Popularly known as NCR, the National Capital Region is one of a kind in the world. It not only has the largest spatial extent but also brings together under one planning jurisdiction 13 districts of Haryana, seven districts of Uttar Pradesh and two districts of Rajasthan, which covers the entire National Capital Territory of Delhi.
After Partition, Delhi witnessed a decadal growth rate of about 50 per cent in its population of migrants. Delhi is considered a hub of jobs and opportunities that led to the inflow of people from adjacent areas. A recent survey has proved that Delhi is home to one-fourth of jobs created in eight big cities (Bengaluru, Hyderabad, Ahmedabad, Mumbai, Kolkata, Chennai, Pune and Delhi).
Rapid migration led to a shortage of housing and basic infrastructure accompanied by deteriorating physical environment. As a result, the first step to the planned development of Delhi was taken in 1956 through Town Planning Organisation (TPO) which prepared an interim general plan for Greater Delhi.
The plan suggested that ‘serious consideration should be given for a planned decentralisation to outer areas and even outside the Delhi region’. This indicates that the National Capital Region is not a new entity. In the early 1970s, it was defined in geographic terms encompassing an area of over 30,000 sq km divided into inner core, middle tier and outer ring. This covered Faridabad, Gurgaon, Ghaziabad, Noida, Panipat, Alwar, Meerut and Rohtak.
In this process of planning a spatial development of both the rural hinterland and urban infrastructure, the government of India in concurrence with the states of Haryana, Uttar Pradesh and Rajasthan passed an Act of Parliament in 1985.
This Act brought into being the NCR Planning Board (NCRPB).
In 1989, this board brought into force the Regional Plan of 2021 – a blueprint of various initiatives and policy imperatives needed to decrease the pressure of migration on Delhi. It identified regional centres or ‘priority towns’ in the NCR where the population will be deflected to.
The planning exercise has been continuously decentralised to sub-regional levels (Uttar Pradesh – 1992; Rajasthan – 1994) and functional levels (transport, power, telecommunication). In 2005, the board also notified Regional Plan (RP) – 2021 which is currently in force. RP-2021 attempts to outline future options in tackling the problems of this imbalance in the pattern of growth of Delhi and its surrounding region in the light of new economic realities post 1991.
The concept of the RP-2021 is to develop the entire NCR as a region of global excellence by promoting economic growth and balanced development. We have seen that various areas witness a spurt in the growth after getting included in the NCR.
Being a part of NCR, districts get qualified for financial assistance in the shape of soft loans and grants. It also props up the real sector. For example, Jind and Karnal districts of Haryana were included in the NCR in the year 2015. These districts will now be linked with the proposed Regional Rapid Transit System, a high-speed mass transportation rail network facilitating faster movement of traffic among the regional centres.
To boost the growth, the board provides loans to the state governments for water supply, sewerage, sanitation, drainage, solid waste management, roads and flyovers, transmission, distribution and generation of electricity at an interest rate of 7.5 per cent. However, the population in Delhi has continued to grow at a pace faster than anticipated.
It is estimated that by 2021 the population of the national capital city would be 204 lakh; and 163.5 lakh, 49.38 lakh and 203.5 lakh respectively for the sub-regions of Haryana, Rajasthan and Uttar Pradesh. Fifty per cent of the total area of NCR has been urbanised and by 2021 no rural space will be left.
Here are three steps that may help solve the crisis.
First, jurisdictions in Delhi and other states have to figure out common priorities. Priorities of states are not in consonance with Delhi’s development policies which has hindered development. Once becoming a part of NCR, states are bound by the regional plan prepared by the NCRPB. This leaves very little room for the state government to use its discretion.
Second, we need enough housing initiatives to control unplanned settlements. Public sector is failing to deliver the requisite housing units in terms of number or cost, and, therefore, the housing problem is accentuating. Slums and squatter settlements are increasing. Private sector should make the best use of affordable housing scheme – Pradhan Mantri Awaaz Yojana – by the government. Also, as recommended by B K Sundar Ray, states can either purchase existing EWS plots and flats available for immediate occupancy or invest in fresh developments of such facilities.
Third, core regional infrastructure like road, rail, telecommunication and power network should be developed ab-initio, so that the private sector continues feeling enthusiastic about investing in industries, wholesale trade, commerce, social infrastructure etc. We are witnessing a remarkable increase in the entry of private real estate developers, but to sustain a planned growth, urban infrastructure and private real estate has to be in sync.
Today, NCR is the largest metropolitan region in India with 34,144 square kilometres. It is also the most populated area. NCR is a unique example of inter-state regional planning and development, bringing together four administratively independent units. It is crucial for the region to develop and keep in mind the objective with which it was established. National Capital Region is a hub of opportunities – for people as well as improvements. We must not let it fail.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.