The Hindu : World Bank, ADB loans sought for rural roads

Online edition of India's National Newspaper
Sunday, Oct 20, 2002

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World Bank, ADB loans sought for rural roads

By Gargi Parsai

New Delhi Oct. 19. The Government has sought loans totalling about $ 800 millions from the World Bank (WB) and the Asian Development Bank (ADB) for construction of all-weather rural roads to provide connectivity to villages under the Pradhan Mantri Gram Sadak Yojna. Of this $ 300 millions is sought from the ADB and the rest from the World Bank.

Speaking to presspersons on the completion of three years of the NDA Government, the Union Rural Development Minister, Shanta Kumar, said the WB and the ADB had agreed to fund the programme and had initiated studies in this regard. It is expected that assistance from these two agencies would come from the next financial year.

The Government needs Rs. 60,000 crores to achieve its objective of providing connectivity to all unconnected habitations and villages by 2007. The present source of funding is the diesel cess.

To ensure quality of roads, the Government will enter into a five-year agreement with the contractor for maintenance.

Mr. Kumar also announced that the Centre would launch a scheme for unemployed rural youth in two months. To be called Jayaprakash Employment Guarantee Scheme, it would ensure employment to any person (skilled or unskilled) willing to do manual work in 130 most poor and backward districts, which had been identified by the Centre.

Announcing the scheme here today, Mr. Kumar said about Rs. 1,000 crores had been set aside annually for the scheme. The persons identified by the State would be given 100 days of work within 15 days of applying. The unemployed youth would in turn be paid in cash or kind.

The Minister also announced the formation of Vigilance and Monitoring Committee at the State, district and block level to ensure implementation of the Central schemes. The monitoring committees would comprise officials and representatives of people, including from panchayat raj institutions. He described the scheme as ``decentralisation'' of monitoring.

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