The Senior Analyst Jan. 2014 | Page 26

THE SENIOR ANALYST January 17th restructured NIF and decided that from the period of 2013-14 the disinvestment proceeds will be credited to an existing ‘Public Account’ under the head NIF and they would be used only for the approved purpose which includes. And the focus shifted to recapitalization of public sector banks and insurance companies, investment in RRBs and NABARD, investment in Metro projects and in Railways. BENEFICIARIES of NIF These proceeds of the disinvestment were being used to empower the nation socially and economically by investing in welfare programmes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Accelerated Irrigation Benefits Programme (AIBP), Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), Indira Awas Yojana and National Rural Employment Guarantee Scheme (NREGS) being a few of them. Let us analyze few of these programmes about what and how will they be able to bring about change in our economy. JNNURM The objective of this programme is to improve the infrastructure services in the urban areas of country, due to the fact that “ Almost 28% of people live in towns and cities as per 2011 census which is expected to go up to 40% by 2031, amounting to 60 crore people and contributing over 70% of the GDP”. Majority of these were from rural areas that used to be farmers, menial laborers and are out of work. Thus providing them with basic requisite infrastructural facilities was identified as a challenge by Government in the year of 2005. The crux of this mission is backed by Public-Private partnership with Government backing up to 35% of grants. Currently 7 Mega cities and 30 cities are covered under this mission objective and have 10 development projects in pipeline including the bus rapid transit system, slum rehabilitation. Jan 2014 Thus backing an objective which is addressing people who contribute up to 60-65% of our GDP can be considered as a smart investment and yields over the years would be bountiful. RGGVY This programme objective is to provide “free electricity connections to BPL (Below Poverty Line) households at the rate of Rs 3,000 per connection in villages and habitations with population of above 100”. Estimated capital subsidy requirement for this is Rs 23397 crore in 12th Five year plan period. The detailed breakup is given as per Exhibit#3 Year 2010-11 2011-12 2012-13 Budgetary outlay 5000 3600 4900 EXHIBIT#3 It could be understood that a country like India where peak power deficit range up to 10-12%, would it be less than ideal to make its six lakh villages to be self sufficient. As this would in turn improve the standard of living of rural 68% of population and have our economy prop up. MNREGA This program was touted to be the largest and most ambitious social welfare programme of w ܛ