Putting a final lid on the Planning era, the Niti Aayog is gearing up to launch the three-year action plan from April 1 after the end of 12th Five Year Plan on March 31.
Under the new system, sources said states will be encouraged to meet the targets of various schemes or face the prospects of drying up of the fund flows.
"The 12th five years plan is coming to an end on March 31. The three-year action plan to be unveiled this month will come in force from April 1, which will also end the prevailing system of the centre patiently waiting (for) the state governments to implement the schemes.
"Now, you either meet the target or you will face the prospects of the fund flow drying up," a senior NITI Aayog official said.
The official said, "We have patiently waited for the state governments to adopt a number of reform oriented legislative bills. But our experiences have largely been negative…
therefore, the reform agenda arrived at after consensus will need to be adopted by them, and the states doing so will get incentives".
NITI Aayog has also been entrusted the work on the 15-year Vision Document and a seven year strategy, which would guide the government's development works till 2030.