Second Five-Year Plan (1956-1961) part 13

 Here are notes from the video transcript about the Second Five-Year Plan:

Second Five-Year Plan (1956-1961)

• Period (కాలం): 1956-1961 (Started April 1, 1956; Ended March 31, 1961)

• Priority (ప్రాధాన్యత): Industries (పరిశ్రమలు), particularly Heavy Industries (భారీ పరిశ్రమలు). Initially, emphasis on consumer goods production within heavy industries.

• Formulator/Architect (రూపకర్త): P.C. Mahalanobis (పీసీ మెహలనబీస్)

• Growth Model (వృద్ధి నమూనా): Mahalanobis's Four-Sector Model (మెహలనబీస్ యొక్క నాలుగు రంగాల నమూనా)

  • K Sector: Production of consumer goods in heavy industries (భారీ పరిశ్రమలలో వినియోగ వస్తువుల తయారీ)

  • C1 Sector: Production of consumer goods in small industries (చిన్న పరిశ్రమలలో వినియోగ వస్తువుల తయారీ)

  • C2 Sector: Production of consumer goods in cottage industries (కుటీర పరిశ్రమలలో వినియోగ వస్తువుల తయారీ)

  • C3 Sector: Service Sector (సేవల రంగం)

  • Priority was given to consumer goods production due to high demand and quicker profits for sustainability.

• Growth Strategy (వృద్ధి వ్యూహం): Mahalanobis's Heavy Industries Strategy (మెహలనబీస్ యొక్క భారీ పరిశ్రమల వ్యూహం)

• Chairman (అధ్యక్షుడు): Nehru (నెహ్రూ) (as Prime Minister)

• Vice-Chairman (ఉపాధ్యక్షుడు): V.T. Krishnamachari (విటి కృష్ణమాచారి)

• Growth Rate (వృద్ధి రేటు):

  • Target (లక్ష్యం): 4.5%

  • Achieved (సాధించిన): 4.3% (The plan was considered a failure in achieving its growth target for per capita income).

• Expenditure (వ్యయం):

  • Estimated (అంచనా): ₹4800 Crores

  • Actual (వాస్తవం): ₹4672 Crores (Actual expenditure was slightly less than estimated)

• Fund Allocation (అధిక నిధులు కేటాయించినది): Funds were allocated across various sectors. The highest priority areas based on allocation were:

  1. Transport and Communication (రవాణా మరియు సమాచారము) (received highest allocation as infrastructure for industries)

  2. Industries and Minerals (పరిశ్రమలు మరియు ఖనిజాలు) (received significant allocation, 24% compared to 6% in the First Plan)

  3. Agriculture and Irrigation (వ్యవసాయము నీటి పారుదల) (priority decreased compared to First Plan - 21% vs 31%)

  4. Social Services (సాంఘిక సేవలు) (priority decreased compared to First Plan - 18% vs 22%)

  5. Power/Electricity (విద్యుత్) (priority decreased compared to First Plan - 9.7% vs 13%)

• Special Features (ప్రత్యేకతలు): Unique characteristics observed specifically during this plan period.

  • Also known as Transport and Communication Plan (రవాణా సమాచార ప్రణాళిక) due to the highest allocation of funds to this sector.

  • Also known as Nehru-Mahalanobis Plan (నెహ్రూ మెహలనబీస్ ప్రణాళిక) as it implemented their vision and strategies, particularly focusing on heavy industries.

  • Also known as Bold Plan (ధైర్యముతో కూడిన ప్రణాళిక) or Bold Planning (బోల్డ్ ప్లానింగ్). Investing heavily in industries has a long gestation period (గెస్టేషన్ పీరియడ్), meaning returns on investment take a long time. Committing large funds despite delayed returns was considered a bold decision.

  • Reflected the characteristics of Rostow's Take-off Stage (రొస్టోవ్ యొక్క ప్లవణ దశ లక్షణాలు).

    • Rostow's stages of growth include: Traditional society, Pre-conditions for take-off, Take-off, Drive to Maturity, Age of High Mass Consumption.

    • The "Take-off Stage" is considered crucial for sustained growth.

    • Characteristics of this stage include significant investment in industries, economic acceleration, and efforts to tackle social problems. Rostow reportedly identified India's 2nd plan period as exhibiting these take-off characteristics.

  • Foreign Trade suffered (విదేశీ వ్యాపారం దెబ్బతిని) resulting in a loss of approximately $6 million (6 మిలియన్ డాలర్ల నష్టం).

    • The primary reason was the closure of the Suez Canal (సూయేజ్ కాలువ మూసివేత) in 1956. This canal was vital for trade between Europe and India/Asia, and its closure disrupted shipping routes, forcing longer journeys around Africa.

• Establishment of Industries (పరిశ్రమల ఏర్పాటు): Several key industrial units were established.

  • Three Major Iron and Steel Plants (మూడు భారీ ఇనుము ఉక్కు కర్మాగారాలు): Established under the purview of Hindustan Steel Limited (హిందుస్తాన్ స్టీల్ లిమిటెడ్). While construction started earlier for some, they became operational or received major funding/focus during this period.

    • Rourkela (రూ1ర్కెలా): Located in Odisha (ఒడిశా). Supported by West Germany (పశ్చిమ జర్మనీ). (Start 1954, completed 1959)

    • Bhilai (భిలాయి): Located in Chhattisgarh (ఛత్తీస్‌గఢ్) (then part of Madhya Pradesh). Supported by USSR (యుఎస్ఎస్ఆర్). (Start 1955, completed 1959)

    • Durgapur (దుర్గాపూర్): Located in West Bengal (వెస్ట్ బెంగాల్). Supported by United Kingdom (యునైటెడ్ కింగ్ డమ్). (Start 1956, completed 1959)

  • Heavy Engineering Corporation Limited (భారీ ఇంజనీరింగ్ పరికరాల తయారీ సంస్థ): Located at Ranchi (రాంచి), Jharkhand (జార్ఖండ్) (then part of Bihar). Established 1958.

  • Neyveli Lignite Corporation (నైవేలి లిగ్నైట్ కార్పొరేషన్): Located at Neyveli (నైవేలి), Tamil Nadu (తమిళనాడు). Established 1956.

  • Integrated Coach Factory (ఇంటిగ్రేటెడ్ రైల్వే కోచ్ ఇండస్ట్రీ): Located at Perambur (పెరంబదూరు), Tamil Nadu (తమిళనాడు). Foundation laid in 1955, but significant funding and development occurred in the 2nd plan period.

• Development Programs (అభివృద్ధి కార్యక్రమాలు): Mentioned as a topic covered for the period 1956-1961, but specific details are not included in this transcript segment.