Background of the Study.

The administrative and planning system in many countries of the world are centralized. But this system is not suitable for a country like India, which has a huge population with diverse cultures, needs and aspirations. It is in this context that the idea of decentralization of power and planning gains importance.

 A major percentage of India’s population lives in villages. For many centuries these villages had their own system of governance – the village panchayats. The village panchayats in India had enjoyed considerable judicial and executive powers. They were the traditional institutions of local governance. However, for many reasons the power and autonomy of village panchayats were wrested from them. The constitution of Independent India urged the state governments to take steps to organize village panchayats and to enable them to function as units of self-governance. However, the state governments neglected these grass root level institutions.

The centralized planning and governance had its flaws. The slow progress of development initiatives and lack of people’s participation and support highlighted the weakness of centralized administration planning. It was at this juncture that the infinite possibilities of decentralization of power and planning came to force. To make basic changes in the existing administrative system, which is deep rooted, is not as easy task. The government realized that the transfer of power would be futile unless the existing local government bodies are transformed into local self-government bodies. It is on this basis that the govt. decided to decentralize power of planning.

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PEVAC Draft impact assesment