THIRUVANANTHAPURAM: The Planning Board is working on a mechanism for optimum utilisation of funds allocated for Centrally sponsored schemes in the State.

Board sources said the mechanism would be included in the 11th Plan, considering the fact that there were lapses in securing funds allocated by the Centre for development and welfare projects.

Implementation of these schemes has drawn flak since it is being done in a shoddy manner for want of effective monitoring. The Board has come across instances in which huge amounts got lapsed because of the negligence of the State Government, local bodies and various agencies.

The Prime Minister's Grameen Sadak Yojana, aimed at linking habitats of tribal people and other weaker sections in rural areas, and Hariyali, a watershed-based development project, have been cited as the best instances in which the Government has reportedly failed to secure funds from the Union Government.

A sum of Rs. 140 crore was sanctioned under the yojana between 2001 and 2005. Though the Government had managed to secure Rs. 90 crore, road development projects estimated at Rs. 50 crore only were executed. According to the guidelines, Rs. 30 lakh can be spent on developing a 1-km stretch. The State lost substantial assistance owing to delay in submitting feasible proposals in time and lack of effective monitoring of projects. Many projects are moving at a snail's pace and unlikely to be completed within the stipulated time, sources said.

The Government envisaged development of 524 km of rural roads in 2005, but it submitted proposals for Rs. 50 crore to develop 54 km, and all of them were rejected by the Centre.

Less than 5 per cent of the funds sanctioned for the Hariyali scheme was utilised. The scheme envisages watershed projects on 2,500 hectares of land to increase water retention and soil fertility. For each hectare, the Centre will provide Rs. 5,500 and the State Government has to contribute Rs. 500.

There are complaints that the State Government has failed to take advantage of the scheme.

The Planning Board has identified the problems faced by the Government and local self-government institutions in preparing and executing projects. The new strategy will focus on better coordination between Government departments and preparation of projects in advance so that they can be implemented from the beginning of the financial year. It will also suggest a scientific monitoring system to review the progress of the projects, sources said.

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