NITI Aayog replaces Planning Commission; PM to head new body

Socialist-era Planning Commission was today replaced by a new think-tank, NITI Aayog, that will be headed by the Prime Minister and will have all Chief Ministers as members in a broad-based Governing Council to involve states in evolving national development priorities.
The inclusion of Chief Ministers and Lt. Governors in the Governing Council is a break with the past in the structuring of NITI Aayog (National Institution for Transforming India), which Prime Minister Narendra Modi, described as a landmark change that will foster spirit of cooperative federalism.
The body will have a Vice Chairperson and a CEO in addition to five full-time members and two part-time members, while four union ministers would serve as ex-officio members.

The erstwhile command economy era body set up nearly 65 years ago by late Prime Minister Jawaharlal Nehru had a Deputy Chairman and full-time members with a member secretary, an official, as a convener.
A PMO statement said the Centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states. It will put an end to "slow and tardy implementation of policy", it said.
Noted economist Arvind Panagariya is tipped to be the first Vice-Chairman of Niti Aayog.

A Cabinet resolution setting up the new body said that Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region.

They will comprise the Chief Ministers and Lt. Governors in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee.
The NITI Aayog will also have experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister.
The two part-time members of the new body would be from leading universities and research organisations.
The body will serve as a 'Think Tank' of the government as "a directional and policy dynamo" and would provide the governments at the Centre and in states with strategic and technical advice on key policy matters including economic issues of national and international importance.

Commenting on the new body, Modi tweeted, "Having served as a CM (Chief Minister) in the past, I am very much aware of the importance of actively consulting the states. NITI Aayog does precisely that.