In the past the implementation of rural development projects has been beset with a number of problems. Projects are not always selected in consultation with the actual beneficiaries; there is leakage in fund utilisation; transparency in the award of contracts and their implementation is lacking; and only a small fraction of the funds allotted goes towards actual creation of benefits for the target persons.
The range of projects for rural development encompasses roads, irrigation water supply, agricultural marketing, agricultural credit and drinking water supply rural housing. Two key problems in rural areas are unemployment and lack of infrastructure. Roads are an important part of infrastructure. It is reported that the World Bank is likely to provide resources for rural roads which will provide employment, add to the infrastructure in rural areas and integrate them better with markets.
A new paradigm for implementing rural roads presented here addresses many issues that beset rural road projects. The same method can be adapted for other rural development projects with appropriate changes. The main issues are allocation of funds and their prioritisation, the designs and standards for road construction, selection of contractors and their supervision to ensure quality construction, and structuring of contracts in a fair manner.
The entities involved in this paradigm will be: the village panchayat or panchayat union; the district administration; NGOs; contractors; the private sector; and the Construction Industry Development Council (CIDC). CIDC is the apex body for the construction industry, with participation by the largest private sector construction companies and public sector companies that have large construction contracts. The public and private sectors have equal representation on the board of governors. The deputy chairman of the Planning Commission is the patron. This organisation has, over the last six years, developed tendering and contract documents of international standards. It has undertaken training programmes for construction workers and networked with other Saarc countries for training programmes.
The role of each of these entities will be on the following lines:
The panchayat should have a say in the priority to be given to roads within the funds available to it. The total amount of funds available for each panchayat or panchayat union should be indicated by the district administration by pooling together all the different packets available out of different Centrally sponsored, assisted and foreign funded schemes under different heads, some of which may be earmarked for particular sectors or projects. In order to enable the panchayat to make informed decisions it should be assisted by NGOs and the district administration, and decisions should be taken after open discussion. Such decisions should cover rural roads and other felt needs at the village level.
The district administration should work out the total funds available to the panchayat during a year. The state administration should give a break-down of fund allocations and say which are fungible and which are not, keeping the fungible part as large as possible. Some funds may be available at the district level, some at lower formations depending on the nature and size of the projects and the source of funding. IT solutions will be used for storing information, listing projects according to panchayat preferences, and implementing projects. Funding will be provided to select NGOs that cannot fund their requirements.
NGOs can perform a useful purpose if they indicate from their own experience the order of priorities to be adopted by the panchayats. They will be graded by institutions like Icra in association with CIDC, as they have been engaged in this activity for some time. NGOs with their own funding would be preferred, other things being equal. Selected NGOs can also participate in the supervision of the road works actually contracted out along with CIDC, which can access qualified civil engineers, and report to the panchayat at periodic intervals on the quality of work, speed of completion and costs incurred.
The contract award procedures are crucial to avoid favouritism and contract padding. The state or district administration can also assist in this. CIDC, which has done considerable work in this area, should advise on prequalification criteria for contractors, the tendering procedures, contract terms, including the payment terms, quality certification and dispute settlement procedures. Their reports should be placed before the district administration and the funding agency.
The private sector can play a useful role. If larger industrial houses can depute one of their new business recruits to work in rural areas, they can also make a contribution with their analyses and advice on the various procedures. These persons will be funded by their respective employers as their contribution towards rural development. They can assist the panchayat and the district administration in adopting IT solutions for listing felt needs, priorities for choosing projects and records of all projects.
At the apex of the group will be the project committee under the chairmanship of the panchayat president.
This is the structure for rural roads. With suitable modifications, it can be adopted for other schemes. The advantage of this arrangement will be greater transparency, less leakage, more value for money spent, better quality and speedier completion. Above all, there will be a sense of participation by the panchayats in the entire process of selection of projects and their implementation, and encourage them to come forward to mobilise some of their own resources for their development.
