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LATEST NEWS UPDATES | ADB loan cleared for road works in naxal-hit villages by K Balchand

ADB loan cleared for road works in naxal-hit villages by K Balchand

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published Published on Jan 7, 2012   modified Modified on Jan 7, 2012

The Union government has cleared an external loan to finance part of the programme launched by the Ministry of Rural Development in left wing extremism-affected villages.

The clearance is for a loan of $500 million from the Asian Development Bank (ADB) to speed up construction of rural roads.

Union Minister of Rural Development Jairam Ramesh has, in a letter, urged Finance Minister Pranab Mukherjee to issue directions for negotiating and early signing of the loan, which his Ministry has cleared, to shore up resources to give thrust to the Pradhan Mantri Gram Sadak Yojana (PMGSY) that is way behind schedule.

The ADB, which has already extended a loan of $800 million, has been petitioned with a fresh proposal for rural connectivity investment programme to construct or upgrade 7,000 km of roads connecting eligible habitations in Maoist-affected States of Bihar, Chhattisgarh, Madhya Pradesh, Odisha, West Bengal, besides Assam where too the PMGSY has progressed with little to cheer.

Incentives to locals

The demand for the loan comes against the backdrop of the MoRD's multi-winged programmes in the left wing extremism-affected areas, under which Central forces assist execution of welfare and development schemes to wean the local people from the path of naxalism.

While countering the underground naxalite movement through Central forces, the MoRD has been providing incentives and assistance to the local people, particularly tribals, to reduce poverty and ensure economic growth of the region. Rural connectivity is considered pivotal to the success of this stratagem.

As per the programme drawn up by the MoRD, the Centre will supplement with a contribution of $127.6 million, in addition to the $5,000 million to finance the project that includes setting up of training and research centres pertaining to rural roads.

11-year-old programme

The programme, now 11 years old, was supposed to have covered all habitations with a population of 500 people (250 people in the case of tribal and hilly areas) by 2007, but the current rate of progress precludes the possibility of accomplishing the mission even by 2017.

Describing the slow pace of progress as unacceptable, Mr. Ramesh has directed that the target be met by 2014. He also has proposed the public private partnership mode in developed States such as Maharashtra and Gujarat and invited proposals from them.

These habitations have been identified on the basis of the 2001 Census and the MoRD's problem will compound if it were to be required to comply with the data enumerated in the latest Census of 2011.

Mr. Ramesh made it clear that the priority was to provide rural connectivity to habitations of 500 people in general areas and 250 people in tribal and hilly areas listed in the 2001 Census and the additional ones listed in the 2011 Census would be taken up at a later stage.

Criticises BJP

Mr. Ramesh accused the BJP of failing to fund the programme, saying that from 2000-01 till 2004-05 the annual allocation under the PMGSY stagnated in the range of Rs.2,500 crore, thereafter it had been raised gradually to the present level of Rs.20,000 crore for the current fiscal year.

The Hindu, 7 January, 2012, http://www.thehindu.com/todays-paper/tp-national/article2782477.ece


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