Foreword || A Review of the Economic Situation || The Perspective || Rate and Pattern of Growth || Financial Resources || Plan Outlays and Programmes of Development || Resolution of the National Development Council on Power and Irrigation Systems || Resolution of the National Development Council on the Fifth Five Year Plan || Annexures

Chapter-6a:
Resolution of the National Development Council on Power and Irrigation Systems

Resolution on Power and Irrigation Systems

Heavy investments have been made by the country in irrigation and power system and it is certain that these secto will, in the forseeble future, continue to absorb a large share of plan resources. It is, therefore, a matter v. of prime importance that these sectors should no longer be a burden on the States' finances but should contribute something to them.

In the case of power systems, while there is scope to raise tariffs, the improvement in financial results should come largely from a higher level of utilisation of the existing capacity, particularly thermal power plants, reduction in overheads and operating expenses, reduction in transmission and distribution losses, better collection of dues, prevention of theft and timely completion of projects. In addition, full advantage should be taken of the opportunities for the exchange of surplus power between States and regions and for integrated operation of hydel and thermal plants so that capacities are optimally utilised.

The major opportunity for covering expenses and increasing revenues in irrigation projects lies in raising water rates whenever they are far below the cost. There is also considerable scope for improved management of the irrigation systems and for ensuring that projects are implemented on schedule.

Taking note of the above -

The National Development Council hereby resolves that irrigation systems should cover working expenses and yield, if possible, something more and that power systems should cover working expanses and yield reasonable returns on investment by taking steps expeditiously to-

1. make maximum use of the capacity already created in the power and irrigation systems,
2. reduce costs by cutting overheads and operating expenses, minimising losses and thefts and improving collection of dues,
3. complete projects on schedule through efficient project management,
4. raise rates where necessary.