Date:23/01/2008 URL: http://www.thehindu.com/2008/01/23/stories/2008012350370100.htm

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Official machinery in for a revamp

Special Correspondent

To increase efficiency and meet service-delivery expectations of people

THIRUVANANTHAPURAM:Finance Minister T.M. Thomas Isaac has said that the State government is contemplating a complete revamp of the official machinery to make it respond more efficiently than at present to development and service-delivery expectations of people.

Inaugurating the State Credit Seminar of the National Bank for Agriculture and Rural Development (NABARD) here on Tuesday, Dr. Isaac accepted the criticism that in some cases, the State could not utilise the full quantum of funds available to it from various sources, including financial institutions, for undertaking programmes for the people. “It is a case of bad planning and worse execution [of projects],” he said.

He said the problem simply was that the funds-absorption capacity of the official machinery had limitations at present.

Projects would be got ready on paper and funds sanctioned, but at the implementation stage, suddenly, it would be seen that the works could not get going since delays and problems connected with land acquisition had not been factored in, he said, citing one example of how things could go awry.

This, he said, was not a new problem. A thorough revamp of the machinery, to correct certain basic shortcomings with its functioning, was on the cards, he said.

Bhawar Puri, Chief General Manager, NABARD, delivering the keynote address earlier at the seminar, said the government should examine why the State often failed to absorb the full quantum of assistance sanctioned by it from its Rural Infrastructure Development Fund.

Call to shed rigidity

Referring to this remark, Dr. Isaac said the system needed to shed its rigidity on all sides. On the one hand, the government had not been in the habit of revising contractors’ rates in tune with price escalations. The NABARD, on the other, would not permit any excess over the tendered rates.

Dr. Isaac said the public works contractors’ rates would be revised at least annually from the next financial year.

Replying to another point raised by Mr. Puri, the Finance Minister said the problems associated with “multiplicity of credit flow” to self-help groups could be resolved only if banks and other financial institutions recognised Kudumbasree units as the most reliable recipients of micro credit.