Nabard to bridge Bharat Nirman gap

Prime Minister Manmohan Singh today asked the finance ministry to direct the National Bank for Agriculture and Rural Development (Nabard) to create a separate financing window to bridge the Rs 4,000-crore gap existing in the Budget as far as financing the Bharat Nirman scheme was concerned.

Nabard has been called in to bridge gaps in the rural roads construction and irrigation works component of the six-part Bharat Nirman scheme.

Other aspects of the Bharat Nirman are a four-year plan for improving the rural infrastructure, which includes roads, power, water supply, irrigation, housing and telephone connectivity.

While around Rs 30,000 crore will be available for the Bharat Nirman from internal revenue mobilisation and external assistance, a funding gap of Rs 4,000 crore per year remains to be bridged. This will be done by Nabard.

The Prime Minister has also said the information pertaining to targets, execution of works, funding and other aspects of Bharat Nirman should be posted on the Internet by November 14, to enable an accountable delivery.

The government is yet to bridge the funds gap to provide housing for the poor through the expansion of the rural development ministry's Indira Awas Yojana scheme.

To ensure effective implementation of the National Rural Employment Guarantee Act, the Prime Minister has suggested a series of steps including gearing up of the panchayati raj institutions and training to all concerned agencies.

In a letter to chief ministers, released to the press today, he underlined the importance of planning, careful selection and designing of productive works, capacity building of panchayati raj institutions, and of empowering the weaker sections.

Singh stressed the need for establishing systems of strict monitoring, verification and evaluation, selection of best officials to deal with the programme and for transparency and public accountability in its implementation.

Pointing out that the Act was to be extended to the entire country within five years, beginning with 200 backward districts, he said, "Our performance in these 200 districts will yield useful insights and lessons in extending it across the country. Therefore, the quality of implementation of the Act in its initial phase is crucial in all respects and the role of state governments critical."

The Act, passed in August, provides for legal guarantee of 100 days of employment in a financial year to a rural household.