CCEA likely to take up Panchayati Raj Ministry proposal on BRGF

NEW DELHI: The Cabinet Committee on Economic Affairs is likely to take up a proposal from the Ministry of Panchayati Raj, which seeks to continue district component of Backward Region Grants Fund through the current financial year.

Under the district component, which is set to be restructured, BRGF covers 272 backward districts in 27 states and the entitlement of each district is Rs 1 crore, which is used primarily to build capacity for elected representatives and functionaries of panchayati raj institutions.

The ministry has proposed to continue with this through the current fiscal as the programme for re-structuring of the district component is likely to take more time than initially expected, sources said.

The CCEA is likely to meet tomorrow. Prime Minister Manmohan Singh had launched the programme in 2007 in Assam to give a push to development in underdeveloped regions of the country.

BRGF also has a state component which covers Bihar, Bundelkhand region, West Bengal and parts of Odisha.

The District Component is set for a re-structuring but Planning Commission has told the ministry that the consultation and approval process for the exercise is likely to take more time, suggesting that it may continue in its present form, they said.

While the Ministry of Panchayati Raj is the administrative ministry for the district component, Planning Commission takes care of implementation of the state component.

Under the district plan, the entitlement of each district is Rs 1 crore and the fund is used primarily to build capacity for elected representatives and functionaries of panchayati raj institutions.