The government today approved a proposal to continue district component of Backward Region Grants Fund through the current financial year.
The Cabinet Committee on Economic Affairs in its meeting gave a nod to the proposal of Ministry of Panchayati Raj as the move for re-structuring of the district component is likely to take more time than initially expected, official sources said.
Under the district component, BRGF covers 272 backward districts in 27 states and the entitlement of each district is Rs 1 crore, which is used primarily to build capacity for elected representatives and functionaries of panchayati raj institutions.
The ministry had proposed to continue with this through the current fiscal as the programme for re-structuring of the district component will take more time.
Prime Minister Manmohan Singh had launched the programme in 2007 in Assam to give a push to development in underdeveloped regions of the country.
BRGF also has a state component which covers Bihar, Bundelkhand region, West Bengal and parts of Odisha.
While the Ministry of Panchayati Raj is the administrative ministry for the district component, Planning Commission takes care of implementation of the state component.
Under the district plan, the entitlement of each district is Rs 1 crore and the fund is used primarily to build capacity for elected representatives and functionaries of panchayati raj institutions.
