NEW DELHI, April 13 � Faced with the criticism of delay in release of funds, the Ministry Development of North Eastern Region (DoNER) on Tuesday, claimed to have made higher disbursement last fiscal, releasing Rs 668.62 crore under the Non Lapsable Central Pool of Resources (NLCPR).
The Ministry of DoNER released an estimated Rs 668.62 crore to north eastern states for development projects in 2009-10. The disbursed amount under NLCPR is higher than the allocation made in 2008-09, which was Rs 660.38 crore, said official sources.
In 2009-2010, the Ministry had earmarked Rs. 700 crore under NLCPR Scheme but ended up releasing Rs 668.62 crore. These funds are released to the north eastern states including Sikkim in instalments in the sanctioned projects on first come first served basis.
Often faced with complaints from the north eastern state about delay in release of funds leading to hold-up in project work, last June, the Chief Ministers of the region at a meeting with Minister DoNER, Bijoy Krishna Handique decided to have a re-look at the NLCPR guidelines. The revised guidelines have since come into force.
While the NE States complain of delays in release of funds, the Ministry DoNER argues that it is primarily due to delay in submission of Utilisation Certificates by the states.
The Ministry has sought a quantum jump in allocation projecting provisional budget allocation of Rs.800 crore for NLCPR.The Ministry has prepared a foolproof mechanism to avoid bunching of expenditure at the fag end of the financial year, sources said.
During the last fiscal, the NLCPR Committee of the Ministry convened 12 meetings, wherein a total of 97 projects for the north eastern states were sanctioned at an estimated cost of Rs.834.99 crore. The Ministry has also retained 163 projects at an estimated cost of Rs.1635.83 crore from the Priority List 2009-10, sources said.
Sources, however, conceded that timely implementation of NLCPR projects has become a major challenge for the DoNER Ministry.
Following the decisions taken in the North East Chief Ministers� conference in Shillong, specific deadlines have been fixed for ensuring accountability on both State Governments and DoNER Ministry. Accordingly, revised guidelines for NLCPR have been issued, sources said.
The new guidelines stipulate that projects with only Rs 3 crore and above would only be proposed. States has been asked to submit priority list by November for the next financial year.
Detailed project reports (DPRs) are submitted by the State Governments within two months of retention. The retention of projects has to be completed by the Ministry of DoNER within a month ending December 31. Submission of DPRs by the States must be within first two months of the year.
It was mandated that the technical wing would approve the DPRs within a month, while clearance from Minister DoNER would come within two months from the date of receipt of complete DPRs from the state.
The state is made responsible for delay in completion of the project beyond six months. Cost escalation is allowed up to 10-15 per cent only. In exceptional circumstances, it is allowed up to 20 per cent.
Any cost escalation beyond 20 per cent is required to be shared by the state and Centre. While duration of projects is not to exceed three-four years, funds are to be released in three installments. Fund released by the Ministry is required to be transmitted to the implementing project authority by the state within 15 days. These funds are to be utilised within 12 months.
