THE COLOMBO PLAN

6. In agriculture there are three multi-purpose projects which are accorded a very high priority and on which work is already in progress: the Damodar Valley (R5.500 million, £37.5 million); the Hirakud (R5.300 million, £22.5 million); and the Bhakra Nangal (R5.757 million, £56.8 million). The Damodar Valley scheme in Bihar is designed to harness the wayward Damodar River, whose periodic floods cause untold destruction and misery. New dams Will contain the flood water for irrigation, power generation and even navigation. The scheme will, at the same time, open up to full development the richest mineral basin in India. Further South, the Hirakud Dam is intended to control the floods of the Mahanadi which cause considerable damage and soil erosion. It will also cover the barren earth with a vast lake to supply life-giving irrigation to the surrounding area and provide power for the cottage industries. To the North, at Bhakra and at Nangal, dams will be erected across the River Sutlej, one of which will be not much smaller than the Boulder Dam in the United States. The harnessing of the Sutlej will open up areas now arid for the resettlement of refugees. Power will be provided for the cities of the North, including New Delhi. These three projects are expected to bring about 6,000,000 acres of new land under irrigation by 1956-57 and to increase electricity generating capacity by 708,000 kilowatts. 7. Another major development is the Government's Integrated Crop Production Plan. This provides for the extension of cultivation on reclaimed lands, the introduction of improved agricultural techniques, the use of better seeds and fertilisers, and the execution of a large number of local irrigation Works. As a result of this campaign and of the multi-purpose projects, it is expected that by the end of 1956-57 there will be an addition to agricultural production of 3,000,000 tons of foodgrains, about 195,000 tons of cotton, 375,000 tons of jute and 1,500,000 tons of oil-seeds. All these commodities are in short supply in the area. 8. Under transport and communications an expenditure of R5.4,800 million (£360 million) is planned on railways. This will provide for the construction and restoration of tracks, bridges, structural works and rolling stock. The establishment of a plant for the manufacture of locomotives is also contemplated. These projects, coupled with the extension and improvement of roads, are designed to open up the hinterland, to enlarge the size of the domestic market, and to facilitate the flow of goods to the ports. In the industrial sector the emphasis is on raising production of steel, particularly through the modernisation and expansion of existing steel plants and the construction of additional capacity for an annual output of 500,000 tons. 9. It is hoped that the carrying through of the programme will provide a basic standard of living which would include, amongst other things, an annual cloth consumption of 15 yards per person, and, in the rationed urban areas, cereal consumption of 16 ounces a day. This represents a modest, but important improvement over present consumption levels, which on a per head basis are only about 10 yards of cloth per year, and, in the rationed areas, 12 ounces of cereals a day. Ten yards of material provides less than two garments a year, without taking into account other uses of cloth. The average daily supply of food, consisting mostly of cereals, at present provides only about 1,600 calories, which is nothing like enough for adequate nutrition. 10. The programme should reduce the country's foreign exchange expenditure on food supplies, which is an important cause of the current balance of payments deficit. It should also result in substantial increases in exports of raw materials such as oil-seeds and short-staple cotton (exports of which have fallen to one-third of the pre-war level), and of manufactures like jute products, cotton textiles and other consumer goods. At the end of the six-year period, it is expected that equilibrium will be achieved at a higher level of international trade.

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