NEW DELHI: Several States are unlikely to receive money under the Backward Regions Grant Fund (BRGF) for this financial year as they have failed to set up district planning committees (DPCs). The transfer of funds to districts under the scheme is based on district development plans drawn by panchayats and the DPCs and approved by the State Governments.

The Union Panchayati Raj Ministry is expected to launch the BRGF scheme in October. It is expected that the guidelines, being finalised in consultation with the Planning Commission, will specify that all approvals of district plans be done at the State level. The Planning Commission will ensure that the annual and perspective plans of the States are harmonised with the district plans.

Of the 27 States eligible to receive the funds under the BRGF scheme, 11 were yet to constitute the district planning committees till August-end. In effect, 130 backward districts will lose out on funds. The worst losers will be 36 districts in Bihar, 34 in Uttar Pradesh, 13 in Andhra Pradesh and 12 in Maharashtra.

The other States where the DPCs are yet to be constituted are Arunachal Pradesh, Gujarat, Haryana, Jharkhand, Punjab, Tripura and Uttaranchal. Bihar has a special Rs. 1,000-crore package under the scheme.

Catalysing development

The BRGF is aimed at catalysing development in the backward areas by providing infrastructure, promoting good governance and agrarian reforms. It provides for an annual assistance of Rs. 3,750 crore to 250 selected backward districts. There are special plans for Bihar and the Kalahandi-Bolangir-Koraput (KBK) districts of Orissa. The total annual allocations under this head for them are Rs. 1,000 crore and Rs. 250 crore.

At the Central level, the scheme is to be implemented by the Panchayati Raj Ministry. In the KBK districts and Bihar, the Planning Commission will be the implementing agency.

The constitution of the DPCs for drafting district plans is mandatory under the 73rd amendment. In the 11th Five Year Plan, the Commission has made district planning compulsory for receiving funds.

The total allocation for 2006-07 is Rs. 3,750 crore and the grant will continue for the entire 11th Plan (2007-2012). Of this, Rs. 250 crore per annum at Rs. 1 crore a district is for capacity building and the balance is an untied development fund. In 147 of the 250 districts, where the Rashtriya Sama Vikas Yojana is being implemented, funds will be given to complete the ongoing programmes and in the remaining 103 districts, the BRGF scheme will start straight away.

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