Southern States
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Andhra Pradesh
WB to fund rural roads programme
By Our Special Correspondent
HYDERABAD, JAN. 12. The World Bank and other external agencies have evinced interest in funding the ambitious PM's Grameena Sadak Yojana (PMGSY) under which all villages in the country are to be covered with pucca road network by 2007.
Addressing a press conference on Saturday, the Union Minister for Rural Development, M. Venkaiah Naidu, said an amount of Rs. 36,000 crores was required in addition to the accruals from diesel cess for constructing rural roads.
The PMGSY, launched in 2000-2001, was making steady progress. A road network of over 12,800 km, which included upgradation of the existing roads, was built at a cost of Rs. 2,500 crores in the first year. About 12,500 villages were thus covered with all-weather roads.
In the second year of the programme about 21,509 km in 14,000-odd villages would be covered with an outlay of Rs. 4,240 crores. Based on the experience till now, plans have been drawn up and the World Bank and other agencies have responded positively to fund the scheme at a lesser rate of interest, the Minister explained. The roads being built under the project are of 3.5 metres wide with avenue plantation.
Mr. Venkaiah Naidu said the system of releasing Central funds to the States under various programmes was streamlined to ensure that the funds are availed as per schedule and works grounded. The erring States would be penalised with cuts in the sanctioned funds for not drawing them in time. It has been decided not to release any money in March and the States have to ensure that all sanctioned amounts of a year are drawn by February 28. Utilisation certificates for the funds released in the first half of the year would be insisted upon by December as a condition for releasing the funds of the second half in the month of January. The unspent fund would be treated as opening balance of the following year. If the opening balance of any State for a particular programme is more than 15 per cent, the first instalment of that year would be withheld.
The Union Minister expressed the hope that the lethargy of the administration in availing funds and grounding works could be checked by enforcing these safeguards. He said the names of the districts lagging behind in availing funds and grounding works would be published so that public pressure could be built on the administration.
Mr. Naidu said Hyderabad, Khammam and Nalgonda districts had not availed the second instalment of the Family Benefit Scheme while Guntur, Hyderabad, Karimnagar, Khammam, Medak and Prakasam districts had not availed the second instalment of the National old-age pension scheme,. Andhra Pradesh ranked one in the EAS (Employment Assurance Scheme) and Indira Awas Yojana (IAY).
Mr. Naidu, who assumed charge as Union Minister on October 3, 2000, said he had been able to persuade industry to focus its attention on rural development and more industrial undertakings are showing interest in performing corporate social responsibility. There were about 5.38 lakh registered companies in the State and 6.38 lakh villages. If every industry adopted one or two villages, it could bring about a sea change in rural India, he observed. The National Rural Development Fund was created and contributions to it were exempted from Income-Tax.
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