The Hindu Business Line : 3rd Finance Commission formed in Kerala

This was disclosed here by the Finance Minister, Mr Vakkom Purushothaman, during his inaugural speech at a seminar held here on Rural Infrastructure Development Fund (RIDF).

The seminar, hosted by the regional office of the National Bank for Agriculture and Rural Development (Nabard), was attended by district panchayat Presidents.

Kerala is the first State to include panchayat projects under RIDF and it acknowledges Nabard's support to the idea, Mr Purushothaman said.

The district panchayats will implement projects under RIDF for the first time and need to be familiar with the requirements for the preparation of project proposals and their implementation.

The Finance Minister suggested that these panchayats take up fewer roads and bridge projects (which other panchayat bodies were doing anyway) and instead concentrate on other infrastructure

such as water supply, irrigation, health and education.Too many small roads covering only one panchayat area must be given only secondary priority.

Since the RIDF envisages a shorter implementation period of two to three years, the district panchayats must ensure that the projects are implemented quickly once they are sanctioned, the minister said.

It was the positive experience in implementing RIDF projects by panchayats that had encouraged the State Government to assign greater roles to them. "But, I have been informed that the pace of implementation of projects already sanctioned to block panchayats and gram panchayats is slow. The physical and financial progress has been 41 per cent and 46 per cent respectively. This is a mater of concern not only for Nabard but also for the State Government," Mr Purushothaman said. Nabard has been reporting that many project proposals of block panchayats lacked essential background information and this may lead to protracted correspondence and delay in the sanctioning process.

The Finance Minister requested the district panchayat officials to ensure that such deficiencies did not crop up in the project proposals.

He also said, "At the same time, we have had a few problems with Nabard as well. Very little funds, if any, are being given as advance, as a result of which, the implementing agencies have been forced to advance funds from their own resources. The schemes do not provide for any tender excess or cost escalation, which the State Government is forced to meet from its own budget."

The State Government hopes to settle these issues with Nabard, the minister said.

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