for public private partnership, wherever possible to leverage limited public resources. 3. Agriculture needs more attention and priority at State Government levels (e.g. exempting horticultural products entirely from the application of the APMC Act.) 4. Management of energy resources will be a major challenge because rapid growth will require a significant expansion in domestic energy supplies and also a much greater focus on energy efficiency. The viability of the power sector as a whole depends critically upon the financial viability of the distribution system. The total losses of the distribution system, if properly accounted, are probably as high as Rs 70,000 crores. If the States could cover these losses by subsidies, the system would not be at risk. However, state budgets cannot provide subsidies on this scale and the losses are effectively being funded by the banking system. AT&C losses shall be reduced to 15% by the end of the Twelfth Plan. The electricity tariffs have to be adjusted in line with costs. There is an urgent need to implement a package of distribution reforms combined with tariff increases, which will make the distribution companies viable for all additional sales. The Twelfth Plan version of the Accelerated Power Development Reform Programme should be tailored to provide resources to States taking credible steps along these lines. New energy efficient building standards should be made mandatory. 5. Management of water resources - demand for water in the country is outstripping supply, leading to serious water shortages and unsustainable drawal of ground water in many parts of the country. Whereas we increase the amount of water that is effectively available, the real solution lies in increasing the efficiency of water use. At present, almost 80% of our water is used in agriculture, and it is used very inefficiently. Water use in agriculture can be cut to half with known technology, e.g., by switching from flood irrigation of paddy to SRI. Water availability can be improved by treating sewage water before it enters our fresh water system. At present, only about 30% of sewage water is treated. There are similar problems with industrial effluents. With urbanisation and industrialisation set to accelerate, these pressures on our fresh water systems will increase. Corrective action in all these areas lies largely in the domain of state governments. The Approach paper called for a comprehensive re-examination of water policy including changes in the laws. It also calls for