GUWAHATI, Nov 30 ? The Union Ministry of Rural Development has taken a serious note of the tendency of banks not to extend rural credit in the North-east (NE). Union Minister of Rural Development Raghuvansh Prasad Singh has decided to take up the matter with the Ministry of Finance.
Addressing newspersons here this afternoon, Singh said that rural development programmes in several areas of the region have failed because of the attitude of certain bank officials to deny loans to the needy people. He said that some of the bank branches in the region have recorded zero finance.
?While the well-to-do people are being offered loans by banks to buy houses, cars and other luxuries at interests between 6 and 7 per cent, the poor are being charged interests between 10 to 12 per cent on loans that could bring about development,? the Union Minister observed. He said that despite the high interest rates, some of the bank officials are not even extending the loans. They are instead harassing the people, he stated.
Singh, who was in the city in connection with a daylong review meeting with Chief Ministers and Rural Development Ministers of NE, has asked the States to furnish details of all bank branches that have recorded zero performance in advancing credit under the Swarnajayanti Gramin Swarozgar Yojana (SGSY). The problems relating to banks for loans under SGSY have already been
taken up by Singh?s Ministry with the Ministry of Finance.
The Minister informed newspersons that the Rural Development Ministry has earmarked Rs 1,600 crore, under various schemes for NE this year. He added that Assam has been allocated Rs 300 crore more than what it had got last year for rural development schemes. The region has 45,000 villages. The Ministry is giving top priority to the implementation of potable water schemes under the Sampoorna Gramin Rozgar Yojana (SGRY). This year, an additional Rs 45 crore has been given to the region under this Yojana adding to the Rs 330 crore set aside for the region.
Singh informed that the NE States have apprised him about the inadequate supplies of food grains made by the Food Corporation of India (FCI) under the SGRY and the Food for Work Programme. The Minister has suggested that the procurement of food grains for these programmes should be made within the State to the extent possible to reduce transportation costs. He promised to take up the problems relating to the FCI with the Ministry of Food and Civil Supplies.
Pointing out that the country cannot progress unless there is development in the rural areas, Singh said that his Ministry is not averse to relaxing some of the norms for the benefit of the region. He said that he fully backed the demand of the States of the region to change the funding pattern of development schemes from the present 75:25 pattern to the 90:10 pattern.
The Union Minister announced that district monitoring and vigilance committees are being formed all over the country to monitor the implementation of the rural development schemes administered by the District Rural Development Agencies (DRDAs). He pointed out that the record of utilisation of funds by some of the DRDAs in the region is not very satisfactory and concerted action is necessary to gear up the delivery system.
He asserted that there are no diversions of rural development funds. There are 600 DRDAs in the country. Singh said that there is absolutely no plan to scrap the DRDAs and fund schemes directly through the panchayat bodies. The monitoring and vigilance committees would comprise local MPs, MLAs, members of zila panchayats, NGO representatives among others, he said.
Earlier today, the Union Minister reviewed the implementation of rural development schemes in the region with the Deputy Chief Minister of Meghalaya and Rural Development Ministers of the other States. Mizoram was represented by its Rural Development Secretary.
The meeting saw the States seeking an increase in the Central share in rural development schemes to 90 per cent from the existing 75 per cent. Some of the states also demanded release of Central share in a singe instalment instead of two instalments to facilitate full utilisation of funds. Problems relating to the implementation of the Pradhan Mantri Gram Sadak Yojana (PMGSY) because of the special geographical features of the region and the timely supply of food grains under SGRY were also discussed.
The States asked for an increase in financial assistance for houses under the Indira Awas Yojana (IAY). Under this scheme, the unit cost for construction of houses in hilly and difficult terrain has already been enhanced by the Centre from Rs 22,000 to Rs 27,500 and the allocation for the NE States under this programme has been increased from Rs 190 crore in 2003-04 to Rs 250 crore this year.