During this phase, the National AIDS Control Project was developed for prevention and control of AIDS in the country.

Project Objectives
The ultimate objective of the project was to slow the spread of HIV to reduce future morbidity, mortality, and the impact of AIDS by initiating a major effort in the prevention of HIV transmission. The specific objectives were:

1. Involve all States and Union Territories in developing HIV/AIDS preventive activities with a special focus on the major epicenters of the epidemic;
2. Attain a satisfactory level of public awareness on HIV transmission and prevention;
3. Develop health promotion interventions among risk behaviour groups;
4. Screen all blood units collected for blood transfusions;
5. Decrease the practice of professional blood donations;
6. Develop skills in clinical management, health education and counseling, and psychosocial support to HIV seropositive persons, AIDS patients and their associates;
7. Strengthen and control of Sexually Transmitted Diseases (STD); and
8. Monitor the development of the HIV/AIDS epidemic in the country.

Achievement of Phase I

1. Awareness levels that were almost insignificant have increased to about 70-80% in urban areas even though the level of awareness in rural areas remains low at about 30%;
2. Modernisation and strengthening of blood banks;
3. Introduction of licensing system of blood banks and gradual phasing out of professional blood donors; and
4. Availability of good quality condoms through social marketing has made a significant increase in its use.