Cooperative Federalism | Economic Survey & Government Reports - UPSC PDF Download

 Page 1


COOPERATIVE 
FEDERALISM
SECTION-IV
Page 2


COOPERATIVE 
FEDERALISM
SECTION-IV
INTRODUCTION
NITI Aayog has been constituted to 
actualize the important goal of cooperative 
federalism and to enable good governance 
in India. On the premise that strong States 
make a strong nation, NITI Aayog acts 
as the quintessential platform for the 
Government of India by bringing States 
together as ‘Team India’ to work towards 
the national development agenda.
NITI Aayog has also established models 
and programmes for the development of 
infrastructure and to reignite and establish 
public-private partnership, such as the 
Development Support Services to States 
and Union Territories, and the Sustainable 
Action for Transforming Human Capital 
programme.
Further, with the aim of correcting regional 
developmental imbalance, NITI Aayog has 
taken special steps for areas requiring 
special attention and support, such as 
those in the North-East, Andaman and 
Nicobar and Lakshadweep islands, and 
the Himalayas. NITI Aayog has constituted 
special forums to identify these areas’ 
constraints and formulate policies to ensure 
sustainable development while protecting 
the abundant natural resources in these 
regions.
COOPERATIVE 
FEDERALISM
Annual Report 2021–22
47
Annual Report 2021–22
Page 3


COOPERATIVE 
FEDERALISM
SECTION-IV
INTRODUCTION
NITI Aayog has been constituted to 
actualize the important goal of cooperative 
federalism and to enable good governance 
in India. On the premise that strong States 
make a strong nation, NITI Aayog acts 
as the quintessential platform for the 
Government of India by bringing States 
together as ‘Team India’ to work towards 
the national development agenda.
NITI Aayog has also established models 
and programmes for the development of 
infrastructure and to reignite and establish 
public-private partnership, such as the 
Development Support Services to States 
and Union Territories, and the Sustainable 
Action for Transforming Human Capital 
programme.
Further, with the aim of correcting regional 
developmental imbalance, NITI Aayog has 
taken special steps for areas requiring 
special attention and support, such as 
those in the North-East, Andaman and 
Nicobar and Lakshadweep islands, and 
the Himalayas. NITI Aayog has constituted 
special forums to identify these areas’ 
constraints and formulate policies to ensure 
sustainable development while protecting 
the abundant natural resources in these 
regions.
COOPERATIVE 
FEDERALISM
Annual Report 2021–22
47
Annual Report 2021–22
DEVELOPMENT SUPPORT SERVICES FOR STATES AND 
UNION TERRITORIES
Development Support Services for States (DSSS) is an initiative by NITI Aayog with the vision to 
achieve transformational and sustained delivery of infrastructure projects. The key objective behind 
the initiative is to create public-private-partnership success stories and reboot infrastructure-project-
delivery models so that a sustainable infrastructure creation cycle can be established.
The projects under the initiative are assisted by NITI Aayog with the support of external consultants 
in transaction-structuring, strategy and bid-process management.
Currently, four projects are underway.
1. A vision document for Ladakh was prepared and approved by the UT. Further, specific 
projects for development in the UT are being identified.
2. The pre-feasibility report for a solar power project in Ladakh was prepared and accepted by 
the UT. A meeting was also organized to present the findings of the report to the developers 
and understand their additional requirements for participation in the project at Kargil.
3. A techno-economic feasibility report and a project-structuring report on integrated solid 
waste management in the Roorkee Cluster of Uttarakhand were submitted to the State 
Government.
4. A pre-feasibility report on a convention centre in Uttarakhand was submitted to the State 
Government.
HOLISTIC DEVELOPMENT OF ISLANDS
India has 1382 islands spread across nine States and four UTs. Identified islands can be developed 
for the purposes of maritime trade, shipping, fisheries, eco-tourism, undersea mining, etc.
India’s islands are strategically positioned in the Indian Maritime Zone and central to the country’s 
security concerns. Great Nicobar Island is only 90 km from the western tip of Malacca Strait, an 
important shipping route between Indian Ocean and South China Sea. Similarly, Minicoy Island in 
Lakshadweep lies near Nine Degree Channel, one of the busiest shipping routes. If left unattended, 
there may be security risks, such as incidences of smuggling, criminal activities, etc.
48
Annual Report 2021–22
COOPERATIVE FEDERALISM
Page 4


COOPERATIVE 
FEDERALISM
SECTION-IV
INTRODUCTION
NITI Aayog has been constituted to 
actualize the important goal of cooperative 
federalism and to enable good governance 
in India. On the premise that strong States 
make a strong nation, NITI Aayog acts 
as the quintessential platform for the 
Government of India by bringing States 
together as ‘Team India’ to work towards 
the national development agenda.
NITI Aayog has also established models 
and programmes for the development of 
infrastructure and to reignite and establish 
public-private partnership, such as the 
Development Support Services to States 
and Union Territories, and the Sustainable 
Action for Transforming Human Capital 
programme.
Further, with the aim of correcting regional 
developmental imbalance, NITI Aayog has 
taken special steps for areas requiring 
special attention and support, such as 
those in the North-East, Andaman and 
Nicobar and Lakshadweep islands, and 
the Himalayas. NITI Aayog has constituted 
special forums to identify these areas’ 
constraints and formulate policies to ensure 
sustainable development while protecting 
the abundant natural resources in these 
regions.
COOPERATIVE 
FEDERALISM
Annual Report 2021–22
47
Annual Report 2021–22
DEVELOPMENT SUPPORT SERVICES FOR STATES AND 
UNION TERRITORIES
Development Support Services for States (DSSS) is an initiative by NITI Aayog with the vision to 
achieve transformational and sustained delivery of infrastructure projects. The key objective behind 
the initiative is to create public-private-partnership success stories and reboot infrastructure-project-
delivery models so that a sustainable infrastructure creation cycle can be established.
The projects under the initiative are assisted by NITI Aayog with the support of external consultants 
in transaction-structuring, strategy and bid-process management.
Currently, four projects are underway.
1. A vision document for Ladakh was prepared and approved by the UT. Further, specific 
projects for development in the UT are being identified.
2. The pre-feasibility report for a solar power project in Ladakh was prepared and accepted by 
the UT. A meeting was also organized to present the findings of the report to the developers 
and understand their additional requirements for participation in the project at Kargil.
3. A techno-economic feasibility report and a project-structuring report on integrated solid 
waste management in the Roorkee Cluster of Uttarakhand were submitted to the State 
Government.
4. A pre-feasibility report on a convention centre in Uttarakhand was submitted to the State 
Government.
HOLISTIC DEVELOPMENT OF ISLANDS
India has 1382 islands spread across nine States and four UTs. Identified islands can be developed 
for the purposes of maritime trade, shipping, fisheries, eco-tourism, undersea mining, etc.
India’s islands are strategically positioned in the Indian Maritime Zone and central to the country’s 
security concerns. Great Nicobar Island is only 90 km from the western tip of Malacca Strait, an 
important shipping route between Indian Ocean and South China Sea. Similarly, Minicoy Island in 
Lakshadweep lies near Nine Degree Channel, one of the busiest shipping routes. If left unattended, 
there may be security risks, such as incidences of smuggling, criminal activities, etc.
48
Annual Report 2021–22
COOPERATIVE FEDERALISM
Therefore, a need was felt for a holistic strategy for the development and protection of these islands. 
Consequently, NITI Aayog was mandated to steer the process of sustainable development of identified 
islands in the region.
In the first phase of the process, a consultant was engaged to prepare the concept and detailed 
master plans for the islands identified under Package I (Long, Aves, Smith and Ross islands of 
Andaman and Nicobar) and Package III (Minicoy, Bangaram, Thinnakara, Cheriyam and Suheli islands 
of Lakshadweep). Accordingly, the final master and infrastructure plans were prepared for these nine 
islands.
Assessment of Carrying Capacity of Islands
The carrying capacity of an island for tourism is the maximum number of tourists the island can 
support without disturbing its ecological balance.
Accordingly, the carrying capacity of the nine islands was assessed by NITI Aayog, through a reputed 
consultant, and environmental zoning was carried out to ensure sustainable development.
Master Plans
The development plans for the nine islands contain appropriate strategies for the promotion of tourism, 
export of seafood and coconut products, organic farming of high-value crops, etc. The plans seek 
to create employment opportunities and provide additional income to the islanders while maintaining 
the ecological stability of the region.
Identified Tourism Projects
Post a systematic analysis, seven tourism projects (four in Andaman and Nicobar Islands and three 
in Lakshadweep) were planned, with the participation of the private sector and the support of the 
islanders.
For Lakshadweep Islands, in addition to the land-based projects, water villas were also planned—as 
supported by a SWOC analysis. Lakshadweep has a large lagoon area of 4000 sq km. A strategy for 
the development of water villas in the three islands—Kadamat, Suheli and Minicoy—of the archipelago 
was accordingly devised.
The proposal for the water villas was agreed upon by the Ministry of Environment, Forest and Climate 
Change for implementation on a pilot basis. It was only after the approval of SFC/PPAC that the 
projects in Lakshadweep incorporated water villas.
The projects in Andaman and Nicobar Islands are land-based. Bids have been invited for establishing 
eco-tourism resorts in Long Island, Aves Island, Smith Island and Shaheed Dweep.
Initiatives for Holistic Development
The following initiatives have been taken for the development of the identified islands in Phase I:
Incentives for Setting Up Industries
The Lakshadweep and Andaman and Nicobar Islands Industrial Development Scheme (LANIDS) 2018 
was notified by the Ministry of Commerce and Industry on 1 January 2019 to provide incentives to 
new and existing industrial units undertaking substantial expansion in the manufacturing and services 
sectors in the region.
49
COOPERATIVE FEDERALISM
Annual Report 2021–22
Page 5


COOPERATIVE 
FEDERALISM
SECTION-IV
INTRODUCTION
NITI Aayog has been constituted to 
actualize the important goal of cooperative 
federalism and to enable good governance 
in India. On the premise that strong States 
make a strong nation, NITI Aayog acts 
as the quintessential platform for the 
Government of India by bringing States 
together as ‘Team India’ to work towards 
the national development agenda.
NITI Aayog has also established models 
and programmes for the development of 
infrastructure and to reignite and establish 
public-private partnership, such as the 
Development Support Services to States 
and Union Territories, and the Sustainable 
Action for Transforming Human Capital 
programme.
Further, with the aim of correcting regional 
developmental imbalance, NITI Aayog has 
taken special steps for areas requiring 
special attention and support, such as 
those in the North-East, Andaman and 
Nicobar and Lakshadweep islands, and 
the Himalayas. NITI Aayog has constituted 
special forums to identify these areas’ 
constraints and formulate policies to ensure 
sustainable development while protecting 
the abundant natural resources in these 
regions.
COOPERATIVE 
FEDERALISM
Annual Report 2021–22
47
Annual Report 2021–22
DEVELOPMENT SUPPORT SERVICES FOR STATES AND 
UNION TERRITORIES
Development Support Services for States (DSSS) is an initiative by NITI Aayog with the vision to 
achieve transformational and sustained delivery of infrastructure projects. The key objective behind 
the initiative is to create public-private-partnership success stories and reboot infrastructure-project-
delivery models so that a sustainable infrastructure creation cycle can be established.
The projects under the initiative are assisted by NITI Aayog with the support of external consultants 
in transaction-structuring, strategy and bid-process management.
Currently, four projects are underway.
1. A vision document for Ladakh was prepared and approved by the UT. Further, specific 
projects for development in the UT are being identified.
2. The pre-feasibility report for a solar power project in Ladakh was prepared and accepted by 
the UT. A meeting was also organized to present the findings of the report to the developers 
and understand their additional requirements for participation in the project at Kargil.
3. A techno-economic feasibility report and a project-structuring report on integrated solid 
waste management in the Roorkee Cluster of Uttarakhand were submitted to the State 
Government.
4. A pre-feasibility report on a convention centre in Uttarakhand was submitted to the State 
Government.
HOLISTIC DEVELOPMENT OF ISLANDS
India has 1382 islands spread across nine States and four UTs. Identified islands can be developed 
for the purposes of maritime trade, shipping, fisheries, eco-tourism, undersea mining, etc.
India’s islands are strategically positioned in the Indian Maritime Zone and central to the country’s 
security concerns. Great Nicobar Island is only 90 km from the western tip of Malacca Strait, an 
important shipping route between Indian Ocean and South China Sea. Similarly, Minicoy Island in 
Lakshadweep lies near Nine Degree Channel, one of the busiest shipping routes. If left unattended, 
there may be security risks, such as incidences of smuggling, criminal activities, etc.
48
Annual Report 2021–22
COOPERATIVE FEDERALISM
Therefore, a need was felt for a holistic strategy for the development and protection of these islands. 
Consequently, NITI Aayog was mandated to steer the process of sustainable development of identified 
islands in the region.
In the first phase of the process, a consultant was engaged to prepare the concept and detailed 
master plans for the islands identified under Package I (Long, Aves, Smith and Ross islands of 
Andaman and Nicobar) and Package III (Minicoy, Bangaram, Thinnakara, Cheriyam and Suheli islands 
of Lakshadweep). Accordingly, the final master and infrastructure plans were prepared for these nine 
islands.
Assessment of Carrying Capacity of Islands
The carrying capacity of an island for tourism is the maximum number of tourists the island can 
support without disturbing its ecological balance.
Accordingly, the carrying capacity of the nine islands was assessed by NITI Aayog, through a reputed 
consultant, and environmental zoning was carried out to ensure sustainable development.
Master Plans
The development plans for the nine islands contain appropriate strategies for the promotion of tourism, 
export of seafood and coconut products, organic farming of high-value crops, etc. The plans seek 
to create employment opportunities and provide additional income to the islanders while maintaining 
the ecological stability of the region.
Identified Tourism Projects
Post a systematic analysis, seven tourism projects (four in Andaman and Nicobar Islands and three 
in Lakshadweep) were planned, with the participation of the private sector and the support of the 
islanders.
For Lakshadweep Islands, in addition to the land-based projects, water villas were also planned—as 
supported by a SWOC analysis. Lakshadweep has a large lagoon area of 4000 sq km. A strategy for 
the development of water villas in the three islands—Kadamat, Suheli and Minicoy—of the archipelago 
was accordingly devised.
The proposal for the water villas was agreed upon by the Ministry of Environment, Forest and Climate 
Change for implementation on a pilot basis. It was only after the approval of SFC/PPAC that the 
projects in Lakshadweep incorporated water villas.
The projects in Andaman and Nicobar Islands are land-based. Bids have been invited for establishing 
eco-tourism resorts in Long Island, Aves Island, Smith Island and Shaheed Dweep.
Initiatives for Holistic Development
The following initiatives have been taken for the development of the identified islands in Phase I:
Incentives for Setting Up Industries
The Lakshadweep and Andaman and Nicobar Islands Industrial Development Scheme (LANIDS) 2018 
was notified by the Ministry of Commerce and Industry on 1 January 2019 to provide incentives to 
new and existing industrial units undertaking substantial expansion in the manufacturing and services 
sectors in the region.
49
COOPERATIVE FEDERALISM
Annual Report 2021–22
Web Connectivity
For improving web connectivity in Andaman and Nicobar Islands, satellite bandwidth was augmented 
from 1.118 Gbps to 3.49 Gbps. Physical VSAT installation was completed at Rangat, Mayabunder, 
Diglipur, Port Blair, Shaheed Dweep, Little Andaman, Kamorta and Campbell Bay. Optical fibre cable 
installation, with an initial capacity of 200 Gbps between Chennai–Port Blair and 100 Gbps between 
Port Blair and other segments, was also done. In Lakshadweep Islands, the augmentation of bandwidth 
from 318 Mbps to 1.71 Gbps has been approved by the Telecom Commission.
Air Connectivity
Infrastructure for civil flight operations is ready at Shibpur Airport. A committee has been constituted to 
resolve land-related issues to develop a new greenfield dual-purpose airport in Minicoy Island. Based 
on the report of the committee, legal provisions have been amended. The Ministry of Defence (MoD) 
is in the process of preparing a report, with the consultation of the Airports Authority of India (AAI), for 
the construction of the Minicoy airport. AAI is undertaking a pre-feasibility study for the expansion of 
the Agatti Airport runway, from 1206 meters to 2300 meters, which will allow bigger Automatic Tray 
Return System (ATRS) to operate on Agatti Island.
Road Connectivity
A special package has been sanctioned for the maintenance/upgradation of rural roads in Andaman 
and Nicobar Islands. The Andaman Trunk Road (NH4) is being widened and the bridges of Humphrey 
and Middle Strait are being completed early to ensure better inter-island connectivity in Andaman 
Islands.
Power Generation
The Solar Energy Corporation of India has been entrusted to establish a 4 MWh floating solar power 
plant, with a 1 MWh battery energy storage system, at Kalpong, Diglipur, by October 2022.
Packages IV & V
In order to replicate the success of the Phase-1 projects, consultants were engaged to prepare a 
feasibility report for the holistic development of islands under Package IV (11 sites in Andaman and 
Nicobar Islands) and under Package V (Agatti, Bitra, Kadmat, Chetlat and Kalpeni in Lakshadweep 
Islands). Accordingly, they have submitted inception reports, draft and final site development reports.
NITI FORUM FOR NORTH-EASTERN REGION
The NITI Forum for North-East was set up in February 2018 to address various challenges in the 
region and recommend requisite interventions to achieve sustainable economic growth. The forum is 
led by Shri Jitendra Singh, Minister of State for Development of North-Eastern Region, and Dr Rajiv 
Kumar, Vice Chairman, NITI Aayog. The first meeting was held on 10 April 2018 in Agartala, Tripura.
COOPERATIVE FEDERALISM