According to news reports, the Prime Minister recently chaired a meeting with ministers to discuss an alternative plan (“Plan B”) for the National Food Security Bill, 2011 (hereinafter “Bill”). The Bill is currently pending with the Standing Committee of Food, Consumer Affairs and Public Distribution. It seeks to deliver food and nutritional security by providing specific entitlements to certain groups. The alternative proposal aims to give greater flexibility to states and may bind the centre to a higher food subsidy burden than estimates provided in the Bill. It suggests changes to the classification of beneficiaries and the percentage of the national population to be covered by the Bill, among others. Classification of beneficiaries The Bill classifies the population into three groups: priority, general and excluded. Individuals in the priority and general groups would receive 7 kg and 3 kg of foodgrain per person per month respectively at subsidized prices. Plan B suggests doing away with the priority-general distinction. It classifies the population on the basis of 2 categories: included and excluded. Those entitled to benefits under the included category will receive a uniform entitlement of 5 kg per person per month. Coverage of population Experts have suggested that the Bill will extend entitlements to roughly 64% of the total population. Under the Bill, the central government is responsible for determining the percentage of people in each state who will be entitled to benefits under priority and general groups. Plan B suggests extending benefits to 67% of the total population (33% excluded), up from 64% in the Bill. The Ministry has outlined two options to figure out the number of people in each state that should be included within this 67%. The first option envisages a uniform exclusion of 33% in each state irrespective of their poverty level. The second option envisages exclusion of 33% of the national population, which would imply a different proportion excluded in each state depending on their level of prosperity. The Ministry has worked out a criterion to determine the proportion of the population to be included in each state. The criterion is pegged to a monthly per capita expenditure of Rs 1,215 in rural areas and Rs 1,502 in urban areas based on the 2009-10 NSSO survey. Thus, persons spending less than Rs 40 in rural areas and Rs 50 in urban areas per day will be entitled to foodgrains under the alternative being considered now. Financial estimates Newspaper reports have indicated that the revised proposal will add Rs 7,000 to Rs 10,000 crore per year to the current food subsidy estimate of Rs 1.1 lakh crore. According to some experts, the total cost of the Bill could range anywhere between Rs 2 lakh crore to Rs 3.5 lakh crore (see here and here).
On November 28, 2012, the Comptroller and Auditor General submitted its report on the implementation of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). According to the report most of the projects initiated under JNNURM have not been completed. For instance with respect to urban infrastructure projects, only 231 projects out of the 1298 sanctioned projects have been completed. Similarly, with respect to housing projects, only 22 of the 1517 projects have been completed. Some of the other key recommendations of the report are:
The need and objectives of JNNURM According to the 2011 census India’s urban population has increased from 286 million in 2001 to 377 million in 2011 . With the increase in urban population, there is a requirement to improve the urban infrastructure and improve the service delivery mechanisms. With these specific objectives in mind, the central government launched the Jawaharlal Nehru National Urban Renewal Mission 2005-2006. The aim of the Mission is to encourage reforms and fast track planned development of identified cities (such as cities with a population of more than 1 million as per the 2001 census). JNNURM has two main components namely : (i) Urban Infrastructure and Governance and (ii) Urban Infrastructure Development for Small and Medium Towns. The duration of JNNURM was from 2005-06 to 2011-12. However, as the projects have not been completed the Government has extended its duration until March 2014. Funds for JNNURM The funds for JNNURM are provided through the Additional Central Assistance. This implies that the funds are provided as grants to the states directly from the centre. In the 2012 Union Budget, the central government has allocated Rs 12,522 crore for JNNURM. This represents around 10 % of the total central assistance through the different schemes to states and union territories in 2012-13. As on June 30 2012, 554 projects at a total cost of Rs 62,253 crore have been sanctioned under the Urban Infrastructure and Governance sub-mission of JNNURM. The table below shows the status of the sanctioned JNNURM projects in the different states. State wise status of the projects under JNNURM (as on August 6, 2012)
| Name of State | Total Allocation (Rs Lakh) | Number of sanctioned projects | Completed Projects |
| Andhra Pradesh | 2,11,845 | 52 | 18 |
| Arunachal Pradesh | 10,740 | 3 | NA |
| Assam | 27,320 | 2 | NA |
| Bihar | 59,241 | 8 | NA |
| Chandigarh | 27,087 | 3 | NA |
| Chattisgarh | 24,803 | 1 | NA |
| Delhi | 2,82,318 | 23 | 4 |
| Goa | 12,094 | 2 | NA |
| Gujarat | 2,57,881 | 72 | 40 |
| Haryana | 32,332 | 4 | NA |
| Himachal Pradesh | 13,066 | 5 | NA |
| Jammu & Kashmir | 48,836 | 5 | NA |
| Jharkhand | 94,120 | 5 | NA |
| Karnataka | 1,52,459 | 47 | 22 |
| Kerala | 67,476 | 11 | NA |
| Madhya Pradesh | 1,32,850 | 23 | 7 |
| Maharashtra | 5,50,555 | 80 | 21 |
| Manipur | 15,287 | 3 | NA |
| Meghalaya | 15,668 | 2 | NA |
| Mizoram | 14,822 | 4 | NA |
| Nagaland | 11,628 | 3 | NA |
| Orissa | 32,235 | 5 | NA |
| Punjab | 70,775 | 6 | 1 |
| Puducherry | 20,680 | 2 | NA |
| Rajasthan | 74,869 | 13 | 2 |
| Sikkim | 10,613 | 2 | NA |
| Tamil Nadu | 2,25,066 | 48 | 12 |
| Tripura | 14,018 | 2 | NA |
| Uttar Pradesh | 2,76,941 | 33 | 4 |
| Uttarakhand | 40,534 | 14 | NA |
| West Bengal | 3,21,840 | 69 | 15 |
Source: Jawaharlal Nehru National Urban Renewal Mission; PRS.
