No funds for districts without plan committees

The Cabinet Committee on Economic Affairs has said no funds would be released to districts that do not have a district planning committee and participatory district plans.

This decision, aimed at boosting the panchayati raj movement, was approved by the CCEA, which cleared the backward regions grant fund (BRGF) as well as funding for the existing Rashtriya Sam Vikas Yojana on a 100 per cent central grant basis.

Terming the decision as a major initiative of the UPA government, Finance Minister P Chidambaram told reporters: "If there is no district plan, no funds will flow. This is to ensure that panchayati raj institutions set up district planning committees to draw funds," he said.

A total of Rs 5,000 crore had been earmarked for the BRGF in the 2006-07 Budget for the development of 250 districts. The CCEA also gave ex post facto approval to expenditure incurred for the Rashtriya Sam Vikas Yojana for 2005-06.

A special plan for 36 districts of Bihar and 19 districts of Orissa, including Koraput, Bolangir and Kalahandi (KBK) districts, will continue to get Rs 1,000 crore and Rs 250 crore per year. The special plan for Bihar will also continue to receive Rs 1,000 crore per annum till the end of the 11th Plan.

Panchayati Raj Minister Mani Shankar Aiyar said the CCEA had also approved setting up 11 krishi vigyan kendras in as many rural districts and had also decided to step up the 10th Plan allocation by Rs 35.80 crore, of which over Rs 2.7 crore would be used for setting up the kendras.

The Union Cabinet had given its approval for the rural electrification policy to improve access and quality of electricity supply in rural areas, PR Dasmunsi, information and broadcasting minister, said.

The Cabinet also approved dissolution of the governing council of the National Sample Survey Organisation (NSSO), he said.

Dasmunsi said the National Statistical Commission would regulate the entire statistical system, including that of the NSSO, which was hitherto being performed by the governing council. The Cabinet gave its approval for setting up of a national rainfed area authority which will provide the much-needed knowledge for rainfed agriculture.

The re-introduction of the scheme for reimbursement of a one-time rebate at 10 per cent given by various handloom cooperatives and allied agencies has also been approved by the CCEA. The scheme will be for a period of three years beginning from 2006-07 with a budget provision of Rs 100 crore.

"Rs 20 crore will be released during 2006-07 and Rs 40 crore each for 2007-08 and 2008-09. The scheme will be 100 per cent funded by the Centre," Chidambaram said.

"With the assistance provided under the scheme, the handloom agencies will be in a position to sell their unsold handloom cloth faster by giving rebate to the consumers," he added.