New Delhi: Close on the heels of Prime Minister Narendra Modi’s announcement of scrapping the Planning Commission, the Prime Minister’s Office (PMO) has started working on an ambitious plan to set up a National Development Authority that will eventually go on to replace the plan panel.
Sources in the PMO claimed that the National Development Authority will not just go on to replace the Planning Commission but will also introduce significant changes in the way the plan panel had been working since its inception.
The most significant change would be that the new agency will focus more on mobilisation of resources and funds for states through a public-private partnership model rather than merely allocating resources to them from the central pool, sources said.
In addition, the new authority will encourage states to have greater participation in Centrally-sponsored schemes and will work jointly in collaboration with them rather than just giving financial assistance.
It will help states with greater expertise on mobilisation of resources by involving private investments, better implementation of schemes in a time-bound manner and help provide financial assistance linked to the progress of a particular scheme or project.
“Till now, the planning commission would merely have discussions with the states at the time of allocating them a financial package and then there would be virtually no dialogue between the Centre and the state as to how the money was being utilised. Now, this will change,” an official said.
Sources claimed the PMO is working on a plan where states will be “technically equipped” to further increase their own financial resources so that its dependence on the Centre also reduces.
It will help the states work out a financial plan for all their expenses for various projects and then see where it can assist them by bringing in private players with technological assistance as well.
