Design of Hill Development: Lessons from the Plans of Uttar Pradesh and Himachal Pradesh Author(s): Mukul Sanwal

Reviewed work(s): Source: Economic and Political Weekly, Vol. 18, No. 7 (Feb. 12, 1983), pp. 220-229 Published by: Economic and Political Weekly Stable URL: http://www.jstor.org/stable/4371847 . Accessed: 13/03/2012 06:11
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SPECIAL ARTICLES

Design

of

Hill

Development

Lessons from the Plans of Uttar Pradesh and Himachal Pradesh

Mukul Sanwal
Hill development is primarily an exercise in regional planning. For the strategies for accelerating regional development we first need to identify the baisic problems preventing g7lowth. The hill areas have remained 'backward' for historical reasons, and because of limitations imposed by their geophysicdallconditions. Nearly three-fourths uf the land in hill areas belonigs to the government. Policies regarding its use, as well as public expenidituireto create itnfrastruictture facilities, affect growth and distriblution of income. chosen government policy can hiate a significant effect on the real inTherefore, carefully comes of the lowest income groups. Hill Development as Regional Planning THE hill areas are overwhelmingly rural, with 90 per cent of the total work force directly engaged in agriculture. The density of populationper hectare of cultivated land is nearly four times that in the plains, and there is heavy pressure on land. On an average,over 80 per cent of the total holdings are below 2 hectares; less land than 10 per cent of the 'cultivated is irrigated and is under high yielding for varieties. Opportunities work are limited. This accounts for the large out-migration and a "rnoney orderpension-home-economy".Income from employmentis more importantthan II income from land. Thereforehill deveprimarilymeans creation of Plan Expenditures Uttar Pradesh lopment in employment opportunities, and thus and Himachal Pradesh improvingliving standardsof the mass From the point of view of regiontal of the low income population and planning, Uttar Pradesh and Himnachal making the process of their developPradesh are similar. Both lie in the ment self-sustaining. central Himalayas. Their social mores The disparitiesin income and wealth have much in common. Their resource arising (in the plains.)as a result of endowment is similar. And they have the land policies of the Britishand the equal area and population (see Table 1). commercialisa- Their levels of development and inrecent industrialisation, with their con- frastructural facilities are also compation and urbanisation, are sequent social anitagonisms, largely rable (see Table 2). Their Plan outlays absent in the hills. In the hill areas are also the same (see Table 3). people generallyare poor. The village In both states, a key role has been community has retained its cohesive- accorded to public services, and the ness. The vast tracts of government level of these in the two states is similands, and the possibili- lar, except in the power sector. Both and community organisation,create states have the same road length per ties of commuinity opportunities for the design of hill sq kmnof area. The number of schools
development. there is development of institutions to ensure this. In addition, there has to be mobilisation of additional financial ,and human resources, for continued rural developmnent. With these goals, the sectoral allocation of the Plans incorporate the main thrust in the design of hill development. This paper compares the Plan expenditures of Uttar Pradesh and Himachal Pradesh, and the level of development and of infrastructure facilities in these states. The third part reviews concepts of regional planning and rural development, and the conditions prevailing in the hill areas. The fourth part suggests a design of hill development. state. Though more villages are affected by scarcity in Himachal, the coverage of scarcity villages is better in Uttai Pradesh. In the power sector, however, the difference between them is marked. More than twice the number of villages have been covered in Himachal Pradesh (53 per cent in 1980), as compared to in Uttar Pradesh (22 per cent in 1979). Hirnachal also has an installed capacity of nearly 10 times that in the hill region of Uttar Pradesh.

To fully utilise this potential,scarce resources shouldbe investedin strategic sectorson ' prioritybasis. This implies a design to see that they actuallyreach the low-income population and that
220

Uttar Pradesh and Himachal Pradesh have, nevertheless, followed different strategies of development. While the sectoral allocations for agriculture, industry and mining have been almost the same, there are large differences in the allocations made to other sectors. Himachal Pradesh has concentrated its major resources in the development of power, and investment levels in this sector have been nearly three times the investment level in Uttar Pradesh. In Uttar Pradesh priority has been given to basic needs - viz, education, health, water supply, roads - and the level of investment has been over four times in the case of education and over two times in the case of water supply and roads, when compared with Himachal Pradesh. According to the data in their respective state Plans, the growth rate in Himachal Pradesh has been almost tw,ice that in the hill areas of Uttar Pradesh. The Bhakra Dam in Kangra, and the fact that nearly half of the population of Hirnachal Pradesh is conper sq km of area is also the same; centrated in Kangra, with great potenUttar Pradesh has a lesser coverage of tial for agriculture, gives a certain adpopulation by the junior schools (about vantage. The implementation of the 80 per cent). In water supply, an equaT programmes and projects in HimachaL population as well as an equal number Pradesh, however, have had unexpecof villages have been covered in each ted consequences. Apples brought

ECONOMIC AND POLITICAL WEEKLY

TABLE

February 12, 1983 tlhrough the private sector, and in the normal growth of per capita incomes. Thouigh it has long term benefits2 it does not per se lead to increases in per capita income. Lack of opportunities for employment is the major problem of the hill areas. ThuLs,not only is there nlo accepted design for hill development, but the veiyv process of deve'opment has affected the ecology of the hills. This has led many to question the strategies followed so far and to suggest design for hill developmiient that takes ecological and employment considerations into account.

1: BASIC DATA Year Unit Sq. Kms Hec Lakh % UP Hills 51112 3404700 38.22
85.30

Items

Himachal Pradesh 55673 2171638 34.60 93.01 6.99

22.24

1971 Geographical area 1978-79 Forest area (Total) 1971 Census To talpopulation ,, Percentageof rural population ,, % of urban popula(ion ,, % of S C population ,, %ST population ,, % SCandS T Density of population per sq km of
area
,,

14.70
16.05 3.66 11.73 75

4.09
26.33 62

%
-

Totalvillages(inhabited) Holding by size

(a) Lessthan0.5 hec

,,

1976-77

Nos ?
0

15003
55.33

16916
34.36

(b)0.Shectol.Ohec (c) I.Ohecto2.Ohec (d) 2.0hecandabove Percentage of area under holdinigs, (a) Lessthan0.5 hec (b) 0.5hectol.0hec (c) 1.Ohecto2.Ohec (d) 2.0 hecand above Per capita Net area sown Percapita culciva(ionarea Source:

1976-77

% % % % %
0

18.14 15.61 12.92

20.32 21.94 22.36 5.04 9.12 19.46 66.38 0.14 0.23

'1977-78 1977-78

% Hec Hec

10.16 13.60 22.48 53.76 0.16 0.23

1III Concepts of Regional Planning

There are three basic approaches to regional planning. The strategy adopted inr flimachal Pradesh stfesses interregional trade. Large-scale cultivation of app;le wvas expected to lead to specialisation, accompanied by economies of scale which would make for higher productivity. The increasing income per capita would allow for higher savings and investments, which was expected to set in motion the process of development. However, with similar developments in other hill areas, imiprovements in the system of transport and commnuniication, and the price-elasticity of a perishable product, the result is a period of economic uncertainty in Himachal Pradesh [41. Horticulture in Himachal Pradesh has already become depeadent on the market. The second approach to regional planning stresses exploitation of the natural resource endowment, which virtually determines all other economic actiVities. Forests and minerals are natural resources of the exhaustive type. Unless a massive afforestation drive is initiated, the region can slump into stagnation once these resources are exhausted. This has become a real danger in Uttar Pradesh. Within these two basic approaches, the underlying idea is that a regional economy goes through a sequence of 'stages'. Specialisation in agriculture gives place to a tendency to industrialise and to diversify the territory sector leading to urbanisation. Locational factors, such as transport cost and power availability, facilitate 'growth centres' or industrial clusters, which in turn will require the services typical of the uirban environment. The spatial structure of a region is often sought to be explained by the 'implanting of poles of development'

Sixth Five Year Plan, Hill Region Uttar Pradeshand Himachal Pradesh. of requji-remlents the villagers for fuel, fodder, and building material. On ani average, the timber exported is tvice the consumption within the hill areas ly the villagers and the small industry [3]. That the problem is real has l)een accepted by government, which has stopped fellings above 1,000 metres and also slopes above a 300 gradient. and has appointed a committee of experts to examine the isstue of conservation of natural resources. The state Plan of Himachal Pradesh as well as the Plan of the hill areas o)f Uttar Pradesh clearly brings out the fact that, in real terms, there has been ai decline in per capita incomes in both states. The process of development, to a greater dcegree in the hills as compared to the plains, has led to poverty.' The bill people are dependent on goods produced ouLtsideand their cash incomes have not kept pace with inflation. Opportunities for local emp'oyment are limited and migration to the plains to seek jobs - mostly as domestic servants, in the armed forces, etc - has increased. These cash incomes provide for consuLmption needs: in 1973-74, Es 3.74 crore were received as remittainces through money orders, and Rs 81 lakh were disbursed as pensions, in Al-nora district of Uttar Pradesh. A studcIyof some vi,lages in Bhikiasen block in Almora. showved that over 60 per cenit of family income was through reniittance.s. Allocation of resources for
'basic nieeds' only imeans that critical levels of consumrption) in these caii be

p)rosperity to Himachal Pradesh. The area under apples has doubled in the last 10 years. The rnarketing problems with an eight-fold increase in production have been accentuated by an acute shortage of packing cases, despite the atlocation of about one lakh cubic of n-metres timber for this purpose. In the absence of packing cases farmers cannot transport their produce to the consuming cenitres in the plains, and are forced to sell them at considerably reduced rates to processing factories. The large-scale felling of trees for planting applesi and to provide packing cases is, moreover, causing concern to the government of Himachal Pradesh, anlidthe state government has; imposed a 25 per cent cut per annum on the felling of trees. The availability ot wood wvasexpecte(d to outstrip demand in 1982 [1]. In the hills of Uttar Pradesh, the thrust has been on access to governiment services through the provisions of basic needs and exploitation of natural resources. The outturn of timber and firewood has increased nearly five times during 1915-1960[2]. As in Himachal Pradesh, the ecological concem has become donminant,though for entirely different reasons. Major landslides, such as the one which wiped out Gugnani village on the Bhagirathi, and the 'Chipko movement' are qustioning the forest working plans. And the largesca'aefelling of trees for industrial uses hasi been to the detriment of the hill villages. The peoPIc ill the surirownding foresters, on the other hand, blame the denudation on the largely unregulated

reaichediat earlier
nment, than would

stages of deve7ophave been reached

221

February 12, 1988

TABI-E

ECONOMIC AND POLITICAL WEEKLY

INFRAS;i.IUCTiURAL FAC1LIrIIE;S

2:

LEVEL OF DEVELO01IENT AND

Items

Year

Unit

UP Hills

Himachat Pradesh 16.5 16.0 867.00 403.80 15.1 10.34 13.15 16.82 75 15 10 148.78 100.00 1V/5.00 158 38 14

the measurement of unemployment and underemployment with the implicit assumption of an organised labour market and wage relationship. Actually, open unemployment
. is

not

of gross irrigated area to gross cropped area 0/ of net irrigated area (o net sowni area Totalfoodgrain producion Area under H Y V ConsumPtion of FerPiliser per hec of gross cropped area Average yield ra(es of (i)Wheat

00

1977-78 1977-78 1979-80

,, ,,

24.93 000 (ollles 000 hec kg licc 25.31 2 980.99 273.76 31.8 13.t)1 15.27 c 000 li( 18'
,,

1978-79
,,

(ii)Maize

12.40

(iii)Rice Horticulture (A) Area under (i)Fruits (ii) Potato (iii) Vegetablc,

1977-78, 1979-80

7 27

21
140 230 85 144

(B) Product io.n of 1977-78 (i) Fruits 1979-80 (ii)Potato (iii) Vegetable Number of schools per lakh of populat ion 1979-80 (i)Junior basic school ,. (ii)Junior high school ,, (iii) Highersecondary school Number of schools per 100 sq km of area (i) Junior basic school (ii) Junior high school (iii) Higher secondary school Number of hospitals/dispensar-ies per lakh of population Number of beds in allopa(hic hospitals per lakhof populatioin

..

Numliber
,, ,,

29

14

1978-79
, ,,

12 2

1978-79 1979-80

Number

15 130

18 141

Water supply (i) % of problems (sacrcity) 1979-8) villages to (o(al villages (ii) % of problem (scarcity) villages 1979-80 covered to total villages (iii)of population covered to total 1979-80 population 1979-80 (iv) Total villages coVered 1979-80 (v) Total population covered 1979-80 Road length per 000 sq km of area Power 1979-80 (i)Installed eapaciBy

51.80 56.31

65.84 29.83 45.61

No Lakhi Kmn MW

3X8.10 5834 14.58 21.1 13.74

6428
15.78 20.0

113.53

(ii) % of electrified villages

1979-80

21.5

49. 2

Source: Sixth Five Year Plan, Hill Region, Uuar Pradesh anid Himachal Pradesh. --- which by their sales and purchases cause other directly aind indirectly related activities to expand. These have 'agglomeration' (collection of complementary activities) as well as 'junction' effects (enlargement of supply and demand possibilities once the transport system is completed). This theory does not relate to reality, because we can observe highly devThe regions. agricultural loped effects of transport cost minimisation upon locational choices do not fully explain the spatiail dispersion of activities. Nor do they explain why incomes per head should increase. Actually this is a theory for bringin-2 22

about a structural system of cities (and industrial units), and is suited to the developed areas, rather than underdeveloped areas. Through the application of this theory in the hills, the development projects have made a subsidy-oriented base without creating conditions for a self-generating economy[5]. development traditional These strategies do not take into account the fact that the basic thrust for increasing equitable distributioni of incomes has to be in the development of opportunities for employment. of Most: writings on the problemii rural
emnplo(yment teild to conlcenitrate o01

significant; people have to find some work even at very low wages. The perception of the problem in terms of underutilisation of labour is also not sufficient. There is need to expand employment opportunities, and need to increase productivity and incomes in -ural jobs. Only then will selflrural development be sustaining possible. In China large-scale afforestatioii [6] anid development of the rural sector, including animal husbandry, horticulture, water conservancy, and land improvement, has absorbed the labour force on the same farm land and also substantially raised the number of days of employment available to the entire labour force, with consequent in <L,rmvth incotnies I7]. There can l)e substantial areas in which economic policy in the countryside is determined and implemented by rural people. Such an agriculture based, employment-oriented development policy, has also been suggested for India [8]. An argument often put forward is that suLch a strategy will result in lower savings since emphasis is on the poor and they have a lower propensity to save. Lower savings, in turn, would provide an insufficient amount to finance the investment which is an engine of growth. First, it must be pointed out that the rate of saving-s is not related to rate of Second g rowth of countries [9]. savings and iinvestment need to be viewed in a wide perspective. Directly useful investment by the poor tends to grow, once they cross the threshold of purely fighting for survival and provided they feel certain that the benefits of such investment will accrue to them, and they are provided with the necessary knowhow. [10]. This strategy of large-scale afforestation and development of the rural sector suggests an alternative path of development for the hill areas; provide employment, contribute to asset formation in the long run, increase to the extent possible the supply of fuel, food and fodder, and be co-ordinated with rural development planning.

IV Design for Hill Development

Past experience points to several features of the hlill areas which call

ECONOMIC AND POLITICAL WEEKLY

TABLE-3: PLAN OUTLAYS, 1980-85

February 12, 1983 land-scape i', often barren at intermecliate heights ranging from 1000 mt1,600 mt. The soils are generally shallow and immature. Loss of protective vegetation leads to erosion by wind and water. Trees reduce soilmoisture by transpiration and the roots act as an anchor. On steep slopes, where forests have been cleared, landslides increasingly follow heavy rains (more than 80 per cent of the precipitation falls in July-September) destroying lives, soils and crops. Soil erosion causes rivers and Veservoirs to slit up. The threat of floods increases and the capacity of reservoirs is reduced.5 Sources for village irrigation and drinking water are adversely affected. Forestry for hill development should enable rural people, individually as well as collectively, to benefit from trees while restoring the ecological health Afforestation-nurseof the land[11. ries, stone-walling, soil preparation, planting, protection, and beating-up, can provide sustained employment. The employment potential has been estimated on an average at 230 mandays/hectare for plantation establishment, 100 mandays/hectare for protection, and 20 mandays/hectare for maintenance[12]. In the hill area of Uttar Pradesh alone, more than 10 lakh hectares of government land are available for afforestation. The programmes will be cost-effective, as recurring expenses will be minimised; it can also be self-financing and attract institutional credit.[13] It will thus be possible to maintain it on a scale that would have a real impact on rural employment (and the resultant outmigration) and poverty problems. For such a programme to be successful, there must be general acceptance by the masses. First, ownership of the forest resources must be with the rural communities. The needs of the people must be identified and the choice of species - broad leaved fodder trees - should be determined accordingly. Secondly, success will depend on at least two-thirds of the efforts going towards tending and proReintroduclng forests -vn tection[!4]. lands on which they once existed is more difficult than making existing forests productive. Improvement of the natural meadows should also be a specific objective. Thirdly, the time scale of forestry conflicts with the priorities of the poor, who naturally focus on meeting their daily needs; 223

Heads of Development

'Uttar Pradesh (Hills)

Hinachal Pradcsh

Proposed Percen- Per Ca- Proposed Percen- Per Catage to pita Outlay Outlay tageto pita (lalkhRs) Total Outlay (lakh Rs) Total Outlay Outlay (Rs) Outlay (Rs) 607.14 18950.00 207.56 21280.00 196.23 106.83 729.80 712.79 17.01 881.43 251.96 19895.00 2000.00 13855.00 11300.00 900.00 12885.00 1915.00 27.03 547.69 30.36 615.03 28.30 2.85 19.76 16.12 1.28 17.96 2.73 573.27 57.80 400.43 326.59 26.01 363.73 55.35

Agriculture & allied inclu23205.00 23.94 ding co-operation 8.18 Irrigation & power (618.83) 7933.00 Irragation (228.92) 7.74 7500.00 nower (389.91) 4.21 4083.00 Industry & mining (33) Transport &communications 27895.00 28.77 27243.00 28.10 (i)Roads & bridges 0.67 650.00 (ii) Tourism Social &community services 33688.00 34.75 9.93 9630.00 (i) General ediication (ii) Water supply & 15210.00 15.69 sanitation 0.15 143.00 Economicservices &others 96945.00 100.00 Grand total

397.96 5500.00 7.85 158.96 2.04 41.33 3.74 1430.00 2536.50 70100.00 100.00 2026.01

Note: In Uttar Pradesh, additional outlay in the PJan for the hill areas : Irrigation, Rs 228.92 lakh; power, Rs 389.91 lakh; and industry and mining, Rs 33 lakh; these are spent in hill areas on major projects. Souirce:Sixth Five Plan, Hill Region, Uttar Pradesh and Hiniachal Pradesh. for greater attention in designing future programmes, rather than treating hill development merely as an extension of plains development. Most of the development problems in the hills arise out of the basic limitations of their physico-geographical coondition. The main limitations are: First, planning is to be oriented to the topographical and agroclimatic conditions, the conservation of natural resources and the socio-cultural structure, through an appropriate land-use plan. Secondly, the thin and uneven dispersal of population and productive resources over vast areas (over 90 per cent of villages have a population of below 500 and account for two-thirds of the total rural population) in difficult terrain leads to a high cost of development of infrastructure and service facilities, and of their maintenance. Thirdly, inadequacy of research and operational expertise, relevant to the conditions and problems of hill areas. These set the parameters for the design of hill development. (1) The goal of raising the income level of the population should be met by a planning policy in which the basic thrust is the fullest use of natural resources for the promotion of productive employment, and for raising productivity. The most important natural resource are the forests, and forests will continue to occupy the most important place in the land-use pattern in the future (see Table 4). The hill terrain consists of steep hills and narrow valleys, the major' part of which are economically suited to and also ecologically requires, either a forestry programme or a pasture development programme. This land is almost entirely under government or community ownership. National planning must acknowledge the social function and local value of forests and their products, and the interdependent nature of forestry, animal husbandry, and agriculture which in fact forms the basis of the hill economy and way of life. What is needed is community forestry, stressing the social rather than purely commercial aspects; removing the division between industrial forestry and intensive agriculture; and promoting different skills from those of traditional forestry (as the massive aforestation required is beyond the capacity of any organised forest service). A new managementsystem too with appropriate legislation is needed. The rural poor in the hills depend on forests. The burden of collecting fuel wood falls on the women and the poorest are the first to suffer from a shortage of gatherable fuel wood.' Forests also offer opportunities for local employment and income through tree plantation; cash crops such as herbs, walnuTs, bamboo and industrial pulpwood; and raw material for local craftsmen and small-scale artisans. In many areas, trees are a source of fodder for livestock.4 The Himalayas are ecologically fragile and forests also have an impact on environmental degradation. The

Februiary12, 1983
TA.BLE 4:
CLASSWICATION

ECONOMIC AND POLITICAL WEEKLY

OF Lk.Nm UJSE

State/Year

Geographical Area

Re- Forpor- est t ing Area for Land Utilisation Statistics

3 714 3002 4674 29809 5550 43749

Per- . Not Availa- Total Per- Land Culticen- ble for Cul- Cols ma- under vable tage tivation 6 & 7 nent Mis- waste under Pas- cella- Lands For- Area Barture neous est Put ran & & Trees to CultiOther Crops Non vable Graz- & GraAgri. Land ing sses CulLand Not ture Included in Net Area 4 5 6 7 8 9 10 11 36.3 70 209 279 103 38.9 198 156 354 1024 1k.2 333 230 563 124 40.0 2218 1146 3364 298 19 19 1.7 2819 1760 4579 1549

(Thousand hectares) Total Pal- Cur- Total 9, 10 low rent Cols & 11 Land Pal13 Cols Other low and 14 Than Current Fallow

12

13 1 4 8 607 105

14

15

Sikkim (1978-79) 730 Himachal Pradesh(1977-78) 5567 Jammu & Kashmir (1977-78) 22224 UttarPradesh* 29441 ArunachalPradesh 8358 Total 66320

260 2172 2189 3404 5154 14888

4 1 108 47 136 1207 102 149 375 679 1338 2315 50 85 135 882 1709 4140

1 51 55 86 94 972 1539 25 130

725 1094 1019

Note : *Piguresfor UP in Columns 2 & 3 are for the whole state.Figures in Columns 5, taken from Report of Study Group A, p41. Source: "Report of the Task Force for the Study of Eco-Development in the Himalayan Region"-PlanningCcrrmission Gcvcrnment of India, March 1982. agriculture is preferred to forestry be. cause the returns come quickly. Therefore, some incentive vill be neededpavments for planting trees, grazing rights etc. Fourthly, encouragement should be given to multiple product forestry.. Minor-forest produce - medical plants, honey - increases the yield of commodities other than timber that forests can provide, and benefits local communities who have not been benefited from commercial logging operations. Fifthly, a strengthened or new internal organisation will also be needed. Forestry co-operatives/ panchayats may be concerned initially with planting trees and harvesting forest produce. Later, they may expand into processing and marketing activities. 'Trimukhi Van Kheti' development of fuel, food and fodder -will improve local production and raise the income levels of the poorest, leading to sustained benefits in a more effective manner than drawing the rural communities into alien commercial networks.6 Such initiatives by the rural poor themselves, rather than by elite-determined and elite-controlled programmes, are a surer way to mobilise rural resources for the satisfaction of basic needs of the rural population as perceived by them[15]. The programme of afforestation will be more than a complementary public works programme7 as it proposed as the major component of the development strategy. Social forestry gives a higher return than dry land farming. It
9_4

will be primarily carried out on government land in a phased programme. The important conditions for the success of such a programme will be building up of productive assets, increase in the supply of 'consumer goods' fuel, food, fodder and products for scale outside; a mechanism to recover charges for the use of these goods to induce savings by the beneficiaries, even among the low income groups; and reinvestment to create fresh assets. Availability of essential commadities will also be needed, at a fair price, so that the additional purchasing power and demand does not push up prices and create problems more serious than those resolved by the creation of additional employment[16]. These measures will have to be sustained over a long period of time. Effective methods of work organisation will be needed, too, based on a piece rate system, frequent and regular payments, allocation of proceeds from communal production between distril)ution and accumutlation, without excessive deduction for running cos's, and sound accounting procedures and investment criteria. Political education and increasing of skills at all levels has to play a major role in this. Ultimately the future of the programme will depend on increases in proand output per work(htction, y-iedcls, er. Visible benefits to the community as a whole will help to develop the sprit of mass participation.

In this way, forestry becomes a part of the process of development of hills, increase in forest cover, progressive improvement of agricultural yields, diversification of the 'export' basket of the region, and development of the socio-political structure to allow the multiplier effect to take place. On an average in the hills, government expenditure and the income of the poorest 40 per cent of the population account for 25 and 55 per cent, respectively, of the Net Domestic Product, reallocation of 15 per cent of the Annual Plan Expenditure to this group, through afforestation, will increase its income by 50 per cent.8 In this way, consumption-oriented economy the can be transformed into an investment-oriented one. (2) A vital requirement of the hill areas is Integrated Watershed Management - a complex of systems geared to four main objectives: (i) Traditionalisation of the landuse pattern, according to the land-use capability and environmental criteria. (ii) Optimisation of the use of natural non-renewable resources within the concepts of multiple purpose use and continuous yield of food and services. (iii) Protection of water resources, quality, quantity and timing and the conservation of the soil's productivity. (iv) Improvement of the quality of life of local communities in the

ECONOMIC AND POLITICAL WEEKLY hill as well as human settlements in the plains. The physical factors which ultimately decide to what use land may be put are generally those which exercise a limiting influence, are absent or are in critical short supply - climate, slope, soil.9 A watershed plan should be prepared from LANDSAT data[l7], areal photographs and ground survey in the scale 2 inches - 1 mile (for which forest maps are available), showing the potential land allocation. A high degree of r-efinement is not required. The broad classification of land for zoning into homogenous physical units should befl 8]: (i) Unproductive land (because of adverse climate and soil characteristics). only for tree (ii) Land suitable growth (because of limitations of topography and soil).Y0 (iii) Land suitable only for tree growth and grazing (because of soil factors). (iv) Land suitable for tree growth, grazing and arable agriculture. limitations on use and erosion hazards[19]. The potential for irrigation is limited to about 25 per cent of the net cultivated area, and this is already covered in private channels or 'guls'. There is hardly any scope left for extending the area under the plough or under irrigation. The limited arable land should be utilised for the most valuable cash crops that enjoy a regional and seasonal advantage, and for development of a vegetable seed industry for temperate vegetables that cannot be produced in the plains. Horticulture, for which even slopes can be used, holds much greater promise than foodgrains. The area for different cash crops will need to be determined on the basis of agro-climatic suitability - pulses, soyabean seed, potatoes, maize, ginger, off-season vegetables, vegetable seeds (cauliflower, beetroot, sugar beet), temperate fruits (the agroclimatic range makes it possible to raise many kinds of fruits), floriculture, and mushrooms. Instead of encourag-

February 12, 1983

Livestock is already an integral part of the life and economy of the hills, and silvipasture with controlled and managed forest grazing should be; encouraged. It will diversify the agricultural base, evolve a better land-use pattern, and assist the weaker sections by supplementing incomes." The income elasticity of demand for livestock products is also high. There is potential to develop milk sheds by taking up intensive programmes of cross-breeding, and by reducing the population of scrub cattle through castration programmes and stall feeding. Improved buffaloes and jersey cross-breed cows are profitable. An efficient health cover will also be needed. Similarly, sheep rearing for wool and meat can be taken up, integrated with markeLing, spinning and weaving. All this has to be supported by a systematic fodder production and feed conservation programme.l A legume grass mixture can be grown in the orchards for sheep. Where forests provide pastures, the total yield is known to be good. ing one product - i e, apple - there Rotational grazing can increase yields In addition to the physical factors, should be a mix; with a concentration on high-value-lowv-bulk-non-perishable of existing grasses five to seven times. land-use planning must maintain a After about five years of closure, a grass socio-economic balance. The classifi- fruits, such as walnuts and almonds, yield of about 40 quintals per hectare in the forests, and cation map will serve as a permanent medicinal plants can be expected[21] Aerial seeding in development of wild fruit and nuts basis for a negotiating process, and top dressing has shown encouragwhich the limits of compromise are such as 'Kaphal' and 'Hissalu' on degraded and steeper slopes. The ing results in Jammu and Kashmir, represented by the unsuitable uses inand can be tried in other areas also. dicated for each site class. The third most profitable enterprises are improvThe watershed development plan ed pea and soyabean. In rotations, requirement in the preparation of land-use plans will be fiscal, institu- vegetables give the highest return per will determine land allocation throucgh land use adjustment.. Each zone of tional, and legal measures required for hectare. land of about 1,000 to 5,000 hectares elements its implementation.' All these There is also a large potential for should be delineated by a multidisciare essential to success. increasing the yield from existing team [22], which should tour Agricultural planning has to be fully plantations technological plinary through integrated with forestry, animal hus- innovation - some apple trees yield the watershed with representatives of bandry, and fisheries, in order to 40 kg each, against the pooled average the village or area concerned (vi-llage derive the maximum benefit from of 11.9 kg. The average yield ot boundaries generally lie along a land and water. orange in India is abiut 10 tonnes per watershed.). The relevant experts may then estimated tlhat, in the hectare, as compared to 30 tonnes in It has been prepare a resource survey for regenelast 20 years, the area under agricul- Spain[20]. The potential for expansion of area ration of the resource base as well as ture has increased nearly 50 per cent in the hill areas of Uttar Pradesh. under horticulture is not laige. development of the area - the reYet there has not been any substantial Instead of proliferating the plantations, source investigation should be on the increase in the economic prosperity of it would be better to identify well- lines of a pre-settlement revenue the region. These are marginal lands defined and compact project areas. survey. Initial works may be contined of low productivity. The soils of the Each project shall be composite in to the barren government land availregion do not form a compact block; character to take care of the problem able. Subsequently, fields of cothey are generally light in texture and of horticulture development as a operating farmers may be developed market according to the proposed land use, on credit, including have low organic matter content. The whole, area available for agriculture (Class intelligence, grading, standardisation, a sustained basis. It the agro-silviI and II lands) is limited to about storage facilities - and with feeder culture and agro-horticultural activities 5 per cent. A land capability survey roads for transportation. The con-, can be made profitable, while practisconducted in two mini-catchments centration has to be on post-harvest ing mixed farminig, the shift in land revealed that no area can be consider- technology and marketing, where a use pattern can be gradually achieved, the rather higlh initial ed as Class I and II (land which can small margin of improvement would despite be freely used for a wide variety of make a vital difference in profits to investment[231. (3) An important feature of the cultivation and which is free from the cultivator. 225

February 12, 1983 hills is the scattered area, and population, and the problems it creates in the creation of infrastructure and institutions. Much more resources are required to cr.ate and maintain infrastructure levels according to the Minimum Needs Programme in the hills as compared to the plains. Therefore, the norms may need to be revised, to be based on accessibility (a minimum distance from the viillage) rather than a cer.ain level of service. For example, in the first phase, motorable single lane tracks can be
made
-

ECONOMIC AND POLITICAL WEEKLI to adapt them to local needs and conditions and to keep costs down. The development and distribution of power should be given top priority. The hydro potential is the second most important natural resource (to forests) of tha hill areas. Power supple will directly benefit the entire population and reduce the pressure for fuel on the forests. It will ejnable modernisation of crafts and smallscale industries, and will help to set up new mining, processing and manufacturing industries. If micro-hydel plants are set up the increasing distribution costs bzcause of the spatial problems will also not be there. Power will form the base for self-sustaining industrial growth. (4) Development of wood-based home industries (sports goods, rifle butts) and industries based on medicinal herbs, sericulture, rural crafts, wool industry, fruit processing, repair worships and electronics, precision goods industries, watches and pharmaceuticals which do not involve heavy transportation - can take advantage of the climate, and dust and pollution free atmosphere. Industries where the value added is substantial and which also take advantage of the hill location are necessary to provide quick-cash activities and employment in the off-season, especially in higlh altitude areas where no outdoor work is L25]. possil)'e for long, periods of -xvinter Industrial incentives should be such as to make noticeable impact on the profitability of individual entermined by the motivations, attitudes, and skills of the key development officials and entrepreneurs, than by the level of physical resources or infrastructure. Entrepreneurship programmes could be s'tarted at the collegiate level. (5) Education expansion per- se does not have a beneficial result on d.stribution[28]. Manpower income planning, in the sense of forecasting future manpower needs, has to be done. As government is the imajor employer of those leaving secondary school and higher levels, its wage system and selection procedures have considerable backwash effects on the demand for education and, therefore, on the structure of thz education system. Government jobs are, however, limited and the present tendency of the education system to grow more quickly at the top, rather than at the bottom, of the education ladder, needs to be reversed. More encouragement needs to be given to polytechnics, geared to the requirement of technical pos.s in government draughtsman, surveyors, linemen etc. Technical institutes should also impart vocational training. The education system at the primary and secondary levels needs to be modified qualitatively to make it more closely related to the economic and social develop mental efforts. Ecology should be introduced as a compulsory subject and specific areas for afforestation allotted to educational institutions, as has been done in Sikkim. This would involve, on the one hand, integrating local planning with educational prises .[26]. afforestation, agriculture, ecology, To facilitate productive investment, health, and other social services, and three major objectives have to be on the other, providing educational pursued - introduction of new techni- facilities in line wvith opportunities in cal processes or products, easier access the employment market - especially to capital, and training in management the development of entrepreneurship and information[27]. Small enter- -- by transforming attitudes and prises are typically frozen with tradi- values[29]. tional markets where their growth is (6) New institutions have also to be limited by outdated distribution net- set up. They should be functional works; one solution is preferential rather than formal and have to provide government purchasing schemes. In- for self-sustaining growth. If the basic novative changes are needed, too, developmient thrust has to be in foresto provide access to scarce raw mate- try, forest panchayats, which have been rials, often earmarked for privileged very effective in Uttar Pradeshb couid enterprises. Industrial centres should be extended to other areas. The hill be located to reinforce present trends areas geinerally do not have the 'sociorather thani to establish new ones. political problems arising out of exProject identification and preparattion treme disparities iii the ownership of studies as well as enterprise develop- Jand.1' Institutions can also invblve ment and promotion functions would disciplined ex-servicenien. A functional need to be done by governmenlt panchayat could provide an important corporations. The success of indus- bae for the developmlent of selltrialisation is more likely to be deter- governlingC inlstitutions.

providing

cross drainlage --

and metalling, tarring and widening can be done later. Similarly, in Rtural Water Supply, the location of water points is an exLremelyimportant factor in determining the optimum utilisation by tne poor[24]. So that they do not remain largely technical exercises, the scope of the minimum needs, the of indica-ors and establistment targets, and the problems concerned witn the design, organisation, content and delivery of services need to be worked through in detail. Minimum needs are not static but evolve over time, in line with the growth of the economy and the aspiraLions of the people. As tunds are lmiLed, a threshnold level in the development of the minimum needs may be fixLd at present, to be increased later. r whic;_ Secondly, projccLs cle relatively easy to implement -- social welfare, education, hcalth, roads --are pushed ahead of otniers - such as
credit and marketing -which though

they require a longer time. to prepare and implement, may contribute more directly to increased production. This can have serious budgetary consequences, especially when these projects also entrain an increasing stream of recurring government expendiLure after their completion. AdminisLrative and maintenance costs of infrastructure account for nearly two-thirds of the government expendiLure in the hills, leaving less and less funds for development. Thirdly, a development strategy, which gives a cenLral place to transport, cannot be self-sustaining because of the increasing subsidies involved. Thus, once a minimum and ihis level has been attained has happened in both Himachal Pradesh and Uttar Pradesh - the thrust in infrastructure development should be on fullest utilisation of existing capacity and careful designl of the necessary facilities and services so as 226

AND POLITICAL WEEKLY FCONOMIIC

institutions anid o 1arkc6iiig he (leveloped to promote the i)riorities and strategies of the plan. In problems, their spatial vic\\ of the integrration-will be necessary to provide a stronger bargaining position, better Crcdii.
ccd(1 to

February 12, 198:3 tiln serve to whlich acdmiiinistrative attention and legis'ative appropriations on the activities of highest priority, is needed. (8) Upgrading and adaptation of technology, which is appropriate and cheap, and whose maintenance is postiie.t f0clis o)f bill a.reas,

iiianagement, as well as economies in in expenditure, transport idinstrative anid storage. In horticulture, for example. the growers get hardly 30-35 per cent of the consuimer's price.[30] The primary producers are mostly tied up througah advances given by private ti a(lers, and sell about 40 per cent of the pro(duce around the time of fruiitsetting to contractors. Through proper marketing arrangements farmers' income could be raised by over 50 per cent. [311 Grading centres, packing, transport facilities, cold storages, and particu?arlyprocessing plants for culled lLuits will be needed. At present, about 5 per cent of the total production is processed ag,ainst 25 per cent in some of the W0Vesterncountries.14 Simnilar facilities are ieeded for the mnarketing of milk, wooi, minor forest prodtuce, ruriialcrafts ancd wood-based manufactiires. This sort of pioneering work ill w; nieed to be initiated by functional cor-porationssponsored by government. If the agricultural land-use in the hills is to stress specialisation in highvalue cash crops, and in view of the difficulty of rnatching supply with de7nand for food and other consumer items, government will have to set up a public distribuition system to ensure stability in supplies and prices of foodand other essential commodities. (grainis The public distribution system can be e.xpanded to incluide all items required 1y the population and lessen the effects of inflation on the real incones of the poor.
I-Iere, economies of scale can operate

ol humtitan settle,ient.si and thleir^ lines, ancl trades, aind the rI commume1lication water catchinent is a conveniient unit socio-ecofor rresource regenerationifomic development as well as administration. There is a'lso great topographical and climatic disparity, even within i dlistrict. Clear priorities and timephaiasing of activities need a combinainterventions critical tion of a few administrations ith district wA along identifying and ameliorating additional constraints specific to local areas. Distriict watershed management authorities on the lines of the uirban development autthorities, need to be created, constittiting alll departgments uinder the chairTuanship of the 'district officer to decicde on the location of developmiient works their socioand periodcicallv review eco'o(gical imilpact an(d for approval of the resouirce use plans and landi classification. [331 Planning and monitoring ill wN nee d to be done at the district leve'; co-ordination at the tehsil level; atnd implementation at the block level. Secon(dly, the spatial dispersal of population and r-esources requires one functionary, niuilti-purpose village-level ith adequiate training andi covering ws eanimal husbandry, forestrv, horticultiire, water conservation. griiculltuire and watersheds', in each lDemonstration can act as laboratories district/block, for the training of grass-roots workers. As village women play a vital role in farrm activities, a place will also he adlministration for needed in village 'wonien. Thirdly, the proceduires, practices andl legislation will need to take ecologv and soil conservation into account. The 'technology' of governmental intervention will need to be adapted to the Technically, local requirements. association of geologists, soil oonservain the tion experts and ecologists alignment of roads wvouldl have to be architectural Aesthetically, sought. forms and structural designs of buildings suited to the hill areas have to be chosen. Socio-culturallv, the adverse impact of tovurism has to be studied. [341 Similarly, experts in ecology and social conservation should be associated in all aspects of regulation of mining actiThe principles of the forest vity.;5 wlorking plans also need to be recast to take into' accouint soil, .sope, ecology, and the needs of the local people rather than only consider silvicultural and national needs. [35] availabilitv The soil conservation acts shouild inclassification, cltide a system of land with a statement of particular goals and mnuist d1iscou1rage,or encouirage, specific actions. Specific legislation in the in-

sil)ie ait the local level, wvill also be

This may not be the best neede(l. available, but the increases in efficiency

\vould be substantial. The water mills

still use wooden axles and vanes: introdtcction of ball l)earings could be

effected. Agricultural implements, woolcutting shears, and weaving looms can be improved. Hydrauilic rams, techni(Ities of w ater harvesting, wrind-mills, ropewvays, and solar energy can be in-

trodlucecl. For agricuiltturalextension,

uise can 1)e made of folk songs, radio,

and films, to put across the message in the idiomi of the local poptulation especially women who are the agricultuu'dlworkers. In priimarv health care, irndigenous systems using local herbs can he encouraged. Scientific research
is needed to evolve suiitable varieties which are location-specific, with agro-

uomic practices for intensive cropping as well as. dry land farming, and control of pests and diseases, for the development of high value added commodities. For example, in apple growing tlhere is heavy concentration on one of two varieties and this exposes the
plantations to serious dangers of disease or pests. The biggest technological

(rap is the lack of quick-growing broadleaf varieties of fodder trees. There is also nee'd for research programmes on species, sylvicultural practices, and rotations of fodder trees. There is considerable scope for more active governmental
institutions

education support of higher and private or semi-public

to provide real benefits to the poorest. The distribution of foodgrainrscan also be eventually integrated with the marketing and credit institutions and thle forest panchayats, to achieve further econiomiesin transportation,storage a.ndl administration, besides involving popular participation. This shotuld lead to apex area development agencies
r.ather than to functional agencies, for and implementation of the initiation levelopment strategies. will have to (7) Three principles aoveen the administration of bill areas. of hill areas First, the (levelopment will have to be based on micro-ares walershed planning and single-line adininistrlation, lwith an institutional frameork to secuire inter-agencv co-ordinaws
tion at

organisations for research. Research Workersshould go to the fie'ds for applcation - for integrating theouy and
practice.

Conclusions
There Ls a relationship betveen enployment and basic needs policies, on the one hand, and growth and investment, on the other. The rate of investment or distribution of ouitptut between

the working evel. [r32]

govern the

The

valley sy stems

dlistribution

constumption and investment is, therefore, an important concern of development plans. Significant a1locations to education and health l<onot contribute (lirectly to public savings. Similarly, and iinvestment in infrastlruicttural other (admittedly vital) construction means that too little is left for consumption and that the poor have to wait a lonq time b-efore their immedi-te and essential needls are met. Development stra-

227

tegy has to come to grips with the unemployment and poverty problems. Generation of employment has to take place in the atppropriate sectors. Secondly, what is involved is a muiltipronged strategy, in which employment and poverty considerations must be reconciled with other objectives and which should be muitually supporting. Thirdly. the ecological, sociological and techlnical dimensions of the task cannot be ignored. The design of hill development tnust stress productive employment, land use planning, and watershed management, through Trimukhi Van Kheti - in the first instance on the large tracts of government land on a community basis and with the appropriate mix of instituitional credit, technology, education and smnall industry. It will provide effective participation of the mass of the people in the development process and encourage sectoral linkages and achievement of a balance for the economy as a whole. This would need to be complemented bv supply management on the part of government bv provision of power, essential ommodities, essential services, and appropriate orientation and design of delivery systems. The stress on investments in the rural sector does not imply the abandonment or neglect of the industrial sector. It does, however, suggest that overambitious standards may not he possible in the provision of basic needs, and suggests low cost approaches to capital investment in infrastructureand to recurring expenditures on administration. The secret of suiccessful development is to provide a frtmework which induces people to make the best use of the opportunities which exist in their economv and environment.

mortality (8 per cent), high per capita expenditure on education .nd medical services. aid a rela tivelv even ilistributioii of income, exhil)its one of the lowest birth IPraldesh, wbhere female literacv is only 11 per cent, the mortality rate 20 per cent, and per capita expen(litlire on education and medlical services one-thir(d of Kerala. Sourcp.: Population Council "Comintr Mro!le"' 1976. See also d NVorl Bank, 'The Economic Situiation %and Prospects of India', 1977, in,
"Changing Approaches to Pomula-

rates amonoerstates. This rate is as h igh as 42 per cent in Uttai

that about 80 per cent of the nonforest area is of slone greater than 50 per cent, ibout 40 to 50 per eneit of forests arc of poor dlensitv (lensitx aindthe required optimumllm for effective soil and wNater coniser vation is confined to sonmeremoter areas: "Status Paper of Sub-Group on Integrated Soil Conservation Measuires includina Afforestation
Animnal Husb-andry. Horticulture

tion Problems" bv Hargset Walfson. OECD. 1978.

3 No comprehensive fuel wood, p)oles

ancd timber survev has been made for local needs either in Uttar Praclesh or in Himachal Pradesh. The avera?e consumption of 5 kg of fuel .. 0(1 per dcay is generally taken. civing an annuial reqiuirement of 2925 lakh tonnes per annum for Uttar Prades1h. Assulming an ouit tturni of 4.54 million cubic metres per annumill]: an exnonential rate oF of 5.8 per cent per depletion. has been annuti. com.Tuted bv S L Shah (Presidential address for the Forty-First All India Agricuiltiiral Economics Conference, De-

cen-mber 1981).

See also Report of

the Forest Grievances Committee for Kumaun, 1924, for one of the best analysis of the problem. One mature tree can provide supnlementarv fodder for one buffalo: for Local Comnuinnitv "Forestry Dcve'opment", FAO 1978. I'hle average rate of sedimentation in the reservoirs in recent vears has been reported to be between 1-1/2 and 4 times more than erti-

and( Agricuiltiural Programmes, for Formulation of ani Integrated Plani f'or the Ecological Regenerationiof' the Hill Region of the State", Jtilv 1980 (mimeo). Tn the middle Himalayan belt of the country, the area of forest, w,Nhich wvasoriginiallv estimated at 3.3 per cent of the total area, has diiminished to between 6 and 8 per cent - Report of the Task Force for the Study of Economnic Development in the Hitnalayan Planning, Commission. Region, March 1982. classi10 in China, the land capabilZity fication adopted is that all lands wvith a slope of upto 150 and a sutitable soi,l (50 mm depth) are reserved for aariculture, while those with a slope of over 150 are reserved for forests, as are lands with a slope of lipto 15? and pooir soil. Tree planting is emphasise(d over areas with a seriou.s erosion hazard. Complete land preparationi is done on slopes of mpto 15? at suitable sites; terracina is done on
slopes from
.350

16? to 350;

planting

in pits is done on slopes of over voirs, pondcs and dams, has been d(one wherever possible. Intercropping wvithlegtumes provides soil cover. In India. slopes between
9.5%-55'

Construction

of small reser-

Notes

I Percentage of popuilationbelow the

noverty line State/U Territory 1972-73 1977-78 46.95 Assam lisnachal Praclesh 15.1.3
j arnim 51.10

27.23 34.06 29.21 48.034.11

39.737

and Kashmir Manipuri Meghalava Nagalan(d

Trripti.ra

39.0() 24.70 19.05 3.33

8t9.88

All Union Territories

AJ, In(lia

.30._251.49

_] L 48.13

(weighbed)
Soirce:

Report of the Task Force for the Study of Ec(uDevelopment in the Ilia.a
layan Region PYanning

2 228

Comnmission, Government of India, 'March 1982. Ker-alawhich boasts a high female literacy rate (54 per cent), low

be reserved for forestry. 11 A (grazing subcommittee of ptublic anld(lRanmganga reservoirs. Investigartion ma(le bv the Central Soil leaders and officers of the Animnal and Water Conservation Researchl Hlusbandrvand Forest Dlepartments and Training Instituite. Dehra Dun. in Himachal Pradesh (1970) sureveals that siltation in 21 storage gestecl the folloNing scale of catt'e is 182 per cent higher units, keeping in view the wveight projects than what was provided for in the and feeding habits of variouis animals - sheep (1), goats (1.5), projects. 6 Suicha programrnehas been initiathor.ses (4), muLles(5), buffaloes (6) ed in Almora District of UP in and considered a grazing incidence of 0.5 hectares per utnit as 1976-77. coverin(g 2,368 hectares. the barest minimuim.On this basis See pamphlet: "Trimtukhi Van in Uttar Pradesh, the avaiVable Kheti in Almora". 7 Public Works Programmes have area for grazing is only 40 perrecduiced wage disparities between cent of the requirement. men and xwomen, and have largely 12 The incremental inicome fronm benefited landless labourers and dairying is about 45 per cent of the loans advanced. See. "Evahluasmall farmers ("Joint Evaluation of tion Stuidy of Small Fariers, Marthe Employment Guarantee Scheme of Maharashtra,", PEO, Planning ainal Farmers and Agricultural du-rin g Labourers Project", Programme conducted Coimmission, Evaluation Organisation, Planning April 1978-October 1978), and have Commission, conduicted in 1974-75. provided the beneficiaries with in 1.3 Most farms are not only small but additional income of iipto 18 per are scattered. There is litt1e cent (Evaluation of the Food for evicdence of polarisation betwveeu NVork Programme, PEO Planning laindowners andl lan(liess. as there conducited duiring Commission, Anigtst-October 1978). are hardly any landless labouirers wvith Government/Communitt land( been 3 T"he ND1 percentage has being available for extensionl of d1,rived from the total agricultural cultivation. Much more social nicome. the size, number and area of holding).s. See a'so, "Who Benehbomogenietyremains. unlike in the fits from Government Expenditure plain.s. However, on an average. -A Case Stuldy of Columbia">, and mlarginalfalnners accounlt s<mall A World Bank for .3/4 of the total hlolding anc1 M!alrce'o Selovskv. command 1/3 of the operationat flteseareb Publication. 1976. 9 Satellite imagery interpretation for .area: an(l 1wrandR large everyo<ne the Uttar Pradesh Himalayas showss is poor.

niatedI, respectivelv, in the. Bhakra-:l

have

been

suiggeste(d to

Backward Hill Areas National co: A Study oln Income DistribuCoimmittee on Developmiient of iuences. tion anid Employment", W Van Areas, Planning CownBackNward March 1981. Cinneken. (ILO). missioii, L2(1] Report ol "'The Role of Indus- [:33] Re'portof tne Task Force for thic References in trial}Inicentives in Regional DeveStudy of Eco-Developlmienit the CGoiiloptnent", OECD, 1979. Of Backllimalayan Region, Planni, 1I J Report ,n DcVer1L0opmlleDL wniusion,March 1982. ward l-lill areas, Nationial ('oin127] "SelectecdlndtustrialPolicy Instruinents - Objectives anid Scope" *inittee onI the Developiiient ot I",34 Sec "Tourisn Passport to Devede OECD, 1978. lopmenit", EmnanuLel Kadt, A Backward Areas; Planing CoiniL28] "Patteni of Iiie(quality in Educamllission,MIarclh joint Worldl Baink Case Study, 1981. tion in Asia", MND Leonor Jr 1979. []J Uttar Pradesh Forest AJliniiisli9a[33] Rleportof the Task Force for the 1LO, (1977). tion, One Hundi-redt Years, 1961StuLdyof Ec,o-Developinent in the L29] 'Edutcationiand( the Employnenit 1961, 1961". Prob?,em in l)eveloping, CounIliin'alayan Region, Planning Coiii3] "lie-Investinenit Survey of Forest J tries", Mlark Blamig. mission, March 19821. Ilesources", conducted by the Government of Iindia in westerni Uttar Pradesh, imiadean asses,stiicnt for the year 1972-73. Calico Mills I-J I'ood Mrketing and Econiomic (Growth",OECD, 1970. CALICO MIILLS has beein lacinig a C41C) Significant reduction in th4 . [3] '.Itcriiatc Strategies for lura3 variety oi adveise t'actors during the production cost of P'VC could also be DJevelopmnent in CarhNval Hiima;;ast3 or 4 years. On1a revic%w posi- achieved by changing over to niatural of lavas', K Gupta, in in tioii in Septemberlast, the directorsfelt I['inalayan Ecologygas-based ethylene, regarding which the II 'Studies "Ci Cllina Forestry SuLpI)ortfor Agri- that an ailgaamation of the comnplanlycompany is in negotiations with the cttre! Fu.r with AinibalalSarablhai EnterPrises (ASE) In the fibres division, [, Thomas G Ilaw,ski, "Econioimic \would be desirabLeand if that xvas not government. Calico has been licensed for doubling Gfrowth anld Employment in possible immediately Gautam *Sarabhai, the polyester fibre plant. Capital goods Chiina". Oxford, 1979. [8S] John WV Mellor, "The New Eco- its Chairman should be invited to join licence has been obtained and arrangenoiics of Growth", Ithaco, NY, Calico's board as Executive Chairman. ments for a foreign exchange loan Corniell University Press, 1976. As the board of ASE felt that the finalised. 9I' IBRI) "World Tables". [10] "Follow-up of the World Employ- present time was not opportune for The coinpany has already issued noniiiment Conference: Basic Needs", such a merger, Sarabhai was unanimousILO, 1979. convertible debentures of Rs 2.5 crore 11 "F'orestry for Local Community ly invited to join the board of Calico, in 1981 and convertible debentures of who took over as Chairman on SeptemD)evelopmlent",FAO, 1978. Rs 15 crore in 1982. In order to further 2I "Utltar Praclesh Social Forestry ber 28. In the larger interest of the augment the long-term resources and Project', XVorI,d Bank, 1979. company, working directors submitted 1:,1 IL,con(Anic Analy-sis of Forestiy funds for capital expenditure as well their resignations and in their places Projects", FAO, '1979. as for working capital, other means of [ I11 "ChiinaForestry Support for Agri- K I Devatia, S C Shah, and M N Parikh financing have to be found which recuiltuire",FAO, 1978. were appointed directors. B U Balsari, quire rationalisation and reorganisation [ 13] "Rural Employers' and Workers' frorm the outgoing team, continued as Organisation and Participation", wholetime of the business and operations of the director. Since Sarabhai ILO, 1979. company. In order to facilitate this, [16] See "Poverty, Unemployment and took over, steps have been taken to DeveJoprtent Policy - A Case effect economies, reduce working capi- steps are being taken by the company Studv of Selected Issues with tal lock-up, improve profitability, and to transfer the chemicals and plastics References to Kerala", United division, Jubilee Mills (along with the tone up management. Nations, 1975. sewing thread plant) and Kalol Mills Orders for rebuilding the polymer [17] 'Applications of Remote Sensing to to separate, whollyWatershed Management'; Albert plant destroyed by- the fire last June, as going concerns Rango, Goddard Space Flight have already been placed and efforts owned subsidiaries of the company. This would also involve transfer ot Cenitre in Guidelines for Waterare made to increase fibre production shed Management FAO (1977). entire share capital of Varma Indusof polymer 181 ICild Classification for Water- by maximising purchase .shed Management' bv KFS Kina chips. Government has increased import trials, by Rajindra Dyeing and Printing Mills to another wholly-owned subsiin Guidlelines for Wnatershed duty on PVC from 100 per cent to 150 Managenwent, FAO, 1977. diary. per cent and on polyester fibre from 19] "Rullral Area Developmient ln view of the above changes the lResearclh, Planning and Action in 165 per cent to 170 per cent in NovemNaurar Watershed in Bhikiasen ber 1982. In the textile division, the accounting year of the company is being B2ock of Almora District Uttai ending Pr'adesh",G B Pant University of company has a letter of initent for a changed to 15 months period June 30, 1983. At an appropriate stage, Agriculture and Technology, 1976. new spinning mill of 30,000 spindles. the directors intend to revive their [20] "Note on Development of Horti- It lhas been decided to set up a modern etoltiire in Hill Areas in the Himaearlier proposal for the amalgamation svpinning plant which would be more lay.a Region", Planning Coinmisprofitable than spending money on of Calico and ASE by requesting the sion, 1971, (mirneo). board of directors of ASE to re-examine [21] IData generated b the Indo-Swiss conversion and moeternisation of existP'roject,Almora. ing machinery. In the chemicals and the viability of amalgamation of Calico for Land( Evaluz- plastics I 22] "A Framewvork renovation of the division, and ASE with the object of providingI ation", FAG, 1976. existing mercury cells has been taken in a wider and more diversified base of [2.3] Report on] D)evewlopmlent Backof Areas, Nationlal Corn- hand with a view to improving effici- operations. wa.rdl11111
L ,5] '"Socio-Econiolinic Groups in Mexi-

14 As a rule, returns on investment in farming are lower than in processing an(l distribution. 13 In the US, l or instance, the 1970 National Environmiiental Policy Act (NEP'A) requires public agencies to prepare enivironmenital impact .statements p)riorto initiating largescale action, wvhiclh may have .significant enivironmieintatlconse-

mittee on the Development of Backward Areas, Planning Coininission March 1981. 1'1] Study oin Accessibility of the Poor to the Rurtl WaLer Supply condlucted by the Prog,ranine
EvaluLition Organisationi, Planning

[30]

diuring 1978-79. Commnission,

"Note on Development of Horticulture in Hill Areas of HimaJayan Region", P.anning Coininission, 1971 (nmiiieo). [ 1] World Bank "Project on HurLiin llimacultural Development chal Praclesh". L32] See lieport on Deve'opinicnt of

229