The paper in this part is devoted to discussion and analysis of the Report of National Sample Survey (NSS) Review Committee, which provided the foundation for the formulation of the modernisation project. Given the small size of the committee, the large number of its terms of reference, and the short time given to it, the committee did a remarkable job. However, it did not provide the rationale for most of its large number of recommendations. The paper mainly discusses the recommendations that involve systemic and policy issues, such as the one on the status, role, and composition of the governing council of the NSSO. In particular, it extensively analyses the committee's recommendation for the massive expansion of the NSSs to meet the new data needs of the Special Data Dissemination Standards (SDDS) of the IMF and for monitoring the rapid socio-economic changes due to the new economic policy. The paper shows that for different reasons the expansion is not justified and will have deleterious effect on the ISS.
