Sunday, November 13 2005 15:50 Hrs (IST) - World Time -

Chennai: Union Panchayati Raj Ministry favours merger of District Rural Development Agencies with District Panchayats for effective implementation of the Panchayati Raj and Nagarapalika acts, Panchayati Raj and Petroleum Minister Mani Shankar Aiyar said here today (Nov 13, 2005).

Speaking at a seminar on Panchayati Raj Act, organised by the PMK, he said it would go a long way in transforming the Village Panchayati Raj system in the country.

To encourage accountability of elected village Panchayat representatives, the Centre proposed to create 'Panchayat empowerment accountability incentive fund' for which the World Bank and UNDP had agreed to provide funds.

Talking to reporters later, he said, "the project is in conceptional stage and I am in touch with the Finance Ministry to earmark some funds for the project so that further talks can be held with the world bank and UNDP officials".

The Panchayats to receive the funds would be selected on the basis of performance of the state governments on devolution of powers, he said.

His ministry was also contemplating launching a new scheme 'gram swaraj yojna,' he said.

The Minister said another major project in the offing was a rural business hub, under which corporate houses would be encouraged to fund projects in rural sector. The projects' implementation would be undertaken by the village panchayats.

He said he proposed to have discussions with all the Chief Ministers on the implementation of over 150 recommendations made by the State Rural Development Ministers for effective implementation of the Panchayati Raj System.

He had already signed MOU or got the commitment from seven Chief Ministers on implementing the recommendations.

He had written to Chief Ministers on the subject, but "I have not received any reply from the Tamil Nadu Chief Minister Jayalalithaa," he said.

Giving a clean chit to Kerala and Karnataka governments, he said both the states had devolved powers to the local bodies, which had paved the way for effective implementation of the Panchayati Raj system.

He said the Gram Sabhas should be given the powers of planning and inspecting the projects.

He said unless the elected representatives asserted, it would not be possible to free the local bodies from the clutches of officials. "Officials' mindset should change to enable the elected representatives to do their jobs," he said.

His ministry was preparing 'activity maps' for various states for demarcation of powers for the three-tier Panchayati Raj institutions. However, it was for the state governments to devolve powers to local bodies as it was a state subject, he said.