Report of the Committee on Restructuring DRDA. - Ministry of Rural ...

Chapter - 6
DRDA and PRIs
6.1 DRDAs are pre-Panchayati Raj institutions in <strong>the</strong> sense that <strong>the</strong>y were
set up as pr<strong>of</strong>essional units with non-<strong>of</strong>ficial participation, before <strong>the</strong>
constitutional mandate <strong>of</strong> economic development and social justice was vested
in <strong>the</strong> Panchayati Raj institutions. There was a strong logic and justification in
setting up such organizations at that point <strong>of</strong> time. The key objectives were:
i) To provide pr<strong>of</strong>essional support, <strong>of</strong>ten multi-disciplinary and <strong>of</strong> supra
departmental nature, for implementation <strong>of</strong> a programme.
ii) To provide for non-<strong>of</strong>ficial participation in decision making especially
<strong>of</strong> MPs and MLAs as required in <strong>the</strong> pre-Panchayat Raj era.
iii) To facilitate easy and accountable management <strong>of</strong> funds through –
a) Receiving funds directly from Government <strong>of</strong> India
b) Parking <strong>of</strong> funds in interest drawing account in commercial
banks outside <strong>the</strong> government treasury system to avoid risks
<strong>of</strong> ways and means restrictions on fund flow.
c) Tracking <strong>of</strong> utilisation <strong>of</strong> funds through implementing agencies.
d) Proper account keeping through double entry systems and
arranging audit.
e) Providing utilisation details and o<strong>the</strong>r financial management
information requirements <strong>of</strong> Government <strong>of</strong> India.
f ) Tracking regular release <strong>of</strong> funds from Government <strong>of</strong> India.
iv) To provide a flexible organisational system for quick decision-making,
easy procurement <strong>of</strong> goods and services etc.
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