Government of India
Planning Commission
Yojana Bhawan, Sansad Marg,
New Delhi-1100 001

Subject:  
Guidelines regarding inclusion of new schemes in the Plan, enhancement of Five Year Plan/Annual Plan outlay,major changes in the scope and investment approval of the Plan Schemes,for the Central Ministries/Departments

  1. Proposals are often received from the Ministries for inclusion of new schemes in the Plan,enhancement of Five Year Plan / Annual Plan outlays,major changes in scope of the schemes (including change in objectives , criteria and pattern of assistance / subsidies etc.) .In this regard ,inclusion of new schemes in the Plan requires 'in principle' approval of Planning Commission before they are submitted for approval to competent authorities as per existing delegation of powers. From the Eleventh Five Year Plan ,the following procedure would be adopted for inclusion of schemes / Projects in the Plan.
    1. Schemes that would not require 'In principle' approval:
      Formulation of Five Year Plan is a detailed exercise preceded by extensive deliberations and consultations by the Working Groups and steering Committees The existing schemes are examined by the Working Groups /Steering Committees. and revamping / modifications / strengthening are suggested in many cases. The Steering Group also recommend initiation of new schemes to fulfill specific objectives after taking into account the plan priorities and the availability of resources.
      1. Schemes that would not require 'In principle' approval:
        In case the existing schemes which need to be continued in the next Plan,no 'in principle approval would be required.This does not however mean that schemes can be continued from one Plan to another without going through a rigorous Zero Based Budgeting exercise.In case a new component is to be added to an existing scheme,this would be considered by the steering Committee and recommended for inclusion in the Five Year Plan . In case the component to be added is included in the Five Year Plan with adequate allocation of resources , the additional component in existing Schemes would not require 'in principle' approval.
      2. The new Schemes / Projects which are proposed to be taken up in the Plan have to be indicated in the Plan Document and financial resources have to be fully provided for that scheme / project . In such cases , 'in principle approval of the Planning Commission would not be required
      3. It may be noted that a mere mention of a project / scheme / additional component in an existing scheme without adequate plan provision at the beginning of the Five Year Plan would not be exempted from the disciple of 'in principle approval procedure . In brief , only the new schemes / projects / additional components that have been included in Five Year Plan with full provision of resources would not require in principle approval.
    2. Schemes that would require 'in principle' approval
      1. Scheme/ Project/ additional component in an existing scheme which could not be included in the Five Year Plan with adequate provision would require in principle approval of the planning commission before the Ministries/ Departments seek sanction of the appropriate authorities for taking up scheme/ project
      2. For seeking in principle' approval, the Ministries / Departments should submit a detailed report to the Planning Commission on the justification for the new scheme / project with a broad outline of the proposed scheme / project
      3. After obtaining 'in principle' approval, the Ministries / Departments shall conduct an exercise to find resources for the proposed scheme / project / additional component in an existing scheme in consultation with Planning Commission. This would require a detailed analysis of requirement and availability of funds for the existing Schemes and Projects. In case requirement of funds is higher than the availability, the Ministries/ Departments should undertake a reprioritization exercise in consultation with subject division in Planning Commission and based on the result give details of commitments on on-going schemes / projects along with the requirement and availability of funds for the proposed scheme / project additional component in an existing scheme clearly spelling out the implications of the reprioritization (in term of re-phasing of on-going schemes and / or weeding out of schemes together with its impact on physical output).
      4. After obtaining 'in principle' approval of Planning Commission (which would mean specific approval of Secretary Planning Commission) and tying up financial resources, the Ministry / Department would process the scheme / project / additional component in an existing scheme to obtain necessary approvals as per existing delegation of powers through SFC / EFC / PIB, as the case may be.
  2. Enhancement of Five Year Plan/Annual Plan outlays: The Five Year Plans are generally indicative in nature. They are operational zed through annual plans. As such outlays to be provided by the Planning Commission for the annual plan will take into consideration such adjustments and enhancement as may be necessary. After the annual plan have been finalized and corresponding amounts provided in the budget of the Central Ministries, upward revision of more than 10% of the Budget Estimate at the revised estimate stage, should be referred by the concerned Ministry to the Planning Commission and it is only after the Planning Commission concurs that these should be taken up with the Ministry of Finance for Supplementary Grants
  3. Change in Scope:
    Major changes in the scope of the schemes already included in the Plan, in terms of change in objectives, coverage of population, criteria, pattern of subsidy, assistance etc. should be first referred to the Planning Commission for obtaining concurrence in the same manner as a new scheme (Item 1 above) before the revised scheme is processed for sanction by the competent authority. In case of continuing CSS, approval for change in scope etc., may be sought as per the existing procedure and delegation of authority from the Planning Commission, as in other Plan Schemes.
  4. Sanction of the Scheme:
    All continuining and new schemes included in the Five Year Plan are to be sanctioned by the competent authority ( Board of companies/Ministries/Ministry of Finance /CCEA) after the recommendations of the respective body (DSC /SFC /EFC/ PIB etc.) as the case may be , in accordance with the existing delegation of financial powers. These approvals should be processed by the Central Ministries only after necessary Plan provisions are available in the Five Year Plan / Annual Plan .In case of new schemes , these should be processed after the Planning Commission has concurred to their inclusion in the Plan.
  5. Procedure for Introduction of a new Centrally Sponsored Scheme(CSS):
    Approval of full Planning Commission is necessary for including a CSS in the Plan.For introduction of a new Centrally Sponsored Scheme (CSS , which meets the criteria laid down by the Committee of National Development Council (NDC), the Ministries/Departments should first obtain an 'in principle ' approval of the Planning Commission ,(Specific approval of Secretary ,Planning Commission ) giving justification for introduction of the scheme and indicating :
    1. whether the existing Centrally Sponsored Scheme being run by the Ministry/Department have been reviewed and schemes identified for closure, weeding out and / or merger with full details thereof.
    2. whether an exercise has been carried out for avoidance of multiplicity of implementation machinery , and if so , results there of.
    3. Scheme Wise details of number of posts sanctioned/created at the Ministry/Department , Central,State and District level.
    4. Whether any renationalization exercise has been undertaken ,and if so ,details there of;
    5. Are there existing schemes with similar objectives in the Ministry/Department of other Central Ministries/Departments and / or schemes with similar objectives being implemented by the State Governments , and if so , details thereof and the justification for taking up the new scheme instead of strengthening/modifying the existing schemes;
    6. The reasons for not implementing the scheme under State Plan with earmarked funds.
  6. The receipt of this communication may kindly be acknoledged.
Sign.
(R.SRIDHARAN)
Joint Secretary (Administration)
Tel. No.: 2309 6598
Secretaries of all Central Ministries / Departments
Planning Commission UO No. N-11016/4/2006-PC dated 29.8.2006

Copy for information to:  
Cabinet Secretary,
Rashtrapati Bhavan,
New Delhi.