Brief Status Of Pds, Bpl Industrial Growth And Unemployment In Assam1

Brief Status of PDS, Unemployment and Industrial Growth in Assam 1. PUBLIC DISTRIBUTION SYSTEM: (PDS) Coverage: • 33302 Fair Price Shops in Assam (FPS). • Population covered per FPS is approximately 904 • Average monthly off take in 2006-07 was 1.02 metric ton against monthly average requirement of 1.68 MT (Page-55- Assam Economic Survey 2007)

Below Poverty Line (BPL): Introduced in 1997 • Currently 12.02 lakh families ( As per FCI 16.11 lakhs http://www.fcinez.com/gen.htm) • 32.946 KG Rice per family per month @ Rs.6.27 to 6.67 per KG. In addition wheat, S.K. Oil, Sugar and Salt are also provided (Page-54- Assam Economic Survey 2007)

Above Poverty Line ( APL): • 41.14 lakh families ( As per FCI 34 lakhs http://www.fcinez.com/gen.htm) • 35 KG of Rice per family at Govt. fixed price

(Page-54- Assam Economic Survey 2007)

Antodyoya Anna Yojona ( AAY): Introduced in 2001 • 7.04 lakh families ( As per FCI 2.81 lakhs http://www.fcinez.com/gen.htm) • 35 KG of rice per month per family @ Rs.6/-. In addition wheat, S.K. Oil, Sugar and Salt are also provided. (Page-54- Assam Economic Survey 2007)

Evidence of the irregularities in Implementation: CAG performance Audit Report No. 16 of 2006 for the period between 200001 to 2004-05 had made following specific observations in case of the management of food grain distribution in Assam: Lists of beneficiaries not updated leading to continuance of bogus cards. • Either no yearly review was conducted or there was no evidence of such a review having been conducted in Assam Diversions in distribution of foodgrains • Scrutiny of records of Assam during the period 2000-2005 disclosed there was abnormal leakage/ diversions of more than 25 to 40 per cent in Assam • Out of central allocation of 16.47 lakh MT, the Directorate re-allocated 14 lakh MT to Roller Flour Mills. In six test checked districts, only 1949 MT (0.66%) of milled atta was distributed during 2000-05 to PDS nominees and balance of 2.92 lakh MT (99.34%) was sold in the open market at PDS rate. Operation of Fair Price Shops (FPS) • Stock position, beneficiaries attached, and scale of ration allowed had not been displayed in Assam Monitoring through Vigilance Committees (VCs) • VCs were either not formed at any level or were found defunct in Assam, Inspection by DLOs and VCs • In Assam either the FPS were not inspected or the frequency of the inspection was much lower than prescribed. A government-commissioned study conducted by the National Council for Applied Economic Research (NCAER found that 84 percent of BPL cards in Assam had been distributed to the rich. 1

Assam has been bracketed as seriously hunger category of states. (Source: INDIA STATE HUNGER INDEX, Washington, D.C., Bonn, and Riverside • February 2009.

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2. UNEMPLOYMENT •

The strength of total employed persons in Government and private sectors was 11.10 lakhs in 2000 and 11.19 lakhs in 2006. Thus in six years the addition is only 11000.

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The percentage of unemployed was 29% in 2000 and 39% in 2006.

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Employment in Public and Private Sector in Assam Year

1 1998 1999 2000 2001 2002 2003 2004 2005 2006

Privat e Secto r 2 5.23 5.47 5.76 6.05 5.54 5.51 5.72 6.25 6.00

Public Sector 3

Total

4 In Lakh 5.29 10.52 5.34 10.81 5.35 11.11 5.26 11.31 5.30 10.84 5.28 10.79 5.25 10.97 5.28 11.53 5.20 11.19

Jobseekers in the Live Register 5 16.19 16.35 15.72 15.25 15.72 15.68 16.31 17.63 18.27

No. of Unem ployed 6 (4-5) 5.67 5.54 4.62 3.94 4.88 4.89 5.34 6.10 7.08

% of Unempl oyed

No. of Notified Vacancy

7

8

% 35% 34% 29% 26% 31% 31% 33% 35% 39%

No. of Placemen t

9 In Nos. 4325 2815 3162 1620 2500 1383 2525 942 1844 747 1297 737 703 253 2380 148 3170 551

Source: Statistical Handbook of Assam2002 page169 and page 166-169 2007

3. INDUSTRIAL GROWTH • •

Petroleum and petroleum products and natural Gas are the major industrial products of the State. The State produces about 15.6 per cent of the world.s tea and 55 per cent of India.s tea production.

Target: • 11th Plan target of Assam for Industrial growth is 8% against the all India target of 10.50. Industrial Investment: • Lists of Industrial Entrepreneur Memorandums (IEMs) Filled and Granted Since August 1991 to December 2007 (Source: 11th Plan Document) Units

Assa m India % Shar e of Assa m

INDUSTRIAL ENTREPRENEUR LETTERS OF INTENT (LOIs) MEMORANDUM (IEMs) +DIRECT Industrial License No. of Propose Proposed No. of Propose Prop IEM d Employm IEMs d Employm applicati Investm ent grant Investm ent on filled ent Inv. ed ent (Rs.Cr.) (Rs.Cr.) 10059 69219 13 2435 4606 486 72493 3192641 14556300 12891 128911 925550 1 0.67% 0.32% 0.48% 0.01% 1.89% 0.50%

Page-166 Annual Report, Ministry of Commerce & Industry, Govt. of India

• FOREIGN DIRECT INVESTMENT (FDI) EQUITY INFLOWS (from April 2000 to January 2009): RBI Region 3

Amount of FDI

%age with

Guwahati (Assam & 6 other NE states) India total MUMBAI ( MAHARASHTRA, DADRA & NAGAR HAVELI, DAMAN & DIU) NEW DELHI ( DELHI, PART OF UP AND HARYANA) AHMEDABAD (Gujrat)

Inflows Rupees FDI inflows in crores 228.85 0.07 % 351,731.09 123,773.94

35.19%

55,308.98

15.72

23,877.01

6.79

FDI Statistics, Ministry of Commerce & Industry, Govt. of India

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Index of Industrial Development:

Assam India Mean

Mid-80s (1984-85)

Mid-90s (1994-95)

Index 8.182 10.068

Index 4.908 7.866

Rank 12

Rank 16

Source: Page-17, GROWTH OF EMPLOYMENT AND OUTPUT OF ORGANISED MANUFACTURING SECTOR IN INDIA: AN INTERSTATE ANALYSIS, DEPARTMENT OF ECONOMICS, UNIVERSITY OF MUMBAI

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Status of State Public Sector Enterprises (As on 01-Sep-2006) Performing well= 5 ( 2 with dividend and 3 with no loss) LOSING BUT WITH IMPROVING TREND=7 LOSING AND CLOSURE DECIDED BY THE CABINET=9 (Industry and commerce-5) LOSING AND CLOSURE PROPOSAL IN PROCESS=3 ( all industry and commerce) LOSING BUT IN OPERATION=19 (4 Industry and commerce) LOSING AND INOPERATIVE= 5 (1 Industry and commerce) Closure decided=5 Closure proposed=3 Under lease=2 Department of Public Enterprises, Government of Assam http://dpeasom.gov.in/status.html

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Sectoral Contribution to State Economy at Constant (19992000) Prices (Rupees in lakh)

Sector / Agricultu Industry Year re and Allied

Service

Total GDP

200203 200304 200405 200506 200607 200708

188483 0 200761 0 210294 4 230033 9 256725 1 290248 4

392332 8 415953 4 437262 4 463414 8 498503 0 538231 6

1217058

821440

1235493

916431

1301620

968060

1344444

989365

1386632

103114 7 106403 3

1415799

% Share of Agri 31.02 % 29.70 % 29.77 % 29.01 % 27.82 % 26.30 %

% % Share Share of of Industr service y 20.94% 48.04 % 22.03% 48.27 % 22.14% 48.09 % 21.35% 49.64 % 20.68% 51.50 % 19.77% 53.93 %

Source: Vol-I, Chapter-II, Draft Annual Plan 2009-10, Planning & Development Department, Govt. of Assam

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The National Human Development Report 2001 places Assam at the 14th place in terms of the Human Development Index value, among the 15 States compared and at the 26th place among the 32 States compared in terms of the Human Development Index. In the 27th place among the 32 States compared in terms of Human Poverty Index 29th out of the 32 States compared in terms of Gender Disparity Index Rank.

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