Backward district panchyats to get special grants: Iyer

New Delhi, Aug 11 (UNI) The Centre has identified 250 of the most backward of the country's 600-odd districts including a mayority of naxalite-infested areas for paying a special grant to village panchayats for promoting agrarian reforms, infrastructure and capacity building.

The Backward Regions Grant Fund (BRGF), instituted for the purpose, carries two Central annual allocations of Rs 3,750 crore for 250 selected districts across the country and Rs 1,000 crore for Special Plan for Bihar. Kalahandi-Bolangir-Koraput (KBK) districts of Orissa will get Rs 250 crore.

The allocation of funds under the BRGF scheme, prepared after thorough discussion with States, will continue for entire 11th Five Year Plan (2007-2012).

The funds are provided on a 100 per cent grant basis and allocation as Additional Central Assistance to State plans, said Panchayati Raj Minister Mani Shanker Aiyar.

The selected districts, covered under BRGF are also being taken up under the National Rural Emoployment Guarantee Programme.

Of the total allocation for the District Programme (Rs 3750 crore) for 2006-07, Rs 250 crore per annum (at the rate Rs one crore per district) will go for capacity building. The balance (Rs 3500) is United Development Fund which will go to the Consolidated Fund of the States. Each district getting an allocation of Rs 10 crore and half of the remaining Rs 1,000 crore will be divided between the districts on the basis of its population and 50 per cent on the basis of the area.

Of the selected districts, as many as 147 are being covered under the Rashtriya Vikas Yojana (RSVY) and the funds allocated for these district under the BRGF scheme of the Union Panchayati Raj Ministry will be spent on completing the ongoing programme under RSVY. And, in the remaining 103 districts, the BRGF programme will start straight away.

Mr Aiyar said the BRGF money would be directly given to the Panchyats on the basis of a transparent formula decided at the local level. The Panchayats will be fully involved in the developmental work, he added.

As many as 14 states had already agreed to the Panchayati Raj Ministry's mode of extending funds directly to the panchayats and encourge them to undertake development work while shouldering accountability for the funds used, Mr Aiyar said.

However, he said his Ministry would go in for 'electronic monitoring' of the funds utilised by the panchayats through bank account system to be evolved for that.

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