The Hindu : Other States / Jharkand News : Central fund for backward districts

Online edition of India's National Newspaper
Monday, Oct 11, 2004

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Other States - Jharkand

Central fund for backward districts

RANCHI, OCT. 10. The Centre has sanctioned Rs. 15 crore for the development 16 backward districts of Jharkhand per year for three years under the Backward Area Initiative (BAI) to ensure development, according to official sources here today.

The sources said that after identifying 16 out of 22 districts of the State as ``backward'', the Centre has sanctioned Rs. 15 crore per year, amounting to Rs. 720 crore to be given in phases for three years.

``The aid is part of the Centre's `direct intervention' to promote development in a state whose more than 50 per cent population live under the Below Poverty Line (BPL). Under the BAI, the Jharkhand government will utilise the Centre's funds by taking up those projects which will ensure development in the hitherto backward areas.''

Stating that Jharkhand's development and prosperity had been stifled by several crippling problems, the sources said a major chunk of the State's budget was spent on building infrastructure to ensure that its citizens get the basic amenities.

``In this connection it will be pertinent to mention that the plan allocation for the State's budget has jumped to Rs 4,110 crore in the current fiscal from Rs 2,935 crore in the last fiscal,'' the sources pointed out.

The sources denied the common allegation that most of the funds were sent back to the Centre for remaining unutilised and clarified that the Centre had been sanctioning funds in phases to the States, with the target that once the funds were utilised the second phase of disbursing funds would commence.

``If the State fails to furnish Utilisation Certificate, further disbursing of funds would be withheld.''

Stating that education, health, welfare and other basic sectors in Jharkhand needed to be developed at a brisk pace, the sources regretted that the areas remained ``grossly neglected'' when Jharkhand was a part of undivided Bihar.

The sources argued that officials implementing various projects on the ground also needed to sensitise themselves on the requirements of the mass and convey them to the authorities at the planning level so that a proper planning was followed by required allocation.

To a query they agreed that there was no dearth of minerals in Jharkhand but regretted that the mines, considered to be the lifeline of the State's economy, had not been under utilised as there was an absence of the finished product linkage.

They exemplified that while the state possessed mines, it lacked processing industries, which could process the minerals to make them ready-for-use for prospective consumers, both national and international.

``The State has rich deposits of bauxite but it lacks processing industries to give finals shape to market-oriented products,'' they said.

UNI

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