Wednesday 26 August 2015

Notes On AP Reorganisation Act – 2014

Notes On AP Reorganisation Act – 2014

SECTION - 46 of THE ANDHRA PRADESH REORGANISATION ACT, 2014

46. (1).       The award made by the Thirteenth Finance Commission to the existing State of Andhra Pradesh shall be apportioned between the successor States by the Central Government on the basis of population ratio and other parameters:

Provided that on the appointed day, the President shall make a reference to the Fourteenth Finance Commission to take into account the resources available to the successor States and make separate awards for each of the successor States.

46. (2)        Notwithstanding anything in sub-section (1), the Central Government may, having regard to the resources available to the successor State of Andhra Pradesh, make appropriate grants and also ensure that adequate benefits and incentives in the form of special development package are given to the backward areas of that State.

46. (3)        The Central Government shall, while considering the special development package for the successor State of Andhra Pradesh, provide adequate incentives, in particular for Rayalaseema and north coastal regions of that State.


SECTION - 90 of THE ANDHRA PRADESH REORGANISATION ACT, 2014
90. (1)        The Polavaram Irrigation Project is hereby declared to be a national project.

90. (2)        It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation and development of the Polavaram Irrigation Project for the purposes of irrigation.


90. (3)        The consent for Polavaram Irrigation Project shall be deemed to have been given by the successor State of Telangana.

90. (4)        The Central Government shall execute the project and obtain all requisite clearances including environmental, forests, and rehabilitation and resettlement norms.

SECTION - 94 of THE ANDHRA PRADESH REORGANISATION ACT, 2014

94. (1)        The Central Government shall take appropriate fiscal measures, including offer of tax incentives, to the successor States, to promote industrialisation and economic growth in both the States.

94. (2)        The Central Government shall support the programmes for the development of backward areas in the successor States, including expansion of physical and social infrastructure.

94. (3)        The Central Government shall provide special financial support for the creation of essential facilities in the new capital of the successor State of Andhra Pradesh including the Raj Bhawan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure.

94. (4)        The Central Government shall facilitate the creation of a new capital for the successor State of Andhra Pradesh, if considered necessary, by denotifying degraded forest land.










Former Prime Minister Manmohan Singhs’s six point commitment to Seemandhra in the Rajyasabha on 21st February 2014

1. For purposes of Central assistance, Special Category Status will be extended to the successor state of Andhra Pradesh comprising 13 districts, including the four districts of Rayalaseema and the three districts of North-Coastal Andhra for a period of five years. This will put the state's finances on a firmer footing.

.
2. The Bill already stipulates that the Central Government shall take appropriate fiscal measures, including offer of tax incentives to the  successor states in order to promote industrialization and economic growth in both the states. These incentives will be along the lines
extended to some other states.

3. The Bill already provides for a special development package for the backward regions of the successor state of Andhra Pradesh, in particular for the districts of Rayalaseema and North Coastal Andhra Pradesh.
This development package will be on the lines of the K-B-K
(Koraput-Bolangir-Kalahandi) Special Plan in Odisha and the Bundelkhand special package in Madhya Pradesh and Uttar Pradesh.

4. If any further amendments are needed to facilitate smooth and full Rehabilitation & Resettlement (R&R) for the Polavaram project, they will be given effect to at the earliest. The government will execute the Polavaram project.

5. The appointed day for the formation of the new State will be so fixed in relation to the notified date so as to enable preparatory work relating to personnel, finance and distribution of assets and liabilities to be complete satisfactorily.

6. The resource gap that may arise in the successor state of Andhra Pradesh in the very first year, especially during the period between the appointed day and the acceptance of the 14th Finance Commission
recommendations by the Government of India, will be compensated in the Regular Union Budget for 2014-15.












Special Category status and centre-state finances
The Special Status to States

What additional benefits does a state get with a special  status?

Arpita Yadav, Feminist, Sapiosexual

A special status is given to a state based on following parameters -
a.   Hilly and difficult terrain.
b.   Low population density.
c.   Strategic locations along the borders of the country.
d.   Economic and infra backwardness.
e.   Non-viable nature for state finances.

Currently, 11 states have been given the 'special state status' –

Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, Himachal Pradesh, Jammu and Kashmir


The benefits that a state gets under the provision of being a 'special state' are -
a.   Preferential treatment in getting Central funds assistance.
b.   Concession on excise duty, this attracts industries to the state.
c.   Significant 30% of the Centre’s gross budget goes to the Special category states.
d.   These states avail themselves of the benefit of debt swapping and debt relief schemes.
e.    In centrally sponsored schemes and external aid special category states get it in the ratio of 90% grants and 10% loans, while other states get 30% of their funds as grants.

Edit as suggested by Zafar ul Haq:
Grant is an amount which need not be payed back, however loans should be paid back with interests.
 
What are the political or social benefits for giving Indian states special status?
What is the meaning of a special status to an Indian state?
What are the criteria to get it, and how does it help a state to grow well?
What is the economic effects of special status to a geographic region?
Why do states in India seek special status?
Does Bihar deserve special status, as demanded by Nitish Kumar(CM) and his party JD(U)?
Venkaiahreddy Kota
First let me clear the air between the terms ‘Special Status’ and ‘Special Category Status’. There is a huge difference between them.

Special status is guaranteed by the Constitution of India through an Act passed by the two-third majority in both houses of the Parliament, as in the case of Jammu and Kashmir, whereas Special Category Status is granted by the National Development Council, an administrative body of the government. While Special Status empowers legislative and political rights, Special Category Status deals only with economic, administrative and financial aspects.

At present there are 11 States that enjoy Special Status and Special Category Status: Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.
 

What are the political or social benefits for giving Indian states special status?

Prithvi Pavan Vetsa

The special status is in the context of Centre-state finances. A special category state gets preferential treatment in federal assistance and tax breaks. There were only three such states in 1969, when the Gadgil formula for sharing central Plan assistance among states was devised. Now, there are 11-the seven north-eastern states, Sikkim, Uttarakhand, Jammu and Kashmir and Himachal Pradesh. Now the newly formed of Andhra Pradesh is given a special status for five years time. They are given a higher share of the Union government's resource allocation because of harsh terrain, backwardness and other social problems.

The special-category states get significant excise duty concessions, persuading industry to relocate / locate manufacturing within their territory. This has been a sore point with neighbouring general-category states. Apart from that, 30% of the Centre's gross budgetary support for Plan expenditure goes to special-category states. Earlier, 70% of the Plan assistance given to the states were loans and the balance 30%, grants. In the case of special-category states, 90% of Plan assistance was given as grants, and only 10% as loans.

The 12th Finance Commission recommended that the Centre give only grants, and leave it to the states to raise loans as they wanted. Since then, the 90% grants: 10% loans formula for special-category states is restricted to centrally-sponsored schemes and external aid. For general category states, external aid is passed on in the exact mixture of loan and grants in which it is received at the Centre. And for them, in the case of centrally-sponsored schemes, only 70% of the central funding is given as grant.


No special category status for Seemandhra: plan panel

In this March 5, 2014 file photo, Deputy Chairman of Planning Commission, Montek Singh Ahluwalia is seen with with Rajya Sabha member T Subbarami Reddy who gave a representation for special package to Seemandhra, in New Delhi.

Former PM Manmohan Singh had announced in the Rajya Sabha on February 21 that special category status would be extended to Seemandhra for five years.

The residual Andhra Pradesh, known as Seemandhra, can’t be accorded the status of special category State to provide extra Central aid under the current norms, the Planning Commission has said.

“Andhra Pradesh (Seemandhra) does not meet National Development Council criteria (for special category state),” the Commission said in its presentation to Planning Minister Inderjit Singh Rao.

This point is significant because the Union Cabinet headed by former Prime Minister Manmohan Singh on March 2 had directed the Commission to accord special category status to the successor of Andhra Pradesh (Seemandhra) for five years.

Singh had even announced in the Rajya Sabha on February 21 that special category status would be extended to Seemandhra for five years.

Andhra Pradesh has been recently bifurcated into two States - Telangana and Andhra Pradesh. There are demands for according special category status (SCS) from States including Bihar, Rajasthan, Odisha and Jharkhand.

In case of Bihar, an inter ministerial group has said that the State is not eligible to get SCS based on existing criteria. However government is yet to take a decision on Bihar’s demand.

The Commission, however, has intimated to Rajasthan, Odisha and Jharkhand that they are eligible for getting SCS as per the criteria.

About according SCS to Seemandhra, the Commission pointed out to the Minister that any such proposal would have to be endorsed by the country’s apex planning body National Development Council (NDC) headed by the Prime Minister with Cabinet Ministers and all Chief Ministers on its board.

As per the Gadgil—Mukherjee formula for devolution of Central assistance for state plans, 30 per cent of the total funds is earmarked for Special Category States.

As against the composition of Central assistance of 30 per cent grant and 70 per cent loan for major States, special category states receive 90 per cent plan assistance as grant and just 10 per cent as loan.

The special category status to various States in accorded by the NDC based on consideration of a set criteria.

The criteria include hilly and difficult terrain; low population density and or sizeable share of tribal population; strategic location along borders with neighbouring countries; economic and infrastructure backwardness and non—viable nature of state finances.

At present, the existing 11 special category status States are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Uttarakhand, Nagaland, Tripura, Himachal Pradesh, Jammu and Kashmir and Sikkim.












Andhra Pradesh's Endless Wait for Special Status

By Express News Service
Published: 28th August 2014

HYDERABAD: Special Category Status (SCS) for Andhra Pradesh has so far remained a pie in the sky. This is causing some degree of disquiet among the AP leaders though they have not lost hope yet because it was the BJP which had fought for it in both Houses of Parliament during the fag-end of UPA-II.

Though then Prime Minister Manmohan Singh made an announcement in Parliament on according SCS for five years, it remained a promise only, causing discomfiture to the leaders of Andhra Pradesh. The Manmohan Singh cabinet in March this year also took a decision to this effect and asked the Planning Commission to do it but that is where the things stand as of now.

In his Independence Day message, Prime Minister Narendra Modi announced that Planning Commission would be disbanded and a new institution would be ushered in to cater to the aspirations of 21st century India and strengthen participation of states, the ruling Telugu Desam Party is wondering how and in what shape SCS would come for Andhra Pradesh.

“When Chandrababu Naidu met the Prime Minister recently, at no stage  was there any room for doubt. He was very much in favour of according SCS,” a senior TDP functionary said.

The delay in according SCS is on account of the proposal to disband the Planning Commission. “But a brain-storming session is going on as to how to keep the promise of according SCS to AP since it was promised by a Prime Minister on the floor of Parliament at the time of the debate on the bifurcation Act. We are sure of getting the status since it was the BJP which fought for SCS,” the TDP leader said.

The AP government hopes that Narendra Modi would hold ground even if Telangana state wants similar status or for that matter if Tamil Nadu demands that such a status should not be given to AP. “The Centre is not politically weak to acquiesce to the demands of other states on conferring SCS to AP. It has made a commitment and it will honour it,” the functionary said.

Though the Planning Commission will be disbanded and an alternative institution is brought in, according SCS is likely to be entrusted to another institution. The debate at present is which organ of the government should do it - whether it is the Finance Ministry or Planning and Programme Implementation Department.

The AP government is also hopeful that endorsement of National Development Council (NDC) would be done away with since Planning Commission would not be there anymore. If NDC’s endorsement is not required, the work becomes simpler.

Also the government hopes that the eligibility criteria would undergo a sea-change. At present, the Planning Commission clears SCS proposal for states if a State has hilly and difficult terrain, significant tribal population, backward in infrastructure, proximity to borders and low population density.

Who is special
SCS to a State is Granted if it has:
 Hilly and difficult terrain
 Significant tribal population
 Backward in infrastructure
  Proximity to borders with neigbouring countries
 Low population density

90% in the Form of Grant
SCS entails a State to get 90 per cent of the Centre’s devolutions in the form of grant and only 10 per cent as loan. For other states, 30 per cent comes as a grant and the rest as loan. Of the total funds meant for states, 30 per cent is reserved for SCS states.

Though delay in according SCS is disquieting, AP feels it would soon be through though Planning Commission is being disbanded

AP leaders have reason to believe that SCS would be delinked from the alternative institution proposed in place of plan panel

The task likely to be entrusted either to finance ministry or department of planning and programme implementation


11 states like Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Assam, Uttarakhand presently enjoy SCS


PART VIII
PROVISIONS AS TO SERVICES
76. (1).     In this section, the expression “State cadre”––
(a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian Administrative Service (Cadre) Rules, 1954;
(b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police Service (Cadre) Rules, 1954; and
(c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest Service (Cadre) Rules, 1966.

76. (2)      In place of the cadres of the Indian Administrative Service, Indian Police Service and Indian Forest Service for the existing State of Andhra Pradesh, there shall, on and from the appointed day, be two separate cadres, one for the State of Andhra Pradesh and the other for the State of Telangana in respect of each of these services.
76.(3)       The provisional strength, composition and allocation of officers to the State cadres referred to in sub-section (2) shall be such as the Central Government may, by order, determine on or after the appointed day.
76.(4)       The members of each of the said services borne on the Andhra Pradesh cadre immediately before the appointed day shall be allocated to the successor State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify.
76. (5)      Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of the All-India Services Act, 1951, or the rules made thereunder.
77. (1)      Every person who immediately before the appointed day is serving on substantive basis in connection with the affairs of the existing State of Andhra Pradesh shall, on and from that day provisionally continue to serve in connection with the affairs of the State of Andhra Pradesh unless he is required, by general or special order of the Central Government to serve provisionally in connection with the affairs of the State of Telangana: Provided that every direction under this sub-section issued after the expiry of a period of one year from the appointed day shall be issued with the consultation of the Governments of the successor States.
77. (2)      As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) shall be finally allotted for service, after consideration of option received by seeking option from the employees, and the date with effect from which such allotment shall take effect or be deemed to have taken effect:
Provided that even after the allocation has been made, the Central Government may, in order to meet any deficiency in the service, depute officers of other State services from one successor State to the other:
Provided further that as far as local, district, zonal and multi-zonal cadres are concerned, the employees shall continue to serve, on or after the appointed day, in that cadre:
Provided also that the employees of local, district, zonal and multi-zonal cadres which fall entirely in one of the successor States, shall be deemed to be allotted to that successor State:
Provided also that if a particular zone or multi-zone falls in both the successor States, then the employees of such zonal or multi-zonal cadre shall be finally allotted to one or the other successor States in terms of the provisions of this sub-section.

77(3)        Every person who is finally allotted under the provisions of sub-section (2) to a successor State shall, if he is not already serving therein, be made available for serving in the successor State from such date as may be agreed upon between the Governments of the successor States or, in default of such agreement, as may be determined by the Central Government:
Provided that the Central Government shall have the power to review any of its orders issued under this section.
78. (1)      Nothing in this section or in section 77 shall be deemed to affect, on or after the appointed day, the operation of the provisions of Chapter I of Part XIV of the Constitution in relation to determination of the conditions of service of persons serving in connection with the affairs of the Union or any State:
Provided that the conditions of service applicable immediately before the appointed day in the case of any person deemed to have been allocated to the State of Andhra Pradesh or to the State of Telangana under section 77 shall not be varied to his disadvantage except with the previous approval of the Central Government.
78. (2)      All services prior to the appointed day rendered by a person,—
(a) if he is deemed to have been allocated to any State under section 77, shall be deemed to have been rendered in connection with the affairs of that State;
(b) if he is deemed to have been allocated to the Union in connection with the administration of the successor State of Telangana, shall be deemed to have been rendered in connection with the affairs of the Union, for the purposes of the rules regulating his conditions of service.

78. (3)      The provisions of section 77 shall not apply in relation to members of any All-India Service. Provisions relating to other services.
79. Every person who, immediately before the appointed day, is holding or discharging the duties of any post or office in connection with the affairs of the existing State of Andhra Pradesh in any area which on that day falls within one of the successor States shall continue to hold the same post or office in that successor State, and shall be deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or other appropriate authority in, that successor State:
Provided that nothing in this section shall be deemed to prevent a competent authority, on and from the appointed day, from passing in relation to such person any order affecting the continuance in such post or office.
80. (1)      The Central Government may, by order, establish one or more Advisory Committees, within a period of thirty days from the date of enactment of the Andhra Pradesh Reorganisation Act, 2014, for the purpose of assisting it in regard to––
(a) the discharge of any of its functions under this Part; and
(b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this Part and the proper consideration of any representations made by such persons.
80. (2)      The allocation guidelines shall be issued by the Central Government on or after the date of enactment of the Andhra Pradesh Reorganisation Act, 2014 and the actual allocation of individual employees shall be made by the Central Government on the recommendations of the Advisory Committee:
Provided that in case of disagreement or conflict of opinion, the decision of the Central Government shall be final:
Provided further that necessary guidelines as and when required shall be framed by the Central Government or as the case may be, by the State Advisory Committee which shall be approved by the Central Government before such guidelines are issued.
81. The Central Government may give such directions to the State Government of Andhra Pradesh and the State Government of Telangana as may appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the State Governments shall comply with such directions.
82. On and from the appointed day, the employees of State Public Sector Undertakings, corporations and other autonomous bodies shall continue to function in such undertaking, corporation or autonomous bodies for a period of one year and during this period the corporate body concerned shall determine the modalities for distributing the personnel between the two successor States.
83. (1)      The Public Service Commission for the existing State of Andhra Pradesh shall, on and from the appointed day, be the Public Service Commission for the State of Andhra Pradesh.
83,(2)       There shall be constituted a Public Service Commission in accordance with article 315 of the Constitution by the successor State of Telangana, and until such Commission is constituted, the Union Public Service Commission may, with the approval of the President, agree to serve the needs of the State of Telangana in terms clause (4) of that article.
83. (3)      The persons holding office immediately before the appointed day as the Chairman or other member of the Public Service Commission for the existing State of Andhra Pradesh shall, as from the appointed day, be the Chairman or, as the case may be, the other member of the Public Service Commission for the State of Andhra Pradesh.
83. (4)      Every person who becomes the Chairman or other member of the Public Service Commission for the State of Andhra Pradesh on the appointed day under sub-section (3) shall––
(a) be entitled to receive from the Government of the State of Andhra Pradesh conditions of service not less favourable than those to which he was entitled under the provisions applicable to him;
(b) subject to the proviso to clause (2) of article 316, hold office or continue to hold office until the expiration of his term of office as determined under the provisions applicable to him immediately before the appointed day.

83. (5)      The report of the Andhra Pradesh Public Service Commission as to the work done by the Commission in respect of any period prior to the appointed day shall be presented under clause (2) of article 323 to the Governors of the States of Andhra Pradesh and Telangana and the Governor of the State of Andhra Pradesh shall, on receipt of such report, cause a copy thereof together with a memorandum explaining as far as possible, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State of Andhra Pradesh and it shall not be necessary to cause such report or any such memorandum to be laid before the Legislative Assembly of the State of Telangana.

Tuesday 25 August 2015

NITI Aayog

NITI Aayog

From Wikipedia, the free encyclopedia
NITI Aayog
नीति आयोग
Neeti Aayog
National Institution for Transforming India
Agency overview
Formed1 January 2015; 7 months ago
Preceding
JurisdictionGovernment of India
HeadquartersNew Delhi
Agency executive
Websiteniti.gov.in
NITI Aayog (Hindiनीति आयोग, lit. "Policy Commission") or National Institution for Transforming India Aayog is a policy think-tank of Government of India that replaces Planning Commission and aims to involve the states in economic policy-making in India. It will be providing strategic and technical advice to the central and the state governments i.e. by adopting bottom-up approach rather than traditional top-down approach as in planning commission. The Prime Minister heads the Aayog as its chairperson.[1] While the Planning Commission had no representation for State and Union territories, the NITI Aayog has.
Union Government of India had announced formation of NITI Aayog on 1 January 2015.[1][2] The first meeting of NITI Aayog was held on 8 February 2015[3] The website of the Aayog has a unique feature of NITI Blogs, which incorporates articles, field reports, work in progress, and opinions by NITI officials.[4]
There are a couple of things to be considered here. NITI Aayog would therefore mean:
• A group of people with authority entrusted by the government to formulate/regulate policies concerning transforming India.
• It is a commission to help government in social and economic issues.
• Also it's an Institute of think tank with experts in it.
India's Finance Minister Arun Jaitley made the following observation on the necessity of creating NITI Ayog: “The 65-year-old Planning Commission had become a redundant organisation. It was relevant in a command economy structure, but not any longer. India is a diversified country and its states are in various phases of economic development along with their own strengths and weaknesses. In this context, a ‘one size fits all’ approach to economic planning is obsolete. It cannot make India competitive in today’s global economy” [5]

Renaming of Planning Commission[edit]

  • May 29, 2014 -> According to the first IEO(Independent Evaluation Office ) assessment report which was submitted to Prime Minister Modi on May 29, Planning Commission to be replaced by "control commission"[6]
  • 15th -17th Aug. 2014 –> Govt. of India officials viewed Planning Commission to be replaced with a diluted version of the National Development and Reform Commission (NDRC) of China "[7]
  • 1st January 2015 –> Cabinet resolution to replace Planning Commission by NITI Aayog (National Institution for Transforming India) "[8]
  • February 8, 2015: The first meeting of NITI Aayog was chaired by Narendra Modi.[3]

Origin and formation[edit]

  • 1950 : Planning commission was established
  • May 29, 2014 : The first IEO(Independent Evaluation Office ) assessment report was submitted to Prime Minister Modi on May 29, three days after he was sworn in. According to Ajay Chibber, who heads the IEO, views in the report are based on the views of stakeholders and some Planning Commission members themselves. Planning Commission to be replaced by "control commission"
  • August 13, 2014 : Cabinet of Modi govt. scrapped the Planning Commission
  • Aug. 15 2014 : Modi mentioned to replace Planning Commission by National Development and Reform Commission(NDRC) on the line of China

Members[edit]

The NITI Aayog comprises the following:
  1. Prime Minister of India as the Chairperson
  2. Governing Council comprising the Chief Ministers of all the States and Union territories with Legislatures and lieutenant governors of other Union Territories.
  3. Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee
  4. Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister
  5. Full-time organizational framework (in addition to Prime Minister as the Chairperson) comprising
    1. Vice-Chairperson: Arvind Panagariya
    2. Members: Two (2) Full-time: economist Bibek Debroy and former DRDO chief V.K. Saraswat
    3. Part-time members: Maximum of two from leading universities research organizations and other relevant institutions in an ex-officio capacity. Part-time members will be on a rotational basis
    4. Ex Officio members: Maximum of four members of the Union Council of Ministers to be nominated by the Prime Minister
    5. Chief Executive Officer: To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India. Sindhushree Khullar appointed as the Chief Executive Officer.
    6. Secretariat as deemed necessary [9]

Present Members[edit]

The various members of NITI Aayog are:[2][11][12]
  1. Chairperson: Prime Minister Narendra Modi
  2. CEO: Sindhushree Khullar IAS
  3. Vice Chairperson: Arvind Panagariya
  4. Ex-Officio Members: Rajnath SinghArun JaitleySuresh Prabhu and Radha Mohan Singh
  5. Special Invitees: Nitin GadkariSmriti Zubin Irani and Thawar Chand Gehlot
  6. Full-time Members: Bibek Debroy & V. K. Saraswat
  7. Governing Council: All Chief Ministers and Lieutenant Governors of States and Union Territories

Difference between NITI Aayog and Planning Commission[edit]

Financial clout
NITI Aayog – To be an advisory body, or a think-tank. The powers to allocate fund vested in the finance ministry.
Planning Commission – Enjoyed the powers to allocate funds to ministries and state governments
Full-time members
NITI Aayog – Two full-time members.
Planning Commission – had eight full-time members
States' role
NITI Aayog – Includes the Chief Ministers of all States and the Lieutenant Governors of all Union territories in its Governing Council, devolving more power to the States of the Union.[13]
Planning Commission – States' role was limited to the National Development Council and annual interaction during Plan meetings
Member secretary
NITI Aayog – To be known as the CEO and to be appointed by the prime minister
Planning Commission – Secretaries or member secretaries were appointed through the usual process
Part-time members
NITI Aayog – To have a number of part-time members, depending on the need from time to time
Planning Commission – Full Planning Commission had no provision for part-time members
Constitution
Niti Aayog – Governing Council has state chief ministers and lieutenant governors.
Planning Commission- The commission reported to National Development Council that had state chief ministers and lieutenant governors.
Organization
Niti Aayog – New posts of CEO, of secretary rank, and Vice-Chairperson. Will also have two full-time members and part-time members as per need. Four cabinet ministers will serve as ex-officio members.
Planning Commission – Had deputy chairperson, a member secretary and full-time members.
Participation
Niti Aayog- Consulting states while making policy and deciding on funds allocation. Final policy would be a result of that.
Planning Commission- Policy was formed by the commission and states were then consulted about allocation of funds.
Allocation
Niti Aayog- No power to allocate funds
Planning Commission- Had power to decide allocation of government funds for various programs at national and state levels.
Nature
Niti Aayog- NITI is a think-tank and does not have the power to impose policies.
Planning Commission- Imposed policies on states and tied allocation of funds with projects it approved.

Aims and Objectives of NITI Ayog[edit]

NITI Aayog will seek to provide a critical directional and strategic input into the development process.
The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states.
NITI Aayog will emerge as a "think-tank" that will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy.
The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation.
The NITI Aayog will develop mechanisms to formulate credible plans to the village level and aggregate these progressively at higher levels of government. It will ensure special attention to the sections of society that may be at risk of not benefitting adequately from economic progress.
The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through a collaborative community of national and international experts, practitioners and partners. It will offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda.
In addition, the NITI Aayog will monitor and evaluate the implementation of programmes, and focus on technology upgradation and capacity building.
Through the above, the NITI Aayog will aim to accomplish the following objectives and opportunities:
  • An administration paradigm in which the Government is an "enabler" rather than a "provider of first and last resort."
  • Progress from "food security" to focus on a mix of agricultural production, as well as actual returns that farmers get from their produce.
  • Ensure that India is an active player in the debates and deliberations on the global commons.
  • Ensure that the economically vibrant middle-class remains engaged, and its potential is fully realized.
  • Leverage India's pool of entrepreneurial, scientific and intellectual human capital.
  • Incorporate the significant geo-economic and geo-political strength of the Non-Resident Indian Community.
  • Use urbanization as an opportunity to create a wholesome and secure habitat through the use of modern technology.
  • Use technology to reduce opacity and potential for misadventures in governance.
The NITI Aayog aims to enable India to better face complex challenges, through the following:
  • Leveraging of India's demographic dividend, and realization of the potential of youth, men and women, through education, skill development, elimination of gender bias, and employment
  • Elimination of poverty, and the chance for every Indian to live a life of dignity and self-respect
  • Reddressal of inequalities based on gender bias, caste and economic disparities
  • Integrate villages institutionally into the development process
  • Policy support to more than 50 million small businesses, which are a major source of employment creation
  • Safeguarding of our environmental and ecological assets.

Major Highlights[edit]

1. The new National Institution for Transforming India (NITI) will act more like a think tank or forum and execute programs by taking the States along with them. This is in sharp contrast with the defunct Planning Commission which imposed five-year-plans and allocated resources while running roughshod over the requests of the various States.
2. NITI will include leaders of India's 29 states and seven union territories. But its full-time staff – a deputy chairman, Chief Executive Officer and experts – will answer directly to the Prime Minister of India, who will be chairman.
3. The opposition Congress mocked the launch as a cosmetic relabelling exercise – the new body's acronym-based name means 'Policy Commission' in Hindi, suggesting a less bold departure than the English version does. Several believe that is consistent with the negativism that has become the hallmark of the Congress.
4. Despite being blamed by critics for the slow growth that long plagued India, the Commission survived the market reforms of the early 1990s, riling Mr Modi with its interventions when he was Chief minister of industry and investor friendly Gujarat.
5. Mr Modi, elected by a landslide last year on a promise to revive flagging growth and create jobs, had vowed to do away with the Planning Commission that was set up in 1950 by Congressman and Prime Minister Jawaharlal Nehru.
6. But his plans been derided by the Congress party, which wants to defend the Nehru legacy and describes Mr Modi's vision of "cooperative federalism" as cover for a veiled power grab.
7. India's first Prime Minister Jawaharlal Nehru, a socialist who admired Joseph Stalin's drive to industrialize the Soviet Union, set up and chaired the Commission to map out a development path for India's agrarian economy.
8. In 2012, the Planning Commission was pilloried for spending some Rs. 35 lakh to renovate two office toilets, and then it was lampooned for suggesting that citizens who spent Rs. 27 or more a day were not poor.
9. The commission had remained powerful over the decades because it had emerged as a sort of parallel cabinet with the Prime Minister as its head.
10. The Commission's power in allocating central funds to states and sanctioning capital spending of the central government was deeply resented by states and various government departments.
11. The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong Nation.

Criticisms of NITI Aayog[edit]

The government's move to replace the Planning Commission with a new institution called 'NITI Aayog’ was criticised by opposition parties of India. The Congress sought to know whether the reform introduced by the BJP-led government was premised on any meaningful programme or if the move was simply born out of political opposition to the party that ran the Planning Commission for over 60 years. "The real issue is do you (the government) have a substantive meaningful programme to reform the Planning Commission?" Congress spokesperson Abhishek Manu Singhvi said. "If you (the BJP government) simply want to abolish it (the commission), because it is something which (Jawaharlal) Nehru created for this country and you don't like Nehru or simply because it was run by the Congress for 60 years and you don't like the Congress, that is pitiable," he said.
The Communist Party of India-Marxist said a mere change in the name would not yield the desired results. "Mere changing this nomenclature, and this sort of gimmickry is not going to serve the purpose. Let us wait and see what the government is eventually planning," CPI-M leader Sitaram Yechury said.
The Planning Commission used to plan policy. I don't know what is the government trying to do by merely changing the nomenclature from Planning Commission to Neeti Ayog," said Congress spokesman Manish Tewari.
However, Commerce and Industry Minister Nirmala Sitharaman of BJP accused the critics of being “ignorant of facts”.
“With the new set of changes, the state governments no longer need to have a begging attitude and instead take independent steps for development,” said Sitharaman. With this the NDA government is fulfilling one more of its key promises of robust federalism.
"The idea to create an institution where states' leaders will be part and parcel of the collective thinking with the Centre and other stakeholders in formulating a vision for the development of the country is right on as compared with the previous structure, where a handful of people formulated the vision and then presented it to the National Development Council (NDC). This was not entirely absorbed and adopted by the latter," said former Planning Commission member Arun Maira.
In fact, a recent survey of expert opinions in the magazine "Business World" shows that either a very clear distinction of roles of NDC, Governing Council and Inter State Council or a merger of one or two with a vibrant and functional ISC can serve the two key goals of such forums: policy development and conflict resolution.[14]