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Centre's new terms on sewa kendras put States in a fix by K Balchand

‘No further funds for the job scheme if norms are not met' 

Several States, activists oppose new provisions

Financial proposals now to be made online

The Centre has made construction of the controversial Bharat Nirman Rajiv Gandhi Sewa Kendra mandatory out of funds earmarked for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and warned that States which fail to do so will not receive any money under the scheme which promises 100 days' job to households below the poverty level.

In a letter to Secretaries in-charge of MGNREGS in the States, the Union Ministry of Rural Development has made it clear that if they do not make provision for construction of the Rajiv Gandhi Sewa Kendra, the second tranche of funds under the scheme for the current financial year 2010-11 would not be released.

Several States, including Bihar, have expressed inability to construct the sewa kendras saying that they do not have the funds for the purpose.

Even noted social activists Jean Dreze and Aruna Roy, both now members of the National Advisory Council, have also opposed use of MGNREGS funds for construction of the kendras.

Making a provision for the kendras has been listed among the various prerequisites set out for the release of the second tranche of funds. The Ministry has made it clear that the parameters have to be met as now the financial proposals have to be made only online and the software has been so programmed in such a way that it will simply not accept their proposals if the stipulated conditions are not met.

Under the new system devised by the Ministry calling for online submission of financial proposals, the demand for any specific tranche will not get registered at all.

Other prerequisites

Other prerequisites for releasing the funds include updated physical progress in terms of employment demand generated and financial progress, release of proportionate share by the State concerned, and at least 60 per cent expenditure of available funds.

MoRD Secretary B. K. Sinha in a letter has made it clear that funds under the entitlement would be released only if their proposals are based on the set of parameters that had been laid out as prerequisites. The Ministry has taken the stand that the new system has been put in place to smoothen and speed up financial releases apart from ensuring their proper and effective use for achieving MGNREGS objectives.

The letter makes it clear that the labour budget has to prepared and discussed in the gram sabhas and the amalgamated labour budget at the block and district levels too has to be approved by the panchayat samiti and zila parishad.

The State governments are required to consider the projected employment demand, projected person-days, the cost per person-day and the number and types of proposed works. The labour budget must present a month-wise break-up in respect of each district.

To claim the first tranche of funds, the States have to provide the opening balance of each district as on April 1 and settlement of accounts of the financial year before the last day.