5th September, 2003
Ministry of Rural Development  


KASHIRAM RANA INAUGURATED REVIEW MEETING OF NORTH-EASTERN STATES

SUBSIDY TO NORTH-EASTERN STATES FOR TRANSPORTATION OF FOODGRAINS UNDER SGRY


Shri Kashiram Rana, Union Minister for Rural Development urged State Governments of North Eastern Region for effective and result oriented implementation of rural development programmes in the Region. Inaugurating Review Meeting of the North-Eastern States in Gangtok today, Shri Rana said the Government of India allocates 10% of the budgetary support under different development Ministries to this Region. Accordingly, Rural Development Ministry has also been allocating 10% of its budget allocation to the North Eastern Region for implementation of various Rural Development Schemes. During 2002-03, the Ministry allocated Rs.881.09 crore to the North Eastern Region as a whole under various programmes (except PMGSY) but the NE States could take only Rs.787.65 crore. In the current year, development has allocated Rs.929.56 crore under different major progrmmes (except PMGSY) but the Region so far has taken only Rs.201.25 crore, which is only 21.65% of the Central allocation to the Region.

Shri Rana indicated that serious problem being faced by the North Eastern States is the inability to mobilize matching State share to the Central releases. Therefore, there is a demand to change the funding pattern under the Centrally Sponsored Schemes to 90:10 from the existing 75:25. Rural Development Ministry has been advocating and supporting this change. Shri Rana expressed hope that a favorable decision would come from the Planning Commission.

Considering the major problem in the implementation of Sampoorna Grameen Rozgar Yojana (SGRY) for transportation of foodgrains in the region, Shri Rana announced that the Ministry has taken a decision to grant Transportation Subsidy to all NE States, henceforth.

Shri Rana further informed that the Ministry is willing to support alternate mechanisms for the delivery of credit to the Swaranjayanti Gram Swarojgar Yojana (SGSY) beneficiaries by involving traditional bodies in the North Eastern States. A pilot project to deliver credit through Village Development Boards (VDBs) in Nagaland is being taken up with the support of SBI, NABARD and the Government of Nagaland. The Ministry has also been financing Special Projects under SGSY in the Region for creation of self employment opportunities on a cluster basis. The experience of Assam in this regard has been satisfactory. Shri Rana called upon North-Eastern States to come up with innovative and viable Special Projects to exploit the potential of the Region for generation of self-employment opportunities.

Responding over the demand for strengthening of infrastructure in DRDAs of the North-Eastern Region, Shri Rana announced that it has been decided to support the construction of DRDA buildings, wherever needed, and purchase of one vehicle and computers for new DRDAs.

 
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