The Orissa government had sought the creation of such a fund to meet emergency needs associated with the implementation of the wage employment programmes under the NREGS.
The union ministry of rural development (MoRD) has communicated the state government that there is no need for a corpus fund as the Centre has decided to directly release the NREGS funds to the Orissa government. Previously, the department was releasing funds under the scheme to the districts.
However, following the complains from the district collectors about the shortage of funds due to delay in release of Central assistance, the state government had proposed the creation of the corpus fund to the Centre.
Chief Minister Naveen Patnaik had written a letter to the the Union minister of rural development R P Singh seeking creation of such a fund.
The NREG Act provides that if payment of a registered job seeker was held up for more than two weeks, the government will have to pay interest on it.
The districts where payments were held up for more two weeks due to paucity of funds included Sundergarh, Jharsuguda, Raygada, Malkangiri, Nawarangpur, Baragarh, Subarnapur, Angul, Nuapada and Mayurbhanj. Though these districts were entitled to get the next instalment after they spend 60 percent of the allotted funds, there was delay in the release of Central funds.
Even the state Panchayatiraj minister Raghunath Mohanty had expressed apprehension that that the delay in the release of Central fund may severely impact the execution of this programme.
As per the instruction of the union ministry of rural development, the Orissa government opened a separate NREGS account in the secretariat branch of public sector UCO Bank.
The ministry had released Rs 148 crore in the first phase for 21 districts of the state and it released additional Rs 169 crore last week in the second phase for 22 districts, an official of the state Panchayatiraj department said.
