ISSN-0971-8400

May 2021 a development monthly ` 22

Lead ARTICLE Focus

NITI Aayog: Redefining Federalism Growth Story of Gujarat
Rajiv Kumar Vijay Rupani

SPECIAL ARTICLE Maharashtra : A Journey of

One Nation-One Election Over Sixty Years
K F Wilfred
Development Roadmap

Record GST Revenue Collection

“Chanakya’s words summarise the whole GST process – ‘even if something is very difficult
to be achieved, one can obtain it with penance and hard work’. If we take into consideration
the 29 states, the 7 Union Territories, the 7 taxes of the Centre and the 8 taxes of the states,
and several different taxes for different commodities, the number of taxes sum up to a
figure of 500! Today all those taxes will be shred off to have ONE NATION, ONE TAX
right from Ganganagar to Itanagar and from Leh to Lakshadweep.”
- Narendra Modi,
Prime Minister of India,
Dedicating GST to the Nation - July 01, 2017; Central Hall, Parliament of India

T
he Goods and Services Tax (GST) is a posts for inter-State movement of goods. Besides altering
consumption tax based on the credit invoice the industrial landscape of the country, GST is also a
method where only the value addition at each never-heard-before experiment in fiscal federalism.
stage is taxed, with a seamless flow of credit The legislations that made up GST were put in the
along the supply chain. It subsumed in its ambit a large public domain for feedback multiple times at each stage,
number of consumption taxes that previously existed empowering all the stakeholders to deliberate on what
in India, administered separately by the Centre and the kind of future they wanted to help design, in the truest
States, resulting in a greatly rationalised taxation structure. spirit of democracy. Primarily, GST is a tax levied on the
The umbrella system of GST inter alia integrated the supply of goods and services. In the case of an inter-state
tax administrations of the Federal and State Governments, supply, it is called integrated tax, levied by the Federal
making it a single interface for the taxpayers, creating an Government, administered jointly by the Centre and the
IT backbone that would match the details of inward & States and later apportioned between them. In the case
outward supplies at the level of line items, eliminating the of an intra-state supply, it is levied in two components–
cascading effect of taxes thereby making the country’s the federal tax, levied by the Federal Government and
exports more competitive in the global market and finally the state tax/Union Territory tax, levied by the respective
removing once and for all the age-old system of check administrations.

Continued on cover III...

 May 2021
Editor
Volume-65
No. 05

Let noble thoughts come to us from all sides

YOJANASince 1957 A DEVELOPMENT MONTHLY

Shuchita chaturvedi Rig Veda

consultant Editor
Naveen Joshi In This Issue
Production officer
K Ramalingam special article
LEAD ARTICLE
Cover Design NITI Aayog: Redefining One Nation-One Election
Gajanan Pralhadrao Dhope
Federalism K F Wilfred......................................28
Our Representatives Rajiv Kumar, Urvashi Prasad,
Ahmedabad: Janhavi Patel, Bengaluru: BK Kiranmai, Devashish Dhar..................................... 8
Bhubaneswar: Girish Chandra Dash, Chennai:
Sanjay Ghosh, Guwahati: Hiramani Das, Hyderabad:
Krishna Vandana P, Jalandhar: Gagandeep Kaur
Devgan, Kolkata: Rama Mandal, Mumbai: Umesh
Ujgare: Thiruvananthapuram: Roy Chacko.

Yojana (English): Room No. 647, Soochna Bhawan,

CGO Complex, Lodhi Road, New Delhi-110 003.
E-mail (Editorial): [email protected]
Fiscal Federalism in Covid-19
YOJANA, a development monthly published since
1957, is a theme-based journal providing in-depth
Dr Sajjan S Yadav, Suraj K Pradhan....... 32
analyses and views on socio-economic issues in Challenges of Skill
the broader framework of government policies.
Although published by the Ministry of Information Development
and Broadcasting, YOJANA is not restricted to
Focus Juthika Patankar, Dr Maneesh Mishra..... 37
expressing the official point of view.
Challenges in Federalism
Growth Story of Gujarat
DISCLAIMER: and the Way Forward
Vijay Rupani....................................... 13
l The views expressed in various articles are Sameera Saurabh.............................. 42
those of the authors and they do not necessarily Maharashtra : A Journey Progress in Human
reflect the views of the Government or the
organization/s they work for. of Over Sixty Years Development since
l Maps/flags used in the articles are only Yojana Team...................................... 24 Independence
indicative and they do not reflect the political
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Naresh Gupta.................................... 48
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M K Das.................................................19 Dr Karun Rawat................................. 54
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4 YOJANA May 2021

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Editorial YOJANA
United We Stand
“In a domestic Government, unity and co-operation are essential requisites.”
- Sardar Vallabhbhai Patel

A few decades ago, when we talked of Federal Structure, one generally

drew a uni-dimensional picture, in mind, with Centre on the top of all
the States. We rarely saw it as a synergy between the States, and a common
strategy to develop and grow together. Though, this is the new-age
approach of the Federal Structure based on cooperative and competitive
federalism defined and re-emphasised with the formation of NITI Aayog.
Essentially, federalism is an institutional mechanism to accommodate two
sets of polities—one at the regional level and the other at the national level.
Each government is autonomous in its sphere. The Indian Constitution
provides for a federation with a strong centre. It does not use the word
'federation' and has described India as a "Union of States", which implies
the 'cooperative' nature with certain unitary features. The Union, State, and
Concurrent lists demarcate the responsibilities and functions of the two.
The States of Gujarat and Maharashtra are celebrating their Statehood
day on May 1. Parliament passed ‘The Bombay Reorganisation Act,
1960’, which provided that “as from the appointed day (May 1, 1960),
there shall be formed a new State to be known as the State of Gujarat
comprising the following territories from the State of Bombay, namely…
and thereupon, the said territories shall cease to form part of the State of
Bombay, and the residuary State of Bombay shall be known as the State of
Maharashtra”. Both the States would complete 61 years of their existence
on May 1, 2021. In this issue, the articles on these States take the readers to their journey of growth and transformation
during the last six decades.
Federalism has to continuously maintain a difficult balance between the Centre and the States with decentralisation
of resources, strengthening them all by bringing the weaker leg forward, creating healthy competition among the States in
the form of Health, Sanitation Rankings, etc. The idea is to develop a culture and a set of values and virtues like mutual
trust, and a spirit of cooperation among the people and policies. It is about acknowledging and celebrating unity as well as
diversity, respecting the boundaries as well as transcending the boundaries.
The most common analogy given for such a structure is ‘the brain’ and ‘the body parts’. The way they work in tandem
with perfect synchronization is the spirit, mind, and soul of federalism as well. Each organ is dependent on the other for
smooth functioning and growth of the entire body.
National unity cannot be built by streamlining differences. Such forced unity only generates greater social strife and
alienation and tends finally to destroy unity. A responsive polity sensitive to diversities and the demands for autonomy can
alone be the basis of a cooperative federation.
The recent pandemic has taught us many lessons in this regard. All the boundaries and resources have culminated in
a collective fight with the virus. The States as well as the Centre have to get through this crisis together, and stronger in
seamless harmony, complementing and compensating each other with a constructive consensus. 

YOJANA May 2021 7

 ‘States-first’ approach
Lead Article

NITI Aayog: Redefining Federalism

Rajiv Kumar
Urvashi Prasad
Devashish Dhar

NITI Aayog has endeavoured to pursue its twin mandate of promoting cooperative and
competitive federalism through partnerships with States for designing and reviewing
development plans. It has a key role in helping India undertake reforms and implement
policy initiatives in a scalable and impactful manner through partnerships with States.

T
he enduring legacy of the State is defined by the law of life, and a man who always tries to maintain his
numerous factors including political capital dogmas in order to appear consistent drives himself into
and will, administration and policing as well a false position.” The Planning Commission operated
as hard and soft power. Of these, the State through the lens of Five-Year Plans, using financial
defines its role through the most important tool at its resources as the primary lever for guiding development.
disposal - formal institutions. They reflect the approach NITI Aayog, on the other hand, is driven primarily
of the State towards understanding and solving the through intellectual firepower as well as the mandate and
socio-economic development challenges of the time. capability of forging meaningful partnerships with State
One such institution which exemplified India’s approach Governments, civil society organisations, the private
to development in the post-independence era was the sector, and innovators for accelerating the pace of India’s
Planning Commission. In 2015, this mantle was passed development.
onto the NITI Aayog. However, the mandate and approach While the Planning Commission acted as a fund
of the two institutions, with the same overarching goal of disburser, NITI Aayog works as a thought partner with
developing India, could not be more different. all stakeholders, especially the States, which are the
This departure in approach is reflected in the Cabinet principal agents for fostering economic development in
Resolution constituting NITI Aayog which includes a the country. While the Planning Commission impinged
quote from Mahatma Gandhi - “Constant development is on the fiscal sovereignty of the States, they are now

Rajiv Kumar is the Vice Chairman, NITI Aayog. Email: [email protected]

Urvashi Prasad and Devashish Dhar are public policy specialists at NITI Aayog.

8 YOJANA May 2021

empowered to decide how best to use their funds, without being implemented by the States in partnership with the
being mandated to follow a top-down direction. The Niti North East council, within the overall framework, with
Aayog has replaced the Central Government's practice its five pillars, provided by the NITI Forum. Further,
of unilaterally designing the pan-Indian development NITI has designed some major initiatives for island
strategy-while working with State Governments to jointly development which are being implemented by relevant
prepare development blueprints that are suited to and take authorities under the overall guidance of the Ministry of
into account the special circumstances of each State. It is Home Affairs.
likely to be a superior approach in as large and diversified It is also envisaged that like the NITI Forum for
a country like India with its continental dimensions. the North East, other regional councils of contiguous
Notably, the Planning Commission adopted a ‘one- States could be formed in the coming months. This
size-fits-all’ approach towards the Indian States. NITI will allow the inclusion of common regional issues and
Aayog, on the other hand, is guided by a ‘States-first’ challenges in designing the development path for each
approach. Its founding principles include cooperative of the constituting States. The first step has been taken
federalism (a collaboration between the Central and State by forming the Himalayan States Regional Council and
Governments) and competitive federalism (spurring forming a coalition of all thirteen central universities in
healthy competition among States). It is noteworthy that these states. These universities are taking up research on
both pillars of the dual mandate are complementary and issues common to all the thirteen Himalayan states.
are being implemented in tandem for guiding the Centre NITI promotes competitive federalism principally
and States towards shared objectives, albeit through through pushing its sectoral indices which are put
customised approaches. Thus, instead out in the public domain. The
of a straitjacket approach, NITI indices on water, education, health,
The Planning Commission
Aayog has adopted a decentralised innovation, export preparedness,
and bottom-up strategy, to ensure that operated through the lens of and Sustainable Development Goals
Central and State Governments work Five-Year Plans, using financial (SDGs) have attracted significant
together as equal partners in Team resources as the primary lever positive attention. These indices are
India.        for guiding development. NITI based on a detailed and rigorous
NITI Aayog has endeavoured to Aayog, on the other hand, analysis of technical parameters. The
pursue its twin mandate of promoting is driven primarily through ‘Performance in Health Outcomes’
cooperative and competitive intellectual firepower as well as Index, for instance, captures the
federalism through partnerships with overall performance of States in health
States for designing and reviewing
the mandate and capability of along with annual improvements in
development plans. NITI has also forging meaningful partnerships health outcomes, governance, and
provided a platform for direct issue- with State Governments, civil processes. Similarly, the Composite
based interaction between State society organisations, the private Water Management Index details
Governments and Central Ministries sector, and innovators for how States have progressed on water-
thereby helping quick resolution of related issues over time, including
accelerating the pace of India’s recognising the high-performers as
outstanding issues. The NITI Forum
for North East has been constituted development. well as identifying areas for deeper
and tangible sectoral proposals are engagement and investment by all

YOJANA May 2021 9

 sector, the campaign against women, and child
malnutrition are some examples of areas where
NITI has made substantive policy inputs during
its six-year existence. 
NITI was involved with the drafting of
the National Medical Commission Bill and
the Bills for reforming the education system
pertaining to Indian Systems of Medicine
and Homeopathy. Both Houses of Parliament
have passed all three Bills. Paving the way
for building a world-class medical education
system in the country. NITI has also been
closely involved with the design and monitoring
of Ayushman Bharat, perhaps the largest
universal health initiative in the world. NITI
has played a similar key role in the POSHAN
Abhiyaan which the Government launched to
provide an appropriate governance structure
reflecting the many overlapping factors like
access to sanitation and health services that
affect the nutritional status of an individual
or household. NITI has also implemented the
SATH – ‘Sustainable Action for Transforming
States. The ‘School Education Quality Index’ aims to Human Capital’ program in 3 States, the best practices
institutionalise a focus on improving education outcomes from which are being replicated in other States as well.
(learning, access, equity) in India. The Index comprises NITI shared a road Map for Pradhan Mantri Krishi
a set of indicators that critically influence the overall Sinchayee Yojana with all States and Union Territories.
effectiveness and efficiency of the school education Several policy suggestions are contained in NITI’s
sector.  document ‘Strategy for New India @ 75’. The preparation
It has also introduced a competition element in our of this seven-year strategy, encapsulated in this document
ambitious ‘Aspirational Districts Program’ which aims to required extensive consultations with subject experts,
raise the human development indicators in these districts State and Central Government ministries/departments,
to the national averages by focusing on governance industry representatives, and civil society organisations.
improvement and achieving effective convergence among Overall, around 1,400 stakeholders, within and outside
Government agencies and organisations on the ground. the Government, were consulted and several iterations
These districts have shown significant improvement in were undertaken to ensure that the document reflected the
indicators pertaining to health and nutrition, education, whole-of-the-government approach.
agriculture, and water management, financial inclusion, One of NITI’s key tasks and important mandates is
skill development, and basic infrastructure which NITI to develop an output–outcome monitoring framework
Aayog is monitoring on a real-time basis. Besides, several and rigorously evaluate Central Government schemes
best practices in governance have and initiatives. The Development
emerged from these districts which are The Central Government’s Monitoring and Evaluation Office
now being scaled up and replicated at
the block level in some States.
practice of unilaterally designing (DMEO) undertakes this. It
completed the evaluation of 125
the pan-Indian development Centrally Sponsored Schemes to
NITI has made and is
continuously engaged in providing
strategy has been replaced determine their continuation from
fresh policy-related inputs for by the NITI Aayog working the 14th Finance Commission to the
implementation by relevant Central with State Governments to 15th Finance Commission period.
Government Ministries in partnership jointly prepare development DMEO also supports the Department
with State Government agencies. blueprints that are suited to and of Expenditure for preparing the
Universal Health, agriculture sector outcome budget for over 65 ministries/
take into account the special
modernisation, renewable energy, departments. DMEO reviews the
electric mobility, reforms of the mining
circumstances of each State. progress of infrastructure departments

10 YOJANA May 2021

of the Central Government for Tinkering Labs (ATLs) which feeds
periodic review by the Prime Minister. into start-ups fostered by the Atal
It is further refining its methodology In the years to come, India Incubation Centres (AICs). Over
and strengthening its human resource needs to make persistent efforts 7,100 ATLs have been sanctioned thus
base to improve the effectiveness wherein both the Central and far, covering 90% of districts in India,
of outcome-based performance State Governments come including 110 Aspirational Districts. 
evaluation. together to solve the country’s In the years to come, India needs
To improve governance at all most complex issues and to make similar persistent efforts
levels of government, DMEO is unleash growth. To meet the wherein both the Central and State
collaborating with State Governments Governments work jointly to solve
rising aspirations of our young
for establishing similar capacity. the country’s most complex issues and
Additionally, NITI has been closely population, India needs to unleash growth. To meet the rising
monitoring the progress of SDGs achieve and sustain a high rate aspirations of our young population,
across all States and engaging with of GDP growth for the next India needs to achieve and sustain
them to set up real-time technology- three decades. In pursuit of a high rate of GDP growth for the
based monitoring capacities which this goal, continued structural next three decades. In pursuit of this
will help mainstream SDGs in the goal, continued structural reforms are
development process in every State.
reforms are crucial for laying
crucial for laying new foundations
new foundations that can ensure to ensure sustained and inclusive
NITI Aayog is also focused on
nurturing an innovation ecosystem
sustained and inclusive growth. growth. NITI Aayog has a key role to
across the country. The Atal play in helping India undertake these
Innovation Mission (AIM) is a flagship initiative of reforms and implement policy initiatives in a scalable and
NITI for promoting innovation and entrepreneurship impactful manner through partnerships with States.
across the length and breadth of the country, based on To achieve the goal of rapid, sustained, and clean
a detailed study and deliberations on the innovation and growth that generates employment for all, investing in the
entrepreneurial needs of India in the years ahead. AIM right physical and social infrastructure, is a prerequisite.
has adopted a holistic approach towards establishing an NITI Aayog, with its intellectual breadth and depth, is
integrated ecosystem of innovation and entrepreneurship well placed to help India achieve these goals. Over the
at school, university, industry levels, linking NGOs, last six years the Central Government has undertaken
venture capital, and private industries. AIM promotes many bold reforms. The Central Government. It is now
an innovative mindset in school students through Atal for States to implement these reforms in letter and spirit
and help the country reach the next frontier
of growth.
For instance, the Central Government
has passed important legislation in the
agriculture sector. The onus is now on the
States to implement this reform and pave the
way for significantly enhancing productivity
and doubling farmers’ income. In this
process, States can count on NITI Aayog as
a partner for customising and implementing
these pathbreaking reforms, including
reducing compliance burden, weeding out
archaic legislations, and unleashing the full
potential of private sector participation.
Ultimately, the onus of putting India on a
high-growth trajectory and ensuring that the
benefits of growth are equitably distributed
rests with both the Centre and States. NITI
Aayog will continue to work towards
strengthening cooperative federalism in the
country, thereby enabling the Centre and
States to work in tandem as equal partners
for ensuring India’s success. 

YOJANA May 2021 11

 Foundation Day to AAtmanirbharta
FOCUS

Growth Story of Gujarat

Vijay Rupani

I
t has been over 60 years since the State of Gujarat was established on
May 1, 1960. Gujarat has created its prominent identity by working
effectively in good governance, people-oriented administration,
holistic development, peace-security, and public welfare, which
When Gujarat was enhanced the pride of six and a half crore Gujaratis in India and the world.
separated from After promoting ‘Ease of Doing Business, Gujarat is now focusing on ‘Ease of
Living.’ The State has become the ‘Role Model State’ and ‘Growth Engine’ of
Bruhad Mumbai
India. ‘�ુજરાત’ (Gujarat) has become synonymous with development. 
and came into
Gujarat’s identity resides in its geography, art, cultural heritage, education,
existence as an literature, politics, pilgrimages, saints-savants, great men, traditions, customs,
individual State, food, festivals, hospitality, tourism, language-dialect, ancient and historical
many challenges places, peace and security, social security, law and order, industries, employment,
confronted us. At agriculture, animal husbandry, modern infrastructure, etc. Hardworking,
visionary, and fearless leaders like Mahatma Gandhi, Sardar Patel, and Narendra
that time, Gujarat Modi have become Gujarat’s hallmarks. 
did not have enough
Dr. Jivraj Mehta was the first Chief Minister of the State. After that,
cultivable lands, Balwantrai Mehta, Hitendrabhai Desai, Ghanshyambhai Oza, Chimanbhai
animal husbandry Patel, Babubhai J. Patel, Madhavsinh Solanki, Amarsinh Chaudhary, Chhabildas
schemes, and Mehta, Sureshchandra Mehta, Shankarsing Vaghela, Dilipbhai Parikh,
Keshubhai Patel, and Narendra Modi had worked to take the development
water or electricity
journey of Gujarat ahead.
facilities for
Gujarat’s illustrious son Prime Minister of India, Shri Narendra Modi took
irrigation. Many oath as the youngest Chief Minister of Gujarat in 2001 and served Gujarat as
facilities were Chief Minister for 14 consecutive years.
required to be The country-wide popularity of Shri Modi, his hard work, and recognition
developed, like a as Gujarat’s ‘Vikas Purush’ gained a clear majority for National Democratic
good road network, Alliance (NDA) in the 2014 Lok Sabha elections. Subsequently, he took charge
as the Prime Minister of India on May 26, 2014.
the necessary
infrastructure Shri Modi implemented various schemes in Gujarat. Prominent among
these are the launch of the tallest statue, i.e. ‘Statue of Unity at Kevadiya,
for smooth Kranti Tirth Mandvi, Krushi Mahotsav, Garib Kalyan Mela, Chintan Shibir,
administration, Jyotigram Yojana, Charanka Solar Park, Mahatma Mandir – Gandhinagar,
government Kanya Kelavni – Shala Praveshotsav, Gunotsav, Uttarardh Mahotsav at
offices, technology, Modhera Sun Temple, Vibrant Gujarat Investment Summit, Sabarmati
Riverfront at Ahmedabad, Van Mahotsav – Creation of Cultural forests,
industries, Vanbandhu Kalyan Yojana for tribals, and Sagarkhedu Sarvangi Kalyan
educational Yojana for Sailors.
institutions, and Many universities were established during his tenure. These include
healthcare facilities. Pandit Deendayal Petroleum University, Gujarat National Law University,
National Forensic Sciences University, Raksha Shakti University, Lakuliesh
Yoga University, Gujarat Technological University, i-Create, Indian Institute
The author is the Chief Minister of Gujarat. Email: [email protected]

YOJANA May 2021 13

of Teacher Education University, Children’s University, In 2019, the government announced assistance of
Shri Govind Guru University, etc. Rs. 3795 crore to the farmers for damaged crops due to
Smt. Anandiben Patel succeeded Shri Narendra Modi unseasonal rain, and in 2020, a relief package of Rs. 3700
as the first female Chief Minister of Gujarat. She gave crore was announced which benefited 56 lakh farmers.
priority to women empowerment by providing a Gender Recently, Sagarkhedu Sarvangi Kalyan Yojana-2 worth
Budget. Smt. Patel started various schemes to ensure that Rs. 50000 crores was announced for fishermen and sailors’
the children of Aanganwadis get adequate nutrition. A welfare. 
State-wide  ‘Maa Annapoorna Yojana’ was launched More  than 400 mobile veterinary clinics and Toll-
during her tenure.  free number 1962 for 24x7 veterinary facilities have been
On August 7, 2016, I took charge of the Chief Minister made functional to help animals. Assistance of more than
of Gujarat to serve the people. As the Chief Minister, I am Rs. 246 crore to 514 Panjarapols and Gaushalas and
committed to making Gujarat ‘Uttam thi Sarvottam’ (From assistance of more than Rs. 185 crore for 6 lakh animals in
Better to the Best) with the cooperation of six and a half drought-stricken areas has been provided. 
crore Gujaratis. My government has served the people by The State government strictly implemented
taking over 1700 public welfare decisions in the last five Panchayat (Extension to the Scheduled Areas) - PESA
years.  Act from the year 2017 for the upliftment of tribal
‘Saat Pagala Khedut Kalyan na Yojana’ aims to people, and more than 90 lakh tribals obtained land
make the farmers and cattle breeders of Gujarat self- and forest produce rights. Tribals received more than
reliant. Other schemes include the purchase of farm 13 lakh acres of forest land under  the Forest Rights
produce from the farmers at the support price of over Rs. Act. In these areas, 41  Eklavya Model Residential
17000- crores in the last four years, implementing India’s Schools have been constructed to provide education
first  Kisaan Suryoday Yojana  worth Rs. 4500 crores to the tribal children. Accommodation, meals, and
to provide electricity in the day time to the farmers for education have been made available to more than
irrigation. It has benefitted farmers of 4000 villages in the 1,35,000 students in around 765 Ashram Schools,
first phase. Other schemes include Zero percent crop loan Aadarsh Residential Schools, and Eklavya Schools. A
to more than 15 lakh farmers and financial assistance of Tribal National Museum highlighting the tribal culture
Rs. 6000 to the farmer families under  Pradhanmantri will be set up soon on 70 acres of land at the cost of
Kisan Samman Nidhi Yojana.  Rs.100 crore.

14 YOJANA May 2021

 Food grain worth Rs. 2000 crore was distributed free of Board have been set up to promote Yoga and Sanskrit
cost to 68.80 lakh  Ration Card Holders under the National language. Gujarat is the first State to establish  the State
Food Security Act and 61 lakh Card Holders under Above Yoga Board. From only nine universities in 2001, Gujarat
Poverty Line-1 of the State in April and May 2020 during boasts 83 universities in 2021. 
the Corona pandemic. In the last year, 7500 acres of land Under  Mukhyamantri Mahila Utkarsh Yojana, a
has been given to the deprived and low-income families in group of 1 lakh women will be formed, which combines
the form of Santhni. Besides, 27,330 hectares of surplus 50,000 women from rural and urban areas each. 10 lakh
land have been allotted to 11,692 beneficiaries under Farm women will benefit from an interest-free loan from the State
Land Ceiling Act. Government. A provision of Rs. 1000 crore has been made
As against a target to provide houses to 7,64,000 families for the loan purpose. Under Vahali Dikari Yojana, families
in the urban area by 2022 under  Pradhanmantri Awas with an annual income of Rs. 2 lakh will benefit from
Yojana, more than 5 lakh houses have been constructed. Rs. 4000 during admission in 1st standard and Rs. 6000
Essential documents like Certificate of Income, Caste during admission in 9th standard for the first two daughters.
certificate, 7/12 and 8-A have been made available to the At the age of 18, assistance of Rs. 1 lakh will be provided
citizens at their doorstep through  Seva Setu Program. during the marriage. So far, more than 6000 families have
Around 52 services and certificates have been made available benefited from the scheme. Under Ganga Swarupa Arthik
online under Digital Seva Setu, which was launched with Sahay Yojana, the monthly assistance provided to widows
the mantra of Digital India-Gujarat and ‘Jya Manvi tya has been increased to Rs. 1250, benefitting more than
Suvidha’ (to provide facilities where there are people).  10 lakh women so far. 

Mukhyamantri Apprenticeship Scheme  has Under  Ma Amrutam-Ma Vatsalya Yojana

been launched with the innovative idea of Learning beneficiaries now receive a health shield of Rs. 5 lakh
with Earning, under which students get a stipend from instead of Rs. 3 lakh. More than 3 crore 50 lakh beneficiaries
Rs. 3000 to Rs. 4500 per month along with their study. belonging to 70 lakh families have been enrolled in the
In the last two years, more than 2,30,000 youth have scheme. During the ongoing Covid pandemic, more than
benefited. More than 2 lakh young men and women have 1700 Dhanvantari Raths are in operation at more than 3300
been appointed in Government services in Gujarat in the places. More than 2 crore 50 lakh people have received
last four years. Assistance in the fees is also provided OPD facility at their doorstep so far. The Government of
to the youth of Gujarat for training and preparation for India and the World Health Organization have appreciated
competitive examinations like UPSC, GPSC, Gujarat the work done through Dhanvantari Rath. Prioritizing
Secondary Service Board, etc. Therefore, Gujarat has the the health of the people, 2170 medical seats have been
lowest unemployment rate in India, i.e., 3.5%. increased in the last five years. New medical colleges have
been opened in the last five years. With advanced medical
Gujarat became the first State  to implement 10% facilities,  All India Institute of Medical Sciences at
reservation for the non-reserved population as per the Rajkot is being developed on 201 acre land at the cost of
Central Government guidelines. Loan facility up to Rs. 1195 crore with the facility of 750 beds. 
Rs. 10 lakh at the interest rate of 4% was provided to the
non-reserved students for their college studies and up to the A lifetime imprisonment provision has been made
year 2020. More than 70,000 families have benefited from under the Gujarat Control of Terrorism and Organised
this scheme. A loan up to Rs. 15 lakh at the interest rate of Crime Act  from 2019 to curb terrorist activities. The
4% is provided for studying abroad.  State Government has enforced Gujarat Land Grabbing
Prohibition Act 2020 to curb land grabbing activities. 
As a part of  Digital Gujarat, modern facilities
were provided in 16,000 classrooms A  Cyber Ashwasta Project  has
through  Gyankunj Project. 10,000 been started, and the first  Cyber
The State government strictly Crime Prevention Unit of India has
tablets at the token price of Rs. 1000
were distributed to the students. After
implemented Panchayat been created in Gujarat. Under Project
passing the 12 Standard, more than 9.50
th (Extension to the Scheduled Vishwas, a CCTV network of 7000
lakh students have been gifted Modern Areas) - PESA Act from the cameras has been brought up in 41
Tablets  for higher technical education year 2017 for the upliftment of cities. Citizens of 33 districts are getting
in the college. Under SHODH Yojana, various securities against cybercrime
tribal people, and more than 90 through  Netram Command Control
an assistance of Rs. 15,000 per month
for two years is provided to the students lakh tribals obtained land and Center.
for research. forest produce rights. Tribals Gujarat is committed to providing
Kala Mahakumbh was initiated received more than 13 lakh acres water to every home with the given
for the first time in the State to provide a of forest land under the Forest target under the Nal Se Jal program. In
stage to the artists and highlight art and Rights Act. the last two years, water has been made
culture. State Yoga Board and Sanskrit available to 2 crore 31 lakh homes.

YOJANA May 2021 15

 In 2019-20, Gujarat was
considered the Best Destination
for Foreign Direct Investment in
India. Foreign Direct Investment
worth more than 43,000 crores has
been received in Gujarat during
the financial year 2019-20. It has
increased 3.5 times in comparison
with 2018-19. 
With the  ‘Production first,
Permission later’ policy in the
State, Micro, Small & Medium
Enterprises industries have
considerably benefitted. Industries
are exempted from obtaining a No
Objection Certificate and approvals
for the first three years. A special
commission rate has been created
for more than 30 lakh MSME units,
100% target has been achieved in five districts under Nal Se which has resulted in employment opportunities for more
Jal. A water grid has been made in Gujarat’s urban areas to than 1 crore 25 lakh youth. 
make polluted water useful through the Reuse of Treated Auction of mines and minerals is done online, and
Waste Water Policy. Gujarat is second after Tamil Nadu to transparency has been brought up with Trinetra Drone
set up Desalination Plant to make seawater potable.  Surveillance Technology.  The State Government has
SAUNI Yojana  was made operational to make the made an income of more than Rs. 1633 lakh. 13 Industrial
Saurashtra region green and provide potable water of the Parks and three logistics parks will be constructed on more
Narmada River to 80 lakh people. With SAUNI Yojana, than 70 hectares of land. 
an irrigation facility has been provided to 1,66,000 hectare During the ongoing Covid pandemic, the Gujarat
area covered under 22 reservoirs of Saurashtra in the first government released the Aatmanirbhar Gujarat
phase.  Package  worth Rs. 14000 crore. The package provides a
Under Sujalam Sufalam Jal Abhiyan, 41,488 works loan of Rs. 1 lakh at the interest of 2% and a loan of more
related to water conservation have been done, increasing than 1 lakh (upto 2.5 lakh) at the interest of 4% to small
42064 lakh cubic feet water storage capacity. It has vendors, shop owners, workers, etc. 
provided employment which amounts to a total of 130.47 The first Ro Ro ferry service began from Ghogha in
lakh human days.  Bhavnagar to Dahej in South Gujarat. It has reduced the
Under  Mukhyamantri Gram Sadak Yojana, works road distance from 360 km to 31 km. To reduce pollution
of 10399 roads of 27064 km length and conserve the environment, a subsidy
have been completed at the cost of of Rs. 48,000 has been provided to
Rs. 6835 crore. 17843 villages and
Gujarat became the first State purchase e-rickshaw. The assistance of
16402 suburbs have been connected to implement 10% reservation Rs. 12000 is offered to students from 9th
with concrete roads.  for the non-reserved population Standard to colleges for buying battery-
operated two-wheelers. 
With dedicated policies, Gujarat as per the Central Government
has become a policy-driven state. guidelines. Loan facility up to Gujarat is on the top of the list
New policies are introduced in Rs. 10 lakh at the interest rate in the installation of Solar Rooftops.
sectors such as Ports, Tourism, More than 1.27 lakh solar rooftops
Solar, Aerospace and Defence,
of 4% was provided to the have been installed, which generate
Information Technology, Industry, non-reserved students for their 886 megawatts of power. Under solar
Startup, Agriculture and Commerce, college studies and up to the power policy, there has been an increase
Garment and Apparel, Electronics, year 2020. More than 70,000- of 1925 megawatts capacity in the
Heritage Tourism, Wind Energy, families have benefited from last four years. The installed capacity
General Incentive, Production, Bio- of the Solar Rooftop Project is 611.46
Technology. It also includes New this scheme. A loan up to Rs. 15 megawatts which is the highest in the
Solar and Hybrid Policy, Bagayat lakh at the interest rate of 4% is country. Among the total installed
Mission (to provide land on lease for provided for studying abroad. capacity of Gujarat, 37% contribution
horticultural and medicinal plants).   comes from renewable energy. World’s

16 YOJANA May 2021

largest hybrid Renewable Energy In-house CM DASHBOARD has
Park,  coming up at Kachchh, has been made operational in Gandhinagar to
30,000 megawatts capacity. The first Ro Ro ferry service review administration works live. With
began from Ghogha in more than 3000 performance indicators,
Out of more than 2300 CNG
stations in India, more than 926 are Bhavnagar to Dahej in South the Chief Minister can observe district-
active in Gujarat. In the coming Gujarat. It has reduced the level public interest activities through
days, the Government of Gujarat has digital platforms. The Chief Minister
road distance from 360 km to interacts with people of deprived and
planned to set up more than 900 CNG 31 km. To reduce pollution and
stations.  The world’s first CNG minority communities at his residence
Terminal is being set up at Bhavnagar
conserve the environment, a in Gandhinagar in a program called
in Gujarat, operating 6 million tonne subsidy of Rs. 48,000 has been ‘Mukhyamantri Sathe Moklaa Manne.’
cargo annually.  provided to purchase e-rickshaw. After listening to their grievances, he
takes decisions and actions to meet their
The authority to give Non- The assistance of Rs. 12000 is needs and demands. 
Agriculture (NA) approval was taken offered to students from 9th
from the district panchayat and given The first Budget of Gujarat for the
Standard to colleges for buying years 1960-61 was introduced in the
to the collector. With maps and layout
battery-operated two-wheelers. Legislative Assembly on 22/09/1960.
plans available online, the process has
become more easy and fast. More than The total budget amount was Rs.
35,000 applications have come through an online portal.  114,92,86,000. The total budget amount of the 77th Budget of
Gujarat in the current financial year 2021-22 is Rs. 2,27,029
In the last three years, 311 town planning (TP) schemes Crore, which showcases the economic prosperity of Gujarat. 
and 40 development plans (DP) schemes have been
approved for cities’ holistic development. It has provided Due to the State government’s tireless efforts, Gujarat,
citizens with more facilities. For the first time in the State, which contributes a significant eight per cent to the
Online Development Permission System (ODPS) has been country’s GDP, received a substantial amount of Foreign
introduced. Under ‘Shravan Tirth Yojana,’ elders with more Direct Investments (FDI) of Rs. 1,19,000 crore from April
than 60 years of age are taken to Yatradham Darshan in 2020 to September 2020. This amount of FDI is 53% of
Gujarat. the total capital investments made in the country during
this period. Gujarat accounts for more than 23% of the
Nadabet Seema Darshan in Banaskantha of Gujarat country’s total exports, and the State ranked first in the
has proved to be the best destination for border tourism ‘Export Preparedness Index 2020’ released by NITI Aayog.
after the Wagah-Attari border in Punjab. More than 6 lakh Gujarat has also been getting the first position in startup
tourists enjoyed Seema Darshan in 2020. Girnar Ropeway rankings and logistics rankings for two consecutive years.
helps complete a climb of 6-7 hours within 6-7 minutes. 
The first bullet train service in the country between
Apart from Gir and Devalia Safari Park, Ambardi Ahmedabad and Mumbai will commence in the time to
Safari Park has been opened in Amreli, which hosts come. India’s first smart city is being set up at Dholera. It
Asiatic Lions - India’s pride. Located 12 km from Dwarka, has been included in the list of six smart cities by the Central
Shivrajpur Beach is being developed as a world-class tourist Government. World-class Sardar Vallabhbhai Patel Sports
destination. It is among eight beaches of India, which has Enclave is being set up at Ahmedabad, which can host Asiad
been given a tag of Blue Flag Beach. The only Dinosaur and Olympic. Recently, the world’s largest cricket stadium
Fossil Park of India has been constructed in Rayioli village ‘Narendra Modi Cricket Stadium’, has been inaugurated,
of Balasinor. It is India’s largest and the world’s third- which has a capacity of 1.25 lakh spectators. UNESCO has
largest dinosaur fossil site.  declared Champaner and Rani Ki Vav, Patan as heritage
To connect the locations related to Mahatma Gandhi’s sites, and Ahmedabad has been included as the first heritage
life, a  Gandhi Tourist Circuit is being developed at the city. Gujarat’s Surat, Rajkot, Ahmedabad, and Vadodara
cost of Rs. 93 crore. It includes Dandi Kutir - Gandhinagar, have been added to the world’s 25 top developed cities. 
Kirti Mandir - Porbandar, Mahatma Gandhi Museum According to the Forest Survey of India report of 2019,
(Alfred High School) - Rajkot and National Salt Satyagraha the tree cover area has increased by 10,000 hectares in the
Memorial (Dandi Smarak) - Navsari. last two years, and the green area, apart from the forest, has
The first Sea Plane service started between Sabarmati seen an increase of 3,96,000 hectares in the last two years. 
Riverfront Ahmedabad to 182-meter tall Statue of Unity at I can proudly say that many Gujaratis have contributed
Kevadia. Prime Minister Shri Narendra Modi inaugurated to the growth of the State from its foundation. We are
the service. In 2020, more than 43 lakh tourists visited SoU reaping the benefits of their hard work. We have to take
and set up a new record. The number of visitors. at SoU is this development journey forward together, and we have to
more than footfalls at the Statue of Liberty in the US, which make Gujarat ‘Uttam thi Sarvottam’ for the upliftment and
is a matter of pride for all of us.  development of every citizen of Gujarat.  

YOJANA May 2021 17

 CASE STUDY: GUJARAT

Transformation of a State
M K Das

Gujarat is well known as the manufacturing powerhouse of the country. The State’s
transformational model today is one of the key contributors towards ‘Aatmanirbhar
Bharat’. With its robust infrastructure (power, road, gas, ports, railways), strategic location,
and business-friendly policies, Gujarat is one of India's preferred States for all domestic
and foreign direct investments.

T
he State of Gujarat received the highest FDI and the total FDI inflow in Gujarat from April 2011 to
worth INR 1.58 lakh crore (USD 21.24 Bn) December 2020 has been worth USD 40.7 billion.
during Apr-Dec 2020 and during the first Even in terms of domestic investment, which is
six months of 2020-21, it has registered reflected by the number of Industrial Entrepreneur
a growth of 550% over the previous year. In FY 2019- Memorandums (IEMs), the State stands first in terms of
20, Gujarat saw the highest national increment of 240% the number of IEMs filed and actual investment reported
in FDI inflows from the previous year. It has constantly for 2019. The State accounted for 51% share (1st Rank)
progressed into a developed economy by focusing on of IEMs filed in India in terms of value with a proposed
proactive governance, transparent and investor-friendly investment of USD 49 Bn in 2019. Gujarat has received
relations, robust infrastructure, and conducive policies. FDI in diversified sectors including telecommunications,
These factors have immensely supported the grounding power, metallurgical industries, petroleum & natural gas,
of FDI in the state. The total FDI inflow in Gujarat from services sector, automobile, cement & gypsum products
April 2000 to March 2011 has been worth USD 7.2 billion amongst others. Close to 100 Fortune 500 companies,

The author is IAS, Additional Chief Secretary (Industries and Mines), I/C, Government of Gujarat. Email: [email protected]

YOJANA May 2021 19

multinational corporations, large companies, and over 3.5 The Government of Gujarat undertook bold
million MSMEs have a presence in Gujarat. initiatives during the Covid-19 pandemic to address
Gujarat is also poised to become the “Metal Capital of economic challenges and there has been a strong recovery
India”. It offers industries to localise supply chains and de- in businesses with an increased investor and consumer
risk their operations, and strengthen the local ecosystem sentiment. The pandemic has accelerated the growth of
that would help create cost-effective and sustainable both large and small businesses. Post lockdown, the power
solutions. Gujarat and its transformational model today consumption and gas consumption have increased by 10%
is one of the key contributors towards ‘Aatmanirbhar and 25% respectively over the previous year signaling a
strong recovery in the businesses. Additionally, initiatives
Bharat’.
such as exemption from the labor laws have also
Gujarat has been a front runner in implementing contributed to restoring normalcy. Besides this, a special
several reforms for improving and easing the environment committee and a control room were set up by Gujarat
for doing business. The State Government to handhold and facilitate
Government in coordination with the Gujarat is also poised to the industries during unprecedented
Union Government has made it possible
become the “Metal Capital of times.
to minimise the compliances burden Infrastructure has always been one
on businesses. As a result, there has India”. It offers industries to
localise supply chains and of Gujarat’s strengths in terms of road
been a boost in the economic growth connectivity, railway networks, ports,
of the State. The State also witnessed de-risk their operations, and airports, power supply, utility grids,
a massive surge in investments due also strengthen the local etc. To further augment the growth, the
to the historic move by the Union ecosystem that would help State has been successful in creating
Government to lower the corporate tax create cost-effective and an enabling environment for investors.
rate. In order to achieve self-reliance
sustainable solutions. Gujarat The State has Digitised Land Bank
and boost manufacturing, the Union (33,000 hectares) to facilitate and let
Government initiated various reforms
and its transformational
investors choose the best possible
such as Ease-of-doing-Business ranking model today is one of the location for their investment in
of states and ease of compliances which key contributors towards industrial areas of the State. Further,
has acted as a catalyst to the vision of ‘Aatmanirbhar Bharat’. to achieve self-reliance and boost
‘Aatmanirbhar Bharat’ the manufacturing sector, the State

20 YOJANA May 2021

announced the Gujarat Solar Power 3. Bhadbhut Barrage Project over
Policy 2021, which aims to reduce The State has Digitised Land Narmada River
the power costs of industrial units by 4. Diamond Research and
around 50%.
Bank (33,000 hectares) to
facilitate and let investors Mercantile (DREAM) City at Surat
The State is also finalising 5. The world’s largest Solar &
choose the best possible
Gujarat’s first Integrated Logistics Wind Hybrid Energy Park with a
Policy and Service Sector Policy to location for their investment
capacity of 30 GW is in Kutch
promote sectors such as IT, Banking in industrial areas of the State.
and Financial Services, Tourism, etc. Further, to achieve self-reliance Gujarat being a policy-driven
with the objective, to support the and boost the manufacturing state has announced about 20 policies
industrial ecosystem development and over the last five years focused
sector, the State announced predominantly on supporting a
to enable integrated development of
the Gujarat Solar Power Policy conducive industrial ecosystem and
the businesses. With the recent budget
announcement to set up a fintech hub 2021, which aims to reduce the promoting green manufacturing, R&D,
at Gujarat International Finance Tec- power costs of industrial units and innovation. The Government
City (GIFT) International Financial by around 50%. of Gujarat recently launched the
Services Centre (IFSC), Gujarat is set Industrial Policy 2020 to promote
to attract global fintech firms and startups. entrepreneurship and innovation, supported by export
competitiveness (Vocal for Local to become Global). In
With geographically balanced development and line with the mission of ‘Aatmanirbhar Bharat’, the State
futuristic projects like DFC, DMIC, Dholera SIR, Mandal Government has identified 15 thrust sectors for industrial
Becharaji (MBSIR), PCPIR, etc. there are tremendous promotion, including nine core sectors and six sunrise
investment opportunities in Gujarat. Dholera will act as sectors, which includes 100% export-oriented units,
a catalyst in attracting investments in the state especially irrespective of the sector. Gujarat has also become the first
in the renewable and lithium-ion battery manufacturing state to delink the incentives for industries under the State
sectors. Besides, several futuristic infrastructure Goods & Services Tax (SGST).
development projects are already underway, such as:
The Government of Gujarat also offers extensive
1. Rail Corridors connecting major cities in Gujarat support for developing micro, small and medium enterprises
2. Ahmedabad – Dholera Expressway in the State. It is aligned with the vision of ‘First Production,

YOJANA May 2021 21

Then Permission’. Accordingly, the State Government The significant increase in investment has enabled
passed the Gujarat Micro Small and Medium Enterprises the reduction of the unemployment rate. The state has
(Facilitation of Establishment and Operation) MSME Act the lowest urban unemployment rate (3.4%), followed
2019. MSMEs, under the Act are exempted from obtaining by Karnataka and Maharashtra with 5.3% and 6.6%
prior approvals for three years and can put in necessary respectively as per the Periodic Labour Force Survey
initial attempts to start the industry successfully. To date, (PLFS) 2018-19. To promote skill enhancement and
over 900+ MSMEs have benefitted through this scheme. employment generation, an MoU has been signed for
The State Government has also signed MoUs with banks the development of Gujarat Special Education Region
for easy loan approval of MSMEs. (G-SER) as an education hub in 5,000 acres at Dholera.
Gujarat witnessed a transformation with the advent Gujarat is also setting Anchor Institutes with a view
of the Tata Motors plant in Sanand. It is because of this of new emerging sectors to formulate an industry-
reason that the state has been successful in attracting responsive curriculum, need-based training, and relevant
investments in the automobile sector and emerged as skill development for trainers.
an automobile manufacturing hub. Major multinational Gujarat has established itself as a national leader
automobile companies like Suzuki Motor, Ford in various industrial sectors viz. textiles, engineering,
India, Honda, and Hero MotoCorp have established chemicals, petrochemicals, pharmaceuticals, dairy,
operations in Gujarat. With this Gujarat also witnessed cement & ceramics, and gems & jewellry and has
a transformation in investment sectors and there has become the most sought-after investment destination
been a shift from traditional sectors like chemicals, in the country. With further support from the Central
metallurgical industries, transportation, etc. to sectors Government and a new vision of ‘Aatmanirbhar Bharat’,
like telecommunication, automobile, renewable energy, the State is geared to attract investments and fuel the
technical textiles, etc. industrial growth to soar to newer heights. 

22 YOJANA May 2021

 foundation
FOCUS

Maharashtra : A Journey of Over Sixty Years

Yojana Team

The modern state of Maharashtra is bordered by the Arabian Sea to the West, Gujarat and
the Union Territory of Dadra and Nagar Haveli to the North West, Madhya Pradesh to the
North & North East, Chhattisgarh to the East, Karnataka to the South, Andhra Pradesh to
the South East and Goa to the South West.

T
he antiquity of human lasting rule over the state was that of state of Maharashtra but also in parts
habitation in the state the Satavahanas (1st century BCE to 3rd of Andhra Pradesh, Karnataka, and
goes back to the stone century CE). It was a very flourishing Madhya Pradesh.
age period (1.27 million period of the state. International trade After the decline of the
years ago). Numerous sites with the with the western world was in full Satvahana rule, many small kingdoms
stone age tools have been reported on swing during this period. The ports were established in different parts
the bank of various rivers and river in Maharashtra played a major role of Maharashtra like the Abhiras,
valleys. Many Chalcolithic sites have in this. The result can be seen in the Traikutakas, etc. But in the 4th century
been located and some like Inamgaon excavation of many Buddhist rock-
CE, the Vakataka rulers came to
(1300 BCE to 700 BCE) were cut caves like Bhaja, Pitalkhore, Karla
prominence. They had two branches
extensively excavated. Nasik, etc. patronised mainly by the
both ruling in Vidarbha. Some of
trading community. The Western
Historical Perspective  their rulers had patronized the cave
Kshatrapas were ruling from Gujarat
During the historical period excavation activities at Ajanta in the
but they had conquered some of the
(after the 6th century BCE) the rule of 5th century CE.
Satavahana territories for some time.
the Mauryas (4th century BCE to 2nd The Satavahanas defeated these Maharashtra was ruled by a few
century BCE) is seen in Maharashtra. rulers in 78 CE and regained their rulers in the 6th -7th centuries CE like
Remains of the inscriptions of Ashoka land. The Satavahana rule expanded the Kalachuris (Madhya Pradesh) and
have been found in the state. A long- not only in the whole of the modern Western Chalukyas (Karnataka). But a

24 YOJANA May 2021

stable rule started in the 8th century CE
when the Rashtrakutas came to power.
They were also involved in creating
of the world-famous caves at Ellora.
Their rule was extended not only in
Maharashtra but also in Karnataka. At
one point in time, they had conquered
the entire region between the states of
Maharashtra and Uttar Pradesh.
The Yadavas (10th century to 13th
century CE) were the next rulers in the
state. Their rule lasted for a long time
over the parts of central and eastern
Maharashtra. The Shilahara rulers
were contemporary to them ruling in
western and southern Maharashtra.
This period marks the efflorescence
of the temple building activity in
Maharashtra. Impressive temples
were constructed at many places Bahamani Empire, the Nizamshahi
like Hottal, Nilanga, Khidrapur, and Adilshahi rule over different
Amongst several other parts of the state. In the 17th century,
Gondeshwara, etc. Some forts like
things, Maharashtra is also CE Chhatrapati Shivaji established
Devagiri, Panhala were also built
during this period. Allauddin Khilji the pioneer of women’s his independent rule in Maharashtra.
of the Delhi Sultanat defeated the rights and the Indian feminist He coronated himself as a sovereign
Yadavas. ruler in 1674 CE. This local Maratha
movement. From the early kingdom expanded into the Maratha
Muhammad bin Tughluq shifted 19th century onwards, Empire in the 18th and early 19th
his capital to Daulatabad (Devagiri) the state saw a host of centuries CE until the Britishers took
from Delhi for some time. After over it in 1819. Since then with the
the decline of the Tughluqs, the thinkers and reformers who
contribution of numerous freedom
Bahmani Sultanat started ruling over campaigned against child fighters, Maharashtra played a major
Maharashtra in the 14th century CE. marriage and Sati, while role in the struggle for independence.
The Faruqi ruled over the Khandesh simultaneously upholding On 1st May 1960, the separate Marathi-
region and the Gujrat Sultans ruled speaking state of Maharashtra was
over Mumbai and surrounding women’s education and
created on public demand. Since then
regions in the 14th – 15th centuries widow remarriage. the state has been leading on all fronts
CE. After the disintegration of the in the country.

YOJANA May 2021 25

 Maharashtra comprises 35 rivers, which flow westwards into the are found in the coastal humid and
districts, which are grouped into six Arabian Sea. tropical region. Maharashtra is rich in
divisions. The break-up of the six The Sahyadri Range is the ore deposits. Granite, Granite gneiss,
divisions are: defining geographical feature of Quartzite, Conglomerates are found in
1. Amravati Division (Vidarbha) Maharashtra. Rising on an average the basement regions of the Konkan
is sub divided into five districts. to an elevation of 1000 m, it has rivers. Nanded is another region where
These are Amravati, Akola, Konkan on the west. Eastwards, the pink Granites are found. Kamti of the
Buldana, Yavatmal and Washim topography goes through a transitional Nagpur region is famous for coal.
area known as Malwa to the plateau Water is the most unevenly distributed
2. Aurangabad Division (Marath- natural resource. Many villages lack
wada) Aurangabad, Beed, level. The Konkan, lying between the
Arabian Sea and the Sahyadri Range drinking water, especially during
Hingoli, Jalna, Latur, Nanded, the summer months, even in the
Osmanabad and Parbhani is narrow coastal lowland, barely
50 km wide. Though mostly below wet Konkan. Barely 11% of the net
3. Konkan Division: Mumbai City, 200 m, it is far from being a plain sown area is irrigated. The granitic-
Mumbai Suburban, Raigad, country. Highly dissected and broken, gneissic terrain in the hilly eastern
Ratnagiri, Sindhudurg, and Thane the Konkan alternates between narrow area of Vidarbha accounts for all tank
valleys and low laterite plateaux. irrigation. Tube-wells in the Tapi-
4. Nashik Division: Ahmednagar,
Purna alluvium and shallow wells
Dhule, Jalgaon, Nandurbar, and The Satpuras, hills along the in the coastal sands are the other
Nashik northern border, and the Bhamragad- main sources of water. Special wells
5. Nagpur Division: Bhandara, Chiroli-Gaikhuri Ranges on the are being made by the Government
Chandrapur, Gadchiroli, eastern border form physical barriers for the villages lacking water.
Gondiya, Nagpur and Wardha preventing easy movement, and The Chandrapur, Gadchiroli,
also act as natural limits to the state. Bhandara, and Nagpur Districts form
6. Pune Division: Kolhapur, Pune,
This topography of the state is the the main mineral belt, with coal and
Sangli, Satara and Solapur.
outcome of its geological structure. manganese as the major minerals and
The Western Ghats form the The state area, barring the extreme iron ore and limestone as potential
source of several major rivers of eastern Vidarbha region, parts wealth.
Maharashtra, notable among them of Kolhapur and Sindhudurg, is
being the Godavari and the Krishna. practically coterminous with the The spirit of Maharashtra is
Along with their tributaries, the Deccan Traps. cosmopolitan. While 80 percent of
rivers flow eastwards into the Bay Maharashtrians follow Hinduism,
of Bengal, irrigating most of central Natural Resources the state has a treasure trove of
and eastern Maharashtra. The Ghats Apart from mainly occurring heritage sites that bespeak its multi-
are also the source of numerous small rock Basalt; other rocks like- Laterites hued heritage–including those
from its Jain, Buddhist, Muslim,
and Christian cultures. So be it the
Ashtavinayak yatra in the Konkan
belt–dedicated to eight beautiful
facets of Lord Ganesha–or the Ajanta
and Ellora caves near Aurangabad
from the pre-Christian Buddhist Era,
the Mother Mary Church at Mahim,
or the Haji Ali mosque of Mumbai–
there’s enough to keep connoisseurs
of temples, forts, old monuments,
and art- gainfully preoccupied.
Forts have played a vital role in the
history of the state, given the rocky
terrain of the Sahyadris and the need
for strongholds against invading
armies. Self-contained units with an
economy and socio-political fabric
all their own, the forts of Maharashtra
were built mainly around the time of

26 YOJANA May 2021

Chhatrapati Shivaji. Each fort marks Amongst several other things,
a military triumph, and each tells a Maharashtra is also the pioneer
story of strategy, warfare, intrigue, of women’s rights and the Indian
and planning—something of interest feminist movement. From the early
to all students of political science, 19th century onwards, the state saw
defense strategies, and management. a host of thinkers and reformers who
They all reconstruct the tale of an campaigned against child marriage
enterprising leader in the Deccan and Sati, while simultaneously
arena, who with fortitude, popular upholding women’s education and
support, and vision went onto become widow remarriage. Prominent names
one of the tallest kings of Indian include the late Justice MG Ranade,
history. Interwoven in folklore, along his wife Ramabai Ranade, Savitribai
with the valour of Shivaji–the forts Phule, and Pandita Ramabai. As early
are a subject in themselves. as the 1930s cities like Pune (also
Over 70 percent of India’s rock- The spirit of Maharashtra known as a prominent educational
cave art is in the state. Of all these, hub and Oxford of the East) saw
is cosmopolitan. While 80 women cycling to school and college,
Ajanta and Ellora, in the vicinity percent of Maharashtrians
of Aurangabad, are world-famous apart from running errands. Cities
follow Hinduism, the state has like Pune and Mumbai are home to
heritage sites and illustrate the
degree of skill that Indian artisans a treasure trove of heritage several active women’s rights groups
had achieved several hundred years sites that bespeak its multi-hued across party lines, advocating equal
ago. Ajanta dates between the 2nd heritage–including those from opportunity and fair treatment. It is
to first century BCE, while Ellora little wonder that India’s first female
its Jain, Buddhist, Muslim, and doctor aka the Late Anandi Bai
was excavated around 600 years Christian cultures.
later. All these have been carved Joshi comes from the state. Warrior
out of solid rock with little more queens like Ahilyabai Holkar and
than a hammer and chisel and are an Rani Lakshmibai are a reminder of
which begins with accompanying the
important repository of the essence how much Maharashtra has done for
palkhis of the late saints from their
of Buddhism. Meanwhile, The the upliftment of women. The year
place of Samadhi/enlightenment. The
Elephanta Caves (of undated origin) 1885 saw the establishment of the
Warkaris reach Pandharpur on the
are a network of sculpted caves on Indian National Congress in Bombay
auspicious day of Ashadhi Ekadashi,
Elephanta Island, or Gharapuri in under the general secretaryship of AO
chanting the name of God—and
Mumbai Harbour, 10 kilometers to Hume, with delegates from across
the saints. Propagating the values
the east of Mumbai, and a tribute to the country in attendance. It also saw
of non-violence, charity, austerity,
the legend of Lord Shiva. the establishment of the first Indian
and vegetarianism, the Warkaris is
newspaper Darpan. The values of
The Bhakti movement—a an enduring symbol of tolerance
free and fair journalism, apart from
medieval movement spread all over in a chaotic world—even today.
the tradition of value-based Diwali
the country between the 13th and 17th Several tourists from the world over
anks (publications that come out in
centuries- that emphasised the true participate in the pilgrimage and
the festival of Diwali) that take up
nature of God–as a democratic and come away, moved beyond words
several socially relevant topics, tell of
loving entity who valued simplicity with the sheer force of conviction
the educated, thinking, and well-read
and heart-felt devotion over ritual and that unites men across all barriers.
middle class. Mumbai—the capital
superstition, found resonance in the The women of Maharashtra of Maharashtra, is seen as India's
soil of Maharashtra as well. The roll- patronise the nine-yard saree as financial capital, but is literally the
call of honour includes saint poets like opposed to the six-yard version Gateway of India-secular, progressive
Dnyaneshwar, Namdev, Tukaram, prevalent in the rest of the country. yet rooted. It is also home to the
and Chokhamela, apart from several Musical forms like Powada, a song largest film industry in the world,
saints who have contributed richly praising the valour of a great ruler, an industry whose turnover is more
to music, art, and literature. The and graceful dance forms like Lavani than that of the GDP of several
Warkari movement that every year in are something to be experienced in the small nations. An industry that sees
June-July sees a plethora of farmers various theatres and cultural festivals thousands thronging to the city every
and myriad believers in Vitthoba (an of the state. The fisherman aka Koli year, hoping to make it big. 
avatar of Lord Vishnu) converge to dance form is a nod to the contribution
Source: www.maharashtratourism.gov.in
Pandharpur in an annual pilgrimage, of the fisher-folk of the state.

YOJANA May 2021 27

 REFORM
special Article

One Nation-One Election

K F Wilfred

Simultaneous elections reduce labour, time, and expenditure in the conduct of elections
and instances of pause in governance are addressed if elections are conducted in one go
instead of staggered elections. Bringing the terms of all the Houses to sync with one another
necessarily calls for either extending the terms of several of the Houses or curtailing of terms
or a combination of both, that too by two to three years in some cases. For enabling such
curtailing or extension of the term, the relevant Articles of the Constitution will have to be
suitably amended.

S
peaking in the Constituent Assembly on Lok Sabha and the Legislative Assemblies of the States
the proposed Articles on Elections and as constituted then. The next three cycles of elections
Election Commission in the Constitution also witnessed concurrent Lok Sabha and Legislative
of India in the making then, Dr. B.R. Assembly elections barring a few stray cases like Kerala
Ambedkar mentioned that the Drafting Committee had where a mid-term election was held in 1960 on the pre-
two alternatives before it on the constitution of Election mature dissolution of the Assembly, and in Nagaland and
Commission- whether it should be a permanent body or if Pondicherry where the Legislative Assembly was created
it could be a temporary body to be set up before elections only after the 1962 general elections. The last occasion
and wound upon completion of the process. Proposal on when we had near-simultaneous elections in the country
the possibility of part-time Election Commission was was in 1967, all Legislative Assemblies except those of
driven by the assumption that elections were expected
only once in five years except for the odd bye-elections
to fill casual vacancies that might arise once in a while,
and leave a permanent Commission with no work in the
intervening four years. But the Committee anticipated
the possibility of mid-term dissolution of Legislative
Assemblies. It recognised that it was necessary to be in
a state of readiness to conduct fresh elections promptly in
such situations for which a permanent Commission was
necessary. Participating in the debate, Prof. Shibaan Lal
Saksena observed that since no fixed term for the Houses
of Legislature or fixed election cycle was proposed in
the Constitution, concurrent elections could happen in
the initial years. Still later on there would be elections
regularly in some State or the other.
As predicted by Prof. Saksena, we had concurrent
elections for the first two decades. We had the first general
elections of free India conducted for about six months,
starting from October 1951 held simultaneously to the

The author is former Sr. Principal Secretary, the Election Commission of India, and is currently Consultant with India International
Institute for Democracy and Election Management. Email: [email protected]

28 YOJANA May 2021

Nagaland and Pondicherry going to polls with the Lok a statutorily required minimum period before a poll can
Sabha. The fourth Lok Sabha constituted in 1967 was be taken. The election schedule is announced a few days
dissolved prematurely in 1971 ahead of its normal term before the election notification as an advance notice to
resulting in a mid-term Lok Sabha election. This was the the stakeholders. Therefore, if the terms of the Houses are
beginning of the end of simultaneous elections. Extension expiring within a window of three to four months, it would
of the term of Lok Sabha during the National Emergency be legally possible to hold elections simultaneously to
declared in 1975 and the dissolution of Assemblies of some constitute the new Houses. In other words, to contemplate
States after the 1977 Lok Sabha election further disturbed simultaneous elections, we need, as a starting point,
the cycle of concurrent elections. After the two pre-mature a situation where the Lok Sabha and the Legislative
dissolutions of the Lok Sabha in 1998 and 1999, only four Assemblies of all States and Union Territories have their
State Assemblies have been going to polls along with terms ending together.
the Lok Sabha elections in the last Synchronising the Terms of the
two decades. The other States have Elections to the Lok Sabha and
Assembly elections at different times, Houses
Legislative Assemblies are held
and we now have at least two rounds of Both the Lok Sabha and Legislative
Assembly general elections every year. together if the terms of the Assemblies (ordinarily) have a term of
Houses are ending around the five years. Clause (2) of Article 83
Elections to the Lok Sabha and
Legislative Assemblies are held same time. Sections 14 and 15 of of the Constitution provides that “the
together if the terms of the Houses are the Representation of the People House of the People, unless sooner
ending around the same time. Sections Act, 1951, empower the Election dissolved, shall continue for five years
14 and 15 of the Representation of the Commission to notify elections from the date appointed for its first
People Act, 1951, empower the Election meeting and no longer and expiration
any time during the last six of the said period of five years shall
Commission to notify elections any
time during the last six months of months of the term operate as dissolution of the House.”
the term of the House and not earlier of the House and not earlier There are identical provisions in
than that. A lead time of twenty-five than that. Article 172(1) regarding the term of the
days from the date of notification is Legislative Assemblies. While these

YOJANA May 2021 29

 a Parliamentary Constituency become the roll for that
Parliamentary Constituency. There is no duplication of
work in preparing the electoral rolls for the two elections
and hence no extra labour or expenditure is involved on
this count.
However, in the conduct of elections, all logistic
arrangements are replicated for the two elections when the
same drill can cater to both the elections if held together. A
polling team headed by a Presiding Officer is appointed for
each polling station for taking the poll. These officials are
primarily government/PSU officials and teachers. The same
polling team with perhaps a couple of additional officials
can handle the poll in a combined election to Lok Sabha
Houses can be dissolved ahead of the scheduled expiry of and Legislative Assembly. This would mean saving on
the term of five years [Articles 85(2)(b) and 174(2)(b)], transport, accommodation, storage arrangements, training,
there is no provision for extension of the term unless a remuneration, and so on. This will also mean saving in
proclamation of Emergency is in operation. terms of human resources. Another area of saving in
simultaneous elections would be in the deployment of the
Bringing the terms of all the Houses to sync with Central Police Force. Two separate elections would require
one another necessarily calls for either extending the movement and deployment of Forces on two occasions
terms of several of the Houses or curtailing of terms or a while one such exercise of almost the same scale can do
combination of both, that too by two to three years in some the job in concurrent elections.
cases. For enabling such curtailing or extension of the
term, the relevant Articles of the Constitution mentioned Additional Expenditure for Simultaneous Elections
above will have to be suitably amended. One aspect that could offset the savings would be
Even if the terms are synchronised as a one-time the doubling of expenses on electronic voting machines
measure, we will still need an adequate legal safeguarding (EVMs). The EVM now has three unit-control units, a
place to avoid mid-term dissolution and protect the balloting unit, and the voter-verifiable paper audit trail
simultaneous elections cycle. For maintaining the electoral (VVPAT) printer. The recommended life of EVM is
cycle, some countries have legal provisions to the effect fifteen years. One set of EVMs is used in a polling station
that for a ‘no-confidence motion’ to be brought up against for one election. Since the Lok Sabha and Assembly
the government in office, the proposed resolution should elections are not held together except in a few States, the
also contain a constructive ‘vote of confidence’ in an same EVMs are utilised for both the elections. Using the
alternative government with a named leader to head it. same EVM repeatedly for different elections does not
In such cases, even if the sitting government is voted out involve any extra expenditure or labour. For conducting
in the House, there would be an acceptable alternative in the elections simultaneously, each polling station needs
place by virtue of the constructive vote of confidence. This two EVMs- one for the Lok Sabha election and the other
helps to maintain the fixed term of the House and pre- for the Assembly election. This would mean that for a
empts stalemate situation thrusting fresh election as the
only option.
Why Simultaneous Elections?
Two seemingly relevant factors in favour of
simultaneous elections as opposed to separate elections are:
i. Simultaneous elections reduce labour, time and
expenditure in the conduct of elections; and
ii. Instances of pause in governance are addressed if
elections are conducted in one go instead of staggered
elections.
Expenditure Issue- Areas of Saving
Polling stations for Lok Sabha and Legislative
Assembly elections are the same. So is the electoral roll.
Electoral rolls of all Assembly constituencies within

30 YOJANA May 2021

simultaneous nationwide election, playing turf to all stakeholders. The
the requirement of EVMs in terms of For conducting the elections restriction is only in coming up with
numbers would be double compared to new schemes during the limited period
simultaneously, each polling
separate elections. when MCC is in force. The schemes,
station needs two EVMs- one programs, and work already in progress
At present we have well over for the Lok Sabha election and
one million polling stations in the are not affected. If all elections are
country. This figure can go up with
the other for the Assembly held together, the restrictions under
an increase in the number of electors. election. This would mean that MCC will be through in one go.
Every polling station is supplied with for a nationwide simultaneous In the Lok Sabha election, the
a control unit and VVPAT printer and election, the requirement of MCC applies to both the Union and
one or more balloting units (depending EVMs in terms of numbers State Governments. In the Legislative
on the number of candidates in the would be double as compared to Assembly election, the Code,
constituency since one unit can logically, applies to the outgoing State
handle up to sixteen names only). The
separate elections. Government. The restriction on the
Election Commission, as a policy, Union Government is only concerning
keeps a certain percentage of these units as a reserve new schemes specific to the State(s) going to polls. In
for replacement in the event of functional problems in bye-elections, the application of MCC is restricted to the
any polling station. The tentative price fixed for one set District concerned. Thus, the impact on governance on
of the control unit and balloting unit is Rs. 17,000 and account of the enforcement of MCC during elections is
VVPAT costs over Rs. 16,000. At the rate of one per minimal.
polling station, the additional expenditure for procuring Local Bodies’ Elections
EVMs for the one million-plus polling stations along
with the reserve EVMs would be well over Rs. 4,000 The local bodies’ elections have not been considered
crores. Considering that the incidental recurring expense for the analysis here. Those elections are conducted under
in the storage and security of these machines will also be the superintendence, direction, and control of a different
a considerable amount, the overall expenditure in holding constitutional authority, namely, the respective State
elections may not see any substantial dip on account of Election Commission. Holding local bodies’ elections
simultaneous elections. along with the other elections will require the team of the
same polling officials to report to and take instructions from
However, simultaneous Lok Sabha and Assembly two different authorities simultaneously, even on the same
elections can bring considerable savings in their election issue, and they may not necessarily get the same direction
propaganda campaign expenditure for the political in all cases. There is a distinct set of polling stations too for
parties. Political parties engage in extensive campaign local bodies’ elections. Further, the judicial forum before
activities, especially in general elections. They employ which the local bodies’ election can be challenged is the
multiple methods to reach out to the electors, through Court of District Judge and other lower Courts whereas an
public rallies, roadshows, smaller roadside meetings, election petition challenging a Parliamentary or Assembly
advertisements on print and electronic media and other election is to be brought up before the High Court.
platforms, personal contact, and in several other ways. Therefore, situations may arise where the same issue forms
In a simultaneous election, such outreach programs will a ground to challenge the election may be raised in two
serve for both the elections. Public rallies involving top different Courts-one for the Lok Sabha/Assembly election
leaders and media advertisements are both expensive and the other for the local bodies’ election.
affairs. Simultaneous elections could, thus, bring down
the campaign expense of political parties by a long way. A simultaneous nationwide election could push up the
voter turnout since a once-in-five-year event is bound to
Model Code of Conduct- Impact on Governance attract more enthusiastic participation across all sections.
Model Code of Conduct (MCC) is a set of behaviour Frequent elections can bring in the election-fatigue factor
guidelines for candidates and political parties that comes at least among some sections of electors. Simultaneous
into operation from the date election is announced by elections in a regular electoral cycle may help address the
Election Commission. A crucial part of the MCC is the fatigue element and the usually observed urban apathy in
restrictions on the party in power. MCC prohibits using voting. Better electors’ participation will further add to the
official resources for electoral activities, announcing credibility of the elections. The idea of concurrent elections
financial grants, new schemes, etc. that may influence the has been discussed in the past. The need/feasibility of the
voters in favour of the ruling party. This is a check on the idea, the merits, and demerits associated with it are all
ruling party against using its position of power to woo likely to be a subject of further scrutiny and analysis at
the electors on the eve of elections and to provide a level different levels in the future. 

YOJANA May 2021 31

 SYNERGY

Fiscal Federalism in Covid-19

Dr Sajjan S Yadav
Suraj K Pradhan

The world is fighting an unprecedented war. The war against a new and a deadly foe, a highly
infectious virus named Severe Acute Respiratory Syndrome Coronavirus-2 (SARS-CoV-2).
This pathogen which causes Covid-19 disease has created the biggest health crisis of this century,
upended life globally, wreaked havoc on economies, devastated families, and caused death and
debility. The Government of India responded in the true spirit of “Fiscal Federalism.” Through
a slew of measures, the Centre made sufficient resources available to the States to fight the
contagion, spur economic activity and maintain the standards of public service delivery.

T
he catastrophe began in Wuhan, China in To maintain fiscal prudence, the Union Government
November 2019 and spread rapidly around permitted the State Governments to borrow within the Net
the world. It was declared a Public Health Borrowing Ceiling of 3% of their GSDP in a financial year.
Emergency of International Concern on However, to help ease stress in State finances on account
January 30, 2020, and a pandemic on March 11, 2020. The of the plunge in their revenue receipts, avoid a severe
pathogen has caused casualties of unprecedented magnitude. cutback in capital expenditure, and prevent a contractionary
By April 8, 2021, the global number of confirmed cases had fiscal impulse, the Government of India on May 17, 2020,
gone up to 13,24,85,386 including 28,75,672 deaths. enhanced the borrowing limit of States for fiscal 2020-21 by
The Government, led by the Prime Minister, has 2% of GSDP. This provided extra headroom of Rs. 4.28 lakh
adopted the mantra of “Cooperative Federalism”, and has crore to States.
fought an exemplary battle against Covid-19. The Centre Half of the additional borrowing facility was
and the States have acted in unison to limit the human and unconditional while the remaining was linked to specified,
economic impact of the pandemic. measurable and feasible reform actions. Four citizen-
In the initial stages, the lockdown and social distancing centric areas- “One Nation One Ration Card”, ease of
measures to check the spread of the contagion had led to a doing business, power sector and urban local bodies were
near halt in economic activities. Revenues suffered massively identified for reforms. Borrowing permission of 0.25% of
while the expenditure obligations soared. The States needed GSDP was linked to the completion of reforms in each area.
fiscal support for their liquidity needs. The Government of Ways and Means Advances
India responded in the true spirit of “Fiscal Federalism.”
Through a slew of measures, the Centre  made sufficient The Reserve Bank of India (RBI) provides Ways and
resources available to the States to fight the contagion, spur Means Advances (WMA) to the States banking with it to
economic activity and maintain the standards of public help them tide over temporary mismatches in the cash flow
service delivery: of their receipts and payments. RBI has fixed the WMA
limit of each State based on multiple factors including total
Enhancement of Borrowing Limit of States expenditure, revenue deficit and fiscal position of the State.
Borrowings constitute an important source of funding Interest on WMA is charged at the RBI’s repo rate.
for the State Governments to meet their Fiscal Deficit. In States are also allowed an overdraft facility, which is
India, borrowing by States is governed by the provisions of the amount drawn over the WMA limit. Overdraft attracts a
Article 293 of the Constitution of India. higher rate of interest.

Dr Sajjan S Yadav is Joint Secretary at Department of Expenditure, Ministry of Finance, GoI. Email: [email protected]
Suraj K Pradhan is Joint Director at Department of Expenditure, Ministry of Finance, GoI. Email: [email protected]

32 YOJANA May 2021

 Until March 31, 2020, the aggregate WMA limit of the Financial Assistance to States
States was Rs. 32,225 crore. On the request of the Centre To soften the blow to their balance sheets on account
and the States, RBI on April 7, 2020 increased the WMA of the fiscal impacts of Covid-19, the States applied brakes
limit of States by 60%. This made available an additional on capital expenditure. However, capital expenditure has
amount of Rs. 19,335 crore to the States. The enhanced a higher multiplier effect, enhances the future productive
limit was initially valid untill September 30, 2020 and was capacity of the economy, and results in a higher economic
later extended till March 31, 2021. RBI also extended the growth rate.
period for which a State can be in overdraft from 14 to 21
consecutive working days, and from 36 to 50 working days Therefore, despite the adverse financial position of
during a quarter. the Central Government, the Finance Minister announced
the Scheme of Financial Assistance to States for Capital
Increased WMA limit gave immediate liquidity to Expenditure in October 2020 with an amount of Rs. 12,000
States to borrow short-term funds from RBI at a lower rate crore for the scheme. Part of the allocation was set aside for
of interest. It provided them greater comfort to undertake States who carry out reforms in at least three out of the four
Covid-19 containment and mitigation efforts. The policy citizen-centric areas identified by the Ministry of Finance.
intervention also enabled the States to space out their market
borrowings. The Department of Expenditure approved capital
expenditure proposals of Rs. 11,912 crore of 27 States under
Notified Disaster Declaration & Relaxation of SDRF the scheme. An amount of Rs. 11,830 crore was transferred
Norms to the States. Eleven States also qualified for enhanced
The State Disaster Response Fund (SDRF) has allocation under part-III of the scheme.
been constituted under Section 48 (1) (a) of the Disaster Special Window for Borrowings
Management Act, 2005. This is the primary fund available
to State Governments for responses to notified disasters. The The subsumption of local taxes in GST and the
Central Government contributes 75% of SDRF allocation resultant fear of revenue loss led to the enactment of the
for the general category, and 90% for the north-eastern and GST (Compensation to States) Act, 2017. It was agreed that
hill States. revenue shortfalls arising bacause of GST implementation
would be made good for an initial period of five years
In view of the spread of Covid-19, the Government from the GST Compensation Fund. This corpus was to be
of India treated Covid-19 as a notified disaster. State generated through a levy of cess on selected items.
governments could spend SDRF on quarantine related
measures, procurement of essential equipment, providing Due to the economic slowdown, a shortfall of Rs. 1.10
temporary accommodation, food, clothing and medical care lakh crore was estimated in the GST Compensation fund in
for people affected and sheltered in quarantine camps, and 2020-21. On request of the States, the Central Government
for cluster containment operations. Initially, the expenditure decided to set up a special window to borrow the estimated
on this account was limited to 25% of SDRF allocation for amount of shortfall on behalf of the States and passed it to
the year which was later enhanced to 50%. them as a back-to-back loan to be repaid from future accruals
in the Compensation Fund.
Moreover, the first instalment of the central share of
SDRF was released in advance for the year 2020-21 to all Maintaining Tax Devolution to States
States. Under SDRF, States were provided with an amount The Finance Commission constituted under article 280
of Rs. 11,092 crore in 2020-21. of the Constitution of India recommends the percentage of
the net proceeds of tax or duty to be distributed among States
and how such tax or duty would be distributed. 14th Finance
Commission had recommended the biggest ever increase
in vertical tax devolution in the Central divisible pool from
32% to 42%. After considering Jammu and Kashmir's
reorganisation into Union Territories of Jammu & Kashmir
and Ladakh, the 15­th Finance Commission recommended
41% tax devolution.
The first quarter of 2020-21, witnessed a sharp decline
in Union’s gross tax revenue collection. However, during
this period, despite the decline, the Union government
continued to devolve taxes to the States on the basis of
budget estimates for the year 2020-21. Moreover, when
revenue buoyancy was observed in the last quarter of the

YOJANA May 2021 33

 Table 1: Additional resources made available to States
(Rs. in Crore)
Additional borrowing Addition- GST com- Amount for Co- Scheme
(upto 2% of GSDP) al Ways pensation vid-19 related for Capi-
State & Means shortfall activities from tal Expen- Total
Untied Reform
(1%) linked (1%) Advance funds SDRF diture
Andhra Pradesh 10,102 9,090 906 2,311 560 688 23,657
Arunachal Pradesh 286 113 117 0 125 233 874
Assam 3,738 1,680 564 994 386 450 7,812
Bihar 6,462 1,292 852 3,905 708 843 14,062
Chhattisgarh 3,584 1,790 396 3,109 216 286 9,381
Goa 892 846 102 840 6 98 2,784
Gujarat 17,408 8,704 1,149 9,222 662 285 37,430
Haryana 8,586 4,292 549 4,352 246 91 18,116
Himachal Pradesh 1,754 1,138 330 1,717 205 533 5,677
Jharkhand 3,530 0 432 1,689 284 277 6,212
Karnataka 18,036 9,919 1,191 12,407 396 305 42,254
Kerala 9,044 9,043 729 5,766 157 82 24,821
Madhya Pradesh 9,492 8,542 960 4,542 910 1,320 25,766
Maharashtra 30,788 0 2,031 11,977 1,611 514 46,921
Manipur 302 195 117 0 21 317 952
Meghalaya 388 154 105 112 33 200 992
Mizoram 264 0 96 0 24 200 584
Nagaland 314 0 123 0 21 200 658
Odisha 5,716 4,000 591 3,822 802 472 15,403
Punjab 6,066 4,851 555 8,359 287 296 20,414
Rajasthan 10,924 10,377 978 4,604 741 1002 28,626
Sikkim 312 61 0 0 25 200 598
Tamil Nadu 19,254 9,626 1,485 6,241 510 0 37,116
Telangana 10,034 7,524 648 2,380 225 358 21,169
Tripura 594 533 153 226 34 300 1,840
Uttar Pradesh 19,406 9,702 2,130 6,007 967 976 39,188
Uttarakhand 2,810 2,807 303 2,316 469 675 9,380
West Bengal 13,574 0 1,137 4,431 506 630 20,278
Total 213,660 106,279 18,729 101,329 11,137 11,831 4,62,965

financial year, the Centre devolved an additional amount epic fight against the Covid-19 pandemic has received
of Rs. 45,000 crore to the States in the true spirit of fiscal immense appreciation globally. Besides taking care of
federalism. our people, the country has provided critical medicines,
Thus, during the financial year 2020-21, despite vaccines, diagnostic kits, ventilators and personal protective
dwindling resources due to the pandemic, the Centre equipment to over 150 countries.
empowered the States fiscally to fight the pandemic and The fight against the virus is being successfully
stimulate economic recovery. Details of additional resources carried out with the remarkably coordinated efforts of the
provided by the Ministry of Finance to States in 2020-21 is Centre and the States. In this collective fight, the country
given in Table-1. has exhibited a new vigour in cooperative federalism and
With the Prime Minister leading from the front, India’s devolved governance. 

34 YOJANA May 2021

 Capacity Building

Challenges of Skill Development

Juthika Patankar
 Dr Maneesh Mishra

Skill development in India is still largely the preserve of the Central Government with states
also increasing budgetary allocation for Technical and Vocational Education and Training
(TVET) lately. In most skill development schemes, planning, and monitoring are handled by
the Centre, and state governments and districts have virtually no role. This had to change
if we were to ensure people’s participation and empowerment to fulfill their aspirations for
livelihoods and better economic opportunities.

O
ver 700 District Skill going well and what’s not to make in place that could bring about a
Committees (DSC) set course corrections is important to fruitful arrangement of skill training
up across most states achieve outcomes. across trades and communities and
over the last decade population to create employability.
DSC is composed of all the The DSC headed by the District
have a long way to go before they start significant district development
effectively performing their role in Collector is theoretically the fittest
departmental officers. They have, entity to undertake comprehensive
planning, execution, and monitoring by their departmental programmes,
of skill training schemes. Capacity- skill development through proper
a thorough understanding of the planning for the district. And to equip
building of DSC is imperative if we economic profile and potential of and empower the DSC to do so,
want true decentralisation and expect the district, the nature of its labour we need to build up its capacity to
the DSC to control the management of force, and the administrative systems understand, plan and deliver.
skill development at the district level to
ensure optimum resource utilisation,
fulfillment of local aspirations, and
inclusion of all marginalised sections
of society.
To understand the capacity-
building needs of the DSC let’s begin
by looking at the functions of DSC in
the decentralised skill management
regime. These include planning for
skill training by looking at among
other things demand and supply,
the socio-economic profile, and
availability of skill infrastructure at
the district level. Further, DSC should
make resources available for various
activities such as identifying trainees,
mobilisation, counseling, advocacy,
etc. Monitoring and evaluating what’s

Juthika Patankar is IAS, Additional Secretary, Ministry of Skill Development, GoI. Email: [email protected]
Dr Maneesh Mishra is Lead Consultant, SANKALP, MSDE. Email: [email protected]

YOJANA May 2021 37

 allowing DSC members to be deputed
for training. The state could also
consider providing incentives to the
trained officers by allowing them next
postings of their choice, by seconding
or extending them in deputation posts
in related departments of their choice,
by sponsoring them for at least one
higher training course in a nationally
eminent institution or other similar
ways.
The State Administrative
Training Institutes (ATI) were
approached for designing and
delivering skill management and
leadership training modules to DSC
Capacity-building architecture In addition to these steps, we members. The advantages of roping in
for the DSCs should focus upon need to institutionalise this process of the ATIs were many: district officials
i) creating and managing knowledge knowledge creation and dissemination could be deputed there for shorter-
ii) customising and localising content by the DSC to equip DSC members duration courses as this was fairly
iii) disseminating knowledge through with the ability to use their experience standard practice; it would solve the
training iv) providing opportunities and knowledge for impact-making language issue as the ATIs catered to
for guided practice v) evaluation with skill management. state officials in their language; the
actionable feedback. However, the success of the SANKALP objective of strengthening
The noticeable lack of adequate training would depend upon the full of institutions could be met because
and intensive engagement of the understanding and co-operation of SANKALP financial resources could
State Skill Missions with short-term state departments to permit their be correctly and usefully put into
skill training or SANKALP and district officers not only to undergo aiding content/manpower in ATIs
consequently, the need to buttress the course but also actively encourage and last but not least procurement
district skill planning has meant that them to do so in the interest of better would present no difficulty as ATIs
the States/districts might not utilise quality output for all. The task was are government institutions. Using
optimally the presence of the Fellows not impossible but the difficulty arose the ATIs seemed like a win-win for all
in the DSC. because of the absence of adequate stakeholders.
SANKALP’s numerous inter- two-way communication and dialogue Although deploying the ATIs
actions with the DSCs threw up the between all the official stakeholders. is an attractive and commendable
need for them to have a standard A possible way out would be if the proposition but it does not however
format for planning and monitoring states and districts fully understand fully address the fundamental issue
skill training activities. This would the purpose of such proposed of how to secure the total and active
aid DSC in preparing of evidence- capacity-building and actively seek engagement of the district-level and
based plans, with the flexibility to to promote it. They could do so by to some extent state-level officials
ensure that the plans are rooted in in the exercise of capacity-building.
the reality of the individual districts. We need to elicit from state to state,
Accordingly, SANKALP prepared a The DSC headed by the District district to district what they feel
DSC toolkit complete with templates Collector is theoretically the are their areas of weakness, gaps
for planning and monitoring of skill fittest entity to undertake in understanding and what exactly
activities, a knowledge library with comprehensively the task of they need to metamorphose into
useful information for managing skill skill development through dynamic empowered active DSCs.
training. The flagship skill training Capacity-building as an aid to
proper planning for the district. meaningful decentralisation cannot
scheme of the MSDE, PMKVY, has
a prominent role in DSC. In proving And to equip and empower the be handed down prescriptively from
effective in the implementing of DSC to do so, we need to build the Ministry to the Skill Missions
PMKVY as in every other task, the up its capacity to understand, in States and DSCs. It has to evolve
Sub-Committees and the toolkit plan and deliver. hand-in-hand with the process of
would both play a major role. decentralisation so that syllabus,

38 YOJANA May 2021

pedagogy, medium, methodology, to be, caste-specific. Skills that have
practical learning can all take shape been non-remunerative and not
based on the inputs from all districts, Capacity-building as an aid to perceived as upmarket, are often
stemming from needs identified by meaningful decentralisation unfortunately the exclusive preserve
them. This should combine with the cannot be handed down of the poorer sections and the deemed
concepts evolved in the Ministry with prescriptively from the Ministry lower. The most obvious example
the help of specialist institutions and is that of scavengers or ‘Safai
trainers so that true empowerment
to the Skill Missions in States karmacharis’ How can one break the
and dissemination of ideas can and DSCs. It has to evolve stranglehold of the demeaning nature
happen. There is a scope of entities hand-in-hand with the process of these professions? How does
both private and public to play in of decentralisation so that one make scavenging, rag-picking,
this. There are many institutions in syllabus, pedagogy, medium, or waste disposal ‘aspirational’,
the country with expertise in capacity methodology, practical learning monetarily rewarding, entrepreneurial,
building and they can contribute. and imbued with career opportunities
There is, for example, a role for
can all take shape based on for growth? The answer lies in
institutions interested in public the inputs from all districts, mechanisation of the work. We have
policy research, particularly about stemming from needs to ensure the imparting of skill-
local-level planning that may take it identified by them. training using machines for hazardous
up and generate scholarship in skill and socially demeaning work which
management. This knowledge then would render the tasks safe, hygienic
can be disseminated by institutions Having established the need for and endow them with a modicum
such as ATIs and guide practice. The capacity-building, a brief discussion of human dignity. Mechanisation
documentation and study of practice on the content of capacity building is would change the nature of work, it
shall generate a virtuous cycle. DSCs also needed. Consider the following would change the scope and content
over time can develop capacities examples which illustrate some of previously defined job roles. It
themselves to produce credible data facets of what could be the content in would introduce different supervisory
around skill and skill management capacity-building. levels. The changed nature of the
that institutions involved in skill Leveraging skill training to bring work and the opening up of career
training, Sector skill councils, about socio-economic development pathways would attract persons from
and employers can use. Training sounds like a grand plan but it other castes, raise the work profile of
strategies made with help of data is perfectly comprehensible and the existing castes and enable their
generated grounds up may reduce achievable through decentralisation migration into related or more diverse
the multiple layers of mismatch thus of skills management. Traditionally, trades. This would strike a blow at the
improving outcomes of skill training. skills in India, have been and continue very root of the entrenched caste evil

YOJANA May 2021 39

 the socio-economic profile of the
district population, the skills history
of local communities, and their
changing or emerging aspirations.
Decentralised district skill planning
should be able to ensure that
everyone’s potential and aspirations
are reflected and addressed through
the micro-level study of district
industry, economic activity, level
of education, etc. General criticism
of skill training administration is
that it doesn’t emphasise finding the
fit between the opportunities and
trainees’ attitudes and aspirations.
There are many professional agencies
with sophisticated tools built using
in society and lead to the creation of a that are far from remunerative or interest and attitude mapping vis-
more equitable and just social system. even complete if viewed from the a-vis the occupational themes. To
But for all this to happen it is not narrow confines of the district alone. work with these agencies some
merely skill training on machines but To provide opportunities in careers understanding of psychology and
the whole planning and management in tourism to aspiring local youth, the psychometry is required. Not an
of skill training over delineated district planners would need to have expert level of understanding but just
geographical and administrative the composite picture of national and enough to demand the agencies to use
units viz. districts which would state tourism maps/destinations/policy tools to gauge the trainee interests
make sustained mechanisation a and derive from these the particular and offer qualified advice on the
reality and allow for identification slot that their district could occupy in choice of courses available. Likewise,
of persons, opportunities, and their the larger picture. Local-level tourist district skill planners would have to
access to different trades. Safai attractions cannot by themselves be learn to distinguish between trades
work is an obvious and universal converted into money-making tourist that give livelihoods to people and
example but there are several lesser destinations nor are the jobs available trades which have a growth potential
non-remunerative and often stagnant locally for transporters and guides if the beyond the local at state, national or
trades in which skill training needs to training was confined to the potential international levels where the nature
be re-invented and planned. District- of the district. To understand the extent of skill training would need to be
level skill planners must learn about and scope of trades and professions expert and state-of-the-art.
the potential of leveraging skill to dovetail neatly the district’s place The empowerment of DSC
development for social justice and in the scheme of things, DSCs need and their expanding role would
economic growth. training in skill management. necessitate financial resources and
Another important area in which District skill planning also needs the means of raising them, whether
capacity-building is needed is the to have a thorough understanding of they come from state budgetary
ability and understanding of the allocations or innovative revenue-
planners to recognise the backward generation models developed by
and forward linkages of district skill To provide opportunities in DSC themselves. This would mean
plans to integrate them with state- careers in tourism to aspiring the need for training in financial
level and national-level planning and local youth, the district planners management. They are also now
opportunities. Take the example of would need to have the expected to interact with industry
tourism - most districts jump to the representatives such as local
composite picture of national
conclusion that skill training in aspects industry and trade chambers, sector
of tourism at the district level would
and state tourism maps/ skill councils, experts including
result in an inflow of tourists, revenues, destinations/policy and derive professional consultants and MGN
and consequently jobs. Nothing could from these the particular slot Fellows. Courses in self-development
be further from the truth. Tourism that their district could occupy and interpersonal communication
and heritage conservation for public in the larger picture. and other softer aspects will also help
consumption are complex activities them be more effective. 

40 YOJANA May 2021

 Federal Governance

Challenges in Federalism and the Way Forward

Sameera Saurabh

A diverse and large country like India requires a proper balance between the six pillars
of federalism: autonomy of states, national integration, centralisation, decentralisation
nationalisation, and regionalisation. Extreme political centralisation or chaotic political
decentralisation can both lead to the weakening of Indian federalism. The right balance
would prevent the Union government from repressing state autonomy beyond a point while
guarding the states against divergence that can threaten national unity. Controlling these
extremes is a challenge, as federalism must reconcile the need for national unity on the one
hand, and on the other, regional autonomy.

T
he Indian Constitution laid During the Constituent Assembly sphere.” Other prominent members of
down a political system debates, the first Prime Minister, the assembly also demanded a stronger
which is federal in nature. Jawaharlal Nehru cautioned that “it Union government necessary for
There are two tiers of would be injurious to the interests India’s survival and political stability,
government: at the national level and of the country to provide for a weak given its vast diversity based on
the state level. However, the Indian central authority which would be religion, language, caste and ethnicity.
Constitution has structurally made incapable of ensuring peace, of However, it is incorrect to
the Union government more powerful coordinating vital matters of common conclude that India’s constitutional
than the states—therefore the paradox concern and of speaking effectively for structure is entirely tilted towards
of “centralised federalism.” the whole country in the international empowering the Union government

The author is Director in Government of India with work experience ranging from policy formulation and implementation in External
Affairs, International Labour Standards, G20, BRICS, Rural Development and Commerce. Email: [email protected]

42 YOJANA May 2021

 At other times there has been broad
agreement on the need for change.
The most important moment
for federalism in this phase is the
revelation of the vital role of state
governments on the ground level
in managing the Covid-19 crisis in
India. After initial challenges, the
Union government ceded adequate
space and autonomy to the states to
strengthen their healthcare facilities,
manage the localised lockdowns, and
implement social security measures to
mitigate the impact of the pandemic.
As health remains a state subject, the
states—regardless of their political
equation with the Union government
in most cases—worked as main
agents of healthcare providers and
governance providers within their
over the states. There are some states, albeit with a unitary bias. The jurisdiction, with the Centre playing
highly crucial federal features in constitutionally mandated  Finance the coordinating role. However, as the
the Indian Constitution. Australian Commission recommends the division political party at the centre occupies
Constitutional expert K.C. Wheare of revenues between the centre and power in many states, either on its own
once described the Constitution of the states, with the centre traditionally or in alliance, regional counter to the
India as “quasi-federal”: “Indian retaining a significant majority of the dominance of the Union government
Union is a unitary state with pool. But the specific contours of this has been considerably weaker than in
subsidiary federal features rather than relationship have changed over time the previous phase.
a federal state with subsidiary unitary — for example, with the introduction The initial stages of the Covid-19
features.” Quasi federalism may have of the Goods and Services Tax. response highlighted the unitary tilt
its issues like the opportunity costs of These changes have sometimes in the Indian federal structure. The
decentralization, which materialize come as a function of the raw assertion central government implemented
in terms of unexploited economies of political power from the centre. a national lockdown using its powers
of scale; the emergence of spillover under a central disaster management
effects among jurisdictions, and the law. The Ministry of Home Affairs
risk of cost-shifting exercises from issued extensive guidelines to states
The most important moment
one layer of the government to the for controlling the pandemic. This law
other. for federalism in this phase is
empowers the central government to
the revelation of the vital role
Federal Governance During commandeer state and local authorities
Covid-19 of state governments on the if necessary. State governments
ground level in managing the followed the Centre’s orders even
India’s response to the Covid-19
pandemic has shifted the balance of
Covid-19 crisis in India. After though they have independent
its federal structure. The pandemic initial challenges, the Union powers under a more specific law,
has enabled the central government government ceded adequate the  Epidemic Diseases Act, 1897.
to implement far-reaching reforms space and autonomy to the State governments requested the
traditionally considered the domain states to strengthen their central government to continue
of states. This exercise by the central its administration of the national
healthcare facilities, manage lockdown during its initial phase. In
government indicates its willingness
to use the levers of federal power to
the localised lockdowns, and doing so, states ceded considerable
implement significant reforms. implement social security decision-making power and political
measures to mitigate the capital to the central government.
India’s Constitution lays out a
detailed scheme for the separation of impact of the pandemic. Subsequent phases of the
powers between the centre and the lockdown have seen their autonomy

YOJANA May 2021 43

restored, but Indian states now have Reforms in the agricultural sector government side-step the powers of
less functional power than the centre. may impact state autonomy but are states in this regard but the Centre has
Since the national lockdown required necessary for growth and prosperity. to consider the welfare of the entire
shutting down almost all economic Agriculture is a state matter in India, country and its citizens in a long-
activity, State Government had and states oppose even modest reforms term holistic view and not merely the
a drastic reduction in revenue. Even suggested by the central government. interests of a single state.
before the lockdown, many states in The recent reforms changed the While some states such as Punjab
India had already breached — or came long-standing agricultural marketing have  voiced opposition  to specific
close to breaching — their mandated system, which monopolised trade in reform areas (agriculture), most states
fiscal deficit limits. The lockdown agriculture within states and prevented have not opposed these measures in
has further increased their financial the growth of a more efficient any significant way. Both measures
dependence on the centre. agricultural marketing system. — the increase in borrowing limits
In May 2020, India’s Finance Ordinances passed by the central and the agricultural reforms — are
Minister announced a  series of examples of the centre using their
reforms  to facilitate India’s post- The most important moment power to push much needed reforms .
lockdown economic recovery. It has also come about when
for federalism in this phase is
One such measure has been the revelation of the vital role India’s ruling party is the country’s
a conditional increase in the dominant political party. It is
of state governments on the
borrowing limit for states. The central noteworthy that some reforms, such
government enhanced the borrowing ground level in managing the as those in agriculture and labour
limit of state governments from 3 Covid-19 crisis in India. After markets, are dismantling policies
percent to 5 percent of their gross initial challenges, the Union established in an earlier era of political
state domestic product. But only the government ceded adequate hegemony in the three decades
first 0.5 per cent of this increase is space and autonomy to the following India’s independence. It
unconditional — a further 1 percent suggests that federal relations in
states to strengthen their
will be permitted only if the borrowing India are a function of political forces
is linked to specific reforms such healthcare facilities, manage more than structural constraints. State
as debt sustainability, job creation, the localised lockdowns, and powers seem to increase relative to the
power sector reforms and urban implement social security centre in the absence of single-party
development. A final 0.5 percent will measures to mitigate the impact dominance, and wane as single-party
be permitted only if states achieve key of the pandemic. dominance, increases. In addition to
milestones in these areas. its other effects, the pandemic may

44 YOJANA May 2021

have merged a new phase of federal the State Governments and ensure that trying to amend existing ones, the
relations, where states increasingly its national legislations and national Central Government consults all
accept the reform priorities of the law is not in contravention to any of State Governments and in today’s
centre in a manner not seen in a the provisions of the International age, draft legislations are shared
generation. Convention before ratifying. A online on websites for larger outreach
While drafting or enacting any vigorous consultative process with and stakeholder consultations. For
legislation for the entire country, all State Governments usually occurs example, the Centre is drafting
the consultative process with the which includes workshops and the Model Tenancy Act and has
State Governments takes the central conferences and several brainstorming involved all State Governments and
stage. However, in such diversity it is sessions with all the stakeholders. stakeholders in giving their views and
often very difficult to find a common Only when all the State governments suggestions.
platform to enact legislation which will agree to the proposed legislations or
The adoption of the market
find resonance with each state as many any possible amendments, can the
economy heralded a new era in
times certain problems and issues may Centre move forward its proposal for
which States came to occupy a
be specific to a particular state and may ratification.
strategic position in India’s market led
not meet national consensus. Most times, seeking uniform economy. The Centre has even gone
For example India is a consensus with all states in a proposed to the extent of encouraging states to
member of the ILO : International timeframe may become a challenge. negotiate loans / FDI with overseas
Labour Organization and we have While 34 States have notified rules banks / institutions directly since the
ratified several core Fundamental under RERA, West Bengal has 1990s. With the Centre’s grants in aid
Conventions of the ILO like Equal enacted its own legislation HIRA, no longer being seen as the only source
Remuneration Convention , Worst which stands challenged before the for financing their expenditure, States
Forms of Child Labour, Abolition Supreme Court. compete to attract FDI. And positively
of Forced Labour, Minimum Age In such instances, the political so, the Centre is not being seen as
Convention and others like Maritime leaning of the State Government an obstacle but as a facilitator. Still,
Labour Convention etc but even may also influence its policy making approval for FDIs are centralized with
before ratifying a convention which process if it is not on good terms with the DPIIT being the nodal Ministry at
will have international obligations, our the Central Government in power. the centre for FDI approvals. In many
Central Government has to consult all While drafting new legislation or cases, the DPIIT has to transfer the

YOJANA May 2021 45

proposal for FDI licensing to the other laws made by Parliament and any
central Ministries in whose Rules existing laws which apply in that
of Business the subject matter of Foreign economic policy is no State. If the state government fails
proposal may fall . In proposals where longer a central preserve with to do so, the executive power of the
land border issues or security issues the emergence of paradiplomacy Union can give such directions to a
arise, the concurrence of other nodal by the States. Economic State as the Government of India finds
ministries may also be sought. globalization has made it them necessary.
Paradiplomacy by the States possible for the States to interact The President can impose
President’s Rule in the States which
Foreign economic policy is no with respective investors in
refuse to enforce the law against the
longer a central preserve with the foreign countries in a de facto Centre’s directions under Article 356
emergence of paradiplomacy by the sense, if not in a de jure sense. or take cognisance of Article 365.
States. Economic globalization has
Investment promotion activities This reading was well evident in S.R.
made it possible for the States to interact
abroad indicate this fact. Bommai v. Union of India positioned
with respective investors in foreign
Indian federalism decisively.
countries in a de facto sense, if not in
a de jure sense. Investment promotion The Centre, therefore, has a Conclusion: The Way Forward
activities abroad indicate this fact. more responsible and complex role A diverse and large country like
Such initiatives have helped some to perform. In granting license to India requires a proper balance between
states in their economic development an overseas entity, it has to examine the six pillars of federalism: autonomy
and reduced their financial dependence the proposal from many angles. It is of states, national integration,
on the Centre. The decision of the not limited solely to the business/ centralisation, decentralisation
Gujarat Government in 2014 to set profit it may bring to the State nationalisation, and regionalisation.
up international desks independently coffers. Whereas, the complexity of Extreme political centralisation or
in USA, China, Japan for facilitating examination may not be appreciated chaotic political decentralisation can
“INVEST IN VIBRANT GUJARAT” by the State Government and the both lead to the weakening of Indian
by overseas investors is perhaps the first Centre may be construed as taking too federalism. The right balance would
attempt by any state to start overseas much time and not acting as per the prevent the Union government from
facilities to attract FDI directly. wishes of the State Government. repressing state autonomy beyond a
However, such enterprise may Often, the State Governments may point while guarding the states against
also raise issues for the sovereignty feel that the Centre is interfering with divergence that can threaten national
or security of the country considering its jurisdiction where as the Centre has unity. Controlling these extremes
that India is largely surrounded by to adopt a larger view which will benefit is a challenge, as federalism must
neighbours who are hostile and we most or all its citizens irrespective of reconcile the need for national unity
face the challenge of reconciling the the states’ positions. Article 256 of on the one hand, and on the other,
demands of opening up further in the Constitution obligates the State regional autonomy. 
a globalised economy with related government to exercise its executive (The views expressed in the
security concerns. power to ensure compliance with the article are that of the author.)

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46 YOJANA May 2021

 'Azadi Ka Amrit Mahotsav' Series

Progress in Human Development since Independence

Naresh Gupta

Eradication of poverty has been a major objective of planned development

in India. Poor quality of life, deprivation, malnutrition, illiteracy and low
human resource development are characteristics associated with poverty.
During the 1950s and 1960s, large investments in physical infrastructure
were seen as the primary means of development. In fact, until the mid-1960s,
the main thrust of development policies all over the world was to accelerate
the growth process since the ‘trickle down’ mechanism was supposed to take
care of distributional objectives.

Concept of Human Development in terms of regions, provinces, gender, races, ethnic groups
In 1990, the time had come for a broad approach to and the rural-urban divide1.
improving human well being that would cover all aspects of A gender-related development index (GDI) and a
human life, for all people. The term “human development” gender empowerment measure (GEM) emerged in 1995.
is accepted in the development economics literature as an The GDI measures achievements in the same dimensions
expansion of human capabilities, a widening of choices, and variables as the HDI, but considers inequality in
an enhancement of freedom and the fulfilment of human achievements between men and women. The GEM
rights. indicates whether women are able to actively take part in
Human Development Reports and Measurement economic and political life. It focusses on participation,
measuring gender inequality in key areas of economic and
The initiation of the above approach marked the political participation and decision-making2.
beginning of the annual series of Human Development
Reports- the first Human Development Report of In 1997, a composite measure for multi-dimensional
UNDP was published in 1990. In contrast to the GNP poverty, the Human Poverty Index (HPI) was
– the only other widely used indicator of a country’s introduced.
overall development – the Human Development
Index (HDI) reflects the average achievements along
three dimensions of human development: longevity,
educational attainment and command over resources
needed for a decent living.
However, the HDI does not reflect the deprivation
or the distributional aspects of development, particularly
inequality. Constructing composite indices to account for
gender inequalities for the first time in 1995 took care
of it. Second, in 1997, a composite index was proposed
and constructed for measuring the multidimensionality of
poverty. Third, these composite indices were disaggregated

The author is a retired IAS officer. He recently wrote a book, "Human Development in India". Email: [email protected]

48 YOJANA May 2021

 There has been a change in the methodology of period, India's GNI per capita also increased, registering a
computation of HDI from 2010. The 2014 HDR introduced rise of nearly 274%.
changes to minimum and maximum values (goalposts) The UNDP compared India’s value in the HDI
which are now fixed rather than set at the observed values. with other countries in South Asia, viz, Bangladesh and
The minimum and maximum levels for the dimension Pakistan. As against India’s rank at 131, Bangladesh
indicators are currently set as follows: ranked at the 133rd position, while Pakistan stood at 154th
• Life expectancy: the minimum value is set at 20 years. place. In the South Asian region, India’s HDI is more than
The maximum value is fixed at 85 years. the region’s average which stands at .641, while India is
• The minimum value for both education variables is also above the average value of 0.631 among the medium
set at 0. The maximum values for mean years and HDI category countries.
expected years of schooling are fixed at 15 and 18 In the UNDP’s Human Development Report of
years, respectively. 2017, Francine Pickup, Country Director (then), UNDP
• GNI per capita (2011 PPP): the minimum value is India, noted India's steady progress in improving its
$100. The maximum value is capped at $75,000. HDI value. “The Government of India is committed to
improve the quality of life for all its people. The success
India’s Ranking in Human Development of India’s national development schemes like Beti
Out of 189 countries, India ranks 131 on the Human Bachao Beti Padhao, Swachh Bharat, Make in India,
Development Index 2020. With an HDI and initiatives aimed at universalizing
value of 0.645, the country fell in to the A gender-related development school education and health care,
medium human development category. will be crucial in ensuring that the
index (GDI) and a gender
The UNDP in to its country report gave upward trend on human development
some statistics tracing India’s journey in empowerment measure (GEM) accelerates and also achieve the Prime
human development between 1990 and emerged in 1995. The GDI Minister’s vision of development for all
2019. The report stated that since 1990, measures achievements in the and the key principle of the Sustainable
the HDI value of India has increased same dimensions and variables as Development Goals -- to leave no one
from 0.429 to 0.645, registering an the HDI, but takes into account behind.”
increase of over 50%. During the same
inequality in achievements Millennium Development Goals
period, the life expectancy at birth in
(MDGs)
India rose by nearly 12 years, while the between men and women. The
mean years of schooling witnessed an GEM indicates whether women In September 2000, building
increase of 3.5 years. During this while, are able to actively participate in upon a decade of major United
the expected years of schooling also economic and political life. Nations conferences and summits,
rose by 4.5 years. Moreover, during this 149 world leaders countries came

YOJANA May 2021 49

 Sustainable Development Goals (SDGs)3
Goal Target
1. Eradicate extreme poverty 1. Halve, between 1990 and 2015, the proportion of people whose income is less than
and hunger $1 a day
2. Halve, between 1990 and 2015, the proportion of people who suffer from hunger
2. Achieve universal primary 3. Ensure that, by 2015, children everywhere, boys and girls alike, will be able to
education complete a full course of primary schooling
3. Promote gender equality 4. Eliminate gender disparity in primary and school education, preferably by 2005 and
and empower women in all levels of education no later than 2015
4. Reduce child mortality 5. Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate
5. Improve maternal health 6. Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio
6. Combat HIV/ AIDS, 7. Have halted by 2015 and begun to reverse the spread of HIV/ AIDS
malaria and other diseases 8. Have halted by 2015 and begun to reverse the incidence of malaria and other major
diseases
7. Ensure environmental 9. Integrate the principles of sustainable development into country policies and
sustainability programmes and reverse the loss of environmental resources
10. Halve by 2015 the proportion of people without sustainable access to safe drinking
water
11. Have achieved by 2020 a significant improvement in the lives of at least 100 million
slum dwellers
8. Develop a global 12. Develop further an open, rule-based, predictable, non-discriminatory trading and
partnership for development financial system (includes a commitment to good governance, development, and
poverty reduction-both nationally and internationally)
13. Address the special needs of the least developed countries (includes tariff- and quota-
free access for exports, enhanced programme of debt relief for and cancellation
of official bilateral debt, and more generous official development assistance for
countries committed to poverty reduction)
14. Address the special needs of landlocked countries and small island developing
States (through the Programme of Action for the Sustainable Development of Small
Island Developing States and 22nd General Assembly provisions)
15. Deal comprehensively with the debt problems of developing countries through
national and international measures in order to make debt sustainable in the
long term
16. In cooperation with developing countries, develop and implement strategies for
decent and productive work of youth
17. In cooperation with pharmaceutical companies, provide access to affordable
essential drugs in developing countries
18. In cooperation with the private sector, make available the benefits of new
technologies, especially information and communications technologies

together at the United Nations Headquarters in New York 4. to reduce child mortality;
to adopt the United Nations Millennium Declaration. 5. to promote maternal health;
The United Nations Millennium Development Goals
(MDGs) are the eight goals set by the 189 UN member 6. to fight malaria, HIV/AIDS, and other diseases;
states in September 2000 and agreed to be achieved by 7. to promote environmental sustainability; and
2015. There are 8 goals, 18 targets, and 48 performance
8. to develop a universal partnership for development.
indicators. The following are the eight Millennium
Development Goals: Sustainable Development Goals (SDGs)3
1. to eliminate extreme poverty and hunger; The Sustainable Development Goals (SDGs),
otherwise known as the Global Goals, are a universal call
2. to achieve global primary education;
to action to end poverty, protect the planet and ensure that
3. to empower women and promote gender equality; all people enjoy peace and prosperity. These 17 Goals are

50 YOJANA May 2021

an inclusive agenda.
Goal 1. End poverty in all its forms everywhere
Goal 2. End hunger, achieve food security and improved
nutrition and promote sustainable agriculture
Goal 3. Ensure healthy lives and promote well-being for
all at all ages
Goal 4. Ensure inclusive and equitable quality education
and promote life-long learning opportunities for all
Goal 5. Achieve gender equality and empower all
women and girls
Goal 6. Ensure availability and sustainable management
of water and sanitation for all
Goal 7. Ensure access to affordable, reliable, sustainable,
and modern energy for all
Goal 8. Promote sustained, inclusive and sustainable
economic growth, full and productive employment and
decent work for all
Goal 9. Build resilient infrastructure, promote inclusive
and sustainable industrialization and foster innovation Livelihood Mission (DAY- NRLM)

Goal 10. Reduce inequality within and among countries • Pradhan Mantri Gram SadakYojana

Goal 11. Make cities and human settlements inclusive, • The Jawaharlal Nehru National Urban Renewal
safe, resilient and sustainable Mission

Goal 12. Ensure sustainable consumption and production • Deendayal Antyodaya Yojana - National Urban
patterns Livelihood Mission (DAY – NULM)
• National Food Security Mission
Goal 13. Take urgent action to combat climate change
and its impacts • Integrated Child Development Services (ICDS)
Goal 14. Conserve and sustainably use the oceans, seas • National Health Mission
and marine resources for sustainable development GOAL 2: ACHIEVE UNIVERSAL PRIMARY
Goal 15. Protect, restore and promote sustainable use of EDUCATION
terrestrial ecosystems, sustainably manage forests, combat • Sarva Shiksha Abhiyan
desertification, and halt and reverse land degradation and
halt biodiversity loss • Mid Day Meal Scheme
• Early Childhood Care and education under ICDS
Goal 16. Promote peaceful and inclusive societies for
sustainable development, provide access to justice for all GOAL 3: PROMOTE GENDER EQUALITY AND
and build effective, accountable and inclusive institutions EMPOWER WOMEN
at all levels • Sarva Shiksha Abhiyan
Goal 17. Strengthen the means of implementation • Beti Bachao Beti Padhao
and revitalize the global partnership for sustainable
development. • Kasturba Gandhi BalikaVidyalaya Scheme

Important Programme Initiatives/ Schemes launched • Incentives to Girls for Secondary Education
in India having a bearing on MDGs • Rashtriya Madhyamik Shiksha Abhiyan
GOAL 1: ERADICATE EXTREME POVERTY AND • Rashtriya Uchchatar Shiksha Abhiyan
HUNGER • Mahila Samakhya Programme
• National Rural Employment Scheme (MGNREGA) • Saakshar Bharat
• PradhanMantriAwasYojana - Gramin • Kishori Shakti Yojana and Rajiv Gandhi Scheme for
• Deendayal Antyodaya Yojana - National Rural Empowerment of Adolescent Girls – SABLA

YOJANA May 2021 51

 GOAL 7: ENSURE ENVIRONMENTAL SUSTAIN-
ABILITY
• National Afforestation Programme
• National Mission for a Green India
• National CFC consumption phase-out plan
• National Rural Drinking Water Programme
• Swachh Bharat Abhiyan
• Atal Mission for Rejuvenation and Urban
Transformation (AMRUT)
• Pradhan Mantri Awas Yojana
GOAL 8: DEVELOP A GLOBAL PARTNERSHIP
FOR DEVELOPMENT
[TARGET 18 : In cooperation with the private sector,
make available the benefits of new technologies, especially
information and communications
47. Telephone lines and cellular subscribers per 100
population
48 A. Internet subscribers per 100 population
48B. Personal computers per 100 population]
• National Knowledge Networks
• National E-Governance Plan
• State Wide Area Networks
• Digital India Programme
• Support to Training and Empowerment Programme
Bare Necessities Index
• Mahatma Gandhi National Rural Employment
Availability of “bare necessities” such as housing, water,
Guarantee Act
sanitation, electricity and clean cooking fuel, improved
GOAL 4: REDUCE CHILD MORTALITY across all states in the country in 2018 compared to 2012,
• National Health Mission the Economic Survey for 2020-21 showed based on the first-
ever BNI (bare necessities index), released on 28.01.2021as
• Integrated Child Development Services (ICDS)
part of the Economic Survey. The BNI has been developed
• Rashtriya Bal Swasthya Karyakram for rural, urban and all-India level using data from two
GOAL 5: IMPROVE MATERNAL HEALTH NSO (rounds 69 and 76) on drinking water, sanitation,
hygiene and housing conditions. The index summarises 26
• National Health Mission indicators on five dimensions — water, sanitation, housing,
• Integrated Child Development Services (ICDS) micro-environment, and other facilities (assessed using
indicators like access to the type of kitchen, ventilation of
• Indira Gandhi Matritva SahyogYojana
the dwelling unit, access to a bathroom, electricity and type
• Pradhan Mantri Surakshit Matritva Yojana of fuel used for cooking). The survey reports that improved
GOAL 6: COMBAT HIV/AIDS, MALARIA AND access to “the bare necessities” has led to improvements in
OTHER DISEASES health indicators and correlates with future improvements in
education indicators. 
• National AIDS Control Programme
TARGET 8: Have halted by 2015 and begun to reverse the Endnotes
incidence of malaria and other major diseases 1. From Readings in Human Development: Concepts, Measures and
Policies for a Development Paradigm- Chapter Evolution of the
• National Vector-Borne Disease Control Programme Human Development Index by SelimJahan (page159)
2. Ibid
• Urban Vector-Borne Diseases Scheme
3. http://www.undp.org/content/undp/en/home/sustainable-
• Revised National TB Control Programme development-goals.html

52 YOJANA May 2021

 Economics of Auctions

Radio Frequency Spectrum Allocation

Dr Pratap C Mohanty
Dr Karun Rawat

In an era of cellular communication, the radio frequency spectrum is an important resource

which fuels our daily activities related to connectivity as well as entertainment. Whether it is
television, cell phone or internet services, all of them exploit the radio frequency spectrum,
making it an important resource for revenue generation.

T
he 2020 Nobel Prize in Economics was McAfee, for the 1994 U.S. Federal Communications
awarded to two economists–Paul R. Commission’s (FCC) radio-spectrum auction. Other
Milgrom and Robert B.Wilson–who auction designs they developed are: Share Auctions,
populated the auction theory, especially Combinatorial Clock Auctions, and Incentive
since the introduction of USA’s spectrum auction Auctions. Prof. Roger B. Myerson in 2007 and Prof.
in 1994. Both of them developed several innovative Jean Tirole in 2014 received this coveted prize for their
and valuable formats and designs. Among them, contribution to the theory of mechanism design, and
Simultaneous Multiple Round Auction (SMRA) regulation and competition policy respectively which
has been very famous which is in part with Preston used auction theory as a stepping stone.

Dr Pratap C Mohanty is Assistant Professor, Economics, IIT Roorkee. Email: [email protected]

Dr Karun Rawat is Associate Professor, Electronics and Communication (specialisation in Radio Frequency), IIT Roorkee.
Contact: https://karunrawat.com

54 YOJANA May 2021

 Following the exponential rise of a challenging trade-off between raising
demand for mobile communication in The multi-object auction applies revenue and allocating the spectrum
the early 1990s and the 1991 Laureate in the case of homogenous or efficiently. This year’s Nobel laureate
Ronald H. Coase’s expositions of the contributes significantly to addressing
1950s, the broadcasting licenses to the
divisible objects like government the barriers to trading interrelated
firms have been made on a competitive debt and electricity and the objects. Wilson (1979) works apply
price mechanism basis which has been heterogeneous or non-identical to the common-values model such as
most efficient. This led the FCC of the multiple objects such as radio auctioning of shares.
U.S. to take a decision on allocating frequencies or bus routes, which Wilson, in 1969 took the crucial
auction in radio-spectrum licenses. are of either complements steps in developing a theory of auction
Auctions are broadly of two or substitutes. These involve using the Bayesian Nash equilibria in
types: Single and multiple items exceptionally large values, and the mineral rights model as having
auctions. Classical auctions are of interdependent values. In the extended
governments face a challenging
four types: English auction, Clock or model in 1967, he explained the role of
Dutch auction, First-price auction, trade-off between raising revenue information asymmetries in common-
Vickrey or Second-price auction. The and allocating the spectrum value auctions. Various other authors
modern form of auction extended to efficiently. also applied the common-values model
the private value models and ex-ante including Wilson (1977), Milgrom
asymmetries. Vickrey also found the First-price auction (1979, 1981), Engelbrecht-Wiggans et al. (1983) and
to be inefficient with asymmetric bidders, as opposed Maskin and Riley (2000).
to the Second price and English auctions, which are In spectrum auctions, bidders generally prefer
always efficient. These are due to the issues of revenue combinations of complementary licenses which is more
generation. complex than substitute products. For example, phone-
The multi-object auction applies in the case of service providers often seek to cover large areas, and so
homogenous or divisible objects like government debt they prefer licenses for adjacent geographical regions.
and electricity and the heterogeneous or non-identical Given the efficiency focus, the eventual solution is to use
multiple objects such as radio frequencies or bus routes, the Vickrey-Clarke-Groves (VCG) auction. This is applied
which are of either complements or substitutes. These in the private values framework and a generalisation of
involve exceptionally large values, and governments face the Second-price auction. Early designs of the multi-

YOJANA May 2021 55

 Deployment of Additional Spectrum Acquired in
Networks of Telecom Service Providers
The bidding for spectrum in 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, and 2300 MHz bands took place in
March 2021. The e-auction was based on the Simultaneous Multiple Round Ascending Auction (SMRA) methodology.
The total quantity of spectrum for which right to use has been acquired in these bands is 855.60 MHz. The participants
did not bid in 700 MHz and 2500 MHz bands. Three bidders – Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio
InfocommLtd – participated in the auction.
Bidder-wise details of the quantity of spectrum acquired and amounts payable are as follows:

Bidder Total quantity (MHz) Total amount (Rs. crore)

Bharti Airtel Ltd 355.45 18,698.75
Vodafone Idea Ltd 11.80 1,993.40
Reliance Jio Infocomm Ltd 488.35 57,122.65
A total quantity of 2308.80 MHz spectrum was put to auction, including spectrum that is expiring up to December
2021. Of this quantity, bids were received for 855.60MHz of spectrum. Excluding spectrum in 700MHz and 2500MHz
bands, this is about 60% of the spectrum put to auction. In the 2016 spectrum auction, where there were 7 bidders, the
spectrum sold was 41% by quantity and 12% by value of the total spectrum put to auction. The corresponding figures
in the 2021 spectrum auction are 37% and 19% respectively, with 3 participants.
The quantity of spectrum put to auction and the spectrum acquired in different bands is as follows:

Band Quantity put to auction (MHz) Quantity acquired (MHz) Percentage

700 MHz (paired) 660 0 0
800 MHz (paired) 230 150 65.22
900 MHz (paired) 98.80 38.40 38.87
1800 MHz (paired) 355 152.20 42.87
2100 MHz (paired) 175 15 8.57
2300 MHz (paired) 560 500 89.29
2500 MHz (paired) 230 0 0
Total 2308.80 855.60 37.06
Spectrum Usage Charges (SUC) for the spectrum acquired in this auction will be payable at the rate of 3% of
Adjusted Gross Revenue (AGR) of the licensee, excluding revenue from wireline services. The auction is concluded
and these provisional results are subject to scrutiny and approval by the Government.
With the deployment of additional spectrum acquired in this auction in the networks of Telecom Service Providers,
the Quality of Service and customer experience of telecom consumers across the country are expected to improve.
The Union Cabinet had approved a proposal of the Department of Telecommunications to conduct spectrum
auction through which spectrum will be assigned to the successful bidders for providing commercial mobile services.
By winning the right to use spectrum through the auction, incumbent telecom service providers will be able to augment
their network capacity whereas new players will be able to start their services.
In the auction, bidders have to comply with parameters/conditions e.g. block size in which bidders will be able
to submit their bids, spectrum cap i.e. the maximum amount of spectrum that can be held by each bidder after the
completion of the auction, roll-out obligations, payment terms, etc. In addition to the bid amount, successful bidders
will also have to pay 3% of the Adjusted Gross Revenue (AGR) excluding wireline services as spectrum usage charges
for the spectrum won through this auction.
The spectrum auction is a transparent process of spectrum assignment to successful bidders. Sufficient spectrum
availability increases the quality of telecom services for consumers. It is relevant that the Telecom Sector today is a
key infrastructure provider with strong linkages with economic growth, direct and indirect employment generation,
and expansion of Digital India.

56 YOJANA May 2021

object auction largely abstracted from The Government intervention in
these problems. In spectrum auctions, bidders India has become apparent because
Another three multiple round generally prefer combinations of the exponential rise in demand for
auctions are also relevant so far as of complementary licenses wireless communication, given radio
demand for radio frequencies is frequencies a scarce commodity, the
which is more complex underneath conflicts in spectrum
concerned. They are SMRA, also than substitute products.
mentioned as Simultaneous Ascending management and their efficiency
Auction (SAA), Combinatorial Clock
For example, phone-service of use. For example, aggressive
Auctions (CCA) and Incentive providers often seek to cover bidding in India during auctions (in
Auctions. The two proposals on which large areas, and so they 2010, 2012 and 2015) led to major
SMRA was based are by Milgrom and prefer licenses for adjacent increases in spectrum prices. The
Wilson, and by Preston McAfee. On a average holding of the spectrum
geographical regions. Given the of Indian operators was 31 MHz
successful note, the FCC spectrum of efficiency focus, the eventual
1994 increased the auction to twice the as compared to the global average
expected amount (i.e. $20 billion) and
solution is to use the Vickrey- of 50 MHz in 2017. The Telecom
about $34 billion raised by the U.K. Clarke-Groves (VCG) auction. Regulatory Authority of India
3G spectrum auction in 2000. The (TRAI) in August 2018 highlighted
SMRA auction design for spectrum sales has been widely its recommendations on the auction of spectrum across
applied worldwide. Some versions of this are applied in several bands including two bands yet to be auctioned
U.S., Canada, U.K., Finland, India, Poland, Germany, in India, i.e., 3300 - 3400 MHz and 3400 - 3600 MHz.
Sweden, Norway, and Spain. After adopting of CCA for These bands are likely to emerge as the primary band
selling radio-spectrum licenses in the U.K. in 2008, many for 5G services. Spectrum pricing is an invaluable tool
countries followed suit, including Austria, Australia, to promote efficiency.
Canada, Denmark, Ireland, the Netherlands, Romania, The International Telecommunication Union (ITU)
Slovakia, and Switzerland. Milgrom led the team of proposes four different approaches for the valuation of
economists who advised going for wireless broadband the spectrum. They are:
services than from broadcast television resulted in the
1. Price from previous auctions duly indexed,
FCC adopting the new Incentive auction in 2017.
2. Estimation based on producer surplus,
The auctions reflect two efficiency concerns. Firstly, 3. A production function approach, and
the best productive suppliers minimise the costs. Secondly, 4. A revenue surplus approach.
this generates funds through markets than rigid taxation.
Economists observed that the per unit taxes (in dollar) TRAI also uses a multivariate regression method in
raise the social deadweight losses is between 0.17 to 0.56 addition to these approaches. There are often disputes
dollars. Conversely, the objective of maximal revenue of between the state and the operators in allocating and
a set of spectrum licenses may be too short-sighted and managing spectrums in India. However, India has been
lead to monopolisation. However, both approaches have following a ‘quasi-property rights’ regime to avoid the
been rejected by economists so far as net public welfare subjective administrative management to a market-based
is concerned. mechanism. 

YOJANA May 2021 57

 Do you know?

One Nation One Ration Card: ‘Mera Ration’ Mobile App

T he initiative One Nation One Ration Card allows all

NFSA beneficiaries, particularly migrant beneficiaries,
to claim either full or part foodgrains from any Fair Price
Shop (FPS) in the country through the existing ration
card in a seamless manner. Mera Ration Mobile App will
benefit especially those ration card holders who move to
new areas for livelihoods. The system which was started
initially in 4 States in August 2019 has been swiftly rolled
out in a very short period in 32 States/UTs by December
2020 and the integration of the remaining 4 States/UT
(Assam, Chhattisgarh, Delhi, and West Bengal) is expected
to be completed in next few months. At present, the system
covers nearly 69 Crore NFSA beneficiaries (about 86%
NFSA population) in the country and a monthly average
of about 1.5~1.6 Crore portability transactions are being
recorded under the One Nation One Ration Card (ONORC).
ONORC has proved to be a tremendous value-added
service to each NFSA beneficiary during the Covid-19
pandemic, particularly migrants, which allowed them to
avail the benefit of subsidised foodgrains with flexibility cards under National Food Security Act (NFSA). This
from any location wherever they were during the lockdown/ system allows all NFSA beneficiaries, particularly migrant
crisis period. The freedom of choosing any FPS was not beneficiaries, to claim either full or part foodgrains from
available earlier. During the period April 2020 to Feb any Fair Price Shop (FPS) in the country through existing
2021, a total of about 15.4 Crore portability transactions ration card with biometric/Aadhaar authentication in
have been recorded under ONORC. a seamless manner. The system also allows their family
The ONORC scheme is being implemented by the members back home, if any, to claim the balance foodgrains
Department for the nation-wide portability of ration on same the ration card. 

YOJANA May 2021 59

 General Awareness

Multiple Choice Questions

1. Justice N V Ramana is the new Chief Justice of 5. Consider the following statements with respect to
India appointed by the President. This is done by the powers of the Governor of a State:
exercising of the powers conferred by ……………. 1) The Governor can summon, prorogue and
of the Constitution of India. dissolve the State Assembly.
a) Clause (2), Article 124 2) The Governor can adjourn the sittings of the State
b) Clause (3), Article 123 Assembly.
c) Clause (1), Article 121 3) The Governor addresses the first session of the
d) Clause (2), Article 123 Legislative Assembly after elections.
4) The Governor causes to lay the annual budget in
2. Consider the following statements regarding the the State Assembly.
Chairman of the Legislative Council of a State in Which of the statements given above are correct?
India: a) 1 and 2
1) He is elected by the members of the concerned b) 1, 3 and 4
State Legislature. c) 2 and 3
2) He can be removed from his office by a resolution d) 2 and 4
passed by a majority of all those present and voting
members of the concerned State Legislature. 6. Who among the following got an 18 months’
Which of the statements given above is/are correct? extension as Securities and Exchange Board of
a) 1 only India (SEBI) Chairman?
b) 2 only a) Ajay Tyagi
c) Both 1 and 2 b) Surjeet Singh Deswal
d) Neither 1 nor 2 is correct c) Arvind Kumar
d) Yogesh Chandra Modi
3. Which one of the following is not a correct
statement regarding the provision of Legislative 7. Which of the following is not related to the powers
Council in the State Legislature? of the Governor?
a) The States of Bihar and Telangana have a) Diplomatic and military powers
Legislative Councils. b) Power to appoint Advocate General
b) The total number of members in the Legislative c) Summoning, proroguing and dissolving State
Council of a State shall not exceed one-third of Legislature
the total number of members in the Legislative d) Power to grant pardons, reprieves, respites or
Assembly. remission of punishments
c) One-twelfth of all members shall be elected
by electorates consisting of local bodies and 8. Which country has undergone a legislation
authorities. according to which its President will continue in
d) One-twelfth of all members shall be elected by power until 2036?
graduates’ residing in the State. a) Brazil
b) Russia
4. Who is the new revenue secretary appointed in the c) China
recent bureaucratic reshuffle? d) South Korea
a) Ajay Bhushan Pandey
b) Tarun Bajaj
c) Gyanesh Kumar 1. (a), 2. (d), 3. (c), 4. (b), 5. (b), 6. (a), 7. (a), 8. (b)
d) Ajay Seth Answers Key :

60 YOJANA May 2021

 Development Roadmap

...Continued from Cover II

The Journey to GST higher  and the revenues from the domestic transaction
The gross GST revenue collected in March 2021 is (including import of services) are  17% higher  than the
at a record of Rs. 1,23,902 crore of which CGST is Rs. revenues from these sources during the same month
22,973 crore, SGST is  Rs. 29,329 crore, IGST is  Rs. last year. The GST revenue witnessed a growth rate of
62,842 crore  (including Rs. 31,097 crores collected on (-) 41%, (-) 8%, 8% and 14% in the first, second, third
import of goods) and Cess is Rs. 8,757 crore (including and fourth quarters of this financial year, respectively, as
Rs. 935 crores collected on import of goods). compared to the same period last year, clearly indicating
the trend in the recovery of GST revenues as well as the
The government has settled Rs. 21,879 crores to economy as a whole.
CGST and Rs. 17,230 crores to SGST from IGST as
a regular settlement. In addition, the Centre has also GST revenues crossed above Rs. 1 lakh crore mark
settled Rs. 28,000 crores as IGST ad-hoc settlement in at a stretch for the last six months and a steep increasing
the ratio of 50:50 between Centre and States/UTs. The trend over this period are clear indicators of rapid
total revenue of Centre and the States after regular and economic recovery post-pandemic. Closer monitoring
ad-hoc settlements in March 2021 is Rs. 58,852 crore for against fake-billing, deep data analytics using data from
CGST and Rs. 60,559 crore for the SGST. The Centre has multiple sources including GST, Income-tax and Customs
also released a compensation of Rs. 30,000 crore during IT systems and effective tax administration have also
March 2021. contributed to the steady increase in tax revenue over the
last few months.
The GST revenues during March 2021 are the
highest since the introduction of GST. In line with the The chart below shows trends in monthly gross
trend of recovery in the GST revenues over the past five GST revenues during the current year. The table shows
months, the revenues in March 2021 are 27% higher than the state-wise figures of GST collected in each State
the GST revenues in the same month last year. During during the month of March 2021 as compared to
the month, revenues from import of goods were  70% March 2020.

State-wise growth of GST Revenues during March 2021 (Does not include GST on import of goods)