lannin in ndia       5.27
          The Draft Approach Paper lays down the             (vi) For the GDP to grow at 9 per cent,
     major targets of the Plan, the key challenges in             commercial energy supplies will have to
     meeting them, and the broad approach that must               grow at a rate between 6.5 and 7 per cent
     be followed to achieve the stated objectives which           per year. Since India’s domestic energy
     are summed-up as follows:                                    supplies are limited, dependence upon
          (i) Growth rate of 9 per cent is targeted               imports will increase. Import dependence
              for the Plan. However, in view of the               in the case of petroleum has always been
              uncertainties in the global economy and             high and is projected to be 80 per cent in
              the challenges in the domestic economy,             the Twelfth Plan.
              the Approach Paper indicates that it          (vii) Even in the case of coal, import
              could be achieved only if some difficult            dependence is projected to increase as the
              decisions are taken.                                growth of thermal generation will require
         (ii) It emphasizes the need to intensify efforts         coal supplies, which cannot be fully met
              to have 4 per cent average growth in                from domestic mines.
              the agriculture sector during the Plan       (viii) It suggests the need to take steps to reduce
              period; with foodgrains growing at about            energy intensity of production processes,
              2 per cent per year and non-food grains             increase domestic energy supply as
              (notably, horticulture, livestock, dairying,        quickly as possible and ensure rational
              poultry and fisheries) growing at 5 to 6            energy pricing that will help achieve both
              per cent.                                           objectives, viz., reduced energy intensity
        (iii) The higher growth in agriculture would              of production process and enhance
              not only provide broad based income                 domestic energy supply, even though it
              benefits to the rural population but also           may seem difficult to attempt.
              help restrain inflationary pressure,           (ix) It draws attention to evolving a holistic
              which could arise if high levels of growth          water management policy aiming at
              are attempted without corresponding                 more efficient conservation of water and
              growth in domestic food production                  also in water use efficiency, particularly in
              capabilities.                                       the field of agriculture.
        (iv) It proposes that the major flagship              (x) It argues that a new legislation for land
              programmes which were instrumental                  acquisition is necessary, which strikes
              for promoting inclusiveness in the                  an appropriate balance between the need
              Eleventh Plan should continue in the                for fair compensation to those whose
              Twelfth Plan—there is a need to focus on            land is acquired and whose livelihood is
              issues of implementation and governance             disrupted, and the need to ensure that
              to improve their effectiveness.                     land acquisition does not become an
         (v) The Plan indicates that the energy                   impossible impediment to meeting our
              needs of rapid growth will pose a major             needs for infrastructure development,
              challenge since these requirements have             industrial expansion and urbanisation.
              to be met in an environment where              (xi) It maintains that health, education and
              domestic energy prices are constrained              skill development will continue to be
              and world energy prices are high and                the focus areas in the Twelfth Plan, and
              likely to rise further.                             that there is a need to ensure adequate