Saturday, May 03, 2003
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By Aarti Dhar
The decision was taken last month by the former Rural Development Minister, Shanta Kumar, after complaints of misuse of funds in several districts proved correct during enquiries. He has also recommended a review of the scheme. The Sector Reform project was started in 1999-2000 to promote demand-responsive approach, community participation and decentralisation of powers for implementing and operating drinking water supply schemes in rural areas. The Centre's contribution to the Rs. 2,060.45 crore scheme was to be Rs. 1,922.85 crores and the remaining was to be given by the beneficiaries. So far, the Central Government has released Rs. 631 crores to 67 projects, each district receiving about Rs. 40 crores. But the results are not satisfactory in most cases. Under the scheme, 35 per cent of the funds were earmarked for Information Education and Communication (IEC) to create awareness among the villagers about the project. Each district received approximately Rs. 14 crores as a one-time grant, but could ask for more. The funds released under the scheme are virtually at the disposal of the District Collector, who is required to initiate and implement the schemes with the help of a Village Water and Sanitation Committee at the local level. After spending the first instalment, he is required to send a Utilisation Certificate to the Ministry, which wiill send a team to the site to carry out an inspection, before releasing the second instalment. A Pandora's box was opened when the Ministry received an unsigned Utilisation Certificate from Bhatinda district in Punjab, along with a demand for more money. The UC was returned to the Collector with enquiries. However, within a few days another request was received from Bhatinda seeking the release of the second instalment — this time for Rs. 1.33 crores as against Rs. 2 crores, the first time. An enquiry was immediately ordered and a team of experts sent there for an on-the-spot assessment. Enquiries revealed that Rs. 50 lakhs had been deposited in the VWSC account soon after the Ministry had ordered an enquiry, whereas in the request it had been said that all the money had been utilised. The team did not find evidence of even a single work carried out under the project. Similarly, in Coimbatore district of Tamil Nadu, the third instalment had been released even before a team of experts gave its report to the Ministry. Also, the mandatory 60 per cent of the funds from the first instalment were unutilised. Of the funds released, only Rs. 125 crores has been put to good use, while a lot of money released under the schemes lies unutilised. The project is on the verge of closure in at least 45 districts, with only a few success stories — such as the one in Vellore district.
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