Govt to Replace Planning Commission with New Body

As announced in their election manifest, the Narendra Modi-led NDA government will move ahead with setting up of a new institution in place of the Planning Commission despite resistance from Congress-ruled states as a majority of states are on board.

The new institution could be in place before the end of January 2015 and would have adequate representation from states and will include domain experts.

In a meeting convened by Prime Minister Narendra Modi with chief ministers of all states on Sunday, Congress-ruled states were of the view that the present Planning Commission should be evolved into a new structure.

However, Finance Minister Arun Jaitley said "Most states are in favour of a system that strengthens their ability to deliver and hence they want more flexibility. There was a larger consensus to the effect that the context has changed and there is a need to decentralise power and planning and states needs to be empowered,"

Prime Minister Modi had said in his maiden Independence Day speech that the Planning Commission should be replaced by an organisation which can think creatively, strengthen the federal structure and energise states.