PM Narendra Modi Seeks to Replace Central Planning With 'Team India'

New Delhi: At a brainstorming session of Chief Ministers called by Prime Minister Narendra Modi to replace the Planning Commission in New Delhi on Sunday saw a consensus that more power and planning should be devolved to states, but Congress strongly opposed dismantling of the existing 65-year-old body established by Jawaharlal Nehru. (Latest Developments)

Following up on his Independence Day announcement from Red Fort that the Planning Commission would "soon" be replaced by a "new institution", Mr Modi was with Chief Ministers for nearly seven hours at his residence deliberating on what should be the future shape of the body.

Mr Modi pushed for an effective structure, which strengthens "co-operative federalism" and the concept of 'Team India', and even cited his predecessor Manmohan Singh, saying he too had said on April 30 this year that the current structure has "no futuristic vision in the post-reform period".

Except West Bengal, Mizoram and poll-bound Jammu and Kashmir and Jharkhand, chief ministers from all other states were present at the meeting which was attended by Finance Minister Arun Jaitley and Home Minister Rajnath Singh.

Briefing the media after the meeting, Mr Jaitley said there was a "larger consensus" that the "context" has changed and there is a "need to decentralise both power and planning".

Noting that "there cannot be a universal scheme that suits all states", he said, "It is a fallacy that one size fits all in case of implementation of central schemes."

The strategy should be to empower the states to enable them to meet their own specific needs, he said.

Mr Jaitley gave no timeline about when the new body will be announced, saying the Centre will take a "considered view after consultations are over".

However, there were indications that the shape of the new structure, which could also see the involvement of the private sector, may be firmed up by January 26 next year.

Chief Ministers of the Congress-ruled states, meanwhile, opposed disbanding of the Planning Commission and wanted a revamp of the existing body.

Congress Deputy Leader in Rajya Sabha Anand Sharma told reporters that dismantling the Planning Commission would be "unwarranted, shortsighted and dangerous" as it will have long-term adverse effect on Centre-state relations.

He said the Planning Commission needed a "reorientation" and not "political burial".

The Prime Minister said the question of role, relevance and restructuring of the Planning Commission had been repeatedly questioned for more than two decades.

Underlining that it was impossible for the nation to develop unless states develop, he told the meeting that the process of policy planning needs to change from "top to bottom" to "bottom to top".

The states should have a key role in the new body, Mr Modi said, adding that "states sometimes feel there is no platform to express their views... there should be an effective mechanism to address inter-state disputes."

"Can we develop a new mechanism that plans according to India's strengths, empowers states, and brings on board all economic activity, including that which happens outside the government," he asked while setting the tone for the meeting.

Pushing for "co-operative federalism", the Prime Minister said the current global scenario offered a chance for India to take a big leap forward. This, he added, was possible by formulating a suitable replacement to the Commission with a view to suitably harnessing the strengths of the country.

NDA states and some of those ruled by parties like AIADMK and Telangana Rashtra Smithi (TRS) wanted immediate disbanding of the Planning Commission.

Opposing the move to disband the Planning Commission, Arunachal Pradesh Chief Minister Nabam Tuki described the body as a single window for small states to air grievances on issues like regional aspirations and Centre-state disputes.

Karnataka Chief Minister Siddaramaiah said there is no merit or justification in the decision to dismantle the existing one created six decades ago.

Odisha Chief Minister Naveen Patnaik supported the initiative "aimed at transforming India's co-operative federalism" saying inequitable distribution of resources in the past had caused imbalances in development across states.

Bihar Chief Minister Jitan Ram Manjhi while agreeing that the commission has not been able to fulfil its mandate completely, asked the Prime Minister "to take no decision in haste without due diligence and deliberations". He wanted National Development Council meet to discuss it take a holistic view on the same.

Uttar Pradesh Chief Minister Akhilesh Yadav said the practice of 'one size fits all' should be discarded by the new body which takes over the role of the Planning Commission as without a flexible policy states with differing needs cannot  develop.

Assam Chief Minister Tarun Gogoi said "perhaps, what is required is reorienting and reforming to meet the needs of the current era". He said such replacement, without carefully devising a new structure, is likely to do more harm than good.

Kerala Chief Minister Oommen Chandy said proposed move to distribute the planning functions amongst the Ministry of Finance and subject matter ministries will result in loss of perspective.

Himachal Pradesh Chief Minister Virbhadra Singh said that the commission in its present form should be strengthened by giving more functions so as to meet the challenges of economy.

Mr Jaitley said more states were in favour of a system that strengthens their ability to deliver and they want a lot more flexibility rather than a control and command structure.

"The think-tank role of the new institution was a very important agenda item and I think most people were in favour of that because it is more encompassing as it not only covers states methodology of expenditure but also gives direction or indicates at least a direction in which the private sector can also have a role," Mr Jaitley said.