Prime Minister Manmohan Singh has replied to Congress president and National Advisory Council chairperson Sonia Gandhi’s recommendations for the Budget 2005-06 and has assured her that concerns will be addressed. The Prime Minister has indicated that apart from a National Rural Health Mission which will be announced in the Budget, an Urban Renewal Mission will be set up to address needs of the urban poor. Replying to Gandhi’s January 14 letter to the Prime Minister, first reported in The Indian Express, Singh has stated: ‘‘The Finance Minister and the Deputy Chairman of the Planning Commission have been advised to urgently examine the recommendations of the NAC and take follow up action.’’ In response to Gandhi’s recommendation on the rural health mission, the Prime Minister has said: ‘‘The National Rural Health Mission, proposed to be launched from April 1, 2005, is focussed on rural areas. However, it is being further scrutinised to take on board some of the NAC concerns.’’ The letter states that a special programme for urban poor is being separately conceived as part of the Urban Renewal Mission. The PM has agreed with Gandhi’s contention that there was need to target urban poor as insurance schemes for this segment have largely been ineffective. The PM has stated that the Ministry of Human Resource Development has moved a draft Cabinet note on the creation of Prarambhik Shiksha Kosh. ‘‘The question of using the education cess exclusively for elementary education is being sorted out after which the Cabinet note will be finalised,’’ the reply states. The integration of the Mid-Day Meal Scheme (MDM) with the Sarva Shiksha Abhiyan (SSA) as suggested by Gandhi in her January 14 letter, could take some time. The reason, Singh has explained, is that the schemes have evolved separately and use separate funding patterns and different implementing agencies. Whereas the MDM is implemented by states, the SSA is implemented by autonomous registered societies. ‘‘Steps have been taken to ensure convergence and synergy and adequate allocations are being made to meet the requirements of these programmes,’’ the PM’s reply points out. As far as the Integrated Child Development Scheme (ICDS) is concerned, the Kishori Shakti Yojana (KSY) will be extended to include 467 projects likely to be sanctioned shortly. The Nutrition Programme for Adolescent Girls (NPAG) introduced in 2002-03 in 51 backward districts of the country as a pilot project could be merged with the KSY and coverage expanded. The PM has also promised a detailed exercise on Sampoorna Bal Vikas Yojana. Gandhi had specifically asked for a Rs 2,450-crore package for a road network in the North-East. The PM has stated that the matter will be taken up by the Cabinet Committee on Economic Affairs (CCEA) shortly. He has also promised that the Finance Ministry would consider proposals by the National Manufacturing Competitiveness Council to improve competitiveness and employment opportunities in textiles, leather and IT sectors. The PM’s letter closes with thanks to the NAC for conceptualising and formulating critical developmental initiatives by the government and signs off looking forward to ‘‘receiving your continued guidance.’’