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Our Bureau

Govt move to bridge funding gaps of Bharat Nirman

New Delhi , Sept. 22

The Government decided on Thursday to allow borrowing of funds from the National Bank for Agriculture and Rural Development for achieving the rural road targets of Bharat Nirman. The additional funds for the programme will help in meeting the funding gaps. of Bharat Nirman.

The Bharat Nirman goals are to be implemented by 2009. The decision taken at the Cabinet meeting headed by the Prime Minister, Mr Manmohan Singh, is aimed at ensuring flow of funds towards augmenting the rural road network by providing new links to unaccounted habitations and modernising the existing network.

Quantum of funds

The Cabinet also decided to allow National Rural Roads Development Agency, a society created under the Ministry of Rural Development, to act as the authority for borrowing funds from the special window under Nabard, an official spokesperson told reporters after the meeting.

The Rural Development Ministry proposes to raise Rs 16,500 crore from Nabard for the purpose, according to an official release.The Ministry would decide the number of tranches in which these will be released to the States.

Funds from this window would supplement grants from Central Government and as the repayment is to be made from the proceeds of cess, borrowing by a Central Agency would be faster and more appropriate.

The Cabinet also cleared a proposal to amend the Central Road Fund Act, 2000 to enable borrowing and repayment with regard to land for development of rural roads. A Bill — Central Road Fund (Amendment) Bill, 2006 — will be introduced in Parliament in this regard. The Cabinet also approved promulgation of an Ordinance to amend the Central Road Fund Act, 2000, to give effect to the amendments.

More Stories on : Agricultural Institutions | Roadways | Rural Development | Financial Policy

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