Need to Replace Planning Commission

Due to the new economic policy pursued in the last more than two decades, the importance of private sector has increased manifold.
In his first speech from the ramparts of the Red Fort, on August15, prime minister Narendra Modi announced that the Planning Commission will become history very soon. He also said that the circumstances under which Planning Commission came into existence, no longer exist and therefore in the changed circumstances we need some different institution in its place.

Later an expert group was formed, which included many stalwarts including Bimal Jalan, Vijay Kelkar, Yashwant Sinha and many others; it has started its work to suggest the nature and the functions of the proposed new institution.

We understand that since national as well as international environment has undergone major changes there is a need to relook and redefine the role of state governments in the development of the country; and the policy making bodies also need to be revamped.
The prime minister hinted that an altogether new institution would be created, instead of bringing changes within the Planning Commission, when he said that renovation of a house is costlier than making a new house itself.

It is notable that the Planning Commission has so far made 12 five-year plans and has been guiding resource allocation for plans and schemes for development. Critics of the Planning Commission maintain that this institution has lost its relevance and there is a need for an alternative structure for guiding the course policy of direction for the country.

The development model adopted by the government after the independence, was the one influenced by USSR, in which public sector was given a major role and therefore the Planning Commission was assigned a leading role for making and implementing five-year plans by allocating resources mobilised in order to achieve objectives set forth in the plans.

It is important to note that Planning Commission is the only important...