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
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