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STATE GOVERNMENTS ASK CENTRE TO TAKE UP CLOSE INVOLVEMENT OF BANKS IN SGSY WITH RESERVE BANK OF INDIA
STATE SECRETARIES CONFERENCE ON RURAL DEVELOPMENT CONCLUDES
    The State Governments have requested the Centre to take up the issue of close involvement of banks in Swarna Jayanti Gram Swarozgar Yojana(SGSY) with RBI. This was discussed at a press conference addressed by Minister of State for Rural Development, Shri Baba Gouda Patil at the conclusion of the two day Conference of State Secretaries of Rural Development, Panchayati Raj & Rural Housing. Shri P.R. Dasgupta, Secretary and other senior officials briefed the media about the deliberations at the Conference. At the Conference, the restructuring of Self-employment programmes and the launch of Swarna Jayanti Gram Swarozgar Yojana was appreciated and the guidelines discussed in detail. The representatives of the NE Region also referred to the critical role of banks in their States. Welcoming the flexibility under the programme, the State Governments asked for an increase in the allocation. The State representatives felt that considerable efforts need to be made to ensure that this programme is properly understood.

    The Conference welcomed the initiatives for strengthening of DRDA Administration and felt that this would improve the delivery mechanism of the anti-poverty programmes at the field level. They requested for adequate provision to cater to inflation as also for flexibility in deciding the district-wise staffing pattern.

    It was noted that from the year 1999-2000 onwards, Employment Assurance Scheme was to be based on fixed allocation for each State and discussed various operational issues in this regard. The State Secretaries indicated that since henceforth Zilla Parishads would be implementing agencies, care must be taken to see that liabilities on ongoing programmes are fully met. In particular, they referred to watershed development activities under Employment Assurance Scheme and requested that funds may continue to be provided till such projects are completed. Referring to the decision to make 20% of the funds under the programme contingent upon the presence of elected and empowered panchayats in the States, some Secretaries suggested that delay on account of pending court cases should not come in the way of States receiving the funds.

    The guidelines of Jawahar Gram Samridhi Yojana were also discussed at the Conference and the participants welcomed the focus on development of rural infrastructure. They noted that while allowing freedom to the village panchayats to take up works was good, the States need to build in safeguards. Some felt that a minimum level of funding was necessary and in order to do so, distribution of funds may be staggered among different panchayats. The need for support systems such as rural schedule of rates, standard designs, etc., would help the panchayats in the execution of this programme.

    The States welcomed the steps taken by the Government of India to integrate under the Department of Land Resources the implementation of the watershed development programmes namely, Integrated Watershed Development Programme(IWDP), Desert Development Programme(DDP) and Drought Prone Area Programme(DPAP). For effective implementation of watershed development programmes, it was felt that some suitable machinery should be developed. It was generally agreed that a linkage should be provided between Panchayati Raj Institutions and the project management machinery to impart greater sustainability to the watershed projects.

    State Governments emphasised the need for common guidelines for the area development programmes being implemented by the Ministry of Agriculture and Ministry of Rural Development. The guidelines should be flexible and concise and State Government should be allowed to take appropriate decisions. States emphasised the importance of benchmark surveys before the projects are commenced so that qualification of deliverable outputs is facilitated and monitoring as well as impact assessment become realistic.

    The Conference noted the decision of the Government of India to declare the year 1999-2000 as the year of Gram Sabha. The idea of further empowering of Gram Sabha found strong support. The Conference discussed the modalities to operationalise the announcement of the Finance Minister regarding 20% of funds being released to the States as incentive if they have elected and empowered Panchayati Raj Institutions. Stress was laid on expediting the decisions on and implementing the recommendations of the State Finance Commission to devolution of funds to PRIs. States were exhorted to establish District Planning Committees for local area planning for which the experience of Kerala was noted. The States having Schedule V areas reiterated their commitment to implement the provision of panchayats (Extension to Scheduled Areas) Act, 1996. Social audit was stressed upon.

    On Rural Housing, Detailed guidelines for the credit-cum-subsidy, innovative stream for rural housing and habitat development and the rural building centres were discussed. It was felt that this would encourage the infusion of both new technologies, designs, materials and credit in the rural housing sector. The Secretaries noted that the enhanced equity contribution of the Ministry of Rural Development for HUDCO and the launching of a National Mission for Rural Housing and Habitat have resulted in a paradigm shift in the Government of India's Rural Housing Policy.