes amounts to

Rs. 1818 crore in the Annual Plan 2012-13.

A sum of Rs. 140 crore has been earmarked under Integrated Child Development

Services in the Annual Plan 2012-13 to provide supplementary nutrition to over 15 lac children

and pregnant mothers. Besides, Rs. 19 crore have been kept under Rajiv Gandhi ‘Sabla’ and

‘Kishori Shakti Yojana’ schemes to provide nutrition to the adolescent girls and promote awareness

about health hygiene, family and child care etc. In addition, Rs. 12 crore is provided for the

 

construction of buildings of anganwadi centres in the State. There are 26656 anganwadi centres

in the State out of which 3278 are functioning from rented buildings and 22819 from community

buildings.

Atta Dal Scheme

To meet the minimum basic food related needs of economically weaker sections of the

society “Atta Dal” scheme launched by the State Government w.e.f. 15th August 2007 is in

operation. Approximately 15.32 lac families whose annual income is less than Rs.30,000 are

covered under this scheme These families have been issued special blue ration cards to get

benefit of Atta-Dal Scheme. The identified families are being distributed 5 kg.wheat per member

per month to a maximum limit of 25 kg.per family@ Rs.4.00 per kg. Simultaneously Dal is

being distributed 1/2 kg. per member to a maximum limit of 2.5 kg.to a family @ of Rs.20.00

per kg. In the 2010-11, 301466 MT of wheat and 23707 MT of Dall have been distributed to the

beneficiaries under this scheme. During the year 2011-12 ( upto March ,2012) 312037 MT of

Wheat and 27874 MT of Dal has been distributed to the beneficiaries.

Strengthening Statistical System

For more requisite policy decisions and futuristic research updated accurate & timely

supply of data is most important. Following the recommendations, made in Report of NSC

headed by Dr. Rangarajan Commission in 2001 constituted by Government of India the State

Govt. has put great emphasis on strenghening the Statistical infrastructure in the State. NSC

has identified critically deficiencies in the statistical system and recommended measures for its

systematic revamping. Ministry of Statistics and Programme Implementation (MOSPI), Govt.

of India has launched a Central sponsored scheme, “India Statistical Strengthening Project

(ISSP)” during the 11th Five Year Plan(2007-12) which will be continued during 12th Five Year

Plan. The objective of this project is to strengthen the statistical capacity of all States and UTs

especially with regard to the collection, compilation and dissemination of statistics. Under this

project ,the State Statistical System will be made capable of producing minimum required

National level data on 20-Core Statistical Activities.

Government of Punjab is participating in this project for which the state has

signed the letter of Participation (LoP) with Government of India. In pursuance of LOP and

guidlines of ISSP project, a State Level Steering Committee (SLSC) has been constituted

under the Chairmanship of Chief Secretary, Government of Punjab for this Project. Economic

& Statistical Organisation (ESO), Punjab has been notified as Nodal Agency for this Project. A

State Strategic Statistical Plan (SSSP) has been prepared under this project by ESO, Punjab,

following the process of intensive interaction with all major stakeholders i.e. line departments,

 

Universities & Research Institutions, MOSPI, GOI and other users. On the basis of SSSP,

Govt. of India will provide funds to State for carrying out necessary reforms to improve State

Statistical System. SSSP prepared by ESO, Punjab has been already approved by SLSC and

sent to MOSPI, GOI for further necessary action.

Punjab Governance Reforms

Punjab Governance Reforms Commission (PGRC) was earlier setup in May 2009

which completed its term in Sept, 2011. Right to Service Act was enacted on the recommendation

of PGRC I which has been widely aclaimed by the people of the state. keeping it in view

Punjab Government has again set up Governance and Administrative Reforms Commisssion

II to make Governance citizen-friendly. The main purpose of this is to check corruption and

harrassment and reach out benefits of welfare schemes to poors section of the society without

leakages and delays. The mandate of the Commission would be to make recommendations and

coordinate implementation of the second Generation of Reforms including policy recommendations

in Education, Health, Public Health, Social Security, Environment, Urban Development,

Co-operatives, etc. The commission shall also monitor and evaluate the implementation of First

Generation Reforms like Right to Service Act and suggest midterm correction.

The commission consists of six members including its Chairperson it will be further

assisted by various task groups which will to make recommendations and monitor their

implementation. To make its functioning harmonious with the Government departments, the

departmant Secretaries will act as Member Secretaries of the respective task groups. Various

task groups have been formed on crucial areas such as Health,simplification of the Norms and

Laws, Police Reforms,Problems of NRI’s,Civil and Criminal Justice System of Delivery and

Monitoring and Evaluation of First Generation Reforms. CONTD…