The newly formed NITI Aayog will play the role of a mediator in case of differences between different wings of the government.

The National Institution for Transforming India (NITI) Aayog, which replaced the Planning Commission from January 1 this year, will have a 13-point agenda, according to the revised Allocation of Business Rules, dated March 24, prepared by the Cabinet Secretariat.

The new institution will also have two institutions -- The Unique Identification Authority of India or UIDAI and the National Institute of Labour Economics Research and Development under its wing.

The Allocation of Business Rules prescribes work for various Ministries, Departments and government bodies and considered a guidebook for the regular activities of the government.

According to the rules, NITI Aayog is “to offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda.”

Incidentally, the erstwhile Planning Commission, too, used to play the role of mediator in resolving inter-ministerial or inter-departmental issues, especially when a project required approval from various Ministries. But this was not clearly defined in the rules.

Growth strategy In contrast to previous organisation, NITI Aayog will adopt a ‘bottom-up’ approach rather than ‘top-down.’ The rules say the new institution intends to “develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher level of the Government.” This means that the work for a growth strategy will start at the last mile to make sure that it has been prepared considering the ground reality.

NITI Aayog will also ensure that economic policy focuses not just on growth but also on national security. The new body intends “to ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy”, the rules say. Earlier, national security was not specifically mentioned in the business rules for the Planning Commission.

Last Plan It appears that the ongoing 12th Plan could well be the last five-year Plan, as new rules do not talk of “formulation of plan for most effective and balanced utilization of the country’s resources.” Instead, the new body will work “to actively monitor and evaluate the implementation of programs and initiatives, including the identification of the needed resources so as to strengthen the probability of success and scope of delivery.”

NITI Aayog, headed by economist Arvind Panagariya, has already started working as a ‘Think Tank’ of the Narendra Modi government. In fact for the first time, the Prime Minister made use of this body to get views from economists on the Budget this year. It has a three-tier structure, a Governing Council, Regional Council and full-time organisational system.

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