The Hindu : Tamil Nadu News : Centre planning electronic transfer of funds

Online edition of India's National Newspaper
Wednesday, Sep 08, 2004

Tamil Nadu

Tamil Nadu

Centre planning electronic transfer of funds

By Our Special Correspondent

COIMBATORE, SEPT. 7. The Centre is planning electronic transfer of funds for speedy implementation of works taken up under the MPs' Local Area Development Scheme (LADS), the Minister of State for Statistics and Programme Implementation, Oscar Fernandes, told a press conference here today. He said concern had been expressed in Parliament and also in various quarters over utilisation of funds.

``At the end of the term of the last Lok Sabha, as much as Rs. 2,132 crores (allotted for more than a year to the MPs) remained unspent.''

According to him, while there is demand from some quarters for increasing the allotment, there is also concern at the funds not being utilised.

``We cannot think of allocating more if the utilisation remained at such a level.'' However, he admitted, there was a ``time gap'' between the recommendation of schemes by the MPs and estimates preparation and execution of works.

``The District Collectors are ready to execute the works only when the funds are deposited. While the Centre received funds at nine per cent and disbursed them to the District Collectors, they deposit the same with local banks which fetch just four-six per cent. Thus we lose in this regard also.'' So, the Centre was planning to transfer funds electronically as and when the Collectors needed them.

Mr. Fernandes said the Centre was revising the MPs LADS. It was planned to put all the data of implementation online.

For this, a pilot scheme was launched in 10 districts. ``If this proves successful, we will link all the districts which would help to monitor the implementation in any part of the country.''

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