Rural infrastructure
Rural infrastructure
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Rural infrastructure

Navhind Times 🕒︎ 2025-10-20

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Rural infrastructure

With enhancement of fund cap, there is scope for better development in the villages The state government’s decision to raise the ceiling for sanctioning funds for infrastructure under village panchayats is a positive step for rural development. By a notification published in the gazette on Thursday, the state government amended its flagship Deendayal Panchayat Raj Infrastructure Development (Golden Jubilee) Scheme increasing the maximum project grant from Rs 3 crore to Rs 5 crore. This will enable village panchayats to take up larger infrastructure projects and accelerate development in rural areas. The Deendayal Panchayat Raj Infrastructure Development (Golden Jubilee) Scheme was launched in 2013 and in 2022, the validity of the scheme was extended till March 2027. The decision to enhance the funding cap is in keeping with the growing demand from local bodies for larger projects. Many panchayats are still functioning from their old premises and space is not enough to accommodate the additional staff. There is demand for construction of new Panchayat Ghars and community halls. Many panchayats also want market complexes and other civic infrastructure. With the enhanced limit, panchayats are expected to come up with new initiatives for improvement in the infrastructure in their respective jurisdictions. As per the scheme, once the Village Panchayat identifies the infrastructure development project to be undertaken under the scheme and a proposal is sent to the Director of Panchayats, it has to obtain a N.O.C. from the owners in case the land belongs to Devasthan, Church, private owners, etc. In case the land for the proposed infrastructure project is not available with the Village Panchayat and the same is required to be acquired under the provisions of the Land Acquisition Act, 1894, then Village Panchayat Secretary will have to submit a separate proposal for land acquisition consisting of all the necessary documents. The Scrutiny and Sanctioning committee, headed by the Minister for Panchayati Raj, will consider every proposal received and scrutinise whether the proposal is to be approved or not. The Technical cell, which will obtain technical, administrative and financial approval, will float tenders as per the CPWD Manual in force and complete the tendering process. For the maintenance and management of the project, the Village Panchayat may execute an agreement with a third party. Considering the trend by many departments, including the revenue-rich ones, to go for PPP model of development, raising the expenditure cap for panchayats is a step in the right direction as they will continue to be owners of their premises. The panchayats which are planning to go for bigger projects will benefit immediately if their proposals are cleared by the government. With the ruling party having 33 MLAs on its side, there may be a clamour for government sanction to get project proposals cleared by the government. These projects can be an opportunity for the panchayats to generate some revenue. Last year, the Comptroller and Auditor General (CAG) of India in its report spoke of review of funds and recovery of arrears. More importantly, the CAG called for efforts on the part of the state government to transfer powers to the panchayats owing to land reforms, roads, sanitation, poverty alleviation, etc. That apart, the panchayats will have to thoroughly scrutinise the project documents before giving sanctions. The authorities must also take steps to ensure that there is proper monitoring of the progress of work so that the quality of work does not suffer and the work is completed in time.

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