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CM envisages major role for NABARD in infrastructure development
6/7/2007 12:29:40 AM


Srinagar, June 06
- While addressing a joint meeting of NABARD and state functionaries here today, Chief Minister Mr. Ghulam Nabi Azad stated that three-pronged strategy has been put in place to address political, economic and social issues simultaneously. He expressed gratitude to the central government, UPA Chairperson Mrs. Sonia Gandhi and Prime Minister Dr. Manmohan Singh for providing liberal financial assistance for economic reconstruction of the state.
Union Minister of State for Finance Mr. Pavan Kumar Bansal, Minister for PHE, Irrigation and Flood Control Mr. Mohammad Dilawar Mir, Minister for R&B Mr. Gulchain Singh Charak, Chief Secretary Mr. C. Phunsog, Chairman NABARD Dr. Y. S. T. Tharat, Principal Secretary Planning and Development Mr. S. S. Kapoor, Principal Secretary to Chief Minister Mr. Anil Goswami, Commissioner/Secretary Finance Mr. B. B. Vyas, Commissioner/Secretary PHE, Irrigation and Flood Control Mr. Mehboob Iqbal, Secretary R&B Mr. Shailendra Kumar, Secretary School Education Mr. K. M. Wani, Secretary to Chief Minister Dr. Pawan Kotwal and senior officers from the state government and NABARD participated in the meeting which was held under the chairmanship of Chief Minister to review the implementation of NABARD funded schemes in the state.
NABARD readily agreed to provide funds for development of the infrastructure in 8 new districts and also to enhance the mobilization advance from 20 percent to 30 percent as suggested by Chief Minister.
The Chief Minister impressed upon the Union Minister of State for Finance and the Chairman NABARD that the State of Jammu and Kashmir deserves a special dispensation as its geographical location is an inherent disadvantage. Further, the difficulties of the state have been compounded by 18 years long turmoil. The vagaries of weather effectively reduce the working season in the state to just four months in most parts of the state, therefore, it would be unrealistic to treat the state at par with other states of the country, he said. The Chairman NABARD agreed that the State of Jammu and Kashmir deserves a special consideration.
The Chief Minister instructed the state government officials to provide adequate funds for development of infrastructure of secondary and higher secondary education system. The NABARD authorities were accordingly requested to provide a corresponding loan component so that the education infrastructure could be built which has been necessitated because of upgradation of various schools across the state.
The Chief Minister emphasized that apart from education, the health sector has to be accorded priority. In this context, the Chairman NABARD informed that the NABARD could entirely sponsor a visit of the state government officials to Tamil Nadu to see the exemplary infrastructure created in rural health sector there.
Mr. Azad stressed that the allocation of funds for road connectivity should be commensurate with the present status of connectivity in a particular district. He stated that unfortunately the road infrastructure over the years has been created in a very lop-sided manner, as there are districts where the road connectivity is as low as 5 percent and there are other districts where the road connectivity is even 80 percent. The Chief Minister emphasized that this discrepancy should be addressed.
The NABARD assured that it will be more than willing to provide all the support required to the state for creating infrastructure.
The state government suggested that the mechanism for utilization certificates should be simplified to avoid delays. The NABARD responded by saying that on their part they will ensure that the funds are actually released within seven days of the receipt of the utilization certificates. The NABARD authorities also agreed to increase the normative allocation for PWD sector from Rs. 466 crores to Rs 600 crores.
The Chairman NABARD was of the view that the Land Development Bank and the Cooperative Banks in Jammu and Kashmir are in a very bad shape. He emphasized the need to rejuvenate the financial institutional mechanism in the state. The NABARD also agreed to consider the funding as a result of cost escalation on project to project basis.
Secretary R&B gave a power point presentation on the status of schemes funded by NABARD.
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